MARKET: Indices end flat, Nifty settles at 11,222; PSBs, FMCG stocks fall
All that happened in the markets today
 "Markets continue to rally on RBI policy fillip; Sensex rises 164 points")
The trend among Nifty sectoral indices was largely negative, led by Nifty PSU Bank index, down over 2 per cent.
9:07 AM
Top gainers and losers on the S&P BSE Sensex at Pre-open
9:06 AM
Markets at Pre-open
9:06 AM
Markets at Pre-open
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Vedanta De-listing :: Reverse Book building opens on Oct 5
>> Bid closes on Oct 9
>> Last date for revision/withdrawal of bids: Oct 8
>> Exit price to be announced on Oct 16
>> Co received in-principal approval from Sebi on Sept 28
(Source: CNBC TV18)
>> Last date for revision/withdrawal of bids: Oct 8
>> Exit price to be announced on Oct 16
>> Co received in-principal approval from Sebi on Sept 28
(Source: CNBC TV18)
9:00 AM
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Stocks to watch out for today
BPCL: The management of Bharat Petroleum Corporation (BPCL) on Monday said that 2 per cent of its treasury stock will be transferred to a separate trust, while the remaining 7.33 per cent is likely to be sold in a bulk deal.
Defence-related stocks: Defence Minister Rajnath Singh on Monday unveiled the new Defence Acquisition Procedure of 2020 (DAP 2020), which will govern the procurement of defence equipment from the capital budget. It will supersede the Defence Procurement Procedure of 2016 from October 1.
Infosys: EdgeVerve Systems, a wholly-owned subsidiary of Infosys, recently signed a partnership with Minit, a leader in process mining, to help clients accelerate process excellence, Infosys said on Monday. In a separate development, Infosys and the French Tennis Federation, Monday announced the latest innovations set to hit the courts at this year’s Roland-Garros, as part of the second year of the strategic technology partnership. READ MORE
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NEWS ALERT :: Prime Focus arm DNEG to raise $375 m via allotment of senior secured notes that will be used to pare debt
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BROKERAGE VIEW :: Kotak Institutional Equities on L&T Infotech
Fair value: Rs 2,800 | Reco: Add
>> LTI remains well-positioned to lead the industry on growth. In our conversation, Sanjay Jalona, the CEO of the company and Ashok Sonthalia, the CFO, highlighted—(1) demand recovery is largely healthy, (2) Covid has pushed organizations to change operating models, driving technology spends and benefiting LTI, (3) demand for large deals is intact although conversions have been delayed in a few cases, and (4) new account openings can be impacted for the industry. We retain our constructive view on the company.
>> LTI remains well-positioned to lead the industry on growth. In our conversation, Sanjay Jalona, the CEO of the company and Ashok Sonthalia, the CFO, highlighted—(1) demand recovery is largely healthy, (2) Covid has pushed organizations to change operating models, driving technology spends and benefiting LTI, (3) demand for large deals is intact although conversions have been delayed in a few cases, and (4) new account openings can be impacted for the industry. We retain our constructive view on the company.
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Mazagon Dock Shipbuilders IPO opens today, gets thumbs up from brokerages
The objectives of the IPO is to carry out the disinvestment of 30,599,017 equity shares constituting 15.17 per cent of company’s pre-offer paid up equity share capital and to achieve the benefits of listing on the stock exchanges, the company said YES Securities, Axis Capital, Edelweiss Financial, IDFC Securities and JM Financial are the managers to the offer. READ MORE
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UTI AMC IPO opens today; should you subscribe?
The initial public offer (IPO) of UTI Asset Management Company (AMC) is set to open today for subscription. The price band of the offer has been fixed at Rs 552 to Rs 554 per equity share. At the upper price band, the issue size stands at Rs 2,160 crore. The offer is proposed to close on October 1 (Thursday). On Monday, the company raised Rs 644.64 crore from anchor investors by allocating 11,636,124 shares at Rs 554 apiece. READ MORE
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BROKERAGE VIEW :: Axis Securities on Trent
Target price: Rs 786 | Reco: Buy
>> We initiate coverage on Trent Ltd (Trent) with a BUY rating and a Target Price of Rs 786 based on SOTP valuation methodology. We believe Trent is well placed to bounce back post (impact of COVID-19) FY21E led by 1) Westside’s success in retail concept (only format to consistently deliver healthy SSSG and high store metrics amongst peers) driven by exclusive/trendy offerings at competitive prices 2) Significant growth opportunities in Zudio format driven by aggressive store additions beyond metros & rise in consumer preference towards value fashion owing to the pandemic led financial constraints 3) Sustainable margins led by Westside’s private label driven business model, higher focus on improving back end and fast fashion supply chain, superior store execution capability & diligent focus on cost efficiency 4) Significant improvement in return ratios (ROE to rise from 6% to 11% over FY20-23E) 5) Healthy balance sheet and additional capital raise (Rs 950 crs via its promoter group-Tata Sons) to support its ramp up in store addition plans in underpenetrated mirco markets across fashion formats (Westside/Zudio).
>> We initiate coverage on Trent Ltd (Trent) with a BUY rating and a Target Price of Rs 786 based on SOTP valuation methodology. We believe Trent is well placed to bounce back post (impact of COVID-19) FY21E led by 1) Westside’s success in retail concept (only format to consistently deliver healthy SSSG and high store metrics amongst peers) driven by exclusive/trendy offerings at competitive prices 2) Significant growth opportunities in Zudio format driven by aggressive store additions beyond metros & rise in consumer preference towards value fashion owing to the pandemic led financial constraints 3) Sustainable margins led by Westside’s private label driven business model, higher focus on improving back end and fast fashion supply chain, superior store execution capability & diligent focus on cost efficiency 4) Significant improvement in return ratios (ROE to rise from 6% to 11% over FY20-23E) 5) Healthy balance sheet and additional capital raise (Rs 950 crs via its promoter group-Tata Sons) to support its ramp up in store addition plans in underpenetrated mirco markets across fashion formats (Westside/Zudio).
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BROKERAGE VIEW :: Nirmal Bang on IT sector
>> We see some cross-currency tailwind, which would add 100-200bps to QoQ growth across most of our coverage universe in 2QFY21.
>> We have raised our target PE multiples for our coverage universe to account for what could potentially be stronger growth than we have currently projected.
>> We continue to have a ‘neutral’ stand on the sector (read our 6th September 2020 note to understand why) with a modestly positive bias. From a stock perspective, due to the strong run-up seen across most of them, only HCL Technologies remains a ‘Buy’ while all else have an ‘Accumulate’ rating.
>> We have raised our target PE multiples for our coverage universe to account for what could potentially be stronger growth than we have currently projected.
>> We continue to have a ‘neutral’ stand on the sector (read our 6th September 2020 note to understand why) with a modestly positive bias. From a stock perspective, due to the strong run-up seen across most of them, only HCL Technologies remains a ‘Buy’ while all else have an ‘Accumulate’ rating.
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BROKERAGE VIEW :: MOFSL on GSK Pharma
CMP: Rs 1,577 | TP: Rs 1,355 (-14%) | Reco: Neutral
>> GLXO is working on a three pronged strategy – (a) new introduction in both Pharma as well as the Vaccines segment, (b) expanding classic Vaccines, and (c) growing faster than the market in focus therapies.
>> While the COVID led disruption had an adverse impact on GLXO’s performance, the outlook is gradually improving with better MR-Doctor and Doctor-patient
>> We continue to value GLXO at 37x (25% discount to its 3-year average) to arrive at a price target of INR1,355 on 12M forward earnings basis. We believe that
>> GLXO is working on a three pronged strategy – (a) new introduction in both Pharma as well as the Vaccines segment, (b) expanding classic Vaccines, and (c) growing faster than the market in focus therapies.
>> While the COVID led disruption had an adverse impact on GLXO’s performance, the outlook is gradually improving with better MR-Doctor and Doctor-patient
connect.
>> We continue to value GLXO at 37x (25% discount to its 3-year average) to arrive at a price target of INR1,355 on 12M forward earnings basis. We believe that
improvement in outlook is adequately factored at valuation of 59x FY21E EPS of Rs 27 and 46x FY22E EPS of Rs 34. Hence, we maintain Neutral on the stock.
8:33 AM
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Stock tips by Nilesh Jain of Anand Rathi
BUY RADICO KHAITAN | TARGET: Rs 440 | STOP LOSS: Rs 395
The stock has found the support of its rising trend line and has also formed a reversal candle on the daily chart. The momentum indicators and oscillators are in the buy mode on the weekly scales which hint that recent correction should be used as a buying opportunity. READ MORE
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First Published: Sep 29 2020 | 7:46 AM IST
