Market experts on what to expect from various sectors in 2014 _ Business Today

Market experts on what to expect from various sectors in 2014 Business Today

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Unformatted text preview: s . The c om pany als o plans to tap new m arkets for exports . M ahindra & M ahindra T arge t price : Rs 1,122 W e expec t a ris e in trac tor s ales due to higher c rop output and an inc reas e in m inim um s upport pric es . Volum es will rec over in 2014-15 due to revival in dem and and launc h of new produc ts . The pros pec ts of M&M's s ubs idiaries (Ss angyong, Tec h Mahindra and M&M Financ ial Servic es ) have als o im proved over the las t few m onths . M aruti Suz uki Maruti plans to launc h a num ber of utility and m ulti-pas s enger vehic les . Als o, the parent, Japan's Suz uki, has big plans to us e the c om pany's fac ilities to c ater to the m arkets of Afric a, Latin Am eric a and South Eas t As ia. BANKING "W e s ee long-term v alue in priv ate s ec tor bank s and nic he NBFCs " Rajiv M ehta, AVP, India Infoline W hile bus ines s s entim ent and polic y reform s s hould pic k up after the general elec tions in 2014, the inves tm ent c yc le m ay take tim e businesstoday.intoday.in/stor ypr int/201839 3/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today for any s ignific ant revival. That is why the dem and for corporate cre dit may re main subdue d in 2014. However, growth in c redit to retail s egm ent and s m all and m edium enterpris es is antic ipated to ris e. Mac roec onom ic s tres s is likely to keep as s et quality of both public and private s ec tor banks under pres s ure. Net interes t m argins have im proved with rates at the s horter end c om ing off on the bac k of im proving liquidity. W ith interes t rates on three-five year term depos its likely to rem ain firm due to high inflation, banks with lower wholes ale funding m ay find it diffic ult to m aintain m argins unles s they inc reas e lending rates . Private s ec tor banks are better plac ed than public s ec tor banks to abs orb the ris ing c redit c os ts due to their high m argins and low c os ts . Though our s ec tor view is c autious , we s ee long-term value in private s ec tor banks and nic he non-banking financ e c om panies if they c orrec t s ignific antly from c urrent levels . ING Vysya Bank T arge t price : Rs 712 The bank delivered 36% a year earnings growth between 2009-10 and 2012-13 and expanded return on as s ets by 50 bas is points . It is expec ted to keep doing well, aided by robus t loan book, ris ing m argins and effic ienc y gains . Gros s non-perform ing as s ets have fallen over the pas t two years , provis ion c overage is 90% and loan res truc turings have been negligible s o far. Earnings are expec ted to grow 22% a year between 2012-13 and 2014-15. The c urrent valuation does not fully c apture the bank's res ilient profitability and c apital bas e. HDFC Bank T arge t price : Rs 777 HDFC Bank is the bes t in the indus try with a s ubs tantial retail lending and depos it franc his e businesstoday.intoday.in/stor ypr int/201839 4/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today and enviable...
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This document was uploaded on 02/06/2014.

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