Nifty 18210.95 (-0.31%)
Sensex 61143.33 (-0.34%)
Nifty Bank 40874.35 (-0.88%)
Nifty IT 35503.9 (0.97%)
Nifty Financial Services 19504.75 (-0.74%)
Adani Ports 745.85 (-0.54%)
Asian Paints 3094.65 (4.20%)
Axis Bank 787.50 (-6.46%)
B P C L 427.70 (-0.78%)
Bajaj Auto 3776.50 (-0.40%)
Bajaj Finance 7482.15 (-4.75%)
Bajaj Finserv 18012.00 (-1.86%)
Bharti Airtel 702.35 (0.88%)
Britannia Inds. 3697.85 (0.14%)
Cipla 922.50 (1.65%)
Coal India 173.60 (-0.83%)
Divis Lab. 5149.35 (2.60%)
Dr Reddys Labs 4662.70 (-0.08%)
Eicher Motors 2583.90 (-0.25%)
Grasim Inds 1728.40 (-0.63%)
H D F C 2915.00 (0.12%)
HCL Technologies 1177.15 (0.89%)
HDFC Bank 1642.80 (-0.60%)
HDFC Life Insur. 693.85 (0.55%)
Hero Motocorp 2690.15 (-0.38%)
Hind. Unilever 2396.60 (-1.65%)
Hindalco Inds. 479.85 (-1.28%)
I O C L 130.80 (-0.53%)
ICICI Bank 835.00 (0.68%)
IndusInd Bank 1142.55 (-1.07%)
Infosys 1728.95 (1.48%)
ITC 238.45 (0.74%)
JSW Steel 684.90 (-1.36%)
Kotak Mah. Bank 2188.25 (-1.03%)
Larsen & Toubro 1784.55 (-0.65%)
M & M 886.80 (-0.87%)
Maruti Suzuki 7356.25 (0.81%)
Nestle India 19004.60 (-1.11%)
NTPC 141.30 (-1.33%)
O N G C 157.90 (-3.19%)
Power Grid Corpn 190.25 (-0.08%)
Reliance Industr 2627.40 (-1.26%)
SBI Life Insuran 1186.00 (1.19%)
Shree Cement 28107.75 (1.19%)
St Bk of India 519.15 (1.29%)
Sun Pharma.Inds. 825.10 (1.43%)
Tata Consumer 818.75 (1.22%)
Tata Motors 497.90 (-2.11%)
Tata Steel 1326.15 (-1.30%)
TCS 3489.75 (0.21%)
Tech Mahindra 1567.85 (0.29%)
Titan Company 2460.10 (0.22%)
UltraTech Cem. 7354.20 (1.17%)
UPL 741.50 (3.96%)
Wipro 671.10 (0.44%)

5 Stocks to Buy Today: September 27, 2021

5 Stocks to Buy
by 5paisa Research Team 27/09/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.

List of 5 Stocks to Buy Today

1. KPIT Technologies Ltd (KPITTECH)

KPITTECH Stock Details for Today

- Current Market Price: Rs.369

- Stop Loss: Rs.360

- Target 1: Rs.379

- Target 2: Rs.394

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts analysed positive chart structure in KPITTECH, thus making this stock as one of the best stocks to buy today.

 

2. Cera Sanitaryware Ltd (CERA)

Cera Sanitaryware Ltd Stock Details for Today: 

- Current Market Price: Rs. 4,990

- Stop Loss: Rs. 4,865

- Target 1: Rs. 5,100

- Target 2: Rs. 5,276

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts observed breakout on chart, thus recommending this stock as the best stock to buy today. 

 

3. Gujarat Narmada Valley Fertlzrs&Chms Ltd (GNFC)

Gujarat Narmada Valley Fertlzrs&Chms Ltd Stock Details for Today: 

- Current Market Price: Rs. 405

- Stop Loss: Rs. 392

- Target 1: Rs.419

- Target 2: Rs. 433

- Holding Period: 1 week

5paisa Recommendation: Our technical experts expects strong volume in this GNFC and recommends buying this stock.

 

4. Eicher Motors Ltd (EICHERMOT)

Eicher Motors Ltd Stock Details for Today: 

- Current Market Price: Rs. 2,931

- Stop Loss: Rs. 2,868

- Target 1: Rs. 3,000

- Target 2: Rs. 3,110

- Holding Period: 1 week

5paisa Recommendation: Further buying expected in this stock and thus making this stock as one of the best stocks to buy today.

 

5. Acrysil Ltd (ACRYSIL)

Acrysil Ltd Stock Details for Today: 

- Current Market Price: Rs. 803

- Stop Loss: Rs. 782

- Target 1: Rs. 830

- Target 1: Rs. 867

- Holding Period: 1 week

5paisa Recommendation: Our technical experts expects a positive momentum in this stock.

 

Share Market Today

SGX NIFTY: 

SGX Nifty indicates positive opening for Indian markets. SGX Nifty is at 18,012.50 levels, higher 163.70 points. (Updated at 7:40 AM).

International Markets:

US Market:

US markets ended flat on Friday as markets consolidate after the Federal Reserve outlook on rates and tapering of bond buying.

Bond yields closed at almost 3-month highs hitting 1.45% while the US$ index also gained and closed at 93.24, with oil prices hitting 2-year highs.

 

Asian Market:

Asian markets opened in the green with the Japanese 'Nikkei' trading up nearly 100 points as rising in oil and bond yields sees traction in most Japanese exporters.

Chinese action on cryptocurrencies will see more speculation even as most fintech players turn to other Asian markets.

The Chinese stocks index has corrected over 15% this year as fear of Government impositions sees huge outflow of foreign investors.

 

Disclaimer: The above report is compiled from information available on the public platforms.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
There is some issue, try later
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Tata Group to Consolidate Airlines Under a Single Entity

Tata Group News
by 5paisa Research Team 27/09/2021

Almost 73 years after Air India (formerly Tata Airlines) was taken away from the Tatas, the Tatas may be again chasing their dream of a consolidated national airline. The bidding for Air India is not over and Tata Group, Ajay Singh of SpiceJet and few PE funds are in the fray.

The verdict is not yet out, but the market is excited about the likely impact of a consolidated Tata airline. After the demise of Kingfisher and Jet Airways, there has been no competitive airline market in India.
If the Tatas win the bid for Air India, they could look at consolidation of airline interests under one head. Tata Sons currently holds 83.67% in Air Asia with the balance 16.33% held by Air Asia Malaysia Bhd, which plans to exit India fully by May 2022.

This stake in Air Asia India will be sold to the Tatas for $18 million. Of course, in the case of Vistara, Singapore Airlines owns 49% with Tata Sons holding the balance. Here the buy-in of Singapore Airlines will be required.

Why does the consolidation make business sense? If you look at the market share of airlines in India, the 3-month rolling average is 56% for Indigo, 12.5% each for Air India & Spice Jet, 9% for Vistara, 5.8% for Air Asia and 3.2% for Go Air. 

Apart from Indigo, which leads the Indian market with its LCC model, other market shares are too dispersed. If the Tatas combine Vistara, Air Asia and Air India (subject to winning the bid), then the Tatas get a combined 27-28% of the Indian aviation traffic.

This puts them in a sweet spot to take on the leader, Indigo Airlines. Also, Tata Airlines will be the only airline to offer the complete bouquet of LCC and full service airlines under a consolidated banner. As part of its plan, the Tatas would like to get the buy-in of Singapore Airlines and also get them to partner the combined venture. 

When Cathay Pacific, Thai Airways and Singapore Airline wanted to benchmark themselves on airline service standards 50 years ago, it was Air India, under JRD Tata, that they turned to. It is perhaps time to revive some of the glory.

Next Article

Journey of Sensex from 1,000 to 60,000 in 31 Years

Sensex Traversed from 1,000 to 60,000
by 5paisa Research Team 27/09/2021

The Sensex, which began its journey at 100 in 1979 has traversed all the way to 60,000 in 2021. That is a 600-bagger over 42 years, but we come back to that later. The first time the Sensex touched the 1,000 levels was in July 1990. From that point, the Sensex has been a 60-bagger over the last 31 years almost coinciding from the point Dr. Manmohan Singh opened up the Indian economy.

However, the journey is a lot more interesting. The first 10-bagger move from 100 in 1979 to 1,000 in 1990 happened over 11 years. That is annual CAGR yield of 23.3% and still remains one of the best rallies on the Sensex. The next 10-bagger happened after nearly 16 years as the Sensex scaled 10,000 in February 2006. That is an annualized yield of 15.5% over 16 years.

The move from 10,000 to 20,000 on the Sensex happened in exactly 21 months in Oct-07. However, the journey to 30,000 took 7 years due to the global financial crisis. The next move to 40,000 took a little over 4 years up to May 2019 and only happened in the aftermath of the NDA being voted back to power for a second time.

The move from 40,000 to 50,000 took 17 months, but this is despite the fact that the Sensex had corrected nearly 35% to around the 25,700 levels in March 2020 on COVID-19 fears. The final move from 50,000 to 60,000 happened in just 8 months as the Sensex scaled from 50,000 in Jan-21 and 60,000 in Sep-21. This journey would have been much shorter but for the COVID 2.0 intervention.

How did Sensex perform over last 31 years in terms of CAGR returns?

If you had invested in the Sensex in July 1990, your money would have multiplied 60-fold in 31 years implying CAGR returns of 14.12%. However, had you held on to the Sensex for the full 42 years since 1979, your CAGR returns would have been 16.46% over 42 years, excluding dividends. The Sensex journey is the story of Indian equity as an irresistible asset class.

Also Read: Sensex Touches a Historic Mark of 60,000 Points

Next Article

Impact of Maharashtra Allowing Opening of Multiplexes

Impact of Maharashtra allowing opening of multiplexes
by 5paisa Research Team 27/09/2021

On the morning of Monday, 27th September, the 3 major listed multiplex stocks; PVR, INOX and Cineline opened with strong gains. The gains tapered later but these stocks are still 6-8% higher in early trades. What exactly has driven the rally in these multiplex stocks. More so, in the case of PVR, where the stock had corrected 4% on 24th September on account of a credit downgrade by CRISIL.

The rally in multiplex stocks was triggered by Maharashtra allowing multiplexes to resume operations from 22nd October, subject to safety and social distancing protocols. It may be recollected that all malls and multiplexes had been shut since April 2021 after the resurgence of COVID 2.0. Maharashtra is critical as it account for up to 30% of multiplex revenues and sets the all-India tone.

A number of big budget Hindi movies are slated to release but are going slow due to the multiplex lockdown. These include big budget multi-starrer Suryavanshi, Ranveer Singh’s 83, Akshay Kumar’s Prithviraj, Aamir Khan’s Lal Singh Chaddha, Ranbir Kapoor’s Shamshera and Saif Ali Khan’s Bunty aur Babli 2. If the operations resume, it is expected that it would be cash flow positive for multiplexes in the December quarter.

Multiplex companies, once reopened, will also gain from the assurance given by Disney. In 2021, Disney will not release any new movies on OTT up to 45 days after the theatre release. This will ensure that OTT is not a major threat in this year since the first 2-3 weeks account for a bulk of the earnings from movies for the multiplex companies.

Brokers like Nirmal Bang and Sharekhan are betting on a sharp revival in multiplex stocks resulting in strong revenue growth in FY23. Price targets for PVR and INOX have been raised by 25-30% by brokers as cash bleeding is likely to come to a halt once the multiplexes are opened. It is estimated that the movie exhibition industry has lost over $600 million since the lockdowns first started in mid-2020. The hope is that the worst may be over.

Next Article

How Indiabulls Housing Finance is Deleveraging its Balance Sheet

Indiabulls Housing Finance to reduce debt
by 5paisa Research Team 27/09/2021

In the last few years, most NBFCs including those in the housing finance space, have been under pressure at two levels. Firstly, there was an asset liability mismatch in most books as HFCs were borrowing short end and lending for homes, which is normally long end.

Secondly, most NBFCs were facing cash flows problems in servicing their loan repayments, putting them at solvency risk. That was because, in the midst of the liquidity crunch, cash flows were not coming in regularly.

One of the NBFCs that has put in an effort to rectify this problem and deleverage the balance sheet is Mumbai-based Indiabulls Finance. The stock had come under a lot of pressure over NPA concerns, its exposure to Yes Bank and asset liability mismatch.

It has cleaned up its balance sheet to become fully matched in terms of ALM (asset liability management). It has also become significantly positive on cash flows, to the extent that it has also started creating reserves for future redemptions.

To underscore its commitment, Indiabulls Housing Finance recently repaid NCDs worth Rs.7,076 crore ahead of schedule. This included a sum of Rs.6,576 crore borrowed by Indiabulls Housing and its subsidiary ICCL in Sep-16 and Sep-18 respectively.

There was also an NCD of Rs.500 crore issued by Indiabulls Housing way back in September 2011. These NCDs aggregating to Rs.7,076 crore were all repaid ahead of schedule. In dollar terms, the amount repaid is around $960 million.

In addition, Indiabulls has gone one step ahead and created a special redemption reserve for bonds maturing in May 2022 worth $350 million. Indiabulls will transfer 75% of these maturity proceeds to a debt repayment trust managed by IDBI Trustee Company.

The first tranche has already been transferred in Aug-21. The second tranche will be transferred in Nov-21 and the last tranche in Feb-22. Three-fourth of the redemption proceeds will be set aside 3-months ahead of maturity date.

Indiabulls not only wants to prove a point on its solvency but also wants to give comfort and reassurance to bond holders and shareholders that the company’s finances are in fine fettle. This should give a boost to sentiments.

Next Article

Aditya Birla Sun Life AMC IPO Note

IPO
by 5paisa Research Team 27/09/2021

Aditya Birla Sun Life AMC Ltd, is the fourth largest asset management company in India in terms of assets under management (AUM) and the largest non-bank mutual fund. It has total assets under management of Rs.275,454 crore as of the end of June quarter. More than 50% of its AUM comes from institutional customers, which is one of the reasons why the AMC is very strong in terms of non-equity AUM.

Aditya Birla Sun Life AMC Ltd currently offers a total of 135 mutual fund schemes consisting of 35 equity schemes, 93 debt schemes, 2 liquid schemes and 5 ETFs. In addition, it also offers 5 domestic fund of funds (FOF). Apart from a strong customer base and aggressive agent network, Aditya Birla Sun Life AMC Ltd also has the advantage of the Birla brand name, which has been in existence in India for over 100 years.

Below are the terms which you should know about Aditya Birla Sun Life AMC IPO:

Key terms of the IPO issue of Aditya Birla Sun Life AMC Ltd
 

Key IPO Details

Particulars

Key IPO Dates

Particulars

Nature of issue

Book Building

Issue Opens on

29-Sep-2021

Face value of share

Rs.5 per share

Issue Closes on

01-Oct-2021

IPO Price Band

Rs.695 - Rs.712

Basis of Allotment date

06-Oct-2021

Market Lot

20 shares

Refund Initiation date

07-Oct-2021

Retail Investment limit

14 Lots (280 shares)

Credit to Demat

08-Oct-2021

Retail limit - Value

Rs.199,360

IPO Listing date

11-Oct-2021

Fresh Issue Size

Nil

Pre issue promoter stake

100.00%

Offer for Sale Size

Rs.2,768.26 crore

Post issue promoters

86.50%

Total IPO Size

Rs.2,768.26 crore

Indicative valuation

Rs.20,505 crore

Listing on

BSE, NSE

HNI Quota

15%

QIB Quota

50%

Retail Quota

35%

Data Source: IPO Filings

Here are some of the key merits of the Aditya Birla Sun Life AMC business model

i) Trusted brand with over 100 years of brand existence.

ii) Largest non-bank mutual fund in India in terms of AUM.

iii) Good mix of retail and institutional clients as well as equity and debt schemes.

iv) Strong network of brick-and-click with 66,000 MFD and 240 national distributors.

v) Quarterly AUM grew at 14.55% CAGR between 2016 and 2021.
 

Also Check:  Aditya Birla Sun Life AMC IPO : 7 Things to Know About
 

How is the IPO being structured?

Currently, Aditya Birla Sun Life AMC Ltd is 51% owned by Aditya Birla Capital and 48% by Sun Life PLC. The entire issue of 388.80 lakh shares (including 28.51 lakh shares by Aditya Birla Capital and 360.29 lakh share by Sun Life AMC) will be an offer for sale in which both the promoters viz. Aditya Birla Capital and Sun Life AMC will offer shares in the OFS. Here is how the shareholding will look like before and after the IPO.

 

Particulars

Pre-IPO Holding

Pre-IPO (%)

Post-IPO Holding

Post-IPO (%)

Aditya Birla Capital

146,879,680

51%

144,028,800

50.01%

Sun Life PLC

141,120,000

49%

105,090,880

36.49%

Public

-

-

38,880,000

13.50%

Total Shareholding

287,999,680

100%

287,999,680

100.00%

Data Source: Company RHP

Thus post the offer for sale completion, the stake of ABCL will go down marginally, but the stake of Sun Life PLC comes down sharply from 49% to 36.49%. The public will be holding the divested 13.50% stake.
 

Financials of Aditya Birla Sun Life AMC Ltd Finance
 

Financial Parameters

Fiscal 2020-21

Fiscal 2019-20

Fiscal 2018-19

Total Income

Rs.1,205.84 cr

Rs.1,234.77 cr

Rs.1,407.25 cr

Net Profit

Rs.526.28 cr

Rs.494.40 cr

Rs.446.80 cr

Net Worth

Rs.1,704.61 cr

Rs.1,316.87 cr

Rs.1,220.57 cr

Net Profit Margins

43.64%

40.04%

31.75%

RONW (%)

30.87%

34.54%

36.61%

Data Source: Company RHP

The revenues overall are down over the last 3 years but that is due to the lower expense ratio insisted upon by SEBI. That has been partially compensated by the higher equity flows, but the shortfall still remains. However, the profits have been boosted through leaner operations, digital initiatives and lower asset impairment requirements.

Investment Perspective for Aditya Birla Sun Life AMC Ltd

This will only be the fourth AMC to be listed and here are some investment arguments.

a) In terms of relative valuations, it is cheaper than HDFC AMC and Nippon Mutual Fund but more expensive than UTI Mutual Fund. Lower equity AUM will be an issue.

b) The indicative market cap of Birla AMC at Rs.20,505 crore is about 7.5% of the total assets under management. This is at par with the rate at which most sale deals have happened, so the headroom may be limited.

c) In the last few months, there has been a distinct shift towards hybrids, gold funds and passive funds. That is likely to maintain the pressure on the top line growth of the mutual fund industry in general.

At the current market cap of Rs.20,505 crore the IPO does appear fully valued. It may not be a value enhancer in the short term, but over the long term it still remains a veritable play on the big financial savings shift happening in India.