moneycontrol India Stock of the Day (September 2023)
Lemon Tree Hotels, Ujjivan Small Finance Bank, Navneet Education, Krsnaa Diagnostics, Kirloskar Ferrous Industries, Gland Pharma, Sula Vineyards, Equitas Small Finance Bank, Thangamayil Jewellery, 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 September Stock of the Day videos (from newest to oldest) and covered in this post include:
Lemon Tree Hotels; Jamna Auto Industries; KEC International; Ujjivan Small Finance Bank; Navneet Education; Krsnaa Diagnostics; Kirloskar Ferrous Industries; Gland Pharma; Indraprastha Gas (IGL); Sula Vineyards; Equitas Small Finance Bank; Seshasayee Paper and Boards; Thangamayil Jewellery; Va Tech Wabag; National Mineral Development Corporation (NMDC); BSE Ltd; Vijaya Diagnostic Centre; & Divi's Laboratories
This meme showed up in my Twitter feed the other day:
Humor aside, this recent Mint article noted:
After a volatile Indian stock market in September, what lies ahead? Know from expert (Mint)
Historically, the monthly returns of S&P 500 are mostly negative in September. An anomaly which is believed to be a season behaviour having an effect on the performance of global stock market annually. In the current month, Indian markets have indeed marked increased volatility. Among different market segments, mid- and small-cap stocks have borne the brunt of this volatility, while large-cap stocks have remained relatively stable. The direct consequence of this volatility is increased selling pressure from FIIs and HNIs. The selling in India by foreign investors is collateral damage resulting from the adverse performance of global equity.
And:
In the Indian context, the level of selling by FIIs has been relatively moderate. This can be attributed to the belief that the domestic economy is poised to decouple from the global economic trends, driven by industrialization and favourable business policies. It is important to note that the impact of FIIs' selling activity is cushioned by the positive inflows from DIIs and Retail investors.
As covered in our September 12th post, a fund manager had noted in a recent interview how, from late last year until this summer, there was something like $23-27 billion worth of foreign or hot money selling on the Indian stock market with hardly a negative market reaction. That amount of foreign selling just a few years ago would have seriously dented the market’s performance. But thanks to domestic Indian investors, India is probably the only emerging market where domestic investors can neutralize the foreign hot money fluctuations.
With that in mind, here is a look at the performance of the three iShares ETFs: iShares India 50 ETF (NASDAQ: INDY), iShares MSCI India ETF (BATS: INDA) and iShares MSCI India Small-Cap ETF (BATS: SMIN):
Getting back to moneycontrol’s Stock of the Day videos 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…
Lemon Tree Hotels
Lemon Tree Hotels (NSE: LEMONTREE / BOM: 541233) is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. They operate in the upscale segment and in the mid-market sector, consisting of the upper-midscale, midscale and economy segments. They deliver differentiated yet superior service offerings, with a value-for-money proposition.
LTHL opened its first hotel with 49 rooms in May 2004 and currently operates ~8,750 rooms in 95 hotels across 60 destinations, in India and abroad, under its various brands viz. Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, Keys Prima, Keys Select and Keys Lite. As the current pipeline becomes operational, LTHL will be operating ~10,450 rooms in 106 hotels across 64 destinations, in India and abroad.
Lemon Tree Hotels, including Keys Hotels, are located across India, in metro regions including the NCR, Mumbai, Kolkata, Bengaluru, Hyderabad and Chennai, as well as numerous other tier I and II cities such as Pune, Ahmedabad, Chandigarh, Jaipur, Indore, Aurangabad, Udaipur, Vishakhapatnam, Kochi, Ludhiana, Thiruvananthapuram and Vijayawada. The company expanded internationally with hotels opening in Dubai in December 2019 and in Bhutan in February 2020. New hotels are also set to open internationally in Bhutan and Nepal.
Mid Segment Hotel Leader to Further Strengthen Its Presence | Lemon Tree Hotel | Stock Of The Day
India is expected to witness a sharp surge in the travel demand owing to increased trend of travel, rising incomes, Government efforts to boost tourism as well as improved infrastructure. With supply growth expected to be muted and trail demand significantly, industry is likely to witness a surge in pricing as well as profitability. Lemon Tree has lined up aggressive expansion plans to tap growth. Monetisation of owned hotels will reduce debt and drive re-rating.
Trailing P/E: 75.25 (no forward P/E) / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
Jamna Auto Industries
Jamna Auto Industries (NSE: JAMNAAUTO / BOM: 520051) manufactures high-quality suspension solutions for a wide range of commercial vehicles. Their product range includes Leaf Springs, Parabolic Springs, Lift Axles & Air Suspensions. JAI is a well known brand in automotive Industry catering to all OEM's, Replacement Market and Export Market. For Springs – they have the highest annual capacity of over 3,00,000 MT.
Robust product portfolio, strong relationship with customers make it | Stock Of The Day
JAI holds the distinction of being the in introducing parabolic springs to the Indian market. With a strong product portfolio, strong clientele, new product launches and CV tailwinds, the company is poised to outperform the industry. Further, its valuation provides adequate comfort
Forward P/E: 20.24 / Forward Annual Dividend Yield: 1.62% (Yahoo! Finance)
KEC International
KEC International (NSE: KEC / BOM: 532714) is the flagship company of the RPG Group. A USD$2.1 billion Engineering, Procurement, and Construction (EPC) major, the Company delivers projects in key infrastructure sectors such as Power Transmission & Distribution, Railways, Civil, Urban Infrastructure, Solar, Smart Infrastructure, Oil & Gas Pipelines, and Cables.
KEC International’s robust and integrated capabilities span the entire EPC value chain from ‘concept to commissioning’. The Company has successfully executed complex projects across some of the world’s most difficult terrains and conditions, aided by robust engineering, procurement, execution and project management capabilities. The Company has a vast manufacturing footprint extending across India, Dubai, Brazil and Mexico. This global presence has enabled a robust and agile supply chain that extends across six continents in over 105 countries.
KEC International | Promising Contender In The Power T&D Space | Stock Of The Day
Considering its robust order book, solid financial position, and improving execution, KEC International is poised to deliver strong growth in the near future. The company's favorable prospects are further bolstered by improving margins, a promising pipeline of new projects in the T&D space, and the valuable contributions from its subsidiaries, all of which make KEC International an attractive choice.
Forward P/E: 44.25 / Forward Annual Dividend Yield: 0.45% (Yahoo! Finance)
