moneycontrol India Stock of the Day (October 2023)
moneycontrol India Stock of the Day (October 2023)
Nestle India, Syngene International, PVR Inox, Aavas Financiers, ICICI Bank, Polycab India, Computer Age Management Services, Kotak Mahindra Bank, Cera Sanitaryware, Sirca Paints, etc.
moneycontrol is India's leading financial and business portal who does short (roughly 4 minute) Stock of the Day video pitches about Indian stock picks.
Indian stocks featured in their October Stock of the Day videos (from newest to oldest) and covered in this post include:
Nestle India; Syngene International; PVR Inox; Aavas Financiers; ICICI Bank; Polycab India; Avenue Supermarts Ltd aka D-Mart; Syrma SGS Technology; NCC Limited; Ruchira Papers; Computer Age Management Services Ltd; Kotak Mahindra Bank; Dhanuka Agritech; Cera Sanitaryware; Vesuvius India Ltd; Central Depository Services (India) Ltd; Cyient; Apcotex Industries; & Sirca Paints
While updating the Emerging Market ETF Closures/Liquidations section for the upcoming Monday post, I noticed this:
10/20/2023 - WisdomTree India ex-State-Owned Enterprises Fund - IXSE
Its not their only fund being liquidated:
No specifics were given in the press release and I am not seeing any news articles giving additional reasons.
Giving investors a product option to avoid state-owned enterprises does make sense. And the fund has arguably given investors a decent performance with the potential for more upside as international fund money flows out of China and into India:
My best guess is that the funds did not attract “enough” investor money; but Yahoo! Finance gives the net assets for the five funds as ranging from $2-23M with IXSE having net assets of $6.75M (although I am not sure how old these figures are).
A November 6th Reuters article (Inflows into India-linked ETFs set to smash 2014 record), which included a quote about India from the head of equity strategy at WisdomTree Asset Management, also mentioned this:
Among the U.S.-listed India ETFs, the iShares MSCI India Small-Cap ETF, with net assets of $468.39 million according to Lipper data, has outperformed so far this year, up 22.6%.
Meanwhile, net inflows this year have been dominated by the $1.37 billion WisdomTree India Earnings ETF and the $5.89 billion iShares MSCI India ETF.
My best guess is that $6.75M in assets was not enough for the fund manager to want to keep the ETF open - a common problem for investors in more niche ETFs.
Getting back to moneycontrol India Stock of the Day for October and to make your life easier, this post includes:
A quick description of the stock pick with links to the IR page and stock quote(s) on Yahoo! Finance.
A link to any Wikipedia page (for what it might be worth…)
The title of the moneycontrol Stock of the Day and their summary of what makes the stock pick interesting.
The embedded video (again, they are usually 4 minutes long).
Forward or trailing P/E and dividend yields linked back to the Yahoo! Finance statistics page.
The latest long term technical chart linked back to Yahoo! Finance.
And as always, this post is provided for informational purposes only (and to make your life easier by providing you with relevant information, links, and charts). It does not constitute investment advice and/or a recommendation…
Nestle India
Nestle India Ltd (NSE: NESTLEIND / BOM: 500790) is the Indian subsidiary of Nestlé SA (SWX: NESN / OTCMKTS: NSRGF) which is a Swiss multinational company. The Company has a presence across India with 8 manufacturing facilities and 4 branch offices.
Nestle India: Focus on distribution expansion in rural and semi urban markets | Stock Of The Day
Nestle India is play on packaged foods business. Management continues to focus on volume growth. Nestle has lower penetration in semi-urban and rural markets but it has started to focus on the same and is growing at a decent pace. Nestle stands better on cost-efficiency. In-house manufacturing and factories near to the consumption centres has helped. Nestle has the option to explore some of the categories which it can introduce in Indian markets at the appropriate time, given that its parent operates in seven categories while Nestle operates in 5 categories.
Trailing P/E: 78.33 (no forward P/E) / Forward Annual Dividend Yield: 2.32% (Yahoo! Finance)
Syngene International
Syngene International (NSE: SYNGENE / BOM: 539268) is an integrated research, development and manufacturing organisation providing scientific services – from early discovery to commercial supply. They offer services across wide range of sectors including pharmaceutical, nutrition, animal health, consumer goods and speciality chemical companies.
Their long-term collaborations ensures predictable and stable cash flows. Their strong balance sheet and financial performance has helped them in reassuring clients that they will be able to support their investments in terms of both capabilities and capacities.
Syngene International is a publicly listed subsidiary of Biocon (NSE: BIOCON / BOM: 532523) who manufactures generic active pharmaceutical ingredients (APIs) that are sold in approximately 120 countries, including the United States and Europe. It also manufactures novel biologics as well as biosimilar insulins and antibodies, which are sold in India as branded formulations.
Wikipedia (Biocon Limited)
Zoetis Contract Uplifts Revenue Profile | Stock Of The Day | Moneycontrol
Syngene, subsidiary of Biocon, is the leading CRAMS (Contract research and manufacturing services) player of India. Its research and manufacturing facilities are located at Bangalore, Hyderabad and Mangalore. Company gets bulk of the revenue from the USA and Europe and runs dedicated R&D centres for Amgen, Baxter and BMS. In recent years, it has forayed into commercial manufacturing apart from the CRO (Contract Research Organization) services.
Trailing P/E: 60.27 (no forward P/E) / Forward Annual Dividend Yield: 0.07% (Yahoo! Finance)
PVR Inox
PVR Inox (NSE: PVRINOX / BOM: 532689) is the market leader in terms of screen count in India. Since 1997, the brand has redefined the cinema industry and the way people watch movies in the country. The Company has, over the years, consistently added screens, both organically and inorganically, through strategic investments and acquisitions which includes ‘Cinemax Cinemas’ in November 2012, ‘DT Cinemas’ in May 2016, ‘SPI Cinemas’ in August 2018. They recently completed the merger with INOX Leisure Limited, which has added to their storied history of becoming game changers in the film exhibition industry for over 25 years and transforming the out of home entertainment in the country.
Solid content line up to drive the performance in FY24 | Stock Of The Day | PVR Inox
PVR Inox had a record quarter aided by back-to-back box office super hit movies coupled with merger synergy, a show that is expected to continue this year.
Trailing P/E: 261.07 (no forward P/E) / Forward Annual Dividend Yield: (Yahoo! Finance)
