Stock Market Live Updates 5 August 2024: Sensex, Nifty tumble as Nikkei slumps; analysts expect volatility due to global trends

Top gainers on the NSE as at 9.30 am:

Sun Pharma (0.75%), Britannia (0.69%)

Top losers:

Hindalco (-4.69%), Tata Motors (-4.55%), Shriram Finance (-4.33%), ONGC (-4.26%), Adani Ports (-3.90%)

Crude oil futures traded higher on Monday morning as the increase in tensions in West Asia created apprehensions over possible crude oil supply disruptions to the world market. At 9.19 am on Monday, October Brent oil futures were at $77.09, up by 0.36 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $73.72, up by 0.27 per cent. August crude oil futures were trading at ₹6187 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹6146, up by 0.67 per cent, and September futures were trading at ₹6134 against the previous close of ₹6091, up by 0.71 per cent.

Indian benchmark indices, Sensex and Nifty, opened lower, reflecting weak global cues. The BSE Sensex dropped 2,393.77 points to 78,588.19, while the NSE Nifty fell 414.85 points to 24,302.85. Asian markets are in sharp decline, led by the Nikkei, which plummeted over 6% after recent losses exceeding 10%. Other Asian markets, including Korea, Taiwan, and Australia, saw declines ranging from 2.5% to 7%.

Analysts anticipate increased market volatility in India due to factors such as the unwinding of the yen carry trade, geopolitical tensions, and a perceived slowdown in developed economies. Recent weak US job data and a benign inflation environment have heightened expectations for a Federal Reserve rate cut in September. Despite these global pressures, analysts expect Indian markets to consolidate as earnings align with high valuations.

This week’s key factors influencing market movements include the RBI’s interest rate decision on August 8, macroeconomic data, and global trends. Foreign Portfolio Investors (FPIs) have begun August with caution, selling ₹1,027 crore in equities after significant inflows in July. The Japanese Nikkei’s continued decline amid economic concerns highlights the global context impacting Indian markets.

Nomura on LIC Hsg Fin

Buy Call, Target Rs 875

Q1 Asset Quality Stable, Credit Cost Declines Mainly Driven By ECL Reversal

Disbursements Grew 19% YoY/ Down 29% QoQ, AUM Growth Tepid At 4.4%/0.6% YoY/QoQ

NIMs Contracted 40 bp QoQ Due To Lower Yields

Believe Current Valuation At 1x FY26 Book Value Remains Reasonable

CLSA on LIC Hsg Fin

Downgrade To Hold, Target Rs 800

Q1 Loan Growth In-line With Expectations But Margin Moderate

Gross NPLs Steady But Net Slippage Spiked

Credit Cost Was At Its Lowest In 14 Quarters

Credit Cost Driven By Reduction In Provision Coverage Across Stage 2 & Stage 3 Loans

Calculated Spread Declined 35 bps QoQ Due To Lower Interest Income On NPL Accounts

Management Disclosed This Metric For The First Time

Loan Growth Remains Muted In Mid-single Digits

A Pickup In Disbursement Growth Will Take Time To Be Reflected In AUM Growth

JPM on LIC Hsg Fin

OW, TP Rs 900

1Q PAT (Rs13bn; ROE: 16%)in-line

Disbursements growth at 19% y/y was key +ve

AUM growth remained subdued at 4% y/y & pickup here will require sustained delivery on disbursements momentum

NIMs at 2.76% were within guidance 

MS on LIC Hsg Fin

EW, TP Rs 630

NII miss offset by lower operating costs & credit costs

Individual disbursements growth muted & loan growth outstanding remains very low

Slippages increased.

Given strong YTD stock returns, expect stock to give up gains given weak Q1

Jefferies on LIC Hsg Fin

Buy, TP Rs 765

1Q PAT Rs13bn (-2% YoY), in line, as weaker NII offset by lower provision

AUM grew 4.3% YoY (1% QoQ), below our est. due to lower than est. disbursement (19% YoY)

NIM fell 39bps QoQ to 2.76%(JEFe 3%) as yield fell c.33bps QoQ

CLSA on SBI

Outperform Call, Target Raised To Rs 1,075

Q1 Showed Loan Growth Remains Healthy But Deposit Growth Is Lagging

NIM Largely Stable & Asset Quality Intact

Credit Costs Inched Up To 37 bps, From 15 bps In FY24, But Was Still Below Runrate Levels

Management Expects Loan Growth Of 15% With Margin Largely At Current Levels For FY25

Forecast 15-16% RoE Over Medium-term

JPMorgan on SBI

Overweight Call, Target Rs 1,000

Q1 PAT (`1,700 Cr; RoE: 18%) Was 5% Ahead Of Estimates Driven By Lower Opex

NII Was In-line W/Core NIMs, Largely Stable QoQ While Core PpOP Was 3% Ahead Of Est

Gross Advances Grew 15% YoY With Broad-based Growth Across Segments

Opex Growth (+1% YoY) Saw A Sharp Moderation With Wage Revision Provisions Behind

Think Opex Growth Will Provide An Offset To NIM Pressures Through FY25

Asset Quality Performance Was Stable

Net Slippages At 54 bps & It Kept Loan Related Provisions At Around 50 bps

Q1 RoA Stood At 1.1% & Think Co Can Hold 1%+ Mark Given Benign Credit Cost & Flex Around Opex

UBS on SBI

Sell Call, Target Rs 725

Lower Opex & Higher Other Income Offset NII Miss In Q1; Credit Costs Inch Up

Deposits Declined 0.3% QoQ; In-line With Muted Deposit Growth In Sector

Credit Costs Of 50 bps (Annualised) In Q1 Came In Higher Than FY24 Levels

Expect Co’s Current RoA Of >1% To Decelerate As Believe Credit Costs Would Trend Up

Relatively Lower Core PpOP To Assets Leaves Little Cushion On Current Profitability

Low Counter Cyclical Buffers Leaves Little Cushion On Current Profitability

Management Remain Confident Of Unsecured Retail Segment’s Asset Quality

Investec on SBI

Buy Call, Target Rs 880

Co Reported A Miss On NIMs/Core PpOP In Q1

NII Growth Weak On Back Of Declining YoAs & Rising CoD

Credit Costs Doubled Sequentially To 0.43% Owing To Seasonally Higher Slippages

Co Managed To Keep Opex Under Control, Delivering Healthy RoAs In A Seasonally Weak Quarter

Expect Credit Growth To Be Strong At 15% YoY For FY25 With Bank Having Adequate Liquidity Buffers

Jefferies on SBI

Buy, TP Rs 1000

For 1Q , profit of Rs170bn, up 1% YoY, missed est. due to tad lower NII & higher credit costs.

Loan (gross) growth stayed healthy at 15%, but NIM fall was tad higher limiting NII growth to 6%.

Slippages stable 

HSBC on SBI

Hold, TP Rs 920

1Q: Lower NIM, core fees led to a miss on revenues.

Sharply lower-than-estimated opex drove ROA to 1.1%

Revise EPS by -3.9/-3.0/+4.2% for FY25e/26e/27e to build in lower NIM, higher credit costs, but much lower cost ratios

Nomura on SBI

Buy, TP Rs 1030

1Q: Steady quarter

Healthy loan growth, soft sequential deposits growth; steady asset quality

Management notes BK well positioned for a potential transition to ECL provisioning norms 

with potential impact lower than previously called out

Buy, TP Rs 4750

If successful, this shd lower PI’s dependence on Pyroxasulfone and allay a key investor concern.

Positive developments on Pyroxasulfone patents also bode well for PI’s volume and pricing defense

Buy, TP Rs 931

1Q: Sales in-line; EBITDA below est.

Co added net 37 stores in 1Q (co guidance was 600 stores for FY25, implying 150 stores/qtr)

No of store additions in past 12 mths is at 469 vs peak annual addition of 1000-1100 stores over Sept 20 to Ju 23

JPMorgan on Max Health

Overweight Call, Target Raised To Rs 1,010

Q1 Results Were In-line With Estimates

Growth Outlook Intact; New Units Poised For Further Acceleration

Continue To Like Co For Its Strong Execution

Like Co For Superior Growth Prospects

Forecast Revenue/EBITDA CAGR Of 25%/25% Over FY24-27

Underperform Call, Target Raised To Rs 1,670

Q1 PAT (+92% YoY) Was Aided By Growth In Refrigerators & AC Verticals (Strong Summer)

Raise FY25-27 EPS By +4-7%, And Est +23% EBITDA CAGR

Factoring Healthy 8%+ OPM In Q4 & Q1, & Positive Mgmt Commentary, Raise Target PE By 10%

Risk-reward Appears Stretched At Current FY25/26 PE Of 75/60x

Jefferies on UPL

Buy Call, Target Rs 665

Co Reported Net Loss In Q1

Healthy Volumes (+16%YoY) Were Offset By Sharp Price Decline

Healthy Volumes Were Upset By Industry Overcapacity & Chinese Competition

Co Expects Prices To Stabilise Now, With Recovery In H2FY25

Mgmt Retains FY25 Outlook

Cut FY26-27 EPS By 2% While FY25 Cut Is Sharper

Investec on UPL

Sell, TP Rs 385

PAT loss of Rs3.3bn driven by 28%YoY EBITDA decline 

EBITDAM down 513bps YoY at 12.6% due to pricing pressure (-14%YoY) for key molecules in end-markets coupled with increase in freight costs & liquidation of high-cost inventory

Jefferies on Divis Labs

Hold Call, Target Rs 4,830

Q1 Results Were Ahead Of Estimates As Custom Synthesis Sales Increased 46% YoY

Generics And Nutraceutical Sales Were Flattish YoY

Generics Continued To Struggle With Pricing Challenges

Mgmt Provided Bullish Commentary On Custom Synthesis & Increased Workflow On Peptides

GS on Divis Labs

Neutral, TP Rs 4575

Rev /EBITDA grew +19%/+23% yoy, broadly inline primarily led by Custom synthesis segment

EBITDA margin came in at 29.4% (+102bps yoy) mainly on a/c of better operating leverage

Co reiterated its double digit growth outlook

Investec on Britannia

Hold Call, Target Rs 5,541

Q1 Saw Miss On Margin Which Brings Up Earnings Downgrade Risk

Gross Margin Improved By 147 bps YoY But Was Down 149 bps QoQ To 43.4%, Below Est Of 44.8%

EBITDA Margin Improved By 56 bps YoY To 17.7%, Below Estimate Of 18.8%

Macquarie on Britannia

Neutral Call, Target Rs 4,700

Q1 EBITDA Below Est As Gross Margin Miss Offsets Sales Beat

Co Indicates Rural Market Share Growing Faster Vs Urban

Gross Margin Surprised Negatively, Moderating 150bps Sequentially

EBITDA Came In 4% Below Estiamtes

PAT Was In-line, As EBITDA Miss Was Offset By An 8% Sequential Decline In Depreciation Costs

MS on Britannia

Equal-Weight Call, Target Rs 5,021

Q1 Rev/EBITDA/Adj PAT Growth Of 4/9/16% YoY, Respectively, Which Were -1/-6/ -4% Vs Estimates

Revenue Was Up 9% On A 5-yr CAGR Basis Vs 8% In Q4

Gross Margin Expanded 42 bps YoY, Down 238 bps QoQ To 41.8% Vs Est Of 43%

EBITDA Margin Expanded 90 bp YoY, Down 137 bps QoQ At 18.2% Vs Estimate Of 19.2%

GS on Thermax

Sell, TP Rs 3060

Continued investments compressing its ROCE to 20.5% by end-FY27E vs 32-36% at its peak during 2009-11

Mgt has indicated that margins will see meaningful improvement from here as some costs even for future have been booked already

Jefferies on Thermax

Buy, TP Rs 6075

1QEBITDA, up 7% YoY at Rs1.4 bn, below expectations as industrial infra segment (42% of revenues) saw EBIT loss.

Delays, design changes & cost overruns in BioCNG & FGD(power emission linked)projects impacted 1Q by Rs400m+

Kotak Inst Eqt on Thermax

Reduce, TP Rs 4600

1Q bore brunt of challenges in projects linked to cost overruns, stabilization of output, weather & managing work content beyond core expertise

Co now preparing for fastest growing opportunity in—thermal power

Macquarie on Titan

O-P, TP Rs 4100

1Q beat led by stronger jewellery margin

Co sees custom duty improving operating environment

Market share flattish

Co retained guidance for an 11.5-12.5% jewellery margin despite expected reduction in discounting pressures

GS on Titan

Buy, TP Rs 3750

1Q EBITDA grew 10.8% YoY, (2% ahead of GSe)

This was driven by better than expected margins in jewellery biz

Management attributes muted jewellery growth in 1Q to 1-off factors, seeing pickup post cut in gold import duty

JPM on Titan

Neutral, TP Rs 3450

In-line Q1; Competitive landscape stays stiff

Inventory loss impact (max Rs5-5.5bn) would be seen over Q2 & Q3

TTAN maintained annual jewellery margin guidance of 11.5-12.5%

Stock trading at FY26E P/E 60x

CITI on Titan

Neutral, TP Rs 3510

Revenue (ex-bullion) growth of 9% YoY (in-line with Citi est) was impacted by high gold price, less wedding days, heatwave, etc.

PAT declined by 1% YoY & broadly in-line 

Jewellery EBIT margin improved 20bps YoY to 11.2% 

JP Morgan on Max Health: Maintain Overweight on Company, raise target price at Rs 1010/Sh (Positive)

Investec on Delhivery: Maintain Buy on Company, raise target price at Rs 570/Sh (Positive)

CLSA on State Bank of India: Maintain Outperform on Bank, target price at Rs 1075/Sh (Neutral) 

Nuvama on State Bank of India: Maintain Buy on Bank, target price at Rs 1026/Sh (Neutral) 

JP Morgan on State Bank of India: Maintain Overweight on Bank, target price at Rs 1000/Sh (Neutral) 

Nomura on State Bank of India: Maintain Buy on Bank, target price at Rs 1030/Sh (Neutral) 

Investec on State Bank of India: Maintain Buy on Bank, target price at Rs 880/Sh (Neutral) 

IIFL on State Bank of India: Maintain Add on Bank, target price at Rs 900/Sh (Neutral) 

Bernstein on State Bank of India: Maintain Market perform on Bank, target price at Rs 810/Sh (Neutral) 

CLSA on LIC Housing: Downgrade to Hold on Company, target price at Rs 800/Sh (Neutral) 

Nomura on LIC Housing: Maintain Buy on Company, target price at Rs 875/Sh (Neutral) 

Jefferies on LIC Housing: Maintain Buy on Company, target price at Rs 765/Sh (Neutral) 

JP Morgan on Britannia: Maintain Sell on Company, target price at Rs 5260/Sh (Neutral) 

Investec on Britannia: Maintain Hold on Company, target price at Rs 5541/Sh (Neutral) 

Macquarie on Britannia: Maintain Neutral on Company, target price at Rs 4700/Sh (Neutral) 

MS on Britannia: Maintain Equal weight on Company, target price at Rs 5021/Sh (Neutral) 

GS on Titan: Maintain Buy on Company, target price at Rs 3750/Sh (Neutral) 

Macquarie on Titan: Maintain Outperform on Company, target price at Rs 4100/Sh (Neutral) 

JP Morgan on Titan: Maintain Neutral on Company, target price at Rs 3450/Sh (Neutral) 

MS on Titan: Maintain Equal weight on Company, target price at Rs 3620/Sh (Neutral) 

CLSA on Titan: Maintain Neutral on Company, target price at Rs 3948/Sh (Neutral) 

Citi on Titan: Maintain Neutral on Company, target price at Rs 3510/Sh (Neutral) 

Nuvama on Titan: Maintain Neutral on Company, target price at Rs 3955/Sh (Neutral) 

Jefferies on UPL: Maintain Buy on Company, raise target price at Rs 665/Sh (Neutral)

Citi on UPL: Maintain Buy on Company, cut target price at Rs 640/Sh (Neutral)

Jefferies on Divis Lab: Maintain Hold on Company, target price at Rs 4830/Sh (Neutral) 

Nuvama on Divis Lab: Maintain Buy on Company, target price at Rs 5740/Sh (Neutral) 

Jefferies on Whirlpool: Maintain Underperform on Company, raise target price at Rs 1670/Sh (Neutral) 

JP Morgan on Amara Raja: Maintain Neutral on Company, target price at Rs 1435/Sh (Neutral) 

Macquarie on Britannia: Maintain Sell on Company, target price at Rs 4700/Sh (Negative)

Silver fell amid profit booking, but the fall is expected to be limited due to rising expectations of rate cuts from the US Federal Reserve (Fed) and a risk-off mentality amid ongoing geopolitical tensions in the Middle East. The poor US employment figures in July fuelled fears of a recession and prompted the potential of Fed rate reduction in September. The US Bureau of Labour Statistics (BLS) reported that US Nonfarm Payrolls (NFP) increased by 114K in July from 179K the previous month (revised down from 206K), falling short of the anticipation of 175K. Meanwhile, the US unemployment rate increased to its highest level since November 2021, reaching 4.3% in July from 4.1% in June. On the other side, rising geopolitical tensions in the Middle East may fuel safe-haven movements.

Gold prices fell as profit-taking increased, although recession fears and mounting forecasts of US interest rate reduction curbed further decline. Data showed that job growth in July fell short of expectations, with unemployment rising to 4.3%, pointing to potential labour market weakness and increased vulnerability to recession, bolstering the case for a rate decrease at the Federal Reserve’s September 17–18 meeting. According to the CME FedWatch tool, traders are pricing in a more than 70% possibility of the US central bank cutting interest rates by 50 basis points in September, up from 11.5% a week ago. Gold premiums in India fell last week as prices recovered, dampening a purchasing frenzy sparked by the government’s move to reduce import taxes, while declining consumer mood weighed on demand in top consumer China.

Company: FOODS & INNS LTD (FOODSIN)

Type of Offer: Acquisition

Acquirer: Raymond Simkins, Milan Bhupendra Dalal, and Borgos Multitrade LLP 

Issue of Public Announcement: 09-Apr-2024

Offer price Rs: 147

CMP: Rs 157.80 

(%Prem.)/Disc.: -6.84%

Offer Size : Rs 279.90 Cr

Proposed Acq. No. of shares: 1.90 cr

Proposed Acq. : 26%

Schedule of Activity:

Start Date: 23 Jul 2024 

End Date: 05 Aug 2024 (Today)

Obligation Date: 19 Aug 2024

Settlement Date: 20 Aug 2024

Route – Tender 

Buyback Price: 675/- 

Current Market Price: 628.75/-

Market Cap: Rs 4,345 Crores 

Buyback Size: Rs 36.45 Crores (Representing 2.09% and 2.09% of the total paid up equity share capital and free reserves)

Buyback Size: 5,40,000 shares (Representing 0.78% of O/s. shares)

Retail Quota: 81,000 Shares

Last Cum Trading Date: 14 Aug 2024

Ex-Date: 16 Aug 2024

Buyback Record Date: 16 Aug 2024

Buyback Schedule: Not Yet Announced

Issue Period:- 02- August-24 to 05- August-24

For Non- Retail ( QIB +HNI ) open & close date - 02-August -24 

For Retail open & close date – 05 –August-24 (Today) 

Floor Price: INR “100”

Closing Price on date of announcement: Rs. 137.25\u0009

Current Market Price: 137.25

Base Issue size: 0.25 Crs Shares – 3.79% of O/S Capital

Green Shoe Issue size: Nil

Total Issue Size: 0.25 Crs equity shares (INR 25 Cr) – 3.79% of O/s Capital

Non-Retail Portion (QIB + HNI) - 90% of Offer Size - Bidding on 02-August -24 

Total Issue Size: 0.22 Crs shares (INR 22.27 Cr)

Clearing Price for Non-Retail: Rs. 106.50

Retail Portion - 10% of Offer Size - Bidding on 05 August, 2024 (Today) 

Total Issue Size: 0.024 Crs equity shares (INR 2.47 Cr)

Note : Upto Rs 2 lacs bids are classified as Retail and above non retail ( QIB + HNI )

Note : Based on clearing price discovered for Non retail bids, the minimum price to bid for Retail portion will be Rs 106.50.

Issue Open - 05-Aug-24 (Today)

Issue Close - 19-Aug-24 

Right issue Size: Rs. 2,997.76 Crs (3.66 Crs Shares)

Stock Price – 1193.60/-

Right issue Price: Rs. 818/-

Payment Terms: Rs. 818/- (Rs 818 to be paid on application)

Rights Entitlement Ratio: 1 Right Equity Share for every 26 Shares held (Effectively 0.04 for every 1 share held)

Last Trade date (Cum Right): 25 Jul 2024

Ex-Right Trading date: 26 Jul 2024

Record Date: 27 Jul 2024

Right Entitlement (RE) Trading Period: 5 Aug 2024 to 12 Aug 2024

Last day of Renunciation of Rights Entitlements: 12 Aug 2024

Date of Allotment (on or about): 26 Aug 2024

Date of listing (on or about): 30 Aug 2024

Stock market live today: Nikkei recovers from days low, now down 4.6 per cent at 34247

Hit a low of 33,369 earlier

REVENUE AT 111.6CR V 0.18CR (YOY) , V 24.87CR (QOQ)

EBITDA AT 43.97CR V 1.35CR LOSS (YOY), 3.16CR LOSS (QOQ) 

MARGINS 39.39% V 12.7% (QOQ)

(Nirmal Bang Retail Research) 

Result is above expectations 

Revenue from Operations came at Rs. 611.9 Cr (-5.7% QoQ, 20.1% YoY) vs expectation of Rs. 559.9 Cr, QoQ Rs. 649.2 Cr, YoY Rs. 509.6 Cr 

EBIDTA came at Rs. 73.4 Cr (41.7% QoQ, 13.6% YoY) vs expectation of Rs. 62.1 Cr, QoQ Rs. 51.8 Cr, YoY Rs. 64.6 Cr 

EBITDA Margin came at 12% vs expectation of 11.1%, QoQ 8%, YoY 12.7% 

Adj. PAT came at Rs. 34.3 Cr vs expectation of Rs. 33.1 Cr, QoQ Rs. 15.3 Cr, YoY Rs. 36.7 Cr 

Quarter EPS is Rs. 8.6 

Stock is trading at P/E of 14.4x FY25E EPS

(Nirmal Bang Retail Research) 

Result is broadly in-line with expectations 

Revenue from Operations came at Rs. 841 Cr (7.5% QoQ, 19.8% YoY) vs expectation of Rs. 784.7 Cr, QoQ Rs. 782.6 Cr, YoY Rs. 702.1 Cr 

EBIDTA came at Rs. 155.2 Cr (-4.3% QoQ, 33.2% YoY) vs expectation of Rs. 159.5 Cr, QoQ Rs. 162.1 Cr, YoY Rs. 116.5 Cr 

EBITDA Margin came at 18.5% vs expectation of 20.3%, QoQ 20.7%, YoY 16.6% 

Adj. PAT came at Rs. 147.7 Cr vs expectation of Rs. 123 Cr, QoQ Rs. 150.3 Cr, YoY Rs. 124.6 Cr 

Quarter EPS is Rs. 23.2 

Stock is trading at P/E of 37.9x FY25E EPS

(Nirmal Bang Retail Research) 

Result is in-line with expectations 

Revenue from Operations came at Rs. 196.7 Cr (11.2% QoQ, 5.8% YoY) vs expectation of Rs. 195.6 Cr, QoQ Rs. 176.9 Cr, YoY Rs. 185.9 Cr 

EBIDTA came at Rs. 35.7 Cr (0.6% QoQ, 1.9% YoY) vs expectation of Rs. 39.4 Cr, QoQ Rs. 35.5 Cr, YoY Rs. 35 Cr 

EBITDA Margin came at 18.2% vs expectation of 20.1%, QoQ 20.1%, YoY 18.8% 

Adj. PAT came at Rs. 16.5 Cr vs expectation of Rs. 19.9 Cr, QoQ Rs. 18 Cr, YoY Rs. 18.7 Cr 

Quarter EPS is Rs. 5 

Stock is trading at P/E of 31.8x FY25E EPS 

(Nirmal Bang Retail Research) 

Result ahead of Expectation 

Revenue from Operations came at Rs. 719.7 Cr (30.6% QoQ, 54.2% YoY) vs expectation of Rs. 697.5 Cr, QoQ Rs. 550.9 Cr, YoY Rs. 466.6 Cr 

EBIDTA came at Rs. 250 Cr (68.4% QoQ, 47.3% YoY) vs expectation of Rs. 229.4 Cr, QoQ Rs. 148.4 Cr, YoY Rs. 169.7 Cr 

EBITDA Margin came at 34.7% vs expectation of 32.9%, QoQ 26.9%, YoY 36.4% 

Adj. PAT came at Rs. 83.2 Cr vs expectation of Rs. 83 Cr, QoQ Rs. 71 Cr, YoY Rs. 94.9 Cr 

Quarter EPS is Rs. 6.1 

Stock is trading at P/E of 36.9x FY25E EPS 

Dhanuka Agritech Ltd. | CMP Rs. 1813 | M Cap Rs. 8265 Cr | 52 W H/L 1825/721 

(Nirmal Bang Retail Research) 

Result is above expectations 

Revenue from Operations came at Rs. 493.6 Cr (34% QoQ, 33.7% YoY) vs expectation of Rs. 434.8 Cr, QoQ Rs. 368.3 Cr, YoY Rs. 369.1 Cr 

EBIDTA came at Rs. 71.7 Cr (-10.5% QoQ, 64.5% YoY) vs expectation of Rs. 58.6 Cr, QoQ Rs. 80.1 Cr, YoY Rs. 43.6 Cr 

EBITDA Margin came at 14.5% vs expectation of 13.5%, QoQ 21.7%, YoY 11.8% 

Adj. PAT came at Rs. 48.9 Cr vs expectation of Rs. 40.4 Cr, QoQ Rs. 59 Cr, YoY Rs. 32.9 Cr 

Quarter EPS is Rs. 10.7 

Stock is trading at P/E of 29.1x FY25E EPS 

Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India

FPI progress in August given the macro headwinds of the US Economy - 

The Federal Reserve ‘s announcement of July 31 on keeping the Fed rate unchanged will give partial relief as the window is kept open to make a cut in the coming months. Though inflation seems under control at the moment, another pressing factor is the job market data which has not improved much as compared to last quarter. The impact could be seen on India, the rupee slipped to a record low. FPIs are following the cautious approach keeping in mind the concerns raised by the Fed Reserve in the United States and booming geopolitical tensions in the Middle East indicating early signs of recession.

Despite the above macro factors and the Budget 2024 proposals on capital gains tax which beefed up the capital market participants, the current week has shown a significant rise in the inflows by the foreign investors in the equity space in India. We may witness the impact of this wave to continue in the next few trading cycles as well

ALEMBIC – Rs 2.40

ANDHRA PAPER – Rs 10

BERGER PAINTS – Rs 3.50

BRITANNIA INDUSTRIES – Rs 73.50

CHAMBAL FERTILISER – Rs 3

HERCULES HOISTS – Rs 4

GANDHI SPECIAL TUBES – Rs 13

LINDE INDIA – Rs 12

SOMANY CERAMICS – Rs 3

* RBLBANK

* INDIAMART

* INDIACEM

* GRANULES

* GNFC

* CHAMBAL

* BSOFT

* ABCAPITAL

NII UP 10 % TO 566 CR (YOY), FLAT (QOQ)

TAMILNAD MERCANTILE Q1 : OPERATING PROFIT UP 28 % TO 468 CR (QOQ), UP 23 % (YOY(

PROVISON UP 262 % TO 85 CR (QOQ)

GROSS NPA AT 1.44 % V 1.44 % (QOQ)

NET NPA AT 0.65 % V 0.85 % (QOQ)

ACTUAL GROSS NPA UP 2 % TO 587 CR (QOQ)

NET NPA DOWN 22 % TO 261 CR (QOQ)

PROMOTER SOLD 🔴20.51 LKH SHARES (3.63 % STAKE ) @ ₹ 2,232.10

CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED - ODI BUYS 🟢 4.48 LKH SHARES (0.79 % STAKE ) @ ₹ 2,232.10

DISCOVERY GLOBAL OPPORTUNITY MAURITIUS LIMITED BUYS 🟢 1.50 LKH SHARES (0.26 % STAKE) @ ₹ 2,232.10

ICICI PRUDENTIAL MUTUAL FUND BUYS 🟢10.75 LKH SHARES (1.90 % STAKE ) @ ₹ 2,232.10

SOCIETE GENERALE BUYS 🟢 2.73 LKH SHARES (0.48 % STAKE ) @ ₹ 2,232.10

UNION MUTUAL FUND BUYS 🟢62 K SHARES (0.62 % STAKE ) @ ₹ 2,232.10

SUDH INVESTMENTS PVT. LTD BUYS 🟢 2.92 LKH SHARES @ ₹ 113.79

PACE COMMODITY BROKERS PRIVATE LIMITED BUYS 🟢1.8 LKH SHARES @ ₹ 117.70

CINCO STOCK VISION LLP SOLD 🔴 4.34 LKH SHARES @ ₹ 123.10

BOFA SECURITIES EUROPE SA BUYS 🟢 1.88 LKH SHARES @ ₹ 123.10

BNP PARIBAS FINANCIAL MARKETS BUYS 🟢 2 LKH SHARES @ 123.10

COPTHALL MAURITIUS INVESTMENT LIMITED BUYS 🟢 2 LKH SHARES @ ₹ 123.10

SETU SECURITIES PVT LTD BUYS 2.86 LKH SHARES @ ₹ 111.61

OVATA EQUITY STRATEGIES MASTER FUND BUYS 🟢 4 LKH SHARES @ ₹ 123.10

ELARA INDIA OPPORTUNITIES FUND LIMITED SOLD 🔴5.85 LKH SHARES @ ₹ 78.50

VESPERA FUND LIMITED SOLD 🔴 28.2 LKH SHARES @ ₹ 78.94

UNICO GLOBAL OPPORTUNITIES FUND LIMITED BUYS🟢 34.05 LKH SHARES @ ₹ 78.86

REVENUE UP 6 % AT 22.86 CR (YOY) ,UP 10 % (QOQ)

EBITDA UP 33 % AT 3.58 CR (YOY),UP 45%(QOQ) 

MARGINS AT 15.66 % V 12.52 % (YOY), 11.9% (QOQ)

REVENUE DOWN 14 % AT 306 CR (YOY) ,DOWN 53% (QOQ)

EBITDA DOWN 57% AT 9.66 CR (YOY),DOWN 91 %(QOQ) 

MARGINS AT 3.15 % V 6.36 % (YOY), 16.36 % (QOQ)

Nomura fund buys 59.70 lakh shares worth Rs 207 crore in Genus Power Infrastructures as promoters pare stakes

Financial Performance:

- Loan Book: Reached Rs. 137,011 million, an 8.3% YoY growth.

- Profit After Tax (PAT): Rs. 1,054 million, representing an 18.3% YoY increase.

- Return on Assets (ROA): 3.1% for Q1 FY25.

- Return on Equity (ROE): 16.3% for Q1 FY25.

- Net Interest Margin (NIM): Maintained at 5.1% for the quarter.

- Yield on Assets: Increased to 12.0% in Q1 FY25 from 11.5% in Q1 FY24.

- Cost of Funds: Rose to 8.6% in Q1 FY25 from 8.2% in Q1 FY24.

- Spread: Remained stable at 3.4%.

- Cost to Income Ratio: Decreased to 23.6% from 26.3% in the previous quarter.

- Other Income: Increased significantly due to interest income from investments and G-Sec securities.

Operational Performance:

- Disbursements: Rs. 6,804 million in Q1 FY25, relatively flat compared to the previous year.

- Sanctions: Rs. 7,272 million, slightly lower compared to the previous quarter.

- Gross Non-Performing Assets (GNPA): 4.3%, slightly higher compared to the previous quarter mainly attributed to the heat wave in April.

- Stage 3 Provision Coverage Ratio: 61.8%.

- Stage 2 assets: Remained stable at 11.7%.

- Branch Network: Increased to 223 branches (including satellite centers) as of June 30, 2024, adding 10 new branches since the end of FY24.

- Geographic Diversification: Tamil Nadu contributes 56% of the loan book, with efforts to increase exposure outside the state.

Future Outlook:

- AUM Growth Target: Aiming for Rs. 15,000 million AUM by March 2025, organically.

- Disbursement Target: Planning for disbursements between Rs. 3,600 to 3,800 million by the end of FY25.

- GNPA Reduction Target: Aiming for a GNPA of 3% by year-end.

- Stage 2 Target: Aiming to bring Stage 2 assets down to 10%.

- Growth Strategy: Focusing on increasing sales staff and diversifying sourcing channels to drive growth.

- Focus on Home Loan Segment: Aiming for controlled growth in the home loan segment, with a possible offering of competitive pricing to salaried customers.

- Capital Adequacy: Management believes the current capital is sufficient to support planned growth and does not indicate plans for further dilution or significant dividend increases.

- NHB Loan Application: RHFL plans to apply for NHB loans post their AGM and filing of numbers with ROC.

Concerns (if any):

- Disbursement Growth: Analysts expressed concern regarding flat disbursement numbers in Q1 FY25 and the ability to achieve ambitious future targets.

- Competition: The management acknowledges the stiff competition in the home loan market, especially from small finance banks and microfinance institutions.

- Pressure on Yields: While RHFL has passed on increased costs to customers, they anticipate potential difficulties in maintaining the spread if cost of funds continue to rise.

Other Important Points:

- Quality Focus: Management emphasized their focus on maintaining asset quality and conscious growth, as opposed to solely chasing high growth numbers.

- Experienced Hiring: RHFL is actively recruiting experienced sales and collection staff to bolster operations and drive growth.

- Tech Upgrade: Investments have been made in technology upgrades to improve operational efficiency.

Credit Costs: Management expects credit costs to be under control in FY25, anticipating a possible reversal of provisions

REVENUE DOWN 43 % AT 45.52 CR (YOY) ,DOWN 24 % (QOQ)

EBITDA DOWN 8 % AT 7.1 CR (YOY),UP 62 %(QOQ) 

MARGINS AT 15.6 % V 9.7 % (YOY),7.35 % (QOQ)

REVENUE DOWN 12 % AT 926 CR (YOY) ,UP 4 % (QOQ)

EBITDA UP 21 % AT 260 CR (YOY),UP 71 %(QOQ) 

MARGINS AT 28.15 % V 20.4 % (YOY), 17.2% (QOQ)

GUJARAT AMBUJA EXPORTS Q1; CONS NET PROFIT UP 8% AT 76.7CR (YOY), DOWN 16% (QOQ)

REVENUE DOWN 6% AT 1090.4CR (YOY) , DOWN 19% (QOQ)

EBITDA UP 3% AT 105.7 CR (YOY), DOWN 5%(QOQ) 

MARGINS 9.69% V 8.75% (YOY), 8.27% (QOQ)

WEBSOL ENERGY Q1; NET PROFIT AT 22.8CR V 5CR LOSS (YOY), 58.5CR LOSS (QOQ)

REVENUE AT 111.6CR V 0.18CR (YOY) , V 24.87CR (QOQ)

EBITDA AT 43.97CR V 1.35CR LOSS (YOY), 3.16CR LOSS (QOQ) 

MARGINS 39.39% V 12.7% (QOQ)

KUANTUM PAPERS Q1 : NET PROFIT DOWN 41 % AT 38.18 CR (YOY), UP 13% (QOQ)

REVENUE DOWN 10 % AT 280 CR (YOY) , DOWN 6 % (QOQ)

EBITDA DOWN 35 % AT 71.57 CR (YOY),UP 13 %(QOQ) 

MARGINS AT 25.5 % V 35 % (YOY),21.27 % (QOQ)

HIMATSINGKA SEIDE Q1 :CONS NET PROFIT DOWN 29 % AT 20.55 CR (YOY), DOWN 13% (QOQ)

REVENUE UP 8 % AT 735 CR (YOY) ,UP 6 % (QOQ)

EBITDA DOWN 1% AT 146.5 CR (YOY),UP 1%(QOQ) 

MARGINS AT 19.9 % V 21.65 % (YOY), 20.75 % (QOQ)

CAPRI GLOBAL Q1; CONS NET PROFIT UP 19 % TO 75.7 CR (YOY), DOWN 8 % (QOQ)

NII UP 27 % TO 301 CR (YOY), UP 18 % (QOQ)

JAY BHARAT MARUTI Q1 :CONS NET PROFIT UP 4 % AT 5.38 CR (YOY), DOWN 52 % (QOQ)

REVENUE FLAT % AT 533 CR (YOY) ,DOWN 11 % (QOQ)

EBITDA UP 1 % AT 37.8 CR (YOY),DOWN 13 %(QOQ) 

MARGINS AT 7.05 % V 7.02 % (YOY), 7.2 % (QOQ)

Reliance Infrastructure Announces OTS Proposal Agreement with LIC; Settlement of ₹6B NCD Obligations

Company States Legal Proceedings to Remain in Abeyance Until Dues Are Settled

ZUARI AGRO CHEMICALS: Q1 

CONS NET PROFIT BEFORE EXCEPTIONAL ITEMS 546M RUPEES VS 593M (YOY) 

REVENUE 10.96B RUPEES VS 12.05B (YOY)

DEFERRED TAX 108M RUPEES VS 133M (YOY)

EBITDA 1.18B RUPEES VS 1.24B (YOY) 

EBITDA MARGIN 10.74% VS 10.27% (YOY)

--Net Profit Up 17.6% At Rs 29.4 Cr Vs Rs 25 Cr (YoY)

--Revenue Down 3.9% At Rs 349.4 Cr Vs Rs 363.6 Cr (YoY)

--EBITDA Up 13.4% At Rs 49.7 Cr Vs Rs 43.8 Cr (YoY)

--Margin At 14.2% Vs 12% (YoY)

ANDHRA PETRO Q1:CONS NET PROFIT UP 42 % AT 15.9 CR (YOY),DOWN 64 % (QOQ)

REVENUE DOWN 32 % AT 129.6 CR (YOY) ,DOWN 53 % (QOQ)

EBITDA UP 1214 % AT 19.3 CR (YOY),DOWN 67 %(QOQ) 

MARGINS AT 14.9 % V 0.78 % (YOY), 20.94 % (QOQ)

RAMCO IND Q1 :CONS NET PROFIT FLAT % AT 39.4 CR (YOY),DOWN 10 % (QOQ)

REVENUE UP 11 % AT 543 CR (YOY) ,UP 49 % (QOQ)

EBITDA UP 1% AT 56.8 CR (YOY),UP 43%(QOQ) 

MARGINS AT 10.45 % V 11.5 % (YOY), 10.9 % (QOQ)

CDSL Q1 : CONS. NET PROFIT Up 4 % AT 134 CR (QOQ) ,UP 82 % (YOY)

REVENUE UP 7 % AT 257 CR (QOQ) ,UP 72 % (YOY)

EBITDA UP 4 % AT 154.4 CR (QOQ) , UP 91 % (YOY)

MARGINS AT 60 % V 61.4 % (QOQ) , 53.9 % (YOY)

CDSL Board Approved Additional investment in India International Bullion Holding IFSC Limited (IIBHL) Of Rs 20 Cr

Accordingly, the aggregate investment in IIBHL would be 50 Cr

AFFLE INDIA Q1 :CONS NET PROFIT UP 31 % AT 86.5 CR (YOY),DOWN 1 % (QOQ)

REVENUE UP 28 % AT 519 CR (YOY) ,UP 3 % (QOQ)

EBITDA UP 34 % AT 104.6 CR (YOY),UP 7%(QOQ) 

MARGINS AT 20.1 % V 19.19 % (YOY), 19.35 % (QOQ)

NUCLEUS SOFTWARE Q1: CONS. NET PROFIT DOWN 42 % AT 30.2CR (QOQ) ,DOWN 44 % (YOY)

REVENUE DOWN 7 % AT 195 CR (QOQ) , DOWN 6 % (YOY)

EBIT DOWN 54 % AT 25.06 CR (QOQ) , DOWN 57 % (YOY)

MARGINS AT AT 12.8 % V 25.9 % (QOQ) , 28.5 % (YOY)

Nirman Agri Right Issue of 49 crores

Right Issue Price 239 per share

Right shares of 11 for every 32 shares held

Integra Essentia 

Mcap - 425 Crore

Company Secures Orders Worth INR 28 Crore in Agro and Infra Business Sectors

NET PROFIT 59.6M RUPEES VS 21M (YOY); 120M (QOQ) 

REVENUE 1.2B RUPEES VS 989M (YOY)

EBITDA 131M RUPEES VS 66M (YOY)

EBITDA MARGIN 10.71% VS 6.68 (YOY)

NET PROFIT 51M RUPEES VS 81M (YOY); 28M (QOQ) 

REVENUE 1B RUPEES VS 1.23B (YOY)

EBITDA 103M RUPEES VS 139M (YOY) 

EBITDA MARGIN 9.86% VS 11.30% (YOY)

Provisional Cash Rs. In Crs.

FII/FPI: NET SELL: -3310 

(14184.9 - 17494.9) 

DII: NET BUY: 2965.94 

(16579.92 - 13613.98)

Domestic markets are expected to open on a negative note amid weak global cues. Asian stocks are in a sea of red, led by the Japanese Nikkei, which crashed over 6 per cent after falling over 10 per cent in the last few days. Korea, Taiwan, and Australian markets are down between 2.5 per cent and 7 per cent.

Gift Nifty at 24,360 signals a gap down opening of over 300 points for Nifty. 

Buzzing stocks: Zomato, Infosys, JSW Steel, Adani, Power Mech Projects, Gland Pharma, SJVN, Ashoka Buildcon, Dee Development, Savita Oil, Jay Bharat Maruti, SBI

Orix Corp Ads (Pre market) (Sector- Financial)

Banco Bradesco Sa (Pre market) (Sector- Financial)

Tyson Foods, Inc. (Pre market) (Sector- Retail)

BioNTech SE (Pre market) (Sector- Healthcare)

The Carlyle Group Inc. (Pre market) (Sector- Financial)

CSX Corporation. (Post market) (Sector- Logistics)

Palantir Technologies Inc. (Post market) (Sector- Technology)

Williams Companies, Inc. (Post market) (Sector- Energy)

Simon Property Group, Inc. (Post market) (Sector- Realty)

Realty Income Corporation (Post market) (Sector- Realty)

Diamondback Energy, Inc. (Post market) (Sector- Energy)

BioMarin Pharmaceutical Inc. (Post market) (Sector- Healthcare)

Fidelity National Financial, Inc. (Post market) (Sector- Financial)

AECOM (Post market) (Sector- Capital Goods)

Yum China Holdings, Inc. (Post market) (Sector- Hotels)

Essential Utilities, Inc (Post market) (Sector- Miscellaneous)

Lucid Group, Inc. (Post market) (Sector- Automobiles)

Sumitomo Mitsui Financial Group Inc (TENT) (Sector- Financial)

Centrais Electricas Brasileiras S.A. - Eletrobras (TENT) (Sector- Power)

Japan’s equity downturn extended into a third day as weak US jobs data further eroded investor confidence already shaken by a yen surge, rising interest rates, and geopolitical tensions in the Middle East.

The Nikkei 225 Stock Average fell as much as 5.54% to 33,919.90 in early trade, marking a 21% drop from its record high, signaling a bear market. The benchmark, which entered a technical correction last month, has declined nearly 12% over three days.

An increase in capacity and spillover of sea cargo to air routes due to the Red Sea crisis helped Indian airports post double-digit volume growth in April-June quarter on a year-on-year basis.

Overall international freight handled by airports rose 18.4 per cent to 5.68 lakh metric tonnes in the first quarter of FY25. All the major airports reported growth including Delhi (24 per cent ), Mumbai (12 per cent), Bengaluru (25.4 per cent), and Chennai (10 per cent).

Global equity markets have come under pressure as the fear of a #recession in the #US has resurfaced after the weak economic data releases last week. The initial trigger for the fall in equities came from the #PMI data release on Thursday and the #jobsdata release on Friday has added more fuel to it.

Long-term investors with a minimum time frame of two years can buy Tanla Platforms (₹980.10) at current levels. The downtrend in place since January 2022 ended in March last year. The strong bounce thereafter lost steam in August last year, and the share price has declined since then. 

The short-term outlook for the stock of ITC (₹489.10) is flat to negative although the long-term outlook still remains positive. Only a close below ₹383 will alter the positive view on the stock. Yet, in the near term, the price could drop. Immediate support levels are at ₹466 and ₹440. A break below the latter will trigger a sharp slide.

Nifty 50 (24,718) was down 0.5 per cent, whereas Bank Nifty (51,350) posted a marginal 0.1 per cent gain last week. Below is an analysis of futures and options (F&O) data.

We zoom in on the prospects of Federal Bank, as also the prospects of two other stocks — PNC Infratech and Shanthi Gears

Here is what the charts say about the shares of Cigniti Technologies, Kansai Nerolac Paints and Senco Gold

The stock idea that we have for you today is Caplin Point Laboratories. The stock has surged over 7 per cent last week and has closed on a strong note. Friday’s rise above ₹1,600 indicates that the momentum is strong.

The short-term outlook for Caplin Point Laboratories is bullish. The 3.5 per cent rise on Friday has taken the share price well above the ₹1,600 mark. Immediate support can be around ₹1,620. Below that, a lower and strong support is around ₹1,570. 

Eight of the top-10 most valued firms together lost ₹1,28,913.5 crore in market valuation last week, with IT majors Tata Consultancy Services (TCS) and Infosys emerging as the biggest laggards, amid weak trend in equities.

In the ranking of the most valued firms, Reliance Industries retained the number one rank followed by TCS, HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, LIC, Hindustan Unilever and ITC.

Gold and silver prices appreciated last week. MCX gold futures was up 1.7 per cent and MCX silver futures gained 1.4 per cent as they closed at ₹69,789 (per 10 gram) and ₹82,493 (per kg) respectively.

The US Treasury yields were knocked down badly last week. The first trigger for the fall came from the US Federal Reserve on Wednesday. The Fed kept the rates unchanged as expected. However, the central bank hinted that a rate cut is possible in its September meeting. This dragged the US 10Yr yield from around 4.15 per cent to 4.03 per cent on Wednesday. The weak US Manufacturing Purchasing Managers Index (PMI) on Thursday and the job numbers on Friday intensified the fall and dragged the yield below the 4-per cent mark.

Highway construction was in the slow lane in FY24, with total awards of 8,581 km, as against a planned target of 13,290 km. The general elections, and issues in some areas related to escalated land acquisition costs, slowed down the segment.

Friday was a down day for Nifty 50 but that was after the index crossed yet another milestone on Thursday. On Thursday, the Nifty 50 index closed above 25,000 for the first time. It had scaled 20,000 for the first time on September 13, 2023 and since then it has been a remarkable journey for the index, through geopolitical tensions, budgets and an election. Which companies powered the index to the new milestone?

Global equity markets are under pressure. The fear of a recession in the US has resurfaced after some weak economic data releases last week. The trigger for the fall came initially on Thursday after the weak US Purchasing Managers Index (PMI) data. That triggered a sharp sell-off in the Dow Jones Industrial Average which, in turn, has spilled over to the global equities. The Dow Jones has declined over 2 per cent last week. In India, the Sensex and Nifty 50 were down about 0.4 per cent each.

As of Friday’s close, Japan’s Nikkei 225 is down 15 per cent from its all-time highs reached a just few weeks back, on July 11. Its 5.8 per cent decline on Friday is one of its worst single day decline ever.

And if the follow through were to sustain on Monday’s opening — as indicated by the Nikkei Futures trading down by another 5 per cent following weak economic data from the US on Friday — it could be knocking on the doors of a bear market in less than a month from its peak.

The Nifty-50, last week, scaled yet another peak of 25,000 in its relentless momentum over the last four years. While the primary driver — earnings growth — has been dissected in several ways, there are other drivers of valuations that largely go unnoticed.

Rule number one in fundamental investing is that equity valuations are driven by earnings potential. 

Mutual funds have raised their holdings in BSE to 8.78 per cent in the quarter ended June from 8.52 per cent in the previous quarter. This is the fourth consecutive quarter where MFs have raised their holdings in the bourse.

Foreign portfolio investors, on the other hand, have decreased their holdings in BSE to 11.09 per cent from 13.01 per cent in the same period. The number of FPI investors have decreased from 418 to 395.