In an interview with Economic Times today, Sunil Bharti Mittal has clearly alluded to the fact that balance sheet challenges are behind them, pricing power seems to be coming back and the company is gearing up for 5G auction. Could Bharti be the next one now?
<\/strong>Bharti has done well over the last few months after they started gaining market share in the telecom market where they started adding more subscribers than Jio and their performance on the ARPUs also has been better. Strategically, the company is on the right path and most times they will tend to outperform the analyst expectations. The virtuous cycle seems to have started for Bharti. There are very few companies which stand as companies which could have some valuation comfort in the market today and Bharti is one of them.
The valuations of a large majority of large companies have gone way below fair value but I would think that Bharti is still at a space where if you look at how they have performed and relative to what they could do over the next two-three years, I believe they are still very helpless. They are still deleveraging opportunities and as that plays out, we will see a greater impact on profitability as that gets repriced at lower levels.
Last week saw a huge participation from some of the beaten down PSU<\/a> stocks like NFL, fertiliser stocks. What is your view on the small fertiliser and small PSU<\/a> stocks?
<\/strong>We tend to avoid these stocks typically. They rise at the end of the cycle and it is very tough to evaluate all of them. If people have made money in some larger companies or have not participated and feel that those companies can go up, then they want to take a bet. That phenomenon is picking up now. I do not think there is any great story in any of these sectors.
Given the cues that are coming out post earning season and particularly in some of the larger banks and IT names has been fairly encouraging. Would you agree?
<\/strong>The results have been pretty encouraging and have outperformed expectations, largely beaten by the margin improvements due to cost controls and low input prices and in some cases, a stronger revival in demand. The stronger revival in demand story is lesser, the margin expansion is greater due to either pricing power on the top line side for money of the commodity companies or strong parts in input cost or cost control on the rest of the companies.
The key is the sustainability of this because the commodity inflation is reaching unprecedented proportions. Oil prices are up 75%. A lot of the impact is yet to be passed onto the retail markets in India where petrol and diesel prices on an average get priced according to the last 15 days’ average. In last 15 days itself, crude oil prices are up 15%. The frenzy on asset price inflation is now reaching a significant proportion which will still impact margins going forward. I see a revival in economic activity and top line growth could improve going forward, but margins could be squeezed and that could slowdown the pace of overall market movement.
What is your view on Tata Motors<\/a>, in the light of the recent run up in the stock price and with the new CEO who has an extensive background in the CV space?
<\/strong>Tata Motors<\/a> obviously has had a run up with the expectation that the JLR sales will recover and there will be faster than expected recovery in the CV cycle especially in India. The key going forward will be 90% of the rally comes from JLR itself. The key is how that segment of the business does and how their electrical vehicle venture pans out because that is going to be the growth driver three to five years down the line.
I would think that a large part of the near-term positives are in the price, driven by significant outperformance in earnings in the last quarter. From here on, for the company to perform, they have to show one sustainable margin performance. Secondly, sustainable reduction in debt has been promised by the management and those are the things investors will need to watch going forward. In the near term, given the sharp runup, most near-term positives are already factored in.
Tata Motors CV cycle is picking up. Could Tata Motors be one of those stocks where in the near term 5-10% here or there could happen?
<\/strong>The way it is panning out, it seems they could do well over the long run but the domestic market can never be the focus for Tata Motors because most of the cash flow generation and the value in the company will come from their overseas operations. The domestic passenger vehicle business has suddenly picked up. It is doing well. But it is a miniscule part of the overall value in the company. If they focus here, it will be good for profitability.
The main story will be overseas JLR debt reduction and margin sustenance. It could do very well over the long run and the chairman of the group actually said last year that we are looking to make Tata Motors debt free over the next five years. At that time, I considered it a virtually impossible task. But if they do it, then the Tata Motors stock could go anywhere and I would still think that if they could achieve the debt-free status over the next three to five years, then Tata Motors stock could rise significantly from the current levels also.
Which are the pharma names that are looking attractive given earnings, commentary and outlook in some cases?
<\/strong>On the largecap side, I like Sun Pharma<\/a> because strategically that company is turning around now. It is doing much better than what most people were expecting. They are cutting down their debt and on valuation, it trades at a significant discount to other largecap or midcap pharma names.
I believe that on pure valuation parameters and looking at what the earnings growth could be, Sun Pharma<\/a> should do well. We bought it last month and after a very long period of time.
On the midcap side -- though we cannot call it midcap any longer -- Divi’s continues to surprise on the upside. They are continuously doing well and the growth is strong. Their outlook also is strong although near term, input cost pressure could put some impact on the margins. Longer term, that could do well but right now, the valuation looks a bit stretched.
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Bharti Airtel还是去杠杆化机会,戏剧,我们将看到一个更大的对盈利能力的影响,得到重新定价较低的水平,说的Sandip人力分析师,asksandipsabharwal.com。
在今天的经济时报》采访时,苏尼尔•巴帝•米塔尔已经明显提到资产负债表的挑战这一事实背后,定价权似乎回来,公司准备5 g拍卖。Bharti可能是下一个吗?
Bharti已经做得很好过去几个月后,他们开始在电信市场,获得市场份额,他们开始添加更多的用户比arpu Jio及其性能也更好。战略,公司在正确的道路,大多数时候他们会比分析师的预期。Bharti的良性循环似乎已经开始。很少有公司作为公司可能有一些市场估值安慰今天和Bharti就是其中之一。
大多数大公司的估值已经远低于公允价值但我认为Bharti仍在一个空间,如果你看看他们如何表现,相对于他们能做什么在未来2 - 3年了,我相信他们仍然非常无助。他们仍然去杠杆化机会,戏剧,我们将看到一个更大的对盈利能力的影响,得到重新定价较低的水平。
上周看到一个巨大的参与的打压事业单位股市像NFL,化肥的股票。你的观点是什么在小化肥和小吗事业单位股票?
我们倾向于避免这些股票一般。他们上升的周期和评估是非常艰难的。如果人赚了钱在一些大公司或没有参加了,觉得那些公司可以上升,然后他们想要赌。这一现象正在上升。我不认为有任何伟大的故事在这些领域。
给出的线索出来后获得季节,尤其是在一些大型的银行,它的名字已经相当令人鼓舞。你会同意吗?
结果很令人鼓舞,超过预期,在很大程度上被改进幅度由于成本控制和低输入价格和在某些情况下,强势复苏的需求。需求较强的复兴故事较小,扩张幅度更大是由于要么定价权在顶线端为钱输入商品公司或强大的零部件的成本或成本控制的其他公司。
关键是可持续性的,因为大宗商品价格通胀达到前所未有的地步。石油价格上涨了75%。很多的影响还没有被传递到印度的零售市场,汽油和柴油价格平均得到定价根据过去15天的平均水平。在过去15天,原油价格上涨了15%。资产价格通胀的疯狂现在达到很大一部分仍然会影响利润。我看到复苏的经济活动和顶线增长可以提高,但利润被挤压,可以整体市场运动的速度放缓。
你的看法是什么塔塔汽车(Tata Motors),根据最近的股票价格和新CEO的简历有一个广泛的背景空间?
塔塔汽车(Tata Motors)显然已经运行了期望捷豹路虎的销售会恢复,将有比预期更快复苏简历循环特别是在印度。的关键将是90%的反弹来自捷豹路虎本身。关键是这部分业务如何和他们的电子汽车合资企业取得成功,因为是增长驱动三到五年。
我认为近期的很大一部分积极的价格,由第四季度收益的重要表现。从现在起,为公司执行,他们必须显示一个可持续的优势性能。其次,可持续减少债务已经承诺的管理,这些都是投资者需要关注的事情。在短期内,考虑到锋利的迅速增大,最近期的阳性已经计入。
塔塔汽车(Tata Motors)简历周期正在加速。塔塔汽车(Tata Motors)可以短期内股市在5 - 10%或有可能发生吗?
是平移的方式,似乎从长远来看他们能做的很好,但国内市场永远是塔塔汽车的关注,因为大多数的现金流生成和公司的价值将来自他们的海外业务。国内乘用车业务突然拿起。它做得很好。但这是一个小公司的整体价值的一部分。如果他们的重点,它将有利于盈利能力。
主要故事将海外JLR削减债务和食粮。它从长远来看能做的很好,集团主席实际上去年表示,我们希望让塔塔汽车公司在未来五年内还清债务。那时,我认为这是一个几乎不可能完成的任务。但是如果他们这样做,塔塔汽车公司股票可以去任何地方,我仍然会认为,如果他们能够实现无债一身轻的地位在未来三到五年,然后塔塔汽车(Tata Motors)股票也可以从目前的水平大幅上升。
是制药公司的名字是有吸引力的收益,在某些情况下评论和前景?
在largecap方面,我喜欢太阳制药因为战略,公司现在转身。这是做的比大多数人所期望的更好。他们削减债务和估价,交易大幅低于其他largecap或中型股制药公司的名字。
我相信纯估值参数和看着盈利增长的可能,太阳制药应该做的很好。我们上个月买了之后很长一段时间。
在中型股方面,虽然我们不能再称之为中型股——红利的令人惊讶的增长仍在继续。他们不断做和增长强劲。他们的前景也强不过短期内,投入成本压力会把一些对利润率的影响。长远来看,可以做得很好但现在,估值看起来有点紧张。
在今天的经济时报》采访时,苏尼尔•巴帝•米塔尔已经明显提到资产负债表的挑战这一事实背后,定价权似乎回来,公司准备5 g拍卖。Bharti可能是下一个吗?
Bharti已经做得很好过去几个月后,他们开始在电信市场,获得市场份额,他们开始添加更多的用户比arpu Jio及其性能也更好。战略,公司在正确的道路,大多数时候他们会比分析师的预期。Bharti的良性循环似乎已经开始。很少有公司作为公司可能有一些市场估值安慰今天和Bharti就是其中之一。
大多数大公司的估值已经远低于公允价值但我认为Bharti仍在一个空间,如果你看看他们如何表现,相对于他们能做什么在未来2 - 3年了,我相信他们仍然非常无助。他们仍然去杠杆化机会,戏剧,我们将看到一个更大的对盈利能力的影响,得到重新定价较低的水平。
上周看到一个巨大的参与的打压事业单位股市像NFL,化肥的股票。你的观点是什么在小化肥和小吗事业单位股票?
我们倾向于避免这些股票一般。他们上升的周期和评估是非常艰难的。如果人赚了钱在一些大公司或没有参加了,觉得那些公司可以上升,然后他们想要赌。这一现象正在上升。我不认为有任何伟大的故事在这些领域。
给出的线索出来后获得季节,尤其是在一些大型的银行,它的名字已经相当令人鼓舞。你会同意吗?
结果很令人鼓舞,超过预期,在很大程度上被改进幅度由于成本控制和低输入价格和在某些情况下,强势复苏的需求。需求较强的复兴故事较小,扩张幅度更大是由于要么定价权在顶线端为钱输入商品公司或强大的零部件的成本或成本控制的其他公司。
关键是可持续性的,因为大宗商品价格通胀达到前所未有的地步。石油价格上涨了75%。很多的影响还没有被传递到印度的零售市场,汽油和柴油价格平均得到定价根据过去15天的平均水平。在过去15天,原油价格上涨了15%。资产价格通胀的疯狂现在达到很大一部分仍然会影响利润。我看到复苏的经济活动和顶线增长可以提高,但利润被挤压,可以整体市场运动的速度放缓。
你的看法是什么塔塔汽车(Tata Motors),根据最近的股票价格和新CEO的简历有一个广泛的背景空间?
塔塔汽车(Tata Motors)显然已经运行了期望捷豹路虎的销售会恢复,将有比预期更快复苏简历循环特别是在印度。的关键将是90%的反弹来自捷豹路虎本身。关键是这部分业务如何和他们的电子汽车合资企业取得成功,因为是增长驱动三到五年。
我认为近期的很大一部分积极的价格,由第四季度收益的重要表现。从现在起,为公司执行,他们必须显示一个可持续的优势性能。其次,可持续减少债务已经承诺的管理,这些都是投资者需要关注的事情。在短期内,考虑到锋利的迅速增大,最近期的阳性已经计入。
塔塔汽车(Tata Motors)简历周期正在加速。塔塔汽车(Tata Motors)可以短期内股市在5 - 10%或有可能发生吗?
是平移的方式,似乎从长远来看他们能做的很好,但国内市场永远是塔塔汽车的关注,因为大多数的现金流生成和公司的价值将来自他们的海外业务。国内乘用车业务突然拿起。它做得很好。但这是一个小公司的整体价值的一部分。如果他们的重点,它将有利于盈利能力。
主要故事将海外JLR削减债务和食粮。它从长远来看能做的很好,集团主席实际上去年表示,我们希望让塔塔汽车公司在未来五年内还清债务。那时,我认为这是一个几乎不可能完成的任务。但是如果他们这样做,塔塔汽车公司股票可以去任何地方,我仍然会认为,如果他们能够实现无债一身轻的地位在未来三到五年,然后塔塔汽车(Tata Motors)股票也可以从目前的水平大幅上升。
是制药公司的名字是有吸引力的收益,在某些情况下评论和前景?
在largecap方面,我喜欢太阳制药因为战略,公司现在转身。这是做的比大多数人所期望的更好。他们削减债务和估价,交易大幅低于其他largecap或中型股制药公司的名字。
我相信纯估值参数和看着盈利增长的可能,太阳制药应该做的很好。我们上个月买了之后很长一段时间。
在中型股方面,虽然我们不能再称之为中型股——红利的令人惊讶的增长仍在继续。他们不断做和增长强劲。他们的前景也强不过短期内,投入成本压力会把一些对利润率的影响。长远来看,可以做得很好但现在,估值看起来有点紧张。
