Street may be ignoring TCS headwinds as the stock's peak valuation doesn't seem justified by BFSI weakness, likely higher US tax rates and stronger rupee, reports Ram Prasad Sahu. The market capitalisation of Tata Consultancy Services is close to Rs 6 trillion, the company's stock gaining 46 per cent over its 52-week low of February last year. Half the gains have come over the past month, a large part after the December quarter results. The sharp rise means the stock is trading at an expensive valuation of 20 times its estimated FY20 earning. The near-peak valuation is also a 10 to 14 per cent premium to the target prices of brokerages.On the other hand, the fundamentals are not so supportive. Analysts at Kotak Institutional Equities say the stock is trading at this level even after recognition of a potential cyclical uptick. The stock has already reached the peak cycle multiple, implying annual growth of about 12 per cent for the next seven or eight years. While the Street's … [Read more...] about Is TCS moving too fast, too soon?
FMCG CEOs indicate that the market should stabilise post the general elections and that some growth should make its way back especially in rural areas. India’s fast-moving consumer goods (FMCG) market is seeing its worst slowdown in two years. March quarter (Q4) numbers of listed players such as Hindustan Unilever (HUL), Dabur India, Godrej Consumer and Britannia, released over the past one week, point towards the same. HUL saw its lowest volume growth in six quarters for the period under review. Britannia posted a soft quarter with volume growth at 7 per cent only. Dabur and Godrej also felt the slowdown, with net profit falling by 6.5 per cent and profit before tax declining 32 per cent, respectively, from a year earlier.While research agency Nielsen has lowered its growth forecast for the 2019 calendar year by 200 basis points, FMCG CEOs indicate that the market should stabilise post the general elections and that some growth should make its way back especially in rural areas, … [Read more...] about Slowdown in FMCG likely to ease post elections
NEW DELHI: With the BJP facing alliance trouble in Jharkhand ahead of assembly polls, the JMM-led opposition coalition's chief ministerial candidate Hemant Soren said on Sunday the allies of the saffron party are deserting the "sinking ship" as they know which way the wind is blowing. Soren, a former chief minister and the working president of Jharkhand Mukti Morcha (JMM), accused the BJP of raising emotive issues such as nationalism to divert attention from their "misrule", and asserted that the elections will be fought on state issues such as land acquisition and unemployment. "This is not Lok Sabha election, this is a state election. Central issues dominate in Lok Sabha polls which have happened and for which the mandate has been given. Now, state elections will be fought on issues of the states." he told in an interview. "We can't talk of the Chotanagpur Tenancy and the Santhal Pargana Tenancy Acts in Jammu and Kashmir or in Gujarat. We can't talk of forest rights elsewhere. So … [Read more...] about BJP allies deserting the ‘sinking ship’ in Jharkhand: Hemant Soren
NEW DELHI: It was a week of dubious records, with some worst quarterly numbers for India Inc coming out in the same week. Vodafone Idea, Bharti Airtel and Reliance Communications racked in cumulative losses of over Rs 1 lakh crore for September quarter. Fears of a slowing economy escalated after data showed that wholesale inflation further slumped, suggesting lack of demand and pricing power. Finance Minister Nirmala Sitharaman added to concerns when she ruled out any quick rebound in the economy. Amid concerns over growth slowdown and hopes of another rate cut by the Reserve Bank of India in December review, Dalal Street ended near flat for the week. To help investors navigate this uncertain phase, top D-Street mavens doled out advice on Twitter. Here’s sampling some of them: Market expert Sandip Sabharwal believed that telcos’ pain may just be the beginning: At this stage the Telecom companies have just provided for the AGR dues i..e Bharti Airtel & … [Read more...] about Tweet Buster: Have optimism, will make money in this market; good & bad stocks
It would seem that Indrani's application was not something prepared or maybe even sanctioned by her lawyers and was a courtroom enterprise she had embarked on by herself, perhaps not realising it distracted from the main business of the trial and didn't help her cause.Rediff.com Thursday, November 23, was Round II of the Indrani versus Peter exhibition boxing match, which is now a freak side show to the Sheena Bora murder trial. Undoubtedly not something their lawyers, particularly hers, would have wanted. Peter Mukerjea filed his dignified reply, through his lawyers, to his wife's startling application of last week, November 15, that suggested his BPL Mobile cell data records should be called for and indirectly accused Peter and associates of having had something to do with the disappearance of Sheena, Indrani's daughter from her first marriage. This was filed in court. Indrani knew Thursday she would be the cynosure of all eyes. She dressed for the part. Wearing a short, white, … [Read more...] about Sheena Bora trial: Peter responds to Indrani’s charges