Share Market Highlights 18th June 2024: Sensex hits new closing peak, Nifty hits record closing high

Benchmark equity indices Sensex and Nifty ticked higher to hit lifetime high levels on Tuesday, helped by hectic buying in market heavyweights ICICI Bank, HDFC Bank and Infosys amid a firm trend in global equities

The rupee appreciated 13 paise to settle at 83.42 (provisional) against the US dollar on Tuesday, buoyed by fresh inflow of foreign capital, and a firm trend in domestic equity markets, wherein benchmark indices scaled new peaks

The NSE Nifty was up by 0.38 per cent, or 88.90 points, to 23,554.50, while the BSE Sensex was at 77,276 up by 0.37 per cent, or 298 points, at 3 pm

H.G. Infra Engineering Ltd gets South Central Railway contract for doubling of track between Karanjgaon station, a project worth ₹447.11 crore. 

H.G. Infra Engineering stock trades at ₹1,779 on the NSE, up by 2.37%.

Top gainers: Shriram Finance (3.30%), Power Grid (3.22%), Wipro (3.05%), Titan (1.72%), Adani Enterprises (1.56%)

Top losers: Maruti (-2.12%), Dr Reddy’s Lab (-1.61%), Tata Steel (-1.14%), Ultratech Cement (-1.09%), Hero Motocorp (-0.82%)

Of a total of 4,130 stocks that were traded on the BSE at 3 pm on June 18, 2024, 2,171 advanced against 1,807 stocks that declined; 152 stocks remained unchanged. While 371 stocks hit a 52-week high, 23 hit a 52-week low. 

In addition, 398 stocks traded in the upper circuit, while 224 hit the lower circuit.

Jubilant Pharmova announced that the USFDA has concluded the audit of the Jubilant HollisterStier General Partnership (JHSGP)’s contract manufacturing facility located in Montreal, Canada. The USFDA has issued 15 observations pursuant to the completion of audit. 

JHSGP will submit an action plan on the observations. 

JHSGP is a subsidiary of Jubilant HollisterStier Inc., USA, a step down subsidiary of Jubilant Pharma Ltd, Singapore, and a wholly owned subsidiary of the Company.

Jubilant Pharmova stock declines 4.56% on the NSE, trading at ₹721.80.

Asian Energy Services Ltd with its joint venture partner Indwell has been awarded an order for design, supply, erection & commissioning, and a trial run for a coal evacuation system by belt conveyors at PKOCP, in the Manuguru area of The Singareni Collieries Company Ltd (SCCL). 

The total contract value is ₹148.50 crore plus 18% IGST and the order will be executed over a span of 18 months. 

Stock trades at ₹285.80 on the NSE, up by 2.20 per cent.

Cipla’s wholly-owned UK subsidiary, Cipla (EU) Ltd, to invest additional EUR 3 million in Ethris GmbH (Ethris), a global leader in delivering mRNAs directly to the respiratory system. 

Stock trades at ₹1,575 on the NSE, up 0.66%.

Radico Khaitan is set to launch Rampur Asava Indian Single Malt Whisky, priced at ₹10,000, in Uttar Pradesh in June this year. The company will expand the launch in Delhi, Chandigarh, Punjab, Uttarakhand, Haryana, Telangana, and Goa throughout the fiscal year, including introduction in the CSD (Canteen Stores Department).

The Radico Khaitan stock rose 1.56% on the NSE, trading at ₹1,749.35.

DroneAcharya Aerial Innovations Ltd has received a service order from Maani Care System (India) Pvt. Ltd., an entity associated with Reliance Industries Ltd (RIL) valued at ₹2,59,600, reflecting the growing adoption of drones in large enterprises.

Nifty realty rises 1.01% to 1,140.55. Top gainers among realty stocks on NSE include Godrej Properties (2.57%), Lodha (1.84%), Mahindra Lifespace (1.65%), Phoenix Mills (1.63%), Prestige Estate Projects (1.15%)

Alembic Pharmaceuticals receives USFDA Final Approval for Dabigatran Etexilate Capsules, 75 mg and 150 mg and Tentative approval for Dabigatran Etexilate Capsules, 110 mg

Stock trades at ₹867 on the NSE, lower by 2.39%.

Apeejay Surrendra Park Hotels Ltd (ASPHL) has announced the signing of a new hotel under the brand name THE Park in the foothills of Nainital, Uttarakhand. THE Park Hotels is the pioneer of luxury boutique hotels in India, which houses some of India’s most inventive restaurants, liveliest bars and happening nightclubs.

The 65-room hotel will be located in the periphery of the picturesque Jim Corbett National Park. It will offer a mix of rooms and tree houses designed to offer comfort while basking in the natural beauty. To open in Amgarhi in Nainital, the hotel will include a multi-cuisine restaurant, bar, swimming pool, spa, conference room, and open-air banquets for social and business gatherings.

UGRO Capital completes equity capital raise and allotment of Compulsory Convertible Debentures (CCD) and warrants worth Rs 1,265 crore. The board of directors had approved an equity capital raise of Rs 1,332.66 crore at a board meeting on May 2, 2024. 

“All investors, except the ones who became ineligible for regulatory reasons, invested full money in UGRO,” per a company statement. 

The company allotted CCDs worth Rs 258 crore and warrants worth Rs 1,007 crore, with backing from existing private equity investor Samena Capital, which committed Rs 500 crore through warrants, it added. 

Other significant commitments came from institutional investors such as Aregence and several Indian family offices. UGRO’s founder, board members, and management team also subscribed to the warrants issue.

Fitch Ratings has upped India’s growth forecast, measured in terms of GDP (Gross Domestic Products) to 7.2 per cent during fiscal year 2024-25 (FY25), from the earlier print of 7 per cent. The economy grew by 8.2 per cent during FY24. Read more

Alembic Pharmaceuticals has received final approval from the USFDA for its Abbreviated New Drug Application (ANDA) for Icatibant injection used for the treatment of acute attacks of hereditary angioedema (HAE) in adults 18 years of age and older.

Stock trades at ₹871.20 on the NSE, lower by 1.91%.

Kamdhenu has invested a sum of ₹4.85 crore towards subscription of 2,11,000 equity shares of face value of ₹10 each of VMS TMT Limited (a franchisee unit of the Company) at an issue price of ₹230 per share, on preferential basis. 

IIFL Finance stock surges 5.38% on the NSE, trading at ₹495.95. Company received approval from NSE to divest equity shares aggregating up to ₹84.70 crore of NSE through secondary market. In a separate disclosure, the company said the Reserve Bank of India (RBI) has concluded its special audit of the company, initiated in response to significant concerns identified in its gold loan portfolio.

Bondada Engineering stock locked in upper circuit at ₹2,558.60, higher by 5% on the BSE on receipt of work orders from Bharti Airtel for supply of 6 metre height GI pole wt 60 kg (hot dipped galvanised) without base, amounting to ₹2.05 crore (including GST) to Tamil Nadu.

Mangalam Global Enterprise Ltd has entered into an agreement to purchase plant & machinery and buildings from Shree Gurukrupa Oil and Foods and land measuring 19833 square yards from the individual land owners at Taluka Jotana, Mehasana, Gujarat. 

Purchase of assets viz. land, plant & machinery and building with following installed capacity at cost of ₹10.87 crore 

1) Edible Oil Refinery & Packing Unit with capacity of approx. 200 metric tonne per day. 

2) Oil Seed crushing plant with a capacity of 20 metric tonne per day. 

MGEL stock trades at ₹21.95 on the NSE, higher by 3.68%.

UGRO Capital Ltd completes equity capital raise and allotment of Compulsory Convertible Debentures and warrants worth ₹1,265 crore. 

Stock trades at ₹274.50 on the NSE, lower by 1.40%.

Veefin Solutions Ltd has acquired a stake in Mumbai-based Regime Tax Solutions. The move integrates Regime’s GST compliance and accounts automation solutions, TaxGenie and PayInvoice, with Veefin’s platform. Read more

Surana Solar’s stock trades at ₹38.50 on the NSE, down by 0.47%.

Lead futures on the Multi Commodity Exchange (MCX) has been on a downtrend over the last three weeks. A couple of weeks back, the contract slipped below support at ₹190; the price also fell below the 50-day moving average.

As the contract has sustained below ₹190, the probability for a decline from the current level is high. The nearest support is at ₹184, with the subsequent one at ₹180. Only a clear breakout of ₹190 can turn the bias bullish.

Top gainers on the NSE as of 12.01 pm:

Wipro (2.60%), Power Grid (2.10%), Titan (2.02%), Shriram Finance (1.59%), LTIMindtree (1.52%)

Top losers:

Maruti (-1.75%), Ultratech Cement (-1.22%), Dr Reddy’s Lab (-1.13%), Divi’s Lab (-1.12%), SBI Life (-0.66%)

Total stocks traded were 4,035. The number of stocks that recorded a 52-week high was 338, and those that hit a 52-week low was 21.

In addition, 334 stocks traded in upper circuit, while 203 hit the lower circuit.

Piramal Capital & Housing Finance Ltd, wholly owned subsidiary of Piramal Enterprises Limited (PEL), had surpassed ₹50,000 Crore in AUM of Retail Loans.

Piramal Enterprises stock rises 3.01% on the NSE, trading at ₹909.10.

Paras (18.25%)

GRSE (10.2518.25%)

Cochin Shipyard (7.71%)

HAL (5.18%)

Britannia Industries has received an order from District Consumer Disputes Redressal Commission, Thiruvallur, pursuant to a complaint under the Consumer Protection Act, 2019 regarding deficiency in service. Company has been directed to pay ₹1 lakh, as compensation and litigation cost.

Stock trades at ₹5,389.65 on the NSE, down by 0.07%.

Uravi T and Wedge Lamps Limited may acquire up to 55% shares of SKL (India) Private Limited by way of secondary acquisition, in one or more tranches, for a total consideration upto ₹20.1 crore from the existing promoters of SKL India.

Stock trades at ₹585 on the NSE, up 0.76%.

Bank Nifty opened today’s session higher at 50,194 versus last week’s close of 50,002. It further appreciated in early trade and is now hovering around 50,170, up 0.3 per cent.

The index is currently testing a resistance. A break-out of this can lead to a sharp rally. On the other hand, a decline can keep the index in a sideways range, which has been in place since early last week.

Ajooni stock trades at ₹5.48 on the NSE, down by 1.62%.

Wipro Ltd and GBST have tied up to enhance administration services for superannuation, wealth, and pensions companies. The collaboration integrates GBST’s Composer wealth management SaaS platform with Wipro’s administration and contact centre services, aiming to streamline operations and reduce IT complexity for financial services firms.

The shares were up by 2.57 per cent at ₹489.60 at 10.40 am on the BSE.

Top gainers on the BSE at 11 am:

Paras Defence (17.58%), GRSE (8.98%), TD Power (7.88%), JKIL (7.86%), Can Fin Homes (7.55%)

Top losers:

SDB (-7.90%), VST Industries (-3.35%), Aurobindo Pharma (-3.34%), Kirloskar Pneumatic (-3.28%), Datamatics (-3.27%)

Le Travenues Technology Ltd., the company behind popular travel platforms Ixigo and AbhiBus, defied even pre-listing expectations with a stellar debut on the stock market. The company is listed at Rs. 123.5 per share, a remarkable 48.49% gain over its issue price of Rs. 93. This impressive performance aligns with the overwhelming investor response during the IPO, which saw a subscription rate of a staggering 98 times.

Le Travenues’ AI-powered operations provide a competitive advantage. The company caters to various travel needs, offering a strong foundation, and its impressive revenue and profit growth demonstrate a promising future.

Le Travenues’ strong listing is a positive sign, showcasing investor belief in its long-term growth prospects within the online travel sector. The investors are advised to hold their position with a stop loss of Rs 111.

IPO Closes on June 21, 2024 

Issue Price Rs. 92 Per Share 

Issue Size 14.88 lakh shares – up to Rs. 13.69 crore Lot Size 1200 Shares Listing on NSE Emerge Platform of National Stock Exchange (PTI)

Nifty 50, the domestic benchmark index, began today’s session with a gap-up at 23,571 versus last week’s close of 23,466. It is now hovering around 23,550, up about 0.3 per cent at the end of the first hour of today’s session.

Substantiating the bullish bias, the advances/ declines ratio of the Nifty 50 stands at 36/14. Also, all mid- and small-cap indices are in the green. Among the sectors, Nifty Consumer Durables, up 1.3 per cent, is the top gainer, whereas Nifty Healthcare, down 0.7 per cent, is the top loser.

Gallantt Ispat’s stock rises 2.23% on the NSE, trading at ₹323.05.

Wanbury’s stock surges 3.60% on the NSE, trading at ₹163.45

L&T’s buildings & factories (B&F) vertical has won multiple orders worth ₹1,000-2,000 crore from Asian Institute of Gastroenterology, Hyderabad for constructing a super-speciality hospital at Gachibowli. 

It won an order for the construction of office space in Mumbai with an approximate built-up area of 13 lakh sq ft. 

Shares trade at ₹3,685.50 on the NSE, down by 0.06%.

Shares of HAL surged over 4 per cent in early trade. HAL has received a Request for Proposal (RFP) from Defence Ministry for the procurement of 156 Light Combat Helicopters. Of these, 90 are for the Indian Army and 66 for the Indian Air Force.

Veranda Learning Solutions, through its subsidiary Veranda XL Learning Solutions, has signed a MoU with Sri Krishna Arts and Science College in Coimbatore to offer a B.Com course with value-added ACCA (Association of Chartered Certified Accountants) accreditation.

18th June: FUTSOL to consider Dividend; DJ Mediaprint & Logistics to consider Dividend & Bonus issue; Kriti Industries, Zota Health Care, PNB Housing Finance, Shashank Traders, Srestha Finvest to consider Fund Raising

19th June: Sapphire Foods India to consider Stock Split; Cistro Telelink to consider Reduction of Capital; State Bank of India, SEPC to consider Fund Raising

20th June: KSOLVES, PARSVNATH to consider Dividend; Aartech Solonics to consider Bonus issue & Stock Split; Blue Cloud Softech Solutions, ITCONS E-Solutions, Kiduja India, Sky Gold, Spandana Sphoorty Financial, Vedanta to consider Fund Raising

21st June: Rajath Finance to consider Fund Raising; Steelco Gujarat to consider Reduction of Capital

22nd June: Bio Green Papers to consider Fund Raising & Reduction of Capital; Maruti Infrastructure to consider Bonus issue & Stock Split

24th June: Satin Creditcare Network to consider Fund Raising

25th June: Money Masters Leasing & Finance to consider Stock Split; Inventure Growth & Securities to consider Fund Raising

Nifty Highest OI

(20th June expiry)

Call: 24000 / Put: 23400 

PCR OI for Nifty increased to 1.30 from 1.20 from 

Nifty 50 EMA - 22621

FII Long index increased to 47% from 46% 

Dow Jones : +0.49%

Brent futures : $84.14 

Dollar Index : 105.40

USD INR. : 83.48

The NSE Nifty was up by 0.24 per cent or 56 points at 23,521, while the BSE Sensex was at 77,172, up by 0.23 per cent or 179 points.

A total of 3,171 stocks were actively traded, 2,263 advanced, while 748 declined and 160 stocks remained unchanged, where 224 stocks hit a 52-week high, and 13 stocks hit a 52-week low at 9.30 am on Tuesday.

The rupee appreciated 7 paise to 83.48 against the US dollar in early trade on Tuesday amid a fresh inflow of foreign capital and positive sentiment in the domestic equity markets.

Forex traders said the strengthening American currency weighed on the local unit though it found support due to downward movement in crude oil prices overseas.

Wipro and GBST, a global provider of wealth management and advice solutions technology for the financial services industry, have entered into a partnership aimed at delivering end-to-end administration services for superannuation, wealth, and pensions companies transitioning from legacy IT environments.

Wipro and GBST, a global provider of wealth management and advice solutions technology for the financial services industry, have entered into a partnership aimed at delivering end-to-end administration services for superannuation, wealth, and pensions companies transitioning from legacy IT environments.

Wipro stock traded at ₹489.80 on the NSE, higher by 2.58%.

BLS International’s subsidiary BLS E-Services Ltd (BLSE) has agreed to acquire 55% controlling interest in Aadifidelis Solutions Pvt. Ltd. (“ASPL”) and its affiliates.

BLS International stock rose 1.06% on the NSE, trading at ₹352.60.

Top gainers: Wipro (3.02%), Titan (2.55%), Adani Enterprises (1.70%), M&M (1.55%), LTIMindtree (1.44%)

Top losers: Maruti (-1.89%), Dr Reddy’s Lab (-1.07%), Kotak Bank(-0.52%), Divi’s Lab (-0.47%), Apollo Hospitals (-0.36%)

Route – Tender 

Buyback Price: 1,400 

Current Market Price: 1078.20/-

Market Cap: Rs 14,658 crores 

Buyback Size: Rs 301 Crs (Representing 7.00% and 6.66% of the aggregate of the Company’s fully paid-up equity capital and free reserves) 

Buyback Size: 21,50,000 shares (Representing 1.64% of O/s. shares) 

Retail Quota: 3,22,500 Shares

Last Cum Trading Date – 27 Jun 2024

Ex-Date – 28 Jun 2024

Buyback Record Date: 28 Jun 2024

Buyback Schedule: Not Yet Announced

First Call on Partly Paid-Up Equity Shares

Issue Price: Rs 1,812/-

Application Money: Rs 453/-

First Call: Rs 453/-

Money Yet to be Called: Rs 906/-

GRASIM Price: Rs 2470.00/- 

GRASIMPP Price: Rs 1125.65/- 

Symbol: GRASIMPP

BSE Code: 890190

Call Record Date: 14 June 2024

Call payment period: 03 Jul 2024 to 18 Jul 2024

Payment through R-WAP

https://rights.kfintech.com/callmoney

Silver prices remain near $29 per ounce, near the one-month low of $28.9 on June 13th.

Chinese government support for solar panels led to industry groups calling for investment curbs to prevent a sharp price drop.

Lower solar panel supply limited silver input buying by manufacturers, despite surge in silver demand.

Dovish developments by key central banks, including the ECB and BoC, limited the drop.

Softer CPI reading in the US supports bets of a Fed cut in September, limiting the opportunity cost of holding non-yielding bullion assets.

Gold fell to $2,320 per ounce on Monday, following a 1% rise last week.

Investors await further cues to gauge Federal Reserve’s monetary policy outlook.

Traders will monitor Fed officials’ statements and key economic releases to assess Fed timing and potential rate cuts.

Recent cooling US inflation data reflects this.

Gold demand in India was tepid, while premiums in top consumer China slid due to weak sentiment and high spot prices.

Route – Tender 

Buyback Price: 1,800 

Current Market Price: 1786.20 

Market Cap: Rs 5,310 crores 

Buyback Size: Rs 185 Crs (Representing 23.66% and 24.41% of the aggregate of the company’s fully paid-up equity capital and free reserves) 

Buyback Size: 10,27,777 shares (Representing 3.46% of O/s. shares) 

Retail Quota: 1,54,167 Shares

Entitlement:

General Category - 1 Equity Share for every 33 Equity Shares held on the Record Date

Retail Category - 5 Equity Shares for every 24 Equity Shares held on the Record Date

Buyback Record Date: 05 June 2024

Tender Period:

Start Date - 11 June 2024

Close Date - 18 June 2024 (Today)

Obligation Date - 24 June 2024 

Settlement Date - 25 June 2024

Issue Opens - 28-Jun-24

Issue Closes - 04-Jul-24 

Rights issue size: Rs 2,000 crore(1.21 crore shares)

Stock Price – 2180.45

Right issue Price: Rs 1,651

Payment Terms: Rs. 1,651/- (Rs 825.50 has to be paid on application and remaining amount will be called in two subsequent calls on or before December 31, 2025)

Rights Entitlement Ratio: 6 Rights Equity Share for every 47 shares held (Effectively 0.13 for every 1 share held).

Last Trade date (Cum Right): 18 Jun 2024 (Today)

Ex-Right Trading date: 19 Jun 2024

Record Date: 19 Jun 2024

Right Entitlement (RE) Trading Period:- 28 Jun 2024 to 01 Jul 2024

Last day of Renunciation of Rights Entitlements: 01 Jul 2024

Date of Allotment (on or about): 12 Jul 2024

Date of listing (on or about): 16 Jul 2024

Effective Discount Per share – Rs. 59.94

{CMP-[(no. of Shares * CMP) + (No. of RE * Right issue Price) ]/ No. of Shares incl. RE}

Crude oil futures traded lower on Tuesday morning despite major international agencies forecasting an improvement in demand for the commodity. At 9.08 am on Tuesday, August Brent oil futures were at $84.12, down by 0.15 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $79.58, down by 0.18 per cent. June crude oil futures were trading at ₹6691 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday morning against the previous close of ₹6670, up by 0.31 per cent, and July futures were trading at ₹6650 against the previous close of ₹6630, up by 0.30 per cent.

UBS on Apollo Hospitals

Buy, TP Raised to Rs 7500

In 3 yrs, expect to have30-40% more beds with higher ARPOB (5-6% CAGR) & occupancy, leading to a FY24-28E EBITDA CAGR of 16% for its hospital segment

Integrated HealthCo offers meaningful value

Apollo 24|7 sustaining leadership

UBS on Voda Idea

Buy, TP Rs 18

Reports suggest Vodafone Group to sell entire stake in Indus Towers

Currently owns c21.5% of Indus

Could proceeds be infused into VI? Highly likely but amount will likely not be as big as anticipated

Jefferies on DR Reddys

U-P, TP Rs 5010

Key risk to our call - a strategic acquisition which may fill the decline in FY27 earnings due to lower contribution from gRevlimid.

Jefferies on M&M Investor Day

BUY, TP Rs3510 from Rs2910

MM, at its group investor day, emphasized three strategic priorities:

1) capitalize on market leadership in farm and auto,

2) unlock full potential in IT and financial services, and

3) deliver high growth in new ventures

MM showcased three new electric SUVs, which we found well-designed and believe can provide compelling proposition for customers

In farm, MM believes India’s tractor population has potential to double too.

MM’s SUV market share has risen from 15% in FY21 to 18% in FY24

It plans to launch 13 new SUVs and 3 facelifts over 2024-30 (6 new ICEs, 7 new BEVs and 3 facelifts including the recently-launched 3XO), which should further strengthen its franchise

We see MM’s auto volumes rising at 14% CAGR over FY24-27E, led by 18% CAGR for SUVs

In the last 20 years, tractor industry witnessed three downturns with average length of 6 quarters (range 5-8 quarters) and average peak-to-trough annualized fall of 10%

We assume MM’s tractor volumes remain flat YoY in FY25E (earlier: -5%), followed by 12% CAGR in FY26-27E

We upgrade FY25-27E EPS by 2% factoring in slightly higher tractor volumes, and expect 12% volume and 18% EPS CAGR over FY24-27E

MM’s core FY25E PE at 29x is higher than its historical average of 14x, but still 8% below blended peer average

Nomura on M&M Investor Day

Buy, TP Rs 3374

Scale-up to be electrifying – maintain as top pick

BEVs to drive into premium lane; farm mech has high potential

Exports and ‘growth gems’ have further upside

Val at 13.3x FY26F EV/EBITDA attractive

MS on M&M Investor Day

OW, TP raised to Rs 3049

M&M offers high growth visibility that comes from its ICE orderbook, an impressive EV lineup, its Oja tractor lineup, & turnaround in non-auto businesses.

2025 will see a slew of EV launches across OEMs; capital discipline key to monitor

GS on M&M Investor Day

Maintain Buy; Hike TP to Rs 3090 from Rs 2700

Like growth visibility & upside optionality from SUV exposure+Tractor pickup+upcoming BEV launches

Looking forward to an upward reset in its Lifespaces and Services business

CLSA on Infosys

O-P, TP Rs 1553

Management meet takeaways

Undergoing rough cyclical currents; long-term industry positioning intact

Sales growth revival to be led by cloud, discretionary spend revival & Gen AI

Multiple margin levers at hand

Jefferies on Infosys

BUY, TP Rs1630

Management highlighted that discretionary IT spends are likely to remain under pressure given macro/tech uncertainties

Even though enterprises have IT budgets, uncertainty around macro as well as technology is driving caution

While deal pipeline continues to be healthy, this is being led mostly by cost-takeout deals

While management reiterated its growth guidance of 1-3% for FY25, they think that the disconnect between large deal wins and revenue growth should start reducing with FY25 witnessing a more front-ended growth.

Infosys sees multiple opportunities in Gen-AI and is investing heavily to augment its capabilities

Management reiterated its margin guidance of 20-22% for FY25 and aims to improve margins further via initiatives under Project Maximus.

Management indicated that under its revised capital allocation policy, while Infosys will continue to pay out 85% of its FCF to shareholders over a five-year period

The nature of payouts will progressively increase towards dividends as India is phasing out market based share buyback from 2025.

Jefferies on M&M Financial

HOLD, TP Rs294

At its group investor day, MMFS highlighted its thrust to unlock full potential by:

a) maintaining strong positioning in wheels business;

b) target middle-income segment by right offerings;

c) reduce asset quality volatility across cycles.

Its goal is to deliver 15-20% AUM growth, GNPA < 4.5% and 18% ROE over medium/ long term

It expects to lift fee income to c.40bps of assets (20bps FY24)

In FY25, MMFS expects disbursement to grow 10-12% YoY

Unlocking full potential in financial services: Its aims to target opportunity in the middle-income segment by offering the right products smoothly

MMFS has already built an SME portfolio of Rs5100cr and plans to expand mortgage portfolio

Mgmt indicated that to provide better accessibility and service, branches are now mostly on the ground floor (vs. higher floor before)

It aims to reduce asset quality volatility across cycles

MMFS has tightened filters for onboarding new customers and has stepped up controls

FY26 RoA target stays unchanged at 2.2%, MMFS aspires to deliver 2.5% ROA/18% ROE medium term

Its goal is to a) maintain 12% market share in wheels business; b) diversify its portfolio, with 25-30% of revenue coming from non-wheels; c) loan growth of 15-20%; d) higher fee income at 40bps of avg total assets; d) maintain GNPA below 4.5% across cycles.

Mgmt indicated that while growth in PV, tractor has been soft, traction in used / CV segment has been good

MMFS plans to boost fee income to c.40bps (FY24 c.20bps)

Mgmt expects opex to AUM to be stable at c.2.5% despite branch expansion as a) new branches are smaller; b) it expects lower collection costs—need for door-to-door collection should be lower at 30% vs. 50% earlier

MMFS is targeting to lower credit cost to 1.2-1.5% of assets (FY24 1.7%, 1.6% ex fraud provn) in the medium term.

We expect loan growth to moderate to 18%YoY (FY24 24%) and expect NIM to be range-bound in FY25

With opex likely to stay range-bound, higher fee income & lower credit cost are the main levers to boost RoA

However, write-offs have stayed elevated, and it continues to underpin credit cost

Fall in write-off runrate is the key, in our view. We see RoA expanding to 1.9% by FY26e vs. mgmt target of 2.2%.

Jefferies on banks

Takeaways from US Access Day & R/S

Banks are focused on deposit growth & opex may drag near term profit

Max Life see’s steady growth & ltd impact of new norms

ICICI Lombard is confident on growth & better margins

Paytm targets EBITDA break-even by Q4FY25

CMS Info sees healthy growth & diversification

Investors see elections results favourable & are looking for new uideas

But lower EM flows are a risk

IndusInd Bank

Aims to improve deposit growth to 18%-22% (14% now)

Similar growth in credit expected & LDR near 88%-90%

RBI’s insistence to keep credit & deposit growth in line & taper unsecured loans will pull down sector credit growth to 13%-14%

IDFC FIRST Bank

Mgt expects deposit growth to stay strong at +30% that aids +20% growth in loans & a fall in credit-deposit ratio

May see higher opex & credit costs in H1; should normalize from Q3

Mgt reiterated ROA target of 1.4% by FY27 aided by operating efficiency & better NIMS

ICICI Lombard

Mgt see’s scope for combined ratio moving to 101.5% by Q4FY25 vs earlier expectations of 102%

Motor segment has improved with healthy demand, lower competitive intensity

Growth in retail healthy insurance can improve with addition to agency network & new product launches

Delay in switch to IFRS accounting can be an overhang, as it can lift reported profits by 20%-25%

Max Life Insurance

VNB margins will be near 25%-27%, but new surrender norms can impact margins by 100-200bps

Mgt will initiate process to collapse holdoc structure in coming months

CMS Info Systems: Mgt stays focused on diversifying revenue poll with ramp-up of remote monitoring system (RMS)

Retail cash mgt (RCM) can see better growth, whereas growth in ATM business may stay moderate

Mgt will also invest in debt-collection & bullion logistics

Open to inorganic opportunities given good cash balance of Rs800cr & FY24 cash profit of Rs400cr+

Paytm

GMV has stabilized. Highlighted mgt, active merchant base is growing & had less churn. Paytm isn’t adding new customers right now. Merchant device deployment has resumed & ramping it up quickly

Investor feedback: a. Flows into EM face risk from rates in US staying higher & wealer outlook for LarAm markets

b. For India, investors see election outcome as positive & will watch for continuity of policies

c. Investors are looking for newer investment ideas in financials including mid-caps & capital mkt plays

Investec on Wipro

Upgrade to Hold from Sell; Hike TP to Rs 505 from Rs 460

Every CEO change has raised optimism of potential change. Is this time different?

It’s a little too early to tell but there are a few highlights to aid optimism

Large deal wins beginning to accrue

Continued improvement in CAPCO and BFSI in the US

Potential to beat ests with good execution

With Nifty hitting a new record high of 23490.40 and Sensex peaking at 77145.45, the bull market appears unstoppable. Key catalysts include lower inflation at 4.75%, a robust growth outlook with a 6.7% GDP growth forecast by the World Bank, and net FII buying of Rs 2031 crores. As Finance Minister Nirmala Sitharaman prepares for her 7th Union Budget, investors are hopeful for reforms to push India towards a $5 trillion economy by 2047. Preferred trades: Buy Nifty at 23465 with targets at 24000-24250 and Bank Nifty at 50002 with targets at 51500-52500. Stock pick: Buy HDFC AMC at CMP 4014 with targets at 4140/4203, aggressive target at 4351

Mahindra & Mahindra: Multiple growth levers in key business segments

- We participated in Mahindra & Mahindra (MM)‘s Group Investor Meet, where the management underscored its strategic focus of: i) capitalizing on market leadership in its core automotive and farm businesses, ii) unlocking the full potential of MM Finance and TechM, and iii) challenging itself to achieve approximately five-fold growth in its growth gems. In the automotive segment, management has set target to launch nine models in ICE and seven in EVs by 2030. In the FES segment, while it would continue to sustain its strong position in domestic market, it would also focus on ramping up presence in some of its key export markets post the launch of the new Oja range of tractors.

- Further, we expect M&M to continue to focus on prudent capital allocation going forward as well. Also, we raise our FY25E/26E earnings by 7% each to factor in the healthy response to its new model launches in automotive segment and initial signs of tractor demand revival for FY25. We estimate MM to clock a revenue / EBITDA / PAT CAGR of ~18%/20%/20% over FY24-26. We now value the tractor/auto businesses at 22x/20x Jun’26E EPS (from 20x/18x earlier).

- Its re-rating drivers include: 1) strong demand momentum in UVs 2) healthy long term growth opportunity in tractors 3) solid progress within growth gems which would emerge as future value unlocking drivers 4) continued prudent capital allocation with a clear focus on returns. Reiterate BUY with a revised TP of INR3,310 (based on June-26E SOTP).

The US market indices, S&P 500 and Nasdaq scored record closing highs on Monday as technology shares rallied on eagerness over artificial intelligence ahead of this week’s economic data and Federal Reserve officials’ speeches that could shed light on monetary policy. Asian markets followed Wall Street higher this morning, while Treasuries held steady after falling Monday. The dollar traded weak, helping gold push higher. Indian market looks set to open higher on Tuesday, tracking largely positive global cues and reports suggesting that the government is considering income tax rate cuts in the upcoming Budget to boost consumption in the economy and increase savings for the middle class. As we advance, the absence of any significant domestic triggers, global cues, investing activity of foreign investors, oil price movements, and monsoon updates from the IMD may sway sentiment in the truncated week.

The week that went by was in stark contrast to its penultimate week as the 50-index remained in an extremely narrow range. On four out of the five trading sessions in the week gone by, the index came off nearly 100 points from its day high. With intermediate trend within the stocks remain in overbought territory the index is anticipated to consolidate with immediate support at 10 daily EMA currently trading near 23141 and sustenance above it will they allow the index to garner bullish strength.

“The undercurrent of the market continues to be bullish. Sustained huge domestic flows is the principal driver of this rally. It is also important to understand that there is fundamental support to the rally from the strong economic growth and good corporate earnings. Global support from the mother market US, which is setting new records, also is a positive factor.

Since Nifty is currently trading at around 21 times FY25 estimated earnings, there is no room for further sharp rally from the current levels. Liquidity flows may sustain the outperformance of the broader market. But valuation comfort in this space is extremely low. So investors may focus on fairly valued largecaps, particularly in the banking space and also the leading auto stocks where the high valuations can be justified by their growth prospects.”

•Fixed Income

The New 10-Year Benchmark GOI 7.10 2034 traded between 6.97% - 7.04% during this week.

The Old 10-Year Benchmark GOI 7.18 2033 traded between 7.02% - 7.08% during this week, tracking movement in US Treasury Yields, Inflation data from around the globe and U.S. FOMC Meeting

•Auction Highlights

RBI conducted the Auction for G-sec, SDL, and T-Bill for the aggregated amount of INR 34,000 Crore, INR 7,750 (5,750) Crore, and INR 12,000 Crore, respectively. 

G-sec Cutoff:

New GS 2031: 7.02%\u0009

7.23% GS 2039: 101.77/7.0343%\u0009

7.34% GS 2064: 102.92/7.1175%

SDL Cutoff:

06 Years: PU 7.40%, UK 7.39%

08 Years: TN 7.39%

10 Years: HR 7.38%, PN 7.41%

14 Years: PU 7.38%

25 Years: JK 7.35%

Andhra Pradesh has not accepted any amount in the 15-year, 19-year and 21-year security.

T-Bill Cutoff:

091 Days: INR 4000 Crore 98.3240/6.8370%

182 Days: INR 4000 Crore 96.6308/6.9925%

364 Days: INR 4000 Crore 93.4650/7.0111%\u0009

•Commodities:

1)Brent Crude Oil: $81.19-$83.39 (Per barrel)

2)Gold: INR 7,167-INR 7,255 24 Carat (1 Gram)

3)Silver: INR 90,500-INR 91,300 (1 KG)

•US Treasury Yield:

1)US 2 Years Treasury: 4.65%-4.89%

2)US 5 Years Treasury: 4.19%-4.49%

3)US 10 Years Treasury: 4.18%-4.47%

•Corporate Bond Highlights

AAA 5 Years Bond traded between 7.66%-7.72% this week.

AAA 10 Years Bond traded between 7.52%-7.60% this week.

•New Issuances:

ADANI AIRPORT HOLDINGS LIMITED\u0009

Ratings: A+ by IND Ratings & CRISIL; Issue Size: 150 + 0 Crs; Maturity Date: 12/06/2028. 

Allocated 150 Crs at 9.95%

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

Ratings: AAA/Stable by INDIA Ratings & ICRA; Issue Size: 2000 + 3000 Crs.

Maturity Date: 06/12/2029; Allocated 5000 Crs at 7.64%

BAJAJ FINANCE LIMITED

Ratings: AAA/Stable by CRISIL; Issue Size: 500 + 2500 Crs; Maturity Date: 10/05/2027. 

Allocated 550 Crs at 8.15%

Ratings: AAA/Stable by CRISIL; Issue Size: 300 + 1500 Crs; Maturity Date: 15/05/2029. 

Allocated 1192 Crs at 8.05%

SEIL ENERGY INDIA LIMITED

Ratings: AA+/Stable by CARE; Issue Size: 250 + 0 Crs; Maturity Date: 18/06/2029.

Allocated 250 Crs at 8.45%

INFOPARK PROPERTIES LIMITED

Ratings: AA-/Stable by CARE; Issue Size: 875 + 0 Crs; Maturity Date: 19/06/2039. 

Allocated 875 Crs at 8.60%

INDIAN RAILWAY FINANCE CORPORATION LIMITED

Ratings: AAA/Stable by ICRA & CRISIL; Issue Size: 500 + 2500 Crs; Maturity Date: 13/06/2034.

Allocated 3000 Crs at 7.44%

RURAL ELECTRIFICATION CORPORATION LIMITED (Semi-annual coupon)

Ratings: AAA/Stable by INDIA & CRISIL; Issue Size: 700 + 3300 Crs; Maturity Date: 31/07/2034.

Allocated 4000 Crs at 7.35%

LIC HOUSING FINANCE LIMITED

Ratings: AAA/Stable by CARE & CRISIL; Issue Size: 500 + 2500 Crs; Maturity Date: 14/07/2027.

Allocated 2570 Crs at 7.935%

TATA CAPITAL HOUSING FINANCE LTD

Ratings: AAA/Stable by CARE & CRISIL; Issue Size: 100 + 500 Crs; Maturity Date: 05/08/2027.

Allocated 600 Crs at 100

Ratings: AAA/Stable by CARE & CRISIL; Issue Size: 200 + 350 Crs; Maturity Date: 18/06/2029.

Allocated 550 Crs at 99.1875.

\u0009

•News Highlights

INDIA

1)India’s foreign exchange reserves surged to a record high of $655.8 billion on June 7, 2024, marking an increase of $4.3 billion over the week. The increase in reserves was largely because of the rise in foreign currency assets which rose by $3.8 billion to $576.3 billion.

2)India’s headline retail inflation eased to the lowest in a year at 4.75 percent in May 2024, according to the data released by the Ministry of statistics and programme implementation. In the previous month of April 2024, the Consumer Price Index (CPI) inflation was at 4.83 percent. May CPI core inflation came at 3.1% vs 3.2% in April.

3)India’s Index of Industrial Production grew by 5% in April 2024, an official statement said. The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output grew 3.9 per cent in April 2024 against 5.5 per cent in the year-ago month.

4)Food inflation during May decreased marginally to 8.69% from 8.70% in April. The drop in inflation was witnessed in spices, meat and fish, sugar, milk and products, and even vegetables, though slightly. On a sequential basis, the overall index rose 0.5% a month.

5)Wholesale inflation rose to a 15-month high of 2.61% in May from 1.26% in April as food inflation rallied further and global metal prices fed into manufactured product inflation, data released Friday showed.

6)India’s merchandise exports grew 9.1% on year in May to $ 38.13 billion, but a sharp 28% rise in imports of petroleum crude and products pushed imports growth to 7.7%, precipitating a trade deficit of $23.78 billion, the highest since October last year, official data released on Friday (14/06/2024) showed.

7)The market capitalization of BSE-listed companies soared to a historic high of Rs 429.32 lakh crore on 12th June 2024, driven by the BSE benchmark Sensex’s upward movement amid a broadly positive trend in global equities. The 30-share BSE Sensex closed by 149.98 points, or 0.20 percent, at 76,606.57.

8)Non-life insurers posted 15.47 per cent year-on-year (Y-o-Y) growth in gross direct premium underwritten to Rs 20,822.29 crore in May 2024, latest data released by the General Insurance Council showed.

9)A review of the finances of 24 states by FE, showed that their capex in FY24 rose to Rs 7.16 trillion compared with Rs 5.68 trillion in the previous year, a rise of 26%. States’ capital expenditure likely rose by over a quarter in 2023-24 compared with an 18% rise in 2022-23.

10)The Ministry of Finance on Monday (10/06/2024) announced the release of an additional installment of tax devolution to states for June 2024. The objective of the move is to support state finances and spur economic development, it said. The total amount released to states for June, with the recent addition, stood at Rs 1,39,750 crore.

11)India is projected to remain the fastest growing among the world’s largest economies in the coming years, according to the latest report by the World Bank. Moderating growth is expected due to the slowdown in investment, but public and private investment growth should remain strong, the World Bank said.

12)The Confederation of Indian Industry expects India’s GDP to grow at 8% in FY25 on the back of boost in agriculture and services sectors and increase in public spending, among others.

13)The Finance Ministry announced that the interest rate for the General Provident Fund and other similar funds will be effective at the rate of 7.15% from April 1,2024 to June 30, 2024.

14)For FY26 and FY27, the World Bank projected India’s economy to grow at 6.7 per cent and 6.8 per cent, respectively. In FY24, the National Statistical Office has estimated gross domestic product (GDP) to have grown at 8.2 per cent.

WORLD

1)The World Bank upgraded its forecast for global economic growth, citing the strength of American consumer spending. However, they cautioned that despite the improvement, growth remains sluggish compared to past trends.

2)The Federal Reserve maintained a wait-and-see approach in June 2024, holding the federal funds rate steady at 5.25% to 5.50% for the seventh meeting in a row. This decision reflects their cautious stance on inflation, as they wait for clearer signs that inflation is on a steady path towards their 2% target before considering rate cuts. According to the dot plot, policymakers anticipate a single rate cut this year followed by a more accommodative stance in 2025 with four reductions expected.

3)US inflation showed signs of cooling in May, dipping to 3.3% year-over-year. This marks the lowest inflation rate in three months, down from 3.4% in April. Core inflation, which excludes volatile food and energy prices, also retreated to a three-year low of 3.4%, easing from 3.6% the previous month.

4)The UK economy continued its momentum in April, expanding at a rate of b compared to the same month last year. This follows a slightly stronger growth of 0.7% recorded in March.

5)The UK unemployment rate edged up to 4.4% for the February-April period, a slight increase from the previous quarter’s rate of 4.3%.

6)U.K. manufacturing production contracted by 1.4% in May, falling short of expectations for a flat performance (-0.2%) and reversing the previous month’s gain of 0.3%.

7)Germany’s Consumer Price Index (CPI) came in at 0.1% in May, matching expectations of 0.1% but lower than the previous month’s increase of 0.5%.

8)Australia’s employment change came in at 39.7K in May, exceeding expectations of 30.5K and higher than the previous month’s change of 37.4K.

9)Australia’s unemployment rate held steady at 4.0% in May, matching expectations and remaining near historic lows.

10)As widely expected, the BOJ kept its short-term policy rate target in a range of 0-0.1% by a unanimous vote. It also left unchanged the pace of monthly bond buying at roughly 6 trillion yen ($38 billion).

11)Japan’s Gross Domestic Product (GDP) contracted by -0.5% quarter-on-quarter, which was in line with the forecast of -0.5% but lower than the previous quarter’s growth of 0.1%.

12)Japan’s year-on-year GDP Price Index came in at 3.4%, lower than the forecast of 3.7% and the previous reading of 3.9%.

13)China’s consumer inflation held steady at 0.3% in May compared to April, indicating little change in prices for consumers. However, producer prices, which reflect prices at the factory level, continued to decline. The producer price index fell by 1.4%, which is a 2.5% improvement from the previous month’s decrease of 3.9%. This suggests ongoing deflationary pressures in China’s manufacturing PMI.

More than 50 children were found working in a liquor factory named Som Distillery in Madhya Pradesh’s Raisen district. The National Commission for Protection of Child Rights (NCPCR) registered an FIR against the factory owners following the discovery, news agency ANI reported on Saturday. Sovrenn is discontinuing coverage of the Company.

Roto Pumps has received various purchase orders worth ₹14.4 crore for the supply of progressive cavity pumps to biogas plants from GPS Renewables.

JK Tyre & Industries has been recognized as the first tyre manufacturer in the country to receive the prestigious International Sustainability & carbon Certification (ISCC) Plus for its Chennai plant. This certification underscores the company’s commitment to integrating sustainability into the manufacturing processes and promoting an environmentally conscious future

GS on M&M: Maintain Buy on Company, raise target price at Rs 3090/Sh (Positive)

Jefferies on M&M: Maintain Buy on Company, raise price at Rs 3510/Sh (Positive)

Nomura on M&M: Maintain Buy on Company, raise price at Rs 3374/Sh (Positive)

JP Morgan on Marico: Maintain Overweight on Company, raise price at Rs 660/Sh (Positive)

Investec on Vedanta: Upgrade to Hold on Company, raise target price at Rs 345/Sh (Positive)

Nuvama on Vedanta: Maintain Buy on Company, raise target price at Rs 644/Sh (Positive)

CLSA on Vedanta: Maintain Buy on Company, raise target price at Rs 520/Sh (Positive)

MOSL on Vedanta: Maintain Neutral on Company, raise target price at Rs 500/Sh (Positive)

MS on Nykaa: Maintain Overweight on Company, target price at Rs 198/Sh (Positive)

Nomura on Nykaa: Maintain Neutral on Company, target price at Rs 203/Sh (Positive)

Citi on Infosys: Maintain Buy on Company, target price at Rs 1785/Sh (Positive)

JP Morgan on Zomato: Maintain Overweight on Company, target price at Rs 208/Sh (Positive)

Jefferies on Financials: Max Life sees steady growth and limited impact of new norms, ICICI Lombard is confident on growth and better margins, CMS Info sees healthy growth & diversification (Positive)

Macquarie on Nykaa: Maintain Underperform on Company, target price at Rs 135/Sh Neutral)

BofA on Nykaa: Maintain Neutral on Company, target price at Rs 186/Sh (Neutral)

Jefferies on Infosys: Maintain Buy on Company, target price at Rs 1630/Sh (Neutral)

CLSA on Infosys: Maintain Buy on Company, target price at Rs 1553/Sh (Neutral)

Jefferies on M&M Fin: Maintain Hold on Company, target price at Rs 294/Sh (Neutral)

Jefferies on IIFL Fin: Maintain Hold on Company, target price at Rs 465/Sh (Neutral)

Jefferies on Dr Reddy: Maintain Underperform on Company, target price at Rs 5010/Sh (Neutral)

Citi on Dr Reddy: Maintain Sell on Company, target price at Rs 5200/Sh (Neutral)

Citi on RBL Bank: Maintain Sell on Company, target price at Rs 257/Sh (Neutral)

Citi on Auro Pharma: Maintain Sell on Company, target price at Rs 1040/Sh (Neutral)

BANK INDIA – Rs 2.80

HDFC AMC – Rs 70

L&T FIN – Rs 2.5

TATA INVESTMENT – Rs 28

Symbol: IXIGO 

Series: Equity “B Group” 

BSE Code: 544192 

ISIN: INE0HV901016 

Face Value: Rs 1/- 

Issued Price: Rs 93/- per share

Ex-Dividend 19 June 2024 (Tomorrow)

Last date for Cum-Dividend Today

Dalmia Bharat Ltd

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 1883.8

Intellect Design Arena Ltd

Dividend Per Share Rs.3.5

Previous day Closing Price – Rs. 1075.45

Ltimindtree Ltd

Dividend Per Share Rs.45

Previous day Closing Price – Rs. 5030.25

Panasonic Carbon India Co. Ltd.

Dividend Per Share Rs.12

Previous day Closing Price – Rs. 574.4

Sagar Cements Ltd.

Dividend Per Share Rs.0.7

Previous day Closing Price – Rs. 253.85

Domestic benchmarks BSE Sensex and NSE Nifty are likely to open on a positive note. However, mixed global cues will check their progress, say analysts.

China and Eurozone inflation numbers are in focus as investors seek insights into the economic outlook of these countries, per analysts.

With lack of cues, investors and traders will indulge in sector rotation that will see profit taking in some counters ahead of the Budget presentation, they added.

Shares of Le Travenues Technology, owners of travel aggregator ixigo, will be listed at the bourses on Tuesday. The company has fixed the IPO price at ₹93, at the upper end of the price band (₹88-₹93).

The IPO saw a blockbuster response from all categories of investors. It was subscribed by 98.34 times. Institutional investors subscribed 106.73 times, non-institutional investors 110.53 times and retail investors 54.85 times. 

Analyst expects a premium listing given a huge response to the public issue

Zomato has said that it is in talks with fintech player Paytm to acquire its movie and ticketing business. This comes at a time when the fintech player is focusing on core businesses of payments and financial services. At the same time, the food delivery major is looking to tap into the growing consumer demand for going-out and entertainment segment.

Meanwhile, Paytm is merging its ‘Insider’ and movie ticketing businesses. In a BSE filing, One97 Communications Ltd, the parent of Paytm, said, ”The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s Entertainment business, a component of our Marketing Services, is one opportunity under consideration.“ It added that this was in line with its strategy to focus on payment, financial services, and digital goods commerce.

Hindustan Aeronautics has informed the exchanges that a Request for Proposal (RFP) has been issued by the Ministry of Defence for the procurement of 156 Light Combat Helicopter. Out of these 156 Light Combat Helicopter, 90 are for the Indian Army and 66 for the Indian Airforce.

Tata Consultancy Services has received an adverse judgment from the US District Court, Northern District of Texas, Dallas Division, under which, the company is liable to pay $194.2 million for misappropriation of trade secrets. TCS maintains that it has strong arguments to counter the ruling and plans to defend its position through a review petition or an appeal to the appropriate court.

Bondada Engineering has received work orders from Bharti Airtel for supply of 6 mtr height GI pole wt 60 kg (hot dipped galvanised) without base, amounting to ₹2.05 crore (including GST) to Tamil Nadu.

In relation to preliminary impact assessment of Pratt & Whitney powder metal issue, resulting in removal of higher number of engines from service and grounded for inspection and replacement, InterGlobe Aviation (IndiGo) finalised an amendment to the existing agreement with International Aero Engines, LLC, an affiliate of Pratt & Whitney. Accordingly, IAE will provide IndiGo with a customised compensation in relation to the ongoing situation of Aircraft on Ground due to unavailability of engines.

Bhumika Group’s Urban Square Mall (Udaipur) has announced the opening of Lemon Tree Hotel. The property is known as Keys Lite by Lemon Tree. Located within the Urban Square mall, Keys Lite by Lemon Tree - Urban Square offers 68 fully-serviced apartments designed to provide a harmonious blend of comfort and sophistication, per the company.

Global pharma major Lupin Limited has appointed Abdelaziz Toumi (Abdel) as the Chief Executive Officer of its newly formed subsidiary, Lupin Manufacturing Solutions (LMS). LMS is engaged in the development, manufacture and sale of active pharmaceutical ingredients and is starting to build its contract development and manufacturing operations (CDMO) business.

Alembic Pharmaceuticals has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Icatibant injection used for treatment of acute attacks of hereditary angioedema (HAE) in adults 18 years of age and older.

Zydus Lifesciences has informed the exchanges that drug regulator USFDA classifies injectable manufacturing unit at Pharmez SEZ, Matoda unit as Official Action Indicated. The USFDA had conducted an inspection at the injectable manufacturing unit at Motada from March 18 to 27.

Hindustan Oil Exploration Company Limited has announced that the export flowline is cleaned up in Block B-80 and both the wells D1 and D2 are lined up for production. Current field production is about 1,300 bopd and 6 mmscfd of gas, respectively.

The Board of National High Power Test Laboratory Pvt. Ltd. (NHPTL) has approved the transfer of 1,31,63,750 shares from NTPC Limited to Power Grid Corporation of India Limited, in line with the supplementary joint venture agreement signed between JV Partners of NHPTL. The post-transaction equity holding of NTPC Limited in NHPTL becomes 12.50 per cent from 20 per cent. Accordingly, NHPTL ceases to be an associate company of NTPC Limited.

European Commission said HFCL is the only Indian company not engaged in dumping of OFC in European markets whereas provisional anti-dumping duty has been determined on all other Indian optical fibre cable manufacturers. This makes HFCL as the only Indian optical fiber cable manufacturer to have been exempted from anti-dumping duties by European Commission. 

Vishnu Prakash R Punglia Ltd has announced the receipt of a letter of acceptance from the office of DY CE-C-BKN-Engineering, North Western Railway Bikaner. The letter pertains to the project titled “Earthwork in filling and cutting in formation, blanketing, trolley refuges, toe, wall, retaining wall, pitching, construction of minor bridges & LHS, FOB, platform, platform shelters, S&T structures, cable duct and other ancillary works between Sadulpur to Churu in connection with Churu- Sadulpur doubling project.” The tender, evaluated and accepted by the competent authority, is valued at ₹90.897 crore.

Nava Ltd said its 60 MW captive power plant-1 (CPP-2) located at Kharagprasad in Odisha is scheduled for carrying out routine overhaul and maintenance from June 17 to July 31, 2024. The CPP-2 will resume operations with effect from August 1, 2024. The ferro alloy plant is fully operational with power supply from the 30 MW captive power plant-1 (CPP-1) of the company.

Biocon said the US Food and Drug Administration (USFDA) concluded a GMP inspection of its API facility (Site 6), located at Visakhapatnam, Andhra Pradesh, on 14 June 2024. “Three observation were cited at the end of the inspection, which we will be addressing within the stipulated time,” per the company.

Electronics Mart India has commenced the commercial operations of a new 8,000 square feet multi brand store under the brand name ‘Bajaj Electronics’ in Nizamabad, Telangana.

Union Bank of India has conveyed its approval to the one time settlement (OTS) offer submitted by PC Jeweller. The company had opted for OTS to settle the outstanding dues. The terms and conditions of approved OTS include cash and equity component payable under settlement, release of securities and mortgaged properties, etc.

GGMR Hyderabad Vijayawada Expressways Private Limited (GHVEPL), a Subsidiary of GMR Power and Urban Infra Limited, is in advanced stage of settlement of its claims with National Highway Authority of India (NHAI) and closure of loans with its consortium of lenders. 

IIFL Finance has received approval from NSE to divest equity shares aggregating up to ₹84.70 crore of NSE through secondary market. In a separate disclosure, the company said the Reserve Bank of India (RBI) has concluded its special audit of the company, initiated in response to significant concerns identified in its gold loan portfolio.

The Indian Council of Agriculture Research-National Bureau of Soil Survey and Land Use Planning (NBSS&LUP) has entered into a memorandum of understanding (MoU) with Coromandel International (CIL). The fertilizer company informed the exchange that the collaboration aims to enhance the dissemination of improved soil test-based crop nutrition management to benefit farmers in Maharashtra, particularly in the Vidarbha and Marathwada regions.

Jainam Ferro Alloys (I) Limited has commissioned 4 MWp captive solar power plant on June 15, 2024 and the same has been duly synchronised with the grid. The power generated from the plant will be captively consumed by ferro plant of the company. The generation of solar energy will not only support the green initiatives and reduce the carbon foot print, but also help saving in cost of power consumption by the company, per a statement.

Tanla Platforms, a CPaaS provider has announced the appointment of Abhishek Kumar Jain as Chief Financial Officer, effective August 1. Abhishek will join Tanla post a nearly two-decade stint in Wipro Ltd, a leading publicly traded IT Services company.

The Board of Godawari Power & Ispat Ltd ha approved a buyback offer or 21.5 lakh fully paid-up equity shares at ₹1,400 a share for ₹301 crore. The buyback is proposed to be undertaken from equity shareholders/beneficial owners of the company as on June 28, 2024 (record date), on a proportionate basis through the tender offer route using stock exchange mechanism. 

JNK India Limited has received ₹350-₹500 crore order from Reliance Industries Limited (RIL) for gas cracker unit (GCU) de-bottlenecking (DBN) project at RIL’s Nagothane manufacturing division (NMD), Maharashtra.

Provident Housing, the wholly‐owned subsidiary of Puravankara Limited, in its normal course of business has purchased the landowner’s share in its Adora De Goa project in Dabolim, South Goa for a consideration of ₹122 crore, with additional GDV of ₹215 crore. The said project is registered with Real Estate Regulatory Authority, Goa.

Response Informatics has entered into a non-binding term sheet with an artificial intelligence (AI) and blockchain focused solutions and development company. However, the implementation of the term sheet and the acquisition of stake is subject to completion of legal, financial, business, and commercial due diligence, per the company.

Nila Spaces has won a bid for a significant residential building development project at GIFT SEZ. This project, located in dual-use non-processing area of GIFT City, involves the development rights for a minimum of 5,22,000 square feet.

Raymond: Promoter Shephali Ruia bought 13,187 shares between May 31 and June 3. 

Pennar Industries: Promoter Aditya Narsing Rao bought 15,750 shares on June 4. 

Marksans Pharma: Promoter Sandra Saldanha bought 63,276 shares on June 5. 

Prime Focus: Promoter Naresh Mahendranath Malhotra revoked a pledge for 2.11 crore shares on June 4.

Gensol Engineering: Promoter Anmol Singh Jaggi bought 53,945 shares on June 4. 

Krishna Diagonistics: Promoter Krsna Diagnostics (Mumbai) bought 45,000 shares on June 4.

Jindal Saw: Promoter Shradha Jatia bought 19,004 shares on June 4. 

Sudarshan Chemical: Promoter Ajay Balkrishna Rathi sold 18.48 lakh shares on June 5. 

Usha Martin: Promoter Peterhouse Investments India sold 75,000 shares. 

Cantabil Retail: Promoter Deepak Bansal bought 1 lakh shares between June 5 and 7.

Mphasis: Promoter BCP Topco Ix sold 2.85 crore shares on June 10. 

Lancer Container Lines: Promoter Abdul Khalik Abdul Kadar Chataiwala bought 1.16 lakh shares on June 10. 

Advanced Enzyme Technologies: Promoter Advanced Vital Enzymes Private Limited sold 55,009 shares on June 7. 

Sterling and Wilson Renewable Energy: Promoter Kainaz Khurshed Daruvala created a pledge for 2.8 lakh shares on June 7.

BANK INDIA – Rs 2.80

HDFC AMC – Rs 70

L&T FIN – Rs 2.5

TATA INVESTMENT – Rs 28

Allcargo Logistics

There are indications that the global supply chain industry will expand in the second half of 2024.

Despite the addition of 1 mn TEUs to the capacity of container shipping this year, freight rates are still rising

Warehousing capacities in key countries are going down and inventory re-stocking is happening on the back of actual consumer demand going up and in anticipation of demand recovery

Express business has seen significant improvement on the back of cost reduction, which has on a monthly basis until March, providing healthy exit rates on operating costs.

Apcotex Industries

Apcotex Industries foresees revenues of Rs 18.0-20.0 bn and margins of 12-14% in the next three-five years.

The management believes that EBITDA margins between 12-14% are sustainable

The next leg of growth will be driven by exports as the share of exports is expected to go up from 30% to 50% over three-five years.

The management expects to incur a capex of Rs 200-350 mn in FY25, which also includes maintenance capex.

Management remains optimistic about recovery in the coming 9 -12 months.

Apcotex along with other companies are in talks to file for antidumping duties on NBR.

Longer export receivables have impacted the working capital cycle lately.

APL Apollo Tubes

In FY24, APL Apollo Tubes (APAT) fell short of guidance by 13%, primarily because of slowdown in consumption activity impacting ~100k MT of volumes, late ramp-up of Raipur and Dubai plants impacting ~100k MT of volumes, and subdued 3Q.

Despite being short on guidance, overall performance was still strong with 15% volume growth, 17% EBITDA growth and 14% PAT growth.

Operating cash flow to EBITDA has been upwards of 90% throughout, indicating good cash flow generation.

The company targets return on capital to increase to 35-38%.

APAT is confident in achieving EBITDA/tonne of Rs 5,500/tonne when the company’s volumes cross 5 million tonnes. The company also targets EBITDA margin of Rs 10,000/tonne and 10 million tonne capacity.

Current value add mix is 60% for FY24. APAT plans to take it to 70-75% when the company reaches the 5 million tonne mark.

APAT commands a premium of at least 4-5% over competition for its products.

Solar torque tubes have become an important element in solar industry. The world is moving towards tracking solar systems. Tracking solar system needs to be built only on a tubular structure. APAT is working with all the large solar power producers to develop their tracking structures with the help of its tubes.

Apollo Pipes

During FY19-24, the company delivered volume growth at a CAGR of 15%, whereas revenue grew at a CAGR of 22% during that period. The company has guided sales growth at a CAGR of 25% over the next three to four years, driven by increased organic and inorganic capacity, entry into newer markets and positive demand outlook.

Apollo Pipes is actively working to strengthen its presence in domestic markets and playing a crucial role in enhancing its PanIndia footprint, with its recent greenfield expansion plan in Varanasi, brownfield expansion plan of Dadri facility and acquisition of Kisan Mouldings. 

In the medium-term, it is planning to adjust its product mix towards plumbing pipe with expansion of product portfolio as well as expanded capacity.

The company has recently acquired old legacy brand of Kisan Moldings with a capacity of 60k tonnes and a wide dealer network alongwith a diverse product portfolio. Post modernisation and efficiency improvement, the company is targeting sales of ~Rs 9 bn with an EBITDA margin of 10%.

3M India

India expected to grow the PV segment production by 5-8% in FY25, automotive electrification and premiumisation in SUVs, which will help 3M India increase their revenue streams.

* Local value addition across all the segments is ~60% of the overall sales and increased by 100-125 bps over the past four-five years.

* The outlook for the automotive industry is expected to be around 3-5% in FY25; however, they expect to perform well due to their penetration in different segments. Growth opportunity in revenue is expected to be driven from the Safety & Industrial business.

* Most of the production in China is done for the Chinese local market and minimal for the export internally to 3M, establishing production capabilities in India would be possible if the customers move their buyer base from the Chinese market to the Indian market.

* 3M is working closely with the emerging and established OEM players on product development of their products bespoke to the OEM models which is expected to get solidified in the next 18 months.

360 One

The new HNI business segment is being launched in existing locations in the initial phase.

The economics of the HNI business are better due to a primarily distribution-led model, which leads to better retention

By the end of three-four years, C/I is likely to improve to 44-45% and then settle down at 42-43% in the longer term.

On AMC, the company’s focus will always remain on Alternate products and institutional business, rather than retail.

Action Construction Equipment

Guided 15-20% year-over year growth in the cranes, material handling, and agriproduct segments in FY25, and 30-40% YoY growth in its construction equipment segment. 

It has projected FY25 revenue to grow by 15-20% YoY, with the potential for further margin expansion. Additionally, it is targeting 2x revenue growth over the next two-three years.

The new emission norms are expected to impact at least 50% of the company’s portfolio. There could be some drop in the volumes as well

The company hinted that they are planning to acquire a small company with a good product outside the country. They are looking to move some of the specific export products through that company apart from their own product which they manufacture in their assembly.

Ashok Leyland

Management indicated on strong demand for traditional ICE segments, especially in trucks and buses. Tractor trailer volume is gaining market share from the multi-axle segment, and there is significant growth in the school bus segment.

Ashok Leyland (AL) expects to maintain EBITDA margins in the mid-term through cost reduction strategies, volume increases, and stable steel commodity prices. AL undertook prices increase of 1.5% in the MHCV segment and 3% in the LCV segment

In the next two-three years, management plans to expand distribution network from 250 to 750 outlets, eventually reaching 1,500 outlets in the long run.

Slow progress in scrappage policies with a longer time to recover. 50% of trucks are below BS IV emission norms, presenting opportunities for replacement. 

BS IV vehicles cost 20% less than BS VI, making freight rate increases challenging for BS VI operators.

Astral

Astral has set a medium-term goal to double its revenue over the next five years.

This target is based on anticipated volume growth in the pipes segment and sustainable growth in the adhesives, sanitaryware, and paints segments.

This growth is expected to be driven by the establishment of two new facilities in Hyderabad and Kanpur. These facilities will significantly enhance Astral’s brand presence in these regions, enabling the company to tap into new markets and customer bases.

The company is present in eight high growth categories of pipes, water tanks, adhesives and sealants, construction chemicals, bathware, paints, specialised walls and infrastructure products

Astral plans to launch OPVC pipes in the third quarter of FY25. The OPVC segment is projected to experience rapid growth compared to the building materials segment due to its high acceptance in large infrastructure projects and its cost advantages over ductile iron pipes.

Beyond its core segments of pipes and adhesives, Astral is placing increased focus on its water tanks segment. This segment is expected to see meaningful growth over the next two to three years, further diversifying the company’s revenue streams and enhancing its market position.

Aurobindo Pharma

High single-digit revenue growth anticipated on a consolidated level with EBITDA margin of 21-22%.

Low single digit growth expected in API business.

The price erosion has eased in the US generics because smaller players, causing the price erosion (5-10% range), are unable to supply the products due to unaffordability. Hence, customers are demanding reliable supplier.

Certain products are facing shortages, it is supplying as much as possible.

Being a late entrant, Revlimid is not a significant contributor for the company. It is in double digits revenue for the company, slight upside is expected in FY25.

Strategy of the company is to grow on the basis of overall portfolio (658 ANDA’s approved, 172 pending) and not be dependent on one product.

All business in EU are doing good and will continue to grow.

Revenue run-rate to be stable at this level and due to expensive valuations and long payback period, company unwilling to acquire brands in India.

14:30 EURO Final Core CPI y/y (Expected: 2.6% versus Previous: 2.6%)

18:00 U.S. Retail Sales m/m (Expected: 0.3% versus Previous: 0.0%)

18:45 U.S. Industrial Production m/m (Expected: 0.4% versus Previous: 0.0%)

22:10 U.S. FOMC Member Kugler Speaks

* BALRAMPUR

* GMRINFRA

* HINDCOPPER

* INDIACEM

* SAIL

* SUNTV

BofA on HDFC Bank

Maintain Buy with TP of Rs 1800

Finding a bottom to re-rating – key issues and catalysts

FY25 – EPS cut cycle bottom = big stock bottom?

Believe current EPS expectations are low enough and we might finally see an end to the EPS downgrade cycle

Citi on Pharma

Introduced downside 90-day Catalyst watches for Aurobindo Pharma & Dr Reddys

Removed CIPL from preferred picks

Lupin may also surprise negatively but the recent launch of Myrbetriq may mask the potential weakness in pricing

Prefer Torrent Pharma and Sun Pharma

UBS on Vodafone stake sale in IndusTowers :

Stake sale highly likely, but the amount will likely not be as big as anticipated

Unlikely that Bharti acquires entire stake from Vodafone, partial purchase to increase stake above 50% is possible

Vodafone Idea: PT Rs 18 (Buy)

Mahindra & Mahindra

Axis Cap

Downgarde to ADD From BUY

Revise TP to 3,150 vs 2,740

Nomura

Maintain as top pick

TP Increased from 2,818 to 3,374

CLSA

Maintain SELL rating 

TP upped from 2,312 to 2,636 

Jefferies 

Retain BUY

Tgt uppped to 3,510 vs 2,910

Nifty is managing to hold higher and is moving up gradually. The near-term outlook is still positive. There is room for the Nifty50 to move further up from here to test its key resistances.

Nifty Bank index has support at 49,400 and resistance at 50,600. A breakout on either side of these two levels will determine whether the Nifty Bank index can rise to 51,500 and 52,000 or can fall to 48,500.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

JK Paper share price has made a bullish breakout on Friday and has closed on a strong note for the week.

The decisive break above the key resistance level of ₹455 last week confirms an inverted head and shoulder pattern on the chart. That strengthens the bullish case. The region between ₹455 and ₹450 will now act as a good support and limit the downside.