Share Market Highlights 14 May 2024: Sensex gains 328 pts, Nifty closes above 22,200

PVR-INOX narrowed consolidated net loss to ₹129.7 crore for Q4 FY24 from ₹333.4 crore in the corresponding quarter in the previous fiscal. Revenue from operations up about 9.90% to ₹1256.40 crore in the quarter ended March 2024. 

During FY24, the company opened 130 new screens and closed 85 underperforming screening, resulting in net addition of 45 screens during the year. 

Significant volatility was observed in box office collections during the year. Quarter ended March 2024 was the weakest quarter of the year.

BSE Sensex closed at 73,104.61, higher by 328.48 pts, or 0.45%, on Tuesday’s trade, and NSE Nifty50 closed at 22,222.60, up 118.55 pts, or 0.54%. 

The majority of sectoral indices have ended in the green. Nifty metal rose 2.70% to close at 9,340.75. FMCG stocks, pharma, and healthcare index slipped. 

Within the Nifty pack, the top movers were Adani Enterprises (5.40%), M&M (4.01%), Hero MotoCorp (3.37%), ONGC (2.85%), and L&T (2.46%). Top losers were Cipla (-3.99%), TCS (-1.16%), Tata Consumer Products(-1%), Nestle India (-0.88%) and Axis Bank (-0.79%). Reliance Industries’ stock rose 1.20% to close at ₹2,839. 

A total of 3,910 stocks were actively traded, 2,676 advanced, while 1,110 declined and 124 stocks remained unchanged where 158 stocks hit a 52 week high and 29 stocks hit a 52 week low on the BSE.

Surya Roshni Limited achieved quarterly volumes in steel pipes, reduced debt by ₹400 crore in FY24 and attained zero-debt status. Recommended final dividend of ₹ 2.50 per share for FY24. The shares were down by 1.96% to ₹546 on the BSE.

BSE Sensex was up by 0.46 per cent or 335.99 points to 73,112 while the NSE Nifty was at 22,221.80 up by 0.53 per cent or 117.75 points.

Major gainers on the NSE include- Adani Enterprises (5.60%), Mahindra and Mahindra (3.93%), Hero Motocorp (3.34%), Larsen and Toubro (2.60%), Jws steel (2.51%)

Major losers include- Cipla (-3.90%), Nestle India (-1.22%), Tata Consultancy Services (-1.13%), Tata Consumers (-1.05%), Axis Bank (-0.80%)

Jindal Stainless supplied 201LN grade stainless steel to India’s first Vande Metro train, The Vande Metro aims to cater to urban commuters travelling distances up to 250 km. It is expected to connect more than 120 cities nationwide. The shares were up by 4.65% to Rs 711.55 on the BSE.

PVR Inox has entered into a shareholders’ agreement with Devyani International Ltd to incorporate a new company for developing and operating food courts in shopping malls

Zinc price continues to rise. The Zinc Futures contract on the Multi Commodity Exchange dipped to a low of ₹254.80 per kg and then has risen back sharply from there. It is currently trading at ₹264 per kg.

Quick service restaurant operator Devyani International Ltdon Tuesday reported a consolidated net loss of ₹48.95 crore in the fourth quarter ended March 31, 2024, impacted by forex translation loss due to the devaluation of Nigerian currency.

PVR Ltd and Devyani International has announced a strategic partnership to jointly establish a company in

India for the purpose of development and operation of food courts within shopping malls in India.

Electric vehicle charging and power solutions provider Exicom has announced the launch of ‘harmony gen 1.5 DC fast charger’ with a range of advanced features including an advanced AI-driven remote management system, high operational efficiency, and integrated lighting.

Allied Blenders and Distillers Ltd, the maker of Officer’s Choice Whisky, has received SEBI’s go-ahead to raise ₹1,500 crore through an Initial Public Offering (IPO), an update with the markets regulator showed on Tuesday.

Matrimony.com Limited reported FY24 revenue growth of 5.6% and PAT growth of 6.2%, achieving over 1 million paid subscriptions. Consolidated billing at Rs 121.2 crores, revenue at Rs 119.2 crores, and PAT at Rs 11.7 crores for Q4 FY24. The shares were down by 1.64% to Rs 532.80 on the BSE.

The stock market’s reception to the ongoing elections has showcased the nervousness and fatigue of investors to an extent, as the voter turnout after three phases now stands at just over 66 per cent.

Exicom launched Harmony Gen 1.5 DC Fast Chargers, up to 400 kW, with user-centric design and features like AI-driven remote management. The chargers are designed for India’s tough climate and grid conditions, they offer power outputs from 60 kW to 400 kW, suitable for EVs. The shares were up by 6.92% to ₹272.30 on the BSE.

Sakuma Exports Ltd. invested $7.35 million in its wholly-owned subsidiary, Sakuma Impex LTD. UK, aiming to enhance trading operations worldwide. The UK subsidiary secured an order book exceeding £5 million for growth and profitability. The shares were up by 2.15% to ₹27.55 on the BSE.

Arihant Foundations and Housing revealed plans to invest Rs 650 crore in real estate, including Rs 150 crore for Grade A office spaces in Bengaluru, aiming for projects near the central business district and the IT corridor. The company also signed a deal with Equitas Small Finance Bank for its corporate headquarters in Chennai. The shares were up by 2% to ₹142.80 on the BSE.

Sawaca Business Machines Ltd. received a proposal from TCS Information Technology LLC, Dubai, to develop an AI-based Supply Chain Management software for the Gulf Region and acquire up to 20-25% stake in the company. The proposal includes establishing a subsidiary/joint venture in Dubai for this purpose. The shares were up by 4.44% to Rs 1.41 on the BSE.

Shares of Hindustan Zinc (HZL) hit their lifetime peak on Monday and climbed more than 10 per cent amid a host of positive factors surrounding the firm.

The company’s market capitalisation (mcap) touched ₹2.44 lakh crore. With this, the company became the most valued metals and mining firm, ahead of companies like Tata Steel, JSW Steel and Hindalco.

Shares of the company ended at ₹578.85, up 9.71 per cent on the BSE. During the day, it rallied 11 per cent to reach the record high of ₹585.90.

GHCL Limited reported that it launched ‘SWAYAM’ online investor self-service portal. Investors can register on the platform to access their portfolios, view company-wise holding details, dividend payment history, and raise service requests or complaints. The shares were up by 1.82% to ₹500.90 on the BSE.

Oil India Limited issued a press release clarifying news items published in local newspapers. The company recovered liquidated damages for the construction of an ETP at Tengakhat, Dibrugarh, and is progressing on projects like Baghjan Madhuban Pipeline. Oil India Limited also denied reports of office shifting and is undergoing restructuring for operational efficiency, with plans to develop Duliajan as a SMART city. Shares were up by 2.92% to ₹621.90 on the BSE.

MIC Electronics Limited received a Letter of Acceptance from the Malda Division of the Eastern Railway Zone for a project at Bhagalpur Station worth Rs. 1.47 crore. The project includes the replacement of CIB, TIB, and passenger amenities. Shares surged 3.40% to ₹48.60 on the BSE.

Devyani International Ltd reported its Q4 & FY24 Financial Results. The company completed and integrated RD Thailand acquisition, Added 47 net new stores (including 5 KFC stores in Thailand), total store count at 1,782 – to hit 2,000 stores in 2024, enters into partnership with PVR INOX for operating food courts in Shopping Malls. The shares were up by 0.58% to ₹156.30 on the BSE.

BSE Sensex rose by 229.47 pts or 0.32 per cent to trade at 73,005.60 as of 12.35 pm; and Nifty 50 was up 84.65 pts or 0.38 per cent at 22,188.70.

India VIX was at 20.40, down by 0.97 per cent.

Nifty pharma, healthcare index, and FMCG continued to trade in the negative territory. Nifty IT slipped by 0.02 per cent to trade at 33,069.50 as of 12.37 pm.

Nifty metal increased by 2.36 per cent to trade at 9,309.70. In addition, nifty auto, media, and consumer durables stock traded over 1 per cent.

Total passenger vehicles (PVs) sales in the domestic market grew marginally by 1.3 per cent year-on-year (y-o-y) in April to 3,35,629 units as compared with 3,31,278 units in the corresponding month last year, the Society of Indian Automobile Manufacturers (SIAM) reported on Tuesday.

Category wise, the passenger car segment declined by 23.4 per cent y-o-y to 96,357 units during the month as compared with 1,25,758 units in the same month last year. However, utility vehicle segment, which is in vogue currently, grew by more than 21 per cent y-o-y to 1,79,329 units in April as against 1,48,005 unit in April 2023.

Van segment also grew by 15 per cent y-o-y to 12,060 units in the last month as compared with 10,508 units in April last year, the monthly sales report shared by SIAM said.

Copper prices climbed to their highest since April 2022 on Tuesday amid inflow of funds into the base metals sector, although high prices have hurt Chinese consumers’ appetite.

Three-month copper on the London Metal Exchange (LME) rose 0.3% to $10,210.50 per metric ton by 0636 GMT, having touched $10,255.50 earlier in the session.

The contract has gained 19% so far this year and is just over $600 away from its record high of $10,845 hit in 2022. - Reuters

A total of 3,802 stocks were actively traded, 2,630 advanced, while 1,040 declined and 132 stocks remained unchanged where 137 stocks hit a 52 week high and 24 stocks hit a 52 week low at 12.48 pm on the BSE.

India’s wholesale price index rose 1.26% in April from a year earlier, government data showed on Tuesday. - Reuters

Major gainers on the NSE at 12.40 pm include- Adani Enterprises (4.94%), Mahindra and Mahindra (3.85%), Hero Motocorp (2.65%), Adani ports and special economic zone (2.44%), Jsw Steel (2.34%)

Major losers include- Cipla (-2.77%), Axis Bank (-0.98%), Nestle India (-0.94%), Britannia industries (-0.82%), Tata consultancy services (-0.81%)

Ambit

JSPL’s 4QFY24 EBITDA of Rs24.4 (excluding other income) came in 4%/2%

above our/consensus estimates. EBITDA increased 3% in FY24 to Rs102bn, even 

as volumes surprisingly remained flat. During 2HFY24, JSPL generated Rs50bn in EBITDA, but converted only 27% of it in operating cash. Rebar margins have improved sharply in past couple of months, however, we are now heading into seasonally weak period for longs. JSPL has multiple earnings levers (increased output, pellet, thermal coal mines, slurry pipeline, merchant power) which at full run-rate, could potentially add Rs80-90bn annualized EBITDA to current EBITDA, implying 20% cash RoCE on stated Rs310bn capex. We expect Rs170bn

EBITDA for JSPL by FY27. However, execution remains a key monitorable, considering certain misses in past couple of years (8MT steel throughput for multiple quarters vs rated 9.6MT capacity, Russel Vale coal mine, increased capex). Our Rs 500 TP implies 4.4x FY26 EBITDA of Rs 150bn.

Bharti Airtel expanded network in Koch Bihar and Alipurduar District, deploying additional sites across 1537 villages, to benefit over 41.26 lakh rural population. The shares were down by 0.13% to ₹1284 on the BSE.

Exxaro Tiles Limited inaugurated its first Global showroom in Ghana, West Africa to expand its global presence. The shares were up by 2.26% to ₹95 on the BSE.

Company Name: Lemon Tree Hotels Ltd

Sector: Hotels & Resorts 

Ratings: BUY 

Current Price: Rs.141 

Target: Rs.176

Potential upside: 25% 

Holding: 15 months

Lemon Tree Hotels Limited (LTHL) stands as India’s foremost hotel chain within the mid-priced sector, holding the esteemed position as the third largest across the entirety of the industry, predicated on its controlling interest in owned and leased rooms. Within its operational framework, LTHL seamlessly traverses the upscale segment alongside the mid-priced sector, which encompasses the upper-midscale, midscale, and economy segments.

The key strengths of the Company are

a) Pan India operations and across value chain 

b) Superior financial performance and strong balance sheet. 

c) Asset light expansion. 

d) Aurika brand leverage. 

e) Favorable Industry tailwinds. 

Consolidated revenue is poised to increase from Rs.1,020 cr in FY24E to Rs. 1,529cr in FY26E at a 22% CAGR, driven by strategic hotel expansions via management contracts, while room demand outpaces supply with 9.7% growth against 5.9%. Profitability will increase with EBITDA projected to grow at a 26% CAGR, to Rs.789 cr in FY26E from Rs. 496 cr in FY24E, while EBIDTA margin stabilizing at a healthy 51.6% margin in FY26E. Net profit is expected to grow to Rs.286 cr in FY26E from Rs.125cr in FY24E. With this growth trajectory, we value the stock at 27x EV/EBITDA FY26E, setting a target price of Rs. 176, presenting an enticing investment opportunity with strong growth prospects and attractive valuation.

Birlasoft achieved AWS Migration Consulting status. Achievements include enhancing product lifecycle management for a US motor vehicle manufacturer and boosting operational efficiency for an airline with microservices-based applications on AWS. The shares were up by 1.66% to ₹595 on the BSE.

Easy Trip Planners Ltd’s EaseMyTrip partnered with SIDBI and Uttarakhand Tourism to launch a Homestay Entrepreneurship Training Programme along the Chardham Yatra route, to empower 150 homestay owners with hospitality and eco-friendly skills. The shares were up by 2.32% to ₹44.07 on the BSE.

Shares of Hindustan Zinc (HZL) hit their lifetime peak on Monday and climbed more than 10 per cent amid a host of positive factors surrounding the firm.

Bank Nifty, after appreciating 0.7 per cent yesterday, opened nearly flat today. It began at 47,749 versus yesterday’s close of 47,754. But it moderated a bit and is now hovering around 47,700, down 0.15 per cent.

Nevertheless, the advance/decline ratio stands at 8/4. IndusInd Bank, up 0.5 per cent, is the top gainer whereas Axis Bank, down 0.9 per cent, is the top loser.

A string of accounting frauds unearthed by India’s securities regulator this month poses another risk to the blistering rally in shares of tiny businesses.

Varanium Cloud Ltd. and Add-Shop E-Retail Ltd. — both listed on the small and medium enterprises platform — were found to have manipulated their financial statements to fuel gains in their shares, according to initial orders issued by the Securities and Exchange Board of India. The authorities have banned both companies and their founders from dealing in the country’s capital market.

Nifty 50 is trading flat. The index touched a high of 22,182.70 and then has come down from there. It is currently trading at 22,107. The advances/decline ratio is at 26:24. This gives a mixed picture.

Nifty 50 outlook

Intraday resistance is in the 22,190-22,200 region. That seems to be holding well for now. Support is around 22,060. A break below it can drag the index down to 21,980 and 21,920 during the day.

DSJ keep Learning: Ex-Date: 14-May-24

Solara Active Pharma Sciences: Ex-Date: 15-May-24

Viji Finance: Ex-Date: 15-May-24

IFL Enterprises: Ex-Date: 17-May-24

IIFL Finance: Open: 30-Apr-24; Close: 14-May-24

Ashapuri Gold Ornament: 08-May-24; Close: 27-May-24

Solara Active Pharma Sciences: 28-May-24; Close: 11-Jun-24

Canara Bank: Stock Split From Rs. 10/- to Rs. 2/-; Ex-Date: 15-May-24

Vardhman Polytex: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 18-May-24

Bharat Dynamics: Stock Split From Rs. 10/- to Rs. 5/-; Ex-Date: 24-May-24

Titan Intech: Bonus Issue 3:5; Ex-Date: 17-May-24

Newtime Infrastructure: Bonus Issue 2:1; Ex-Date: 21-May-24

Hindustan Petroleum Corp: Bonus Issue 1:2; Ex-Date: 21-Jun-24

Bharat Petroleum Corp: Bonus Issue 1:1; Ex-Date: 22-Jun-24

14-May-24

OMAXAUTO: Interim Dividend - Rs. - 1.00

GODREJCP: Interim Dividend - Rs. - 10.00

GRAVITA: Interim Dividend - Rs. - 5.20

15-May-24

HINDZINC: Interim Dividend - Rs. - 10.00

ADORWELD: Interim Dividend - Rs. - 18.50

APTUS: Interim Dividend - Rs. - 2.50

COFORGE: Interim Dividend - Rs. - 19.00

IRB: Interim Dividend - Rs. - 0.10

16-May-24

TCS: Final Dividend - Rs. - 28.00

17-May-24

ADORFO: Interim Dividend - Rs. - 6.00

NICCOPAR: Interim Dividend - Rs. - 0.50

CRAFTSMAN: Final Dividend - Rs. - 11.25

NXST: Income Distribution RITES 

ADVENZYMES: Interim Dividend

22-May-24

PONNIERODE: Dividend - Rs. - 7.00

SBIN: Final Dividend - Rs. - 13.70

SESHAPAPER: Final Dividend - Rs. - 5.00

KENNAMET: Interim Dividend - Rs. - 30.00

SULA: Final Dividend - Rs. - 4.50

HIGHENE: Final Dividend - Rs. - 3.00

AVANTEL: Final Dividend - Rs. - 0.20

TRENT: Dividend - Rs. - 3.20

COLPAL: Dividend

OBEROIRLTY: Interim Dividend

TRIDENT: Interim Dividend

SEPC Limited received acceptance certificates from Kerala Feeds Limited for a project worth Rs 33.30 crore, marking completion of services for a 500 TPD Cattle Feed Plant in Idukki, Kerala. The shares were up by 0.63% to ₹19 on the BSE.

Machino Plastics Limited initiated construction of plastic automotive parts. This plant in Kharkhoda, Haryana will cater to Maruti Suzuki’s upcoming manufacturing facility. The shares were up by 3.44% to ₹241.95 on the BSE.

L&T Technology Services reported it is recognized as one of the top 15 Sourcing Standout by ISG, based on annual contract value won globally. Shares were up by 0.22% to ₹4422.85 on the BSE.

Hindalco Industries Ltd’s shares were up by 2.19% to ₹647.30 on the BSE. It’s subsidiary Novelis Inc. filed for an IPO with the SEC, intending to list its common shares on NYSE under the ticker symbol “NVL”. Their book-running managers include Morgan Stanley, BofA Securities, and Citigroup.

A total of 2,229 stocks were actively traded, 1,621 advanced, while 519 declined and 89 stocks remained unchanged where 67 stocks hit a 52 week high and 26 stocks hit a 52 week low at 9.41 am on the NSE.

Major gainers on the NSE- Shri Ram finance (3.25%), Power Grid corporation (1.86%), Jsw Steel (1.85%), Hindalco industries (1.82%), Hero Motocorp (1.50%)

Top losers include- Cipla (-2.38%), Asian paints (-1.05%), Nestle India (-0.85%), Tata Consumer products (-0.83%), Divis Laboratories (-0.72)

NON-CONVERTIBLE DEBENTURES

LIC Housing Finance takes Rs2105cr via five-year bonds at 7.87% coupon

India Infradebt takes Rs710cr via two-year and four-month bonds at 8.2450% coupon

Muthoot Finance takes Rs1200cr via three-year and two-month bonds at 9.02% coupon

360 One Prime takes Rs100cr via reissue of Feb 2027 bonds at 9.5670% yield

COMMERCIAL PAPERS

Tata Power, 3 months, 7.47% coupon, Rs500cr

Bajaj Financial Sec, 3 months, 8.05% coupon, Rs225cr

HDFC Sec, 3 months, 8% coupon, Rs250cr

ICICI Sec, 3 months, 7.95% coupon, Rs100cr

I-SEC PD, 3 months, 7.99% coupon, Rs400cr

Canara Bank

Stock Split Rs.10/- to Rs.2/-

Previous day Closing Price – Rs. 549.15

Ex - Stock Split 15 May 2024 (Tomorrow)

Last day trade for before split Today

Today

14 May 2024

Derivative Segment

* Apollo Tyres Ltd.

* Bharti Airtel Ltd.

* Colgate-Palmolive.

* Oberoi Realty Ltd.

* PVR Inox Ltd.

* Shree Cement Ltd.

* Siemens Ltd.

Cash Segment

* AIA Engineering Ltd.

* Apar Industries Ltd.

* Archean Chemical.

* BASF India Ltd.

* BLS International.

* Dalmia Bharat Sugar.

* Devyani International Ltd.

* Jubilant Ingrevia Ltd.

* Patanjali Foods Ltd.

* Radico Khaitan Ltd.

* Shyam Metalics.

* V-Mart Retail Ltd.

* Zydus Wellness Ltd.

15 May 2024

Derivative Segment

* Dixon Technologies.

* Granules India Ltd.

* Indian Energy Exchange.

* LIC Housing Finance.

* Power Finance Corporation.

Cash Segment

* Asahi India Glass Ltd.

* Clean Science And Tech.

* Cosmo First Ltd.

* Honeywell Automation.

* Jindal Stainless Ltd.

* Jyothy Labs Ltd.

* Mankind Pharma Ltd.

* MOIL Ltd.

* NCC Ltd.

* NLC India Ltd.

* Redington Ltd.

* Trident Ltd.

16 May 2024

Derivative Segment

* Biocon Ltd.

* Container Corporation.

* Crompton Greaves.

* GAIL (India) Ltd.

* Hindustan Aeronautics.

* Info Edge (India) Ltd.

* Mahindra & Mahindra.

* Vodafone Idea Ltd.

Cash Segment

* Akzo Nobel India Ltd.

* Caplin Point Laboratories.

* eClerx Services Ltd.

* Endurance Technologies.

* Infibeam Avenues Ltd.

* JK Paper Ltd.

* Kaynes Technology.

* KIMS

* Motherson Sumi.

* Prince Pipes.

* Prism Johnson.

* Ratnamani Metals.

* Restaurant Brands.

* Solar Industries.

* Triveni Turbine Ltd.

* V-Guard Industries.

17 May 2024

Derivative Segment

* Astral Ltd.

* Balkrishna Industries.

* Balrampur Chini.

* Bandhan Bank Ltd.

* JSW Steel Ltd.

* Zee Entertainment.

* Zydus Lifesciences.

Cash Segment

* Amber Enterprises.

* Delhivery Ltd.

* Glaxosmithkline Pharma.

* Global Health Ltd.

* Godrej Industries Ltd.

* JB Chemicals.

* NHPC Ltd.

* Pfizer Ltd.

* Poly Medicure Ltd.

* Polyplex Corporation.

* Rail Vikas Nigam Ltd.

* Rashtriya Chemicals.

* Shipping Corporation.

* Sobha Ltd.

* The Phoenix Mills Ltd.

* Varroc Engineering Ltd.

* Vinati Organics Ltd.

18 May 2024

Derivative Segment

Nil

Cash Segment

* Anupam Rasayan India Ltd.

* Data Patterns (India) Ltd.

* Gujarat Ambuja Exports Ltd.

* Ujjivan Small Finance Bank Ltd.

19 May 2024

Derivative Segment

Nil

Cash Segment

* Rainbow Children’s Medicare Ltd.

20 May 2024

Derivative Segment

* Bharat Electronics Ltd.

* City Union Bank Ltd.

* Deepak Nitrite Ltd.

* Oil & Natural Gas Corporation Ltd.

* Steel Authority Of India Ltd.

* The India Cements Ltd.

Cash Segment

* Indian Railway Finance Corporation Ltd.

* KRBL Ltd.

* Nesco Ltd.

* Oil India Ltd.

* Triveni Engineering & Industries Ltd.

* Whirlpool Of India Ltd.

21 May 2024

Derivative Segment

* Bharat Heavy Electricals Ltd.

* NMDC Ltd.

* PI Industries Ltd.

Cash Segment

* Aether Industries Ltd.

* Gujarat State Fertilizers & Chemicals Ltd.

* Hitachi Energy India Ltd.

* NMDC Steel Ltd.

22 May 2024

Derivative Segment

* Grasim Industries Ltd.

* Jubilant FoodWorks Ltd.

* Petronet LNG Ltd.

* Sun Pharmaceutical Industries Ltd.

* The Ramco Cements Ltd.

Cash Segment

* Avanti Feeds Ltd.

* Ester Industries Ltd.

* FSN E-Commerce Ventures Ltd.

* Gland Pharma Ltd.

* GMM Pfaudler Ltd.

* Gujarat Pipavav Port Ltd.

* HEG Ltd.

* Indigo Paints Ltd.

* Star Cement Ltd.

23 May 2024

Derivative Segment

* ITC Ltd.

* Page Industries Ltd.

Cash Segment

* Bikaji Foods International Ltd.

* Esab India Ltd.

* Vaibhav Global Ltd.

24 May 2024

Derivative Segment

* Ashok Leyland Ltd.

* Bosch Ltd.

* Hindalco Industries Ltd.

* Hindustan Copper Ltd.

* Manappuram Finance Ltd.

* Torrent Pharmaceuticals Ltd.

* United Spirits Ltd.

Cash Segment

* Jamna Auto Industries Ltd.

* JM Financial Ltd.

27 May 2024

Derivative Segment

Nil

Cash Segment

* Elgi Equipments Ltd.

* Lakshmi Machine Works Ltd.

* Natco Pharma Ltd.

* Sumitomo Chemical India Ltd.

28 May 2024

Derivative Segment

* Aditya Birla Fashion and Retail Ltd.

Cash Segment

* Amara Raja Energy & Mobility Ltd.

* Medplus Health Services Ltd.

* TTK Prestige Ltd.

29 May 2024

Derivative Segment

* Cummins India Ltd.

* Ipca Laboratories Ltd.

* Samvardhana Motherson International Ltd.

Cash Segment

* Deepak Fertilisers And Petrochemicals Corporation Ltd.

* Emami Ltd.

* RHI Magnesita India Ltd.

30 May 2024

Derivative Segment

* Apollo Hospitals Enterprise Ltd.

Ex-Dividend 15 May 2024 (Tomorrow)

Last date for Cum-Dividend Today

Ador Welding Ltd.

Dividend Per Share Rs.18.5

Previous day Closing Price – Rs. 1315.25

Aptus Value Housing Finance India Ltd

Dividend Per Share Rs.2.5

Previous day Closing Price – Rs. 317.7

Coforge Ltd

Dividend Per Share Rs.19

Previous day Closing Price – Rs. 4532.05

Hindustan Zinc Ltd.

Dividend Per Share Rs.10

Previous day Closing Price – Rs. 578.85

IRB Infrastructure Developers Ltd.

Dividend Per Share Rs.0.1

Previous day Closing Price – Rs. 63.93

Crude oil futures traded higher on Tuesday morning as the market expressed concerns over the potential impact of Canadian wildfires on crude oil supplies. At 9.08 am on Tuesday, July Brent oil futures were at $83.48, up by 0.14 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.23, up by 0.14 per cent. May crude oil futures were trading at ₹6617 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday morning against the previous close of ₹6594, up by 0.35 per cent, and June futures were trading at ₹6597 against the previous close of ₹6571, up by 0.40 per cent.

Buy, TP raised to Rs 5200 from Rs 3600

Forecast a threefold increase in HAL’s order book & 25% revenue growth in manufacturing topline (50% of revenue) in FY23-27E.

Order intake estimate is 100% above consensus

Raise EPS forecasts by 4-11% for FY25-27E

Neutral Call, Target Raised To Rs 7,610

Earnings Outperformance Continues

Increase CY24/CY25/CY26 EPS By 14%/9%/6% On Higher Margin Trajectory

Maintain Neutral As Growth Prospects Likely Priced In

Buy Call, Target Rs 750

Mgmt Expects 15-16% Growth In Premiums With Stable Margins In FY25

Will Prefer Higher VNB Growth Over Margins With Aspiration To Double Over 4-5 Yrs

Competition Has Receded Recently; Transition To RBC & IFRS Will Help Reign-In Aggression

Understand That Changes In Surrender Charges May Have Limited Impact

Jefferies on UPL

Buy Call, Target Cut To Rs 610

Posted Profit In Q4 Vs Est Of A Loss

But Net Debt At $2.65 Bn Is Higher Than Est

Avg Cost Of Debt Rose To 7% Now Vs 6% Last Year

Now Est Industry Headwinds To Persist In FY25

Marred By Brazil Floods & Chinese Generic Exports Impacting Prices

20% Of Higher Cost Inventory To Be Liquidated In FY25

Based On This, Cut FY26 EPS By Approx 8%, While FY25 Cut Is Sharper

MOSL On UPL

Neutral Call, Target Rs 560

Higher Rebates & High-Cost Inventory Liquidation Hit Margin

Operating Performance Beats Expectations

Revenue Declined YoY Across Regions Except EU & RoW

Mgmt Guided For 4-8% Revenue Growth In FY25

Mgmt Guided For Absolute EBITDA Growth Of Over 50% & CFO Of $300-400 m

Co Targets To Utilise Entire FY25 CFO For Debt Reduction

MS on Shriram Fin

Overweight Call, Target Rs 3,050

HFC Subsidiary’s Valuation Has Come Below Estimate As Well As What Media Indicated

Transaction Has No Material Impact On Or Valuation

HFC Subsidiary Is Just 4% Of Our SOTP Valuation For SHMF

CLSA on Shriram Fin

Outperform Call, Target Rs 2,800

Shriram’s 84% Stake In Housing Subsidiary Would Be Valued At Rs 3,900 Cr

This Would Lead To A P&L Gain Of Rs 2350 Cr (3% Of Market Cap)

CITI on Shriram Fin

Buy, TP Rs 2930

Approved to sell its stake (85%) in Shriram Housing Finance to Warburg Pincus for valuation of Rs46.3bn This values SHFL at 2.77x FY24 BV 

Value of SFL’s 85% stake translates to Rs96/sh compared to Rs140/sh ascribed by us

Overweight Call, Target Rs 1,701

Q1 Earnings Were 13% Ahead Of Estimate & 11% Above Consensus With Better Margins

Mgmt Optimistic On Near-Term Demand Trends In India

Mgmt Optimistic Growth Drivers In International Markets

MS on DLF

Equal-weight Call, Target Rs 900

Q4 Pre-Sales Lower Than Expected; FY25 Outlook Strong

FY24 pre-sales were 14% higher than guidance & 7% lower than Est

FY24 Revenue Increased 13% YoY, While EBITDA & Net Profit Were Up 23% YoY

Jefferies on DLF (1st cut)

Buy, TP Rs 895

With inventory exhausted & new launch slipping to 1Q, 4Q relatively subdued; though Rs7.3bn land-sale propped up P&L to a multi-yr high

Project pipeline for FY25 is further scaled-up & at Rs360bn (4x YoY) implies a strong year ahead

CLSA on Zomato

Buy Call, Target Raised To Rs 248

Strong Guidance For Blinkit; ESOP Impacts Profit In Q4

Food Delivery Steady

ESOP Costs Impact Q4 & Are Expected To Be Higher Going Ahead

Clear Focus On Quick Commerce Growth

Bernstein on Zomato

Outperform Call, Target Raised To Rs 230

Continues To Reinforce Our Conviction On Quick Commerce Biz

Achieves Breakeven Milestone For Blinkit (+Ve EBITDA In March)

Co Plans To Prioritise Growth Maintaining Long-term Adj EBITDA Target Of 4-5%

Core Biz Food Delivery Delivered Strong

MS on Zomato

Overweight Call, Target Rs 180

Steady Performance Continues; Pressing The Peddle On Quick Commerce Expansion

Adj EBITDA Was A Profit Of Rs 194 Cr Vs Est Of Rs 186 Cr

Cash Balance Was Rs 12,240 Cr

Co Proposed For A New ESOP Pool, 2% Of Diluted Share Capital

Jefferies on Zomato

Buy Call, Target Raised To Rs 230

Co Had A Dream Run Over Last 12 Months Reflected In Its Share Price Move

Mgmt Recognises That Investor Expectations Are Running High

Quick Commerce Was A Key Highlight In Q4

Now Focus Shifts To Aggressive Growth As Store Count Is Set To Double Next Year

Return Expectation Should Be More Modest At Least In Next Few Months

Nomura on Zomato

Buy Call, Target Rs 225

Food Delivery Business Continues Steady Growth Path

Quick Commerce To Prioritise Growth While Ensuring Neutral EBITDA In The Near Term

New ESOP Pool To Incentivise Employees, Approx 2% Dilution

Expect Q-Commerce To Clock 65-99% YoY Growth In GOV In FY25-26

Expect Q-commerce CM of 4.6% & Adj EBITDA Margin Of 1.9%

CITI on Zomato

Buy, TP Raised to Rs 235

Delivered largely in-line 4Q 

It also exited 4Q with Adj-EBITDA breakeven (b/e) in QC Mgmt. is sharply accelerating dark-store footprint in QC & expects to maintain Adj-EBITDA b/e in QC through FY25

Jefferies on AB Capital

Buy Call, Target Raised To Rs 255

Cons PAT (Pre Stake Sale Gains) Of Rs 810 Cr (+33%YoY) Was 6% Ahead Of Est

NBFC PAT Was 2% Below Est Due To Lower NIM

Among NLF Biz Life Insurance Was In-line; Health Trends Were Better

AMC Continues To Gain From Capital Mkt Tailwinds

At NBFC, Profit Growth Should Moderate, But Still Stay Healthy Over FY24-27

Expect APE Growth To Rebound In-line With Lower Margins

Expect Underwriting Performance To Improve In Health

BoFA Sec on AB Capital

Buy, TP Rs 235

FY25/26 guidance

i) NBFC: doubling FY23 AUM by FY26

ii) LI: >20% CAGR, 18-20% margins

iii) HI: 100% COR by FY26

Earnings broadly in line; NBFC/HFC loan book grew 7% QoQ, NIMs down 24bp/40bp QoQ

CLSA on JSPL

Underperform Call, Target Raised Rs 940

Q4 In-line With Est; Debt Rises On Higher Capex

Strong Steel Prices To Aid Profitability

Expansion Projects Key To Watch For

Looks Best Placed Among Ferrous Names

MS on JSPL

Underweight Call, Target Rs 655

EBITDA Beat Estimate

Volumes Were Higher Than Est; Adjusted For This, EBITDA Was Broadly In Line

Realisations Were Weaker But Opex Did Better, Helped By Volumes

Management Commentary Implies Good Margin Expansion In Q1FY25

Underweight On Expensive Valuation

Indian benchmark indices, Sensex and Nifty, opened higher on Tuesday following a rebound in the last session, overcoming the previous week’s volatility. Focus will be on Shriram Finance’s announcement to sell its housing finance business. The 30-share BSE Sensex climbed 204.89 points to 72,981.02 in early trade. The NSE Nifty gained 73.10 points to 22,177.15. 

Monday saw a lower opening that turned positive, supported by pharma stocks and HDFC Bank.

Ajit Mishra of Religare Broking, expects stability in banking majors and select heavyweights in IT and energy sectors to drive further upward movement, but breaking the 22,300-22,400 range could be challenging.

Foreign selling and uncertainty surrounding the Indian election outcome have kept investors cautious, reflected in the high volatility index. Results of the election are due on June 4.

Foreign investors sold Indian shares worth Rs 4,499 crore on Monday, while domestic institutional investors bought Rs 3,563 crore in stocks.

Asian markets outside Japan hovered around 15-month highs, and Wall Street closed mixed. Investors are now awaiting the U.S. inflation data on Wednesday for further rate cut clues.

Shriram Finance’s decision to sell its housing finance business to Warburg Pincus for $554.6 million also adds to the day’s focus.

New York-based private equity firm Warburg Pincus will acquire Shriram Housing Finance Ltd (SHFL) in a deal valued at ₹4,630 crore for equity and convertible instruments.

Warburg Pincus will acquire the stake through its affiliate Mango Crest Investment Ltd . At present Shriram Finance Ltd holds a controlling stake in SHFL while private equity firm Valiant Partners L.P. (Valiant), Mauritius, holds the remaining ownership.

As a part of this transaction, Valiant and Shriram Finance will completely divest its equity stake to Warburg Pincus. The existing management team of SHFL led by Ravi Subramanian, Managing Director and Chief Executive Officer, will continue to lead the business. The company has a pan-India presence with 155 branches with an AUM of ₹13,762 crore, net worth of ₹1,924 crore and revenues of ₹1,430 crore, as of March 31, 2024.

UBS on HAL: Maintain Buy on Company, raise target price at Rs 5200/Sh (Positive) 

Jefferies on Thermax: Maintain Buy on Company, raise target price at Rs 5480/Sh (Positive) 

Jefferies on Piramal Pharma: Maintain Buy on Company, raise target price at Rs 180/Sh (Positive) 

Jefferies on VBL: Maintain Buy on Company, raise target price at Rs 1650/Sh (Positive) 

Jefferies on AB Capital: Maintain Buy on Company, raise target price at Rs 255/Sh (Positive) 

CLSA on Shariram Fin: Maintain Outperform on Company, target price at Rs 2800/Sh (Positive) 

Kotak on Shariram Fin: Maintain Buy on Company, target price at Rs 3000/Sh (Positive) 

MS on Shariram Fin: Maintain Overweight on Company, target price at Rs 3050/Sh (Positive) 

Bernstein on Zomato: Maintain Outperform on Company, raise target price at Rs 230/Sh (Positive) 

CLSA on Zomato: Maintain Buy on Company, target price at Rs 248/Sh (Positive) 

UBS on Zomato: Maintain Buy on Company, target price at Rs 250/Sh (Positive) 

Citi on Zomato: Maintain Buy on Company, target price at Rs 235/Sh (Positive) 

Jefferies on Zomato: Maintain Buy on Company, target price at Rs 230/Sh (Positive) 

MS on VBL: Maintain Overweight on Company, target price at Rs 1701/sh (Positive) 

MOSL on VBL: Maintain Buy on Company, target price at Rs 1720/sh (Positive) 

Emkay on VBL: Maintain Buy on Company, target price at Rs 1650/sh (Positive) 

Nuvama on JSPL: Maintain Buy on Company, target price at Rs 1185/sh (Positive) 

Jefferies on HDFC Life: Maintain Buy on Company, target price at Rs 750/sh (Positive) 

Jefferies on UPL: Maintain Buy on Company, target price at Rs 610/sh (Positive) 

Investec on Home First: Initiate Buy on Company, target price at Rs 1200/sh (Positive) 

Nomura on ABB: Maintain Buy on Company, raise target price at Rs 7610/Sh (Positive) 

Jefferies on Nuvama: Maintain Buy on Company, target price at Rs 6000/Sh (Positive) 

Jefferies on UPL: Maintain Buy on Company, cut target price at Rs 610/Sh (Neutral) 

MOSL on UPL: Maintain Buy on Company, cut target price at Rs 560/Sh (Neutral) 

Citi on JSPL: Maintain Sell on Company, target price at Rs 800/Sh (Neutral) 

CLSA on JSPL: Maintain Underperform on Company, raise target price at Rs 940/Sh (Neutral) 

MS on DLF: Maintain Equal weight on Company, target price at Rs 900/Sh (Neutral) 

Citi on Thermax: Maintain Sell on Company, target price at Rs 2986/Sh (Neutral) 

Nuvama on Thermax: Maintain Sell on Company, target price at Rs 2475/Sh (Neutral) 

MS on Zomato: Maintain Overweight on Company, target price at Rs 180/Sh (Neutral) 

MS on JSPL: Maintain Underweight on Company, target price at Rs 655/Sh (Negative)

(JSP IN, Mkt Cap USD11.5b, CMP INR939, TP INR1090, 16% Upside, Buy)

Motilal Oswal

- JSP reported revenue of INR135b (-1.5% YoY/ +15% QoQ) in 4QFY24, which was above our est. of INR122b. ASP stood at INR67,099/t (flat YoY/ +4% QoQ) vs. our est. of INR62,821/t.

- EBITDA stood at INR24b (+12% YoY/-14% QoQ), below our est. of INR26b, due to higher cost. EBITDA/t came in at INR12,162/t (+12% YoY/-14% QoQ) vs. our est. of INR13,286/t. Coal costs rose USD10-20 per ton QoQ. APAT stood at INR9b (+52% YoY/-51% QoQ) vs. our est. of INR12.5b in 4QFY24.

- Production volume grew 2% YoY and 6% QoQ to 2.05mt (our est. 2.04mt). Sales volume was slightly above our est. at 2.01mt (-1% YoY/+11% QoQ). Exports share remained flat YoY at 11% of total revenue in Q4FY24.

- In FY24, revenue declined 5% YoY to INR500b, led by flat volume and weak realization. EBITDA/APAT increased by +3%/+62% YoY to INR102b/INR59b, because of RM cost moderation and an improved product mix in FY24. Sales volume was flat YoY at 7.7mt vs. our est. of 7.6mt in FY24.

- Net debt as of Mar’24 stood at INR112b vs. INR91b in 3QFY24, implying a net debt-to-EBITDA ratio of 1.1x as of Mar’24 vs. 0.92x in 3QFY24.

Rating: ACCUMULATE

Target Price : INR 1628

Upside : 6%

CMP : INR 1535 (as on 10 May 2024)

Click Here for Quarterly Update

Elara Securities 

Higher discount hurts margin 

In-line revenue; EBITDA below our estimates 

APL Apollo Tubes (APAT IN) net sales improved ~6% YoY and ~13% QoQ to ~INR 45.7bn, largely in line with our and Consensus estimates of ~INR 44bn and ~INR 45bn, respectively. However, EBITDA declined ~13% YoY and remains flat QoQ at INR 2.8bn, slightly below our and Consensus estimates of ~INR 3.0bn and INR 3.1bn, respectively. PAT fell ~16% YoY but rose~3% QoQ to ~INR 1.7bn. Net cash was ~INR 0.2bn as on end-FY24 vs net debt of ~INR 2.4bn as on end-FY23. Further, working capital days fell from five days in FY23 to one in FY24. 

EBITDA/tonne falls ~17% YoY and ~11% QoQ

Sales volume grew ~4% YoY and ~12% QoQ to ~0.68mn tonne. Realization was up ~2% YoY but flat QoQ at INR 67,315/tonne. Operating cost moved up ~5% YoY and ~2% QoQ to INR 66,102/tonne. EBITDA/tonne contracted ~17% YoY and ~11% QoQ to INR 4,132 due to 1) higher discount offered to customers to achieve volume growth, and 2) increased sale of low-margin roofing sheet products. 

Volume CAGR of 20-25% over the next three years

As per management, FY24 volume of ~2.6mn tonne was below guidance of ~3mn tonne, primarily due to the slowdown in construction activities and delay in ramp-up of Dubai as well as Chhattisgarh-based Raipur units. Management aims for a volume CAGR of 20-25% over the next three years on 1) rise in capacity from the current 3.8mn tonne to 5.0mn tonne in FY25, and 2) ramp-up in utilization of Raipur & Dubai units.

Valuation: reiterate Accumulate with a lower TP of INR 1,628

We cut our EBITDA by ~20% for FY25E and ~10% for FY26E to factor in volume underperformance. However, we retain our long-term positive stance and believe capacity addition & gradual ramp-up will be key volume drivers. Also, APAT’s industry-leading capacity and strong brand positioning bode well for margin. Despite being in capex mode, the company has turned net cash in FY24 and management targets to achieve a net cash of ~INR 10bn by end-FY25. Therefore, we reiterate Accumulate. We roll over to March 2026E from December 2025E, with a new TP of INR 1,628 from INR 1,679 on 30x (unchanged) March 2026E P/E.

Rating: SELL

Target Price : INR 4306

Downside : 8%

CMP : INR 4658 (as on 10 May 2024)

Click Here for Quarterly Update

Elara Securities

Stable quarter

Superior product mix drives margin improvement

Eicher Motors (EIM IN) Q4 consolidated EBITDA rose 21% YoY and 4% QoQ at INR 10.3bn, with 4% YoY and flat QoQ volume growth in Royal Enfield (RE). EBITDA margin improved 40bp QoQ to 26.5% but was below our estimates by 30bp, led by a rise in employee expenses. Standalone ASP rose 3.6% QoQ and 5% YoY, led by improved product mix. VECV revenue surged 14% QoQ while was flat YoY at INR 62.7bn, with an EBITDA margin at 7.8%, down 20bp QoQ, and a PAT of INR 2.3bn. VECV’s average selling price (ASP) improved 3.7% YoY.

Higher momentum likely in the exports markets

The company saw improvement in retail sales in the exports market in Q4, which led to higher wholesales. It expects its new completely knocked down (CKD) plants to support exports demand once momentum improves. EIM expects no major movement in commodity prices and margin to expand, driven by improving product mix and increasing non-motorcycling revenue. It did not undertake any major price hikes in Q4. Management expects the middle weight motorcycle segment to grow in double digits in FY25, led by new launches; it plans to launch a product short term in the 450cc category.

Valuation: retain Sell with a higher TP of INR 4,306 

While margin trajectory improved on improving product mix, we expect underperformance in the premium segment for RE going forward. New launches in the last few years for RE haven’t been able to garner market share gains owing to intra-company cannibalization. In FY24, RE lost market share YoY on the back of rising competition. We expect RE to largely grow inline with the MC industry in FY25 despite new launches. The proportion of current RE customers upgrading to a new model may not increase significantly, as has been the case with historical launches. While one single competitor has not been majorly successful till now, combined volumes of competition have effectively taken away the outperformance of RE. Aggressive pricing from competitors would constrain RE’s pricing power in the medium term. We expect a single-digit volume CAGR for RE during FY24-26E with margin peaking. We reiterate Sell with a higher TP of INR 4,306 from INR 3,650 on 24x (from 22x) June26E P/E for the RE business and 11x (from 10x) June26E EV/EBITDA for VECV.

Madhavi Arora- Lead Economist, Emkay Global Financial Services

“The April print was no surprise and inflation will likely tick up to 5.0-5.1% in the next month. We see more of the FY24 trends continuing in FY25. Considerable uncertainty prevails in the food price outlook. Despite healthy progress in Rabi production, uneven seasonality in vegetable prices together with increasing incidence of climate shocks warrant careful monitoring. The RBI cannot do much to influence food supply management, but this puts pressure to stay vigilant on domestic dynamics. Upside risks to inflation also emanate from geopolitical developments and their impact on supply chains as well as uncertainty around volatility in commodity prices in global financial markets and the FX space.

However, percolation of monetary policy will continue to put downward pressure on core inflation. We see FY25E inflation at 4.6% (RBI: 4.5%), with core inflation again undershooting headline inflation, by ~90bps at 3.7% (4.4% in FY24). There is likely to be further easing of headline inflation in coming months, before the unfavorable base effects kick-in in 2HFY25”.

Manali Petrochemicals Limited (MPL), a leading Petrochemical manufacturing company and part of AM International, Singapore, announced its Audited Financial Results for the Fourth Quarter FY24 and for the Year ended FY 2023-24 today.

Financials:

During the quarter ended 31st March 2024, revenue and profit after tax on consolidated basis was Rs. 256.28 crore and Rs.1.3 crore, respectively and for the year ended 31st March 2024, revenue and profit after tax on consolidated basis was Rs.1032.35 crore and Rs.19.21 crore, respectively.

During the year, the company continued to get affected by the dumping of imported materials at cheaper prices and the increase in raw materials cost which have impacted our margins. Despite the temporary disruptions caused on account of Cyclone Michaung in the month of December 2023, the Company could maintain its top line at consolidated level this year.

Sequential improvement in EBITDA to endure

Specialty Chemicals ▶Result Update ▶May 13, 2024 TARGET PRICE (Rs) : 800

Aarti’s Q4 EBITDA at Rs2.8bn (+9% QoQ; +12% YoY) was in line with our estimates. Management maintained FY25 EBITDA guidance at Rs14.5-17bn and increased volume guidance to 20-30% from 20-25% on better demand visibility. This is the third quarter of sequential improvement in EBITDA, driven by higher volume growth (pricing remains stable) and operating leverage. Aarti is seeing better demand recovery in discretionary spends, whereas agro and pharma are still muted due to weak macros. Management has raised its guidance on capex to Rs15-18bn for FY25 (vs. Rs12-15bn to be spent on several growth projects, including chlorotoluene) and on debt to Rs34-38bn. We tweak our FY25/26 estimates by 1-3%, on higher-interest outlay on incremental debt. We retain BUY on Aarti, and nudge up our TP to Rs800/sh (30x Mar-26E EPS)

Motilal Oswal

Nifty50 in Apr’24 was above 22,600 points with gains of 1.2% on a MoM basis. Overall ADTO declined ~3% MoM to INR446t, with F&O ADTO declining ~3% MoM and Cash ADTO increasing ~6% MoM. Retail cash ADTO increased ~8% MoM to INR445b. Demat account additions were flat at ~3.1m in Apr’24 (average monthly additions of 3.1m in FY24). Further, the number of active users on NSE increased for the tenth consecutive month to ~41.8m in Apr’24 from ~31.9m in Jul’23.

Demat additions remain flat MoM

- The total number of demat accounts increased to 154m in Apr’24. New account additions were flat at 3.1m in Apr’24 (average monthly additions of 3.1m in FY24).

- In Apr’24, CDSL continued to gain market share in terms of the total number of demat accounts and also an increase in the market share on a MoM basis. On a YoY basis, NSDL lost 400bp/470bp market share in total/incremental demat accounts.

NSE active clients increased sequentially

- The number of active clients at NSE increased 2.6% MoM to 41.8m in Apr’24. Currently, the top five discount brokers account for 63.9% of total NSE active clients vs. 60.1% in Apr’23.

- Performance of key discount brokers:

· Zerodha reported a 1.5% MoM increase in its client count to 7.4m, with a 20bp fall in market share to 17.7%.

· Groww reported a 4.1% MoM increase in its client count to 9.9m, with a 30bp rise in market share to 23.7%.

· Angel One reported a 3.1% MoM increase in its client count to 6.3m, with a 10bp rise in market share to 15.1%.

· Upstox reported a 1.5% MoM increase in its client count to 2.6m, with a 10bp fall in market share to 6.1%.

- Performance of key traditional brokers:

· ICICI Sec reported a 0.9% MoM increase in its client count to 1.9m, with a -10bp fall in market share to 4.5%.

· IIFL Sec reported a 1.1% MoM increase in its client count to 0.4m, with a market share to 1.1%.

BSE F&O ADTO increases MoM

- Total ADTO declined 3% MoM (up 84% YoY) to INR446t, with F&O ADTO declining 3% MoM and Cash ADTO increasing 6% MoM.

- Total ADTO from BSE increased 6% MoM (led by growth in F&O volumes) whereas the total ADTO for NSE declined 5.1% MoM.

- On a MoM basis, market share of BSE in the total cash T/O segment declined to ~6.7% in Apr’24 (Mar’24 ~8.5%). BSE’s market share in the total options notional T/O segment and options premium T/O improved to ~19.1% from ~17.5% in Mar’24 and to ~9.8% from ~7.2% in Mar’24, respectively.

Overall ADTO on MCX increased ~17.5% MoM

- Total volumes on MCX increased MoM to INR 34.7t in Apr’24; volumes in OPTFUT increased 24.9% MoM to INR 29.2t.

- Overall ADTO increased 17.5% MoM to INR1.6t. Options ADTO increased 13.6% MoM. Futures ADTO increased 43.7% MoM, led by an increase in Silver ADTO (77.4% MoM) and Gold ADTO (12.1% MoM).

- Options ADTO increased 13.6% MoM on account of a 13.5%/351.6% increase in Crude Oil/Silver ADTO. On the other hand, Gold ADTO declined 46.3% on a MoM basis.

Primary market: In Apr’24, an amount of INR255.6b was raised via 4 IPOs including Vodafone FPO.

Motilal Oswal

Key observations

- The Nifty ended 1.2% higher MoM at 22,605 in Apr’24 after making new highs of 22,783. The index has closed higher for the third straight month now. Notably, the index was extremely volatile and swung around 1,006 points before closing 278 points higher. DIIs recorded the ninth consecutive month of inflows in Apr’24 at USD5.3b. FIIs recorded outflows of USD1.1b in Apr’24.

- Investors continued to park their money in mutual funds, with inflows and contributions in systematic investment plans (SIPs) reaching a new peak of INR203.7b in Apr’24 (up 5.7% MoM and 48.4% YoY).

- Equity AUM for domestic MFs (including ELSS and index funds) increased 5.3% MoM to INR27t in Apr’24, led by a rise in market indices (Nifty up 1.2% MoM) and an increase in sales of equity schemes (up 10.6% MoM to INR654b). The pace of redemptions increased to INR400b (up 15.1% MoM). Consequently, net inflows increased to INR254b in Apr’24 from INR244b in Mar’24.

- Total AUM of the MF industry rose 7.2% MoM to INR57.3t in Apr’24, driven by a MoM increase in AUM for liquid (INR1,406b), equities (INR1,349b), income (INR520b), balanced (INR217b), and other ETF (INR180b) funds.

Some interesting facts

- The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights of Private Banks, Metals, Utilities, Telecom, Consumer Durables, and Real Estate increased, while those of Technology, Healthcare, Oil & Gas, Consumer, Retail, Cement, Insurance, and Textiles moderated.

- Private Banks’ weights increased for the second consecutive month to 17.2% in Apr’24 (+30bp MoM; -180bp YoY).

- Metals’ weight rose to a 31-month high of 2.7% (+30bp MoM, +70bp YoY) in Apr’24.

- Technology‘s slipped to third place from the second spot in MF allocation, with weights declining for the second consecutive month to touch a 50-month low of 8% (-70bp MoM, -120bp YoY) in Apr’24.

- Healthcare’s weight, after touching a 31-month high of 7.4% in Mar’24, moderated 30bp MoM in Apr’24 to reach 7.1%.

- In terms of value increase MoM, five of the top-10 stocks were from the Banking space: HDFC Bank (+INR119.9b), Axis Bank (+INR106.8b), ICICI Bank (+INR88b), SBI (+INR54.1b), and Kotak Mahindra Bank (+INR38.4b)

(SYRMA IN, Mkt Cap USD0.8b, CMP INR395, TP INR535, 36% Upside, Buy)

Motilal Oswal

Operating performance below estimates

- SYRMA reported a weak operating performance in 4QFY24, with EBITDA margins declining 200bp YoY due to an unfavorable business mix (higher share of low-margin consumer business – 46% in 4QFY24 vs. 40% in 4QFY23).

- However, revenue growth was strong at 67% YoY in 4QFY24, led by broad-based growth across verticals.

- Factoring in the 4QFY24 performance and an increase in the consumer mix (low-margin vertical), we have lowered our EBITDA estimates for FY25/FY26 by 7%/13%. Accordingly, we have cut our EPS estimates by ~9%/15% in FY25/FY26. We retain our BUY rating on the stock with a TP of INR535 (35x FY26E EPS

(PIRPHARM IN, Mkt Cap USD2.4b, CMP INR154, TP INR190, 24% Upside, Buy)

Motilal Oswal

Ends FY24 with strong turnaround

- Piramal Pharma (PIRPHARM) delivered better-than-expected operational performance for the quarter. Compared to adj. loss of INR800m in FY23, PIRPHARM’s effort has led to adj. PAT of INR560m for FY24. This was largely driven by improved execution in Contract development and manufacturing organization (CDMO) business and India consumer health business. Operational constraints adversely impacted sale growth in the complex hospital generics (CHG) segment for FY24.

- We raise our EBITDA estimate by 11%/22% for FY25/FY26 to factor in a) robust order inflow in the CDMO segment, b) the expansion of on-patent commercial manufacturing within the CDMO segment, and c) the strategic initiatives to strengthen its presence in ROW markets and pursue backward integration in the CHG segment.

- However, we lower PAT estimate for FY25 by 17% to factor in higher tax rate. We value PIRPHARM on an SOTP basis (17x EV/EBITDA for CDMO business; 13x EV/EBITDA for CHG and India consumer health business) to arrive at a price target of INR190.

- PIRPHARM has demonstrated a strong turnaround in its business across segments, showcasing improved sales growth and profitability in FY24. Anticipating further momentum, particularly in the CDMO and CHG segments, along with enhanced operating leverage over the next 2-3 years, we maintain our BUY rating on the stock

(UPLL IN, Mkt Cap USD4.8b, CMP INR534, TP INR560, 5% Upside, Neutral)

Motilal Oswal

Operating performance beats expectations

- UPLL reported a weak quarter as revenue declined 15% YoY, primarily due to lower agrochemical prices (down 15% YoY) and volume decline of 2% YoY. EBITDA margins contracted 450bp YoY largely due to higher rebates (~5% price impact) and liquidation of high-cost inventory, partly offset by an improved product mix and a lower cost of goods sold.

- Gross debt (excluding perpetual bonds) increased to INR284.4b as of Mar’24 from INR230b as of Mar’23. Net debt (excluding perpetual bonds) increased to INR222b as of Mar’24 from INR169b as of Mar’24.

- Factoring in a better-than-expected performance in 4Q and an improving operating scenario in FY25, we raise our FY25E EPS by 21% while maintaining our FY26E EPS. Reiterate Neutral with a TP of INR560.

(APAT IN, Mkt Cap USD5.2b, CMP INR1565, TP INR1800, 15% Upside, Buy)

Motilal Oswal

Earnings below our estimate

- APL Apollo Tubes (APAT) reported muted sales volume of 679KMT (up 4% YoY and 12% QoQ) in 4QFY24, led by channel de-stocking due to steel price corrections. Further, EBITDA/MT declined ~17% YoY to ~INR4,132, due to higher rebates and discounts offered by APAT to counter the inventory destocking.

- We cut our FY25E earnings by 8% due to lower EBITDA/MT (reduced by 4%), while largely maintaining our earnings for FY26E. We value the stock at 32x FY26E EPS to arrive at a TP of INR1,800. Reiterate BUY.

(TMX IN, Mkt Cap USD6.6b, CMP INR4609, TP INR4180, 9% Downside, Neutral)

Motilal Oswal

Thermax 4QFY24 results beat our estimates, with in-line revenue and higher-than-expected PAT on strong margins. 4Q revenue/EBITDA/PAT grew by 20%/37%/20% YoY. Order inflows stood at INR23b/INR101b in 4Q/FY24 (up 2%/4% YoY), both lower than our estimates. Inflows lacked large-sized orders during the year. Though the working capital cycle is still comfortable, free cash flow was affected by large capex, primarily for TOESL/FEPL. Borrowings jumped 55% YoY to INR12.5b. The company expects the finalization of large-sized order inflows over the next few quarters. We raise our estimates by 4%/10% for FY25/26 to factor in better margins. We revise our TP to INR4,180, based on a higher multiple for core business to bake in expected revival in private capex as well as thermal ordering. We maintain our Neutral stance on Thermax as we believe that incremental investments in TOESL/FEPL will weigh on balance sheet strength and near- to medium-term return ratios.

(VBL IN, Mkt Cap USD23b, CMP INR1477, TP INR1720, 16% Upside, Buy)

Motilal Oswal

Earnings above our estimates

- Varun Beverages (VBL) reported a revenue growth of 11% YoY in 1QCY24, led by volume growth (up 7% YoY) and high realization (up 4% YoY to INR180/case).

- EBITDA margins expanded 240bp YoY, led by improved gross margins (up 390bp YoY). This improvement can be attributed to decreased PET prices, the company’s concentrated efforts to minimize sugar content, and the adoption of lighter packaging materials.

- We largely maintain our CY24/CY25/CY26 earnings. We reiterate our BUY rating on the stock with a TP of INR1,720

Outperformance continues; Best placed to play luxury tailwind; BUY

Retail ▶ Update ▶ May 14, 2024 TARGET PRICE (Rs) : 2,950

Ethos continued to outperform, with 22%/27% revenue growth in Q4/FY24. Advance investments in Employees (planned store roll-outs/new vertical) and Tech/App led to a ~140bps miss on EBITDA margin which should normalize in coming quarters. Back-ended store openings in FY25 and the general elections should cause some growth moderation in H1, driving a 5-7% cut to our revenue estimate. However, margin tailwind from the expected custom duty waiver and MRP revisions (7-8% price hike) should more than offset the negative leverage and lead to margin gains in FY26E. With the landmark duty agreement, Ethos expects India allocation by luxury brands to materially improve, and targets 10x revenue by FY34 (~25% CAGR). Ethos is also making the right investments in mobile app, AI, new verticals, network expansion, exclusive brands (Favre Leuba), and marketing, to gain market share. Despite the weak macros, Ethos has topped most retail formats, and the recent correction (down ~20% over the last 3M) only adds to its attraction; retain BUY and TP of Rs2,950/share.

Exponential trends in India; maintain ADD on outperformance

Retail ▶Result Update ▶May 14, 2024 TARGET PRICE (Rs) : 1,650

VBL’s Q4 EBITDA was 8-13% ahead of estimates, led by better margins as revenue was in-line. Trends for the peak summer season remain robust, with 100% utilization of enhanced capacity in Apr-24 (which is up ~40% vs. the CY22 season). Given VBL’s strong track-record of successful turnarounds for Pepsico, the acquired South Africa business (SA) improves VBL’s medium-term growth profile, as Pepsico’s market share is in a low single-digit in this large 1bn case market. Further, traction in DRC (Africa) and expanding engagement in Pepsico’s foods business remain potential upsides. Our EPS estimates increase by 5-9% on strong trends and margin beat in the India business. Though consolidation of the SA business drives a ~9% increase in revenue estimate, we believe EPS contribution will be largely neutral for the forecasted period. We increase our multiple by ~10%, which is largely attributable to value creation in the SA market; maintain ADD with TP of Rs1,650 (Rs1,500 earlier)

Reserve Bank of India’s gold holding increased by 27.46 metric tonnes in FY24 to 822.10 metric tonnes as at end-March 2024, according to its “Half Yearly Report on Management of Foreign Exchange Reserves”.

In value terms (USD), the share of gold in the total foreign exchange reserves increased to about 8.15 per cent as at end-March 2024 from about 7.81 per cent as at end-March 2023.

Buzzing Stocks: Hindalco, Bharti Airtel, JK Cement, Hinduja GLobal, Shriram Finance, TCS, Cochin Shipyard, Zomato, Coromandel International, UPL, GE Shipping, RBL Bank, Hinduja Global, Anant Raj, Alkosign, DJ Mediaprint

Investec

The recent fall in price provides an attractive buying opportunity. We believe the market is reacting to a) the increase in the BT out rate and b) 40bps QoQ NIM decline. However, HFFC continues to outperform peers on growth and profitability -- AUM growth of 35% with RoA/RoE of 3.6%/16.1% with stable asset quality for Q4. The 40bps QoQ margin decline is not a true reflection of profitability as it is linked to an increase in leverage and balance sheet liquidity. Spread declined 10bps QoQ. We view HFFC as the most scalable affordable HFC with a business model that is replicable on a pan-India basis. With AUM at just ~Rs100bn, there is a long growth runway. Valuations are now attractive at 2.4x FY265E P/B. BUY.

ABB India: TK Sridhar, CFO

ABB India Q1CY24 Results: Strong Beat, Sharp Uptick In Q1 Margins |

Aarti Ind: Rashesh Gogri, VC&MD

We Will Continue To Maintain FY25 EBITDA Guidance of ?1,450-1,700 Crore: Aarti Industries

Bank of India: Rajneesh Karnatak, MD CEO

Agriculture & MSME Contributed To Over 50% Of Q4 Slippage: Bank of India

CCL Products: Challa Srishant, MD

Expect The Domestic Brand Business To Move To ?350-400 Cr In FY25: CCL Products India

Dr Lal PathLab: Om Prakash Manchanda, CEO

Aspiration Is To Grow In Double Digit With Margin At 26% In FY25: Dr Lal Pathlabs

Dr Lal PathLab: Shankha Banerjee, Group CEO

Dr Lal Pathlabs: Improvement In Revenue Mix, Company’s Plan To Achieve Double Digit Growth In FY25?

Finolex Ind: Ajit Venkataraman, MD

See Further Improvement In Margin Going Forward: Finolex Industries

GE Shipping: G Shivakumar, ED & CFO

Improvement In Rates Would Flow To Bottomline For Offshore Biz: GE Shipping

Intellect Design: Arun Jain, CMD

GeM Contract Contributed To Revenue, But Had Low Margin: Intellect Design Arena

Intellect Design: Arun Jain, CMD

Intellect Design Arena’s Q4 Performance & FY25 Outlook: What Factors Are At Play & What Lies Ahead?

Events today…

Results today…

Replays available at www.researchbytes.com

Provisional Cash Rs. In Crs.

FII/FPI: NET SELL: -4498.92 

(10309.45 - 14808.37) 

DII: NET BUY: +3562.75 

(12655.75 - 9093)

Retail inflation in the country hit a 11-month low in April 2024 at 4.83 per cent, slightly lower than the March 2024 print of 4.85 per cent.

The latest consumer price index (CPI)-based inflation print is, however, higher than the April 2023 level of 4.70 per cent, data released by the Ministry of Statistics & Programme Implementation (MOSPI) showed.

A comforting factor is that the ongoing seven-phased General Elections has so far had no impact on the headline inflation number, although this was a concern at some point of time.

10:00 AM Tube Investment

Dial: +91 22 6280 1259

10:30 AM Cera Sanitaryware

(Press Release )

Dial: +91 22 6280 1141

11:00 AM Neuland Lab

11:00 AM Nelcast

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11:00 AM Chalet Hotels

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11:30 AM Hi Tech Pipes Limited

Dial: +91 22 6280 1525

2:00 PM Menon Bearings

2:30 PM Devyani Internt

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3:00 PM Yasho Industrie

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3:00 PM Ganesh Housing

Dial: +91 22 6280 1557

( Hosted by Go India Advis )

3:30 PM Apar Ind

Dial: +91 22 6280 1174

4:00 PM Zydus Wellness

Dial: +91 22 6280 1144

4:00 PM Matrimony.com

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4:00 PM Bajaj Electric

Dial: +91 22 6280 1148

4:00 PM Sharda Crop

Dial: +91 22 6280 1342

4:00 PM Siyaram

(Results)

Dial: +91 22 6280 1550

4:00 PM Ganesh Housing

Dial: +91 22 6280 1557

4:00 PM J. K. Cement

Dial: 91226280 1143

4:30 PM DLF

(Press Release )

4:30 PM AIA Engineering

Dial: +91 22 6280 1282

5:00 PM Jubilant Ingrev

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Karur Vysya Bank : (replay)

Inox India Ltd : (replay)

Control Print : (replay)

Ethos Limited : (replay)

AB Capital : (replay)

SMC GLOBAL SECU : (replay)

SPENCER : (replay)

Electrosteel : (replay)

Fine Organics : (replay)

Sutlej Textiles : (replay)

Results today …

Recent interviews …

Replays available at www.researchbytes.com

Can set alert for them at www.researchbytes.com

* BALRAMCHIN

* CANBANK

* GMRINFRA

* HINDCOPPER

* PEL

* PNB

* VODAFONE IDEA

* SAIL

* ZEEL

1) BOB’s 4Q PAT was 8%/10% ahead of Consensus/IIFLe led by better NIM, healthy fee income and non-II.

2) Loan growth of 4% QoQ/ 12.5% YoY was broad based. Deposit growth picked up (7% QoQ) led by international deposits (11% QoQ), driving 2ppt improvement in LDR to 80%. With limited room to increase LDR, we build ~12% loan Cagr over FY25-27.

3) Adj. NIMs widened 5bps QoQ led by loan yield expansion and drawdown of excess LCR (121% now), which was partly offset by 10bps increase in CoD. We expect stable NIM in the near-term due to limited residual deposit re-pricing, and slower NIM compression in a rate-cut cycle due to the highest share of MCLR linked loan book (50%).

4) Despite higher slippages in MSME and Agri, GNPA ratio improved 16bps QoQ on the back of better recoveries/upgrades. FY24 credit cost of 60bps was higher, as it fully provided for Go First exposure (18bps impact), and is confident of recovery given that it’s fully collateralised and one-third is government guaranteed. We expect credit cost to normalise to avg. 80 bps over FY25-27.

5) We raise our est. by 7-9% and TP to Rs300 (18% upside) based on 1.1x FY26 P/B. Upgrade the stock to BUY as it is trading at 40% discount to SBI, despite similar profitability (avg. ROA/ROE of 1%/14% over FY25-26.

Home Depot, Inc. (The) (Pre market) (Sector- Construction)

Alibaba Group Holding Limited (Pre market) (Sector- Technology)

Sony Group Corporation (Pre market) (Sector- Technology)

Sea Limited (Pre market) (Sector- Technology)

On Holding AG (Pre market) (Sector- Textile)

Alcon Inc. (TENT) (Sector- Healthcare)

11:30 U.K. Claimant Count Change (Expected: 13.9K versus 10.9K)

12:00 INDIA WPI Inflation y/y (Expected: 0.70% versus 0.53%)

18:00 U.S. PPI m/m (Expected: 0.30% versus 0.20%)

19:30 U.S. Fed Chair Powell Speaks

Economic Calendar – 15.05.2024

Hong Kong and Korea @ Market Holiday

14:30 EURO Final GDP q/q (Expected: 0.30% versus 0.30%)

18:00 U.S. CPI m/m (Expected: 0.40% versus 0.40%)

18:00 U.S. Retail Sales m/m (Expected: 0.40% versus 0.70%)

Here’s an interesting stock idea: The stock that we have today is Grasim Industries. After hitting a record high last week, the scrip saw a decline in price. But it is now trading near a support and could see a recovery.

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

Grasim Industries’ hit a record high of ₹2,500 last week. But then it changed direction and moved south over the past few sessions. Nevertheless, the broader trend is bullish and is now hovering around the 20-day moving average support.