Share Market Highlights: Sensex and Nifty close lower in weekend trading

Indian shares ended lower in a trading session on Saturday, dragged by information technology companies and Hindustan Unilever, but gains in lenders helped limit some losses.

The blue-chip Nifty 50 ended down 0.23% to 21,571.80, while the S&P BSE Sensex fell 0.4% to 71,423.65.

The equity market traded in a full session on Saturday, and will remain shut on Monday due to a public holiday in Maharashtra state and as the central government observes a half-working day on the occasion of the inauguration of the Ram Temple in the northern city of Ayodhya.

IT stocks slid 1% on the day after gaining more than 6% in the past two weeks following better-than-feared earnings in the sector.

Consumer stocks fell 1.2%, weighed down by FMCG giant Hindustan Unilever, which slid about 4% after a smaller-than-expected profit increase

.In contrast, the Nifty Bank index rose 0.8% after losing 5% over the last four sessions following disappointing results from top private lender HDFC Bank.

HDFC, an index heavyweight, rose 0.6% following a more than 12% slide post its results.

Kotak Mahindra Bank gained 2.4%, despite reporting quarterly profit below estimates.

Digital payments firm Paytm climbed 1.5% after reporting an operating profit for the fifth consecutive quarter on account of festive season-led sales.

Shares of Indian Renewable Energy Development Agency and IDBI Bank gained 10% and 13.6%, respectively, after reporting strong quarterly results.

The stock market was earlier set to trade in two special sessions on Saturday as the exchanges looked to test out a failsafe system for trading. - Reuters

ICICI Bank marked a historic fiscal third quarter with a standalone net profit of ₹10,272 crore, surging from ₹8,312 crore in the same period last year, driven by robust loan growth. 

Kotak Mahindra Bank Ltd. Q3FY24 Result First Cut - Net profit missed market estimates; Focus on MFI segment continues

# Net Interest Income stood at Rs. 6,554 crores in Q3FY24, showing a growth of 4.1% QoQ / up 15.9% YoY. 

# Pre-provision operating profit (PPOP) stood at Rs. 4,566 crores in Q3FY24, showing a de-growth of 1.0% QoQ / up 18.6% YoY.

# Provisions rose to Rs. 579 crores in Q3FY24 from Rs. 367 crores in Q2FY24 and Rs. 149 crores in Q3FY23. The higher provision was on account of Rs. 190 crores on applicable Alternate Investments Funds (AIF) Investments under the RBI circular dated 19th December 2023. 

# The bank’s quarterly net profit dropped to Rs. 3,005 crores in Q3FY24, down 5.8% QoQ / up 7.6% YoY, missing market expectations of Rs. 3,200 crores. The decline in profits can primarily be attributed to the bank’s trading and MTM gains, which were around Rs. 168 crores.

# NIM remained stable sequentially at 5.22% in Q3FY24, down 25bps YoY.

# Gross NPA stood at 1.73% in Q3FY24, down 1bps QoQ / down 17bps YoY.

# Net NPA stood at 0.34% in Q3FY24, down 3bps QoQ / down 9bps YoY.

# Capital Adequacy Ratio stood at 19.0% in Q3FY24 compared to 20.0% in Q2FY24 and 19.7% in Q3FY23.

# Gross Deposits showed a marginal growth and stood at Rs. 4,08,636 crores in Q3FY24, up 1.9% QoQ / up 18.6% YoY. 

# Gross Advances stood at Rs. 3,59,588 crores in Q3FY24, up 3.3% QoQ / up 15.7% YoY on account of healthy growth from its credit card and retail microfinance segment.

# CASA further showed de-growth at 47.7% in Q3FY24 from 48.3% in Q2FY24 and 53.3% in Q3FY23. This was on account of the TD sweep of around Rs. 41,784 crores.

# On 2nd November 2023, the Bank and Kotak Mahindra General Insurance Company Limited (“KGI”) entered into definitive agreements for a transaction with Zurich Insurance Company Limited (“Zurich”), whereby Zurich will invest approximately Rs. 4,051 crores to acquire a 51 % stake in KGI through a combination of fresh growth capital and share purchase, and will acquire an additional stake of 19% within three years from its initial acquisition (the Transaction). The Transaction is subject to customary conditions precedent, including regulatory approvals from the RBI, the Insurance Regulatory and Development Authority of India, and the Competition Commission of India. Upon completion of the Transaction (after receipt of all requisite approvals), KGI will cease to be a wholly-owned subsidiary of the bank.

View:

The Mumbai headquartered leading private lender Kotak Mahindra Bank unexpectedly reported a dull set of numbers in Q3FY24 with net profit missing market expectations. The bank continues its historical trend of being stringent regarding its asset quality, however, there was fresh slippage during the quarter. This was reflected in its gross NPAs declining and pre-emptively accounting for additional provisioning. Though the NIMs remained stable sequentially, we feel that Kotak Mahindra Bank will continue to have NIM compression in the forthcoming quarters as well. Due to intense competition amongst key players to acquire low-cost savings deposits, the bank faced the brunt and saw a decline in its addition of savings deposits this quarter. However, the bank’s strategic focus on microfinancing, which grew by almost 59% on a YoY basis, will help to generate significant profits in absolute terms and reduce the sharp impact on NIMs. We believe that with the decline seen in RoAs and elevated cost-to-income ratio due to wage revision, the bank will need some strategic thinking regarding its business growth to ensure that the bank performs as per its historic past under the leadership of Mr. Uday Kotak.

Shreyansh V.Shah, Research Analyst, StoxBox

At 3:10 pm, the NSE Nifty gained 72.25 pts or 0.33% to 21,550 and the BSE Sensex rose 321.57 pts or 0.45% to 71,361.66.

Out of the 2,567 stocks that traded on the NSE, 1,278 stocks advanced, 1,187 stocks declined and 102 stocks remained unchanged.

Top Gainers: 

Coal India (4.44%), Adani Ports (3.22%), Adani Enterprises (2.72%), Kotak Bank (2.32%), ICICI Bank (1.27%)

Top Losers: 

HUL (3.73%), TCS (2%), M&M (1.89%), IndusInd Bank (1.63%), HCL Tech (1.42%)

At 2:05 pm, the BSE Sensex gained 32.37 pts or 0.05% to 71,650.86 and the NSE Nifty rose 2.15 pts or 0.01% to 21,624.55.

IREDA’s stock price gained over 21% or ₹25.80 to trade at ₹148.85 AT 1.45 p.m. on NSE. 

Astrazeneca Pharma’s share advanced ₹295 or 4.67% to ₹6,609.25 at 1.16 p.m. on NSE.

Machinery maker Megatherm Induction on Saturday said it has fixed a price band of ₹100 to ₹108 per share for its Initial Public Offering (IPO).

The issue will open for public subscription on January 25 and conclude on January 30, the company said in a statement.

The public issue is entirely a fresh issue of 49.92 lakh equity shares, it said.

At the upper-end of the price band, the company aims to raise about ₹53.91 crore from the public issue.

The company’s shares are scheduled to list on the NSE Emerge platform. (PTI)

Kotak Mahindra Bank reported a 7.4% Y-o-Y rise in Q3 FY24 PAT to ₹3,005 crore from ₹2,792 crore.

Kotak Mahindra Bank’s shares rose 2.19% or 38,70 pts to ₹1,803 on NSE. 

At 12:40 pm, the BSE Sensex declined 149.59 pts or 0.21% to 71,533.64 and the NSE Nifty fell 33.85 pts or 0.16% to 21,588.55. 

Shares of Reliance Industries Ltd fell 1.30 per cent in morning trade on Saturday after the company reported its quarterly earnings.

The oil-to-retail-to-telecom conglomerate’s consolidated net profit of ₹17,265 crore in the third quarter of the current fiscal was 9.3 per cent higher compared to the year-ago period.

Shares of FMCG-major ​HUL declined more than three per cent in the morning trade ​on Saturday, a day after the ​company reported its December quarter earnings​.

On Friday, the company reported a 1.08 per cent increase in consolidated net profit at ₹2,508 crore in the third quarter ended December 2023.

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/58034ec5-d95c-4757-802c-c6588f31caa6.pdf

Press Release

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/2564cf88-3a20-46c2-8c29-95b6e8c62b97.pdf

Presentation

Link: https://rilstaticasset.akamaized.net/sites/default/files/2024-01/RIL-3Q-FY24-Analyst-Presentation-19Jan24.pdf 

The Indian stock market witnessed a commendable recovery driven by positive global sentiments yesterday. This optimistic trend has extended into today as well. Following a gap-up opening, it is expected that the Nifty will consolidate around its current levels, with significant Open Interest (OI) observed at the 21500 Put and 21800 Call strikes.

Turning to Bank Nifty, the 46000 Call strike exhibits a meaningful OI of approximately 25 lakh shares, whereas the 46000 Put strike holds a significant OI of around 17 lakh shares. Even with possible short-term ups and downs, the larger trend indicates that it’s a good idea to sell when prices are going up.

Bank Nifty futures (January expiry) opened today’s session higher at 46,050 as against yesterday’s close of 45,797.20. It is now trading around 45,840, up 0.15 per cent.

The price action continues to be bearish. But there is a minor support at 45,600. If this level is breached, Bank Nifty futures could drop to 45,000, a support.

The Nifty 50 January Futures (21,693) is up 0.1 per cent. The contract touched a high of 21,759 and has come down from there. Support is near current levels at 21,680. A bounce from here will be bullish to see 21,800-21,850 on the upside in the coming sessions.

Though crude oil futures settled lower on Friday, they managed to record a weekly gain due to the escalating tensions in the Middle East and the robust demand forecast by different agencies. On Friday, March Brent oil futures settled at $78.60, down by 0.63 per cent; and March crude oil futures on WTI (West Texas Intermediate) at $73.43, down by 0.70 per cent.

Business growth to continue in 2024, but stocks warrant consolidation

We expect housing industry demand to grow around 12% in 2024 and for large developers to outpace industry to grow at 15%-20%. However, property stocks have gone up sharply over the past three months and our reverse DCF valuation implies very high growth built into current prices, which we believe will be difficult to achieve considering cyclicality. While we expect positive macroeconomic news flow ahead of the elections (eg. programs for affordable housing) and news specific to companies (large new launches), we believe the resultant growth from such events is already built into our estimates. We thus expect stocks to consolidate in 2024 and downgrade key stocks DLF, Prestige and Sobha.

We expect housing industry demand to grow c.12% in 2024 and for large developers to outpace industry to grow at 15%-20%. However, property stocks have gone up sharply over the past three months and our reverse DCF valuation implies very high growth built into current prices, which we believe will be difficult to achieve considering cyclicality. While we expect positive macroeconomic news flow ahead of the elections (eg. programs for affordable housing) and news specific to companies (large new launches), we believe the resultant growth from such events is already built into our estimates. We thus expect stocks to consolidate in 2024 and downgrade key stocks DLF, Prestige and Sobha.

Reliance Industries Ltd. | CMP Rs. 2720 | M Cap Rs. 1840266 Cr | 52 W H/L 2722/1986

Result is broadly in line with expectations

Strong performance of Retail was offset by weak performance of O2C; Telecom remains stable

Revenue from Operations came at Rs. 225086 Cr (-2.9% QoQ, 3.6% YoY) vs expectation of Rs. 252606.4 Cr, QoQ Rs. 231886 Cr, YoY Rs. 217164 Cr

EBIDTA came at Rs. 40656 Cr (-0.8% QoQ, 15.3% YoY) vs expectation of Rs. 40575.5 Cr, QoQ Rs. 40968 Cr, YoY Rs. 35247 Cr

EBITDA Margin came at 18.1% vs expectation of 16.1%, QoQ 17.7%, YoY 16.2%

Adj. PAT came at Rs. 17265 Cr vs expectation of Rs. 18965.1 Cr, QoQ Rs. 17394 Cr, YoY Rs. 15792 Cr

Quarter EPS is Rs. 25.5

Retail

Retail Revenue came at Rs. 74373 cr grew 7.8% QoQ & 24% YoY

Retail EBITDA came at Rs. 6061 cr vs grew 8% QoQ & 30% YoY

EBITDA margin came at 8.1% vs QoQ 8.1% & YoY 7.7%

Area under operation came at 72.9 mnsqft increased by 2.0% QoQ & 21% YoY

O2C

O2C Revenue declined by –2.4% yoy and down by -9.5% QoQ to Rs.141096 cr, 

O2C EBITDA came at Rs.14064 cr vs QoQ 16281 cr & YoY Rs.13926 cr

EBITDA margin came at 10.0% vs QoQ 11.0% YoY 9.6%

EBITDA declined sequentially on account of lower GRMs and marginally weaker petrochemicals

Jio

Jio Reported ARPU of Rs.181.7 vs QoQ 181.7 & YoY Rs.178.2

Subscriber increased by 2.4% QoQ and 9% YoY to 470.9 mn

Revenue came at 27,697 cr up 3% QoQ and 11% YoY

EBITDA came at Rs.13955 cr up 3% QoQ and up 11% YoY

Stock is trading at P/E of 25.1x FY24E EPS

Whereas Morgan Stanley maintained overweight. It said the company reported slowest investment capex in two years. It also pointed to the completion of 5G rollout.

Earnings In Focus 

Indian Renewable Energy Development Agency, ICICI Bank, Kotak Mahindra Bank, Union Bank of India, IDBI Bank, Persistent Systems, JK Cement, Jammu and Kashmir Bank, Can Fin Homes, Waaree Renewable Technologies, Rajratan Global Wire.

Stocks To Watch 

Tata Steel: The company will commence statutory consultation as part of its plan to transform and restructure its U.K. business. 

HFCL: The company received a purchase order worth of Rs 623 crore from a telecom service provider for the supply of 5G telecom networking equipment. 

Zee Entertainment: The company issued a clarification on media reports of Sony’s board to take a call on a $10 bn merger with Zee Entertainment on Friday. It said that it is not aware of any board meeting held or proposed to be held by Sony India and added that the company is committed to the merger with Sony. 

KPI Green Energy: The company’s unit received an order for a 5.60 MW solar project from a domestic entity.

Hardwyn India: The company’s subsidiary Slim-X plans to generate -revenue of Rs 100 crore in the next two years. 

One 97 Communication: The company approved joint development pact with ACE Builders for the development of the IT/ITES complex in Noida and approved the incorporation of one or more subsidiaries in GIFT City. 

Shilpa Medicare: The company’s NDA Product PEMRYDI RTU (Pemetrexed Injection) received product-specific code J* from the U.S. Centers for Medicare & Medicaid Services. PEMRYDI RTU is used as a drug in the treatment of non-small cell lung cancer in combination with other chemotherapy agents. 

Star Health and Allied Insurance: N. Chittibab resigned from the position of chief innovation officer and key managerial personnel.

Navkar Corp: The company said that there are no negotiations taking place that require disclosure under the SEBI. 

Prataap Snacks: The company issued a clarification that it is not in negotiations with Haldiram’s for a stake sale. 

Rico Auto Industries: The company unit signed a licensing agreement for the transfer of technology with DRDO. 

Fortis Healthcare: The company’s unit Agilus Diagnostics received notice from Delhi’s anti-corruption bureau in the Mohalla Clinics’ case. 

Life Insurance Corp: The company announced the new product launch of LIC’s Jeevan Dhara-II. 

Prakash Industries: The company received permission to establish Bhaskarpara commercial coal mine in Chhattisgarh from the Chhattisgarh Environment board. 

All Cargo Logistics: The company’s unit incorporated a new wholly owned subsidiary in the name of U.K. Terminals. 

Borosil: The company acquired an additional 0.75% stake in Goel Scientific Glass Works at a total consideration of Rs 14.39 lakh. The company’s shareholding in Goel Scientific has increased from 94.73% to 95.48%.

IPO Offerings 

EPACK Durable: The public issue was subscribed 0.77 times on day 1. The bids were led by retail investors (1.17 times), non-institutional investors (0.82 times) and institutional investors (0.01 times). 

Block Deals 

IndusInd Bank: BNP Paribas Arbitrage sold 25.5 lakh shares (0.32%); Goldman Sachs (Singapore) PTE ODI bought 25.5 lakh shares (0.32%) at Rs 1,560 apiece. 

Bulk Deals 

Liberty Shoes: Societe Generale bought 1.05 lakh shares (0.62%) at Rs 370.78 apiece

Insider Trades 

Wardwizard Innovations and Mobility: Promoter Wardwizard solutions India sold 21 lakh shares on Jan 17. 

Hi-Tech Pipes: Promoter Ajay Kumar and Sons sold 41.13 lakh shares on Jan. 15, 17 and Praveen Bansal sold 15 lakh shares on Jan 17. 

Pledge Share Details

Aurobindo Pharma: Promoter RPR Sons Advisors and P Suneela Rani (jointly holding) revoked pledge of 4 lakh shares on Jan. 18 and created a pledge of 2.5 lakh shares on Jan. 16, respectively.

Trading Tweaks 

Ex/record date dividend: MAS Financial Services. 

Moved into short-term ASM framework: Oracle Financial Services Software. 

Moved out of short-term ASM framework: Century Textiles and Industries, Dish TV India, J. Kumar Infraprojects, Olectra Greentech.

CLSA on PayTM: Upgrade to Buy on Company, raise target price at Rs 960/sh from Rs 925/sh (Positive) 

MOSL on Ultratech: Maintain Buy on Company, target price at Rs 12000/sh (Positive) 

Citi on Ultratech: Maintain Buy on Company, target price at Rs 11700/sh (Positive) 

CLSA on Phoenix Mills: Maintain outperform on Company, raise target price at Rs 2825/sh (Positive) 

Nomura on HUL: Maintain Buy on Company, target price at Rs 3105/sh (Neutral) 

CLSA on Reliance Ind: Maintain Buy on Company, target price at Rs 3060/sh (Neutral) 

Citi on Reliance Ind: Downgrade to Neutral on Company, raise target price at Rs 2910/sh (Neutral) 

CLSA on Supreme Ind: Maintain Sell on Company, raise target price at Rs 3500/sh (Neutral) 

CLSA on Macrotech: Maintain Sell on Company, raise target price at Rs 705/sh (Neutral) 

CLSA on Oberoi Realty: Maintain Sell on Company, raise target price at Rs 1230/sh (Neutral) 

CLSA on Godrej Prop: Maintain Sell on Company, raise target price at Rs 1827/sh (Neutral) 

CLSA on Prestige: Downgrade to Sell on Company, raise target price at Rs 1440/sh (Neutral) 

CLSA on Sobha: Downgrade to Sell on Company, raise target price at Rs 1315/sh (Neutral) 

CLSA on DLF: Downgrade to Sell on Company, raise target price at Rs 745/sh (Neutral) 

CLSA on Creditaccess: Downgrade to Outperform on Company, raise target price at Rs 1900/sh (Neutral) 

Jefferies on HUL: Maintain Hold on Company, cut target price at Rs 2750/sh (Neutral) 

JP Morgan on HUL: Maintain Overweight on Company, cut target price at Rs 2750/sh (Neutral) 

CLSA on HUL: Downgrade to Underperform on Company, cut target price at Rs 2637/sh (Negative) 

HSBC on HUL: Downgrade to Underperform on Company, cut target price at Rs 2350/sh (Negative) 

Citi on RBL Bank: Maintain Sell on Company, cut target price at Rs 257/sh (Negative) 

MS on RBL Bank: Maintain Underweight on Company, cut target price at Rs 250/sh (Negative)

Equity benchmarks BSE Sensex and NSE Nifty opened in green on Saturday. Both the indices gained around 0.4% each in early trade. 

20 January 2024 (Today)

Derivative Segment

• Can Fin Homes Ltd.

• ICICI Bank Ltd.

• IDFC First Bank Ltd.

• JK Cement Ltd.

• Kotak Mahindra Bank Ltd.

• Persistent Systems Ltd.

Cash Segment

• IDBI Bank Ltd.

• Rossari Biotech Ltd.

• Jammu & Kashmir Bank Ltd.

• Union Bank Of India

22 January 2024

Derivative Segment

• Coforge Ltd.

• Colgate-Palmolive Ltd.

• Oberoi Realty Ltd.

Cash Segment

• Lloyds Metals & Energy Ltd.

• Mangalore Refinery & Petrochem

• Tamilnad Mercantile Bank

• VST Industries Ltd.

• Zensar Technologies Ltd.

23 January 2024

Derivative Segment

• Axis Bank Ltd.

• Granules India Ltd.

• Havells India Ltd.

• Indus Towers Ltd.

• L&T Finance Holdings Ltd.

• Mahanagar Gas Ltd.

• Pidilite Industries Ltd.

• REC Ltd.

• United Spirits Ltd.

Cash Segment

• CG Power & Industrial Solns Ltd.

• Hitachi Energy India Ltd.

• Infibeam Avenues Ltd.

• JSW Energy Ltd.

• KEI Industries Ltd.

• Route Mobile Ltd.

• Sona BLW Precision Forgings

• Tanla Platforms Ltd.

• Tata Elxsi Ltd.

• Karnataka Bank Ltd.

24 January 2024

Derivative Segment

• Bajaj Auto Ltd.

• Balkrishna Industries Ltd.

• Birlasoft Ltd.

• Canara Bank

• Container Corp Of India Ltd.

• Dalmia Bharat Ltd.

• DLF Ltd.

• Exide Industries Ltd.

• Indian Oil Corporation Ltd.

• Laurus Labs Ltd.

• Tata Steel Ltd.

• Tech Mahindra Ltd.

• TVS Motor Company Ltd.

Cash Segment

• Aarti Drugs Ltd.

• Bharat Dynamics Ltd.

• Blue Dart Express Ltd.

• Ceat Ltd.

• Chalet Hotels Ltd.

• Indian Bank

• Indian Overseas Bank

• Laxmi Organic Industries Ltd.

• MAS Financial Services Ltd.

• Motilal Oswal Fin Services Ltd.

• PNB Housing Finance Ltd.

• POWERGRID InVIT.

• Rainbow Children’s Medicare Ltd.

• UCO Bank

• Ujjivan Small Finance Bank Ltd.

• Vardhman Textiles Ltd.

25 January 2024

Derivative Segment

• ACC Ltd.

• AU Small Finance Bank Ltd.

• Cholamandalam Inv & Fin Co Ltd.

• Cipla Ltd.

• Indian Energy Exchange Ltd.

• Indraprastha Gas Ltd.

• JSW Steel Ltd.

• SBI Cards & Pymt Serv

• SBI Life Ins Company Ltd.

• Shriram Finance Ltd.

• Syngene International Ltd.

Cash Segment

• Asahi India Glass Ltd.

• Cyient Ltd.

• Equitas Small Finance Bank

• India Grid Trust

• Intellect Design Arena Ltd.

• Maharashtra Scooters Ltd.

• Privi Speciality Chem Ltd.

• Sterlite Technologies Ltd.

27 January 2024

Derivative Segment

• Hindustan Petroleum Corp Ltd.

Cash Segment

• APL Apollo Tubes Ltd.

• Capri Global Capital Ltd.

• Craftsman Automation Ltd.

• Yes Bank Ltd.

29 January 2024

Derivative Segment

• Bajaj Finance Ltd.

• Bharat Electronics Ltd.

• Bharat Petroleum Corp Ltd.

• GAIL (India) Ltd.

• ITC Ltd.

• Marico Ltd.

• Petronet LNG Ltd.

Cash Segment

• Aditya Birla Sun Life AMC

• CSB Bank Ltd.

• Latent View Analytics Ltd.

• Nippon Life India AMC

• Nuvoco Vistas Corp Ltd.

• Tata Investment Corp Ltd.

• UTI AMC

30 January 2024

Derivative Segment

• Bajaj Finserv Ltd.

• Dr. Reddy’s Laboratories Ltd.

• Larsen & Toubro Ltd.

• M&M Financial Services Ltd.

• Voltas Ltd.

Cash Segment

• Apar Industries Ltd.

• Bajaj Holdings & Inv Ltd.

• Blue Star Ltd.

• Gillette India Ltd.

• Jubilant Ingrevia Ltd.

• Kaynes Technology India Ltd.

• KPIT Technologies Ltd.

• Piramal Pharma Ltd.

• SIS Ltd.

• Star Health & Allied Ins Co

• Vaibhav Global Ltd.

• ZF CV Ctrl Systems India Ltd.

31 January 2024

Derivative Segment

• Ambuja Cements Ltd.

• Bank Of Baroda

• Dabur India Ltd.

• Godrej Consumer Products Ltd.

• IDFC Ltd.

• Jubilant FoodWorks Ltd.

• Maruti Suzuki India Ltd.

• Shree Cement Ltd.

• Sun Pharma Industries Ltd.

Cash Segment

• Amara Raja Energy & Mobility 

• IRB Infrastructure Developers 

• Jyothy Labs Ltd.

• Kajaria Ceramics Ltd.

• Kalyan Jewellers India Ltd.

• Mankind Pharma Ltd.

• Motherson Sumi Wiring India 

• P&G Hygiene & Health Care Ltd.

• Swan Energy Ltd.

• Great Eastern Shipping Co Ltd.

• Westlife Foodworld Ltd

01 February 2024

Derivative Segment

• Aditya Birla Capital Ltd.

• Bata India Ltd.

• Mphasis Ltd.

• Titan Company Ltd.

Cash Segment

• Aether Industries Ltd.

• Aptus Value Housing Finance

• Castrol India Ltd.

• Deepak Fert & Petrochem Corp 

• Five-Star Business Finance Ltd.

• Gujarat Alkalies & Chem Ltd.

• HFCL Ltd.

• Raymond Ltd.

• Rites Ltd.

• Sumitomo Chemical India 

• Tube Investments of India 

• V-Guard Industries Ltd.

02 February 2024

Derivative Segment

• LIC Housing Finance Ltd.

• Torrent Pharma Ltd.

Cash Segment

• Alkyl Amines Chem Ltd.

• Bank Of India

• Bikaji Foods International 

• Mahindra Holidays & Resorts

• Mahindra Lifespace Dev Ltd.

• Medplus Health Services Ltd.

• Tata Motors Ltd. - DVR 

• Ujjivan Financial Services

03 February 2024

Derivative Segment

• State Bank Of India

Cash Segment

• Clean Science & Tech Ltd.

05 February 2024

Derivative Segment

Nil

Cash Segment

• Alembic Pharma Ltd.

• Avanti Feeds Ltd.

• Cholamandalam Fin Hldgs 

• Kansai Nerolac Paints Ltd.

• Orient Cement Ltd.

06 February 2024

Derivative Segment

• Godrej Properties Ltd.

• Max Fin Services Ltd.

• Navin Fluorine International

Cash Segment

• Computer Age Mgmt Services 

• Endurance Technologies Ltd.

• Gujarat State Fert & Chem Ltd.

• Procter & Gamble Health Ltd.

• Timken India Ltd.

• TTK Prestige Ltd.

07 February 2024

Derivative Segment

• Cummins India Ltd.

• Manappuram Finance Ltd.

• Nestle India Ltd.

• Tata Consumer Products Ltd.

Cash Segment

• Varroc Engineering Ltd.

08 February 2024

Derivative Segment

• Apollo Hospitals Enterprise

• Biocon Ltd.

• Escorts Kubota Ltd.

• Page Industries Ltd.

Cash Segment

• Esab India Ltd.

09 February 2024

Derivative Segment

• Tata Power Company Ltd.

Cash Segment

• Emami Ltd.

• Indigo Paints Ltd.

10 February 2024

Derivative Segment

• MCX Ltd.

12 February 2024

Derivative Segment

• Samvardhana Motherson Int

Cash Segment

• BASF India Ltd.

• Glaxosmithkline Pharm Ltd.

• Gujarat Pipavav Port Ltd.

• HEG Ltd.

• JM Financial Ltd.

• Lakshmi Machine Works Ltd.

• TCI Express Ltd.

13 February 2024

Derivative Segment

• Bosch Ltd.

• Hindalco Industries Ltd.

Cash Segment

• RHI Magnesita India Ltd.

14 February 2024

Derivative Segment

• Crompton Greaves Cons Ele

Cash Segment

• Gland Pharma Ltd.

20 February 2024

Derivative Segment

• ABB India Ltd.

23 February 2024

Derivative Segment

Nil

Cash Segment

• Rain Industries Ltd.

CMP: ₹4165 | Mcap: ₹529 bn | Accumulate 

Revenues increased by 6.0 per cent Y-o-Y to ₹24.4 billion versus 5.3 per cent below cons. Its overall volume increased by 14.2 per cent Y-o-Y to 158 kMT (versus Finolex down 10 per cent Y-o-Y) and realization decline by 6.4 per cent Y-o-Y. 

Gross margins expanded by 420 bps Y-o-Y to 33.0 per cent. (PLe: 31%) 

EBITDA grew by 25 per cent YoY to R3.8bn (PLe: Rs3.4bn, 13 per cent above) versus 1.5 per cent below cons. (est.: ₹3.8 billion). EBITDA margins expanded by 240 bps YoY to 15.5 per cent (PLe: 13.7% & Cons. est 14.9 per cent) 

EBITDA per Kg increased by 9 per cent Y-o-Y to ₹24/Kg (vs Finolex of ₹9.9/Kg for P&F segment) 

PBT grew by 29 per cent Y-o-Y to ₹3.2 billion (PLe: Rs2.7bn, 15.3% below) vs 3% above cons. est.: Rs3.0bn 

PAT grew by 29 per cent YoY to ₹2.56bn (PLe: ₹2.3 bn, 11.5 per cent above) versus 1 per cent below cons. est.: ₹2.6 bn 

Plastic Pipe segment reported a revenue of ₹16.4bn up 9 per cent YoY. EBIT stood at ₹2.4bn up 22% YoY with a margin of 15 per cent. Vol. up 17.2% YoY. 

Packaging Product segment reported a revenue of ₹3.5bn up 3 per cent YoY. EBIT stood at ₹590mn up 69 per cent YoY with a margin of 16.6 per cent. Vol. up 3.1 per cent YoY. 

Industrial Product segment reported a revenue of ₹3.3bn down 1 per cent YoY. EBIT stood at ₹42 mn down 6 per cent YoY with a margin of 12.7 per cent. Vol. up 9.8 per cent YoY. 

Consumer Product segment reported a revenue of ₹1.12bn down 3.2 per cent YoY. EBIT stood at ₹230mn down 2.4 per cent YoY with a margin of 20.9 per cent. Vol. down 2.6 per cent YoY 

The overall turnover of value-added products remains at ₹8.5bn in Q3FY24 as compared to ₹8.3bn in Q3FY23. 

The stock is currently trading at 39x/32x FY25/FY26 earnings.

Over 9,000 NBFCs are currently registered with the RBI. 

Even though the combined balance sheet size of NBFCs continues to be approximately one-fifth when compared with the Scheduled Commercial Banks (SCBs), NBFCs play a significant role in last-mile credit delivery. As of Q2FY24, aggregate credit extended by NBFCs grew by 20.8 per cent compared to SCBs growth of 19.4 per cent. 

NBFCs’ credit intensity measured by the credit/GDP ratio has been rising consistently, reaching a high in 2021.

Significantly, NBFCs’ credit as proportion to SCBs’ credit has also risen.

A shift in the segmental distribution of credit with a tilt towards retail can be observed.

• Asset quality has improved. Public sector NBFCs have reported a lower GNPA ratio compared to their private sector counterparts.

• Large NBFCs (NBFC-UL)1 registered higher credit growth (y-o-y) of 21.9% and a better GNPA ratio of 3.4 per cent as of September 2023 compared to the overall NBFC sector.

• In H1FY24, NBFCs and HFCs remained the major issuers of listed bonds during the year, while banks and body corporates were their major subscribers.

Jindal Steel and Power (JSP In, CMP ₹720, MCap ₹74,300 crore, BUY).

JSP announced the commissioning of 5.5mtpa Hot Strip Mill (HSM) at Angul which is expected to increase the proportion of Flat products to 55-60% from around 33% and reduce semis as well; aiding product mix and margin improvement over next two years.

The facility is capable of producing 1mm thick and 1680mm wide coils and is equipped with advanced features like Transfer bar cooling, edge heater, coil box, and heat shields, ensuring top-notch flatness, uniform mechanical properties, and production of high value-added grades.

This positions JSP to cater to various sectors including auto, construction, oil, downstream cold rolling, galvanizing, colour coating, etc. It was built in record 29 months.

In another development, its CFO Ramkumar Ramaswamy has resigned on personal reasons after 2 years of service. Sunil Agrawal, with 31 years of experience, will assume the CFO responsibilities temporarily.

View: Ramping up of HSM, commissioning of furnaces, opening of rest coal blocks, completing slurry pipeline are few of the triggers for JSP going ahead; which would drive earnings. The stock is currently trading at 6.7x/ 5.6x EV of FY25E/ FY26E EBITDA. Maintain BUY rating on the stock with a TP of ₹826 assigning an EV of 6x FY26E EBITDA.

“We can expect Budget 2024 to be quite comprehensive in nature. The policy perspective towards inclusive development, infrastructural expansion, digital payments, green projects and self-reliance will continue to get a push. Capital expenditure will continue to remain strong, with further allocations in the construction of roads and railways taking centre stage. Meanwhile, high hopes are pinned towards green hydrogen in the energy sector, as well as for championing the production of EVs in automotive. The agricultural sector can also expect sops in view of current climate and inflationary pressures, and the government may take steps to cut domestic prices and boost insurance. MSMEs and startups strive to keep the innovation spree running and boost momentum in manufacturing can bring in new financing routes and networking mechanisms for them”.

The subsidiary has been incorporated to carry on the business of construction, real estate and allied activities, per a regulatory filing.

“We expect the second largest private sector bank to come out with healthy numbers in Q3FY24 aided by solid loan book growth and robust retail franchise. Though there would be some NIM compression continuing in Q3FY24 due to the passing of the increased cost of funds, the absolute profitability would show a double-digit growth on an annual basis. We expect RoA to be in the range of 2.3-2.5% and RoE in the range of 15-18% annualized this quarter. However, the bank’s decision to deal with an unsecured loan book will be a key thing to watch out for this quarter. Though we expect the opex cost to remain at elevated levels due to the bank’s focus on branch expansion, the profitability of the bank seems to be intact. With the uptick seen in rural demand in Q3FY23, we anticipate the bank’s business growth to be in high teens and CASA remaining constant in the range of 40-42%. Furthermore, we do not see any deterioration in the bank’s asset quality due to its strong credit profiling and high dependence on granular asset book.

HUL 3Q24 – Volumes up 2%, expect gradual and delayed recovery

(CMP: ₹2565 | Hold)

Financial Performance

>Revenues declined by -0.3% YoY to Rs151.9bn (PLe:Rs149.2bn).

> Volumes grew by 2% led by Home care and BPC

>Gross margins expanded by 401bps YoY to 51.5% (PLe:52.5%).

>EBITDA grew by 0.1% YoY to Rs35.4bn (PLe:Rs35.8bn).

>A&P Expenses grew by 32.8% YoY to Rs15.9bn

>Adj PAT declined by -1.5% YoY to Rs25.4bn (PLe:Rs25.79bn).

>Home Care revenues declined by -1.3% YoY; EBIT declined by -9% YoY; while margins contracted by -150bps YoY to 17.7%.

>Personal Care revenues declined by -0.2% YoY; EBIT grew by 1.7% YoY; while margins expanded by 48bps YoY to 25.6%.

>Food & Refreshment revenues grew by 0.9% YoY; EBIT grew by 7.6% YoY; while margins expanded by 118bps YoY to 19%.

>Others revenues grew by 3.4% YoY; EBIT grew by 1.7% YoY; while margins contracted by -68bps YoY to 39.7%

Business Performance

>Home Care: Low single digit revenue de-growth for the division with mid-single digit volume growth in detergents and dishwash.

>Beauty & Personal Care: Flat revenue growth & mid-single volume growth for the division. Oral and color cosmetics did well, however delayed winter impacted skin care.

>Foods & Refreshment: Low single digit revenue growth with low single digit decline in volumes. Tea faced consumer downtrading, Coffee grew in double-digits driven by pricing, HFD delivered modest price-led growth and Foods and Ice Cream both grew in mid-single digit on a high base.

Zydus Lifesciences recently has entered into a deal with Synthon BV for commercialization of gIbrance (palbocicilib for breast cancer) in the US. Synthon is the sole first-to-file (FTF) for gIbrance; Zydus/Synthon will enjoy 180-day sole exclusivity. We estimate this a ~USD 350mn revenue and ~USD100mn PBT opportunity in FY28E. The development highlights the possibility of large unforeseen growth levers in the US generics business. We expect more such opportunities to crop up, as the longest patent cliff unfolds over the next 4-5 years. The company is the best placed among our coverage universe to take advantage of this phenomenon.

IREDA is fully owned by the Government of India (GoI) and is of strategic importance for the promotion and development of the RE sector in India. Given its sovereign ownership, the lender’s average cost of funds remains stable and we thus expect NIMs to remain stable in Q3FY23. Additionally, due to its various co-financing deals and good financial flexibility, the finance arm will be able to mobilize funds at competitive rates. With asset quality in place, we anticipate the bottom line to grow at a faster pace due to increased consumption in the energy sector which will ensure new capex plans in the power sector going forward. Thus, we believe the company’s top line would report a healthy growth in Q3FY24.

Mahindra & Mahindra Financial Services’ shareholders have approved insertion of a clause in the Memorandum of Association, authorising the Company to solicit, procure and carry on the business of selling, distribution, advertising, marketing of all kinds of insurance products/ services including life insurance, health insurance, general insurance on behalf of various insurance companies as a Corporate Agent.

Domestic markets are likely to open flat and remain listless today. The focus will be on big ticket banking and finance companies such as ICICI Bank, Kotak Mahindra Bank, Can Fin Homes, IDBI, IDFC First Bank and IREDA.

Participation from global investors will be low and even domestic investors will be in a holiday mood, said analysts.

As the US stocks overnight closed sharply higher, analysts expect domestic market to see a positive opening. 

Vinod Nair, Head of Research, Geojit Financial Services, said that subdued performance was reflected in the market amidst weakening global cues and elevated domestic valuations in mid- and small caps, eroding investor confidence. 

“Strong US retail sales and rising US bond yields diminish expectations of a swift Fed rate cut, redirecting investor focus to safer bonds,” he said.

Agri-input manufacturer Nova Agritech Ltd on Friday raised ₹43.14 crore from anchor investors, as part of IPO fundraising exercise.

The IPO is open to public on Monday and closes on Wednesday, The price band for the offer has been fixed as ₹39-41.

The company informed the bourses that it allocated about 1.05 crore shares at ₹41 a share on to anchor investors, who included foreign and domestic institutions

One97 Communications, which owns the brand Paytm, on Friday, reported a consolidated net loss of ₹ 222 crore for the third quarter ended December 31,2023. This loss was 43 percent lower than the net loss of ₹392 crore in same quarter last fiscal.

In the September 2023 quarter, Paytm had recorded a net loss of ₹ 292 crore. 

For the nine months ended December 31, 2023, consolidated net loss came in at ₹ 872 crore, nearly half the net loss of ₹ 1,609 crore. Consolidated revenues were up 36 per cent to ₹ 7,711 crore (₹ 5,658 crore).

Prabhudas Lilladher expect stunted growth in medium term given that near peak EBIDTA margins; likelihood of price cuts (1.3 per cent in Q3-24); Q4-24 entry of Grasim in decorative paints.

RBL Bank posted a net profit of ₹233 crore for Q3 FY24, higher than ₹209 crore a year ago but lower than ₹294 crore in the previous quarter.

However, the bottom line was hit due to a one-time contingency provision of ₹115 crore which the bank took on its AIF investments. Barring this, profit after tax for the quarter was ₹319 crore, up 53 per cent on year and 9 per cent on quarter.

The net profit of Reliance Jio rose 12.2 per cent to ₹5,208 crore in the December quarter of 2023, from ₹4,638 crore reported in the same period last year.

Revenue from operations, meanwhile, rose 10.3 per cent to ₹25,368 crore for the quarter, versus ₹22,998-crore revenue reported last year. According to Reliance, nearly 90 million subscribers have migrated to Reliance’s 5G network. Therefore, Reliance’s 5G network carries one-fourth of its total mobility data.

Jindal Steel & Power Ltd, on Friday, announced the commissioning of its 6 million tonnes per annum (MTPA) hot strip mill at its steel manufacturing facility at Angul in Odisha.

The inauguration of the hot strip mill is pivotal for the company’s foray into the flat products market.

The mill was commissioned in a record time of 29 months, the company said in a statement, and the hot strip mill produced the first set of coils on January 10. The coils were dispatched on January 15.

In a bid to gain market share in the premium tyre segment, CEAT Ltd has launched a range of premium steel radial tyres which will be sold direct to consumers.

The steel radial tyres that were earlier only manufactured and sold to Original Equipment Manufacturers (OEM) will now be available for aftermarket.

Reliance Industries’ consolidated net profit rose 9.3 per cent and revenue grew by a mere 3.5 per cent in the October-December quarter, weighed down by higher expenses and its oils-to-chemicals business.

The conglomerate reported a net profit of ₹17,265 crore, while its revenue was at ₹2.28-lakh crore in Q3 FY24.

Latest interviews-

Aster DM Health: Azad Moopen, Chairman

Olympus Could Exit With Another PE Entering: Aster DM Healthcare

https://www.youtube.com/watch?v=1x9FA-LuGYA

Epack Durable: Ajay DD Singhania, MD & CEO

Will Increase Capacity By 2.4 M Units By FY27, Committed ?300 Cr Towards PLI Scheme: Epack Durable

https://www.youtube.com/watch?v=uc7HJqyajjA

Finolex Ind: Ajit Venkataraman, CEO

Finolex Industries: Volume Guidance Intact? ‘Agri Segment Volume Been Lukewarm,’ Ajit Venkataraman

https://www.youtube.com/watch?v=ExQuPRSHW84

Home First Fina: Manoj Viswanathan., CEO

HomeFirst Finance Reports Stable Q3; Sustainable Credit Aid PAT

https://www.youtube.com/watch?v=ggacufGEQKI

IndiaMART InterMESH : Dinesh Agarwal, Founder & MD

Q4 Margin Will Be Lower Due To Higher Collections And Costs: Indiamart

https://www.youtube.com/watch?v=_WS2T44bnA8

Jindal Stainles: Anurag Mantri, Group CFO

Export Demand Has Not Picked Up And Red Sea Conflict Is Impacting Us: Jindal Stainless

https://www.youtube.com/watch?v=9keqPf_Y1Ls

*Metro Brands: Nissan Joseph, *

Not Seeing Any Economic Indications Of Consumer Demand Softening: Metro Brands

https://www.youtube.com/watch?v=S3cQdrT7Dcc

Poonawalla Fincorp: Abhay Bhutada, MD

Have Not Seen Any Impact On Cost Of Funds Despite RBI Regulations & Int Rate Hikes: Poonawalla

https://www.youtube.com/watch?v=nxLnzEjMjiA

Poonawalla Fincorp: Abhay Bhutada, MD

Poonawalla Fincorp Q3: Highest Ever Quarterly Disbursements & Profit

https://www.youtube.com/watch?v=8SGSjgoWk9U

RamkrishnaForge: Naresh Jalan, MD

FY24 Volume Expected To Be At 1.45 Lk Tonnes: Ramkrishna Forgings

https://www.youtube.com/watch?v=NNc8taDNbX4

Events today…

https://www.researchbytes.com/Default.aspx?cc=event

Results today…

https://www.researchbytes.com/Default.aspx?cc=result

TechnipFMC plc (Pre market) (Sector- Energy)

Brown & Brown, Inc. (Post market) (Sector- Financial)

Logitech International S.A. (Post market) (Sector - Manufacturing)

United Airlines Holdings, Inc. (Post market) (Sector – Aviation)

Independent Bank Group Inc. (Post market) (Sector – Financial)

Agilysys, Inc. (Post market) (Sector – Technology)

Enterprise Financial Services Corporation (Post market) (Sector – Financial)

United Microelectronics Corporation (Tentative) (Sector – Manufacturing)

• ABFRL

• BALRAMCHIN

• DELTACORP

• HINDCOPPER

• IEX

• NATIONALUM

• OFSS

• POLYCAB

• RBLBANK

• SAIL

• ZEEL

The S&P 500 posted a record high close on Friday for the first time in two years, fuelled by a rally in chipmakers and other heavyweight technology stocks on optimism around artificial intelligence.

The benchmark’s close confirmed that the S&P 500 has been in a bull market since it closed at its low on Oct. 12, 2022, according to one measure which also puts that date as the end of a bear market.

In a selloff between its record high close of 4,796.56 on Jan. 3, 2022 and its low in October 2022, the S&P 500 tumbled 25%.

On Friday, the S&P 500 jumped 1.23% to end the session at 4,839.81 points.

Indian stocks will trade in a full session on Saturday, and remain shut on Monday due to a public holiday in Maharashtra. The blue-chip Nifty 50 index settled 0.75% higher at 21,622.40 on Friday, while the S&P BSE Sensex closed 0.70% higher at 71,683.23. After Saturday’s session, regular market trading will resume on Jan. 23, Tuesday.