In this article, we will be discussing 4 stocks that an Investor should keep an eye on. So, let’s get started!
HDFC-HDFC Bank:
- The Central Bank of India-Reserve Bank of India has given a nod for the merger of HDFC Limited and HDFC Bank on July 4, 2022.
- This approval is the first step in the long list of approvals from the Competition Commission of India (CCI), National Company Law Tribunal, Shareholder, and others.
- The entities are aiming to complete the merger by Q2-Q3 of FY24.
- HDFC Limited is having a valuation of almost $60 billion and is getting merged with HDFC Bank.
- Shareholders having 25 shares of HDFC Limited will get around 42 shares of HDFC Bank.
Relaxo & Bata India:
- As per the report, if the Per Capita Income of a country crosses the mark of $2000, then it is observed that there is increased demand for the footwear industry. Currently, the economic indicators of India are suggesting the same.
- Also, there are some positive indicators for the footwear industry, such as:
- The economy moving toward normalcy
- Re-opening of educational institutions
- opening up of offices
- Low Base Effect of FY22.
- Stabilization of Raw Material Prices
- Possible improvement in margins
- The capacity to transfer cost-pressure on the consumer is outstanding
- The strong presence of both companies across India with a growing distribution pace
- Strong Brand Name
- Strong Balance Sheet-Low Debt to Equity ratio especially for Relaxo Footwears
What Should Investors Do?
With regards to HDFC and HDFC Bank, the merger process looks to be on fast track and likely to be completed by Q2 and Q3 of FY23. For the footwear industry, several positive indicators are expected to benefit the footwear stocks, especially the strong brand names like Relaxo and Bata. Hence, an investor should keep this stock on their radar but should follow due diligence before making any investment decisions.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.
Originally Published On:https://blog.investyadnya.in/top-4-stocks-to-watch-out-for-near-to-mid-term-should-you-invest%ef%bf%bc/
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