The brokerage expects the bank to deliver FY21E RoA/RoE (return on assets/return on equity) of 1.6 per cent/13.7 per cent.
The brokerage remains structurally negative on the company despite factoring in a bull case scenario.
The company believes it has sufficient cash to meet interest and operating cost obligations for the next 4-5 months.
The company disclosed that it has Rs 40 billion in liquid investments and another Rs 15 billion in sanctioned and undrawn lines.
ACC enjoys better than industry average return ratios ( around 12 per cent post tax) as well.
The brokerage says the real estate company with its strong execution track record, healthy balance sheet (net debt of Rs 11 billion as of December 2019) and counter-cyclical business development strategy would emerge stronger over the medium-term.
The sudden rise in share buyback offers this time has more to do with the market fall.
I think a lot about what money is worth and believe that it has no intrinsic value, says Dalio.
The stock currently trades at Rs 1,158, 28 per cent away from its 52-week high.
Select names from the pack may even outperform the broader market in the short term.
Travel bans globally and domestically have virtually paralysed the capital-intensive sector.
“The market is working like it was before the lockdown, and so am I,” says he.
In fact, these stocks have scaled their new highs amid the carnage.
I would focus on non-discretionary and essentials, says Portfolio Manager at Ashmore Investment.
The months ahead may turn out to be even more painful, warn analysts.
Continued weakness in rural/semi-urban markets post Covid-19 will impact overall growth prospects of the company.
The brokerage has lowered the company’s FY20/21E EPS to factor in low generation and a fall in incentive income amid falling demand.
Factoring in the Covid-19 led pressure on earnings, the brokerage values the stock at 21 times its FY22E EPS.
The brokerage cut the FY21-22 EPS estimates by 8-11 per cent to factor in lower growth and higher credit costs.
The analyst suggested a stoploss at Rs 390 .
The analyst suggested a stoploss at Rs 145 .
The analyst suggested a stoploss at Rs 475 .
The analyst suggested a stoploss at Rs 297 .
Following a sharp decline, Sobha’s stock trades at favourable risk-reward, the brokerage said.
The brokerage expects overall loan growth over FY21 to be affected due to the lockdown. Also, the appointment of a new CEO is a huge event.
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