DLF: Realty Stocks Still Attractive Despite High Valuations; DLF Leads: Nuvama
Indian real estate is moving in an Attractive cycle comparing to previous upcycle. The companies are Prestige, Brigade and DLF is most attractive one in the Nifty Realty Index. Nuvama Brokerage Firm analysed the Indian real estate stocks are most attractive one with less premium in the Nifty realty Index surge in recent days. Decent cash flows, RBI holding rates and Housing demand increased in realty sector. Based on these, Realty index is worthable one by Nuvama Brokerage view in current scenario.
Nuvama Bullish on Realty Sector Despite Valuation Concerns
DLF LTD Market Price has broken Ascending channel in downside
Nuvama remains optimistic about the real estate sector despite the Nifty Realty Index surging 120 percent since March 2023. Their top picks include DLF, Prestige, and Brigade, with DLF being dubbed the “king of the pack.”
The rally in the Nifty Realty Index has been driven by factors such as the housing upcycle, strong pre-sales growth by listed developers, and the RBI’s pause on rate hikes. Concerns about high valuations have arisen, with stocks trading at premiums to NAVs similar to previous upcycles.
However, Nuvama argues that valuations are not overly expensive compared to previous upcycles. They point to cash flow analysis indicating strong pre-sales growth in the absence of substantial cash flow generation due to high working capital requirements. Additionally, industry consolidation and market share gains contribute to their belief that current valuations are reasonable relative to past cycles.
AUROPHARMA: Aurobindo Pharma Falls 2% on US FDA Concerns in Telangana Unit
US FDA written 7 Observations against Auropharma Subsidiary Eugia Pharma unit in Telangana after Feb 19-29 inspections. US FDA said plant did not maintain contamination avoiding procedure, Operators did not trained well, did not maintain records in the Book, Did not follow the tracking record of Manufacturing dosages performance in the plant. Auropharma said to exchange they will solve this issue as soon as possible and started with clean line in April 15, 2024.
AUROBINDO PHARMA Market Price is moving in Ascending channel and market has reached higher low area of the channel
According to CNBC-TV 18, the US Food and Drug Administration (FDA) has identified procedural and cleanliness concerns at the Eugia Pharma SEZ unit, a subsidiary of Aurobindo Pharma, located in Telangana.
As a consequence of this development, Aurobindo Pharma’s shares experienced a decline of nearly 2 percent to Rs 993.85 on the National Stock Exchange (NSE) at 12:30 pm on March 15.
During the period from February 19 to 29, the Telangana plant of Aurobindo Pharma’s subsidiary received seven observations in its Form 483 following an inspection. The US drug regulatory body highlighted instances where procedures to prevent contamination were not adhered to, and proper written records were not maintained, leading to unexplained discrepancies.
Additionally, the US FDA discovered that equipment within the plant were not optimally situated to facilitate operations. Moreover, employees involved in the manufacturing and processing of drug products lacked adequate training. Furthermore, the plant lacked procedures to validate the performance of both the manufacturing process and the drugs themselves.
In response to these observations, Aurobindo Pharma temporarily halted production in its terminally sterilized product lines at Unit-III on February 29. However, the company resumed production in these lines shortly afterward and also restarted its aseptic lines. Aurobindo Pharma aims to commence commercial production from the aseptic lines in a phased manner starting the following week and intends to have all lines operational by April 15, 2024. This information was disclosed by the pharmaceutical company to the exchanges on March 12.
Aurobindo Pharma reported producing over 40 billion dosage forms during the fiscal year 2023.
Gold: Gold Beans Trending Among China’s Gen Z Amid Deflation
China’s Young people buy more Gold beans in terms of 1 gram of Gold to avoid Financial trouble in their economy. China now facing a 15-year Deflation rate due to the Stock market fall and the real estate crisis that happened recently after the pandemic. Chinese people preferred Gold as more safer investment during the pandemic times it never hurt during normal and pandemic times, unlike the stock market and real estate ups and downs. So Gold prices reached new highs in the international market after the World’s largest consumer China bought gold in more terms.
XAUUSD Market Price has broken box pattern in upside
Gold Beans: China’s Gen Z Turn to Safe Investments Amid Deflation
With China facing its most severe deflation in 15 years and its stock market in flux while bank interest rates remain unappealingly low, 18-year-old Tina Hong is turning to gold beans for financial stability.
Hong, a computer science student in Fujian province, began investing in gold beans in January due to their relatively low cost of about 600 yuan ($83) per gram. Seeing them as a secure investment, she has accumulated over two grams and plans to continue as long as their cost remains lower than international gold prices.
Gold beans, marketed as an entry point for young consumers into investment, have become highly sought-after items in Chinese jewelry stores. Generation Z, facing high youth unemployment and economic uncertainty, is now among the leading consumers of gold accessories in China, according to the 2023 China Jewelry Consumer Trends Report by Chow Tai Fook Jewellery Group Ltd.
This trend toward gold investment reflects a broader shift away from traditional investments in China. With the stock market declining and property values fluctuating, coupled with the central bank’s reduction of key interest rates, many are turning to asset-style jewelry like gold beans for both adornment and investment purposes.
However, some experts caution against investing in gold beans or other gold items due to their higher price compared to the commodity’s spot price. Instead, they suggest investing in gold exchange-traded funds (ETFs) for better returns.
Despite these warnings, the allure of gold persists, dominating discussions on social media platforms like Weibo. The belief in gold as a low-risk investment is prevalent among young consumers, especially as gold prices have reached historic highs in recent months.
The popularity of gold extends beyond social media chatter; sales of gold, silver, and jewelry reached a six-year high in December, with precious metals representing one of China’s fastest-growing consumer markets.
Even banks have capitalized on this trend, with China Merchants Bank Co. introducing its line of gold bean sets in July 2023.
However, consumers should be cautious as there are risks associated with purchasing gold beans, including the possibility of acquiring impure or counterfeit products. Despite these risks, the fascination with gold continues to grow among China’s youth, as seen through social media posts documenting gold purchases and exchanges, relationship milestones marked with gold gifts, and the proliferation of gold investing advice online.
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