MARKET WRAP: Sensex slips 82 pts, Nifty gives up 11,800; pharma stocks fall
All that happened in markets today
 "Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters")
8:33 AM
We like ACEM for its healthy margin profile and cashflows. Upcoming expansion will arrest market share loss. We maintain BUY with an SOTP based TP of Rs 245 (implies EV of USD 145/MT). We value ACEM’s standalone cement biz at 11x its Mar’22E EBITDA and its 50% stake in ACC at 20% holding disc. We value ACEM at 20% disc to its 5-yr mean EV/EBITDA (and in-line ACC’s val) for its continued market share loss amid lack of major expansions in past.
BROKERAGE RADAR :: HDFC Securities on Ambuja Cements
Target Price Rs 245 | BUY
We like ACEM for its healthy margin profile and cashflows. Upcoming expansion will arrest market share loss. We maintain BUY with an SOTP based TP of Rs 245 (implies EV of USD 145/MT). We value ACEM’s standalone cement biz at 11x its Mar’22E EBITDA and its 50% stake in ACC at 20% holding disc. We value ACEM at 20% disc to its 5-yr mean EV/EBITDA (and in-line ACC’s val) for its continued market share loss amid lack of major expansions in past.
8:31 AM
>> More importantly, the underlying thesis of favorable demand-supply led growth in India’s hotels industry remains intact.
>> We maintain our estimates: revenue/EBITDA/PAT CAGR (FY20-22) of 9%/18%/30% to INR55.6b/INR15.8b/INR6.8b. We value the stock at 16x FY22E EV/EBITDA. On an SOTP (consol. and JV & associate) basis, we arrive at a target price of INR189.
BROKERAGE RADAR :: Motilal Oswal Financial Services on Indian Hotels
CMP: Rs 138 | TP: Rs 189 (+37%) | Buy
>> Initiatives like rebranding of Ginger, monetizing of existing landbank, selling non-core assets, JV with GIC to add rooms and creating alternative revenue streams (like re-launching of Chambers, Ama) augers well for the stock.
>> Initiatives like rebranding of Ginger, monetizing of existing landbank, selling non-core assets, JV with GIC to add rooms and creating alternative revenue streams (like re-launching of Chambers, Ama) augers well for the stock.
>> More importantly, the underlying thesis of favorable demand-supply led growth in India’s hotels industry remains intact.
>> We maintain our estimates: revenue/EBITDA/PAT CAGR (FY20-22) of 9%/18%/30% to INR55.6b/INR15.8b/INR6.8b. We value the stock at 16x FY22E EV/EBITDA. On an SOTP (consol. and JV & associate) basis, we arrive at a target price of INR189.
8:27 AM
Morgan Stanley, Jefferies turn cautious on EMs amid coronavirus fears
On Monday, analyst at Morgan Stanley cut their December 2020 target for the MSCI Emerging Market Index (MSCI EM) from the earlier 1,150 to 1,100 now, translating into a negligible rise. Similarly, the targets for MSCI Asia Pacific index (ex-Japan) – MSCI APxJ, Hang Seng and MSCI China have also been slashed. The brokerage firm also lowered earnings growth forecasts below consensus estimates for all markets, except Japan, which remains the through-the-cycle overweight in their coverage, helped by bottom-up restructuring, improving capital management and governance improvement. READ MORE
8:22 AM
Coronavirus impact on global economy and markets still uncertain: Experts
The risk emanating from the coronavirus (COVID-19) outbreak isn’t yet fully priced in by the markets and its economic implications remain unknown, say experts. Investors on Monday were caught off-guard by the sharp selloff in stocks amid an increase in COVID-19 cases in countries, such as South Korea, Italy, and Iran. “From a financial market standpoint, we think the tail risks of a more prolonged and higher magnitude disruption from COVID-19 remain underappreciated by the markets,” says a note by global money manager Franklin Templeton. READ MORE
8:15 AM
NEWS ALERT | CARE downgrades rating on Yes Bank to ‘A-‘ from ‘A’: CNBC TV18
>> Places bank on credit watch with negative implications
8:03 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:02 AM
Rupee Check
Source: Bloomberg
7:59 AM
Oil Check
>> Oil steadied after shedding nearly 4 per cent on Monday.
>> At 7:57 am, Brent Crude Futures were at $56.05 per barrel, up 0.5 per cent. WTI Crude, meanwhile, was at $51.65 per barrel, up 0.43 per cent.
>> At 7:57 am, Brent Crude Futures were at $56.05 per barrel, up 0.5 per cent. WTI Crude, meanwhile, was at $51.65 per barrel, up 0.43 per cent.
7:55 AM
SGX Nifty
>> At 7:57 am, SGX Nifty was at 11,878.5, up 57 points or 0.49 per cent.
7:54 AM
Asian Market Check
Source: Reuters
7:53 AM
US Market Check
Source: Reuters
7:45 AM
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Topics : Markets MARKET WRAP
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First Published: Feb 25 2020 | 7:29 AM IST
