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Published on 21/04/2020 9:20:12 AM | Source: Religare Broking Ltd

We would advise participants to continue with a cautious approach and prefer hedged bets - Religare Broking

Posted in Market Outlook| #Market Outlook #Religare Broking Ltd

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Nifty Outlook

The Indian benchmark indices traded range bound and settled almost unchanged amid mixed cues. Interestingly, the broader market indices showed resilience and ended in green while mostly sectoral front traded in tandem with the benchmark and closed lower.

We have mixed signals from the local front as of now. The steps which are taken by the government for the lifting of lockdown partially, RBI’s measures to stabilise the financial system and the projection of normal monsoon have provided a sentimental boost. However, a sharp increase in coronavirus cases is still the major cause of concern. Further, as the earnings season progresses, the stock specific movement would remain high hence we would advise participants to continue with a cautious approach and prefer hedged bets.

Stock In News

* Strides Pharma announced that its wholly owned subsidiary, Strides Pharma Global Pte, has received approval for Flucytosine Capsules from USFDA. The product will be manufactured at the company’s Bangalore unit and will be marketed in the US markets.

* GHCL Ltd, announced that production at its soda ash plant in Gujarat has commenced with effect from today i.e. April 20, 2020.

* L&T’s construction division bagged significant contracts (in the range of Rs 1,000-2,500 cr) in India and abroad, for its Power Transmission & Distribution business.

 

Investment Pick

Buy The Ramco Cements Ltd @789  9-12 Months Target 902 CMP 553.20

* The Ramco Cements Ltd (TRCL) reported mixed set of numbers for Q3FY20, wherein revenue growth was tad better while profitability missed our estimates. Its revenue grew by 6%, YoY, led by volume growth of 3.5%. However, the company’s EBITDA and PAT margins declined by167bps and 81bps YoY, due to higher expenditure.

* Ramco cements continue to focus on driving its revenue and margins by improving product mix, increasing utilization levels and expanding capacities. We estimate its Revenue/EBITDA/PAT to grow by 11%/16%/20% CAGR respectively over FY19-22E driven by positive sector outlook, price stabilization per bag, addition in capacity and gain in market share. Hence, we maintain a Buy on the stock with a target price of Rs. 902.

 

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