Trending Company D-Mart

D-Mart reports a strong jump in revenues in Q2FY22.
by 5paisa Research Team 04/10/2021

D-Mart reports a strong jump in revenues in Q2FY22.

D-Mart, the one-stop supermarket chain that offers customers a wide range of basic home and personal products like - food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and more at competitive prices.

The company opened its first store in Mumbai in 2002. At the end of Q2 2022, the D-Mart has 246 stores with a Retail Business Area of more than 10 million sq ft (approx) across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

The company has added eight stores in the second quarter of FY2021-22. For the same quarter, it has reported Standalone Revenue from operations at Rs 7,649.64 crore which has seen a jump of 46.6% against Rs 5218.15 crore in the same quarter last year. In the pre-pandemic Q2 of FY 2019-20, revenue from operations stood at Rs 5949.01 crore, the company reported in its regulatory filing.

One of India’s largest retailers, D-Mart is the preferred supermarket of lower-middle, middle, and transitioning middle to upper-middle-income consumers. Its brick to mortar stores is always bustling with customers. By the end of October 2020, it has also forayed into online business to cope with the lockdown restrictions and limited mobility of the public.

The company sees humongous potential on both sides, offline as well as online. And with the post-pandemic surge in the buying due to pent up demand for non-essential goods, fueled by the upcoming festive seasons, the outlook for coming quarters is positive for the company.

The company is currently trading at very rich valuations of 240x Price to Earnings ratio. Also competition from Reliance Groups debut JioMart, Walmart-owned Flipkart and global e-commerce giant Amazon as one of the key risks for Avenue Supermarts, especially in its e-commerce segment.

The stock was trading at Rs 4257.10 up at 0.51% on Monday, October 4, 2021, at 11.02 am. 

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Superstar Stocks: BTST Trading and stocks that could deliver good returns till October 5, 2021.

superstar stocks for tomorrow!
by 5paisa Research Team 04/10/2021

Watch out for these stocks, Stocks that are in focus, Stocks to buy for tomorrow, Superstar Stocks selected on basis of a three-factor model, SAIL, NTPC, Can Fin Home.

Many times market participants see a stock opening with a gap-up and wish they should have bought this superstar stock a day before to take advantage of the gap-up move. To fulfil this wish, we have come out with a unique system, which would help us to get the list of candidates that can be probable superstar stocks for tomorrow.

The superstar stocks for tomorrow selected are based on a three-factor prudent model. The first important factor for this model is price, the second key factor is pattern, and last but not least is the combination of momentum with volume. If a stock passes all these filters it would flash in our system and as a result, it will help traders to spot the superstar stocks for tomorrow at the right time!.  

Here are the superstar BTST stocks for October 5, 2021.

SAIL: The stock of SAIL has gained nearly 4% on Monday and was seen trading near the day’s high. Interestingly, almost two hours are remaining in Monday’s session and the stock has already surpassed the volume of its previous trading session. The RSI on the daily time frame has marked a fresh 14-period high. Meanwhile, on the hourly time frame, it’s in bullish territory. The stock can probably test levels of Rs 123 followed by Rs 125 on the upside, while on the downside, support is seen around Rs 116.80.

NTPC: The stock of NTPC has hit a fresh 52-week high on Monday. The stock has jumped nearly 5%. The stock has formed a bullish candle and it has been trending high with the formation of higher highs on the lower time frame and volume activity is seen picking up in the last hour or so. The daily volume so far has already surpassed its previous day volume and it is greater than its 20-days average volume. The 14-period RSI is in the bullish territory on hourly, daily and weekly time frame. The stock has the potential to test levels of Rs 151.5 followed by Rs 154 on the upside. On the downside, the level of Rs 144 is likely to act as immediate support for the stock.   

Can Fin Home: The stock has hit a fresh all-time high with a bull wide range bar. Interestingly, the stock has seen its highest single-day volume since September 23 and in addition to this, the volume is greater than its 20-days average volume. The RSI is in the bullish territory on the hourly, daily and weekly time frame. The stock has the potential to test levels of Rs 750 and immediate support for the stock is placed at Rs 690.

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Everything you should know about National Pension Scheme!.

Everything you should know about National Pension Scheme!
by 5paisa Research Team 04/10/2021

National Pension Scheme (NPS) is a voluntary retirement savings scheme that aids an individual to save and enjoy returns during their retirement.

National Pension Scheme (NPS) was launched to promote the security of income to pension fund subscribers in their old age. The fundamental objective of the scheme is to aid in saving for life after retirement and to provide good returns when individuals stop earning.

NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA). It is a good investment option for retirement for employees working for Government as well as private employees. Any citizen of India can subscribe to NPS be it be resident or non-resident. Applicant should be between 18-65 years of age as of the date of submission of his/her application and should comply with KYC norms prescribed. NPS is available in three approaches – Tier I, Tier II and Swavalamban Scheme. NPS is already available for government employees and now it is extended to other citizens of India with effect from May 1, 2009.

Benefits of NPS:

  1. Low-Cost Structure: The primary advantage of NPS is its low-cost structure. NPS is considered the world’s lowest-cost pension scheme. Also, administrative charges and fund management fees are minimal. Along with this, one can expect better returns from the fund over a longer duration as compared to other financial investments.

  1. Transparency: There is complete transparency in the charge structure and the subscriber knows exactly how much he/she is paying for what costs.

  1. Simple: One can subscribe to NPS through various Point of Presence (PoP) which mostly covers banks and certain other financial entities.

  1. Flexibility: NPS offers flexibility to choose options including the auto-choice that allows one to choose the investment option based on the subscriber’s age and risk appetite.

  1. Tax Benefits:

  • Employee’s contribution - Eligible for tax deduction up to 10% of Salary (Basic + DA) under Section 80 CCD (1) within the overall ceiling of Rs 1.50 lakh under Sec 80 CCE.

  • Employer’s contribution – The employee is eligible for tax deduction up to 10% of Salary (Basic+DA) contributed by the employer under Sec 80 CCD (2) over and above the limit of Rs 1.50 lakh provided under Sec 80 CCE.

Types of Accounts:

  1. Tier I: This is a non-withdrawable account in which your contributions will be deposited. For Tier I account, the minimum contribution is Rs 1000 in a year excluding charges and taxes.

  1. Tier II: Tier II account is voluntary savings account in which you can deposit as well as withdraw at any point. It works like a mutual fund. However, one cannot have a Tier II account without Tier I account.

  1. Swavalamban Account: This type of NPS is provided for encouraging poor workers. Under this scheme, the Government of India would pay Rs 1000 per year for the first 4 years as its contribution.

Investments:

Asset Class E: Pre-dominantly investments in equity market instruments.

Asset Class C: Investments in fixed-income instruments other than Government securities.

Asset Class G: Investments in Government securities.

Asset Class A: Investment in Alternative Investment Schemes including instruments like CMBS, MBS, REITS, AIFs, InvIts etc.

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Auto Sales in September 2021 hit by chip shortage and higher fuel prices.

by 5paisa Research Team 04/10/2021

Hopes pinned on the upcoming festive season for the industry weighed down over several months.

Hit hard by global semi-conductor shortage that disrupted production operations, several car-makers including market leader Maruti Suzuki reported lower factory-gate sales numbers in September 2021.

The country’s largest PV-maker, Maruti Suzuki India reported a drop of 57% in monthly domestic PV sales, with 63,111 units being sold in September 2021 as compared to 1,47,912 units in the same month last year, while Mahindra & Mahindra’s domestic PV sales slipped 12% YoY to 13,134 units.

On the other hand, Tata Motors bucked the trend and reported a YoY sales growth of 21% in September 2021 to 25,730 units as compared to 21,199 units last year. In the Electric Vehicle segment, the company crossed the 1,000 unit milestone for the second month in succession to register its highest ever monthly and quarterly sales of 1,078 units and 2,704 units, respectively. The company has seen a near three-fold growth in EV sales with the rising acceptance and popularity of the Nexon EV and Tigor EV.

Domestic PV Sales   

Sep-21 

Sep-20 

% change   

Maruti Suzuki   

63,111 

147,912 

-57 

Tata Motors   

25,730 

21,199 

21 

Mahindra & Mahindra   

13,134 

14,857 

-12 

The story was the same in the two-wheeler space with leading OEMs like Hero Motorcorp - which reported a fall in sales numbers for the month of September despite recording growth on a sequential basis. The domestic sales of the company reported a de-growth of 27% in September 2021 to 5,05,462 units as compared to 6,97,293 units in September 2020. Similarly, Bajaj Auto domestic two-wheeler sales stood at 173,945 units in September 2021, falling 27% over the same period last year.

TVS Motors recorded a marginal increase in domestic two-wheeler sales for September 2021 as compared to the same period last year. The company registered sales of 244,084 units in September 2021 against sales of 241,762 units in September 2020. With pandemic restrictions easing and the festive season soon approaching, it expects the retails to improve significantly in the coming months.

Domestic 2-W Sales  

Sep-21 

Sep-20 

% change  

Hero MotoCorp  

5,05,462  

6,97,293  

-27 

TVS Motor  

2,44,084  

2,41,762  

0.9 

Bajaj Auto  

173,945 

219,500 

-21 

Companies in the Commercial Vehicle (CV) space saw sales improving on a YoY basis in September 2021 on the back of a comparatively lower base last year. The sector was amongst the worst hit due to pandemic-induced economic uncertainty and revision in load-carrying norms.

The players in the CV space are now benefiting from the opening up of the economy with covid restrictions being eased. Bajaj Auto was the standout performer in this space with domestic CV sales almost doubling to 18,403 units in September 2021 as compared to 9,231 units last year.
 

Domestic CV Sales  

Sep-21 

Sep-20 

% change  

Tata Motors  

30,258 

23,211 

30 

TVS Motor  

14,645 

14,360 

1.9 

Mahindra & Mahindra  

12,449 

19,494 

-36 

Bajaj Auto  

18,403 

9,231 

99 

Ashok Leyland  

8,787 

7,835 

12 

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What is the short-term impact on the share price when Rakesh Jhunjhunwala buys them.

What is the short-term impact on the share price when Rakesh Jhunjhunwala buys them?
by 5paisa Research Team 04/10/2021

Rakesh Jhunjhunwala bought Zee Entertainment Enterprises on September 14, 2021, stock has rallied from Rs 205 to Rs 270 with an intraday gain of 39.98%.

Whenever a big bull like Rakesh Jhunjhunwala has an eye on some company people get more interested in those stocks and just buy them. But if you enter a little late you might miss the short-term rally, and will be surprised knowing the impact of his stocks bought in 2021.

There are at least four instances in 2021 where stock price rallied immediately after Rakesh Jhunjhunwala entered the stock. Here are some of them.

  • Rakesh Jhunjhunwala bought Zee Entertainment Enterprises on September 14, 2021, in a bulk deal of 50 lakh shares at an average price of Rs 220. The transaction happened between 9 am and 10 am. The interesting part of the story is the stock has rallied from Rs 205 to Rs 270 with an intraday gain of 39.98%. Now the stock is trading around Rs 300 and the return for Rakesh Jhunjhunwala from the stock is 40% in 20 days.

  • Rakesh Jhunjhunwala bought IIFL Securities Ltd on January 2, 2021, in a bulk deal of 27 lakh shares at an average price of Rs 42.8. As the news spread, the stock rallied from Rs 47 to Rs 50 within two days of the transaction, where the short term gain was 6.3%. Now the stock is trading around Rs 99.2 and the return for Rakesh Jhunjhunwala from the stock is 110% in 10 months.

  • Rakesh Jhunjhunwala bought Fortis Healthcare ltd on March 17 and 18, 2021 in a bulk deal of 1.86 crore shares at an average price of Rs. 185. Within three days of that transaction, the stock rallied from Rs 185 to 212. The short term gain was 10%. Now the stock is trading around Rs 275.60 and the return for Rakesh Jhunjhunwala from the stock is 48.5% in six months.

  • Jhunjhunwala bought Aurobindo Pharma Ltd on April 7, 2021, in a bulk deal of 16.25 lakh shares at an average price of Rs 905. And yes, it happened again, as within two days of the transaction the stock price went from Rs 905 to Rs 952. The short term gain here was 5.19%. Now the stock is trading around Rs.735 and the return for Rakesh Jhunjhunwala from the stock is -18.5% in six months.

One can, if possible, enter the stock purchased by ace investor Rakesh Jhunjhunwala on the same day, and expect outperformance in short term, going by the recent stock price behaviour.

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Five takeaways from D-Mart’s early Q2 sales data

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by 5paisa Research Team 04/10/2021

Mumbai-based Avenue Supermarts Ltd, which owns and runs retail chain D-Mart, has come up with an early set of numbers for the three months ended September 30, 2021 that showed a rosy business climate as concerns about the Covid-19 pandemic recedes in its key operating markets.

The company’s stock had hit an all-time high two weeks back and has corrected marginally since then. But the company still commands a hefty market value of Rs 2.7 trillion. At this level it is valued over 220x its trailing earnings multiple. The stock opened more than 3% above its previous close on Monday but later moderated and was trading marginally above Friday’s close.

Here are five things that one can decipher from the numbers shared by the company.

Pick-up in consumer sentiment

Consumer sentiments had taken a big hit during the pandemic. While ecommerce activities had picked up pace quickly as people were still apprehensive about going out to shop, restrictions in movement of people had affected physical shopping. Those issues are easing now.

In fact, consumer sentiment was weakening even before the pandemic hit the economy.

D-Mart’s parent Avenue Supermarts’ Q2 sales this year were over 28.5% over the pre-pandemic sales during the corresponding quarter. This shows the weak sentiment has bottomed out and withered with the pandemic and is now poised for better days.

Q2 vs Q2—best quarter ever

On a like-to-like basis, Avenue Supermarts’ standalone revenues have risen 46.6% to Rs 7,649.64 crore for the second quarter ended September 31, 2021. The company, which is promoted by Radhakishan Damani and his family, had clocked revenue from operations of Rs 5,218.15 crore in the July-September quarter a year ago. This means it has managed to stay on double-digit annual growth rate despite the pandemic over the last two years.

It is not just the highest ever Q2 sales by the company, but also the highest level ever in any three-month period, beating the previous best during the third quarter of the last financial year.

Sequential sales uptick

The company’s sequential sales rose around 46% compared to the first quarter ended June 30. The first quarter had seen consumer sentiment slump due to the brutal impact of the pandemic’s second wave, especially in North India. Expectations of a similar wave in other parts of the country had prompted consumers to restrict spending.

Store network up

D-Mart has 12% more stores now compared to the previous year as it increased the count to 246 from 220 at the end of September 2020. Last quarter alone it added eight new stores. This shows the company has been scaling up its business despite the impact of the pandemic in its home market Maharashtra, which has been the worst hit with around a fifth of the total cases in the country and accounting for a third of the deaths to date.

The company’s stores are spread across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.

D-Mart poised for bumper Diwali quarter?

Typically, the third quarter of a financial year is a big one for retailers as the country sees multiple festivals across the country. In fact, last year, despite the pandemic, the sequential growth in sales for D-Mart was over 41%.

If the company manages to see a similar high tide this year, it could be set for well over Rs 10,000 crore in sales in Q3 of 2020-22. If the suppressed demand gets unlocked this could also top the Rs 11,000-crore mark.