INSUBCONTINENT EXCLUSIVE:
Fund managers opted for safety and predictability in their stock pickings in March when the Sensex and Nifty dropped 23%
They bought shares of companies with relatively low beta, fairly good dividend yield, good market share in their business and strong backing
of the government, which lowers the probability of default on payments
Their top stock picks were public sector undertakings (PSU companies) which offer reasonably good dividend yield, have high market share in
their line of business and stability of earnings due to their favourable business models
In the private sector, they bought shares of companies with dominant market share
Here is the lowdown on five companies which managers of leading fund houses bought in March this year.
Coal IndiaCMP: Rs 145
Market cap: Rs
90,566 crore
Bought by: HDFC MF
A few fundamental factors make Coal India one of the most interesting ideas in the current extremely
volatile phase of markets
Coal India has net cash balance of close to Rs 29,500 crore as of FY20
It has dividend yield of 9.34%
It is the largest coal producer in India with 11 direct and indirect subsidiaries
It caters to power plants, which form over 70% of offtake of its inventory
Besides this, the company caters to sectors such as steel, cement, and fertiliser, among others
Once construction activities start and execution of capital expenditure of India Inc gains pace, Coal India is likely to benefit
meaningfully.
NTPCCMP: Rs 88.6
Market cap: Rs 87,715 crore
Bought by: Franklin Templeton
Assured return on equity business model, high
dividend yield of 6.98% and the acquisition of THDC India (formerly Tehri Hydro Development Corporation) and North Eastern Electric Power
NTPC, which is mainly into thermal power, will add 2,500 megawatts of operating hydropower plants through the aforementioned acquisitions
305
Market cap: Rs 28,158 crore
Bought by: ICICI PrudentialThere are a few key reasons for buying into the shares of Tata Consumer Products
It provided a good entry point for fund managers
Second, the company, which is into key essential products such as tea, coffee, salt and lentils, was not expected to fall as severely as
companies which do not manufacture essential products
This aspect of defensive theme with a sharp focus on essential products provides it an edge among its peers in the industry
Lastly, the parentage of the Tata Group offers stability to its balance sheet in uncertain times.
ITCCMP: Rs 182
Market cap: Rs 2.23 lakh
crore
Bought by: SBI MF
A diversified business model, attractive valuations compared to its own historic averages and high dividend yield
are attracting investors to this stock
Investors have been impressed with its strong operating cash flows, continuous capacity expansions across businesses and a healthy balance
The company has declared its dividend policy last month, increasing its payout to 80-85% of earnings, which makes its dividend yield
attractive, one of the highest a frontline company pays, giving huge margin of safety.
SBICMP: Rs 184
Market cap: Rs 1.64 lakh crore
Bought
by: HDFC MF
A public sector banking giant, it has maintained its share of current and savings bank accounts in the market, despite the entry
and aggressive marketing campaign of private sector banks, which is attracting long-term investors to the bank
It is the market leader in retail assets like mortgage and auto loans with its assets being of high quality, while its corporate NPAs are
All its subsidiaries like SBI AMC, life insurance, general insurance and SBI Cards are leaders in their business and have added value to the
bank.
Top money making ideas13 Apr, 2020Investors struggled to find right bets as the market direction remained hazy amid rise in
coronavirus cases in the country
Talks of an extended lockdown also pushed the bulls on the back foot after stellar rally last week.In just three sessions last week, Sensex
and Nifty, snapped a seven-week losing streak and rose 10 per cent each.While many believe the bottom has been formed, the market may also
take cues from the number of new coronavirus infections and the quarterly corporate earnings season.In this backdrop, here are 12
money-making ideas that may deliver gains over the next few weeks
?ACC| Buy | Target price Rs 1,095 | Stop loss Rs 91813 Apr, 2020The counter is attractively placed with two positive closes on weekly charts
and appears to be on the path of consolidation after hitting a bottom at recent low of Rs 895, the analyst said
He believes that sooner than later the stock should witness a breakout above the congestion zone of last eight sessions present in Rs
Technologies | Buy | Target price Rs 87 | Stop loss Rs 6213 Apr, 2020According to the analyst, the weekly chart of this counter is looking
very promising as three preceding weekly candles turned into extremely narrower trading range hinting that selling pressure is drying up
With decent basing formation for last 17 sessions this counter appears to be ripe for a breakout, he said, recommending positional traders
Chartviewindia.in] ?Apollo Tyres | Buy | Target price Rs 107 | Stop loss Rs 8313 Apr, 2020According to the analyst, after two weeks of Doji
kind of indecisive formations on weekly charts this counter registered a robust bull candle, hinting that it has embarked on a short-term
uptrend, which is clearly visible with higher top and higher bottom type of bullish sequence on daily charts
Moreover, it has decisively closed above its 9-day EMA, which was acting as resistance on pull back attempts, he said
The experts recommended positional traders to buy into this counter with a target of Rs 107 with a stop below Rs 83 on closing basis.[Mazhar
loss Rs 4,40013 Apr, 2020The stock seems to have completed Wave B retracement and now it has provided a breakout from the downtrend line
With a breakout from the downtrend line resistance Wave C up seems to have started and the minimum target on the upside comes to Rs 5800,
The daily as well as hourly momentum indicator MACD is well in the buy mode with a positive divergence, he said, adding that he recommends
buying the stock for a target of Rs 5,800 with a stop loss of Rs 4,400.[Jay Thakkar, Vice President and Head of Equity Research, Marwadi
