Benchmark Indian equity indices ended marginally lower on September 22. The
declined 0.13% to end at 58,927.33, whereas NSE
shed 0.087% to close at 17,546.65. Among the major sectoral indices, bank and FMCG sector stocks were in the red zone. The realty sector gained the most (slightly more than 8%) among sectors that ended in the green. The Government of India's push on infrastructure put a spotlight on infrastructure stocks. Some of the companies are likely to gain in this space. As the economy continues to recover from the second wave blues, a few stocks are likely to gain going ahead.
1. GMR Infrastructure (NS: GMRI ) Ltd
GMR Infrastructure develops, maintains, and operates airports. The company also generates power and operates coal mines. In addition, GMR is also into the development of highways, maintenance, operation of special economic zones, and construction business, including EPC contracting activities. Covid-19 has changed the way air passengers will behave going forward. Instead of waiting at worldwide aviation hubs, they will prefer direct flights to destinations. It will consolidate India's position as an originator of air volumes. Here, world-class airports in significant metro cities will likely act as hubs for accumulating domestic and worldwide traffic. More usage of Delhi and Hyderabad airports operated by GMR will likely push its top-line growth.
In Q1FY2022, GMR reported a consolidated net loss of Rs 318 crore compared to a net loss of Rs 834 crore in the corresponding period of fiscal 2021. Total income in the quarter was Rs 1,897 crore, up 55% compared to Rs 1,224 crore in Q1FY2021. Its revenue from the airport vertical was Rs 898 crore, up 81.6% year-on-year as against Rs 494.38 crore in the year-ago period. The power segment reported Rs 446 crore revenue, up 48.7% compared to Rs 300.59 crore in Q1FY21. In each of the four quarters last year, FIIs/FPIs have increased their holding in the company. In the June 2021 quarter, their stake went up by 1.33%, and DIIs holding increased by 0.19%. The scrip has a ''buy'' signal based on major technical indicators such as RSI, MACD, and 20-day/50-day/100-day EMA.
2. Apollo Tyres Ltd (NS: APLO )
Founded in 1972, Apollo Tyres Limited manufactures automatic bias and radial tyres and tubes. The company's product portfolio includes prominent tyre brands in India'sIndia's T&B, light truck, passenger car, and farm vehicle segments. Apollo caters to both original equipment manufacturers and the replacement market. On-demand front, the domestic market saw steady improvements from June 2021 onwards. Headwinds from the truck OEM side should be subsidized from the tailwinds from better demand from the rest OE and replacement. Restrictions on imports augur well for domestic producers. The company is expected to maintain current export momentum with a target of 15% of SA revenues against 10% currently. It has witnessed market share gains in focused categories (UHP/UUHP PCR, TBR, Agri); specialization of Dutch plants should continue to create cost competitiveness and margin improvement. Supply chain initiatives like network re-design should aid the company in reducing costs while optimizing working capital. Its continued focus on fixed cost reduction should result in meaningful earnings growth ahead.
In Q1FY2022, Apollo Tyres' consolidated revenue jumped 59% to Rs 4,584.5 crore from Rs 2,881.7 crore in the corresponding quarter a year ago. Its EBITDA skyrocketed 131% year-on-year to Rs 566.8 crore from Rs 245.6 crore. From a net loss of Rs 134.6 crore in Q1FY2021, the company posted a net profit of 127.8 crores in Q1FY2022. In June 2021, proCriticalers, MFs, and DIIs holding have marginally gone up. Vital technical indicators such as RSI, MACD and 20-day/50-day/100-day EMA have a ''buy" signal for the stock.
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Nice suggestion! what will be the hold time for long term investment point of view?Like 1
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