Indices snap 8-day rally; Sensex slips 236 pts post FM's stimulus measures
All that happened in the markets today
 "(Photo: Kamlesh Pednekar)")
(Photo: Kamlesh Pednekar)
9:20 AM
Result Reaction | SpiceJet up over 1% on healthy mgt commentary
9:18 AM
Sectoral trends at Open
9:18 AM
Sensex Heatmap at Open
9:17 AM
Opening Bell
9:16 AM
Opening Bell
9:07 AM
Commodity Heatmap
9:06 AM
Top gainers and losers on the S&P BSE Sensex at Pre-open
9:05 AM
Markets at Pre-open
9:04 AM
Markets at Pre-open
8:58 AM
Stocks to watch today
Aurobindo Pharma on Wednesday reported a 26 per cent increase in consolidated net profit at Rs 805.65 crore in the second quarter ended September. The company had posted a consolidated net profit of Rs 639.53 crore in the same quarter last fiscal, Aurobindo Pharma said in a regulatory filing.
Coal India: State-owned miner Coal India limited (CIL) witnessed a fall in profit by 5.07 per cent during the second quarter of the current financial year over corresponding period last fiscal. The company registered a profit before tax (PBT) of Rs 4,060 crore in the Q2.
Earnings today: A total of 808 companies including Eicher Motors, IRCTC, and Jubilant FoodWorks are set to declare their quarterly earnings today. READ MORE
8:50 AM
BROKERAGE VIEW :: MOFSL on IGL
CMP: Rs 449 | TP: Rs 485 (+8%) | Reco: Neutral
>> In the medium term, IGL could increase its sales volumes from new areas such as Rewari, Karnal, and Muzaffarnagar; Haryana City Gas and the newly awarded (3) GAs in the 10th round — (a) Kaithal (Haryana), (b) Ajmer, Pali, and Rajsamand (Rajasthan), and (c) Kanpur, Fatehpur, and Hamirpur (Uttar Pradesh).
>> Open access regulation is likely to be within the ambit of the PNGRB Act, and litigation is less likely. Also, IGL aims to facilitate competition as this would aid
>> The introduction of EVs could dent CNG demand over the long term. The recently revised policy for EVs in Delhi is more directed at 2W and 3W, impacting 3W CNG volumes (which form ~10% of total volumes). Also, the management expects EV buses to commence plying on the roads of Delhi over the next 2–3 years, thus challenging ~25% of total volumes used by CNG buses.
>> Although it remains challenging to assess the impact of open access on margins/volumes, any dent in these key parameters could lead to compression
>> The stock trades at around 26.3x FY22 EPS of INR17.0 and EV/EBITDA of 17.0x in FY22. On a one-year forward PE basis, the company trades at a 58% premium to its long-term average of 18.3x. Maintain Neutral.
>> In the medium term, IGL could increase its sales volumes from new areas such as Rewari, Karnal, and Muzaffarnagar; Haryana City Gas and the newly awarded (3) GAs in the 10th round — (a) Kaithal (Haryana), (b) Ajmer, Pali, and Rajsamand (Rajasthan), and (c) Kanpur, Fatehpur, and Hamirpur (Uttar Pradesh).
>> Open access regulation is likely to be within the ambit of the PNGRB Act, and litigation is less likely. Also, IGL aims to facilitate competition as this would aid
gas market expansion. We believe IGL has the most lucrative market for a competitor in the form of well-balanced volumes and margins mix.
>> The introduction of EVs could dent CNG demand over the long term. The recently revised policy for EVs in Delhi is more directed at 2W and 3W, impacting 3W CNG volumes (which form ~10% of total volumes). Also, the management expects EV buses to commence plying on the roads of Delhi over the next 2–3 years, thus challenging ~25% of total volumes used by CNG buses.
>> Although it remains challenging to assess the impact of open access on margins/volumes, any dent in these key parameters could lead to compression
in the valuation premiums enjoyed by the company.
>> The stock trades at around 26.3x FY22 EPS of INR17.0 and EV/EBITDA of 17.0x in FY22. On a one-year forward PE basis, the company trades at a 58% premium to its long-term average of 18.3x. Maintain Neutral.
8:46 AM
BROKERAGE VIEW :: MOFSL on SBI
CMP: Rs 234 | TP: Rs 300 (+28%) | Reco: Buy
>> SBIN appears well positioned to report strong uptick in earnings as the uncertainty brought about by the pandemic has receded significantly. While collection trends have improved to ~97%, restructuring of up to 1% of loans is expected. Further, legacy issues in the corporate NPA cycle is now largely behind. SBIN carries healthy PCR of ~88% on corporate NPA. We expect credit costs to normalize from FY22E.
>> We estimate SBIN’s PPoP at 11% CAGR over FY20-23E (v/s 7% CAGR over FY15-20). Therefore, overall PPoP to provisions should strengthen to 2.4x by FY23E (v/s avg. 1.1x over FY17-20). Our PAT estimate stands at INR302b/INR393b for FY22/23E.
>> The current valuations are compelling with the core bank trading at 0.4x FY22E ABV (1.3x FY22E P/Core PPoP and 3.1x FY22E P/E). RoEs should recover to ~14% by FY23E. We expect rerating in the stock as long awaited earnings normalization cycle has begun. Reiterate Buy with TP of INR300.
>> SBIN appears well positioned to report strong uptick in earnings as the uncertainty brought about by the pandemic has receded significantly. While collection trends have improved to ~97%, restructuring of up to 1% of loans is expected. Further, legacy issues in the corporate NPA cycle is now largely behind. SBIN carries healthy PCR of ~88% on corporate NPA. We expect credit costs to normalize from FY22E.
>> We estimate SBIN’s PPoP at 11% CAGR over FY20-23E (v/s 7% CAGR over FY15-20). Therefore, overall PPoP to provisions should strengthen to 2.4x by FY23E (v/s avg. 1.1x over FY17-20). Our PAT estimate stands at INR302b/INR393b for FY22/23E.
>> The current valuations are compelling with the core bank trading at 0.4x FY22E ABV (1.3x FY22E P/Core PPoP and 3.1x FY22E P/E). RoEs should recover to ~14% by FY23E. We expect rerating in the stock as long awaited earnings normalization cycle has begun. Reiterate Buy with TP of INR300.
8:42 AM
BREAKING NEWS :: Finance Minister Nirmala Sitharaman to address media at 12.30 pm today
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First Published: Nov 12 2020 | 7:49 AM IST
