Sensex rises for 4th day, ends 225 pts higher; financial, metal stocks gain

All that happened in the markets today

11:57 AM

BROKERAGE VIEW:: YES Securities on Concor

RATING: ADD | TARGET PRICE: Rs 419

We expect revenues to be under pressure in FY21 with subdued volumes and increasing competition. Also, the margin is likely to be under pressure with higher scheduled payment towards LLF. With the normalisation of the current scenario and improved volumes, we expect revenue and margin pressure to improve in FY22E. While we largely maintain our topline estimates, we expect the margin to come under pressure with subdued volumes and increasing competition. While we have not considered the increased LLF demand into our forecasts, the high uncertainty regarding the outcome would be an overhang on the stock. Considering the uncertainty regarding LLF, we downgrade our rating from BUY to ADD with a 12m TP of Rs 419 (22x FY22E PE multiple).

11:55 AM

BROKERAGE VIEW:: ICICI Securities on Entertainment Network India

The radio sector remains the worst-hit media segment with FY20 being a washout due to macroeconomic headwinds and Covid-19 affecting FY21E earnings. Gross margins growth of solutions business is a relief for ENIL in challenging times. We would monitor the traction and consistency in the same before turning constructive. The company has cash & cash equivalents of ~ Rs 236 crore, which assures liquidity. Larger players in the industry will benefit in case of consolidation. However, recovery in radio ad growth is key for the overall rerating of the stock. We believe full ad recovery is still a couple of quarters away. Hence, we maintain our HOLD rating on the stock with a revised target price of Rs 145 (implying ~4x FY22E EV/EBITDA).

11:53 AM

BROKERAGE VIEW:: Edelweiss Securities on Amber Enterprises

We downgrade Amber Enterprises (Amber) to ‘HOLD’ as ~40% return post our recent TP upgrade (June 2020) limits upside potential. Even as Q1FY21 was a washout (largely expected), investor focus is largely on the sweetening of Amber’s structural story: i) government’s aggressive import substitution push (Rs 90bn opportunity in RAC as of FY19); ii) likelihood of production incentives; and iii) the China +1 opportunity (high exports traction). Amber’s performance in component subsidiaries has been far more encouraging. Tracking this, we revise up FY22E revenue/PAT 5%/14%. We retain our target PE of 24x FY22E (20% discount to CD valuations given lower return/CF profile) and view production invective scheme and export opportunities as upside risks. Our revised TP stands at Rs1,680 (Rs 1,480 earlier).

11:51 AM

BROKERAGE VIEW:: Anand Rathi Shares on JK Lakshmi Cement

The lockdown hit JK Lakshmi’s Q1 performance. Its revenue/ EBITDA/PAT fell 21%/15.6%/36%. Management’s focus on de-levering continues; it is keeping on hold its expansion in the North. The East and West continue to suffer from cities being locked down; pockets in the North are also locked down. The migrant labour issue resolution, firm prices, rising institutional demand, fixed-cost savings, and the 10MW WHRS at Sirohi will help its performance. We retain our Buy call, with a Rs 370 target (Rs 325 earlier).

11:49 AM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

11:38 AM

Mid, small-caps likely to outperform large-caps in 2020, say analysts

After a subdued performance since the last two years, mid-and-small caps seem to be getting their mojo back with both these indices outperforming their large-cap peer. From their March 2020 low, the S&P BSE Mid-cap and S&P BSE Small-cap indices have surged 57 per cent and 49 per cent, respectively as compared to 47 per cent rise in the S&P BSE Sensex. READ MORE

11:25 AM

Shree Cement dips 4% post June quarter results; here's what brokerages say

Shares of Shree Cement slipped 4.70 per cent to Rs 21,335.40 on the BSE after the company's consolidated net profit dropped 13.5 per cent on a year-on-year (YoY) basis to Rs 330.35 crore for the June quarter of FY21 (Q1FY21). In comparison, the company had posted a profit of Rs 382 crore in the year-ago quarter. The company’s revenue dipped 24 per cent YoY to Rs 2,480 crore from Rs 3,302 crore in Q1FY20. READ MORE

11:18 AM

Global market capitalisation exceeds world GDP, evoking 'bubble' concern

The market value of the world's equities has risen above the dollar value of the global economy, which some investors say is a sign of overheated markets.

 

Total stock market capitalisation reached $87.83 trillion on Sunday, compared with the 2019 gross domestic product of all countries, at $87.75 trillion. READ MORE

11:07 AM

Triveni Engineering leaps 15.5% on strong Q1 results, buyback proposal

"The Board approved the buyback of fully paid up equity shares of face value of Re 1 each, not exceeding 61,90,000 equity shares, representing 2.5 per cent of the total paid-up equity share capital of the Company as on March 31, 2020, at a price of Rs 105 per equity share payable in cash for an aggregate amount not exceeding Rs 64,99,50,000," the company said in a exchange filing.  READ MORE

10:57 AM

Investors need to be wary of overpaying as stock returns are mediocre

Retail investors need to be wary of overpaying for picks in such an environment. One reason is that the economy has not done well for the past four-five years and Nifty earnings have barely moved. READ MORE

10:41 AM

KEC International in focus; shares gain 8% after June quarter result

KEC International shares surged nearly 8 per cent on the BSE on Tuesday after the company, in its June quarter result announcement, said it was confident of delivering a good performance in the financial year 2020-21 (FY21). For the first quarter of the fiscal year 2020-21 (Q1FY21), the company reported an 8.4 per cent year-on-year (YoY) drop in its revenue at Rs 2,207 crore against Rs 2,412 crore in Q1FY20. READ MORE 

10:31 AM

ICICI Bank shares gain 3% after setting floor price for QIP issue

Shares of ICICI Bank gained as much as 3 per cent to Rs 374.15 on the BSE on Tuesday after the private lender launched its qualified institutional placement (QIP), setting the floor price at Rs 351.36 per share. The bank plans to raise up to Rs 15,000 crore to support business growth and create a buffer to absorb any shock from the economic disruption caused by the coronavirus pandemic. Its board will meet on August 14 to decide the QIP issue price. The floor price is a 3.4 per cent discount to Monday's closing of Rs 364.20.. READ MORE

10:19 AM

Bank of Baroda slips 3% on surprise June quarter loss of Rs 864 crore

The profit was hit by provisions and contingencies, which rose by 71.32 per cent to Rs 5,628 crore in Q1FY21 from Rs 3,285 crore in Q1FY20. "BoB made a provision of Rs 1,900 crore for standard assets. Of this, half was for a loan which carries government guarantees and balance for loans under moratorium," said its managing director (MD) and chief executive officer (CEO) Sanjiv Chadha said. READ MORE

10:08 AM

Rupee opening

Rupee opens higher at 74.83/$ vs Monday's close of 74.89 against the US dollar

10:00 AM

Titan Company slips nearly 4% on weak Q1 result; should you buy the stock?

Prabhudas Lilladher notes that the company has achieved a recovery rate of 77 per cent /21 per cent /25 per cent for jewelry/watches/eyewear, and it expects a sustained recovery to set in from fag end of 3Q/4Q. "Titan's long term structural story remains intact on account of market share gains, strong balance sheet, franchisee based model, strong brand, and a strong head start in executing strategies like customer safety and Omni Channel across product segments," it said in a result review report. READ MORE