Looking at the results of companies, experts and brokerage houses are also forming their opinion about their shares. It is advisable to invest in some and stay away from some.
Tata Group Stocks in Rakesh Jhunjhunwala Portfolio: Corporate earnings season is underway for the March quarter of FY 2022. Looking at the results of companies, experts and brokerage houses are also forming their opinion about their shares. Those whose outlook is looking better, they are also giving buying advice in them. Brokerage house ICICI Securities has recommended an investment in one such stock Tata Communications. At the same time, it has been advised to reduce Rallis India from the portfolio. The special thing is that both these shares belong to the Tata Group and both are included in the portfolio of market veteran Rakesh Jhunjhunwala.
Brokerage house ICICI Securities has given investment advice in Tata Communications (TCom) and has set a target of Rs 1600. On Friday, it closed at Rs 1234, which means there is a scope of 30 percent return in it. The revenue of the company’s data business grew by 5 per cent year-on-year and 0.7 per cent on a quarterly basis. It is weaker than the Q3 orderbook. But the order book has improved. The management commentary is also a confidence booster. Management has talked about recovery in revenue growth. The company can show strong revenue growth in FY23. Data business EBITDA grew by 4.2 percent on a year-on-year basis, while 7.1 percent on a quarterly basis. The brokerage house has cut the EPS estimate for FY23-24E by 5-12 per cent.
Rakesh Jhunjhunwala held a 1.1 percent stake in Tata Communications in the March quarter. The company has 3,075,687 shares in his portfolio. In the December quarter too, he had only 1.1 per cent stake in the company.
Rallis India Ltd.
Brokerage house ICICI Securities has given reduce advice on Rallis India and has a target of Rs 235. On Friday, it had closed at Rs 254, that is, there is a possibility of a further decline of 7 percent. The stock had fallen up to 9 per cent on Friday as well. Rallis is India’s leading agrochemical company and has a healthy pipeline of sustainable products. The brokerage says that the company is facing lower pricing pressure for key molecules in the international market. Although the volume growth visibility is better.
The company has incurred a loss of Rs 14 crore in the March quarter due to higher raw material cast. The company’s profit has decreased by 28 percent in the entire financial year. Conso revenue grew 8 per cent year-on-year to Rs 508 crore. , while it was Rs 471 crore in the same period a year ago. The company has seen a growth of 14 percent in domestic crop care business and 6.2 percent in exports. While there was a 13 per cent weakness in the Seeds business in the March quarter. Margins were also under pressure due to rising inflation.
Rakesh Jhunjhunwala holds 9.8 per cent stake in Rallis India in the March quarter. The company has 19,068,320 shares in his portfolio. In the December quarter too, he had only 9.8 per cent stake in the company.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews.in. Markets are risky, so take expert opinion before investing.)