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PICK OF THE WEEK : Stock Market Trading

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TCS’ Q2FY21 results delivered a strong beat on Revenues, EBIT margin and APAT. Sharp bounce back in growth in key verticals like BFSI, Retail &CPG and Lifesciences is the key positive in the results.

Led by 2QFY21 margin beat, we raise our EPS estimates by 3.6/6.4/4% for FY21/FY22E/FY23E. TCS trades at 27.4x FY22E EPS and 25.8x Sep22E EPS. We now value TCS at 28x Sep22E EPS which yields a TP of Rs2970/sh (vs 27x Sep22E EPS). This represents an 9% upgrade in our Target price

led by EPS upgrades and P/E upgrade. Retain Add.

InterGlobe Aviation -Buy

Air passenger traffic grew 41.2% mom in Sept-20 and trends in early October (during the long weekend) suggest a renewed propensity for leisure travel. Fuel costs remain benign and 2%appreciation in INR vis-a-vis USD in Q2FY21 provides incremental relief. This, along with IndiGo’s own cost saving measures lowers the threshold traffic to ~70% of pre-Covid for reaching cash break-even. IndiGo has gained 12% market share YTD FY21 but we factor it will retain only 50-55% of this

on sustainable basis. We maintain our Buy rating with a revised price target of Rs1638 based on 10x FY22E EBITDAR (9x earlier).

Bajaj Finance-Hold

Recommendation by Emkay Global Financial Services

The loan growth has taken a hit as management has turned risk-averse due to the regional lockdowns amid rising Covid-19 cases. However, our channel checks indicate that BAF was back to lending and disbursing in September 20. We will watch out for details on this front in Q2 results and

management commentary.

We await clarity on the asset quality after the completion of the moratorium. Management commentary on the future growth strategy also remains key monitorable from the results. We maintain Hold on the

stock with a TP of Rs2,950, corresponding to ~3.5x P/B Sept’22E.

Marico-Hold

Recommendation by Emkay Global Financial Services

We expect Marico to deliver close to 10% sales growth with both domestic and international (favorable currency) recording 10% growth. We estimate 15% EBITDA/PAT growth for Q2, led by flat ad spends and cost savings. The recovery in VAHO is a positive.

Strong growth trends in rural, driving further recovery in Parachute and VAHO and continued momentum in Saffola, can provide some upsides. However at 38x FY22E EPS, recent positives appear priced in. Maintain Hold with a TP of Rs350.

PI Industries: BUY

Recommendation by Axis Securities

We initiate coverage on PI Industries with BUY and Target Price of Rs. 2155/share with a 11% upside as we value the stock at 33x P/E on its FY23E EPS given its unique business model aided by steady growing CSM and Domestic Formulation business and higher growth in adjacent segments through inorganic acquisitions. We expect PI’s Revenue/EBITDA/PAT to witness a 25/29/29% CAGR with average ROE of 15% and Asset Turn of 1.5-2.0x over FY20-23E.

Persistent Systems Ltd: BUY

Recommendation by Axis Securities

We initiate coverage on Persistent Systems Ltd (Persistent) with a BUY rating and target Price of Rs 1,580 valuing at 21x to its FY23E EPS. We believe Persistent is well placed to bounce back post COVID 19 pandemic led by 1) Better vertical mix (having minimal impact of COVID-19) thereby faster recovery in terms of IT spending 2) Significant growth opportunities in Technology Services and Allied Services. Robust IBM portfolio will help to gain the momentum 3) Sustainable operating margins led by better services mix and efficient execution 4) Healthy balance sheet, strong return ratios and free cash flow generation 5) Ramp up in new deal wins and strong client addition will help Persistent to attain long term sustainable growth.

Amara Raja Batteries-Buy

Recommendation by Anand Rathi Share and Stock Brokers

Its progress in battery technology in automotives would go a long way in Amara Raja Batteries gaining market share in two-wheeler OEM and, possibly, a rub-off effect in the replacement market in the next 2-3 years, in our view. We upgrade the stock to a Buy at a target price of

Rs907.

Stamped punched grid in two-wheeler OEM. The company’s progress to stamped grid technology in two-wheeler OEMs would go a long way in market-share expansion both in its OEM and replacement businesses. We understand from channel checks that Amara Raja’s success in this technology in the replacement market would be replicated in its OEM business too.

UPL Ltd.-Buy

Recommendation by Geojit Financial Services Ltd

Despite a marginal drop in revenues in Q1FY21, EBITDA stood at Rs. 1,704cr, up by 29.3% YoY, with EBITDA margin improved by 510bps YoY to 21.8%, aided by raw material savings, cost synergies as well as better product and regional mix. We remain positive on the stock as we believe that the strong demand for CPC products is likely to drive growth further. Hence, we have maintained a BUY rating on the stock with a revised price target of Rs. 601 based on 12x FY22E adj. EPS.

HDFC Bank– BUY

Recommendation by Emkay Global Financial Services

Overall business momentum for HDFCB remains healthy compared to the industry, but we believe that the asset quality trend and management transition will be the key things to watch out for in the

near-to-medium term. Currently, we have a Buy rating on the stock with a TP of Rs1300, given its strong stress management capability across cycles and superior return ratios.

Hero Motocorp Ltd.-Buy

Recommendation by Axis Securities

HMCL is in a sweet spot as strong rural-led recovery plays to its strength in the Economy-Executive category in the Motorcycles segment. With an apt product portfolio for the rural market, the highest brand recall, and a strong distribution network, it is best placed to benefit from the ongoing momentum in the rural economy (50% of the company’s domestic volumes is derived from rural India). Wholesale dispatches for the company are expected to be healthy in the near term given low channel inventory ahead of the Festive season. The channel filling to build up inventory will drive volumes in the near term.

HMCL is working hard towards recovering its lost market share in the Premium Segment as well as the Scooter segment. Hero launched four new models under its Xtreme & XPulse brands over the year, marking a re-entry in the premium motorcycle segment. Co’s latest offering Xtreme 160R has been well received by the customers. In the scooter segment, the company has launched Destini 125 scooter with start-stop technology and Maestro Edge 125 scooter.

We recommend to buy with a target price of Rs. 3,450.

(Disclaimer: Views and recommendations given are those of brokerages and analysts and do not represent those of IANS. Users should check with certified experts before taking any investment decision. IANS has no financial liability whatsoever to any user on account of the use of

information provided.)

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Male sex hormones may help treat breast cancer: Study

While endocrine therapy is standard-of-care for estrogen receptor positive breast cancer, resistance to these drugs is the major cause of breast cancer mortality.

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Sydney : Researchers have found new evidence about the positive role of androgens, commonly thought of as male sex hormones but also found at lower levels in women, in breast cancer treatment.

In normal breast development, estrogen stimulates and androgen inhibits growth at puberty and throughout adult life.

Abnormal estrogen activity is responsible for the majority of breast cancers, but the role of androgen activity in this disease has been controversial.

The new research published in the journal Nature Medicine showed that androgens have potential for treatment of estrogen receptor positive breast cancer.

A cancer is called estrogen receptor positive if it has receptors for estrogen, according to Breastcancer.org.

Using cell-line and patient-derived models, the global team, including researchers at the University of Adelaide and the Garvan Institute of Medical Research in Australia, demonstrated that androgen receptor activation by natural androgen or a new androgenic drug had potent anti-tumour activity in all estrogen receptor positive breast cancers, even those resistant to current standard-of-care treatments.

In contrast, androgen receptor inhibitors had no effect.

“This work has immediate implications for women with metastatic estrogen receptor positive breast cancer, including those resistant to current forms of endocrine therapy,” said lead researcher Theresa Hickey, Associate Professor at the University of Adelaide.

“We provide compelling new experimental evidence that androgen receptor stimulating drugs can be more effective than existing (e.g. Tamoxifen) or new (e.g. Palbociclib) standard-of-care treatments and, in the case of the latter, can be combined to enhance growth inhibition,” said Wayne Tilley, Director of the Dame Roma Mitchell Cancer Research Laboratories, Adelaide Medical School, University of Adelaide.

Androgens were historically used to treat breast cancer, but knowledge of hormone receptors in breast tissue was rudimentary at the time and the treatment’s efficacy misunderstood.

Androgen therapy was discontinued due to virilising side effects and the advent of anti-estrogenic endocrine therapies.

While endocrine therapy is standard-of-care for estrogen receptor positive breast cancer, resistance to these drugs is the major cause of breast cancer mortality.

“The new insights from this study should clarify the widespread confusion over the role of the androgen receptor in estrogen receptor driven breast cancer,” said Elgene Lim, a breast oncologist and Head of the Connie Johnson Breast Cancer Research Lab at the Garvan Institute.

“Given the efficacy of this treatment strategy at multiple stages of disease in our study, we hope to translate these findings into clinical trials as a new class of endocrine therapy for breast cancer.”

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Azim Premji and Dr Devi Shetty chosen for PCB awards

Besides them 25 senior journalists have been selected for the ‘Press Club Annual Awards’, a release said.

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Azim Premji Wipro

Bengaluru, Jan 19: The chairman of Wipro Limited Azim Premji and the founder chairman of Narayana Health Dr Devi Prasad Shetty are among those who have been selected for the annual awards given by the Press Club of Bangalore.

Premji has been chosen for ‘Press Club Person of the Year’, while Dr Shetty and actor-Director Sudeep Sanjeev have been selected for the ‘Press Club Special Award.’

Besides them 25 senior journalists have been selected for the ‘Press Club Annual Awards’, a release said.

Chief Minister B S Yediyurappa will facilitate the awardees at a function scheduled for the third week of February, it said.

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Elizabeth Olsen: Nepotism creates fear that you don’t deserve the work you get

The actress added that she “always had this need to prove myself to everyone around me that I work really hard”, adding: “I couldn’t walk in a room without everyone already having an opinion.”

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Elizabeth Olsen

Los Angeles, Jan 19 : Hollywood star Elizabeth Olsen says she once thought of changing her surname and distance herself from the success of her family because it was insanity growing up in the spotlight.

“It was insanity. There were times when my sisters would always be spotted and I would be in the car with them and it would really freak me out. It has helped me navigate how I want to approach my career,” said the actress, whose older sisters are Mary-Kate Olsen and Ashley Olsen.

The actress added that she “always had this need to prove myself to everyone around me that I work really hard”, adding: “I couldn’t walk in a room without everyone already having an opinion.”

Elizabeth opened up om the fears of nepotism.

“The thing about nepotism is the fear that you don’t earn or deserve the work. There was even a part of me when I was a little girl that thought if I’m gonna be an actress I’m going to go by Elizabeth Chase, which is my middle name. And then, once I started working, I was like, ‘I love my family, I like my name, I love my sisters. Why would I be so ashamed of that?’ It’s fine now,” she said.

The actress said fame has made her more of a homebody.

“Fame has also made me someone who is more of a homebody than maybe I would like to be but I know where not to go. If I could do whatever I wanted for the day, I’d start with the gym, then I’d go to the grocery store, because it’s my favourite thing,” Elizabeth told The Sun.

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