"The fundamentals of the chemical stocks appear to be fairly solid. According to Chakri Lokapriya, CIO & MD, TCG AMC, "Their profits have been increased for FY2023–24, and therefore it is worthwhile purchasing back these stocks."
Where do you find preference and comfort within the entire auto basket? Yesterday, Escorts responded to some very positive commentary regarding their long-term goals and growth market share plans, as well. Maruti had new car launches.
All of the top automakers, including Bajaj Auto, which hasn't done well, Hero MotoCorp, and TVS Motors in the two-wheeler market, still appear to be in good long-term shape.
Now that Kubota has joined the company and has announced plans to launch a significant number of products over the next five years, Escorts will continue to have a highly robust pipeline of new goods. In order to diversify their product offerings and increase their earnings, they are moving away from solely being in tractors. Depending on how much they will earn, the stock's value is still possibly between 16 and 18 times.
Escorts is a new company that used to only sell tractors, but now that it has newer products on the way, it's still important to keep an eye on it.
The most traded commodity in the world last night behaved like a smallcap stock?
Absolutely, yes. In reality, oil really turned negative between the lockdown days of 2020 and the present. Trade in crude has evolved into a very political-charged activity. The fundamentals of oil and supply and demand are no longer the only factors affecting crude pricing.
Second, even October retail sales in the US came in pretty well only a few days ago. There are signs that the Black Friday Thanksgiving weekend will also see strong retail sales in a few days, which means there is no recession in the US in sight and that the Fed will raise rates once more by another 75 basis points, raising concerns that this will trigger a recession and lower oil prices.
Crude behaves as it does because of the ongoing uncertainty surrounding whether or not there will be a recession and the political pressures resulting from the conflict in Ukraine.
Outside the Nifty 50, what looks interesting to you?
Bank of India has had great success. The stock still has enough opportunity to perform strongly on a fundamental level. It is still selling substantially below book. It has a strong deposit business that is expanding. In the last several years, it has cleaned up its books, and all of the NPA issues have been resolved. Fundamentally, the stock will go over Rs 100 during the next six to twelve months.
What is your outlook on some of these chemical companies?
For a business like SRF, Navin Fluoride, or even Tata Chemicals, the underlying demand is still quite robust. The demand is still very strong, therefore we will continue to see revenue positive surprises in the upcoming quarter even though all of these stocks outperformed profits estimates to some extent. Some of their packaging film divisions, packaging divisions, etc. also did not do as well.
Although they sort of fulfilled expectations, they did not do well, and there was a correction as a result. The fundamentals of the equities appear to be pretty robust, in my opinion. Their FY2023–24 profits have been enhanced, thus it is obvious that it is worthwhile to purchase back these equities.
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