After new-age tech companies reported better-than-expected June quarter (Q1FY23) results, analysts said it will be a long road to recovery for their respective businesses and the stock prices. Moreover, brokerages differ on whether it is the right time to own these stocks. The common thread, however, that runs across most brokerages is Zomato, where they suggest buying the stock with the one-year target price ranging between Rs 60 - 115, translating into an upside of around 9 - 109 per cent from the current levels. The company's gross order value (GOV) of food delivery jumped 10 per cent quarter-on-quarter (QoQ) and 42 per cent year-on-year (YoY) in Q1, aided largely by growth in volume, and mild growth in average order value (AOV) at 1-2 per cent. The company also broke even on an adjusted Ebitda basis during the quarter.
Despite a healthy March-May quarter (Q3FY22) show by global IT consulting firm Accenture, Indian IT companies shed up to 3 per cent on the National Stock Exchange (NSE) on Friday as analysts continued to highlight medium-term pain points for the sector. The Nifty IT index settled 0.9 per cent lower on Friday, as against a 0.9 per cent rise in the Nifty50 index. According to analysts at ICICI Securities, Accenture's Q3 saw moderation in year-on-year growth rate across verticals and US regions, which signals at likely normalisation in revenue momentum for Indian IT services going forward.
If Sasikala wants to stay in active politics, she will have to go to EPS crawling, reports Aditi Phadnis.
It looked as if the BJP was hoping to use Rajinikanth to press their seat-bargain with the AIADMK. Now with the Rajini bait gone, the question now is not how much the BJP would settle for, but how much the AIADMK would be ready to offer, notes N Sathiya Moorthy.
At the end of the day, Stalin expressing solidarity with an arrested colleague is one thing, especially if he too felt that the minister had been wronged, but for him to retain the person in office sets a bad precedent, which would not go unnoticed by voters, points out N Sathiya Moorthy.
A time has thus come when state encouragement for rural students led to empowerment of the socio-economically marginalised sections of the population. It included women. Today, with greater exposure and consequent enlightenment, it has gone beyond 'empowerment' to become 'entitlement', says N Sathiya Moorthy.
Morgan Stanley on Thursday became the latest brokerage to question the valuations of Indian equities and downgraded them from 'overweight' (OW) to 'equalweight' (EW) and recommended taking some money off the table. "We move tactically EW on India equities after strong relative gains - we expect a structural multi-year earnings recovery, but at 24 times forward price-to-earnings (P/E) we look for some consolidation ahead of US Fed tapering, an RBI hike in February and higher energy costs," Morgan Stanley equity strategists, led by Daniel Blake and Jonathan Garner, said in a note on Asia Pacific markets. The brokerage has upgraded Indonesia to OW, while maintaining an EW stance on China and UW on Taiwan.
India Inc's quarterly net profit reached a record high of Rs 1.64 trillion in the third quarter ended December 31, 2020, mainly due to gains from higher commodity prices and a big swing in banks' earnings. The combined net profit of 3,323 listed companies that have declared results so far was up 68.6 per cent year-on-year (YoY). In comparison, earnings were up six times (534 per cent) in the second quarter and 6.5 per cent in the corresponding period last year.
Back of the envelope calculations put government expense on each of the new schemes promised by the DMK and the AIADMK at tens of thousands of crores. But then, neither party has said how they are going to also address the mounting debt burden either, says N Sathiya Moorthy.
RSS-aligned Bharatiya Mazdoor Sangh (BMS) on Monday expressed disappointment over the government's budget proposals with regard to divestment and foreign direct investment, especially in the insurance sector. The BMS, however, lauded the government for its current efforts on the massive vaccination programme, a special scheme for tea workers in West Bengal and Assam, labour oriented push on infrastructure projects in construction sector and development of five major fishing harbours viz. Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat as hubs for economic activities etc. On other Budget proposals, it said in a statement that "mixing the beautiful concept of Aatmanirbhar Bharat with FDI and disinvestment in the Union Budget is disappointing for the employees".
The Sensex is on course to ending calendar year (CY) 2019 at a price-earnings (P/E) multiple of 29x, the highest in 25 years. Current valuations are, however, lower than those seen in the early 1990s. The Sensex has risen close to 14 per cent in the last 12 months, while the index underlying EPS dropped 6.7 per cent during the period.
'The BJP doesn't have to do anything except nudge the AIADMK in one direction.'
Revenue of the Mumbai-based firm grew 11.4 per cent to Rs 38,172 crore in the June 2019 quarter, compared to Rs 34,261 crore in the same quarter of 2018-19.
With faction bosses not seeming to control anyone any more, can the BJP count on the AIADMK for the presidential polls any more, asks N Sathiya Moorthy.
The OPS camp believes Sasikala's family still calls the shot in the EPS camp.
At the same time VK Sasikala, confidante of late party matriarch J Jayalalithaa is staking claim to the late leader's legacy.
Singer Aanchal Shrivastava taught the kids the songs over phone calls.
It does not stop here, though. According to field information, state ministers, AIADMK candidates and campaigners are asking BJP cadres accompanying them not to carry party flags at common rallies and also avoid their saffron shawl on those occasions. BJP cadres are also asked to stay out of the common campaign when it enters a minority-dominated areas, especially of Muslims, and re-join later, says N Sathiya Moorthy.
Operating margins for some companies dipped in Q3, 2021-22 but this sector could be nearing the bottom of the cycle in terms of profits.
'Favourable product mix, sales recovery, and cost saving initiatives are expected to support margins going ahead while focus on debt reduction (target of debt free by FY24) will aid balance sheet strength'
This is first time in 25 years that a benchmark equity index in India is trading at a P/E multiple of 40x or higher.
The order also provides that the field office will incur expenditure on the facilitation function under the head of publicity.
'Rising Covid cases and localised lockdowns are being closely monitored.'
The Madras high court on Wednesday set aside the proceedings of the Tamil Nadu revenue department locking and sealing the All India Anna Dravida Munnetra Kazhagam headquarters in Chennai following the July 11 violence, and directed that the keys of the office be handed over to party chief K Palaniswami.
'What we see here is puppetry. The string is with the BJP.' 'All the puppets here are dancing to the direction the BJP pulls the strings.'
DMK leader MK Stalin is concerned that a no-trust move would force the EPS faction to patch up with not only the OPS group but also the TTV camp and also get the 'Two Leaves' poll symbol unfrozen, which could upset his party's electoral apple cart, says N Sathiya Moorthy.
Ahmedabad is home to the strangest of cuisines and is a city of contrasts, if you look beyond the tourist places.
'Your strike rate is very important when it comes to seat-sharing.'
As regards India, FIIs have pumped in over Rs 34,400 crore in the Indian stocks in calendar year 2021.
The 'AIADMK symbol issue' may be a fit case for the courts and the legislature to provide for a new law for application in similar fluid, dynamic political situations, says N Sathiya Moorthy.
'They are going to be clubbed with the Lok Sabha elections which are six months away.' 'These people who are ruling Tamil Nadu know very well that they cannot win another election.'
After a stellar run in 2021 that saw the S&P BSE Sensex and the Nifty50 clock gains of 20 per cent and 22 per cent respectively, global equity markets, including India, are gearing up to welcome 2022 on a cautious note. For one, new variants of the Covid -19 infection that make current vaccines less effective is one of the key risks worth flagging, analysts said. Inflation was also a risk for this asset class in 2021, although most market participants expect that the current elevated inflation levels will be transitory.
At present, workers whose basic wage at the time of joining is up to Rs 6,500 per month.
Will the AIADMK acknowledge the role of CAA and the anti-CAA protests, both inside the state and outside, as among the causes for the current electoral reversal, as many in the party now want? It is unlikely to be so, but then the pressure will increase on the leadership to reassess the BJP alliance at one level and the 'blind support' for Prime Minister Narendra Modi's controversial policies on the other, says N Sathiya Moorthy.
If Tamil Nadu BJP President K Annamalai bought it in 2015, did he get prior approval from the Union home ministry, and did he include it in his annual wealth returns, sections of the media want to know. N Sathiya Moorthy on the curious case of the 'Rafale' watch.
'The news about the new virus strain in the UK provided them with an opportunity to take money off the table.'
Employees' Pension Scheme has been asked to fold up and hand over subscribers to National Pension System
The ruling DMK in Tamil Nadu had begun seeing Governor Ravi's decisions and actions as a part of the state BJP's non-stop criticism of its government and directed from Delhi, a view strengthened by the governor's decision to return the NEET exemption bill, points out N Sathiya Moorthy.
investors sometimes fail to understand the factors that determine it.
Indian companies typically have higher return on equity.
