Share Market Highlights 13 May 2024: Sensex and Nifty recover to trade in green; Cipla gains over 5%

Benchmark equity indices Sensex and Nifty staged a dramatic rebound on Monday to settle higher following buying in HDFC Bank, ICICI Bank and Tata Consultancy Services.

Read more here.

Online food delivery firm Zomato reported a consolidated net profit of ₹175 crore in the March quarter aided by higher revenue. It had posted a consolidated net loss of ₹188 crore in the corresponding period in the previous fiscal. Consolidated revenue from operations stood at ₹3,562 crore, up 75 per cent on the ₹2,056 crore posted in the year-ago period.

Read more here.

The rupee consolidated in a narrow range and settled for the day lower by 1 paisa at 83.52 (provisional) against US dollar on Monday, as the support from positive domestic equities was negated by strong American currency.

Forex traders said with foreign investors buying US dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias.

Read more here.

Ethos Limited, a luxury watch boutique chain, reported financial results for Q4 FY24 and FY24, with revenue reaching ₹252.5 crore and ₹999 crore, respectively, showcasing 21.7% and 26.7% YoY growth. 

The company’s EBITDA margin stood at 17.0% and 17.1% for Q4 FY24 and FY24, respectively. 

Shares were up by 2.22% to ₹2319.30 on the BSE.

NSE Nifty was up by 0.22 per cent or 48.85 points to 22,104.05, while the BSE Sensex was at 72,776 up by 0.15 per cent or 111.63 points.

Major gainers:

Tata Motors (-8.34%), Bharat petroleum corporation (-1.72%), Shri Ram finance (-1.67%), Coal India (-1.15%), Ntpc (-1.13%)

Major losers:

Cipla (6.08%), Asian paints (3.85%), HDFC life insurance company (3.57%), Adani Enterprises (3.27%), Adani ports (3.03%)

Samvardhana Motherson International Limited completed the acquisition of a 100% stake in SSCP Aero Topco SAS, including subsidiaries, for a purchase consideration of €30.3 million. The shares were down by 1.92% to Rs 125.20 on the BSE.

Goldiam International Limited secured new export orders worth ₹30 crore for manufacturing lab-grown diamond studded gold jewellery from international clients. The orders are to be executed by August 30, 2024. The shares were down by 1.11% to ₹160.10 on the BSE.

Suzlon Energy Limited approved the scheme of amalgamation with Suzlon Global Services Limited, its wholly owned subsidiary, in a move to streamline operations and consolidate resources. The shares were down by 3.39% to Rs 38.52 on the BSE.

Praveg Limited secured a 30-year land lease in Jawai, Rajasthan, for a luxury cave resort, emphasizing eco-responsible practices. The shares were down by 2.01% to Rs 884.95 on the BSE.

Aluminium prices have been volatile within a range for some time now. The Aluminium Futures contract on the Multi Commodity Exchange (MCX) fell to a low of ₹228.30 kg at the beginning of last week. Though it bounced back sharply from there, the contract failed to get a strong follow-through rise and remained stable around ₹235 per kg. It is currently trading at ₹232 per kg.

TVS Srichakra Ltd. reported Eurogrip Tyres inaugurated its first branded retail store in Velachery, Chennai, to offer tyre patterns, tubes, and allied services for 2-wheelers. The store also features riding accessories from TVS Racing and 2-wheeler lubricants from Veedol. The shares were up by 1.15% to ₹4045 on the BSE.

Varun Beverages Limited acquired 9.80% (5.25% on a fully diluted basis) of Equity Share Capital of Isharays Energy Two Private Limited for ₹1.92 crore to enhance its presence in the solar power supply sector in Uttar Pradesh. The shares were down by 1.93% to ₹1435 on the BSE.

Mumbai-headquartered Rulka Electricals Limited IPO opens on May 16, 2024; price band fixed at Rs. 223-235

· Anchor Book will open on Wednesday, May 15, 2024, while the issue will be closed on Tuesday, May 21, 2024

· IPO comprises a fresh issue of 8,42,400 equity shares and an Offer for Sale of up to 2,80,800 equity shares with a face value of Rs. 10 each through the book-building route

· The company proposes to use Rs. 14 crore of the IPO proceeds to meet the working capital requirements for the expansion of its business activities. The remaining capital is to be used for general corporate purposes and public offer expenses

· REL is a leading turnkey project contractor offering a wide range of electrical and firefighting services

· Beeline Capital Advisors Private Limited is the sole Book Running Lead Manager, and Bigshare Services Private Limited is the Registrar for the Issue

Royal Orchid hotels Ltd launched ‘The World’, Gujarat’s 5-Star Hotel in Surat, featuring 288 opulent suites designed for both business and leisure travelers. The shares were down by 3.27% to ₹366.05 on the BSE.

Varun Beverages Limited reported results for Q1FY2024, with a 10.9% YoY revenue growth to ₹4317.3 crore. The company’s EBITDA increased by 23.9% to ₹988.7 crore, and PAT rose by 24.9% to ₹547.98 crore. Shares were down by 0.25% to ₹1459.60 on the BSE.

A total of 3,944 stocks were actively traded, 1,327 advanced, while 2,464 declined and 153 stocks remained unchanged where 150 stocks hit a 52 week high and 49 stocks hit a 52 week low at 12.20 pm on the BSE.

Major gainers:

Cipla (5.37%), Asian Paint (3.25%), Divis Laboratories (2.54%), HDFC life insurance company (2.09%), Britannia industries (1.22%)

Major losers:

Tata Motors (-8.18%), Shri Ram finance (-2.27%), Hero Motocorp (-2.21%), Bharat petroleum corporation (-2.05%), IndusInd Bank (-1.68%)

Sarveshwar Foods Limited secured a contract to supply steamed Basmati Rice to the Vaishno Devi Shrine Board in Jammu and Kashmir. The shares were down by 0.71% to ₹8.41 on the BSE.

Kilburn Engineering Limited secured orders worth ₹33.73 crore for various equipment, including Fluid Bed Dryers, Rotary Dryers, Air Preheaters, and Pelletizers. The shares were up by 0.25% to ₹355 on the BSE.

Bharti Airtel Ltd reported it enhanced network coverage in Patan District, Gujarat, through its rural network expansion project, benefiting 2.53 lakh people across 135 villages. Shares were down by 0.87% to ₹1291.30 on the BSE.

Shreeji Translogistics Limited was awarded with the “Top Logistics Champion – Mid Tier Award” at the 6th India Logistics Strategy & Awards 2024. The shares were up by 2.20% to ₹30.19 on the BSE.

Alkosign Limited received an order from Appario Retail Private Ltd for the supply of 4761 units of Whiteboard Dry Magnetic, including accessories, for a total consideration of ₹33.59 lakhs. The order is to be executed within 45 days and was awarded by a domestic entity. The shares were up by 0.62% to ₹163 on the BSE.

SpiceJet announced daily non-stop flights from Delhi to Phuket, Thailand, starting May 31, 2024, offering travelers access to the Pearl of the Andaman Sea. The shares were up by 0.13% to ₹55.63 on the BSE.

Shares of Tata Motors on Monday tanked more than 9 per cent after the company’s March quarter earnings failed to cheer investors.

The stock plunged 9.44 per cent to ₹948 a share on the BSE.

On the NSE, it tanked 9.50 per cent to ₹947.20 apiece.

The company’s market capitalisation (mcap) was wiped out by ₹29,946.88 crore to ₹3,17,998.73 crore.

Bharti Airtel Ltd and Google Cloud forged a collaboration to accelerate cloud adoption and deploy AI solutions, leveraging Airtel’s connectivity and Google Cloud’s technologies. The market is projected to reach $17.8 billion by 2027, as per IDC. The shares were down by 1.02% to ₹1289.25 on the BSE.

SME IPO of ABS Marine Services Limited, capitalises on company’s position in offshore vessel and crew management. The company has demonstrated an increase in financial performance starting FY22, supported by six high-margin contracts and a sound project pipeline. The IPO’s valuation is indicating an appealing investment opportunity for those looking at long-term growth.

Moreover, the engagement of numerous Qualified Institutional Buyers (QIBs) for the anchor portion adds a layer of reassurance, highlighting institutional confidence in the company’s prospects and operational model.

However, the firm’s reliance on PSU contracts may introduce uncertain regulatory and tender pricing risks. The strategy of acquiring vessels from the secondary market could face challenges in vessel availability and market price volatility. The revenue concentration from a single contract with the Ministry of Earth and Science underscores the importance of broadening revenue sources to mitigate financial risk.

In light of these considerations, ABS Marine Services Limited offers an investment opportunity, balancing its promising financial metrics and potential market strategy risks, suited for investors aiming for long-term benefits.

The Average Net Assets Under Management of the northeastern states has grown by nearly 145 per cent from 2020 to touch Rs 40,324 crore in March 2024, up from Rs 16,446 crore in March 2020, indicating a growing appetite among investors from smaller towns and cities to invest in mutual funds. The share of the northeastern states increased to 0.73 per cent of the total AAUM of the mutual fund industry, which stood at Rs 55.01 lakh crore in March 2024, up from around 0.67 per cent in March 2020, when the industry’s AAUM stood at Rs 24.71 lakh crore.

Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics said though the contribution of these states to the total AAUM of the industry is still small in percentage terms, there has been a steady and consistent growth in mutual fund inflows in these states backed by increasing awareness among people and the growing interest among retail investors for investing in equities through the mutual fund route. - Our Mumbai Bureau

Fineotex Chemical Limited is in advanced discussions for a potential acquisition of a specialty chemical manufacturing company. Negotiation is in progress. Shares were up by 1.15% to ₹348.80 on the BSE.

Hinduja Global Solutions launched a suite of Cybersecurity solutions, leveraging technologies like AI and ML for security. The suite offers seven tailored offerings to protect enterprises against evolving cyber threats. The shares were down by 1.50% to ₹812.50 on the BSE.

Anand James, Chief Market Strategist, Geojit Financial Services

“VIX’s behaviour now has a lot of similarity to the period shortly before the 2019 electoral results announcement. Then too, markets had come off peaks in March, and VIX shot up to 28.6. The main difference is that prior to this, VIX was in a 20-14 range during the previous 6 months, pointing to volatility expectations being reasonably high for an extended period. In stark contrast, VIX’s rise from record lows to above 20 now, has unfolded in just a fortnight’s time. Vi of change of VIX, may lead to a cool off, perhaps even before the electoral results.”

Global Platinum Deficit in 2024 is expected to be deeper than expected due to lower supply from South Africa and Russia mines.

Deficit of 476,000 troy ounces lower than last year’s supply of 851,000 ounces due to 5 per cent decrease in demand.

Demand for platinum expected to fall by 5 per cent to 7.587 million ounces this year.

Auto sector demand expected to increase by 2 per cent due to slower consumer demand, growth in heavy-duty and hybrid vehicles, stricter emissions legislation and platinum-for-palladium substitution. - Our Mumbai Bureau

Shares of healthcare tech firm Indegene Ltd. were listed on Monday at a premium of nearly 46 per cent against the issue price of ₹452.

The stock listed at ₹659.70, up 45.95 per cent from the issue price on the BSE.

At the NSE, it started the trade at ₹655, registering a 44.91 per cent gain.

The Initial Public Offer (IPO) of Indegene was subscribed 69.71 times on Wednesday, last week’s closing day of bidding.

Nifty continues to trade under pressure. The index has begun the week on a weak note. It is currently trading at 21,848.75, down 0.94 per cent. The advances/declines ratio is at 9:41. This is very bearish. It indicates more fall could be on the cards during the day.

There is support in the 21,850-21,800 region. If that holds, we can get a bounce back move towards 21,900-21,930 during the day

Indegene, the provider of digital-led commercialization services for the life sciences industry, defied market negativity with a spectacular debut on the stock exchanges. The company’s shares are listed at a staggering Rs. 655 per share, translating to a phenomenal 45% gain over its issue price of Rs. 452. This impressive performance comes on the back of a strong investor response, with the IPO receiving an overwhelming 70 times subscription.

Indegene boasts a well-established presence in the life sciences sector, serving leading biopharmaceutical companies and demonstrating consistent growth. The company’s robust technology portfolio and focus on digital-led services position it well for future success in a rapidly evolving market.

Long term investors are suggested to hold their position by keeping stoploss and continue monitoring the company’s performance and market conditions

Dilip Buildcon Limited announced the provisional completion of the Gorakhpur Link Expressway project in Uttar Pradesh. Shares were down by 5.11% to ₹ 446 on the BSE.

Bank Nifty, which depreciated 3.1 per cent last week, seems to carry over the bearish sentiment this week too. It opened today’s session with a gap-down at 47,390 versus Friday’s close of 47,421. 

The banking index fell further after opening and is now hovering around 47,090, down 0.7 per cent by the end of the first hour of today’s session. Substantiating the downward inclination, all 12 stocks in the index are down. Punjab National Bank, down 2.7 per cent, is the top loser.

Indian markets have witnessed aggressive selling by Foreign Portfolio Investors (FPIs) in May, with a staggering amount of Rs 17,082 crores as per data by National Securities Depository Limited.

The selling pressure in the market extends further with Foreign Institutional Investors (FIIs) unloading a much higher sum of Rs 24,975 crores in the cash market. This divergence in institutional activity has become notably prominent this month, with FIIs consistently selling stocks and Domestic Institutional Investors (DIIs) avidly buying them up. Cumulatively, FIIs have sold stocks worth Rs 24,975 crores, while DIIs have purchased stocks amounting to Rs 19,410 crores throughout the month.

The data indicates that the broader market has witnessed sharper declines, suggesting that High Net-worth Individuals (HNIs) and retail investors are opting to cash in some profits and adopt a cautious stance, possibly in response to uncertainties surrounding the ongoing elections in India.

However, according to market experts and analysts, the FIIs’ selling isn’t merely driven by election concerns but also by India’s underperformance compared to other markets. - PTI

The rupee was trading in a narrow range against the US dollar in early trade on Monday, tracking a weak trend in domestic equities and strong American currency.

Forex traders said with foreign investors buying US dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.51 against the American currency and touched 83.52 in initial trade, registering a fall of 1 paisa from its previous close.

On Friday, the rupee closed at 83.51 against the American currency. - PTI

Biocon Limited announced the signing of a semi-exclusive distribution and supply agreement with Medix, a pharmaceutical company in Mexico, for the commercialization of Liraglutide (gSaxenda), used in the treatment of chronic weight management. The shares were down by 1.71% to ₹298.80 at 9.40 am on the BSE.

A total of 3,199 stocks were actively traded, 1,243 advanced, while 1,793 declined and 163 stocks remained unchanged where 78 stocks hit a 52 week high and 16 stocks hit a 52 week low at 9.36 am on the BSE.

CITI on Bank of Baroda

Buy, TP Rs 300 

Core NIMs expand 5bps qoq, reported NIMs had 12bps benefit of seasonal recoveries. 

NII growth at 6% qoq was, thereby, higher than CitiE 

Mgmt. reiterated guidance of 3.1-3.2% of NIM 

HSBC on Bank of Baroda

Hold, TP Rs 270 

In 4QFY24, stable NIM and loan growth were positives, credit costs increased, & retail deposits growth remained muted 

Over FY25-27e, est stable loan growth, slight NIM compression, & some normalisation in credit costs 

JPM on Bank of Baroda

OW, TP Raised to Rs 340 

4Q PAT (Rs48.9bn; ROE: 17.5%) was 4% ahead of JPMe on higher non-II even as the bank took additional wage revision hit and prudential provisioning on its Go-Air exposure. 

Core PAT 6% ahead of est. 

MS on Bank of Baroda

EW, TP raised to Rs 280 

4Q strong overall; bank guided to 1.1% ROA for F25. 

Post-results correction likely reflects higher slippages QoQ (tends to be volatile) 

Expect stock recovery to continue given relatively better vals + strong b/s & profitability

JPM on Eicher Motors

Neutral, TP Raised to Rs 4230 

4Q broadly in-line 

Management guided to double-digit industry growth for middleweight 2W category 

Believe current price already bakes in +ve market share momentum, new launches & recent export recovery 

MS on Eicher Motors

UW, TP Raised 3533 

F4Q in line at EBITDA level 

Co, similar to peers, was positive on FY25 volume growth 

Believe Royal Enfield is moving from high growth with high margins to low growth with high margins; multiples in context of long-term growth look expensive 

Jefferies on Eicher Motors

Buy, TP Rs 6000 

4Q EBITDA/PAT rose 18-21% YoY, in line 

RE vol up 4% YoY, while EBITDA/vehicle rose 4% QoQ 

Believe EIM should benefit from 2W demand revival & premiumization, & see ltd. impact from Harley & Triumph launches 

Kotak Inst Eqt on Eicher Motors

Sell, TP Rs 3400 

Consol EBITDA of Rs11.3 bn, 4% below expectations, led by lower-than-expected ASPs & higher-than-expected employee expenses 

Domestic demand trajectory has not witnessed any material uptick post launch of Hunter 350 

Vals expensive 

CITI on Tata Motors

Rating suspended 

Reported steady 4Q, with slight margin expansion in JLR & robust trends in India (PV & CV) biz 

Outlook is cautiously optimistic though 

Focus is on debt reduction, with aim of zero net debt in JLR by FY25 

CLSA on Tata Motors

O-P, TP Rs 1181 

Domestic business turns net cash in 4QFY24 

JLR on strong footing 

CV business: margins in-line with our estimates 

PV business: EV drags down margin while ICE margin improves 

JPM on Tata Motors

OW, TP raised to Rs 1115 from Rs 1050 

4Q consol. earnings came in line but FCF beat expectations as well as guidance 

Management maintained its guidance of turning net cash positive in JLR & on a consolidated basis by end of FY25. 

Jefferies on Tata Motors

Buy, TP Raised to Rs 1250 

4Q EBITDA up 33% YoY (+11% QoQ) to a new high EBITDA rose 10-23% QoQ across JLR & India CV/PV; net auto debt fell 45% QoQ to 6-yr low 

Like given strong biz cycle at JLR, product launch in India PVs in 2HFY25 &strong deleveraging 

Va Tech WABAG (‘WABAG’), a leading player in the water technology space, has bagged a repeat order of about $49 Million from Kathmandu Upatyaka Khanepani Ltd (KUKL). The scope of the project, funded by the Asian Development Bank (ADB), includes the design, build, operate (DBO), towards three wastewater treatment plants (WWTP) in Nepal at Sallaghari, Kodku and Dhobighat to treat about 69 MLD of wastewater.

Buy, TP raised to Rs 7708

Strong Q4 on strong growth in C&W biz 

4Q rev/EBITDA/ PAT at Rs56bn/Rs7.6bn/Rs5.5bn grew 29%/25%/29% YoY & ahead of est 

Internals strong with healthy cash accretion & good control on WC 

GS on Polycab

Buy, TP Rs 6360 

Reported 4Q revenue growth of 29% yoy, +11% vs GSe & VA consensus primarily driven by 24% yoy growth in Cables and Wires along with 17% yoy growth in FMEG (albeit on a low base) 

Mgmt announced RDSS orders of Rs48bn to be executed over next 2-3 yrs 

Kotak Inst Eqt on Polycab

Sell, TP raised to Rs 4260 

Reported strong 4Q that topped expectations amid continued robust demand for cables 

Co has upsized its capex plan to Rs10-11 bn per yr (from Rs6-7 bn previously) for next 2-3 yrs in view of demand strength 

Sell on rich vals

Buy, TP raised to Rs 8830 

Delivered top-line/EBITDA/PAT 4%/27%/25% above UBS est. 

New order run rate, at Rs36bn (up 15% YoY/ QoQ), was 2%/9% above UBS/consensus est. 

Recurring EBITDA margin, at 16.6% (up 520/180 bps YoY/QoQ), fared 160/270bps better than UBS/consensus 

Nomura on ABB

Neutral, TP Rs 6660 

1QCY24: EBITDA beat of 49% vs est. 

Gross margin stood at 40.2%, up 393bp y-y 

Management anticipates increased demand for technologically superior solutions, + govts capital expenditure has significantly driven order momentum 

Jefferies on ABB

Buy, TP Raised to Rs 8845 

1QCY24 EBITDA 52% higher than expectations 

as margins expanded by 650 bps YoY to 18.3% vs expectations of 12.2%. 

Order flows rose 15% YoY 

Co ’s release indicates that there is no material one-off in margins 

OW, TP raised to Rs 1540

Healthy outlook; encouraging margin guidance 

4Q rev/EBITDA broadly in line 

PAT ahead aided by higher other income & lower taxes 

Key catalysts- Goa reinspection (likely 1HFY25)& gAdvair launches by FY26 

EBITDA guidance of 24.5-25.5% for FY25 

Jefferies on Cipla

Hold, TP Rs 1400 

4Q rev marginally missed est; EBITDA miss 5% while PAT beat helped by other income 

EBITDA margin guidance of 24.5-25.5%, higher by 180bps at midpoint than previous est 

Key US product (gAbraxane, gRevlimid) launch timelines pushed back again 

HSBC on Cipla

Buy, TP Rs 1600 

Slight rev miss, though higher GM on better mix & cost efficiency led to c50bps beat at EBITDA margin 

Expects FY25e EBITDA margin of 24.5%-25.5% 

FDA clearance of Goa plant & differentiated launches in US are catalysts 

Upgrade to O-P, TP Rs 2590

4QFY24: In line revenue, beat on margin and PAT 

Guided for double-digit revenue growth in FY25 

Swastfit bundled tests and pan-India expansion should drive growth 

MS on DR Lal

OW, TP Rs 2681 

4Q witnessed better traction, both on patient and test volumes. 

Management is turning positive on industry trends and expects growth momentum to continue in F25 

Prefer DLPL for its strong execution, plus valuations appear favorable. 

GS on DR Lal

Sell, TP Rs 2150 

Subdued vol growth despite favorable base; guidance implies growth to remain below pre-Covid levels 

EBITDA margins at 26.5%, (+156bps yoy) 

Believe emergence of credible competition in co’s key regions led to structural vol decline 

Indian benchmark indices, Sensex and Nifty, opened cautiously on Monday, reflecting a weak global signal. The 30-share BSE Sensex dropped 264.31 points to 72,400.16 in early trade. The NSE Nifty fell 78.80 points to 21,976.40. 

Analysts anticipate a volatile market, particularly in the mid- and small-cap sectors. The unrelenting selling by foreign portfolio investors is expected to pose a challenge for the market. Of particular concern is the VIX, which has now surpassed 18, a significant threshold that signals market nervousness and should be carefully considered by investors.

Equities across Asia-Pacific region are down in early deals on Monday due to weak China.

Last week, FIIs net sold ₹18,343 crore (>$2 bn) in the cash market, while DIIs provided buying support with a net buy figure of ₹14,657 cr. For the week, Nifty and Sensex closed with losses of 1.9 per cent and 1.6 per cent, underperforming global markets. Broader markets bore the brunt this week, with cuts of 3.3 per cent and 3.8 per cent for the BSE Midcap and SmallCap indices, respectively, said SBI Securities in a wrap.

“Next week, we expect volatility in the markets to continue. The earnings will keep trickling in leading to stock specific action continuing. Nearly 440 companies are due to announce their 4QFY24 results between 11th May to 18th May. Macroeconomic data like India and US CPI data, trade deficit numbers and ongoing elections will be key developments to be tracked,” it added.

According to Ajit Mishra – SVP, Research, Religare Broking Ltd, given the pressure across most sectors, traders are advised to adjust their positions accordingly, restricting long positions to sectors such as FMCG and automotive that exhibit strength amidst the downturn.

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, noted a significant battle between call and put writers at the 22,000 Strike in Nifty. This level, which saw both call and put writing, is a crucial point that could potentially determine the market’s direction. If put writers (Bulls) exit from the 22,000 Strike, it could lead to a further fall in Nifty, a scenario that traders should be prepared for.

According to him, Bank Nifty continued its slide for the seventh consecutive day and closed 67 points lower at 47,421. “Strong call writing was observed at the 47,500 Strike in Bank Nifty. The 47,400 Strike witnessed a fierce battle between both the call and put writers. An up move is likely in Bank Nifty if call writers exit from the 47,500 Strike,” he further said. 

“We advise investors to exercise caution and accumulate good quality stocks during this volatile phase,” SBI Securities said in its weekly wrap.

Crude oil futures traded lower on Monday morning amidst mixed data on inflation from China. At 9.10 am on Monday, July Brent oil futures were at $82.53, down by 0.31 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $78.06, down by 0.26 per cent. May crude oil futures were trading at ₹6528 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday morning against the previous close of ₹6551, down by 0.35 per cent, and June futures were trading at ₹6513 against the previous close of ₹6535, down by 0.34 per cent.

With more nuclear families rising in India, the buying pattern of the customers is also changing and they prefer travelling in a shared cab or even subscription model, which may impact the pattern of car sales in future, a top official at Maruti Suzuki India (MSIL) has said.

“More and more people are living in a nuclear family and this nuclear family trend is increasing in India. That is changing the lifestyle of the people...so that is also effecting the car buying pattern,” Hisashi Takeuchi, Managing Director and Chief Executive Officer, MSIL, said recently on the side-lines of the new Swift launch.

Fast-Moving Consumer Goods (FMCG) major Marico Ltd is eyeing acquisitions in South Asia as part of its strategy to ramp up growth in the region.

The international business comprises 26 per cent and is delivering a healthy growth rate in the last three to four years. 

Moved into short-term ASM framework: Allsec Technologies, Cartrade Technologies, Future Consumer,

Ex/record dividend: Aptech, HDFC Bank, Transformers and Rectifiers, Bank of Maharashtra, Ramkrishna Forgings, UCO Bank, DCB Bank.

Steel Exchange of India: Vizag Profiles sold 59 lakh shares (0.49%) at Rs 13.25 apiece. 

TBO Tek: The public issue was subscribed to 86.7 times on day 3. The bids were led by institutional investors (125.51 times), non-institutional investors (50.6 times), retail investors (25.74 times), and portion reserved for Employees (17.82 times). 

Aadhar Housing Finance: The public issue was subscribed to 25.49 times on day 3. The bids were led by institutional investors (72.78 times), non-institutional investors (16.5 times), retail investors (2.46 times), and portion reserved for Employees (6.52 times).

Vedanta: The company’s unit, CIHL, acquired an additional 46.57% stake in AvanStrate for JPY 12.2 billion.

* Wipro:* The company appointed Vinay Firake as CEO for the Asia Pacific, India, Middle East, and Africa strategic market unit.

* Lupin:* The US Court has lifted a temporary restraining order for Mirabegron ER Tablets. The shipment of the product has now resumed.

* Housing & Urban Development Corporation:* The company is in a pact with Surat Integrated Transportation Development Corp. for the development of the Surat Multi-Modal Transportation Hub.

* Aditya Birla Fashion and Retail:* The company’s arm, Clothing Retail, allotted shares worth Rs 100 crore. The company’s stake in the arm stands at 85.54%, up from 80% earlier.

* Andhra Paper:* The company is in a pact with Sweden-based Valmet AB for the supply and commissioning of a tissue paper production line.

ICICI Bank: Bijith Bhaskar resigns as Head – Cards, Payment Solutions, E-Commerce Ecosystem, Merchant Ecosystem, Consumer Finance of the comp

* Lemon Tree Hotels:* The company signed a pact for an upcoming 60-room hotel in Bareilly, Uttar Pradesh.

* Nuvama Wealth Management:* Mihir Nanavati resigned from the position of CFO effective May 14. The company appointed Bharat Kalsi as CFO effective May 15.

Prestige Estates Projects: Venkata Narayana K. resigned from the position of CEO.

Tata Motors (Consolidated, YoY)

Revenue up 13.26% at Rs 1.19 lakh crore vs Rs 1.05 crore (Bloomberg estimate Rs 1.21 lakh crore). 

Ebitda up 32.81% at Rs 16,995 crore vs Rs 12,795 crore, (Bloomberg estimate Rs 17,407 crore).

Margin up 208 bps at 14.16% vs 12.07%, (Bloomberg estimate 14.4%). 

Net profit up 218.93% at Rs 17,529 crore vs Rs 5,496 crore, (Bloomberg estimate 6,967 crore). 

Note: Deferred tax write-back of Rs 9,478 crore vs Rs 1,737 crore. 

Kalyan Jewellers (Consolidated, YOY)

Revenue up 34.09% at Rs 4535 crore vs Rs 3388 crore, (Bloomberg estimate Rs 4506 crore). E

bitda up 19.27% at Rs 306 crore vs Rs 257 crore, (Bloomberg estimate Rs 315 crore). 

Margin down 83 bps at 6.75% vs 7.59%, (Bloomberg estimate 7%).

Net profit up 97% at Rs 137 crore vs Rs 69.79 crore, (Bloomberg estimate Rs 140 crore). 

TCI Express (Consolidated, YoY)

Revenue down 2.81% at Rs 317 crore vs Rs 326 crore, (Bloomberg estimate Rs 328 crore). 

Ebitda down 17.17% at Rs 44.84 crore vs Rs 54.14 crore, (Bloomberg estimate Rs 51 crore).

Margin down 245 bps at 14.14% vs 16.59%, (Bloomberg estimate 15.6%). 

Net profit down 17.84% at Rs 31.59 crore vs Rs 38.45 crore, (Bloomberg estimate 35.04 crore). 

Dilip Buildcon (Consolidated, YOY)

Revenue up 18.46% at Rs 3365 core vs Rs 2841 crore.

Ebitda up 93.9%at Rs 329 crore vs Rs 170 crore. 

Margin up 381 bps at 9.79% vs 5.98%. 

Net profit up 24.04% at Rs 287 crore vs Rs 231 crore. 

Q1 Earnings ABB India (YOY)

Revenue up 27.75% at Rs 3080 crore vs Rs 2411 crore.

Ebitda at up 98.09% Rs 565 crore vs Rs 285 crore. 

Margin up 651 bps at 18.34% vs 11.83%. 

Net profit up 87.54% at Rs 459 crore vs Rs 245 crore. 

VIP Industries (Consolidated, YoY)

Revenue up 14.6% at Rs 516 crore vs Rs 451 crore (Bloomberg estimate Rs 513 crore).

Ebitda down 87.8% at Rs 8 crore vs Rs 64 crore (Bloomberg estimate Rs 49 crore). 

Margin at 1.5% vs 14.3% (Bloomberg estimate 9.6%). 

Net loss of Rs 24 crore vs loss of Rs 4.3 crore (Bloomberg estimate). 

Neuland Laboratories (Consolidated, YoY)

Revenue down 5.4% at Rs 385 crore vs Rs 407 crore (Bloomberg estimate Rs 415 crore). 

Ebitda down 10.8% at Rs 107 crore vs Rs 120 crore. 

Margin at 27.8% vs 29.5%. 

Net profit down 20% at Rs 67.6 crore vs Rs 84.5 crore (Bloomberg estimate 24.4 crore). 

Cholamandalam Financial (Consolidated, YOY)

Total income up 35.53% at Rs 7158 crore vs Rs 5,281 crore. 

Net profit up 26.97% at Rs 1144 crore vs Rs 901 crore. 

Bank Of India (YoY)

NII up 7% at Rs 5,936 crore vs Rs 5,524 crore. 

Net profit up 6.55% at Rs 1,439 crore vs Rs 1350 crore. 

Gross NPA at 4.98% vs 5.35% (QoQ).

Net NPA at 1.22% vs 1.41% (QoQ). 

Thermax (Consolidated, YoY)

Revenue up 19.59% at Rs 2764 crore vs Rs 2311 crore. 

EBITDA up 36.64% at Rs 273 crore Rs 200 crore. 

Margin up 123 bps at 9.88% vs 8.65%. 

Net profit up 20.08% at Rs 187 crore vs Rs 156 crore.

Sharda Cropchem (Consolidated, YoY)

Revenue down 11.46% at Rs 1312 crore vs Rs 1481 crore, (Bloomberg estimate Rs 1043 crore). 

Ebitda down 19.92% at Rs 255 crore vs Rs 318 crore, (Bloomberg estimate Rs 139 crore). 

Margin down 205 bps at 19.42% vs 21.47%, (Bloomberg estimate 13.3%).

Net profit down 27.84% at Rs 143 crore vs Rs 199 crore, (Bloomberg estimate Rs 63 crore). 

Aarti Industries (Consolidated, YoY)

Revenue up 7.06% at Rs 1773 crore vs Rs 1656 crore, (Bloomberg estimate Rs 1,851 crore). 

Ebitda up 12.3% at Rs 283 crore vs Rs 252 crore, (Bloomberg estimate Rs 289 crore).

Margin up 74 bps at 15.96% vs 15.21%, (Bloomberg estimate 15.6%). 

Net profit down 11.4% at Rs 132 crore vs Rs 149 crore, (Bloomberg estimate Rs 131 crore). 

Syrma SGS Technology (Consolidated, YOY)

Revenue up 66.89% at Rs 1134 crore vs Rs 680 crore, (Bloomberg estimate Rs 973 crore).

Ebitda up 29.29% at Rs 73.66 crore vs Rs 56.97 crore, (Bloomberg estimate Rs 80 crore). 

Margin down 188 bps at 6.49% vs 8.38%, (Bloomberg estimate 8.2%). 

Net profit up 5.43% at Rs 45.21 crore vs Rs 42.88 crore, (Bloomberg estimate Rs 45 crore). 

Punjab and Sind Bank (YoY)

NII up 1% at Rs 689 crore vs Rs 684 crore. 

Net down 69.5% profit at Rs 139 crore vs Rs 457 crore, down 69.5%. 

Gross NPA at 5.43% vs 5.70% (QoQ). 

Net NPA at 1.63% vs 1.80% (QoQ). 

Union Bank of India (Standalone, YoY)

NII at Rs 9436 vs Rs 8250, up 14%. 

Gross NPA at 4.76% vs 4.83% (QoQ). 

Net NPA at 1.03% vs 1.08% (QoQ). 

Net profit up 18.98% at Rs 3310 crore vs Rs 2782 crore. 

Board recommends dividend of Rs 3.6 per share.

Piramal Pharma (Consolidated, YoY)

Revenue up 17.96% at Rs 2552 crore vs Rs 2163 crore (Bloomberg estimate Rs 2482 crore). 

EBITDA up 51.08% at Rs 531 crore vs Rs 351 crore, (Bloomberg estimate Rs 469 crore). 

Margin up 455 bps at 20.79% vs 16.23%, (Bloomberg estimate 18.9%)

Net profit up 102.09% at Rs 101 crore vs Rs 50 crore, (Bloomberg estimate Rs 208 crore) 

AMI Organics - (Consolidated, YoY)

Revenue up 20.69% at Rs 225 crore vs Rs 186 crore, (Bloomberg estimate Rs 213 crore) 

Ebitda up 5.6% at Rs 43.14 crore vs Rs 40.85 crore, (Bloomberg estimate Rs 34.28 crore).

Margin down 273 bps at 19.17% vs 21.91%, (Bloomberg estimate 16.1%). 

Net profit down 5.62% at Rs 25.67 crore vs Rs 27.2 crore, (Bloomberg estimate Rs 23.4 crore). 

Finolex Industries (Consolidated, YoY)

Revenue up 8.26% at Rs 1,235 crore vs Rs 1141 crore, (Bloomberg estimate Rs 1,192 crore).

Ebitda down 3.9% at Rs 209 crore vs Rs 217 crore, (Bloomberg estimate Rs 180 crore). 

Margin down 214 bps at 16.91% vs 19.05%, (Bloomberg estimate 15.1%). 

Net profit down 0.96% at Rs 165 crore vs Rs 166 crore, (Bloomberg estimate Rs 144 crore).

Aarti Pharmalabs, Aditya Birla Capital, Alembic, Bombay Burmah Trading Corp, BLS E-Services, Cera Sanitaryware, Chalet Hotels, DLF, Ethos, Electrosteel Castings, GIC Housing Finance, INOX India, Jindal Steel and Power, C.E. Info Systems, Sanofi India, Tube Investments of India, UPL, Varun Beverages, and Zomato. 

“Throughout the week, the Indian markets largely exhibited a downward trend, signalling an emerging pattern where investors are opting to sell during rallies. This inclination stems from the domestic market’s premium valuation and concerns surrounding the elections due to a lower voter turnout. Despite Q4 domestic earnings largely meeting expectations, there’s a noticeable moderation in the overall earnings landscape. A sector-specific action was visible in FMCG and auto stocks, aided by an expectation of a revival in rural demand in H1FY25. Whereas PSU banks underperformed due to the RBI’s tighter norms on lending to projects under development. On the global front, weaker US payroll data has heightened expectations of potential rate cuts by the Fed. Moreover, the BoE’s stance to keep the interest rate status quo, as widely expected, supported global investor sentiment.

We expect the current trend in the domestic markets to continue in the short term due to election-led uncertainties. In the data-hectic week ahead, investor attention will be focused on the release of India and US CPI data, Europe and Japan’s GDP releases, and the FED chair speech. Furthermore, the next set of Q4 results will also attract market sentiment.”

Prabhudas Lilladher (PL), one of India’s most trusted financial services organisations in India, in its latest thematic report – Water Infrastructure, has estimated India’s water infrastructure or water treatment chemical market to be valued at USD 2.8 bn by 2025. India’s water treatment chemicals market has been valued at US$1.70 bn in 2022 and is anticipated to project robust growth with a CAGR of 7.52% through 2025.

Reaction to India FOREX Reserve increase

Prudent policy reforms and strategic monetary policy measures are consistently boosting India’s Foreign Exchange Reserves. The strengthened foreign reserves, at the level of USD 641 billion, will boost India’s standing in the global economic ecosystem. India’s strong FOREX reserves will provide greater flexibility to the Reserve Bank in the management of the currency, given the geopolitical headwinds and volatility in global commodity prices, said Shri Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry.

Nuvama Wealth Management Limited has reported its financial results and business performance for the quarter and year ending 31st March 2024.

Consolidated Performance

1. Revenues: Q4 FY24 stood at ₹596 Cr, grew by 35% YoY and FY24 at ₹2,063 Cr, grew by 31% YoY.

2. Operating Profit After Tax (PAT): Q4 FY24 stood at ₹181 Cr, grew by 57% YoY and FY24 at ₹597 Cr, grew by 62% YoY.

3. Sustained robust growth in Wealth and Asset Management, FY24 revenues grew by 18% YoY. Capital Markets FY24 revenue grew by 64% YoY supported by robust primary and secondary Indian markets.

Central Depository Services (India) Limited, Asia’s only listed depository, maintaining and providing services to 11.84 crore+ investors, has announced a reduction in transaction charges as part of its ongoing efforts to enhance investor experience in the Indian capital markets.

The revised tariff will be effective from June 01, 2024.

Highlights of the revised tariff are as follows:

· Reduction in tariff by 50 paise per debit transaction across all existing slabs.

· Additional discount of 25 paise on debit transactions in the demat account where the first/sole holder of such account is a female.

· Additional discount of 25 paise on debit transactions done in Mutual Fund ISINs.

· Additional discount of 25 paise on debit transactions done in Bond ISINs.

Logistics 

Result Update May 10, 2024 

TARGET PRICE (Rs) : 1,150

TCIE reported yet another muted quarter, with revenue/EBITDA/PAT declining 3%/17%/18% YoY and missing our estimates by 2%/6%/5%, respectively. Management alluded to macro headwinds in sectors like pharma, lifestyle and textile, as well as jettisoning of a few non-profitable customers impacting its volumes. With H1FY25 expected to be muted owing to seasonality and imminent central elections, double-digit volume growth is likely to be elusive even in FY25 for TCIE. We expect strong competitive intensity to impede TCIE’s top-line growth in the near term. Sustained network investments in automation (Pune hub commissioned) and margin-accretive new services provide comfort on margins. We cut our PAT for FY25/26E by 4%/5%, respectively, while retaining our ADD rating on account of TCIE’s efficient cost management and reasonable valuations. Our Mar-25E TP stands revised down at Rs1,150 (DCF methodology), implying FY26E EV/EBITDA of 21x and P/E of 29x.

Retail May 11, 2024 

TARGET PRICE (Rs) : 1,600

We downgrade Sapphire to ADD (from Buy), on expectation of muted trends in H1FY25 across formats. Mgmt commentary suggests continuation of SSG decline in the KFC/PH India formats (at least for H1FY25) vs. our expectation of earlier recovery. For PH, expansion (that is curtailed), new innovations, and superior experience are showing some initial signs of recovery, though Mgmt remains cautious on higher competition due to Pizza category’s larger size and easier kitchen operations. On the other hand, KFC continues to enjoy cost/marketing leadership in the chicken category, where it focuses on maximizing value & improving customer experience/accessibility via continued network expansion, with ~20% brand margin. But persisting weak demand trends muffle any near-term trigger, prompting our 16%/6% cut to FY25E/26E EBITDA and rating downgrade, with pruned TP of Rs1,600/sh (22x FY26E EBITDA). Faster SSG recovery remains a potential upside to our estimate

Oil & Gas Result Update May 11, 2024 

TARGET PRICE (Rs) : 730

BPCL clocked Q4FY24 EBITDA/APAT of Rs92.7/55.7bn – a sizable 17-18% beat each, driven by higher-than-expected implied marketing margin of ~Rs7/kg (at a 16% beat). BPCL’s reported GRM of USD12.5/bbl (vs. our estimate of USD13.5/bbl) was better than peers’, with LPG buffer net positive vs. net negative for peers. Mgmt. reiterated its capex plans of Rs1.7trn up till CY28, and FY25/26 capex target is Rs150-160/160-200bn. Mgmt. indicated favorable margins at USD80-85/bbl crude price. We maintain our constructive stance on OMCs led by steady marketing outlook, as the general elections pan out and despite the volatile refining scenario. We raise FY25-26E EPS by 15-20% each, on better marketing margins and below operating-line adjustments. We retain BUY, and raise rolled over Mar-25E TP by 22% to Rs730/share, supported by lower net debt. \u0007

Oil & Gas May 11, 2024 

TARGET PRICE (Rs) : 600

HPCL’s Q4FY24 SA EBITDA was 11% lower than expected at Rs48.7bn, mainly due to lower cracks & discounts, MR shutdown, and intermediate stock-generation impact (USD1-1.5/bbl), as reported GRM was USD7/bbl vs our estimate of USD13.5/bbl. Marketing performance was better than expected; but gross/net debt was up 21%/23% QoQ to Rs603/546bn as of Mar-24-end. Mgmt. indicated that the Vizag bottom upgradation benefit (+USD2-2.5/bbl of GRMs) would commence from Q3FY25, besides the first crude at Barmer starting in Q4. FY25 capex target is set at Rs180bn vs. Rs143bn in FY24. We maintain a positive stance on HPCL, led by steady marketing outlook, as general elections pass by. We raise FY25-26E EPS by 4-8% each, largely on better marketing margins; retain BUY with 20% higher Mar-25E TP of Rs600/sh.

Oil & Gas ▶Result Update ▶May 11, 2024 TARGET PRICE (Rs) : 1,680

MGL’s Q4FY24 SA EBITDA/PAT of Rs3.9bn/Rs2.7bn was 6%/10% lower than our expectation, mainly due to lower realization (higher industrial volume share) affecting gross margin and on slightly higher opex. However, standalone volumes surprised positively, registering 12% YoY and 3% QoQ growth to 3.8mmscmd (a 3% beat). EBITDA/scm fell 14% QoQ to Rs11.5 (a 9% miss). Mgmt. raised its volume CAGR guidance to 6-7%, from 5-6% earlier, besides seeing strong growth (double-digit) in the industrial segment. UEPL’s volume stood at 0.14mmscmd vs 1.2mmscmd potential in 7-8 years, whereas total capex target for FY25 is >Rs10bn. We retain FY25-26E earnings and reiterate our positive stance driven by a better volume growth profile than peers, healthy margins, attractive valuation; retain BUY nudged up Mar-25E TP of Rs1,680/sh. 

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“There is aggressive selling by FPIs in May. As per NSDL data FPI selling in May so far stands at Rs 17082 crores.

The selling by FIIs in the cash market is much higher than this at Rs 24975 crores.

The divergence in institutional activity is becoming stark this month. FIIs have turned sustained sellers and DIIs have turned sustained buyers in all trading days of this month, so far, with cumulative FII selling of Rs 24975 crores and cumulative DII buying of Rs 19410crores. From the data showing sharper declines in the broader market, it appears that HNIs and retail investors have booked some profits and are in a wait and watch mode, perhaps responding to the noise relating to uncertainty regarding the election results.

An important point to understand is that FIIs are selling not because of concerns relating to elections but because India is underperforming (Nifty down by 2.06 % in the last one month) while China and Hong Kong are outperforming (Shanghai Composite and Hang Seng up by 3.96% and 10.93 % respectively in the last one month). The FPI strategy is to sell India which is expensive and buy China which is very cheap mainly through Hong Kong. The PE ratio in India is more than double the PE ratio in Hong Kong.

So long as this ‘Sell India, Buy China’ trade sustains FII selling will weigh on the markets. The situation can change dramatically when clarity emerges on the election outcome. If the election results turn out to be favourable from the market perspective, aggressive buying by DIIs, retail and HNIs can push the market sharply up.”

Macro headwinds persists, but sees healthy deal wins

Cyient Ltd., is one of the leading players in the IT-enabled services space, providing services to the Engineering Research and Development segment. 

In Q4FY24, Cyient reported moderate revenue growth of 6.2% YoY. DLM segment revenue surged by 30.4% YoY, attributed to defense & aerospace, whereas DET softened by 6.2% YoY.

EBITDA margin declined by 37bps YoY to 18% due to an increase in sales & marketing costs. However, PAT improved by 15.9% YoY at Rs.189.2cr, due to an increase in other income. 

The company’s deal wins remain strong, having secured nine large deals with a total value of $197.6 million. 

Despite economic challenges, we foresee a strong deal pipeline, a positive revenue mix in Sustainability and Transportation, and a rebound in Connectivity segments to drive future revenue. 

We expect earnings to grow by a CAGR of 20% during FY24–26E. Therefore, we retain our rating to Accumulate with a revised target price of Rs. 1,972 based on SOTP valuation 

(ARBP IN, Mkt Cap USD7.9b, CMP INR1128, TP INR1180, 5% Upside, Neutral)

Motilal Oswal

- We analyzed the biosimilar portfolio of Aurobindo Pharma (ARBP) to understand the progress as well as competitive dynamics for each product.

- ARBP has built a biosimilar pipeline, which is expected to provide commercial benefit from FY26/FY27 onwards. It remains among the leading companies to gain traction in certain biosimilar products. ARBP is further enhancing benefits through CDMO partnerships and improving return on investment.

- On the US generics front, ARBP not only has the largest portfolio in terms of the number of molecules and revenue size, but it also continues to further enhance its offerings through aggressive filings comprising complex generics as well.

- Overall, we expect a 17% earnings CAGR driven by: 1) better off-take of niche products such as g-Revlimid, 2) scale-up of Pen-G for internal consumption as well as external sales, and c) improved operating leverage. We value ARBP at 17x 12M forward earnings to arrive at our TP of INR1,180. While the outlook is promising over the next 2-3 years, we reiterate our Neutral rating due to limited upside from current levels.

(TCIEXP IN, Mkt Cap USD0.5b, CMP INR1105, TP INR1270, 15% Upside, Buy)

Motilal Oswal

- TCI Express (TCIE)’s 4QFY24 revenue decreased 3% YoY to ~INR3.2b (in line), while volumes declined 2% YoY in 4QFY24. The persistent challenges of subdued demand, especially in the lifestyle product segment, and elevated inventory levels at the customer-end led to slower dispatches for the quarter. 

- Volumes stood at 0.26m tonnes (-2% YoY), while realization stood at INR12,291 per ton (down 1% YoY/QoQ each). EBITDA came in at INR448m with a margin of 14.1% (vs. our estimate of 14.4%). Margin was hurt by the weakness in volumes handled. In line with weak operating performance, TCIE’s APAT dipped 18% YoY to INR316m (vs. our estimate of INR328m). 

- During FY24, TCIE reported a revenue of INR12.5b (+1% YoY), EBITDA margin of 14.9%, and APAT of INR1.3b (-5% YoY). It handled 1m tonnes of volume in FY24 (flat YoY). 

- In FY24, TCIE incurred a total capex of INR460m, primarily spent on the expansion of its branch network as well as automation and ramping up of the IT infrastructure. TCIE aims for a capex of ~INR3.3b in the next three years. 

- Weak consumer demand and high inventory levels led to a soft performance in 4Q. Though volume growth in FY24 was subdued, management remains optimistic of maintaining 2x GDP growth in the medium to long term. We largely retain our FY26 estimates and expect TCIE to clock a volume CAGR of 9% and revenue/EBITDA CAGR of 11%/15% over FY24-26. This growth will be driven by the expansion of the branch network and overall demand improvement. Reiterate BUY with a revised TP of INR1,270 (based on 28x FY26E EPS). 

(SAPPHIRE IN, Mkt Cap USD1.1b, CMP INR1417, TP INR1650, 16% Upside, Buy)

Motilal Oswal 

- Sapphire Foods (Sapphire) reported 13% YoY revenue growth, despite 18% YoY store growth. The store growth was offset by a decline in same-store sales for both KFC (-3%) and Pizza Hut (PH; -15%). KFC’s revenue rose 16% YoY despite 26% YoY store growth, while PH’s revenue declined 3% YoY in 4QFY24. However, there was no store addition for PH during the quarter as Sapphire undertook a cautious expansion strategy. It has planned to open PH stores in single digit during FY25. 

- GM trend was positive across brands due to a benign RM basket. However, unit economics were hit by weak growth metrics. KFC’s ROM declined 40bp/140bp YoY/QoQ to 18.7%, while PH’s ROM decreased sharply by 1,130bp/730bp YoY/QoQ and became negative (-2.7%) in 4QFY24. 

- Consolidated restaurant EBITDA declined 4% YoY to INR870m, with a margin dip of 240bp YoY to 13.8% (16.2% in 3QFY24). The Pre-Ind-AS EBITDA declined 2% YoY to INR544m, while margin contracted 140bp YoY to 8.6% (10.8% in 3QFY24). PBT declined 93% YoY to INR8m, with a PBT margin of 0.1% vs. 2.2% in 4QFY23 and 2.1% 3QFY24. 

- The QSR industry continues to experience weakness in unit economics; dine-in is seeing more pressure than delivery. KFC has shown resilience in managing the headwinds more effectively, while PH has been struggling due to weak unit economics and intense competition. The store expansion spree is expected to slow down in FY25 (mainly in PH) to fix the profitability metrics. 

- We maintain our cautious stance on QSR for the near term due to the ongoing demand challenges. The stock trades at 24x and 19x Pre-Ind-AS EV/EBITDA on FY25E and FY26E. We reiterate our BUY rating on the stock with a TP of INR1,650. 

(CAMS IN, Mkt Cap USD1.9b, CMP INR3207, TP INR3700, 15% Upside, Buy)

Motilal Oswal 

- CAMS reported a net profit of INR1.03b, a growth of 38.5% YoY. PAT for the quarter came in 11% above our estimates. The growth in profitability was well supported by a YoY increase in the share of non-MF business and the improving mix of equity AUM in the total MF AUM. 

- The share of non-MF business grew to 13.5% in 4QFY24 and is expected to continue increasing in the coming quarters. Operating revenue reached INR3.1b, up 25% YoY, 4% above our estimates. 

- The management is confident that CAMS WealthServ, CAMSPay, CAMSRep and Think360 would substantially boost revenues in the coming quarters. It expects 20%+ growth in revenues for the non-MF business. 

- Currently, we have a BUY rating on the stock with a target price of INR3,700 at a P/E multiple of 36x on FY26 earnings. 

(RLXF IN, Mkt Cap USD2.5b, CMP INR851, TP INR790, 7% Downside, Neutral)

Motilal OSwal

- Relaxo Footwears posted a decline in revenue/PAT by 2%/3% YoY (9%/21% miss) in 4QFY24 due to weak momentum in closed footwear and BIS implementation. However, 810bp improvement in GM translated into 70bp EBITDAM improvement. Price cuts in the last couple of quarters have improved its competitive edge, driving growth in open footwear.

- We believe that price reduction, softening RM prices and renewed focus on sports footwear will drive volume growth for Relaxo, which should bolster the growth outlook. We have cut our estimates, considering the current weak macro environment and slow recovery. We estimate a CAGR of 12%/28% in revenue/PAT over FY24-26. The stock is trading at 64x FY26E EPS and appears expensive in a soft earnings environment. We reiterate our Neutral rating 

(POLYCAB IN, Mkt Cap USD11.1b, CMP INR6156, TP INR7850, 28% Upside, Buy)

Motilal Oswal

Market share at ~25-26% of domestic organized cables & wires market

- Polycab India (Polycab)’s 4QFY24 performance was ahead of our estimates. It reported an EBITDA of INR7.6b (15% above our est.) led by higher revenue growth (12% above est.) and a better margin in the cables & wires segment (15.1% vs. estimated 14.3%). Profit stood at INR5.5b vs. est. of INR4.7b. 

- Management believes that the company’s market share stands at ~25-26% of the domestic organized cables & wires market (vs. 22-24% in FY23). Rural demand has improved, leading to higher sales for FMEG products, which, along with an increase in private sector capex, should boost growth. 

- We recently initiated coverage on Polycab with a BUY rating. We like the company due to its strong performance in the cables & wires segment, where it has a leadership position as well as strong margin delivery. We raise our EPS estimates by 5% each for FY25 and FY26, considering higher growth in FY24. Reiterate BUY with a TP of INR7,850 (premised on 50x FY26E EPS). 

(CIPLA IN, Mkt Cap USD13b, CMP INR1340, TP INR1600, 19% Upside, Buy)

Motilal Oswal 

Work in progress to build complex assets to sustain growth over 3-4 years 

- Cipla reported a slight miss on earnings for 4QFY24, largely due to higher opex. It ended FY24 on a strong note with 13%/23%/39% YoY growth in sales/EBITDA/PAT to INR257b/INR63b/INR42b. This was driven by strong traction in the US generics and superior execution in the branded generics segment within domestic formulations (DF) and South Africa. 

- We retain our earnings estimates for FY25/FY26. We value Cipla on an SOTP basis (25x 12M forward earnings for base business and NPV of NR30 for g-Revlimid) to arrive at our TP of INR1,600. 

- While g-Revlimid contributed meaningfully to overall earnings for FY24, we expect a 12% earnings CAGR over FY24-26. This would be largely driven by: commercialization of complex assets in the US and outperformance of chronic therapies in the DF segment, a transformed operating model in trade generics, and sustained growth in the consumer healthcare segment. Accordingly, we reiterate our BUY rating on the stock.

(BOB IN, Mkt Cap USD15.8b, CMP INR255, TP INR300, 18% Upside, Buy)

Motilal Oswal

Asset quality stable

- Bank of Baroda (BOB) reported in-line 4QFY24 PAT of INR48.9b, up 2% YoY, driven by higher other income. NIMs improved 17bp QoQ, partly supported by recoveries. 

- Provisioning expenses were high as the bank further provided for aviation exposure. Opex was also high due to pension provisions and a decline in the discount rate. 

- Business growth was healthy, with loans growing 13% YoY (4.1% QoQ) and deposits increasing 10% YoY (6.6% QoQ). The CD ratio, thus, moderated to 80.3%, while LCR too decreased to 121% (vs. 133% in 3Q), aiding margins. 

- Slippages increased to 1.2%. Healthy advances growth enabled a decline in GNPA/NNPA by 16bp/2bp QoQ to 2.9%/0.7%. PCR was stable at 77.3%. 

- We raise our FY25/FY26 EPS estimates by 1.9%/2.8% to account for stable margin and contained provisions. We estimate FY26 RoA/RoE of 1.22%/17.3%. We reiterate our BUY rating on the stock. 

In-line quarter; growth concerns remain

Auto & Auto Ancillaries Result Update May 12, 2024\u0009\u0009TARGET PRICE (Rs) : 3,400 

EIM’s results were in line with estimates; revenues/EBITDA/PAT were up 12%/21%/18% YoY with margins up 43bps QoQ to 26.5% on lower RM. For EIM’s Royal Enfield (RE) brand, we believe growth remains a challenge with: i) recent launches like Himalayan 450 yet to take off meaningfully, ii) concerns around incremental growth potential from upcoming 450cc launches, given the segment’s limited size, and iii) replacement/upgrade demand for RE remaining elusive. We raise FY26E EPS by ~5% on ongoing 2W recovery and consequent margin improvement (build-in 9% PAT CAGR over FY24-26E). We retain SELL with revised TP of Rs3,400 (Rs3,250 earlier) at an unchanged 20x FY26E PER + the stake in VECV. HMCL is our preferred pick in 2Ws given its stronger growth visibility (on new launch success of Xtreme 125R) and much better risk-reward 

Shares of Indegene will be listed at the bourses today. The company has fixed the issue price at ₹452, the upper cand of the price band of ₹430-452.

The initial public offering saw a robust response from all category investors, as the issue was subscribed 69.70 times, thanks mainly to qualified institutional buyers.

Motilal Oswal

- The India pharma market (IPM) grew 8.8% YoY in Apr’24 (vs. 1.4% in Mar’24 and 11% in Apr’23). Chronic category remains a key growth driver for IPM.

- Cardiac/Derma/Gastro-intestinal therapies registered healthy YoY growth of 15.0%/11.8%/10.6%, offset by a decline in respiratory (-1.2% YoY) in Apr’24.

- For the 12 months ending in Apr’24, IPM grew 7.4% YoY. This growth was led by volume/new launches, which contributed +4% YoY/2.9% YoY to the overall growth over the same period. 

- Out of top 10 brand, Electral/PAN/LIV-52 registered a high double-digit growth of 28%/19%/17% YoY to INR720m/INR590m/620m in Apr’24.

- Although Anti-infective/Anti-diabetic segments registered growth in Apr’24, key brands like Calpol (INR390m)/Azithral (INR350m) experienced a decline of 15%/10% YoY. Additionally, Mixtrad (INR750m)/Lantus (INR530m) declined 2%/4% YoY in Apr’24.

(AACL IN, Mkt Cap USD1.2b, CMP INR1977, TP INR2010, 2% Upside, Neutral)

Motilal Oswal

- AACL’s 4QFY24 revenue declined 14% YoY to INR3.6b, with agrochemicals seeing destocking and pharma witnessing demand stabilization. Sales volumes increased from the pharma sector. Gross margin expanded 270bp YoY to 49.2%, while EBITDAM expanded 50bp YoY to 19.3% in 4Q. PAT declined 21% YoY to INR385m (our est. INR314m)

- The management noted that 2HFY24 was weaker than 1HFY24, with average utilization of 55% across plants in 2H. Volumes were subdued mainly due to Acetonitrile (ACN) and Mono Isopropyl amine. However, product prices were stable in 4Q. Raw material prices also declined, with sequential margin gains.

- A new Ethylamines plant was commissioned in FY24, which saw utilization of 60% in 2H. AACL has a larger market share than competition, and with steady growth in demand (5-7% every year) and improved margin, the management is confident to maintain its market share despite capacity expansion by competition.

- AACL maintained its market share in ACN, with the plant running at 55-60% utilization in FY24. The company has applied for anti-dumping duty (ADD) and expects interim relief in FY25, which could boost its market share. Currently the impact due to imports stands at 15-20% of revenues from ACN.

- We have not materially changed our estimates as of now. We expect a CAGR of 22%/ 33%/ 40% in revenue/EBITDA/ EPS over FY24-26 (due to a lower base in FY24). The stock is trading at 34.5x FY26E EPS and 22.4x FY26E EV/EBITDA. We reiterate our Neutral rating on AACL with a TP of INR2,010, based on 35x FY26E EPS.

(MAHGL IN, Mkt Cap USD1.5b, CMP INR1300, TP INR1565, 20% Upside, Buy)

Motilal Oswal

- MAHGL’s EBITDA inched up 1% YoY to INR3.9b in 4QFY24, mainly driven by a 12% YoY rise in volumes, which offset an 11% decline EBITDA/scm to INR11.5. In 4Q, the company completed the acquisition of Unison Enviro (UEPL).

- Besides weaker EBITDA/scm margin, 4Q profitability was hit by a surge in marketing expenses and FY24 CSR expenses being booked in 4Q.

- I/C PNG growth was driven by high consumption among new customers. The company guarantees a 10% discount on gas prices compared to alternate fuels for the first three years to new customers in the GA3 region. In GA2, the discount is provided only to new customers with high gas offtake. This has helped catalyze volume growth, and the management remains confident of growing this segment in double digits.

- According to the management, CNG conversion momentum remained robust at ~20k in 4Q. MAHGL is seeing good initial response to its marketing scheme in the commercial goods vehicle segment, albeit at a low base.

- The management guides for volume growth of 6-7% and maintains its EBITDA/scm guidance at INR9-11/scm. Capex guidance for FY25-26 was raised to INR9b from INR7.8bn in FY24. We build in EBITDA/scm margin of INR11.2 for FY25/FY26 in our earnings estimates (previously INR12.5/scm).

- The stock trades at 12x FY26E EPS of INR110.6. We value it at 14x FY26E EPS to arrive at a TP of INR1,565 and maintain BUY rating on the stock. We continue to prefer MAHGL over IGL owing to it’s a significantly cheaper valuation with a largely similar growth profile in the medium term and relatively lower EV risk.

(HPCL IN, Mkt Cap USD8.5b, CMP INR502, TP INR600, 20% Upside, Buy)

Motilal Oswal

- HPCL beat our EBITDA estimate in 4QFY24, aided by higher-than-expected marketing margin of INR4.8/lit (est. INR4.1/lit). However, refining segment performance was below expectations, with GRM at USD6.9/bbl (our est. USD12.4/bbl).

- Refinery throughput was above our estimate at 5.8mmt (up 18% YoY) and should improve by another 1.3mmt annually once the bottom upgrade unit is commissioned. The lower-than-expected refining margin in 4QFY24 was attributable to 1) buildup of inter-mediate products (USD1.5/bbl), 2) lower-than-expected Russian crude discounts, and 3) INR6b inventory loss. 

- We have moderated our refining margin assumption to USD8/bbl (from USD9/bbl), given weak start to refining GRM, a decline in Russian crude discounts, and costs related to the commissioning of a bottom upgrade unit. Accordingly, we cut our FY25/FY26 EBITDA estimates by 8% each.

- Other notable updates during the quarter included: 1) Rajasthan refinery remaining on track for commissioning in 4QFY25, and 2) petchem unit at HMEL achieved 90%+ utilization in Jan’24. 

- In the marketing segment, sales volumes came in 8% above our est. at 12.3mmt (up 11% YoY). The company expects to clock marketing sales volume of 44mmtpa/45mmtpa in FY24/25. OMCs are again generating strong gross marketing margin of ~INR5 per liter on both petrol/diesel. Among OMCs, HPCL has the highest leverage in marketing and would benefit the most due to an uptick in marketing margins.

- The commissioning of a bottom upgradation unit at its Visakhapatnam refinery would result in distillate yield improving by 10% from FY25 onward. The company expects to maintain a GRM delta of ~USD3/bbl over SG GRM. The demerger of lubricant business also provides a value unlocking opportunity.

- Our marketing margin assumption of INR3.3/lit on petrol and diesel in FY25/FY26 is materially below current margins. We maintain a BUY rating on the stock, valuing it at 1.4x FY26E P/BV to arrive at our TP of INR600.

(UNBK IN, Mkt Cap USD13b, CMP INR142, TP INR165, 16% Upside, Buy)

Motilal Oswal

Asset quality ratio improves

- Union Bank of India (UNBK) reported 19% YoY growth in PAT at INR33b (14% miss) in 4QFY24 as opex increased 13.7% YoY to INR76b (24% higher than MOFSLe).

- NII grew 14.4% YoY to INR94.4b (in line). NIMs stood broadly stable, with a 1bp QoQ increase to 3.09%.

- Loan book grew 14% YoY/1% QoQ. Deposits grew 9.3% YoY/4.2% QoQ. The CD ratio, thus, moderated 224bp QoQ to 71.3%.

- Asset quality ratios improved slightly, with GNPA/NNPA ratios declining by 7bp/5bp YoY to 4.76% /1.03%. However, slippages increased during the quarter to INR33b from INR26.8b in 3QFY24.

- We cut our FY25/FY26 EPS estimates by 2.1-2.2% and estimate RoA/RoE of 1.1%/16.3% by FY26. Retain BUY with a revised TP of INR165.

(BPCL IN, Mkt Cap USD16.1b, CMP INR619, TP INR660, 7% Upside, Neutral)

Motilal Oswal

- BPCL’s reported GRM came in 27% below our est. at USD12.5/bbl in 4QFY24, while implied marketing margin came in 67% above our est. at INR5.7/lit. Overall EBITDA was below our estimate due to weaker-than-expected refining performance and impairment charge of INR18b in 4Q.

- Refining throughput stood at 10.4mmt vs. our estimate of 10mmt. Refining GRM was below our expectations but higher than HPCL (USD6.9/bbl) and IOC (USD8.4/bbl). In 4Q, Russian crude constituted ~40% of crude mix.

- Marketing sales volume (excluding exports) came in at 13.2mmt in 4Q (vs. 12.9mmt in 3Q). OMCs are currently earnings a gross marketing margin of INR5/lit vs. our assumption of INR3.3/lit for both petrol/diesel.

- Singapore GRM (SG GRM) has been weak so far in 1QFY25’td at USD3.6/bbl vs. USD7.3/bbl in 4QFY24, which may lead to muted refining performance in 1QFY25. Our earnings estimates remain unchanged after 4QFY24 results. However, we raise capex in FY25/FY26 to INR140b/INR150b, as per company guidance (previously: INR100b for both FY25/FY26).

- BPCL is currently trading at 1.4x FY26E P/B and we see limited upside from current levels (FY26 ROE: 17.6%). However, with minimal volume growth and a sharp rise in capex in coming years, we maintain our Neutral rating with a TP of INR660, valuing the stock at 1.5x FY26E BV.

(EIM IN, Mkt Cap USD15.3b, CMP INR4658, TP INR4020, 14% Downside, Downgrade to sell)

Motilal Oswal

Rising competitive intensity remains a key cause of concern

- EIM’s 4QFY24 operating performance was in line. Unexpectedly, VECV EBITDA margin remained stable QoQ despite a strong 24% volume growth. RE is likely to face rising competitive pressures in the coming years, both in domestic and export markets, potentially limiting its volume growth prospects. 

- We have cut our FY25E/FY26 EPS estimates by 4%/7% as we expect RE margins to be under pressure, led by rising competitive intensity. Given the recent stock run-up, we downgrade Eicher Motors to Sell from Neutral with a revised Mar’26E SoTP-based TP of INR4,020.

(ABB IN, Mkt Cap USD18.2b, CMP INR7178, TP INR8500, 18% Upside, Buy)

Motilal Oswal

ABB India’s 1QCY24 results were much ahead of our estimates, driven largely by strong improvement in margin. Our thesis, as highlighted in our latest AR2023 update (link), of margin improvement is playing out quite well and we expect the company to keep benefiting from its pricing advantage, operating leverage gain, improving product mix toward higher-margin segments, and a wide product portfolio. We expect a large part of these gains to sustain in the coming years amid a strong demand scenario. We increase our estimates for CY24/25/26 by 23%/24%/20% to bake in 1QCY24 performance and higher margins. We increase our TP to INR8,500 (from INR7,500), implying a P/E of 70x on Jun’26E EPS. We maintain BUY and ABB remains our top pick in the sector.

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Gopal Snacks : (replay)

Servotech Power : (replay)

Tata Motors : (replay)

Dilip Buildcon : (replay)

Kalyan Jewellers : (replay)

Bank of Baroda : (replay)

Polycab India : (replay)

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Results today …

Recent interviews …

The stock of Tata Power (₹414.85) is ruling at a crucial level. The immediate support is at ₹396. A conclusive close below this will change the outlook negative for Tata Power. In that event, the stock could reach ₹359. On the other hand, Tata Power finds immediate resistance at ₹436, a close above which will lift the stock to new high.

Precious metals appear to have resumed the uptrend as they appreciated last week. In terms of dollars, gold and silver rallied 2.5 per cent and 6.3 per cent as they closed at $2,360 and $28.2 per ounce respectively.

Similarly, on the Multi Commodity Exchange, gold futures gained 2.9 per cent to end at ₹72,727 (per 10 gram), whereas silver futures was up 4.8 per cent to close at ₹84,910 (per kg).

Here is what the charts say about the shares of Amrutanjan Health Care, JSW Energy and REC

Sensex, Nifty 50 and the Nifty Bank index fell last week in line with our expectation. Nifty and Sensex were down 1.87 per cent and 1.64 per cent respectively. The Nifty Bank index, on the other hand, was beaten down badly and was down 3 per cent last week. As expected, the Dow Jones Industrial Average outperformed the Indian markets. The index surged over 2 per cent last week.

PSU stocks were amongst the best performers of FY24, rallying 88 per cent (BSE PSU) compared to Nifty-50’s 20 per cent returns. The reasons ascribed for the rally range from the last bastions of value to structural changes, which have changed the earnings trajectory for the good. Though much of the structural changes were planned much before FY23-24, the perceptible change in earnings growth, return metrics and improved leverage ratios have powered the rally in the last year.

During a relaxed two-hour meeting over lunch in Chennai recently, Balaji Vaidyanath, CEO and CIO of NAFA Asset Managers explains his investment approach and philosophy. NAFA runs three PMS schemes currently. He manages assets in excess of ₹1,150 crore. Edited excerpts from the conversation:

At bl.portfolio, we had held a positive view on Bharti Airtel (Airtel) for the last three years, since our buy recommendation in our edition dated April 11, 2021, when the stock was trading at ₹533. In our follow-up updates too during this period, we had recommended that investors continue to accumulate/hold the shares, given favourable company-specific and industry factors at play.

However, we are now shifting to a cautious stance on the stock, purely on valuation. From a valuation perspective, the one-year forward EV/EBITDA for Bharti Airtel has expanded from 8 times in April 2021, to 10.6 times as against the five-year average valuation of around 8.9 times. Stretching beyond this multiple may be challenge for telecom stocks, except when in the midst of a turnaround.

Ex-Dividend 14 May 2024 (Tomorrow) 

Last date for Cum-Dividend Today 

Godrej Consumer Products Ltd. 

Dividend Per Share Rs.10 

Previous day Closing Price – Rs. 1320.95 

Gravita India Ltd. 

Dividend Per Share Rs.5.2 

Previous day Closing Price – Rs. 910 

Omax Autos Ltd. 

Dividend Per Share Rs.1 

Previous day Closing Price – Rs. 131.5

Domestic markets are poised to open cautiously on Monday, reflecting a weak global signal. Analysts anticipate a volatile market, particularly in the mid- and small-cap sectors. The unrelenting selling by foreign portfolio investors is expected to pose a challenge for the market. Of particular concern is the VIX, which has now surpassed 18, a significant threshold that signals market nervousness and should be carefully considered by investors.

Gift Nifty at 22,090 against Nifty May futures value of 22,140 indicates a downward bias. Equities across Asia-Pacific region are down in early deals on Monday due to weak China.

Buzzing Stocks: Zomato, HUDCO, ICICI Bank, Infosys, Wipro, RailTel, Aurobindo Pharma, Lancor Holdings, SAL Steel, Flair Writing, ATV Projects, Yatharth Hospitals 

Welspun Corp received new export order worth Rs 611 Crore for supply of LSAW Pipes, Coating and Bends in Latin America

Here’s an interesting stock idea: The stock that we have today is Union Bank of India. So far this month, it has lost nearly 8 per cent. But the scrip is now trading near the bottom of a range and could see a rebound in price. Check out the latest episode of Today’s Pick to learn more.

(Nirmal Bang Retail Research)

Result is declining

Revenue from Operations came at Rs. 1870.3 Cr (7.4% QoQ, -8.9% YoY) vs QoQ Rs. 1740.6 Cr, YoY Rs. 2053.9 Cr

EBIDTA came at Rs. 169.8 Cr (53.4% QoQ, -24.6% YoY) vs QoQ Rs. 110.7 Cr, YoY Rs. 225 Cr

EBITDA Margin came at 9.1% vs QoQ 6.4%, YoY 11%

Adj. PAT came at Rs. 90.8 Cr vs QoQ Rs. 20.3 Cr, YoY Rs. 130.9 Cr

Quarter EPS is Rs. 0.7

Stock is trading at P/E of -47.3x TTM EPS

(Nirmal Bang Retail Research)

Result has improved

Revenue from Operations came at Rs. 895.9 Cr (-6% QoQ, -14.1% YoY) vs QoQ Rs. 953.2 Cr, YoY Rs. 1042.5 Cr

EBIDTA came at Rs. 50 Cr (-793.9% QoQ, 47.1% YoY) vs QoQ Rs. -7.2 Cr, YoY Rs. 34 Cr

EBITDA Margin came at 5.6% vs QoQ -0.8%, YoY 3.3%

Adj. PAT came at Rs. 33.5 Cr vs QoQ Rs. -7.9 Cr, YoY Rs. 25.2 Cr

Quarter EPS is Rs. 23.8

Stock is trading at P/E of 33.2x TTM EPS

May 10, 2024

BSE:+260(72664)

NSE:+97(22055)

BNF:-66(47421)

MID:+331(41027)

SML:+359(45396)

FII|FPI:(-2117.50Cr)

DII:+2709.81Cr

B.Crude: 84

Gold$:2374=INR: 72784

Silver: 85461

$/Rs: 83.50

7.18 : 2033 G-Sec: 7.12 (7.13 prv)

NSE PE: 21.33

VIX: 18.47 +0.27 (1.50%)

FIIs - FY24-25

MTD: (-24975.50Cr)

YTD: (-60667.69Cr)

DIIs - FY24-25

MTD: +19410.00Cr

YTD: +63596.28Cr

The company reported revenue growth of 14.6% YoY (-5.5% QoQ) to Rs. 5,163mn

Gross margins for the quarter stood at 50.1% vis-à-vis 57.9% YoY (-580bps QoQ) (decline on account of reduced share of Bangladesh business), resulting in OPM of 1.5% as against 14.3% YoY (9.6% QoQ). Lower gross margins coupled with an increase in other expenses (32% YoY on account of increased ad spends and E-commerce expenses ) impacted overall margins. EBITDA for the quarter stood at Rs.78mn a decline of 88% YoY (-85% QoQ)

The company posted a net loss of Rs.239mn as against net loss of Rs.43mn (adjusted PAT of Rs.430mn YoY). 

We currently have a BUY rating stock with a Target price of Rs 630, and we will reassess our TP post company’s earnings call today at 5pm

--- Monarch Networth

Asian Paints: Amit Syngle, MD & CEO

Volume Growth For The Company Has Been Better Than The Industry: Asian Paints

Asian Paints: Amit Syngle, MD & CEO

Asian Paints: Price Cuts Impacted Q4 Numbers, What’s The Strategy To Double The Growth

Alembic Pharma: Pranav Amin, MD

Us Biz Grew 19% YoY In Last Quarter & Will Grow In Double-Digits Going Forward: Alembic Pharma

CAMS: Anuj Kumar, CEO

Mutual Fund Business To Grow At 15% And Non-Mutual Fund At 20% In FY25: CAMS

Escorts: Bharat Madan, CFO

Margin For Tractor Business Will Continue To Be In The 13-14% Range: Escorts Kubota

Gopal Snacks: Mukesh Kumar Shah, Chief Financial Officer

Weak Q4 For Gopal Snacks | What’s Driving Gopal Snacks’ Recovery And Growth?

IOB: Ajay Kumar Srivastava, MD & CEO

Loan Growth Will Be Maintained In The Range Of 13-14% For FY25: Indian Overseas Bank

Larsen: R Shankar Raman, CFO

International Is Now 40% Of Orderbook Vs 20% Earlier; There Are Opp In India, West Asia: L&T

Larsen: R Shankar Raman, CFO

L&T FY25: Expecting First Electrolyser Order In FY25, Company Planning To Grow Globally In Future

PNB: Atul Kumar Goel, MD & CEO

Board Has Approved Fund Raising Of ?17,500 Crore For The Current Fiscal: Punjab National Bank

Events today…

Results today…

Replays available at www.researchbytes.com

#niftyanalysis#Nifty and #NiftyBank index fell sharply last week as expected. Also, as expected, the #DowJones outperformed the Indian markets by surging over 2 per cent last week. The #DowJones continue to remain bullish and can rise more. But the #Nifty and #NiftyBank index are poised near a very crucial supports. They have to sustain above their supports and get a strong follow-through rise from here to avoid more fall. As such the price action this week is going to be very very important for the Indian benchmark indices.

17:30 India CPI Inflation y/y (Expected: 4.8% versus Previous: 4.85%) 

18:30 U.S. FOMC Members Jefferson and Mester Speaks

Tencent Music Entertainment Group (Pre market) (Sector- Media)

Legend Biotech Corporation (Pre market) (Sector- Healthcare)

Petroleo Brasileiro S.A.- Petrobras (Post market) (Sector- Energy)

* BALRAMCHIN

* CANBANK

* GMRINFRA

* HINDCOPPER

* PNB

* VODAFONE IDEA

* SAIL

* ZEEL

Hinduja Group’s IndusInd International Holdings (IIHL) on May 10 received the long-awaited Insurance Regulatory and Development Authority of India’s approval for the acquisition of Reliance Capital.

The acquisition will include the takeover of Reliance Capital’s insurance arms — wholly-owned subsidiary Reliance General Insurance and 51:49 JV with Nippon Life, Reliance Nippon Life Insurance.

State-owned fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd reported bumper profits totalling about ₹81,000 crore in FY24, which far exceeded their annual earning in pre-oil crisis years.

The combined standalone net profit of IOC, BPCL and HPCL in April, 2023 to March, 2024 (FY24) was better than their annual earning of ₹39,356 crore in pre-oil crisis years, regulatory filings by them showed.

All the three companies posted the highest ever standalone as well as consolidated net profit in FY24.

Foreign investors pulled out a massive ₹17,000 crore from Indian equities in the first 10 days of the month owing to the general election and the uncertainty surrounding its outcome coupled with expensive valuations and profit booking.

This was way higher than a net withdrawal of ₹8,700 crore, in the entire month of April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.