Share Market Highlights 04 Aug 2023: Sensex gains 480 pts, Nifty settles above 19500

Devyani International Ltd, a quick service restaurant (QSR) operator, on Friday reported a consolidated net loss of Rs 1.59 crore for the first quarter that ended on June 2023 on account of currency devaluation in the Nigerian market.

The company, which is the largest franchisee of Yum Brands in India for Pizza Hut and KFC, and Costa Coffee -- a coffee chain brand owned by Coca-Cola -- had reported a net profit of Rs 74.76 crore in the April-June quarter a year ago.

Shares of Devyani International Ltd on Thursday settled at Rs 188.70 on BSE, down 2.83 per cent from the previous close.

CESC Ltd on Friday posted about 24 per cent rise in consolidated net profit to Rs 368 crore for June quarter 2023-24, on account of higher income.

It had logged Rs 297 crore profit in April-June 2022-23, the company said in a regulatory filing.

Total income rose to Rs 4,369 crore from Rs 4,146 crore in the year-ago quarter.

The stock gained 0.75% to close at Rs 78.87 on BSE.

​Bharat Heavy Electricals Ltd ​on Friday reported the widening of its consolidated net loss to Rs 343.89 crore in the April-June quarter compared to the year-ago period mainly due to higher expenses.

The company had reported a consolidated net loss of Rs 187.99 crore in the quarter ended on June 30, 2022, a BSE filing showed.

The stock lost 1.8% and closed at Rs 98.95 on BSE.

Goldman Sachs maintains view that the RBI will keep the policy repo rate unchanged at 6.5% during its next bi-monthly monetary policy review meeting next week. It further said that the central bank will continue with hawkish guidance. RBI will announce the policy on August 10.

Welspun Corporation reported a jump in first-quarter profit on Friday, aided by strong demand for its steel products as sales more than tripled, offsetting a surge in expenses, per a Reuters report.

The company’s consolidated net profit rose to Rs 165 crore from Rs 4.11 crore a year earlier.

Welspun shares rose as much as 4.4% to a near 15-year high before paring the gains to fall 2.71% to Rs 321.70 on BSE.

The Indian rupee weakened to a fresh two-and-half-month low on Friday, which led to its biggest weekly drop in a month, due to the selloff in Asian currencies after Fitch downgraded the US sovereign rating, per a Reuters report.

The rupee ended 0.14% lower at 82.84 per dollar, taking its loss for the week to 0.7%, which is its worst weekly drop since the week ending July 7.

Brookfield India Real Estate Trust will garner Rs 400 crore by issuing units to sponsor group entity Project Diamond Holdings on preferential basis and also plans to raise up to Rs 750 crore through issue of commercial papers to finance acquisition of two commercial assets in Gurugram and Mumbai.

In May, Brookfield India REIT and Singapore’s GIC announced an equal partnership to acquire two commercial properties in India for USD 1.4 billion or Rs 11,225 crore.

Realty firm DLF’s net debt has come down by 92 per cent to Rs 57 crore -- the lowest level -- at the end of the first quarter of this fiscal on better cash flow driven by strong housing sales.

The share settled 0.27% higher at Rs 489.50 on BSE.

SBI posted over two-fold jump in standalone net profit at Rs 16,884 crore for the first quarter of the current financial year, helped by decline in bad loans and improvement in interest income.

State Bank of India (SBI) had reported a net profit of Rs 6,068 crore in the April-June quarter of 2022-23

On a consolidated basis, Mahindra and Mahindra’s net profit was up 60 per cent y-o-y at Rs 3,508 crore, while revenue rose 19 per cent at Rs 33, 892 crore. On a standalone basis it’s revenue was up 23 per cent at Rs 24,368 crore while net profit nearly doubled to Rs 2774 crore. Operating profit was 46 per cent higher at Rs 46 per cent.

The stock settled 0.22% lower at Rs 1,465.05 on BSE.

Dr Reddy’s Laboratories informed that the company has received the Establishment Inspection Report (EIR) following the inspection conducted by USFDA at the company’s API manufacturing facility in Bollaram, Hyderabad.

The Agency has classified the inspection as Voluntary Action Indicated (VAI) and concluded that the inspection is closed. Shares declined by 0.29% on the NSE, valued at ₹5,643 per share.

MOIL reported that its net profit for the quarter ended June 30, 2023 was at ₹86.57 crore against ₹102.78 crore in the previous year. The stock settled over 6.5% on BSE.

SBFC Finance IPO has been subscribed 4.63 times as of 3:30 pm on August 4, 2023. The QIB portion has been subscribed 1.05 times; NII portion 10.17 times; retail 4.38 times, and those reserved for employees stood at 2.15 times.

Stel Holdings stock falls by 5% on BSE, trading at ₹223.25. The company reported net profit for the quarter ended June 30, 2023, at ₹22.72 lakh as against ₹10.41 lakh in the previous year.

Equity benchmark indices Sensex and Nifty snapped their three-session losing streak to close nearly 1 per cent higher on Friday, buoyed by gains in HDFC Bank, Reliance Industries and Infosys amid a largely firm trend in global markets.

After three days of decline, the 30-share BSE Sensex climbed 480.57 points or 0.74 per cent to settle at 65,721.25. During the day, it jumped 558.59 points or 0.85 per cent to 65,799.27.

The NSE Nifty advanced 135.35 points or 0.70 per cent to end at 19,517.

IndusInd Bank was the biggest gainer in the Sensex pack, rising 3.25 per cent, followed by Tech Mahindra, Wipro, Bharti Airtel, HCL Technologies, Axis Bank, HDFC Bank, RIL, TCS, L&T and Infosys.

State Bank of India, NTPC, Maruti, Bajaj Finserv, Tata Motors and Power Grid were among the laggards, slipping up to 2.94 per cent.

Major gainers: IndusInd (3.59%); Cipla (3.54%); Tech Mahindra (3.24%); Wipro (2.41%); Bharti Airtel (2.35%)

Major losers: State Bank of India (-2.59%); Bajaj Auto (-2.20%); BPCL (-1.86%); NTPC (-0.59%); Eicher Motors (-0.57%)

Vega Industries (Middle East) FZC,UAE, a wholly-owned subsidiary of AIA Engineering Ltd, has entered into an agreement to acquire 30% stake in the business of Mining Products and Service Pty. Ltd., (MPSL Australia). The stock of AIA Engineering trades at ₹3,418, down by 0.01% on the NSE.

Stocks advanced on BSE at 3 pm on August 4 were 2,213 against 1,331 stocks that declined. Total stocks traded were 3,701. The number of stocks that recorded a 52-week high 240, and those that hit a 52-week low was 26.

Housing & Urban Development Corporation reported consolidated net profit for the quarter ended June 30, 2023, at ₹445.65 crore as against ₹411.71 crore in the previous year. The stock slumped 2.6 per cent to Rs 62.20.

Edtech unicorn Byju’s and its lenders have missed the August 3 timeline to rework the $1.2-billion loan agreement.

Byju Raveendran has a call with the lenders next week, a source familiar with the matter said, and added that the edtech major had never committed to any such date.

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Happiest Minds Technologies Ltd’s shares went up by 1 per cent after the company reported its advancement in the ServiceNow Consulting and Implementation Partner Program.

Leveraging the ELLIPSE MSP platform powered by ServiceNow, Happiest Minds aims to deliver Intelligent IT and Enterprise Service Management solutions to facilitate customers’ digital transformation needs.

LIC Housing Finance Ltd’s shares went up by 9 per cent after profit increased 42 per cent to Rs 1,319 crore in the quarter ended June 30, 2023, compared to Rs 926 crore in the corresponding quarter last year.

Revenues increased 27 per cent to Rs 6,759 crore, compared to Rs 5,302 crore last year. Sequentially, profits were 10 per cent higher, compared to Rs 1,190 crore in the previous quarter.

Shares of Chennai-based Pondy Oxides and Chemicals, a secondary lead smelter, are up 20% at Rs 501.8 apiece and locked in upper circuit backed by high volumes.

The smallcap company’s board is expected to consider June-2023 quarter results on August 11.

“For the month of July 2023, the wholesale volumes reported by auto OEM’s saw mixed performance. As per our estimates, the domestic passenger vehicle industry wholesale volumes increased by mid-single digit over July 2022. SUV segment demand trend remained steady, but hatchback segment continue to see weakness. In the two wheeler segment, top players reported mixed performance.

Two wheeler export segment remained weak on a yoy basis. As per our estimate, the commercial vehicle segment volumes remained flat yoy. MHCV (medium & heavy commercial vehicle) segment wholesale volume saw growth over July 2022. Domestic tractor segment demand remained strong in July 2023 with estimated yoy growth of low double digit. Given new launches, competitive intensity will increase in utility vehicle and premium motorcycle segments.”

State Bank of India’s first quarter net profit soared 178 per cent to Rs 16,884 crore on the back of sharp increase in other income, robust net interest income growth and decline in loans loss provisions.

Net profit in the year ago quarter was at Rs 6,068 crore.

Net interest income was up 25 per cent yoy at Rs 38,906 crore (Rs 31,196 crore).

Other income soared to Rs 12,063 crore (Rs 2,312 crore).

Loan loss provisions declined 38 per cent to Rs 2,652 crore (Rs 4,288 crore).

Kotak Funds - India Midcap Fund (the fund), a UCITS fund domiciled in Luxembourg, managed by Kotak Mahindra Asset Management (Singapore) Pte. Ltd. (subsidiary of Kotak Mahindra Bank Limited) has achieved another milestone by crossing the USD 2.5 billion AUM (Assets Under Management) mark. With a proven track record spanning over 13 years, the Fund has performed well and has generated returns of 13.37% CAGR in USD terms over a period of 10 years (as on June 30, 2023).

The Fund aims to achieve long term capital appreciation by primarily investing at least two thirds of its total assets in equity and equity-linked securities of mid-capitalisation companies registered in India or deriving significant portion of their business from India.

Indoco Remedies has resumed production at its Waluj, Aurangabad plat, which was temporarily disrupted due to the fire accident. However, the stock slides 0.62% on the NSE, trading at ₹322.

TCI Express stock slides by 0.12% on the NSE, trading at ₹1,534.05. The company reported consolidated net profit for the quarter ended June 30, 2023, at ₹32.33 crore as against ₹31.01 crore in the previous year.

HDFC Mutual Fund has informed that the closing date of New Fund Offer (NFO) of HDFC Charity Fund for Cancer Cure (the Scheme) has been extended from August 8, 2023 to August 10, 2023. Accordingly, the NFO of the Scheme will now close for subscription on August 10, 2023.

SBFC Finance IPO has been subscribed 3.69 times as of 2.03 pm on August 4, 2023. The QIB portion has been subscribed 0.52 times; NII portion 7.90 times; retail 3.76 times, and those reserved for employees stood at 1.93 times.

Shares of diversified financial services group JM Financial are down 6.6% after soft Q1 earnings led by NBFC. June 2023 quarter net profit (after tax, NCI and share of associate) stood at Rs 165.9 crore, down 2.4% yoy while total income grew 34.2% to Rs 1081.1 crore. Gross NPA % came at 3.96% vs QoQ 3.35% and Net NPA % came at 2.32% vs QoQ 2.14%. Stock trades at nearly 1x trailing price/book value.

Sterling and Wilson Renewable Energy stock rises 2.18% on the NSE, trading at ₹392. The company had bagged orders worth ₹826 crore in the first four months of FY 2023-24.

Hatsun Agro Product stock trades at ₹1,025.65, up by 0.04% on the NSE. The company had commercial production at its Chocolate Manufacturing Unit with a capacity of manufacturing up to 7,000 kg of chocolate per day at the Govindapur facility situated at Zaheerabad Mandal, Sangareddy District, Telengana from August 3.

Major gainers: Zomato (10.03%); Rattanindia (9.61%); Lloyds Steel (9.04%); LIC Housing Finance (8.38%); Religare# (6.80%)

Major losers: Sandur (-7.66%); JM Financial (-6.55%); MGL (-5.17%); NAVA (-5.03%); KPIL (-4.88%)

Filatex India stock rises by 1.36% on the NSE, trading at ₹40.90. The company reported consolidated net profit for the quarter ended June 30, 2023, at ₹17.62 crore as against ₹43.39 crore in the previous year.

Panacea Biotec informed the exchanges about the resignation of Neeraj Joshi, President – Sales & Marketing International Pharma & Vaccine India Business of the company’s material subsidiary, Panacea Biotec Pharma Limited. The stock declines by 0.96% on the NSE, trading at ₹134.05.

QSR player Devyani International has appointed Sreejit Madhavan Nair as CEO – Costa Coffee with effect from August 4, 2023. Costa Coffee, a core brand of Devyani, racked up Rs 32 crore sales (77% gross margin) in Q1 from its 123 stores.

Nair comes with a track record of over 23 years including strategic leadership roles across Consumer Goods categories. He has held prominent leadership roles with leading companies like PepsiCo, Henkel Arabia and P&G as well as startups like Raw Pressery and Wingreens Farms.

Vardhman Textiles stock declines by 1.96% on the NSE, trading at ₹343.20. The company reported its net profit for the quarter ended June 30, 2023, at ₹131.43 crore as against ₹313,35 crore in the previous year.

The Centre’s decision to impose an import licence on IT hardware, including tablets and laptops, could impact sales during the upcoming season. This would further hurt IT hardware players as personal computing shipments have been depressed over the last few quarters.

Shares of Alembic Pharmaceuticals stock inches up by 0.41% on the NSE, trading at ₹784.20. The company reported consolidated net profit for the quarter ended June 30, 2023, at ₹120.60 crore as against loss of ₹65.88 crore in the previous year.

Nucleus Software Exports stock declines by 3.62% on the NSE, trading at ₹1,130.05. The company reported consolidated net profit for the quarter ended June 30, 2023, at ₹53.56 crore as against ₹10.77 crore in the previous year.

Magadh Sugar & Energy stock rises by 2.71% on the NSE, trading at ₹483.90. The company reported consolidated net profit for the quarter ended June 30, 2023, at ₹15.53 crore as against ₹7.88 lakhs in the previous year.

Shares of QSR player Devyani International Limited (DIL) dropped 3% after weak Q1 report. In Q1FY24, revenue from operations increased by 12.1% on QoQ basis, reaching Rs. 8,466 million, led by new store additions and strong revenue contribution by KFC.

The reported EBITDA, post-IND-AS, grew by 14.6% QoQ to Rs. 1,734 million, resulting in an EBITDA margin of 20.5%, with a PBT of Rs. 130 million. The consolidated PBT got impacted because of significant currency devaluation in Nigeria.

The recovery in Taro revenues which focuses on derma should have a positive read through for Glenmark Pharma. India sales grew below expectations as one product lost exclusivity and pricing impact from NLEM. India segment revenues for Pharma companies may be impacted by NLEM pricing restrictions, as has been reported by Sun, Cipla and Dr. Reddy’s so far.

​Zomato​ stock jumps 10.80% on the NSE, trading at ₹95.90. The company reported its first-ever consolidated profit after tax of ₹2 crore in the April-June quarter of 2023-24.

Oswal Greentech Ltd reported its net profit for the quarter ended June 30, 2023, at ₹9 crore as against ₹11.28 crore in the previous year. However, the stock rises by 1.75% on the NSE, trading at ₹23.30.

Mahindra & Mahindra reported consolidated net profit for the quarter ended June 30, 2023, at ₹3,683.87 crore as against ₹2,360.70 crore. The stock rises by 1.89% on the NSE, trading at ₹1,496.95.

Dilip Buildcon stock jumps 3.57% on the NSE, trading at ₹320.20. The company reported its consolidated profit after tax for the quarter ended June 30, 2023, at ₹12.3 crore as against loss of ₹55.1 crore in the previous year.

JK Tyre & Industries reported its consolidated net profit for the quarter ended June 30, 2023, at ₹159.34 crore as against ₹33.87 crore. The stock rises 3.98% on the NSE, trading at ₹275.55.

The orthodox tea market continued to witness subdued demand due to the lack of export orders, forcing traditional exporters at the Kochi tea auctions to stay away from the market.

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The contribution of bulk drug imports from China has increased in terms of value and volume from 64% and 62% during FY14 to 71% and 75% during FY23, respectively. In terms of value, during FY14 to FY23, the total bulk drug imports increased at a CAGR of about 7% as against 9% from China.

India continues to rely heavily (>50%) on some of the critical Key Starting Materials (KSM) from China.

Commissioning of bulk drug projects under the production-linked incentive (PLI) scheme along with backward integration projects undertaken by various Indian companies is expected to play a critical role in reducing our dependence on China to an extent.

In FY24, it is estimated that projects worth USD 516 million are expected to be commissioned. This is on accord of the PLI scheme introduced by the government and an increase in demand for bulk drugs.

CareEdge Ratings believes that despite the envisaged commissioning of various projects under the PLI scheme, the dependency on the import of bulk drugs from China would remain high at about 65% going forward.

Europe markets open flat with key indices across Germany, UK, France and Italy trading in the range of 0 to 20 bps. Major Asian markets too were trading largely flat to up today. US bond yields spiked yesterday as concerns of persistent inflation, Fitch ratings downgrade and concerns of high bond issuance by US Treasury pressured bond prices. This has tempered equity markets also to an extent.

Market participants await US July jobs data, which will be released in few hours from now and provide a cue on economy.

Rane Holdings reported its consolidated net profit for the quarter ended June 30, 2023, at ₹12.1 crore as against ₹20.6 crore in the previous year. The stock trades at ₹983.60, up by 0.06% on the NSE.

Happiest Minds Technologies Limited announced it has advanced in the ServiceNow Consulting and Implementation Partner Program to help organisations with their digital transformation needs. The stock inches up by 0.97% on the NSE, trading at ₹925.60.

Dr Agarwal’s Eye Hospital reported its net profit for the quarter ended June 30, 2023, at ₹11.54 crore as against ₹9.11 crore in the previous year. The stock rises 3.26% on BSE, trading at ₹1899.35.

Gujrat Gas Ltd’s shares went down by 1 per cent after the company reported a 43 per cent decrease in profit for the quarter ended June 30, 2023, at Rs 215.95 crore, compared to Rs 381.90 crore in the corresponding quarter last year.

Revenues were down 26 per cent at Rs 3,923.70 crore, compared to Rs 5,303.23 crore last year. Sequentially, profits were lower by 41 per cent, compared to Rs 370.50 crore in the previous quarter.

Punjab Chemicals and Crop Protection Ltd’s shares went up by 14 per cent after the company reported a 7.8 per cent increase in profit at Rs 21.86 crore for the quarter ended June 30, 2023, compared to Rs 20.26 crore in the corresponding quarter last year.

Revenues were up 3.39 per cent at Rs 2.81 crore, compared to Rs 2.72 crore last year. Sequentially, profits were higher by 583 per cent, compared to Rs 3.02 crore in the previous quarter.

SBFC Finance IPO has been subscribed 3.16 times as of 12:12 pm on August 4, 2023. The QIB portion has been subscribed 0.51 times; NII portion 6.59 times; retail 3.24 times, and those reserved for employees stood at 1.71 times.

Navneet Education stock falls by 4.90% on the NSE, trading at ₹142.55. The board had approved sale of immovable property situated at Ghuma taluka, Ahmedabad at Gujarat for consideration of ₹40 crore to Company’s promoter group entity.

Shares of SJVN inches up by 0.96% on the NSE, trading at ₹57.80. The company had signed MoU with Sikkim Urja Limited (SUL) to trade 180 MW hydro power from SUL’s 1200 MW Teesta-III hydro electric project in Sikkim to distribution licensees and open access consumers.

This marks the third consecutive month of increased stockpiles, with a growth rate of 4.2 per cent compared to June, totaling 1.79 million tonnes. Additionally, the country’s palm oil output, as the world’s second-largest producer, is projected to rise by 9.2 per cent to 1.58 million tonnes, the highest level since December. Moreover, exports are expected to surge by 8.5 per cent, reaching 1.27 million tonnes.

KEC International stock inches up by 0.58% on the NSE, trading at ₹649.95. The company had secured new orders of ₹1,065 crores across its various businesses.

Major gainers: Cipla (3.61%); IndusInd (2.62%); Coal India (2.48%); Wipro (1.85%); Eicher Motors (1.79%)

Major losers: Bajaj Auto (-1.46%); Sun Pharma (-1.08%); BPCL (-1.02%); Power Grid (-0.60%); Apollo Hospitals (-0.39%)

Stocks advanced on BSE at 12 noon on August 4 were 2,312 against 1,095 stocks that declined. Total stocks traded were 3,566. The number of stocks that recorded a 52-week high 204, and those that hit a 52-week low was 24.

Vikas EcoTech has received orders worth ₹20 crore for supplying Coal to Prism Johnson Limited promoted by the Rajan Raheja Group. The stock rises by 1.64% on the NSE, trading at ₹3.10.

State Bank of India’s (SBI) net profit is likely to more than double in the first quarter vis-a-vis year ago period buoyed by robust net interest income and fee income and low credit costs, according to broking firms.

India’s largest bank is likely to post a net profit of about ₹13,200 crore against ₹6,068 crore in the year ago period, based on an average estimate by 10 broking firms.

The Nifty 50 (19,450) and Sensex (65,450) are up one-third of a per cent so far today. The Indian indices are up despite the Asian market remaining mixed.

The positive bias is supported by the market breadth. For instance, the advances/ declines ratio of the Nifty 50 stands at 37/13. Also, all the mid- and small-cap indices are in the green.

Madhav Infra Projects received of letter of acceptance (LOA) from ONGC for design, engineering, procurement & supply, construction & installation, commissioning, associated transmission system and operation & maintenance of 15 MW (AC) Solar Photovoltaic Grid Connected power plant. The stock jumps 4.60% on the BSE, trading at $6.37.

Cochin Minerals and Rutile Ltd.’s shares went down by 10.67 per cent after the company reported a 73 per cent decrease in profit for the quarter ended June 30, 2023, at ₹2.26 crore compared to ₹8.43 crore during the corresponding quarter last year.

The company’s revenues were down by 32 per cent to ₹66.76 crore. Sequentially, the company’s profits were lower by 82 per cent compared to ₹12.99 crore in the previous quarter.

The shares went down by 10.67 per cent to ₹242.85 at 10.21 am on BSE.

Zomato has delivered profitability earlier than promised. There is clarity on vastly improving revenue growth. This company in a duopoly business has a long runway for growth. For those investors who bought at low rates partial profit booking is fine. It makes sense to remain invested in this growth stock.

Price hikes, higher sales volumes, and a lowering in input costs will likely have tractor and SUV maker Mahindra & Mahindra reporting good profit and revenue numbers in the June quarter, with growth seen both on-year and on-quarter.

The Street has estimated net profit at Rs 1,906 crore, up 33 per cent on-year, and revenue at Rs 23,892 crore, up 22 per cent on-year.

Tata Consultancy Services won the retail partnership of the year award at the Retail Systems Awards, for the loyalty platform co-created by both partners. The stock rises by 1.43%, trading at ₹3,448.70.

KPI Green Energy rises by 1.74% on the NSE, trading at ₹839.05. The company had bagged the Gujarat Urja Vikas Nigam Limited (GUVNL) tender for development of Solar Photovoltaic Power Project.

Firstsource Solutions has launched its new AI platform - FirstSenseAI - that enables companies to capture real-time customer data and use it to power intelligent, personalised interactions with instant insights and decision-making.

Stock up 3.4 pc at Rs 148.80

Haldyn Glass Ltd’s shares went up by 9 per cent after the company reported a 38 per cent increase in profit at Rs 9.14 crore for the quarter ended June 30, 2023, compared to Rs 6.59 crore in the corresponding quarter last year.

The rupee witnessed a range-bound trading against the US dollar in early trade on Friday, as the support from positive domestic equities was negated by firm crude oil prices.

Forex traders said the rupee opened on a flat note as losses in dollar index, and positive Asian currencies supported sentiments, while rise in crude oil prices dented investors.

At the interbank foreign exchange, the rupee was trading in a narrow range. It opened at 82.73 against the dollar, and touched a low of 82.77 and a high of 82.72.

On Thursday, the rupee closed at 82.74 against the US currency.

• Aayush Food
• Aditya Birla Fashion and Retail
• Alembic Pharmaceuticals
• Aro Granite
• Authum Investment
• Axiscades
• Bhagiradha Chemicals
• Bharat Dynamics
• BHEL
• Binani Industries
• Bombay Cycle
• Bombay Wire
• Britannia Industries
• CAMS
• CESC
• Dilip Buildcon
• Delhivery
• Devyani International
• DIC Industries
• Edelweiss Financial Services
• Fineotex Chemicals
• Fortis Healthcare
• Gati
• Gujarat State Petronet
• HUDCO
• IDFC
• IKIO Lighting
• Indraprastha Medical
• IRB InVIT
• JK Tyre & Industries
• JSW Holdings
• Kolte-Patil Developers
• Mahindra & Mahindra
• MapMyIndia
• MOIL
• Nava
• Nandan Denim
• Nucleus
• Oswal Agro
• Rane Holdings
• Shipping Corporation of India
• State Bank of India
• SML Isuzu
• Tata Investments
• Tatva Chintan Pharma Chem
• TCI Express
• Valecha Engineers
• VST Tillers
• Waterbase
• Welcorp
• Welspun Corp
• Zodiac JRD

NBCC (India) stock rises by 5.82% on the NSE, trading at ₹46.40. The company was awarded the work of “Construction of Hostel cum Residential Block at Dhaka Complex for Institutions of Eminence, University of Delhi on Design, Engineering, Procurement and Construction (EPC) basis to Sam (India) Builtwell Pvt. Ltd, New Delhi for a total contract value of ₹301 crore.

SBFC Finance IPO has been subscribed 2.53 times as of 10:39 am on August 4, 2023. The QIB portion has been subscribed 0.05 times; NII portion 5.46 times; retail 2.73 times, and those reserved for employees stood at 1.40 times.

Bansal Roofing Products has signed a contract for supply of 900 metric tonnes of PEB to Kutch Copper Ltd at an overall cost of ₹9.01 crore. However, the stock declines by 5.80% on the BSE, trading at ₹113.10.

SBI, BHEL, Bharat Dynamics, M&M, CAMS, Shipping Corp, Hudco, Vedanta, Torrent Power, NLC, Paytm, CDSL, Innokaiz India, Zurari agro, KPI Energy, Brigade Enterprises, KEC International, SJVN, Torrent Power, Navneet Education, Hatsun Agro Products, Sterling and Wilson Renewable, CESC, IKIO Lighting, Devyani, Britannia, VST Tillers.

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Stock of Sakar Healthcare jumps 20% on the NSE, trading at ₹324.65.

The company’s board had approved to increase authorised share capital from ₹20 crore to ₹25 crore. Further, the board had approved the execution of a share subscription agreement of Tata Capital Healthcare Fund II (acting through its trustee Tata Trustee Company Private Limited) and the promoters agreed to issue 23,09,910 equity shares as part of the Preferential Issue.

India’s export prices for 5 per cent broken parboiled rice reached records highs of $450 to $455 per tonne as demand shifted towards the grade after the Government banned exports of non-basmati white rice last month to control domestic costs.

Indian parboiled rice prices also soared this week to a new high. The 5 per cent broken parboiled type was quoted at an all-time high $450 to $455 a tonne this week, up from $445 to $450 the previous week.

One97 Communications (Paytm) stock rises by 1.46% on the NSE, trading at ₹778.80. The company informed the exchanges Thursday that Paytm Average MTU for July grew 19% YoY to 9.3 crore.

WTI crude futures advanced towards $82 per barrel on Friday and were expected to rise for the sixth week in a row as Saudi Arabia and Russia announced that they will continue voluntary supply cutbacks until next month.

In addition, Russia announced it would decrease its oil exports by 300,000 bpd in September. On Thursday, Saudi Arabia announced it would extend its 1 million barrels per day output reduction for an additional month. These declarations were made the day before an OPEC+ summit, where it is anticipated that the club will mostly uphold its present oil output policy of restricting supplies through 2024.

US crude inventories dropped by a record 17 million barrels last week as a result of increased refinery operations and robust crude exports. On the demand side, worries over a slow recovery in China and the majority of Europe kept people’s spirits down, said a Kedia Commodities report.

Gold dropped as the dollar firmed and hopes of a soft landing for a resilient US economy dented safe-haven demand for bullion.

Initial claims edged only slightly higher as expected, job cuts were the lowest in nearly a year and both labour costs and productivity beat forecasts, in a sign the labour market remains robust, said Kedia Commodities. The ADP data also pointed to a strong private sector employment gain.

Gold prices traded negatively and approached the first target at Rs 59300 per 10 grams and expected nay fall to Rs 59000 as the next main target, it said.

Key economic data slated for release include German Factory Orders m/m, Retail Sales m/m from Euro Zone and Average Hourly Earnings m/m, Non-Farm Employment Change, Unemployment Rate from US Zone.

Jamnagar Utilities & Power, a unit of Reliance Industries Holding, is likely to raise up to 40 billion rupees ($483.52 million) via the issuance of shorter-duration bonds in the next couple of weeks, two merchant bankers told to Reuters on Friday.

Zomato shares climb on first-ever quarterly profit.

Shares of Zomato rose as much as 9.7% on Friday, a day after the food delivery company posted its first-ever quarterly profit.

The IPO of a leading Ahmedabad-based manufacturer and exporter of technical textiles, had witnessed an overwhelming response to the initial public offering (IPO). The IPO was oversubscribed 144.23 times and has received 72.91 lakh bids amounting to Rs 4,447.51 crore.

The public issue, which comprised 74 lakh equity shares, garnered tremendous interest across all investor categories. In the retail category, the company has received bids for 38.46 lakh shares amounting to Rs 2,346.39 crore. In the non-institutional segment, the company has received bids for 26.46 lakh shares amounting to Rs 1,614.35 crore while in the qualified institutional segment, it has bids for 8.18 lakh shares amounting to Rs 499.14 crore

The company had set a floor price range of Rs. 54 to Rs. 61 per share for book-building.

Major gainers: Cipla (5.93%); Hindalco (2.55%); SBI Life Insurance (1.54%); LTI Mindtree (1.50%); Eicher Motors (1.38%)

Major losers: Power Grid (-0.66%); Sun Pharma (-0.28%); Bajaj Auto (-0.26%); Hindustan Unilever (-0.21%); BPCL (-0.07%)

Tube Invest’s net profit up at Rs 215 crore against vs Rs 195 crore while revenue increased to Rs 3898 crore against Rs 3776 crore (YoY).

The initial public offering Oriana Power Ltd, which closed on Friday, was oversubscribed 176.58 times collecting Rs 7,000.90 crore. This was a record response retail participation in the SME segment. The retail portion of the public offering has been over-subscribed 204.03 times. For the retail portion the company has received bids for 34.27 lakh shares for amounting to Rs 4,044.78 crore.

The Qualified Institutional Buyers (QIB) category was over-subscribed 72.16 times. While the Non-Institutional Investors (NII) category was subscribed 251.70 times.

• MS on M&M: Maintain Overweight on Company, target price at Rs 1578/sh
• MS on Bharti Airtel: Maintain Overweight on Company, target price at Rs 870/sh
• CLSA on Bharti Airtel: Maintain Buy on Company, target price at Rs 1030/sh
• Jefferies on Kotak: Maintain Buy on Bank, target price at Rs 2400/sh
• MS on Zomato: Maintain Overweight on Company, target price at Rs 85/sh
• JP Morgan on Zomato: Maintain Overweight on Company, target price at Rs 100/sh
• Jefferies on Zomato: Maintain Buy on Company, target price at Rs 130/sh
• UBS on Zomato: Maintain Buy on Company, target price at Rs 90/sh
• Jefferies on Eicher Motors: Maintain Buy on Company, target price at Rs 4000/sh
• Jefferies on VBL: Maintain Buy on Company, target price at Rs 950/sh
• MS on GUJGAS: Maintain Overweight on Company, target price at Rs 559/sh
• Nomura on GUJGAS: Maintain Neutral on Company, target price at Rs 510/sh
• JP Morgan on GUJGAS: Maintain Underperform on Company, target price at Rs 350/sh
• MS on LIC Housing: Maintain Underweight on Company, target price at Rs 320/sh
• MS on Aavas: Maintain Equal weight on Company, target price at Rs 1415/sh
• Jefferies on Sun Pharma: Maintain Buy on Company, target price at Rs 1310/sh
• UBS on Eicher Motors: Maintain Neutral on Company, target price at Rs 3500/sh
• UBS on Cummins: Maintain Sell on Company, target price at Rs 1250/sh
• Macquarie on Nykaa: Maintain Underperform on Company, target price at Rs 115/sh
• CLSA on Dabur: Maintain Outperform on Company, target price at Rs 620/sh

Ex-Dividend 07 August 2023 (Monday)

Last date for Cum-Dividend Today

Gabriel India Ltd

Dividend Per Share Rs.1.65

Previous day Closing Price – Rs. 224.95

Karur Vysya Bank Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 123.4

National Fittings Limited

Dividend Per Share Rs.1.5

Previous day Closing Price – Rs. 100.26

Navneet Education Limited

Dividend Per Share Rs.2.6

Previous day Closing Price – Rs. 150.7

Rites Ltd

Dividend Per Share Rs.3.75

Previous day Closing Price – Rs. 459.35

Saksoft Ltd.

Dividend Per Share Rs.0.35

Previous day Closing Price – Rs. 306.2

Shreeji Translogistics Ltd

Dividend Per Share Rs.0.2

Previous day Closing Price – Rs. 69.17

Overweight Call

Target Rs 559

Slower Volume Growth Despite Aggressive Industrial Gas Pricing Led To Miss

Alternative Fuel Price Of Propane Is Moving Towards Gas Parity & Headwinds Should Recede

Lack Of Long Term Gas Sourcing Contracts Limits Confidence In Growth

Investments In LNG Terminal Isn’t Strategic

Neutral Call

Target Rs 510

Muted Start To FY24

Results Were Below Est On Lower-Than-Anticipated Vol & Margin

Propane Likely To Be At A Premium To Natural Gas Prices From Sep Onwards

Trades At 18x FY25F P/E

Overweight Call

Target Rs 1,578

Temasek To Invest In M&M’s EV Biz

Deal Values MEAL In A Range Of Rs 40,400-Rs 80,600 Cr

Prev Invst of Rs 1,925 Cr By BII Valued MEAL at Rs 40,400-70,100 Cr

Implies An Increase Of 15% At Higher End Of MEAL’s Val

MEAL Plans To Invest Rs 10,000 Cr In Capex Towards EVs By FY27

MEAL Targets An EV Penetration Of 20%-30% In Its Own Portfolio By 2030

Underweight Call

Target Rs 320

Sharp Improvement In Loan Spreads Caused An 18% NII Beat

Higher Other Income, Led To A 20% PPoP Beat

Home Loan Disbursements Fell 24% QoQ & 28% YoY

Total Loans Grew 1% QoQ & 8% YoY

Equal-weight Call

Target Rs 1,415

PAT 1% Above Est, Led By Higher Other Income & Lower Credit Costs

NIM Was 2% Below Estimate Owing To Higher Borrowing Costs

Disbursements Down 2% YoY & AUM Rise Slowed

Stage-3 Ratio & Provision Cover Improved YoY

Neutral, TP Rs 940

Q1 : Largely in-line

5% revenue beat also led to a 5% EBITDA beat (+5% QoQ, +20% YoY, margins up 50bps to 52.7%)

Net income came at Rs16bn, missing est due to exceptional items (forex loss due to devaluation of Naira)

Overweight Call

Target Rs 870

Q1 Subscriber additions are better than Est with good postpaid adds

Better Than Expected ARPU Driving Beat In India EBITDA

Rpts Lower Than Expected Net Debt QoQ

Overweight Call

Target Rs 85

Strong quarter for growth & profitability

Solid Performance In Core Business

Quick Commerce Rev Disappointed; Targeting Adj EBITDA Breakeven In Four Qtrs

Buy Call

Target Raised To Rs 130 From 100

Q1 Puts To Rest All Concerns Around Co’s Ability To Make ‘Respectable’ Profits

Results Also Give More Credibility To Mgmt & Its Execution Prowess

Mgmt Is Particularly +Ve For Blinkit Which Most Investors Ascribe Zero Value

Mgmt Guides For A 40% Topline CAGR Over Next 2 Yrs

Reduce Call

Target Rs 60

Surprises On Margin In Q1, Margin Improvement Story Continues

Food Delivery Biz Picks Up

Q-Commerce Likely To Resume Growth Trajectory In Q2

Sustaining High GOV Growth & CM For An Long-term Will Be Challenging

Buy Call

Target Raised To Rs 102/Sh From 93

Co Expects To Grow Adj Revenue By More Than 40% In Next Couple Of Years

Co Expects Improved Profitability

Expect Long-term Sustainable Growth From FD

See Significant Upside From Blinkit

Buy Call

Target Rs 90

Solid Beat In Q1 As Demand Recovers And Operating Leverage Plays Out

Rev Supported By Core Food Delivery Business

Food Delivery Biz Posted 11.4% & 14% QoQ Growth In GOV & Adj Rev

Co Also Achieved +Ve Adj EBITDA & Net PAT Ahead Of Guidance

Co Expects At Least 40% YoY Growth In Adj Rev For The Next Couple Of Years

Overweight Call

Target Raised To Rs 100

Achieved Cons Adj EBITDA & PAT Breakeven Ahead Of FY24 Timeline

Should Reinforce Investor Faith In Co’s Execution Prowess

Instils Confidence In Blinkit has Broken Even On CM W/Adj EBITDA Breakeven In Sight

Food Delivery GOV Was Up 11% QoQ

Blinkit GOV Was Impacted By Temporary Disruption In April

Mgmt Now Expects More Than 20% QoQ Growth For Blinkit In Q2

Raise Revenue Est By 5-8% & Margin By 120-400 bps

OW, TP Raised to Rs 1260

Operational beat on core margins; specialty on track

Q1 EBITDA/adj. PAT beat est. by 10%/3% primarily led by gRevlimid contribution.

Adjusting for gRevlimid, rev tad below est. due to muted growth in India biz (+5% YoY)

Buy Call

Target Rs 1,310

Q1 Revenue Was In-line But EBITDA/Adj Pat Gave Healthy Beat Of 14%

Higher than Expected Sales Of Revlimid In The US & Low R&D Expense Drove Beat

Global Specialty Sales At $232 m Were Flat QoQ Against Usual Declines In Q1

India Biz Growth At 5% Was Disappointing But Should Improve Hereon

Core Earnings Driver Remain Intact Led By Specialty Sales Ramp Up

Buy Call

Target Rs 4,000

Q1 EBITDA Rose 23% YoY, 6% Above Est To An All-time High

RE Volumes Grew 22% YoY While EBITDA Margin Expanded 130 bps QoQ

Like EIM As See Tailwinds Of 2-w Demand Recovery

See Industry Premiumisation & Potential To Grow Exports

Keep It Lower In Pecking Order As RE Faces A Fresh Wave Of Competition

Neutral Call

Target Rs 3,500

Q1FY24 In-line; Does The Market Really Expand?

Competition Is Coming After Royal Enfield’s Profit Pool

Q1FY24 Gross Margin Better Despite Weaker Mix

Neutral, TP Rs 1430

Topline 3% below est.

While domestic growth of 43% is inline(prebuying due to CPCB emission norm change); export growth muted at 3% (est. 13%)

Lower exports & higher employee expense led to EBITDA margins @15.7% (est 16.2)

Sell Call

Target Rs 1,250

Q1 Margin Miss Despite Pre-buy; Ask For FY24 Exports & Margin Ambitious

Witnessed A Sharp 160 bps QoQ Decline In EBITDA Margin

Margin Decline Driven By Higher Salary & Other Opex

Domestic Growth Came In At A Healthy 43%/20%(YoY/QoQ)

Growth In Export Biz Was Muted At 3/1%(YoY/QoQ)

Krsnaa Diagnostics has finally won the legal battle to proceed with the project in Rajasthan for providing laboratory service under free diagnostic initiative.

The board of Sakar Healthcare, NSE-Emerge listed company, has approved preferential issue of 23,09,910 shares at Rs 259.75 (aggregating apx Rs 60 Cr) to TATA Capital Healthcare fund.

The Rs 1,025 crore initial public offering of SBFC Finance saw an overwhelming response on Day 1 itself by subscribing nearly 2 times. The offer will close on August 7. The NBFC is planning to raise Rs 1,025 crore via public issue which comprises a fresh issuance of shares worth Rs 600 crore and an offer for sale (OFS) of Rs 425 crore by promoters.

Non-Institutional Investors Portion was the most subscribed with 4.12 times, followed by Retail Portion with 2.06 times. Employee Portion was subscribed 1.10 times, whereas, Qualified Institutional Buyer Portion was subscribed 0.03 times.

Investors can buy a minimum of 260 equity shares in the IPO.

Crude oil futures traded higher on Friday morning as Saudi Arabia and Russia (two of the major oil producers) announced their decision to extend production output cut to September. At 9.04 am on Friday, October Brent oil futures were at $85.25, up by 0.13 per cent; and September crude oil futures on WTI (West Texas Intermediate) were at $81.72, up by 0.21 per cent.

The Rs 1,550.59-crore initial public offering of Concord Biotech opens for public subscription today (August 4). The Jhunjhunwala-backed company has set the price band as Rs 705 – Rs 741. Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter. The IPO will close on August 8.

Zuari Agro has informed the exchanges that it has received a letter from the Government of India, Ministry of Corporate Affairs, with respect to the inspection of the company under Section 206(5) of the Companies Act, 2013 and has directed the Company to furnish certain documents for examination.

NBCC (India) Limited has awarded the work of Construction of Hostel cum Residential Block at Dhaka Complex for Institutions of Eminence, University of Delhi on Design, Engineering, Procurement and Construction (EPC) basis to Sam (India) Builtwell Pvt. Ltd, New Delhi for a total contract value of ₹301 crore inclusive of all taxes, duties, cess and statutory levies.

CDSL said that a warning has been issued pursuant to the SEBI Onsite inspection conducted for the period during June 1, 2021, to June 30, 2022, inter-alia “to be careful in future, strengthen internal control systems to improve processes for approval of the internal operations.” It has advised the Board of CDSL to take its Letter into consideration the the company said there will not be any financial impact due to SEBI observation.

• GNFC
• HINDCOPPER
• PEL

One97 Communications (Paytm) in a business update for July said that Paytm Average MTU for July grows 19 per cent YoY to 9.3 crore. Paytm No. of devices deployed hits 82 lakh; increase of 3.8 lakh from last month.

S&P Global Ratings on Thursday revised the credit outlook for Vedanta Resources Ltd to negative, citing increased funding risks. The agency has affirmed the ‘B-’ rating for the company. It indicates a relatively higher credit risk. In a statement, it said Vedanta Resources’ weakened access to cash flow from its operating subsidiaries at a time of challenging external financing conditions has raised its refinancing risk.

Domestic markets are expected to open on a flat note on Friday. After a battering in the last few days, the market is likely to stabilise around current levels, said analysts. GIFT Nifty at 19,500 indicates a flat-to-positive opening for domestic markets.