Sensex ends choppy trade 77 pts higher; Adani Group cos sink up to 9%

In the broader markets, the BSE MidCap index ended the day in the red, down 0.7 per cent, amid steep losses in Adani Group stocks and BHEL

SI Reporter New Delhi

MARKETS: Sensex wipes off 500-point loss, trades 100 pts up; VIX jumps 4%

9:17 AM

Opening Bell :: Sensex slips over 100 pts

9:14 AM

Top stocks to watch today

Results today: Coal India, Indian Overseas Bank, Kajaria Ceramics, Greenply Industries and Uttam Sugar Mills are among 50 firms slated to release their quarterly numbers today.

Adani group shares are likely to be in focus today after an Economic Times report said that National Securities Depository Ltd (NSDL) has frozen the accounts of three foreign funds — Albula Investment Fund, Cresta Fund and APMS Investment Fund — which together own over Rs 43,500 crore worth of shares in four Adani Group companies. READ MORE

9:12 AM

Top gainers and losers on the S&P BSE Sensex in Pre-open

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Pre-open session

9:09 AM

Pre-open session

9:08 AM

BROKERAGE VIEW :: MOFSL on Sona Comstar

SBPFL started supplying differentiated gears/ assemblies in the global EV market since 2016/2018 and has garnered 5%/8.7% market share (as of CY20). These two products currently contribute 46% of revenues while balance 51% comes from starter motors (SM; both Hybrid and conventional). In SM it has 3% market share globally.

Apart from being well-diversified across products catering to all types of conventional and electrified powertrains, SBPFL is also diversified across geographies and

vehicle segments. It derives 68% revenue from PVs while CVs/off highway vehicles form 14%/17%. On the other hand, exports form 75% of revenue (across North America/Europe/China/others) while balance comes from India.

View: We like SBPFL given its presence in fast growing global EV market, diversified portfolio across categories and robust financials. The issue is valued at 74.1x FY21 P/E on post issue basis. Though the valuation appears fully priced in, given its thrust in fast evolving EV space both in India and globally, market would like to give premium to such emerging growth story. Hence, we recommend Subscribe for Long Term.

9:04 AM

BROKERAGE VIEW :: 3 reasons why GEPL Capital suggests subscribing to Sona Comstar IPO

Despite the highly cyclical nature of the auto-ancillary industry, the company has been able to maintain ots margins in the 26 – 28% range. Sona Comstar has also spent a significant % of sales on R&D and plans to increase its focus on the precision EV space. It currently has 14% of its revenue from Battery EV’s and 27% of its revenues from Hybrid EV’s and plans to increase this number going ahead.

Considering the significant amount of R&D and existing customer relations we believe the company is well equipped to cater to the fast growing EV powertrain segment, which requires significant technical expertise.

The offer is priced at ~ 10.6 x Price to FY21 Sales. Although this seems higher than the industry average, we believe it is justified considering the opportunities and rapidly growing market share.

9:02 AM

IPO Alert :: Sona Comstar's 3-day issue opens today

8:59 AM

BROKERAGE VIEW :: Here's why Reliance Securities gave thumbs up to Shyam Metalics' IPO

The IPO is valued at 2.4x of 9MFY21 book value and 12.8x of FY21 annualized earnings, which look to be reasonably valued. However, considering improved visibility of demand recovery in domestic as well as international markets led by strong focus on infrastructure development and steady pricing scenario, financial performance of SMEL is expected to improve significantly in the coming quarters.

We believe domestic steel industry is witnessing a structural change with increasing commitment towards reduction in carbon emission by large producing countries like China. This essentially bodes well for the domestic steel makers. Further, strong balance sheet along with best-in class leveraging positioning offers an edge to SMEL.

Additionally, OCF yield at 8.4% as on 9MFY21 looks to be impressive and expected to improve further with higher cash flow generation in the ensuing quarters.

8:57 AM

BROKERAGE VIEW :: HDFC Securities on Shyam Metalics IPO

SMEL have a relatively better financial strength as compared to other companies operating in the long and intermediary steel sector. It had reported healthy operational as well as financial growth despite downturns in the industry.

The Company is also the least leveraged group among its peers. Its revenue from operations increased at a CAGR of 6.56% from Rs. 38,425.66 million in Fiscal 2018 to Rs. 43,628.86 million in Fiscal 2020 and was Rs. 39,330.84 million in the nine months ended December 31, 2020.As of March 31, 2018, 2019 and 2020 and as of December 31, 2020, its Gross Debt to Equity ratio was 0.30, 0.29, 0.47 and 0.27, respectively.

RoCE for Fiscals 2018, 2019 and 2020 and for the nine months ended December 31, 2020 was 19.58%, 24.69%, 9.49% and 13.30%, respectively.

8:54 AM