Share Market Highlights May 28, 2024: Sensex sheds 220 pts, Nifty closes below 22,900

​Sumitomo Chemical India Ltd​ on Monday reported a ​52 per cent increase in its consolidate net profit to ₹109.89 crore ​in the quarter ended March.

Its net profit stood at ₹72.12 crore in the year-ago period.

Total income rose to ₹700.90 crore in the fourth quarter of the last fiscal from ₹668.05 crore in the corresponding period of the preceding year, according to a regulatory filing.

The company’s share gained 1.85% to close at ₹​ 448.90 on the BSE on Tuesday.​

The Indian market exhibited mild consolidation post the recent sharp surge. The uncertainty-led volatility is likely to continue as the market approaches the election outcome. Conversely, the underlying earnings growth for the March quarter results so far was largely above expectations, which would likely support the valuation, which is currently moderately above the long-term average. Mid- & small-caps underperformed today, while defensive sectors like Pharma and FMCG were optimistic

It was a subdued session as expected, with the Nifty fluctuating within a narrow range and closing slightly lower. Most sectors experienced pressure, with realty and energy being the top losers. The broader indices followed a similar pattern, with both mid-cap and small-cap indices losing nearly a percent each.

Indications suggest that the ongoing consolidation will persist, keeping the Nifty within the 22,700-23,100 range. Given the overall bullish trend, traders should use dips toward the lower end of this range to accumulate quality large-cap and large mid-cap stocks. Sector-wise, traders should closely monitor IT and FMCG for cues, as other sectors have already performed well.

The Indian rupee ended slightly weaker on Tuesday as dollar demand from local corporates pressured the currency even as the greenback slipped, which helped lift most Asian currencies.

The rupee closed at 83.1775 against the US dollar, compared with its previous close at 83.13.

The dollar index slipped below the 104.5 mark, extending its losses from Monday, while most Asian currencies ticked up, with the Korean won up 0.4 per cent and leading gains.

Dr Reddy’s Laboratories’ wholly-owned subsidiary of the Company, namely, Aurigene Oncology Limited (formerly, Aurigene Aurigene Discovery Technologies Limited) has received an order from GST Authority towards tax demand including interest and penalty.

The above order levies a penalty of ₹1,89,77,928.

Dr. Reddy’s Laboratories stock closed at ₹5,949.85 on the NSE, up 1.31%.

Top gainers on the NSE:

Divi’s Lab (3.05%), SBI Life (2.96%), HDFC Life (2.44%), Hero Motocorp (1.99%), Grasim Industries (1.86%) 

Top losers:

Adani Ports (-2.17%), Power Grid (-1.64%), BPCL (-1.59%), Coal India (-1.53%), Adani Enterprises (-1.52%)

India’s equity benchmarks BSE Sensex and NSE Nifty closed in the red on Tuesday. While the Sensex lost 220.05 points, or 0.29%, to end at 75,170.45, the broader Nifty50 closed at 22,888.15, down by 44.30 points, or 0.19%, show provisional data on the exchanges. 

Sterlite Technologies Ltd announced that it was selected by the UK-based Connexin to help deliver gigabit broadband connectivity in Nottinghamshire. This partnership is part of a £58 million government contract awarded to Connexin under Project Gigabit, aimed at bringing ultrafast broadband to rural areas. 

Sterlite Technologies shares were down by 0.74% to ₹126.80 at 3.20 pm on the BSE . 

J Kumar Infraprojects reported its consolidated net profit for the quarter ended March 2024 at ₹99.67 crore as against ₹73.86 crore in the corresponding quarter last year.

Stock rises 2.78% on the NSE, trading at ₹682.15.

Imagicaaworld Entertainment board has approved raising up to ₹600 crore via QIP.

Stock trades at ₹81.85 on the NSE, lower by 3.02%.

ZF Steering Gear (India) informed Dr. Rathina Singaravelan - G – Vice-President (Projects) - has resigned, due to personal reasons, with effect from the close of business hours on May 28, 2024.

Shalby board has approved to operationalise the B2B supply chain business Hosply, through offline as well as online platform. The business will involve surgical supplies to hospitals.

The company’s board has recommended final dividend of ₹1.20 per equity share of the face value of ₹ 10 each fully paid‐up (i.e. 12%), for the financial year ended March 31, 2024

Company reported its consolidated net profit for the quarter ended March 2024 at ₹16 crore as against net profit of ₹13.8 crore in the corresponding quarter last year. 

Stock trades at ₹266.95 on the NSE, lower by 4.61%.

Top gainers:

Divi’s Lab (3.15%), SBI Life (2.84%), HDFC Life (2.45%), Grasim Industries (2.26%), Hero Motocorp (2.13%)

Top losers:

Adani Ports (-2.03%), Power Grid (-1.49%), Coal India (-1.39%), BPCL (-1.30%), Adani Enterprises (-1.25%)

Stocks advanced on BSE at 3 pm on May 28, 2024, were 1,270 against 2,530 stocks that declined; 108 stocks remain unchanged. Total stocks traded were 3,908. The number of stocks that recorded a 52-week high was 173, and those that hit a 52-week low was 37. 

In addition, 228 stocks traded in upper circuit, while 279 hit the lower circuit.

​TTK Prestige Limited​ has informed the exchange regarding appointment of Venkatesh Vijayaraghavan as Managing Director of the company w.e.f. October 01, 2024.

RITES reported its consolidated net profit for the quarter ended March 2024 at ₹136.67 crore as against ₹138.89 crore in the corresponding quarter last year.

Company’s board has recommended final dividend of ₹5 per equity share.

Stock trades at ₹709.95 on the NSE, down by 3.22%.

Ramco Industries reported its consolidated net profit for the quarter ended March 2024 at ₹43.81 crore as against ₹58.43 crore as against the corresponding quarter last year. 

Stock trades at ₹235.70 on the NSE, down by 0.63%.

Coal India has announced the incorporation of a subsidiary company Bharat Coal Gasification and Chemicals Limited.

Stock trades at ₹487.45 on the NSE, down by 1.42%.

Bank credit growth is expected to moderate 200 basis points (100 basis points is equal to 1 percentage point) to 14 per cent this year after an estimated robust growth of 16 per cent last financial year, according to Crisil Ratings.

Strong economic activity and retail credit demand drove loan growth last year.

This year, the growth is expected to be tempered by a high base effect, a revision in risk weights and a somewhat lower gross domestic product (GDP) growth, asserted Crisil.

ANI

TARC posted a consolidated net loss of ₹51.73 crore for the quarter ended March on lower income as against the net profit of ₹1.56 crore in the year-ago period. (PTI)

Stock trades at ₹173 on the NSE, lower by 2.45%.

Rail Vikas Nigam Limited has emerged as the Lowest Bidder (L1) from North Central Railway for provision of EI-based Automatic Signaling with continuous track circuiting and other Associated works along with suitable indoor alterations in Electronic interlocking /RRI/PI stations enroute in Dhaulpur-Gwalior Section of Jhansi division of North Central Railway. 

Contract is valued at ₹72.73 crore. 

RVNL stock declines 1.37% on the NSE, trading at ₹371.85.

IIFL Finance stock rose 2.13% on the BSE, trading at ₹406.90. The company had informed that finalisation of March quarter results will be extended beyond May 30 due to engagement in the special audit being carried out by the RBI.

Adani Energy Solutions stock falls 1.29% on the NSE, trading at ₹1,090.10. The company had approved a proposal to raise up to ₹12,500 crore through issue of equity shares on qualified institutional placement basis or other modes

UltraTech Cement stock trades at ₹10,191.75 on the NSE, down by 0.33%. The company had made an offer to acquire a 31.6% stake in UAE-based RAK Cement Co for White Cement and Construction Materials PSC (RAKWCT).

TTK Prestige board has recommended a dividend of ₹6 per share i.e. 600% for the financial year 2023-24.

Stock trades at ₹704.80 on the NSE, up 0.04%.

DreamFolks Services reported its consolidated net profit for the quarter ended March 2024 at ₹17.9 ccrore as against ₹25.2 crore in the corresponding quarter last year.

Stock declined by 3.30% on the NSE, trading at ₹489.95.

Deccan Cements reported its net profit for the quarter ended March 2024 at ₹300.64 crore as against ₹989.51 crore in the corresponding quarter last year.

Stock trades at ₹596 on the NSE, down by 2.13%.

Thejo Engineering reported its consolidated net profit for the quarter ended March 2024 at ₹13.44 crore as against ₹4.91 crore in the corresponding quarter last year. 

Stock declines 1.64% on the NSE, trading at ₹2,765.

Power Grid Corporation of India informed that the project of Jamnagar Oil Refinery of Reliance Industries Limited (RIL) to connect with Jam Khambhaliya ISTS PS has been commissioned.

Power Grid Corporation stock trades at ₹314.65 on the NSE, down by 1.04%.

Vikram has over 25 years of experience in wealth management, broking, asset management, consulting, and technology. This positions him as a strategic leader capable of driving further operational excellence and innovation at InCred Capital, the InCred group business focused on wealth management, asset management, investment banking and equities. 

Vikram will spearhead critical functions at InCred Capital, including technology, operations, client servicing, compliance, and risk management. 

Vikram’s last role was with Julius Baer India, where he served as COO and CRO, and was also a board member.

Arvind (4.83%), Muthoot Finance (2.58%), Divi’s Lab (2.58%), Sundaram Finance Holdings (1.61%), Marico (1.38%

Cheviot Company’s board has approved buy-back of up to 1,75,000 ordinary shares of Cheviot Company at a price of ₹ 1,800 per ordinary share, payable in cash, for an aggregate amount not exceeding ₹31.50 crore.

Cheviot Company stock rises 1.01% on the NSE, trading at ₹1,503.65.

Westlife Foodworld informed that its subsidiary’s (i.e. Hardcastle Restaurants Private Limited’s) McDonald’s restaurant situated at Sola Science City, Ahmedabad, has received a penalty notice from the Ahmedabad Municipal Corporation, Solid Waste Management department.

Westlife Foodworld stock trades at ₹854.95 on the NSE, down by 0.82%.

Conceptualised 12 years ago, India’s first Multimodal Logistics Park at Mappedu near Chennai will see the limelight as Reliance Industries starts construction in June, according to multiple sources. In 2022, the company beat Adani Group to win the bid for the Rs 1,424 crore project on 184.27 acres of land in Tiruvallur district.

The project aims to facilitate efficient, cost-effective and value-added logistics services such as cargo aggregation and disaggregation, distribution, intermodal transfer, sorting, packing, and repacking. However, it did not take off due to the poor response from the private sector on issues like connectivity.

Escorts Kubota announced that Taxation Tribunal, West Bengal, passed an order quashing the demand of ₹2.50 crore for the financial year 2015-16 and remanded the matter back to the assessing authority for passing fresh order.

Stock trades flat at ₹3,850.65 on the NSE.

The US stock market is finally as fast as it was about a hundred years ago.

That was the last time share trades in New York settled in a single day, as they will starting Tuesday under new Securities and Exchange Commission rules. The change, halving the time it takes to complete every transaction, also occurred in jurisdictions including Canada and Mexico on Monday.

The switch to the system known as T+1, abandoned in the earlier era as volumes became unwieldy, is ultimately intended to reduce risk in the financial system. Yet there are worries about potential teething issues, including that international investors may struggle to source dollars on time, global funds will move at different speeds to their assets, and everyone will have less time to fix errors.

IDBI Bank has been imposed a penalty of ₹1.21 crore by Excise & Taxation Officer, Chandigarh.

IDBI Bank stock trades at ₹87.50 on the NSE, down by 2.40%.

Major gainers:

Divi’s Lab (2.57%), HDFC Life (2.05%), Dr Reddy’s Lab (1.59%), Hero Motocorp (1.55%), SBI Life (1.44%)

Major losers:

Adani Ports (-1.75%), Power Grid (-1.32%), Coal India (-1.21%), BPCL (-1.08%), NTPC (-0.97%)

Stocks advanced on BSE at 12 noon on May 28, 2024, were 1,317 against 2,352 stocks that declined; 116 stocks remain unchanged. Total stocks traded were 3,785. The number of stocks that recorded a 52-week high was 155, and those that hit a 52-week low was 29. 

In addition, 193 stocks traded in upper circuit, while 233 hit the lower circuit.

NMDC Ltd informed that the prices of iron ore has been fixed as under:- 

i) Lump Ore (65.5%, 10-40mm) @ ₹6,450 per tonne 

ii) Fines (64%,-10mm) @ ₹5,610 per tonne. 

NMDC stock trades at ₹260.20 on the NSE, down by 0.91%.

Ajooni Biotech has leased a 75,000 sq. yards land in Bikaner, Rajasthan for plantation of Moringa. 

Ajooni Biotech stock trades at ₹6.20 on the NSE, up 1.64%.

Top losers of Nifty PSU bank stocks:

IOB (-4.30%), PSB (-3.73%), UCO Bank(-3.69%), Indian Bank (-3.07%)

Intellect Design Arena Ltd has announced the launch of the Canada eMACH.ai Cloud for Banks and Credit Unions. 

Intellect Design Arena stock trades at ₹896.20 on the NSE, down by 0.14%.

Tata Consultancy Services has entered a partnership with the Indian Institute of Technology, Bombay (IIT-Bombay), to develop India’s first Quantum Diamond Microchip Imager. 

TCS stock trades at ₹3,865.10 on the NSE, up 0.47%

Top gainers on the BSE at 11.05 am:

Hatsun (11.03%), Sumitomo Chemicals (8.12%), Garware (7.13%), Arvind (6.84%), Vijaya Diagnostic (6.83%)

Top losers:

Inox Wind (-10%), Elgi Equipments (-5.66%), BDL (-5.55%), SDBL(-5.34%), Schneider (-4.99%)

Bank Nifty Index is managing to hold higher. The index is currently trading at 49,320, up 0.08 per cent for the day. The advances/declines ratio is at 6:6. This indicates indecisiveness in the market. That leaves the chances equal for the Bank Nifty index to go either way from here.

Bharat Heavy Electricals Limited (BHEL) has entered into a Technology Transfer Agreement (TTA) with Bhabha Atomic Research Centre (BARC) for 50 kW alkaline electrolyser system for Hydrogen production.

BHEL stock trades at ₹296.40 on the NSE, down by 0.72%.

Mcap: Rs103.8bn; CMP: Rs1102; TP: Rs1160; Upside: 6%: Rating: ACCUMULATE

~ We revise our TP upwards to Rs1,160 (previously Rs1,100) and move to Accumulate rating on Happy Forgings Ltd. (HFL) due to limited upside. 

~ Increase in TP is due to increase in multiple to 32x (previously 30x) attributed to promising execution on diversification and rising machining content. 

~ Despite the CV and farm equipment industry’s weakened prospects, HFL is poised for outperformance, driven by its ongoing customer acquisition efforts, successful initiatives in penetrating the PV industry, expansion into components for the rapidly growing wind turbine and oil & gas sectors. 

~ We remain positive on HFL due to tight control on fixed costs and highest machining content driving robust margins, impressive return ratios despite equity raises and capex, a net cash balance sheet, and robust growth prospects. 

Detailed report

Disclaimer

Crompton Greaves Consumer Electricals has launched RIGEL under the category of 10W PC Bulkhead.

Stock trades at ₹384.25 on the NSE, down by 1.06%.

SpiceJet has refuted claims made by KAL Airways and Kalanithi Maran regarding seeking damages of ₹1323 crore.

Stock trades at ₹57.80 in the BSE, down by 0.81%.

Nazara Technologies stock surged 4.32% on the NSE trading at ₹701.60 after Mitter Infotech LLP, a promoter of Nazara Technologies, sold 6.38% of the issued share capital to Plutus Wealth Management LLP.

The rupee appreciated by 3 paise to 83.10 against the US dollar on Tuesday, tracking a positive trend in domestic equities and weakness of the American currency in the overseas market.

Forex traders rupee is likely to trade with a positive bias tracking a positive trend in domestic equities and expectations of fresh foreign inflows, however, a recovery in crude oil prices may cap a sharp upside.

Anand James, Chief Market Strategist,Geojit Financial Services. 

Upsides were challenged in the second half, but the turn lower is not expected to evolve into a collapse today. Expect bargain buying to re-emerge as long as above 22870/800, but upswings are also not expected to gain momentum, as long as 23035 stays intact. We have thus entered a consolidation band, with low prospects of a directional move even if the 22800-23035 range gives away.

VA TECH WABAG has secured an order worth around 85 crore from Nama Water Services in the Sultanate of Oman towards Operation & Maintenance (O&M) of the Al Duqm Desalination Plant for a period of 5 years. 

Stock trades at ₹964.30 on the NSE, down by 0.24%.

Cupid Trades And Finance Ltd, under an MoU between Company and the Bukhara City of Uzbekistan, has now set up a 100% wholly-owned subsidiary, Cupid breweries and Distilleries LLC FE in the Bukhara City of Uzbekistan.

Wipro collaborates with the Centre for Brain Research at IISc to Pioneer AI-Driven health behavior innovations

Stock inches up 0.78% on the NSE, trading at ₹456.

Nucleus Software has announced the appointment of Swati Patwardhan as its new Chief Human Resources Officer (CHRO)

Major gainers on the NSE at 9.30 am:

Hindalco (2.68%), Divi’s Lab (1.38%), Dr Reddy’s Lab (1.08%), Tata Steel (0.85%), Wipro(0.75%)

Major losers:

Tech Mahindra (-0.71%), Adani Ports (-0.52%), Eicher Motors (-0.34%), ITC (-0.31%), Bharti Airtel (-0.29%)

Crude oil futures traded higher on Tuesday morning as the market waits to see if the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will extend oil production output cuts beyond June 30. At 9.14 am on Tuesday, August Brent oil futures were at $83.08, up by 0.24 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $78.91, up by 0.46 per cent. June crude oil futures were trading at ₹6566 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday morning against the previous close of ₹6547, up by 0.29 per cent, and July futures were trading at ₹6552 against the previous close of ₹6532, up by 0.31 per cent.

The Indian benchmark indices, Sensex and Nifty, opened marginally higher on Tuesday, following gains in Asian markets. Investor attention is on Life Insurance Corp of India (LIC) after the company’s quarterly earnings report. At 9:17 a.m., the 30-share BSE Sensex rose by 127.53 points to 75,518.03, while the NSE Nifty climbed 47.10 points to 22,979.55.

MSCI’s broadest index of Asia-Pacific shares outside Japan increased by 0.4% on Tuesday.

Indian equity benchmarks achieved record highs for three consecutive sessions through Monday, although volatility remains high ahead of the general election results on June 4. The Nifty volatility index reached its highest level in nearly two years on Monday.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, mentioned, “Sensex reached a historic 76,000 milestone, while GIFT Nifty is at 23,022, down 10 points. Nifty is expected to continue its upward trend, though key events like the exit poll results, GDP data, and May F&O expiry could influence the market. Positive monsoon forecasts are likely to support agricultural output and economic growth.”

Investors are closely monitoring LIC after it reported a drop in its new business margin in the fourth quarter due to weakness in its group business, although the company’s profit saw a slight increase.

Foreign investors were net sellers on Monday, offloading shares worth Rs 541 crore, while domestic institutional investors bought stocks worth Rs 923 crore.

Goldman Sachs raised its global oil demand forecast for 2030 on Monday and expects consumption to peak by 2034 on a potential slowdown in electric vehicle (EV) adoption, keeping refineries running at higher-than-average rates till the end of this decade.

The research division of the bank raised its 2030 crude oil demand forecast to 10.85 crore barrels per day (bpd) from 10.6 crore bpd and expects demand to peak at 11 crore bpd in 2034, followed by a long plateau till 2040, analysts led by Nikhil Bhandari said in a report.

Poonawalla Fincorp Limited, in collaboration with IndusInd Bank has today launched the co-branded ‘IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card’, a card designed to redefine and elevate the banking experience of customers.

Poonawalla Fincorp stock trades at ₹445.45 on the NSE, down by 0.80%. IndusInd trades at ₹1,464.50 on the NSE, down by 0.04%.

“Sensex reached a historic 76,000 milestone, while GIFT Nifty is at 23,022, down 10 points. Nifty is expected to continue its upward trend, though key events like the exit poll results, GDP data, and May F&O expiry could influence the market. Positive monsoon forecasts are likely to support agricultural output and economic growth. For trading, buy Nifty on dips between 22,800-22,850 with targets at 23,100/23,351 and Bank Nifty at CMP with targets at 49,600/50,000. Bullish stocks include Maruti, Bank of Baroda, and HDFC AMC, with a specific buy recommendation for HDFC AMC at CMP 3913, targeting 4,051/4,203.”

GS on Auro Pharma: Maintain Buy on Company, raise target price at Rs 1325/Sh (Positive)

BofA on Auro Pharma: Maintain Buy on Company, raise target price at Rs 1370/Sh (Positive) 

MOSL on Canara Bank: Maintain Buy on Bank, raise target price at Rs 130/Sh (Positive) 

MOSL on Cello World: Maintain Buy on Company, target price at Rs 1090/Sh (Positive) 

CLSA on IRB Infra: Maintain Buy on Company, target price at Rs 81/Sh (Positive) 

CLSA on Auro Pharma: Downgrade to Outperform on Company, target price at Rs 1320/Sh (Neutral) 

JP Morgan on United Spirits: Maintain Neutral on Company, cut target price at Rs 1150/Sh (Neutral) 

Jefferies on JK Lakshmi: Maintain Hold on Company, target price at Rs 905/Sh (Neutral) 

UBS on Bosch: Maintain Sell on Company, raise target price at Rs 20000/Sh (Neutral) 

MOSL on Happy Forging: Maintain Buy on Company, target price at Rs 1260/Sh (Neutral) 

CLSA on Nazara Tech: Maintain Sell on Company, cut target price at Rs 525/Sh (Negative) 

Jefferies on Nazara Tech: Maintain Hold on Company, cut target price at Rs 650/Sh (Negative)

Issue Period:- 28- May-24 to 29- May-24

For Non- Retail ( QIB +HNI ) open & close date - 28-May -24 (Today) 

For Retail open & close date – 29 –May-24 

Floor Price: INR “855” 

Closing Price on date of announcement: Rs.945.70\u0009 

Current Market Price: 945.70 

Base Issue size: 0.1286 Crs Shares – 2.44% of O/S Capital 

Green Shoe Issue size: 0.1286 Crs Shares – 2.44% of O/S Capital 

Total Issue Size: 0.2573 Crs equity shares (INR 220 Cr) – 4.88% of O/s Capital 

Non-Retail Portion (QIB + HNI) - 90% of Offer Size - Bidding on 28-May -24(Today) 

Total Issue Size: 0.2315 Crs shares (INR 197.96 Cr) 

Retail Portion - 10% of Offer Size - Bidding on 29 May, 2024 

Total Issue Size: 0.025 Crs equity shares (INR 22 Cr)

TP raised to Rs140 from Rs130

Earnings growth to sustain at 15%-18% 

Bank has corporate pipeline of Rs52000cr of which Rs22000cr has been sanctioned 

Bank expects ~10%-12% credit growth in FY25 

Focus remains on improving mix of CASA & retail deposits 

NIM to remain rangebound 

RBI draft circular on project finance to have a limited impact 

Project finance loans is at Rs60000cr 

Total provisioning impact of Rs1200-1300cr if guidelines are stringently followed 

90% of the burden will be transferred to borrowers 

Recoveries and upgrades will continue to outpace slippages 

Bank aims to recover minimum Rs4000cr from Rs65000-75000cr in two pools 

Mgt suggested for credit cost of ~1.1% 

The bank expects ~8-10% operating profit growth and 15-18% net profit growth. 

We estimate return ratios to remain steady with RoA improving to 1.1% by FY26E, supported by 12% CAGR in loan growth

Buy Call, Target Rs 1,295 

Co Reported Overall ROEV Of 25% In FY24, Significantly Lower Than Our Assumption 

Core EV For FY23 Was Rs 2.8 Lk Cr 

It Is Difficult To Comprehend Movement Between MTM & Core EV For FY24 & Await Further Clarity

CLSA on Nazara Tech

Sell Call, Target Cut To Rs 525 

Q4 Below Estimate, Subscriber Loss In Kiddopia; Ad Tech Revenue Fall 

Slowdown In e-Sports; Nodwin Revenue Decline 

Cut CL25/26 Revenue & EBITDA By 6-13% 

Stock Expensive At 39x CL25 PE 

Promoters’ Ownership Down To Low 10% 

Jefferies on Nazara Tech

Hold Call, Target Cut To Rs 650 

Q4 An All Round Miss Due To Continued Weakness In Kiddopia, Datawrkz & RMG Segments 

Cut FY25/26 Estimates By 18-21% 

Co Plans To Accelerate M&A Given Hefty Cash Balance 

Pick-up In Organic Growth Will Be Key For Re-rating 

Expect Co To Deliver 10%/27% Rev/EBITDA CAGR Over FY24-27

Co confident of double-digit vol growth in P&A segment for FY25

Growth could be soft in 1HFY25, but expected to pick up in 2HFY25 

Popular segment should grow at 1-2% in vol 

Margin expansion to be moderated with target to achieve mid-teens margin in FY25 

Macquarie on USL

U-P, TP Rs 1000 

Despite subdued demand conditions &high base weighing on a 1H sales recovery, co targets double-digit FY25 sales, led by a buoyant 2H FY24 

Co targets moderate YoY Ebitda margin expansion for FY25 

Raising FY25E/FY26E EPS 7% each 

JPM on USL

U-P, TP Rs 1115 

Net revenue grew 7% YoY in 4Q, a tad below ests; P&A growth moderated to 7% (high base) vs double-digit trajectory earlier. 

EBITDA was ahead of BofA, but below consensus; A&P costs key. 

Expect revenue growth & margin expansion to moderate near-term.

BoFA Sec on Aurobindo Pharma

Buy, TP Rs 1350 

Better than expected qtr with 22% margins despite Eugia Unit III disruption 

Unit III receives OAI but priced-in 

Diversified growth drivers beyond Eugia including ex-injectable US gx, PLI incentive, Europe/RoW to support rev momentum 

Higher GMs from PLI incentive, Pen-G, gRevlimid to aid margin expansion. Guide of 21-22% margins to drive upgrades 

GS on Aurobindo Pharma

Buy, TP Rs 1325 

Strong show continues, further margin expansion on the cards; 

Co remains confident of achieving decent growth in FY25 aided by multiple drivers such as continued momentum in US, decent growth for Eugia & gRevlimid ramp-up in coming qtrs. 

CLSA on Aurobindo Pharma

Downgrade to O-P, TP Rs 1320 

4QFY24: revenue in line & Ebitda/PAT beat 

FY25 to be marred by no major product launches 

Eugia Unit III OAI status: potential to delay product launches 

CITI On Aurobindo Pharma

Sell, TP Rs 1040 

Though 4Q slightly ahead (c6% beat on EBITDA), margin expansion seems to be peaking out. 

4Q EBITDA margin stood at 22.3% (+50bps QoQ) 

Co guided for c21-22% EBITDA margin in FY25E 

Takeaways from the conference in HongKong

Growth outlook steady; NIMs moderate 

Banks expect system loan growth to moderate closer to deposit growth. 

Unsecured loans to grow slower in FY25 vs FY24; partially offset by corporate loan growth. 

NIMs are expected to moderate going ahead as spread expansion cycle has ended. 

Asset quality trends remain stable. 

Expect credit cost to normalize over the next few years

ICICIBank:

Business growth in high teens; NIMs to moderate; Aims for RoE of 17-18%

Mgt intends to add 600-700 branches per year

Credit cost to inch up to ~60-70bps over the next few years vs 40bps at present

Bank aims for delivering sustainable ROE of ~17%-18%

AxisBank:

Long growth guidance maintained; Investments in business to continue

Mgt expects nIM at & above 3.8%

ROE to sustain at ~18% for Axis Bank

Valuation: We prefer HDFCB, ICICI

HDFCBank – BUY – TP Rs1900

ICICI Bank – BUY – TP Rs1300

IndusIndBank – BUY – TP Rs1800

Axis Bank – Neutral – TP Rs1150

KotakBankLtd – Neutral – TP Rs1800

Bankofbaroda – Neutral – TP Rs285

SBICards – Neutral – TP Rs805

FederalBankLtd – Neutral – TP Rs180

SBI – SELL – TP Rs680

It’s not just the listed entities that are riding the bull run. The buoyant investor mood has percolated down to unlisted shares, several of which are enjoying their own moment in the sun. 

In the last six months, Indian Potash, Waaree Energy, Tata Capital, Nayara Energy and SBI Funds Management have gained over 100 per cent. NSE’s stock price has seen a 69 per cent spurt to ₹5,900. Other notable gainers in the past year include Axles India (up 220 per cent), Orbis Financial Services (211 per cent), Manjushree Technopack (210 per cent) and Utkarsh CoreInvest (114 per cent).

Who will be the first off the mark is something that is being debated and discussed within billionaire Mukesh Ambani-controlled conglomerate Reliance Industries and there is a high probability of Reliance Jio Infocomm going public first, ahead of other businesses.

Top officials in the group are talking in favour of the telecom services company making its public markets debut first and listing it as it is seen as a more mature business, said sources with knowledge of internal discussions.

* BIOCON 

* GNFC 

* HINDCOPPER 

* IDEA 

* PEL

Gold prices were up above $2,350 per ounce on Monday, rebounding from a two-week low.

Markets are assessing the Fed’s policy outlook.

Israeli strike in Gaza killed 45 people, sustaining geopolitical risks favoring bullion assets.

Markets favor multiple rate cuts by the Federal Reserve this year.

Data expected to show US personal income and spending slowdown in April.

Fed’s preferred price gauge expected to mirror CPI, indicating inflation did not speed up.

Lumax Tech: Net profit at Rs 51.0 cr vs Rs 24.0 cr, Revenue at Rs 757 cr vs Rs 493 cr. (YoY)

Natco Pharma: Net profit at Rs 386 cr vs Rs 276 cr, Revenue at Rs 1068 cr vs Rs 898 cr. (YoY) 

Sumitomo Chem: Net Profit at Rs 110 cr vs Rs 55 cr, Revenue at Rs 674 cr vs Rs 542 cr. (QoQ).

VPRPL: Net Profit at Rs 67 cr vs Rs 40 cr, Revenue at Rs 657 cr vs Rs 455 cr. (YoY). 

Astrazenca Pharma: Net Profit at Rs 39 cr vs Rs 17 cr, Revenue at Rs 383 cr vs Rs 285 cr. (YoY)

Garware: Net profit at Rs 69.6 cr vs Rs 66.7 cr, Revenue at Rs 382 cr vs Rs 370 cr. (YoY)

Bhageria: Net profit at Rs 7.2 cr vs Rs 5.0 cr, Revenue at Rs 183 cr vs Rs 145.0 cr. (YoY) 

Motisans: Net profit at Rs 10.8 cr vs Rs 3.0 cr, Revenue at Rs 116 cr vs Rs 90.7 cr. (YoY) 

TBZ: Net profit at Rs 12.5 cr vs Rs 11.3 cr, Revenue at Rs 507 cr vs Rs 465 cr. (YoY)

Career Point: Net profit at Rs 14.3 cr vs loss Rs 16.4 cr, Revenue at Rs 25.7 cr vs Rs 24.8 cr. (YoY)

Jindal World: Net profit at Rs 28.2 cr vs Rs 26.5 cr, Revenue at Rs 574.0 cr vs Rs 549 cr (YoY)

Aster DM: Company has undertaken an expansion for Aster CMI Hospital in Bengaluru, adding 300,000 square feet of infrastructure, raising its bed capacity from 500 to 850. 

Axis cades: Company receives Rs 90 crore order from Bharat Electronics for eight radar processing systems 

FMCG stocks: IMD expects above normal monsoon likely in India from June to September 2024 

Honasa Consumer: Mamaearth’s parent company Honasa Consumer is planning to restructure its offline distribution model, says CEO Varun Alagh. 

HINDALCO: Company plans to spend Rs. 6,000 cr in capex this year. Company has plans to spend substantial capex over the next three years in copper and aluminium. 

BSE: Company approved execution of share purchase agreement with SPDJ SINGAPORE PTE for acquiring 50% stake of AIPL from SPJDS.

HCL TECH: Company and arm collaborate on custom silicon chips optimized for AI workloads.

Cochin Shipyard: Company secures a €60 million order for hybrid SOVs from a UK operator.

ZF Commercial Vehicle: Company in pact with IIT Madras for global mobility digital infrastructure 

EKI Energy Services: Company to provide carbon credit services for Azerbaijan’s FARI Solutions. 

Praveg: Net profit at Rs 1.6 cr vs profit Rs 5.2 cr, Revenue at Rs 32 cr vs Rs 18.7 cr. (YoY)

Laxmi Machine: Net profit at Rs 65.2 cr vs Rs 84.3 cr, Revenue at Rs 952 cr vs Rs 1217 cr. (YoY) 

NALCO: Net profit at Rs 997 crore versus Est of Rs 605 cr, Revenues at Rs 3579 crore versus Est of Rs 3771 cr 

Dish TV: Net loss of Rs 1,989.7 cr vs loss of Rs 1,720.6 cr, Revenue down 19.4% At Rs 407 Cr Vs Rs 504.8 Cr 

LIC: Total APE up 10.7% at ₹21,180 cr vs ₹19,137 cr, Value Of New Biz (VNB) down 1.6% at ₹3,645 cr vs ₹3,704 cr (YoY) 

Jubilant Ind: Net profit up 17% at ₹22 cr vs ₹18.8 , Revenue down 12.6% at ₹300.3 cr vs ₹343.4 cr (YoY)

Juniper: Net profit at Rs 46.7 cr vs Rs 14.8 cr, Revenue at Rs 245 cr vs Rs 194 cr. (YoY) 

Jai Corp: EBITDA at Rs 17 cr vs Rs 11 cr, Revenue at Rs 123 cr vs Rs 125 cr. (YoY) 

NMDC: Net profit at Rs 1413 cr vs Rs 2272 cr, Revenue at Rs 6489 cr vs Rs 5851 cr. (YoY) 

Heranba: Net profit at Rs 13.1 cr vs Rs 14.3 cr, Revenue at Rs 261 cr vs Rs 260 cr. (YoY)

ZF Commercial: Net profit at Rs 100.2 cr vs Rs 101.2 cr, Revenue at Rs 959 cr vs Rs 977 cr. (YoY) 

Nandan Denim: Net profit at Rs 27.1 cr vs Rs 27.6 cr, Revenue at Rs 579 cr vs Rs 457 cr. (YoY) 

NRB: Net profit at Rs 31.2 cr vs Rs 34.6 cr, Revenue at Rs 285 cr vs Rs 312 cr. (YoY) 

ICICI Bank: Bank in UBS conference says, “Business growth in high teens; NIMs to moderate; Aims for RoE of 17-18%” 

Axis Bank: Bank in UBS conference says, “Long growth guidance maintained; Investments in business to continue” 

HPCL: Company’s board recommends bonus issue of 1 share for every 2 share held 

Adani Energy Solutions: Company to raise funds up to ₹12,500 crore via QIP or other permissible mode 

Vedanta: Company is said to weigh $1 bn share sale as soon as June.

Praveg: Company buys 51% in Abhik Advertising and Bidhan Advertising 

ITC: Company shareholders advised by IiAS to vote against hotel demerger.

Nykaa: Company board appoints Santosh Desai as Independent Director effective July 15. 

Timken: Company’s Foreign parent Timken Singapore to sell up to 6.6% equity of Timken, deal size at $213m approx. ₹1,775 cr Floor Price is at ₹3,550/share.

Astra Zeneca: Company announces Rs 24 per equity share dividend

Inox Wind: Promoter Entity IWEL likely to sell shares via block deal soon, Promoter Entity likely to sell upto 5% stake , Discount of upto 5% likely on deal in the Rs 148-150 per share 

Concord Biotech: Ontario Inc likely to sell 3.4% equity of Concord Biotech, floor price at ₹1,320/share. Offer size of the deal is at ₹468.4 crore

Goodyear: Net loss at Rs 4.0 cr vs profit Rs 22.0 cr, Revenue at Rs 551 cr vs Rs 591 cr. (YoY)

TARC: Net loss at Rs 51.8 cr vs profit Rs 1.5 cr, Revenue at Rs 9.5 cr vs Rs 135 cr. (YoY)

GMDC: Net Profit at Rs 207 cr vs Rs 442 cr, Revenue at Rs 751 cr vs Rs 948 cr. (YoY).

Elgi Equipment: Net Profit at Rs 76 cr vs Rs 170 cr, Revenue at Rs 866 cr vs Rs 836 cr. (YoY).

MSTC: Net Profit at Rs 48.5 cr vs Rs 77.0 cr, Revenue at Rs 199 cr vs Rs 197 cr. (YoY).

Borosil Renewable: Net loss at Rs 53.0 cr vs profit Rs 11.0 cr, Revenue at Rs 283 cr vs Rs 309 cr. (YoY) 

Orient Green: Net loss at Rs 25.3 cr vs Rs 19.0 cr, Revenue at Rs 36 cr vs Rs 44 cr. (YoY)

Life Insurance Corporation of India posted a net profit of 13,763 crore in Q4, up only 2.5 per cent year-on-year, as a 15.3 per cent jump in expenses of management to ₹24,709 crore for the quarter weighed on the bottomline.

In the earnings call, CFO Sunil Agrawal said there was a sharp increase in expenses of management in Q4 due to the wage revision impact in Q4, which includes arrears of payments, gratuity and leave encashmant and pension liability. The arrears and gratuity have been completely accounted for in Q4 whereas the pension liability will be amortised over financial years.

IT major HCLTech and Arm, a technology provider of processor IP, announced their collaboration to augment custom silicon chips that support AI-driven business operations.

The partnership will bring to market solutions that enable semiconductor manufacturers, system OEMs and cloud services providers to enhance the computing efficiency of their data centre environments and meet evolving customer demands, said the company.

Bank of Nova Scotia (Pre market) (Sector- Financial)

Futu Holdings Limited (Pre market) (Sector- Financial) 

Elbit Systems Ltd. (Pre market) (Sector- Defence) 

Heico Corporation (Post market) (Sector- Defence) 

CAVA Group, Inc. (Post market) (Sector- Hotel) 

Woodside Energy Group Limited (TENT) (Sector- Energy)

3MINDIA, ABFRL, ARE&M, BRIGADE, CAMPUS, CAPACITE, DREAMFOLKS, DYNAMATECH, EIHOTEL, ENGINERSIN, EPL, EUREKAFORBE, EXICOM, GICRE, GENSOL, GNFC, GOODLUCK, GRAUWEIL, IMAGICAA, INDIAGLYCO, IRCTC, ITDCEM, ITI, LINDEINDIA, MANINDS, MEDPLUS, MMTC, MTARTECH, NBCC, NFL, PARKHOTELS, PRESTIGE, RITES, RRKABEL, SEPC, SHALBY, UFLEX, UGARSUGAR, UNIPARTS

ABFRL

Revenue expected at Rs 3335 crore versus Rs 2879 crore 

EBITDA expected to be seen at Rs 274 crore versus Rs 192 crore 

EBITDA margin expected to be seen at 8.21% versus 6.70% 

Net Loss expected to be seen at Rs 265 crore versus Rs 186 crore 

ENGINERSIN

Revenue expected at Rs 1121 crore versus Rs 868 crore 

EBITDA expected to be seen at Rs 63 crore versus Rs 110 crore 

EBITDA margin expected to be seen at 5.62% versus 12.6% 

Net profit expected to be seen at Rs 133 crore versus Rs 50 crore 

IRCTC

Revenue expected at Rs 1145 crore versus Rs 965 crore 

EBITDA expected to be seen at Rs 394 crore versus Rs 325 crore 

EBITDA margin expected to be seen at 35.24% versus 33.67% 

Net profit expected to be seen at Rs 310 crore versus Rs 279 crore 

PRESTIGE

Revenue expected at Rs 2877 crore versus Rs 2631 crore 

EBITDA expected to be seen at Rs 746 crore versus Rs 681 crore 

EBITDA margin expected to be seen at 25.93% versus 25.91% 

Net profit expected to be seen at Rs 302 crore versus Rs 458 crore 

RITES

Revenue expected at Rs 677 crore versus Rs 686 crore 

EBITDA expected to be seen at Rs 166 crore versus Rs 191 crore 

EBITDA margin expected to be seen at 24.5% versus 27.9% 

Net profit expected to be seen at Rs 123 crore versus Rs 138 crore 

Q4FY24 EARNING CALENDAR 29.05.2024

AADHARHFC, AHLUCONT, ALKEMLAB, ASHAPURMIN, BATAINDIA, CUMMINSIND, DBREALTY, DEEPAKFERT, DONEAR, EMAMILTD, ENTERO, FDC, GENUSPOWER, GMRINFRA, HCG, HINDOILEXP, INNOVACAP, IONEXCHANG, IPCALAB, ISGEC, JUBLPHARMA, KIOCL, KNRCON, LEMONTREE, MAZDOCK, MIDHANI, MOTHERSON, MUNJALSHOW, NOCIL, RAMKY, SAMHI, SJVN, SOLARA, TATASTEEL, WEBELSOLAR, ZUARIIND

10:25 U.S. FOMC Members Bowman and Mester Speaks

19:30 U.S. CB Consumer Confidence (Expected: 96.1 versus Previous: 97.0)

Buzzing Stocks: Timken India, Inox Wind, Concord Biotech, IIFL Finance, UltraTech Cement, Honasa Consumer, Adani Energy Solutions, Nykaa, Keystone Realtors

Gold prices were steady on Tuesday, as investors maintained a cautious stance ahead of key U.S. inflation data, which could provide more insight into the Federal Reserve’s policy trajectory.

FUNDAMENTALS

* Spot gold held its ground at $2,351.39 per ounce, as of 0110 GMT, after climbing 1% in the previous session.

* U.S. gold futures were up 0.8% at $2,352.30. - Reuters

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

The upmove in Indian Overseas Bank is gaining momentum. The stock has made a bullish breakout by surging over 10 per cent on Monday. This rise has taken the stock well above the key resistance level of ₹70will act as a good support now.

Ashok Leyland: Dheeraj Hinduja, Chaiman

Looking At A Timeline Of 12-13 Months To Begin Ops At e-Bus Plant In UP: Ashok Leyland Chairman

Ashok Leyland: Gopal Mahadevan, Whole-time Director

What’s Ahead for Ashok Leyland? Insights From Management On Growth Strategies and Product Launches

Antony Waste Handling: Jose Jacob Kallarakal, Chairman and MD

Plan To Venture Into Vehicle Scrappage Biz Which Needs A Capex Of ?15 cr: Antony Waste Handling

*Brookfield REIT: Ankur Gupta, *

Would Love To Seek Opportunities That Contribute More Assets To The REIT: Brookfield Asset Mgmt

DLF: Ashok Tyagi, Whole Time Director

Demand And Pricing Trends Are Holding Up, We Are In The Midst Of A Virtuous Cycle: DLF

Easy Trip Plann: Prashant Pitti, Co- Founder

Air Segment Is Expected To Grow At 15% CAGR For Next 5 Years: Easy Trip Planners

Hindalco : Satish Pai, MD

Copper EBITDA Is Expected To Stabilise At ?600 Crore Vs ?750 Crore In Q4: Hindalco

HUDCO: Sanjay Kulshrestha, CMD

Medium-Term Loan Book Target Of ?1.5 Lakh Crore: HUDCO

IndiGrid InvIT : Harsh Shah, CEO

Developing 500 MW Battery Storage Capacity & Intend To Increase It To 1 GW: IndiGrid

Manappuram Fin: VP Nandakumar, MD&CEO

Can Manappuram Finance Maintain 20% Growth Amidst RBI Regulations and Market Challenges?

Events today…

Results today…

Replays available at www.researchbytes.com

Here’s an interesting stock idea: The stock idea that we have for you today is Indian Overseas Bank.The stock has made a bullish breakout on Monday by surging over 10 per cent. The momentum is strong, and the stock can rise further from here.

Growth outlook steady; NIMs moderate

We hosted the Senior management of ICICI and AXIS at UBS AIC 2024 in Hong Kong. Banks expects system loan growth to moderate closer to deposit growth. Unsecured loans to grow slower (than FY24), partly offset by better corporate loan growth (led by a gradual pick up in Capex). NIMs are expected to moderate going ahead as spread expansion cycle has ended and competition for retail deposits remain intense. Asset quality trends remain stable and expect credit cost to normalize over the next few years. We believe the recent regulatory actions on banks is intended to drive better operational resilience, reduce downtimes, and mitigate the possibility of digital frauds.

ICICI: Business growth in high teens; NIMs to moderate; Aims for RoE of 17-18%

AXIS: Long growth guidance maintained; Investments in business to continue

Valuation: We prefer HDFCB, ICICI

HDFCB (2.0x FY25E P/BV) and ICICI (2.6x) are our preferred banks. We also have a Buy rating on IndusInd (1.6x FY25E P/BV). We have a Neutral on AXIS (2.0x), KOTAK (2.2x), BOB (1.1x), FED (1.2x) and SBICARD (4.6x). We have a Sell rating on SBI (1.4x)

Lakshmi Machine Works Ltd.: Net Revenue at Rs. 970.7 crore, -25.5% YoY, and-20% QoQ. EBITDA at Rs. 73.5 crore, -37.9% YoY and -37.6% QoQ. EBITDA Margin at 7.6%, -150 bps YoY and -214 bps QoQ. Net Profit at Rs. 66.0 crore, -29.9% YoY and -33.2% QoQ. Ashika

Natco Pharma Ltd.: Net Revenue at Rs. 1068.3 crore, +19% YoY, and+40.8% QoQ. EBITDA at Rs. 497.3 crore, +46.7% YoY and +85.5% QoQ. EBITDA Margin at 46.6%, +878 bps YoY and +1121 bps QoQ. Net Profit at Rs. 386.3 crore, +40.1% YoY and +81.6% QoQ. Ashika

HBL Power Systems Ltd.: Net Revenue at Rs. 610.1 crore, +51.5% YoY, and+1.8% QoQ. EBITDA at Rs. 131.5 crore, +193.7% YoY and +16.2% QoQ. EBITDA Margin at 21.6%, +1043 bps YoY and +266 bps QoQ. Net Profit at Rs. 81.2 crore, +132% YoY and +2.8% QoQ.

Juniper Hotels Ltd.: Net Revenue at Rs. 245.3 crore, +26.4% YoY, and+3.8% QoQ. EBITDA at Rs. 91.1 crore, +5.2% YoY and -5.7% QoQ. EBITDA Margin at 37.1%, -751 bps YoY and -376 bps QoQ. Net Profit at Rs. 46.8 crore, +216% YoY and +1218.9% QoQ. Ashika

Electronics Mart India Ltd.: Net Revenue at Rs. 1524.2 crore, +14.8% YoY, and-14.8% QoQ. EBITDA at Rs. 107.6 crore, +18.4% YoY and -6.6% QoQ. EBITDA Margin at 7.1%, +21 bps YoY and +62 bps QoQ. Net Profit at Rs. 40.5 crore, +12.3% YoY and -11.4% QoQ.

Indo Count Industries Ltd.: Net Revenue at Rs. 1093.3 crore, +35.5% YoY, and+53.2% QoQ. EBITDA at Rs. 165.3 crore, +14.6% YoY and +58.6% QoQ. EBITDA Margin at 15.1%, -275 bps YoY and +51 bps QoQ. Net Profit at Rs. 91.9 crore, -2.9% YoY and +58.4% QoQ.

Garware Technical Fibres Ltd.: Net Revenue at Rs. 382.3 crore, +3.2% YoY, and+32.1% QoQ. EBITDA at Rs. 91.3 crore, +14.6% YoY and +70.8% QoQ. EBITDA Margin at 23.9%, +238 bps YoY and +541 bps QoQ. Net Profit at Rs. 69.6 crore, +16.6% YoY and +60.8% QoQ. Ashika

TARC Ltd.: Net Revenue at Rs. 9.5 crore, -93% YoY, and+2% QoQ. EBITDA at Rs. -4.1 crore, -110.8% YoY and -174.1% QoQ. EBITDA Margin at -43.3%, -7143 bps YoY and -10284 bps QoQ. Net Profit at Rs. -51.7 crore, -3483.5% YoY and Rs. -33.5 crore QoQ. Ashika

Kirloskar Industries Ltd.: Net Revenue at Rs. 1728.6 crore, +9.8% YoY, and+11.3% QoQ. EBITDA at Rs. 240.3 crore, +8.3% YoY and +5.2% QoQ. EBITDA Margin at 13.9%, -20 bps YoY and -80 bps QoQ. Net Profit at Rs. 71.0 crore, -23.8% YoY and -32.5% QoQ. Ashika

West Coast Paper Mills Ltd.: Net Revenue at Rs. 1070.1 crore, -21.2% YoY, and+2.4% QoQ. EBITDA at Rs. 169.6 crore, -65.6% YoY and -22% QoQ. EBITDA Margin at 15.9%, -2043 bps YoY and -497 bps QoQ. Net Profit at Rs. 130.4 crore, -59.4% YoY and -17.8% QoQ.

(Nirmal Bang Retail Research) 

Result has improved 

Revenue from Operations came at Rs. 1093.3 Cr (53.2% QoQ, 35.5% YoY) vs QoQ Rs. 713.4 Cr, YoY Rs. 807.1 Cr 

EBIDTA came at Rs. 165.3 Cr (58.6% QoQ, 14.6% YoY) vs QoQ Rs. 104.2 Cr, YoY Rs. 144.2 Cr 

EBITDA Margin came at 15.1% vs QoQ 14.6%, YoY 17.9% 

Adj. PAT came at Rs. 91.9 Cr vs QoQ Rs. 58.1 Cr, YoY Rs. 94.7 Cr 

Quarter EPS is Rs. 4.6 

Stock is trading at P/E of 15.6x FY25E EPS

(Nirmal Bang Retail Research) 

Result has improved 

Holding Company of Kirloskar Ferrous 

Revenue from Operations came at Rs. 1728.6 Cr (11.3% QoQ, 9.8% YoY) vs QoQ Rs. 1553.5 Cr, YoY Rs. 1574.8 Cr 

EBIDTA came at Rs. 240.3 Cr (5.2% QoQ, 8.2% YoY) vs QoQ Rs. 228.3 Cr, YoY Rs. 222.1 Cr 

EBITDA Margin came at 13.9% vs QoQ 14.7%, YoY 14.1% 

Adj. PAT came at Rs. 89.1 Cr vs QoQ Rs. 43 Cr, YoY Rs. 43.9 Cr 

Quarter EPS is Rs. 89.7 

Stock is trading at P/E of 15.8x TTM EPS

(Nirmal Bang Retail Research)

Result improved 

Revenue from Operations came at Rs. 610.1 Cr (1.8% QoQ, 51.5% YoY) vs QoQ Rs. 599.3 Cr, YoY Rs. 402.6 Cr 

EBIDTA came at Rs. 131.5 Cr (16.2% QoQ, 193.7% YoY) vs QoQ Rs. 113.2 Cr, YoY Rs. 44.8 Cr 

EBITDA Margin came at 21.6% vs QoQ 18.9%, YoY 11.1% 

Adj. PAT came at Rs. 106.6 Cr vs QoQ Rs. 81.9 Cr, YoY Rs. 36 Cr 

Quarter EPS is Rs. 3.8 

Stock is trading at P/E of 48.8x TTM EPS

(Nirmal Bang Retail Research) 

Result ahead of Expectation 

During the year ended March 3 1, 2024, the Group has acquired ‘ATRACO Group’ for an aggregate cash consideration of Rs 45,815 lakhs (USD 55 million) The acquisition was completed on January 3, 2024. 

Revenue from Operations came at Rs. 812.4 Cr (47.3% QoQ, 55.3% YoY) vs expectation of Rs. 636.8 Cr, QoQ Rs. 551.6 Cr, YoY Rs. 523 Cr 

EBIDTA came at Rs. 83.2 Cr (33.1% QoQ, 16.4% YoY) vs expectation of Rs. 79.7 Cr, QoQ Rs. 62.5 Cr, YoY Rs. 71.5 Cr 

EBITDA Margin came at 10.2% vs expectation of 12.5%, QoQ 11.3%, YoY 13.7% 

Adj. PAT came at Rs. 44.3 Cr vs expectation of Rs. 40.3 Cr, QoQ Rs. 30.4 Cr, YoY Rs. 47.2 Cr 

Quarter EPS is Rs. 6.2 

Stock is trading at P/E of 24.8x FY25E EPS

AL - MHCVs Industry outlook IS +VE for FY25 , in May Demand was +VE.. medium term goal of achieving ~35% M. share intact. Avg. age is ~10 years vis-à-vis 7-8 historically + ~70% vehicles are BS4, thus indicating strong replacement DD . Switch was EBITDA +VE in 4Q, targets to have +VE PAT in coming yrs. Capex of INR5-7b in FY25. Invests in Switch & OHM to be lower than FY24. In Defence - FY24 Rev was Rs 10b (+2x), FY25 & 26 Rev to be much higher due to strong visibility. Hinduja Leyland Fin Reverse merger is back on track & may take couple of qtrs More..

Kolte Patil - Targeting to acquire Rs. 80b worth new projects in FY25 & Plan 9msf launches valued at 80b with 35b 1HFY25..Thus, confident of achieving pre-sales of 35b of which 20-25b from new launches. Launches that were postponed in Q4FY24 can be launched in next 30-45 days & has topline potential of 13-14b

EXIDE - LAB biz outlook: Outlook on both auto & industrial segs remains upbeat. Industrial seg will benefit from power backup requirement for data centers. Thermal power generation is seeing a strong comeback & should see incremental demand with growth visibility for the next 5-6 years. Li-ion biz outlook: EXID has already invested Rs 23.3b in EESL & would further invest 30b, taking total investments to ~ 50b. SOP for its plant will come by 4QFY25 & EXID is confident of garnering sufficient orders to ramp up the plant going forward.

LANDMARK CARS - With new OEMs tie-up, it is targeting Double digit growth for FY25 & FY26. Aim to improve Margins by way of cost rationalization. Capex for FY25 will be Rs. 750mn for opening up of 24 new outlets. Getting associated with new OEMs like KIA, MG motors, M&M. OEMs which did not perform well in FY24 were Volkswagen, AL, Renault & Jeep.

Subros - Target double-digit growth in FY25 based on orders in hand. Truck market has a huge opportunity from Oct25. When new rules kick in for compulsory ACs, ₹200-250 cr incremental M.size for truck market. Getting new orders in PVS from EV customers. 

Hindalco: Guides for Q1 alumina sales of 160-170 KT.. Sustainable Copper biz EBITDA to be Rs. 6b/qrtr going ahead.. Coal cost reduction of 1-2% in 1QFY24.. to spend ~60b as capex in India. Chakla mine is expected to start production in FY25 & exit with a production of ~1mt. Plan to scale up the power from RPC contract from 100MW to 300MW by FY25.

TD Power - Guides for 17-18% growth in FY25 & see’s Margins to be 300-400bp higher than sales growth. Expect 1QFY25 Rev to be at 2.5-2.6b & Q2 to be 2.9-3b.. Looking at 1800cr rev potential once the 3rd plant is up. See Rs 1bn of Order inflows in Motors seg. Spent 32m towards VRS. 20m gratuity payment to temp workers – one off in emp costs.. 17m royalty payment to Siemens – other exps

VATECH WABAG (Analyst Meet KTAs): GUIDANCE: O&M Rev target of 20% of total Rev in couple of years (15% currently). OB 3x of revenue (expecting ~Rs. 16k crs OB by end of FY25). 15-20% Rev CAGR - Mid East, S.E. Asia, Saudi etc. to drive growth. 13-15% EBITDAM. ROCE/ROE 20%/15%. Net cash +VE. Focusing on reducing WC days. | New Initiatives: Strategic tie up with ‘Peak sustainability Ventures” to set up 100 CBG plants with potential of $200m. H2O to Green Hydrogen another big opportunity. Semi Con projects will be more sooner than green hydrogen. .

SECO - has reported an 18% growth over last 40-45 days (12% SSSG & 6% from new stores). It expects only 20-30bps improvement in G. margin & EBITDAM. Focusing on increasing Studded ratio by 100-130 bps each year to mitigate competitive pressures & improve margins. For FY25 & FY26, Aim to add 15-20 stores (8-10 Co. owned & 8-10 franchises).

JK Lakshmi - Vol. demand will be better than previous year. Expect Industry DD to be 6%-8% in FY25. Expect early double digit Vol. growth in FY25. Prices will improve from here, as DD improves

Torrent Pharma - expects US biz to grow in FY25 due to new launches.. EBITDAM can be improved by 50-100bp YoY in FY25.. N. debt to come down by Rs. 13b in FY25. Germany biz growth to be high single digit YoY in FY25. ~300-400 MRs would be added to take the total strength to 6k in FY25..

Glenmark Pharma - FY25 Guidance is as follows: Consol Rev: Rs. 135– 140b (14-18% YoY growth), 19% EBITDAM & Double-digit PAT margin.. R&D Investment: 7-7.3% of total sales. Consol CAPEX: INR7b. 

Divis - Despite the decline in prices, it has been able to maintain G. margin in API seg due to backward integration project & a higher Vol. share.With respect to long-term supply agreement with one of the innovatory customers, DIVI would incur a capex of Rs. 6.5b-INR7b at the existing manufacturing site, the product would require regulatory approval for the innovator. In addition other capex would be Rs 15b

FORTIS HEALTH - expects Double digit Rev growth in FY25 led by Vol & ARPOB growth. It plans to add 300beds in FY25 (added 246 in FY24). Aims for 70% occupancy. EBITDAM expected at 21%. In Diagnostics: expect 9-10% Rev growth with 20% Margins

Manappuram - continues to guide for 20% AUM CAGR of & 20% RoE.. See’s Marginal decline in NIMs but it will be offset with better growth.. gold loan growth will be better than last year & there will be healthy growth in non-gold bizs as well.. Cr costs of 1.0-1.5%.. MGFL has not benefitted much from the ban on IIFL..See a lot of potential in Affordable housing seg. Capital allocation skewed towards secured lending. Asirvad MFI went through collection & asset quality problems in Punjab & Rajasthan, it has strengthened collection machinery

Ganesha Ecosphere - expects Rs. 15-16b peak Consol Rev from all the capacities with Margins north of 16%.. Current capacity for rPet granules is ~28,000 MT with 80% utilization, Another 14,000 MT (3rd Line) of capacity will come up by Jun24, It can do 90% utilization. Subsidiary can clock EBITDA/kg of INR30/kg.. Don’t see uptick in Debt from current levels of Rs 4b. Legacy business, particularly yarn segment, faced some headwinds in terms of demand and pricing, expects recovery from Aug’24..

GRASIM - in Paints Targeting dealer network of 50k in FY25. Prods to be available in all towns with 1L population by July’25. Plants started commercial production in Apr’24. | Chemicals - Entire inc capacity of Epoxy will get absorbed between 24-36 months. Improvement in caustic soda prices. | VSF – Vol grt of 4-5% in FY25 due to debottlenecking. | Capex of INR45b in FY25 largely towards Paints business. 

UNO MINDA - Peak annual order from EV OEM for 2W/3W is INR25b; PV/CV is INR10bn. Approved capex of INR3b for expansion of 2W allow wheel plant at Supa capacity by 2 MN; post expansion capacity will 7.5-8 mn wheels p.a.

PAGE - Expects gradual uptick in demand. Maintain EBITDAM guidance of 19-21%. Ad-spends to expand to 4-4.5%. 

INTERGLOBE AIR: To add 1 aircraft every week in FY25. Capacity and passenger growth of early teens guidance intact for FY25. Maintenance charges and airport fees are seeing inflationary pressures. Additional announcements regarding the tailor made business product would be announced in first half of Aug’24.

INDIGO PAINTS - Maintain rev grt at 3-4x of industry avg. Current G. margins to sustain in FY25. A&P exp expected to marginally decline as % of rev. Putty expansion expected to complete by Dec’24; solvent-based plant to commission by Mar’25. In Jodhpur, plans for a new solvent plant with a capacity of 12,000 KLPA and a water-based plant with a capacity of 90,000 KLPA. 

PLNG - Guides 20% grt for LNG. Dahej/Kochi terminal operating at 98%/22% CU. Dahej expansion to 5mtpa expected to complete in Mar’25.