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  • Mayuresh Joshi - Fund Manager (PMS), Angel Broking

    Mayuresh Joshi

    Fund Manager (PMS), Angel Broking

    DATE: January 08, 2016, 12:00 PM

    SUBJECT: What to expect from December quarter results of India Inc?




    Hello and welcome to the webchat with Mayuresh Joshi, Fund Manager (PMS), Angel Broking on expectations from December quarter results of India Inc


    Hello everyone

  • V


    I have 500 shares of Sasken Communications. I purchased the stocks at around Rs 250 per share. Please advise should I hold or buy or sell at current valuations?


    Good afternoon Venkat...Unfortunately I do not cover Sasken, so would not be able to offer any advise on the same.

  • M


    I am a retired banker and have been in stock market for some time. I am a long term investor and I am holding banking stocks, NBFcs apart from other stocks. I would like to know your views on IDFC and IDFC Bank.


    Good Afternoon Mr. Kumaran...The foray of IDFC In the banking space shall have a impact on its return ratios in the medium term. However as the transition progresses and there is better comfort on its lending book along with asset quality pressures normalizing the earnings growth should start improving. So it might test your patience over the next few quarters but if you can hold on over the next 2-3 years the story though long drawn should play out better over that time horizon.

  • S


    What is your view on the steel sector particularly Tata Steel and SAIL?


    Good afternoon Siddartha....With demand supply concerns still in favour of supply, the chinese slowdown along with depreciation if the Yuan resulting in more dumping of both long and flat steel products, realizations remaining soft as demand and volume recovery appearing tepid would have an impact on earnings of steel companies. With a inventory of close to 6.5mt for the industry as a whole and demand still weak, tata steel with huge debt on its books might under perform. Similarly for SAIL, though there are no debt concerns on its books the inherent industry weakness shall puu down its numbers. So would avoid steel stocks at this juncture.

  • G


    How long will the Midcap outperformance over Largecaps continue? Considering the current market state and global economics, is it better to invest in Largecap stocks/Large caps focussed equity mutual funds?


    Good afternoon Girish....Seeing the rally in mid cap stocks, one really needs to adopt a stock specific approach giving cognizance to how earnings are expected to pan out and how valuations are stacking up. So we are following a bottom up approach in this universe. As a prudent strategy, the mix has to be balanced between the large and the mid cap space, as the risk appetite for the mid cap stocks can be higher. Also a retail investor should have exposure to the equity markets through the mutual fund route as well, preferably doing SIP's and having a mix of both large and mid cap exposure.

  • B


    Does the China fall offer value buying opportunities in the markets? If yes, what are your top picks for a medium-term perspective?


    Good afternoon Bala,....Yes then fall does offer good buying opportunities but one must take into account that further downsides from the current levels is possible. Therefore entering the markets in a staggered manner over the next few months would be an ideal approach. We like Axis Bank, ICICI bank, YES bank, Sun Pharma, L&T, Infosys, Ultratech cement, LIC Housing finance, Blue star, Radico Khaitan to name a few.

  • B


    Is it a good time to buy J K Tyre at present despite the threat of Yuan devaluation and consequent further dumping of Chinese tyres?


    Good Afternoon Bala...The tyre companies have witnessed massive dumping from the Chinese markets. Lower raw material costs both in terms of natural rubber and synthetic rubber prices having come down with and expectations of crude and crude derivatives being sustained at lower levels should abet margins.However the larger issue if of volume growth which seems to revive based on MHCV and PV numbers. I would prefer TVS srichakara at this point.

  • P


    What is the average eps you could see for Sensex companies for the third quarter and what is the forward PE multiple you expect from a 1-3 years perspective?


    Good afternoon Praveen..We expect Sensex earnings to increase at a CAGR of 17% over FY2016-18 to ~`1,993. Based on our estimates our one year Sensex target works out to 31,500, implying a 24% upside from the current levels.

  • P


    When do you see the markets bottoming out? Do you thnk that the Nity can slip below 7,000? A lot of stocks like SBI, BHEL, ICICI Bank etc have hit their 52 week lows. Is it advisable to invest in SBI at the current levels? Which other Nifty stocks can I invest right now form a one-two year perspective. Please advice.


    Good Afternoon Paresh....The pain and volatality in the markets can very well continue over the next few months as uncertainty related to global events including China, Corporate earnings and the revival in the Capex cycle expected to be a drag over the next few months coupled with expectations of reform measure keenly awaited. So it is possible for the markets to slip lower but is does present a good opportunity for long term investors. SBI is relatively better placed in the PSU banking space and other stocks that we like Sun Pharma, Ultratech Cement, L&T, Infosys. All these can be accumulated in a staggered manner over the next few months.

  • P


    Some of the large-cap stocks have witnessed a healthy correction in the recent rout. What would be your advice to investors who wish to add large caps to their portfolio?


    Good Afternoon Parag....Yes we have witnessed a steep correction in quite a few of the large cap names. From a sectoral perspective we still are very optimistic about the Banking and Financial services space, IT space, Cement as a theme and selective Auto stocks. What we like form these sectors individually are Axis Bank, ICICI Bank, Yes Bank, LIC Housing, INfosys, HCL Tech, Ultratech Cement, Sun Pharma.

  • V


    What is your outlook for IT majors for the Q3 which is seen a seasonally weak quarter and impact on revenues in wake of the depreciating rupee?


    Good Afternoon Vinnet...IT majors would have headwinds in Q3 with furloughs affecting margins coupled with the unfortunate incident in Chennia further dragging down margins. Tailwinds in form of a depreciating rupee, client mining picking up and utilization levels expected to inch up along with reasonable valuations should keep IT companies in line for a reasoble constant currency growth over Fy16-17. Top tier IT majors can have a reasonable performance over the next 12-15 months.

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