MENU

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer

Angel Broking Pvt Ltd

Published on 10/07/2020 11:26:45 AM

Below is the Quote on 1QFY21 results of TCS By Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

“TCS reported a 7.0% qoq degrowth in revenues to USD 5.06bn as compared to market expectations of 5-6% degrowth. In rupee terms revenue contracted by 4.1% qoq to Rs.38,322 crore while gross profits degrew by 9.9% qoq to Rs.15,108 crore. Gross margins contracted by 258bps qoq to 39.4% though cost control in the form of reduced SG&A expenses limited contraction in EBIT margins to 149bps qoq to 23.6% while EBIT registered a degrowth of 9.7% qoq to Rs.9,048 crore. Net profit for the quarter contracted by 12.7% qoq to Rs.7,008 crore. While the Q1FY21 numbers were below street expectations on all counts, new deal wins remained strong at USD 6.9bn for the quarter which was a key positive. Markets will also look forward to management commentary and their outlook for the rest of the year.”

Click Here - https://bit.ly/3ffDaQh

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:16:53 AM

Accumulate Endurance Tech Ltd CMP (Rs.) 899 Target (Rs.) 1,015 Upside (%) 12.9

Rationale - Endurance Technologies Ltd is one of India’s leading automotive component manufacturers with operations in India and Europe. It mainly caters to two and three-wheeler OEMs in India and supplies aluminum casting products to four-wheeler OEMs in Europe. Post Covid19, evolving consumer preference for lower ticket priced means of private transport amid pressurized incomes & awareness around social distancing are expected to act as tailwinds for domestic 2-Ws in India, 4-Ws across developed nations.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:16:22 AM

Accumulate IDFC First Bank Ltd CMP (Rs.) 28 Target (Rs.) 32 Upside (%) 14.3

Rationale - We believe efforts to built liability franchise, fresh capital infusion and provision taken on wholesale book will help to tide over this difficult time. The IDFC First Bank is trading ( 0.7 x FY22ABV) at a significant discount to historical average valuations.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:15:19 AM

Accumulate Swaraj Engines Ltd CMP (Rs.) 1,430 Target (Rs.) 1,566 Upside (%) 9.5

Rationale - Swaraj Engines is engaged in the business of manufacturing diesel engines and hi-tech engine components. Diesel Engines are specifically designed for tractor application. Going forward, we expect recovery in the tractor industry (due to robust Rabi crop production, hike in MSP & the forecast of a normal monsoon) will benefit players like Swaraj Engines.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:14:23 AM

Accumulate Bajaj Finance Ltd CMP (Rs.) 3,330 Target (Rs.) 3,550 Upside (%) 6.6

Rationale - Bajaj Finance is trading at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds. Key risk to our call would be the rapid spread of covid 19 in India in which case we may have to re-evaluate our investment rationale.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:13:51 AM

Accumulate Axis Bank Ltd CMP (Rs.) 454 Target (Rs.) 500 Upside (%) 10.1

Rationale - Axis Bank is trading ( Core Banking Business – 1.2x FY22ABV) at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:13:25 AM

Accumulate Escorts Ltd CMP (Rs.) 1,129 Target (Rs.) 1,150 Upside (%) 1.8

Rationale - Escorts is a prominent tractor player domestically with market share in excess of 11%. With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as expectation of normal monsoon 2020, we expect the tractor industry to outperform the larger automobile space in FY21E with Escorts a key beneficiary.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:12:52 AM

Buy Larsen & Toubro Ltd CMP (Rs.) 945 Target (Rs.) 1,093 Upside (%) 15.7

Rationale - L&T is India’s largest EPC company with a strong presence across various verticals including Infra, Hydrocarbon and services segment. The company has a strong order backlog of ~INR 3lakh cr. Majority of the order book is from the central government, state government and PSU, where risk of cancellation is low. The stock is trading at significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:12:08 AM

Accumulate HDFC Ltd CMP (Rs.) 1,942 Target (Rs.) 2,075 Upside (%) 6.8

Rationale - The sufficient liquidity at low cost would be the key criteria for NBFC/Bank to navigate the current situation, as asset side inflow is limited due to moratorium. HDFC Ltd is able to raise fund at competitive rate owing to strong operating metrics, experienced Management and industry’s best credit rating. The HDFC Ltd is trading (Core Banking Business – 1.42x FY22ABV) at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 10/07/2020 11:11:41 AM

Accumulate ICICI Bank Ltd CMP (Rs.) 371 Target (Rs.) 410 Upside (%) 10.6

Rationale - The Ability to raise sufficient liquidity at Low cost would be The key criteria for banks to navigate the current situation,. ICICI Bank is clearly better positioned in the liability side (in Q4FY20, Deposit grew 18% yoy and CASA ratio of 45%). ICICI Bank is trading ( Core Banking Business – 1.1x FY22ABV) at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164