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Time of India
5 days ago
- Automotive
- Time of India
EV and JLR portfolios could drive Tata Motors rerating: Deven Choksey
"In my viewpoint along with the EV portfolio, which is also expanding particularly even for JLR, I believe everything seems to be in the price. On the contrary, given the kind of road map that they have laid down for the JLR and a Range Rover electric vehicles, it sounds pretty exciting probably, which could possibly generate higher amount for the company because EV segment, this commands higher amount of the cases also in the industry," says Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd. What is your own sense, you think this guidance cut is much in the price and more importantly what do you think has led to this? Deven Choksey: Well, I believe that whatever the guidance cut has come, it is based on two or three things. One, of course, we all know about the uncertainty under which this particular environment is currently, particularly on the tariff front, as well as the free trade agreements, etc. On this subject, they have become little bit more cautious while cutting down the guidance. But to me, everything seems to be in price because more importantly when you look at the company from a future perspective, when you start seeing the company as a separate company for commercial vehicle, domestic portfolio passenger vehicle is separate, JLR portfolio is a separate portfolio, and all in all put together their investments into the other entities also starts giving them the monetisation value. So, in my viewpoint along with the EV portfolio, which is also expanding particularly even for JLR, I believe everything seems to be in the price. On the contrary, given the kind of road map that they have laid down for the JLR and a Range Rover electric vehicles, it sounds pretty exciting probably, which could possibly generate higher amount for the company because EV segment, this commands higher amount of the cases also in the industry. So, from perspective of looking at this company, I would think that the JLR and the brand once it is separately available for Tata Motors in the passenger vehicle, could possibly make a rerating case as far as the company is concerned. But at what price point do you believe that it can once again become an attractive bet? Given the fact that the stock has already fallen below that 700 mark, do you believe in some more correction from now one can actually look for a buying opportunity? Deven Choksey: In a bear case scenario, somewhere around 600 would be the opportunity, but in a best case scenario around 660 should be a good price to enter into the stock which is quite closer to yesterday's closing price. Otherwise, those who are waiting for little long-term investment point of view, even if they buy today, probably they are getting the appreciation over a two-year period or two-and-a-half-year period which is a significantly large appreciation. Largely because of the fact that whenever there is such kind of uncertainty, that is when such a pricey assets that you get at a discounted valuation. Today, when we look at Tata Motors respective portfolios, be it commercial vehicle, be it passenger vehicle, domestic or electric vehicles, and the JLR, each of these portfolios are today quoting on a sum of the part valuation. That is why I believe that everything is in price, maybe this particular thing is an opportunity today when the stock price is down, I think a good buy and stay invested.
Economic Times
10-06-2025
- Business
- Economic Times
Deven Choksey on 3 insurance stocks to invest in now
Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd, says private sector insurance companies remain relatively more favourable from the growth perspective because their base is giving them an advantage at this point of time. Would Choksey immediately buy some of these stocks? The answer is both yes and no. Valuation-wise, some of them have already started scaling up. There is good potential in SBI and HDFC Life and also Bajaj Life from an investment perspective. ADVERTISEMENT Where do you see the insurance sector moving ahead and which are your top favourites? Deven Choksey: The private sector companies have been thriving on the product innovations, they have been thriving on the high value added product at the same time, and also adopting the digital approach in expanding the marketplace. The cost of acquiring a customer remains comparatively lower in their case. Given that situation, I think they deserve to be premium ranked which they are currently. The embedded value to EBITDA ratio that we look at in life insurance remains comfortably high for some of the private insurers compared to LIC. In my view, the growth momentum is expected to continue for a couple of reasons. One, the new income tax exemptions have started coming in this financial year, wherein the tax rates are not likely to apply till the amount of income is up to Rs 12 lakh and that is where the higher amount of surplus remaining in the hands of individuals would possibly find its way in some of the financial products including the life insurance. In this scenario, the private sector companies remain relatively more favourable from the growth perspective also because of the fact that their base is giving them an advantage at this point of time. Would we immediately buy some? The answer is yes and no both. Valuation-wise, some of them have already started scaling up. We find good potential in the likes of SBI and HDFC Life and also Bajaj Life Insurance business. We like those businesses from an investment perspective. What about the pharma sector? It has been steadily gaining market momentum, but I believe the market is not factoring in the big tariff overhang on pharma. What are you making of this space? Deven Choksey: That remains uncertain for sure, till the time we get full clarity on it. But leaving that aside, how are Indian companies strategizing their presence across the globe? On one hand, they are bringing out the specialty generics, the complex generics that some of the large companies like Sun Pharma, Cipla, Dr Reddy's among others are registering their presence in. The complex generics drugs are giving them the advantage of pricing power. As far as the pricing is concerned on this particular drug, because they are not competing with pure generic, that is a positive for them and most of these companies are expanding their portfolio on that side. The second positive which is going in is API business, which is again very comfortably getting merged into the formulation business some of the global peers, the large pharma companies, and again Indian companies including the likes of Divi's, Laurus, and even the other majors. Last but not the least, on the margin front, since the input cost scenario is improving, most of these pharma companies are seeing better margins in the current financial year vis-à-vis previous years. So, we remain distinctly confident about the prospects going forward despite the tariff turbulence. Once that is out of the way, some of these companies could get rerated. (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
13-05-2025
- Business
- Business Standard
India Inc. promoter holdings continue to fall, but experts see no red flags
Promoter ownership in domestic companies has declined to the lowest level since the September quarter of 2017, but market experts say the trend is largely market-driven and does not point to any governance-related concerns. In the NSE 500 universe, private promoters' share of overall holdings has dropped to 39.6 per cent in the March quarter so far, the lowest level since the September quarter of 2017, according to data from In December 2024, private promoter holdings in the broader universe stood at 39.76 per cent, declining slightly to 39.6 per cent in the quarter under review. Among the non-PSU Nifty 50 companies, promoter holdings currently stand at 34.4 per cent, the lowest since June 2017, as per the latest data. There are no governance concerns here as the regulations are strong, said Chokkalingam G, founder of Equinomics Research. He explained that the recent decline in promoter holdings is largely driven by market dynamics, particularly elevated valuations following an unprecedented bull run in calendar year 2024. 'Some stocks became extraordinarily overvalued. For instance, metal stocks that typically traded at 8 to 11 times earnings were suddenly valued at 25 to 35 times. This created an opportunity for promoters to offload shares,' he said. According to Chokkalingam, promoter selling at such high valuations should not be viewed with suspicion but rather as a signal for investors to assess price levels more carefully. 'Promoters understand their businesses better than most investors. If they are selling at a certain level, that price should serve as a reference point in the next market cycle,' he added. The reduction in the holdings comes in a quarter that was marked by a correction in the market triggered by global funds outflows amid valuation and trade war-related concerns. During the March quarter, the benchmark Nifty50 and the 30-stock Sensex saw a decline of 0.5 per cent and 0.9 per cent, respectively. Meanwhile, the Nifty midcap and small-cap indices fell by 13 per cent in the quarter. A lower promoter holding does not necessarily indicate a negative outlook for a company, said Deven Choksey, Managing Director of DRChoksey FinServ Pvt. Ltd. The very purpose of a company getting listed on the exchanges is to dilute its stake in order to raise funds. As long as companies receive the right valuation for the stake they offload, it should not be a concern. Shift in tide: DIIs versus FIIs This shift comes when, for the first time that domestic institutional investors (DIIs) now own a larger share of India's top 500 listed companies than foreign institutional investors (FIIs), marking a structural realignment in India's capital markets. As of March 2025, DIIs held an 18.4 per cent stake in Nifty 500 companies, surpassing foreign institutional investors (FIIs), whose ownership declined to 18.16 per cent. The FII-DII ownership ratio, which once stood at approximately 1.5 times in September 2021, fell to 0.99 times in the March quarter, highlighting the rising influence of domestic capital in Indian equities.
Economic Times
13-05-2025
- Business
- Economic Times
Pharma and metals could drive next leg of momentum: Deven Choksey
"When the momentum is back, the market is crazy about the midcaps and smallcaps. I would like to stay a little bit more protective at this point of time as far as the portfolio construction is concerned and would probably continue to stay with some of the larger companies," says Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd. ADVERTISEMENT Will you be surprised if markets make a new high in this leg of rally? Deven Choksey: Well, the fabric is woven as far as the market direction is concerned. Though the yesterday's rise has been significantly large as I would like to call it as and money market would take some time to pull off and adjust to this particular rise. But going forward the direction remains clear. We probably would see the higher contribution into the index stocks, particularly from index stocks into the indexes and that would include some of the heavy weights in IT space per se where I believe that could probably start giving the little higher amount of push as against the earlier push of only BFSI and Reliance last few weeks. So, if the IT stock starts supporting the index, then possibility of 25,200 on Nifty in the following times is distinctly there and should be cross about 25,200 and stay in that particular region between 24,200 to 25,200 on Nifty, maybe one would see that the market consolidating and by the second half would take initiative to go a little further up, but at this point of time direction remains positive. Maybe some amount of correction in the indices is definitely due because the sharp rise has happened yesterday and that correction could possibly a good opportunity for investors to buy into the market. What would you recommend buying a fresh right now given how the earnings have panned out and let us keep all the geopolitics, all that is happening on the world aside but just purely in terms of earnings visibility and the valuation that the stocks are available at what is looking good to go. Deven Choksey: So, when the momentum is back, the market is crazy about the midcaps and smallcaps. I would like to stay a little bit more protective at this point of time as far as the portfolio construction is concerned and would probably continue to stay with some of the larger companies. ADVERTISEMENT Maybe couple of sectors where the immediate rise including the momentum may support, one of them would be IT, second could be pharma, and third could be metals. They could possibly give the momentum based push as well into the Nifty 50 stocks, but over and above that we continue to hold our positions in some of the good quality BFSI companies where we believe that higher amount of growth is going to drive the profit performance of these companies systematically. Within the manufacturing space, we remain distinctly clear on two-three aspects, on one side the input cost is remaining under control unlike last year and on the other side the demand scenario, the business are improving, particular for capital good segment as a whole. ADVERTISEMENT So, we remain distinctly positive on that front as well. Yes, but we should be selective, very-very selective in the midcap space where we like some of the companies, but if the valuations are expensive, probably we would decide before buying into them, that is the approach that we have taken in our portfolio investments. ADVERTISEMENT So, which is one stock you want to buy, but you would buy 10% lower and which is one stock you are buying right now because you think that another 10-15% is coming in next six months. Deven Choksey: Yes, it is a good point. I do not know immediately the answer to that one stock. But certainly as I was making a point that some of the IT and pharma companies remain relatively more appealing today because of the trade deal which has been signed with China as well, so more certainty has come on that front. Not too sure whether I would buy a 10% more into some of the IT, pharma. They are currently available at corrective price, so to an extent I would consider buying into the portfolio now and not going for later. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
