Go for Federal Bank, IDFC First and RBL with a long-term view: Sudip Bandyopadhyay (2024)
We can look forward to a good six to nine months in the current fiscal once we cross this hump of the Covid second wave, says Sudip Bandyopadhyay, Group Chairman, Inditrade Capital.
Nifty has crossed 15,100 and the Sensex is back at 50,200. While the country is cautiously optimistic about a slowdown in the Covid second wave, the market is showing exuberance. Do you think that we are once again on the path of a bull run? Market always anticipates. Other than Covid numbers coming down, another point which needs to be noted is that the monsoon is expected to be good and that is always good for the Indian economy and most of the Indian companies, directly or indirectly. I think the market is cheering these two events.
There is a big concern that rural India which was the saviour last time is getting impacted this time. But while rural India is definitely getting impacted by the coronavirus, the prices of farm produce are at a 10-year high. The government will save a lot of money because they will not have to exercise that MSP to procure goods. It will go to the market in the normal course and this will put a lot of money in the hands of the rural economy and farmers which augurs well for the Indian economy and consumer as well as other capital goods. We can look forward to a good six to nine months in the current fiscal once we cross this hump of the Covid second wave.
The specialty chemical plays are doing exceedingly well. Is there anything within this pocket that you would be betting on for a long term even at the current price? Specialty chemical has been a story of secular re-rating and that process of re-rating will continue for quite some time. This is a fallout of China plus one policy and substitution of Chinese production by production from other countries like India. It is pretty much what is happening across the supply chain. So India’s specialty chemicals companies will definitely benefit. As far as the companies are concerned, Nocil has been our favourite and we continue to maintain our positive view on Nocil. We also like Aarti Industries and we believe that for long-term investors, it is good to have Aarti Industries in their portfolio. This remains our top speciality chemicals pick even at current levels.
MORE STORIES FOR YOU✕
Earnings will get back on track Q3 onwards: Vikas Khemani
Use cyclical upsides to book profits: Deven R Choksey
Inflation risk to keep markets volatile over summer months: Andrew Holland
Midcap cement has been gaining traction. What could generate strong alpha in the long haul? My view on cement has been consistent and I believe that cement companies having production facilities and capacity in the central and eastern part of India will continue to benefit disproportionately amongst the cement manufacturers. There are a few pretty well positioned cement companies in this area. One of them, Birla Corp, has been our favourite and we continue to maintain our positive view there. HeidelbergCement is another favourite.
As far as demand for cement is concerned, we will not see major pickup during April, May, June and maybe July. The infrastructure spend which the government is planning to go ahead with may get tempered a bit because of the expenses on Covid and related work but there will be a significant spend by the government and that will definitely create significant demand. Housing demand has been going up in a secular manner and that creates cement demand. So overall, companies having capacity in these markets will benefit because the pricing power will be with them. Both Birla Corp and Heidelberg have been our favourites. Out of the two, we recommend a buy on Birla Corp even at current levels.
Interest rates are at multi-year lows. We are in a low credit cost environment. How do you see banks as a whole? Will there be more asset quality pressure that will surpass maybe even the credit growth potential for banks and financials? I have been positive on banks for some time. I believe that the second wave will definitely result in some asset quality issues in the short term but by and large, at the valuations at which some of the large cap and midcap banks are quoting, they are definitely good buys at current level for an investor with a longer time horizon.
Some of the midcap banks like Federal Bank and IDFC First have done pretty well in the recent past. The asset quality has been improving. Their CASA has been improving. RBL also can be talked about in the same breath. They have also raised capital a few months back and the asset quality has been improving. If you have a long-term view, you should go and buy into these banks.
As far as the large cap banks are concerned, it is a fantastic story. a) The banks performance; b) the asset quality improvement and; c) the fact that the subsidiaries of largecap banks like SBI, HDFC and ICICI have also been performing exceedingly well. This allows these banks to exit partially at least from the subsidiaries, raise capital and obviate the need to come to the market further for dilution, going forward.
L&T has bounced back yesterday, what has been your reading on the kind of earnings that they delivered? After the results came out, we recommended a buy in L&T. A few factors need to be noticed as far as L&T is concerned. a) We believe the worst is over as far as the performance numbers are concerned.
b)In a very structured manner, the company has been going about divesting and getting out of non-core assets. They have been doing that pretty systematically and that is improving their cash flows and the return ratios. Also, the hydrocarbon capex as far as West Asia is concerned is going up. This is on the back of oil prices remaining stable at a higher level. L&T has a very evolved business there and they should be a beneficiary of that.
c) The order book growth has not been spectacular but they have a very strong order book and going forward the execution should improve.
Also the local lockdowns have not been really bad for construction. In most of the places, construction is continuing. Yes, the pace has slowed down but it is not a complete shutdown like it was during the last financial year. At the current level, the stock has corrected significantly and it is a very good buy. We have a target of Rs 1,700 for a 9-12 month period.
The threat of inflation is looming over the US markets. Do you see that as being the next big risk for the markets? At some point of time, global markets will experience inflation. The kind of liquidity the central banks across the world have injected into the economy will lead to some amount of inflation but they will live with that inflation. The way the US is moving ahead with a $1.9-trillion infrastructure spend, significant economic growth will be expected in the US. They also have probably come out of this entire cycle of multiple waves of Covid. The same can probably be said about the US as well as Europe at this stage and that is a very good sign.
If the growth momentum comes back in the economy, this inflationary pressure will be absorbed by these economies to a great extent and things will move forward. Also, I do not think the FII flows coming into India will get impacted in the near future. The taper tantrum which we saw during the last global financial crisis and which led to markets kind of swaying wildly probably will not be experienced this time. The markets have matured and so have the financial regulators across the world. When the interest rates start moving up, it will be a very gradual process without affecting the market.
View 23 reports from 6 analysts offering long term price targets for IDFC First Bank Ltd.. IDFC First Bank Ltd. has an average target of 75.83. The consensus estimate represents a downside of -7.18% from the last price of 81.70.
Is IDFC First Bank Ltd a good quality company? Past 10 year's financial track record analysis by Moneyworks4me indicates that IDFC First Bank Ltd is a average quality company.
According to the brokerage firm, Federal Bank is in a strong position to achieve a return on assets (RoA) of over 1.2% in the next few years. It said that the bank has demonstrated good performance in recent years and that its current valuations are still attractive.
IDFC First Bank deposits are secured under the Deposit Insurance Scheme of RBI under which up to ₹ 5 lakh of all deposits of deposit holders are insured by DICGC.
As on 16th Jun 2023 RBLBANK SHARE Price closed @ 173.35 and we RECOMMEND Strong Buy for LONG-TERM with Stoploss of 141.31 & Strong Buy for SHORT-TERM with Stoploss of 154.23 we also expect STOCK to react on Following IMPORTANT LEVELS.
If you see any giant stock of any good company in a 10 years frame, you will see it has generated good returns in the long term. Though there is no ideal time for holding stock, you should stay invested for at least 1-1.5 years.
Historically, a large share of the stock market's gains and losses occur in just a few days of any given year. Since the pattern of returns isn't predictable from month to month, a consistent long-term investment can add to your bottom line.
Less Costly. One of the main benefits of a long-term investment approach is money. Keeping your stocks in your portfolio longer is more cost-effective than regular buying and selling because the longer you hold your investments, the fewer fees you have to pay.
How safe are RBL Bank depositors? In Dec 2021, RBI released a press note stating everything was OK with RBL Bank. They clarified that RBL Bank is well-capitalized & in a strong position. They appointed Mr Yogesh Dayal as an Additional Director to support the bank in all regulatory & supervisory matters.
IDFC scored higher in 8 areas: Overall Rating, Culture & Values, Diversity and Inclusion, Work-life balance, Senior Management, Compensation & Benefits, CEO Approval and Recommend to a friend.
Although not many analysts are positive on the stock, yet some investors find it attractive also because it is the cheapest private bank stock. Trading at a price to book value of 0.58x, RBL Bank is the cheapest among all the 10 Nifty private bank stocks.
Upon payment of the joining fee and making purchases totalling Rs. 2,000 within 30 days of receiving your card, you will receive 4,000 reward points as a welcome bonus. Please note that First Year Free cards are not eligible for welcome rewards. Earn 1 reward Point for every Rs.
Gaja invested into RBL in three tranches starting 2011. MUMBAI: Private equity fund Gaja Capital has sold a part of its stake in RBL Bank for an undisclosed sum via a block deal making eight times return on its investment. The shares were sold to US based mutual fund Wasatch Funds.
Multibagger stock 2023: IDFC First Bank shares may become highly bullish after giving breakout above ₹70 on closing basis, say experts. Multibagger stocks for 2023: IDFC First Bank shares are one of those banking stocks on Dalal Street that have delivered whopping return to its shareholders in last six months.
Read the stock fundamentals: To select stocks for the long term, you must learn to read their key business ratio and financial statements. For example, you must look at the PE ratio. It tells how many times the company's earnings are investors ready to pay for one share.
Here are a few things to consider: If you're looking for a long-term investment, real estate may be the better option. There are no guarantees, but real estate tends to appreciate in value over time. If you're looking for a more passive investment, stocks may be the way to go.
For the rest of 2023, investors should consider some safe stock winners like Walmart (NYSE:WMT), Home Depot (NYSE:HD) and O'Reilly Automotive (NASDAQ:ORLY). Today, these stocks still have substantial competitive advantages and unique business characteristics likely to support outperformance in this cycle.
High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.
How many different stocks should you own? The average diversified portfolio holds between 20 and 30 stocks. The Motley Fool's position is that investors should own at least 25 different stocks.
To correctly arrive at your net capital gain or loss, capital gains and losses are classified as long-term or short-term. Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.
When To Sell And Take A Loss. According to IBD founder William O'Neil's rule in "How to Make Money in Stocks," you should sell a stock when you are down 7% or 8% from your purchase price, no exceptions.
If you held the shares for a year or less, you'll be taxed at your ordinary tax rate. You may be able to reduce your taxes on stocks by holding investments in a tax-advantaged account, holding them for more than a year, and using losses to offset gains.
Briefly, in order to be eligible for payment of stock dividends, you must buy the stock (or already own it) at least two days before the date of record and still own the shares at the close of trading one business day before the ex-date.
Money was made—but not as much as if shares were sold the previous year. That's why stocks are always risky investments, even over the long-term. They don't get safer the longer you hold them.
It is much obvious that the IDFC FIRST BANK share price target for 2025 indicates a steady growth trend with the maximum target price of ₹175.29 and a minimum target price of ₹101.72. The average target price for the year is around ₹150, which is significantly higher than the previous year.
quote is equal to 81.680 INR at 2023-06-18. Based on our forecasts, a long-term increase is expected, the "Idfc Bank Ltd" stock price prognosis for 2028-06-09 is 110.259 INR. With a 5-year investment, the revenue is expected to be around +34.99%. Your current $100 investment may be up to $134.99 in 2028.
As on 16 Jun, 2023, 03:59 PM IST IDFC First Bank share price was up by 3.42% basis the previous closing price of Rs 76.75. IDFC First Bank share price was Rs 81.70. Return Performance of IDFC First Bank Shares: 1 Week: IDFC First Bank share price moved up by 13.95%
IDFC First Bank shares have been in uptrend after announcement of fourth quarter results ahead of ushering in May 2023. After announcement of IDFC First Bank results, share price of the private lender has surged from around ₹61.50 to ₹70.80 apiece levels, logging around 15 per cent in less than one month time.
The intrinsic value of one IDFCFIRSTB stock under the Base Case scenario is 86.05 INR. Compared to the current market price of 81.9 INR, IDFC First Bank Ltd is Undervalued by 5%.
Multibagger stock 2023: IDFC First Bank shares may become highly bullish after giving breakout above ₹70 on closing basis, say experts. Multibagger stocks for 2023: IDFC First Bank shares are one of those banking stocks on Dalal Street that have delivered whopping return to its shareholders in last six months.
Strong capitalisation profile – IDFC FIRST's capitalisation ratios remained strong with the CET I/Tier I and CRAR at 14.20% and 16.82%, respectively, as on March 31, 2023 (14.88% and 16.74%, respectively, as on March 31, 2022).
Net Interest Margin (NIM%): NIM% (quarterly annualized) of the Bank was at 5.98% for Q2- FY23 compared to 5.83% in Q2-FY22 and 5.89% in Q1-FY23. Fee and Other Income increased strongly by 44% YoY to Rs. 945 crore in Q2-FY23 from Rs. 658 crore in Q2-FY22.
Introduction: My name is Msgr. Refugio Daniel, I am a fine, precious, encouraging, calm, glamorous, vivacious, friendly person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
