27/05/2024
News & Impact
· Focus Today – FTSE Rebalancing - JSW Infra, Tata Technology, and IREDA added to FTSE All-World, All Cap index. US and UK market are shut today. US Nasdaq Compiste ended record high on Friday. Aurobindo Pharma, Divi’s Labs, Sun TV, PNC Infra, Astra Micro, Hindalco, Ashok Leyland, Aegis Logistics, PNC Infra, Astra Micro and Suzlon accounted good quarterly result . US Vix decline 7% to close below 12 level and US Dollar Index fell to 1-month low at below 105 as little hope of US Fed to cut interest rate after mixed bag economy data.. Results Today – LIC India, NMDC, National Aluminium, NMDC Steel, Natco Pharma. ADR/GDR – HDFC Bank up 2%, Axis Bank and L&T up over 1% each.
· Market Update Today – Rally in the US market on Friday, positive opening in the Asian markets, falling oil price to 2-month low and impressive corporate results, may open domestic bourses on a positive note. US market surged over 1% led by technology stocks rose after data showed American consumers tempered inflation expectations, bolstering sentiment regarding prospects for Federal Reserve rate-cuts this year. US Dollar Index (below 105) and US Vix (Volatility Index) fell to 1-month low at below 12 on expectation of rate cut by US Fed. Gift Nifty is flat to positive. On Friday, Equity benchmark Nifty ended marginally lower after hitting record highs of above 23000 level as traders were booking profit amid weakness in the global markets and ahead of the sixth phase voting tomorrow. US Inflation data, personal consumption and domestic final phase or 7th phase election voting will be in focus this week. There was huge short built up by FIIs in the market and Short covering in the market may not be ruled as less than two week left Union Election results (4th June) and May series F&O expiry. Traders buy on decline strategy to continue due to positive sentiment in the market. Good quality results, strong dividend payout by the RBI worth Rs 2.11 lakh to the Govt and 2-year high rural consumption to be boosted the market sentiment. Expect positive for pharma, defines, PSU Banks, metal and oil marketing companies.
· Global Market Summary – Nasdaq Composite gained over 1% to close record high, US Vix decline 7% to close below 12 level and US Dollar Index fell to 1-month low at below 105. Gold price fell to 1-month low at $2335/ounce and Brent crude declined to 2-month low to below 105 level.
· US Market – Major U.S. stock indexes rose Friday, with the technology-heavy Nasdaq Composite scoring a fresh record peak ahead of the three-day weekend honoring Memorial Day. Both S&P and Nasdaq surged0.7% and 1% respectively after University of Michigan data showed consumers expect prices will climb at a 3.3% annual rate over the next year, down from the 3.5% that was expected earlier in the month. In April, respondents expected year-ahead inflation of 3.2%.
· Asian Market –.Asian stocks tracked gains in US peers as an easing in US consumer inflation expectations bolstered the case for the Federal Reserve to cut rates this year. Markets in Australia, South Korea and Japan posted modest gains on Monday.
· European Market – European stocks have followed their US and Asian counterparts lower after traders pushed back expectations of interest rate cuts by the Federal Reserve following strong US economic data. UK, Germany and France Index declined 0.1% each.
· Gold – Gold fell for a third straight day after US economic data showed an expansion in business activity amid a pickup in inflation, which may delay the Federal Reserve from lowering borrowing costs. Gold slipped 1% to 1-month low at $2330/ounce.
· Oil Price Update – Brent crude fell to 2-month low at $82/bbl as markets reacted to concerns that elevated inflation could continue to stick around and hurt demand. However, there was conscern of geo-political impact on Israel and Gulf region.
· Nifty Technical Level – Nifty formed a small bodied Bullish candle on daily scale and has been making higher highs from the last ten trading sessions. It formed a Bullish candle on weekly frame and gave a consolidation breakout of the last few weeks. Now it has to hold above 22900 zones for an up move towards 23200 then 23350 zones whereas supports are shifting higher at 22850 then 22700 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a Bullish candle on the daily scale, as follow-up buying was witnessed after a strong surge from the previous session. On the weekly scale it formed a strong Bullish candle, indicating complete grip of bulls in the market. Now it has to continue to hold above 48750 zones for an up move towards 49250 then 49500 zones while on the downside the support has shifted higher at 48500 then 48250 levels.
· Previous Day Market Summary – Equity benchmark index ended marginally lower after hitting record highs as traders were booking profit amid weakness in the global markets and ahead of the sixth phase voting tomorrow. Sensex closed at 75,410, a marginal drop of 7 points from the previous day. Nifty concluded at 22,957, down by 10 points from its prior close. The Nifty also reached an all-time high of 23,026 during the trading session. FMCG, PSU, metal, and IT stocks witnessed profit booking while auto, oil & gas and banking stocks gained up to 0.5% each. Defense stocks continued to northbound journey after reporting strong quarterly results. Hindustan Aeronautics surged 4% to close at Rs5144 and BEL advance 3% to close at Rs297. The index surged on a record intra-day high boosted sentiment after FIIs were net buyers over Rs4600cr, highest single day buying this year and Index Future bought over Rs7200cr yesterday. However, profit booking seen in the last hour as traders were booking profit ahead of sixth phase voting of 58 seats to be held tomorrow. FIIs were net sellers Rs944cr while DIIs were net buyers Rs2320cr.
· Results Today – LICI, NMDC, National Aluminium, Sumitomo Chemical, Elgi Equipment, NMDC Steel, Natco Pharma, Lakshmi Machine Works, HBL power Systems, Astra Zeneca Pharma, GMDC., Jupiter Hotels, Electronics Mart, Indo Count Industries, TVSS, Jindal Worldwide, MSTC, Borosil Renewables, Garware Technical Fibres, Kirloskar Industries, IFB Industries, Jai Corp, TARC, Kewal Kiran Clothing, Lumax Auto Tech, NRB Bearings, and Flair Writing Industries.
· Major Events India - M&M Forging 29th May borad meeting for results and Bonus
· Actionable BUY – Adani Port, IDFC First Bank, Trent, HAL, MTARTECH, Concor, ABCapital, Jio Fin., Olectra and Idea.
· IPO details – Awifs IPO final day as 11.4 times subscribed
· F&O Ban – Bandhan BANK, Biocn, Hindustan Copper, GNFC, National Aluminum, India Cement, PEL and PNB.
· Corporate Action – Stovec Industries: Dividend Rs.115.
· Brokers Radar – NTPC TGT by Jefferies at 445, NTPC TGT by Citi at 467. Divi’s Lan TGT by Jefferies at 4050, Hindalco TGT by Jefferies at 825 from 810. GMR Airport TGT by Jeffeies at 100. Ashok Leyland TGT by Jefferies at 205 from 190. Morgan Stanley TGT on Manappuram Finance at 230
· Global Data Today – Germany - Business Climate, Import Price Index, Retail Sales and Wholesale Price Index. France - Retail Sales. China - Industrial Profits.
· Market Summary –Expect sales to grow faster than industry this fiscal: Tata JLR India. Jio Finance plans Device-Leasing Foray Via $4.3B Deals with Reliance. Paytm considering reduction of workforce by 20% amid rising employee costs. Defense Ministry points gun at Godrej's housing project with revenue potential of Rs.7, 000 crore in Mumbai. Sun Pharma Races to Develop Its Obesity Drug Amid Global Crunch. BSE to include Adani Ports in Sensex index from June 24 while Wipro to be dropped. Sun Tv, PNC Infra, Astra Micro, Hindalco, Ashok Leyland, Aegis Logistics, Aurobindo Pharma, Divi’s Labs, PNC Infra, Astra Micro and Suzlon accounted good quarterly result. Century ply, EID Parry, PSP Project, Manappuram Finance and Cheviot performed poor and below expectations results. Tata Power seeks up to $1 billion loan for clean energy projects.
· Tata Motor – Tata Motor’s Range Rover to start local assembly of flagship models at Jaguar Land Rover's facility in Pune. Company expects to grow faster than the luxury car segment this fiscal – positive
· ICICI Bank – RBI approved Pradeep Kumar Singha as ICICI Bank Chairman – Positive
· Indian Oil Corporation: The company acquired a 100% stake in Mercator Petroleum for Rs 154 crore – positive
· TVS Motor Company: The company announced the launch of the TVS HLX 125 with 5-gears in Tanzania – positive
· NTPC: The company's Q4 coal plant PLF was at 79.77% vs. 80.32% YoY, Q4 commercial generation was at 92.967 BU vs. 89.445 BU YoY and Q4 captive mine coal output at 7.87 MT vs 6.48 MT YoY. – positive
· Godrej Properties: The company clarified on the reports on the Mumbai project that it has not received communication from any concerned authority citing non-compliance – we are long term positive on the stock
· Tata Steel: The NCLT of Kolkata Bench approved the scheme of amalgamation with Indian Steel & Wire Products The approval is pending from the Mumbai NCLT bench. – positiove
· RVNL: The company emerged as the lowest bidder for the construction project worth Rs 187 crore from MMRCL. – positive
· Vodafone Idea: The deal to sell Firefly Networks' stake to Manipura Digital Infrastructure is terminated due to non-fulfillment of certain conditions
· Bosch: The company approved the sale of OE/OES diagnosis business from Mobility Aftermarket to ETAS Automotive for Rs 45.6 crore.- positive
· Macrotech Developers: The company acquired the remaining 50% stake of Siddhivinayak Realties arm for Rs 415.6 crore. – positive
· Dr Reddy’s: The company’s Russia-based arm in a pact with Novartis Pharma to sell anti-diabetes products in Russia.- Positive
· Reliance Industries – Company has sought the Competition Commission of India's approval for the $8.5-billion merger of Viacom18 and Star India Pvt. Post the merger, Star India will become a joint venture, held by RIL, Viacom18 and existing TWDC subsidiaries. – Positive
· Tata Power – Company is planning to raise as much as $1 billion-equivalent for clean energy projects, in what could be the country’s largest local currency loan this year. – positive
· Jio Financial Services – Company is seeking the approval of its shareholders for related party deals worth Rs36000cr ($4.3 billion) with group firm Reliance Industries’ retail unit.
· DLF – Company’s Joint MD & Chief Business Officer Aakash Ohri expects India's luxury real estate market to surge, with demand for superior homes and services. He speaks with Haslinda Amin on "Bloomberg Markets: Asia." – Positive
· Brahmaputra Infra – Company wins Rs70cr order – positive
· Shakti Pumps – Company receiving 14th patent for Innovative Motor Technology – positive
· Paytm - Company plans to reduce employee cost, digital payments firm Paytm might cut around 15-20 per cent of its workforce in the current financial year. In light of mounting losses, Paytm has initiated an employee cost reduction plan targeting to save Rs 400-500 crore. This could potentially result in a reduction of 5,000-6,300 employees – long term positive
· Godrej Properties – The Defense Ministry has raised objections to a residential project undertaken by Godrej Properties in Mumbai, demanding the suspension of work on the venture. With an estimated revenue potential of Rs 7,000 crore, the project
· Sun Pharma – Company has its sights on one of the largest and fastest-growing markets in medicine, as India’s generic drug giant refines its push into innovative treatments that cater to patients globally. – positive
· Hindalco Industries – Company secured its board's approval to purchase a fabrication facility of Home Build Tech India for Rs34cr in cash. The acquisition will help the company accelerate the retail business of its "Eternia" brand, - positive
· Adani Ports & Wipro - Asia Index Pvt a joint venture of S&P Dow Jones and BSE, has added Adani Ports to its flagship S&P BSE Sensex Index after a review, It dropped Wipro from the benchmark index. Separately, Zee Entertainment, SBI Cards, ICICI Prudential Life, Jubilant Foodworks and Page Industries were excluded from the S&P BSE 100 Index – positive for adani ports.
· Gland Pharma - The USFDA completed inspection at Visakhapatnam API facility with zero Form 483 observations. – Positive
· Aurionpro Solutions – Company announced a strategic collaboration with Fime to explore opportunities in the field of transit ticketing, payments, and fare collection projects worldwide – positive
· UFLEX – Company gets Rs149cr tax demand for assessment year 2020-21 – Avoid
· Steel Strips – Company gets 8mn Euro order from European OEM – Positive
· MindSpace REIT – Company rolls out electric shuttle service in Hyderabad – positive
· Dividend – Hindalco Rs3.50, Sundaram Finance Rs16, Indiabull Housing Rs2. NTPC Rs3.50
· Hindalco Q4 Ebitda and Ebitda margin ahead of expectation. Q4 Net Profit Rs.3174 cr (up 31.6 % YoY) - expectation Rs.2900, EBITDA Rs.6681 cr (up 25.4% YoY) - expectation Rs.6300, EBITDA Margin 12% vs 9.5% (YoY) - expectation 11.9% and Income Rs.55994 cr (up 0.2 % YoY) - expectation Rs.53200 cr.
· Divi’s Lab Q4 Ebitda and Ebitda margin ahead of expectation. Revenue up 18% (YoY) to Rs 2,303 crore - estimate: Rs1925cr, Ebitda up 50% (YoY) to Rs 731 crore - Estimate: Rs517crore, Ebitda Margin at 31.7% versus 25% (YoY) - estimate: 26.8%, and Net profit up 68% (YoY) at Rs 538 crore - estimate: Rs382.8crore.
· Aurobindo Pharma Q4 Ebitda and Ebitda margin ahead of expectation. Consolidated Net profit Rs909cr (up 80% YoY) – Expectation Rs720cr, US revenue Rs3590cr (up 22% YoY) – Expectation growth 21%. Consolidated Ebitda Rs1687cr (up 68% YoY) – Expectation Rs1500cr, Ebitda margin at 22.3% vs 15.5% (YoY) – Expectation 20.6%
· Consolidated Revenue Rs7580cr (up 17% YoY) – expectation Rs7310cr and Rest of the world revenue Rs852cr (up 49% YoY) - estimate Rs623cr.
· Ashok Leyland Q4 Ebitda and Ebitda margin ahead of expectation Results. Q4 Net Profit Rs.900.4 cr (up 19.8 % YoY) - expectation Rs.811.8cr, EBITDA Rs.1592 cr (up 24.8% YoY) - expectation Rs.1477, EBITDA Margin 14.1% vs 10.9% (YoY) - expectation 13.2% and Income Rs.11266.7 cr (down 3.1 % YoY) - expectation Rs.11186 cr
· Century Ply announced weak Q4 Results. Net Profit Rs.79.5 cr (down 30.6% YoY), EBITDA Rs.137 cr (down 16.2% YoY), EBITDA Margin 13% vs 17% (YoY) and Income Rs.1061 cr (up 10% YoY)
· EID Parry announced poor Q4 Results - Net Profit Rs.220.3 cr (up 23.1% YoY),EBITDA Rs.469.4 cr (down 27% YoY) , EBITDA Margin 8.4% vs 9.4% (YoY) and Income Rs.5557 cr (down 13% YoY)
· Aegis Logistics reported strong Q4 Results. Net Profit Rs.196.3 cr (up 39.2% YoY), EBITDA Rs.306.8 cr (up 51.1% YoY), EBITDA Margin 14% vs 9% (YoY) and Income Rs.1837.2 cr (down 14.7 % YoY)
· PSP Projects announced weak Q4 Results - Net Profit Rs.15.5 cr (down 66 % YoY), EBITDA Rs.51.8 cr (down 35.5% YoY) , EBITDA Margin 7.8% vs 11.1% (YoY) and Income Rs.667.8 cr (down 8.5 % YoY)
· Cheviot announced poor Q4 Results - Net Profit Rs.15 cr (up 9.5 % YoY), EBITDA Rs.10.5 cr (down 42% YoY),EBITDA Margin 8.6% vs 13.4% (YoY) and Income Rs.122.8 cr (down 9% YoY)
· HUDCO Q4 Results in line with expected Q4 results: Net Profit Rs.700.2 cr (up 9.7% YoY), EBITDA Rs.817.1 cr (down 4.7% YoY), EBITDA Margin 39.6% vs 46.3% (YoY) and Income Rs.2065.2 cr (up 11.5% YoY).
· Suzlon Q4 reported strong Ebitda and Ebitda margin. Net Profit Rs.254 cr (down 8.6% YoY), EBITDA Rs.357.2 cr (up 53.4% YoY), EBITDA Margin 16.3% vs 13.7% (YoY) and Income Rs.2196 cr (up 30% YoY) .
· Manappuram Finance Q4 Results – Lower than expected NII and net profit: Net Profit Rs.563.5 cr (up 35.7% YoY) - expectation Rs.596 cr, NII Rs.1494 cr (up 32% YoY) - expectation Rs.1532 cr, Income Rs.2360cr (up 11.5% YoY) - expectation Rs.2305 and Dividend Rs.1/Share.
· Astra Micro announced strong Q4 Results. Net Profit Rs.54.4 cr vs 13.5cr, EBITDA Rs.80.71 vs 34.3 cr , EBITDA Margin 22.8% vs 13.3% (YoY) and Income Rs.354 cr (up 37% YoY)
· Sun TV announced impressive Q4 Results. Net Profit Rs.414.7 cr (up 9.1% YoY), EBITDA Rs.522.9 cr (up 5% YoY), EBITDA Margin 54.4% vs 59.2% (YoY) and Income Rs.961.3 cr (up 14.4% YoY)
· PNC Infratech announced strong Q4 results. Revenue at Rs 2,600 crore (up 12.8% YoY), EBITDA at Rs 736 crore (up 79.3% YoY), Ebitda Margin at 28.3% vs 17.8% (YoY) and Net profit at Rs 396 crore (up 146% YoY)
· Torrent Pharma Q4 announced inline with expected Q4 results - Net Profit Rs.449 cr (56.5 % YoY) - expectation Rs.490 cr, EBITDA Rs.883. cr (up 21.5 % YoY) - expectation Rs.890cr, EBITDA Margin 32.2% vs 29.02% (YoY) - expectation 32.2%, Income Rs.2745 cr (up 10.2% YoY) - expectation Rs.2780 cr
· Bosch Q4 reported marginally lower than Ebitda and Ebitda margin. Net Profit Rs.564.4 cr (up 41.5% YoY) - expectation Rs.484.1cr, EBITDA Rs.557.2 cr (up 6.7% YoY) - expectation Rs.621.2 cr, EBITDA Margin 13.2% vs 12.9% (YoY) - expectation 13.6% and Income Rs. 4233.4 cr (up 4.2% YoY) - expectation Rs.4571.2 cr
· IndiaBulls Housing Q4 Results - Net Profit Rs.319 cr (up 21.6% YoY), Income Rs2200cr (up 6% YoY) , Provision Rs.290cr (up 28% QoQ).
· Karnataka Bank Q4 Results - Net Profit Rs.272.2 cr (down 22.5% YoY), NII Rs.834.1cr (down 3% YoY), Net NPA 1.58% vs 1.55% (QoQ), Gross NPA 3.53% VS 3.64% (QoQ)
· Provisions Rs.185 cr (up 28% QoQ) and Income Rs.2360cr (up 11.5% YoY).
· Cochin Shipyard Q4 Results - Net Profit RS.258.3cr (up 21% YoY), EBITDA Rs.288.3 cr and Income Rs.1286cr (up 5.8% YoY)
· Astra Micro announced strong Q4 Ebitda and Ebitda margin. Net Profit Rs.54.4 cr vs 13.5cr. EBITDA Rs.80.71 vs 34.3 cr, EBITDA Margin 22.8% vs 13.3% (YoY) and Income Rs.354 cr (up 37% YoY)
· Sun TV announced impressive Q4 Results. Net Profit Rs.414.7 cr (up 9.1% YoY). EBITDA Rs.522.9 cr (up 5% YoY). EBITDA Margin 54.4% vs 59.2% (YoY) and Income Rs.961.3 cr (up 14.4% YoY)
· PNC Infratech announced strong Q4 results - Revenue at Rs 2,600 crore (up 12.8% YoY), EBITDA at Rs 736 crore (up 79.3% YoY), Ebitda Margin at 28.3% vs 17.8% (YoY) and Net profit at Rs 396 crore (up 146% YoY).
· NTPC announced impressive Q4 results - Revenue up 7.6% at Rs 47,622 crore versus Rs 44,253 crore (Bloomberg estimate Rs 45,278 crore). Ebitda up 18.9% at Rs 14,195 crore versus Rs 11,943 crore (Bloomberg estimate Rs 13,115 crore). Margin up 281 bps at 29.8% versus 27% (Bloomberg estimate 29%). Net profit up 33.2% at Rs 6,490 crore versus Rs 4,872 crore (Bloomberg estimate Rs 5,331 crore).
