Listen: PSU stocks are going to be reassessed as bargain hunters are out in force


Hi hello. Welcome to ETMarkets Morning, the money, business and markets show. I am Nikhil Agarwal. Let’s start with the headlines first.

– FMCG sales expected to increase double digits in Q2
– The economy emerges from the shadow of the Covid: RBI paper
– Maharashtra government loosens sidewalks and allows schools to reopen
– Global tax deal to hurt Indians who transferred trusts to UAE

Now let me give you a quick overview of the state of the markets.

Dalal Street is expected to have a positive start this morning. The crafty futures on the Singapore Stock Exchange traded 80 points higher at 8:30 am (IST). Major Asian stocks opened higher on Tuesday after Wall Street ended mostly higher and investors waited for corporate earnings. The largest MSCI index of Asia-Pacific equities excluding Japan rose 0.48%.

Elsewhere, the yield on 10-year Treasuries slipped three basis points to 1.57%. The dollar was languishing near the bottom of its recent range against its major peers on Tuesday, knocked down by weak overnight U.S. factory data and market bets on faster normalization of monetary policy in other countries. Bitcoin was trading around $ 62,000. Oil prices fell on Tuesday as Brent fell for a second day in a row, after Chinese data showed slowing economic growth and output at U.S. factories plunged in September, prompting further concerns about demand in a context of uneven recovery of the coronavirus pandemic. Brent crude fell 43 cents, or 0.5%, to $ 83.90 a barrel after falling 0.6% on Monday.

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That said, here’s what’s in the news.

PSU shares are heading for a revaluation as a cohort – and in a heart-wrenching haste – after gaining Rs 5.6 lakh crore in market cap this year, up 52%. This compares to a 32% increase in Nifty. And most of the stellar gains have come recently. Public listed companies excluding banks have gained almost Rs 2 lakh crore in market capitalization over the past month. Yet despite a strong recovery, many PSUs are still undervalued relative to their private sector counterparts, providing great value.

UltraTech will increase cement prices over the next several months as the cost of production increases along with the rise in fuel prices. A key parameter on which the company has achieved good results is cost management. Thanks to its low interest charges, income has not declined. Its net profit rose a meager 0.3% year-on-year to Rs 1,314 crore in the quarter. On the valuation side, given its one-year term profits, the UltraTech Cement share trades at an EV / EBIDTA of 16.4. This figure is slightly higher than its average for the past three years of 15.9. This may increase given its size, scale and capital expenditure.

The Securities and Exchange Board of India (Sebi) has approved the initial public offering (IPO) plans of PB Fintech, the parent company of online marketplaces Policybazaar and Paisabazaar, ET reported. He envisions a valuation of around $ 6 billion to $ 7 billion for listing, the report said, adding that PB Fintech may consider listing around Diwali. According to its filing plan, the company plans to use the proceeds of the IPO to improve visibility and brand awareness and expand its user base.

RECENTLY,

Passenger vehicle manufacturers could lose 250,000 to 450,000 units of sales, causing annual volumes to decline in this calendar year, with semiconductor shortages severely disrupting production by major manufacturers in recent months. The loss of production, depending on the supply situation, is expected to reduce wholesale volumes to 2.9-3.1 million units in 2021, from around 3.34 million units initially estimated by the company. Jato Dynamics automotive consulting firm.

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NOW Before you go, here’s a look at the actions buzzing this morning …

Infrastructure firm Larsen & Toubro Limited appeared on Monday as the
lowest bidder for the construction and maintenance of the first three buildings of the Joint Central Secretariat as part of the Central Vista redevelopment project.

Bharti Telecom (BTL), a holding company of Bharti Airtel promoters, is raising around Rs 1,400 crore via corporate bonds in local money markets to help it participate primarily in the ongoing rights issue of Rs 21 000 crore from the phone company, and also refinance some of the high cost debt. .

Embassy Office Parks REIT raised a debt of Rs 4,600 crore at an interest rate of 6.5% against the security of its assets in Embassy Manyata Business Parks to repay its existing debt. This move reduces the costs of borrowed funds by 260 basis points.

Sunteck Realty has acquired a 110-acre riverside plot of land at Pen-Khopoli Road near Mumbai as part of a joint development project to manufacture custom bungalows and detached houses.

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Also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.

That’s all for the moment. Stay with us for all the market news throughout the day. Good investment!

About Nicole Harmon

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