At the Burger King IPO
From a retail investor perspective, from a trading earnings point of view, this looks interesting. More importantly, the timing of the IPO appears to be very good when markets are at all-time highs. The latest IPO listing was pretty good, although in that IPO, retail participation was on the lower side. From a short-term trading profit point of view this may make sense, but given the fact that it is a loss making company and valuations are not exactly cheap, I am not quite sure how it will develop over a period of time. of time.
But it seems like an interesting name in the current scheme of things and I’m sure it would make sense for retail investors to choose it.
At Sun Pharma
The pharmaceutical sector has returned to the center of attention, but Sun Pharma, despite its strong performance in the second quarter and the very good feedback from management, was not participating in the general movement of the pharmaceutical sector. In the last few days, we are seeing that traction return. As the leader in many categories, people would definitely like to participate, and Sun is one of our top picks among large-cap pharmaceutical names. There is a case for another 18-20% rise even from current levels.
At Tata Power
Tata Power has been one of our preferred picks since it was at the Rs 52-54 odd levels. We have revised our rating and our target to around Rs 80. What we like about Tata Power is the fact that there is a renewed commitment from management in terms of debt reduction. Gradual steps are being taken towards that. Given the general revival we are seeing in the economy and the restructuring that the Tata Group has undertaken means that we will see incrementally positive earnings from some of these companies.
We would definitely want to be selective in the energy sector and Tata Power continues to be one of our preferred options, although the stock is a bit lower in terms of price.
In PSU like GAIL, ONGC going up
It is a case of UPM as an issue that rises more than as individual factors. Some companies have done well, some companies are announcing buybacks, and in a market like this, people want to participate in some of these undervalued plays. From that perspective, some of the PSU names deserve attention. Companies like GAIL, for example, given the type of measures the government has taken to reform this entire energy sector and the city’s gas distribution companies and the way they are opening up that space. There is a feeling that for the entire transmission sector, it will see a few more reforms and given the type of positioning that GAIL does, it seems quite interesting. So, within that energetic space, we would like to participate in GAIL. It is one of the companies that is under our coverage and we have about 24% advantage from current levels.
On Vodafone-Idea hiking fees and others following suit
It seems that the price hike has finally started in the telecommunications sector. Even a moderate price increase can have a significant impact because some of these companies are doing exceptionally well even when there is no price increase. Once there is any indication coming from Vodafone, it should be possible for the other incumbents to raise rates as well.
The only thing is, we don’t know how Jio will react to this because until now people were expecting there to be some kind of price increase across the board. So it will take Jio’s reaction to have a sectoral view, but it seems that the worst is behind us and we would definitely want to participate in Bharti even if there is a moderate price increase. You will have a huge boost in your earnings for the next one to two years.
On whether one should partially benefit from the book now
It is always a bit tricky to have this type of profit reserve or create cash levels, although it is always sensible to create some liquidity as the markets have been at record levels. Usually when the market is in this type of momentum that is supported by improving earnings with strong flows, it can continue for a while longer. If you are a long-term investor, there is no point in adjusting liquidity, but from a short-term business perspective, it definitely makes sense to be a little careful what you are getting into and to keep some kind of position size in the allocation that you are doing because things can change very quickly on any particular news that may emerge.
In general, we need to be a little careful, but at the same time, if you have a vision of 1-2 years, there is no point in trying to adjust it perfectly.
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