Special Report on 7 Stocks: Strategy for Investment
Investing in stocks requires a well-thought-out strategy to navigate the volatile market. In this special report, we delve into seven stocks, including SBI Card, Paytm, and HUL, offering insights into what your investment strategy should be. Additionally, we’ll explore key points affecting these stocks:
1. Jefferies Expects Strong Growth in Card Spending Jefferies, a global financial services firm, anticipates robust growth in card spending. This projection suggests potential opportunities in companies related to card transactions.
2. Company’s Success in Tariff-Based Competitive Bidding Projects The company has received significant orders for tariff-based competitive bidding (TBCP) projects, amounting to an estimated ₹8,700 crores. This reflects strong demand for its services.
3. Total TBCB Order Value for FY24 The total order value for TBCB projects in the fiscal year 2024 has reached ₹19,700 crores, indicating a healthy pipeline of projects.
4. Market Indicates Steady Demand Despite fluctuations, the market is showing signs of steady demand in October, aligning with trends observed in the second quarter. Understanding market dynamics is crucial for investment decisions.
5. Festive Season Impact Contrary to expectations, the festive season did not lead to the anticipated growth rebound. Evaluating the impact of such events on stock performance is essential.
6. Focus on Long-Term Loan Growth and Earnings Companies should prioritize long-term loan growth and assess the potential earnings impact. This approach can help in sustaining profitability.
7. Monitoring Asset Quality While asset quality is improving, it requires vigilant monitoring to ensure stability and mitigate risks.
8. Short-Term Sentiment Investors should be prepared for short-term sentiment fluctuations, which can affect stock prices. Staying informed and adaptable is key.
9. Strategic Partnership with Nordic Manufacturing Group Announced strategic partnerships, such as the one with the Nordic Manufacturing Group, can elevate a company’s business relationships and open new avenues for growth.
10. BNPL Business Recalibration Companies recalibrating their Buy Now Pay Later (BNPL) business should be closely watched. Changes in BNPL strategies can have implications for stock performance.
11. Impact on Card Sourcing Filtering in new card sourcing may impact the revolver mix, which is crucial for companies in the financial sector.
12. Potential Impact on Yield Adjusting the EMI mix can potentially affect yield, influencing investment decisions.
13. Focus on Large-Ticket-Size Personal Loans Shifting focus to large-ticket-size personal loans can be a strategic move for companies in the lending sector.
14. Disbursement Run Rate Monitoring the disbursement run rate is essential, as it can impact short-term financial performance.
15. Diverse Order Portfolio The company’s diverse order portfolio includes a ₹580 crore contract from the Indian Army for radar maintenance, contributing to its overall order inflow.
16. Preparing to Reduce Small-Ticket-Size Loans Companies preparing to reduce small-ticket-size loans should be evaluated for their strategic direction.
17. BNPL Disbursal Reduction Plans to reduce BNPL disbursals by almost half in the next 3-4 months can have financial implications for these companies.
18. Revenue Reduction Forecasts Jefferies forecasts a 3-10% reduction in company revenue for FY24-26, emphasizing the need for long-term investment strategies.
19. Adjusted EBITDA Expectations Expectations of a 12-15% decrease in adjusted EBITDA highlight the importance of monitoring financial performance.
20. Small-Ticket-Size Postpaid Lending Business Companies looking to reduce their small-ticket-size postpaid lending business should be assessed for their evolving strategies.
