Sensex ends 95 pts lower, small, mid-caps outperform; Voda Idea zooms 27%

All that happened in the markets today

1:14 PM

BROKERAGE VIEW:: Nirmal Bang Securities on NMDC

RATING: BUY | TARGET PRICE: Rs 130

With volumes target maintained at 32mnt for FY21, considering a revival in 2HFY21 and continuous increase in the prices of iron ore by NMDC, we expect improvement in revenue from Q2FY20. View the demerger of Nagarnar steel plant positive that will enable NMDC to focus on its core business.

1:11 PM

BROKERAGE VIEW:: Prabhudas Lilladher on Pharma sector

With export incentives a major source of other operating income for India generic majors, GOI’s decision to cap export benefit of Rs20m under Merchant Export from India Scheme (MEIS) will impact 2-3% of earnings estimates from our pharmaceutical coverage universe. If withdrawal of the incentive scheme remains permanent, it would impact gross margin of high export-oriented companies such as Divis Lab, Dishman Pharma, Biocon, Strides Pharma, Jubilant Life, IPCA, Dr.Reddy’s, Lupin, Aurobindo,Cipla and Glenmark as an average 65% of revenue from these companies are generated from exports. On a flip side Diagnostic, listed MNC players and Eris Life won’t be impacted as 100% revenues sourced from India. 

1:07 PM

BROKERAGE VIEW:: Emkay Global on JK Cement

RATING: HOLD | TARGET PRICE: Rs 1,642

• Q1 performance was in line with estimates, with EBITDA at Rs.2.15bn vs. estimated Rs2.19bn and EBITDA/ton at Rs1,219 vs. estimated Rs1,255. Adjusted for reversal of dealers’ incentives in Q4FY20, realization growth was 2.5-3% qoq vs. reported 0.7% qoq growth.
• Key positives: 1) Opex/ton down 4.4% yoy vs. estimated 1.1% fall due to reduction in other expense; 2) Freight cost/ton down 7.3% yoy/6% qoq. Key negative was lower-than-estimated grey cement realization (up 2.5-3% qoq vs. estimate of 5.5% growth).
• New capacities in the North region are driving volume growth for JKCE with Jul/Aug’20 volumes up 20% yoy. Grinding unit of 0.7mt at Balasinor, Gujarat, will be commissioned in Q3. Putty capacity expansion (0.3mt) will be completed in Oct‘20. Kiln modernization at Nimbahera, Rajasthan, will be completed in Q2FY22.
• We raise FY21/22/23E EBITDA by 16.1%/14.4%/10% on high volumes. Cost-saving strategies have yielded results and JKCE is working on improving operational efficiencies at the North plant. We maintain the Hold rating as we await better entry points.

1:04 PM

BROKERAGE VIEW:: Edelweiss Securities on ONGC

RATING: BUY | TARGET PRICE: Rs 100

ONGC’s efforts to rationalise fixed costs are reflected in lower opex (-20.6% YoY), lower exploration cost (-19.6% YoY), and lower employee cost (-18% YoY) led by lower dry well as well as maintenance costs. While value-added products’ (VAP) sales fell 28.6% YoY, LPG is an exception with its sales rising 11.2% YoY and 6.5% QoQ, primarily driven by work from home culture amid lockdown. We envisage the start of large KG-98/2 production in FY21E, which is eligible for deep-water pricing, to boost gas revenue. Valuations are compelling at 4.8x FY22E PER. We maintain ’BUY/SO’.

1:02 PM

BROKERAGE VIEW:: Edelweiss Securities on Jubilant FoodWorks

RATING: BUY | TARGET PRICE: Rs 2,696

Jubilant FoodWorks’ (JFL) Q1FY21 revenue and EBITDA surpassed our estimates. Key highlights: i) SSSG plunged 61.5% YoY (on base of 4.1% YoY) primarily owing to lockdown impact. ii) 24 new Domino’s stores opened during Q1 against the closure of five stores (four Dunkin’ Donuts closed as well). iii) Ventured into the FMCG space with the launch of ChefBoss--ready-to-cook sauce/paste segment. iv) Overall sales recovery at ~70% and ~85% YoY July and in August, respectively.

 

We remain positive on organised QSR players with a strong focus on delivery and convenience; hence, retain JFL among our top picks in the retail space. Maintain ‘BUY’ with TP of Rs 2,696.

12:59 PM

June Quarter Result :: Page Industries posts loss of Rs 39 cr vs Rs 110.6 cr profit YoY

>> Revenue from operations at Rs 284.8 crore vs Rs 834.95 crore

>> Pre-tax loss at Rs 52.37 cr vs Rs 169,86 cr

12:54 PM

Gateway Distriparks surges 15% as Board to mull restructuring plan

Shares of Gateway Distriparks (GDL) moved higher by 15 per cent to Rs 108.20 on the BSE on Thursday after the company announced its board has approved to explore various structures for streamlining the businesses currently being carried out by different group entities. GDL is one of the leading integrated inter-modal logistics facilitators in India. Gateway Rail Freight, a subsidiary of GDL, provides inter-modal logistics and operates rail-linked Inland Container Depots. READ MORE

12:49 PM

NEWS ALERT :: Vinati Organics mulls capex of about Rs150 crores

>> As part of its growth and expansion plans, Co is envisaging a Capex of about Rs.150 Crores aimed for manufacturing 4 new specialty Chemicals and for expanding the present capacity of the PTBBA plant.

 

>> These new products will be used in sectors like Agrochemicals, Dyes and Plastic additives.

 

>> Further the Capex is expected to derive additional revenues of about Rs 240 Crores and is expected to be completed during the Financial Year 2020 - 21

(Via BSE filing)

12:43 PM

MARKET UPDATE:: Broader indices outperform benchmarks

12:36 PM

Indian IT companies to see a re-rating similar to FAANG stocks: Edelweiss

Information technology (IT) stocks have been on the investors' radar in the calendar year 2020 (CY20) as a safe haven bet at a time when the economic activity came to a near halt due to the Covid-19 pandemic and the subsequent lockdown to stem the spread of the virus. Thus far in CY20, the Nifty IT index has risen 15.5 per cent as compared to over 5 per cent decline in the benchmark Nifty50 index. READ MORE

12:26 PM

Tata Consumer hits record high, crosses Rs 53,000-crore in market-cap

In the last three days, the stock has gained 9 per cent, as compared to 1 per cent rise in the S&P BSE Sensex. In the past two months, the company's share price has surged 46 per cent, against 8 per cent gain in the benchmark index. READ MORE

12:18 PM

BS READS :: How Covid-19 gives India's private airlines a chance to go international

SpiceJet and Vistara recently started flights to London after bagging slots at Heathrow airport, dubbed by Virgin Atlantic founder Richard Branson as the world’s most expensive piece of concrete that can be owned for 90 seconds.

 

Many questions came to mind about India’s private airlines international plans. Is the Indian government, which is only concerned with state-carrier Air India’s international presence, finally helping private airlines bag slots under its bilateral air services agreement with the UK? READ MORE

12:12 PM

Blue Dart's investors are enthused with business taking off after Q1

After a washed-out June 2020 quarter (Q1), business is recovering for logistics companies, such as Blue Dart Express, as the economy is getting unlocked. This has also boosted investor sentiment.

 

The stock of Blue Dart, which had corrected over 10 per cent after the announcement of results on July 31, has gained 16 per cent in the last fortnight, much more than the 1 per cent rise in the BSE Sensex during this period. READ MORE

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12:00 PM

Once nearly half, China's market capitalisation is now 5x India's

The combined market capitalisation (m-cap) of Chinese companies touched the $10-trillion mark again, after a gap of five years, on Wednesday. China’s m-cap stands at 4.8x that of India, a gap that could expand to record levels following the stock market debut of Alibaba-backed Ant Financial. READ MORE

11:51 AM

Out of the woods? Analysts turn bullish on NBFCs on improved liquidity

The liquidty crisis that crippled the sector seems to be behind the sector, says Subramanian Iyer, equity analyst at Morgan Stanley, in a co-authored report with Sumeet Kariwala, Himanshu Khona, and Rahul Gupta.
 

The recent steps by the government and the Reserve Bank of India (RBI) to keep systemic liquidity and rates benign and also direct liquidity to NBFCs facing constraints, in the wake of Covid-19 pandemic, have helped, they say. READ MORE