L&T could remain a stock market leader and outperformer, especially after the buyback, according to Dipan Mehta from Elixir Equities. Bajaj Finance is expected to have a solid quarter, but the stock price may not rally due to a sell-on-news syndrome, and the company faces new challenges such as Piramal Enterprises, Poonawalla Fincorp, and Jio Finance. Despite a historic earnings report, Delta Corps outlook is tricky with uncertainty surrounding the 28% levy on all gambling revenues.
The buoyant market conditions will continue, says Dipan Mehta, Director at Elixir Equities, and predicts a trend of vibrant IPOs, new listings and preferential issues. Mehta considers buybacks a way for managements to boost profits at a time when global macroeconomic trends may impact performance, but warns against investing in Tata Motors, one of the most volatile stocks on the Nifty 50, because of a break-even point for JLR that is too high, cash flow risk and difficulty with risk determination.
No, IT has been a disappointment. Just because the market does not think so does not mean that the facts on the ground are different. They have reported numbers which are below Street expectations and management commentary has been uncertain.
“We are shareholders of PVR and on every upside, we are looking at exit opportunities. The reason for that is that the habits have changed and more and more entertainment is being consumed online through OTT platforms to an extent and even through gaming. So I am not positive on the prospects of Inox PVR.”
“Post the GST rejig which has imposed 28% tax on gaming of all sorts, it is better to just stay away for two-three quarters. Let the dust settle down. Let us see what the real numbers are and how the impact has been and then take a call.”