Top 2 Buy Ideas for New Year 2024 Which Can Fetch Up To 15% Return
by Sandip Das on 1 January 2024, 5 min read
Indian equity market touched new lifetime highs for the fifth consecutive week ending December 29, 2023. Nifty and Sensex touched 21801 and 72484 levels respectively. Both Sensex and Nifty gained 1.6 percent each while broader markets outperformed Nifty Midcap lost 2.44 percent and Nifty Smallcap lost 2.08 percent during the week as the dollar eased, and bond yields dipped on hopes that the Federal Reserve may unwind its restrictive policy sooner rather than later.
Investors are currently pricing in the first 25 bps rate cut in March, followed by two more 25 bps cuts in May and June due to slowing inflation. Overall, markets eye 5 cuts in 2024 and 3 more cuts in 2025 so that rates reach 3.00-3.25 percent in Q3 2025. Despite lingering concerns about soaring valuations, the overall mood remains optimistic, buoyed by enthusiastic retail participation.
In the December series, Nifty futures experienced a notable uptrend, marking an impressive surge of over 8 percent, navigating a range of nearly 1500 points. The rollover for the index future stood at 79.54 percent, surpassing both the previous month’s figure of 73.06 percent and the average rollover of the last three months, which was 78.66 percent. Market-wide rollover stood at 92 percent compared to 91 percent (MoM).
Gujarat Gas’s resilient business model remains well-placed to benefit from any resolution in the geopolitical conditions. Gas sales recovered in Morbi, as Gujarat
The government cut VAT on CNG and domestic PNG from 15 percent to 5 percent and increased in custom duties on propane from 2.75 percent to 19 percent, making it a level playing field for Gujarat Gas.
The company expects propane prices to go up in the upcoming winter, thus improving IPNG economics and supporting its volumes. Ahmedabad Rural is a major focus area for volume growth, with 0.5 mmscmd already and greater than 1 mmscmd in five years. Gas volume in new GAs (mostly CNG) should rise from the current 0.5-0.6 to greater than 1mmscmd by CY25.
The capex guidance stands at Rs 1000-1200 crore annually over the next three years and will be split equally between new GAs, old GAs, and CNG. The company will add ~60-70 new CNG stations annually over the next two years.
Gujarat Gas’ long-term volume growth prospects remain strong with incremental demand from new industrial units, expansion of existing units, and the upcoming new ceramic cluster in Gujarat. It is aggressively investing in infrastructure to push industrial gas adoption in Thane rural, Ahmedabad rural and newly acquired areas in Rajasthan.
Galaxy Surfactants during Q2 FY24, achieved a total volume growth of around 10 percent YoY to 65.1 mt with growth across markets. The management highlighted that Indian demand remained resilient, with demand improvement seen for premium categories in the domestic market. AMET market too saw a strong comeback with double-digit growth on a sequential basis. There is no slowdown in offtake because of the ongoing Israel-Hamas conflict, but the management said that the risk still exists with the situation warranting a close watch.
The management is confident of achieving volume growth in the upper band of the guided range of 6-8 percent but remains cautious about any adverse supply-led shocks. It expects EBITDA per kg to improve going forward with easing inflation and demand improvements for premium specialties. The company has guided that the easing of raw material prices, freight rates, and recovery in developing markets would aid Performance Surfactant volumes.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
How useful was this post?
Click on a star to rate it!
Average rating 0 / 5. Vote count: 0
No votes so far! Be the first to rate this post.
Spread the love
Open Free Demat Account!
In just a few minutes, Simply provide some basic personal details, to get started.
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in the securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educational material in the form of text and videos, so as to become an informed investor.