Moneycontrol Pro highlights: Analysts pick Maruti Suzuki, LIC Housing Finance stocks; will govt meet disinvestment target

  • The national road builder’s debt has ballooned almost seven-fold over the past five years

  • Cement demand is expected to decline due to an expected decline in government spending

  • Shriram Transport Finance has managed to keep its head above water with a decent performance in Q1 FY20

Finally, some great news! India’s fastest-growing financial subscriptions service, Moneycontrol Pro, is available both on the website and mobile apps.

Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. In sum, all the information you need for wealth creation.

Government running out of options for meeting its divestment target

The government, which has set an ambitious disinvestment target of Rs 1.05 lakh crore for the current fiscal year, may find it difficult to meet it. Its usual strategy of taking the ETF route may not work as the latest round saw retail investors incur losses as it traded at a discount to the offer price. But the government still needs money. Click here to read what options does the government have to meet its fund-raising target?

 Moneycontrol Pro highlights: Analysts pick Maruti Suzuki, LIC Housing Finance stocks; will govt meet disinvestment target

Representational image

NHAI: In search of a right path as debt weighs it down

The National Highways Authority of India (NHAI) is suddenly finding itself at a crossroads and looking for the right path to move forward. The national road builder’s debt has ballooned almost seven-fold over the past five years. The government is worried and wants NHAI to cut down its debt by shedding assets so that the risks becoming manageable. Click here to read why climbing off this tiger is not going to be an easy manoeuvre.

The cement sector’s main problem is not one of demand but of rising supply

Cement demand is expected to decline due to an expected decline in government spending. This raises a question of how cement companies will get affected. While demand is one part, a bigger question for companies is of rising supply. Higher supply puts pressure on prices and cement companies are more dependent on prices than volumes. Click here to read why cement faces a problem of plenty.

This financier of used vehicles is better placed to ride out the slowdown

Shriram Transport Finance has managed to keep its head above water with a decent performance in Q1 FY20. While the automobile industry’s sales growth has slumped and is bound to affect financing companies, the sole pocket of relative strength was in financing of used vehicle sales. That is also Shriram Transport’s strong point. Click here to read our analyst’s view on this stock.

Weak demand a thorn in tyremakers' side

Tyre companies have their backs to the wall due to the strain showing up in automobile output numbers. Concerns over demand from OEMs and margin pressures have affected investor sentiment, leading to significant decline in stock prices. Click here to read our analyst’s take on how the sector is placed and whether long term investors can some interesting picks here.

Technical picks

Maruti Suzuki: A bullish piercing pattern in Maruti at an important support level suggests upside potential. Click here to read how to trade this stock.

LIC Housing Finance: There is a low-risk trade to gain from, due to a bearish trend in LIC Housing Finance. Click here to read how to trade this move.

Updated Date: Sep 06, 2019 13:21:26 IST