Real bank credit growth drops drastically, UTI AMC IPO could not have been better timed; all this and more on Moneycontrol Pro

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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.

The UTI AMC IPO could not have been better timed

The largest AMC in India is approaching the market at a time when the indices are at all-time high levels and the sector in which it belongs is a hot favourite. New share sales of asset managers have had a great track record as the mutual fund sector has seen a steady flow of investment. Does the UTI AMC IPO leave enough money on the table for the investor? Read more .

Real bank credit growth drops drastically

Despite the loan melas and multiple rate cuts, bank credit continues to remain sluggish. The latest RBI data indicate no signs of improvement. Non-food credit growth has slipped below 7.5 percent from a year ago. Read more .

Ideas for Profit | An agrichem smallcap undergoing a pharmaceutical makeover

Our first stock pick of the day is a smallcap agrichemical company. Its management has a proven track record to turn around businesses. The firm’s balance sheet is clean and valuations are quite reasonable at the moment. Moreover, its exposure to the pharmaceutical industry is set to increase giving impetus to earnings. Read more .

Investors should consider this high-quality metals small-cap

Our second stock pick of the day is a quality business in the metals space. Yes, its earnings have been hit in FY20 due to steel industry slowdown and lower prices, but we expect earnings and margins to recover in the second half of this year. The stock is trading at 6 times FY20 estimated earnings and cash in the books more than 50 percent of market capitalisation. Read more .

Picks from our technical analysts (Please click on security name to access recos)

ICICI Prudential Life Dr Reddy’s Cipla Indiabulls Housing Finance