MARKET WRAP: Sensex rises for 5th day, ends 304 pts higher; Titan gains 4%
All that happened in the markets today
 "BSE, Markets")
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8:41 AM
BROKERAGE VIEW :: MOFSL on Godrej Consumer Products
CMP: Rs 741 | TP: Rs 740 | Reco: Neutral
>> Over FY10-20E, GCPL posted healthy growth on all fronts. However, domestic sales slowdown in recent years and continued inability to scale up margins and improve weak RoCEs in the international business have adversely affected GCPL’s pace of earnings growth. Further, the loss of dominance in Hair Color, the advent of unorganized incense stick players in the HI segment and weak execution in the Africa business remain points of worry.
>> Although the double-digit top line performance in 2QFY21 is encouraging, it is on a soft base of 1.1% sales decline in 2QFY20. Given the uncertain outlook and inferior RoCE v/s peers, valuations of 43x FY22E EPS appear fair.
>> Over FY10-20E, GCPL posted healthy growth on all fronts. However, domestic sales slowdown in recent years and continued inability to scale up margins and improve weak RoCEs in the international business have adversely affected GCPL’s pace of earnings growth. Further, the loss of dominance in Hair Color, the advent of unorganized incense stick players in the HI segment and weak execution in the Africa business remain points of worry.
>> Although the double-digit top line performance in 2QFY21 is encouraging, it is on a soft base of 1.1% sales decline in 2QFY20. Given the uncertain outlook and inferior RoCE v/s peers, valuations of 43x FY22E EPS appear fair.
8:39 AM
>> Given the collection efficiency performance across various asset classes in the industry, we keep our credit cost estimate of ~4.5% for FY21 largely unchanged. We cut our FY21/FY22E EPS estimates by 8%/4%. With normalization expected from the next fiscal, RoE is likely to rebound to 19% in FY23E from 12% in FY21E.
BROKERAGE VIEW :: MOFSL on Bajaj Finance
CMP: Rs 3,474 | Reco: Neutral
>> The sharp decline in disbursement volumes has come as a bit of a disappointment (in the context of healthy trends witnessed by peers such as HDFC). Nevertheless, we believe it is a good strategy to curtail disbursements in this uncertain environment. In our opinion, this stance is likely to continue for another quarter or so. Hence, we now cut our FY21 AUM growth estimate to 6% from 12% earlier. Margins are likely to be stable as the drag due to excess liquidity is offset by lower cost of funds.
>> The sharp decline in disbursement volumes has come as a bit of a disappointment (in the context of healthy trends witnessed by peers such as HDFC). Nevertheless, we believe it is a good strategy to curtail disbursements in this uncertain environment. In our opinion, this stance is likely to continue for another quarter or so. Hence, we now cut our FY21 AUM growth estimate to 6% from 12% earlier. Margins are likely to be stable as the drag due to excess liquidity is offset by lower cost of funds.
>> Given the collection efficiency performance across various asset classes in the industry, we keep our credit cost estimate of ~4.5% for FY21 largely unchanged. We cut our FY21/FY22E EPS estimates by 8%/4%. With normalization expected from the next fiscal, RoE is likely to rebound to 19% in FY23E from 12% in FY21E.
8:35 AM
'Nifty is headed towards 11,800'
From the bottom of 10,790 registered on September 24, 2020, Nifty saw a sharp recovery towards 11,680. The index has registered a rise of almost 900 points from the recent bottom in the span of just 7 trading sessions. Nifty has surpassed the previous top resistance of 11,618 on the daily chart. Support for the Nifty is shifted up to 11,400, which should be kept as a stop loss in long positions. The upside target for Nifty is seen at 11,800 odd levels. READ MORE
8:33 AM
Recommendation: Buy
Weekly stock picks by Religare Broking
Berger Paints (I) Limited
Recommendation: Buy
Target: Rs 625
Berger Paints has been maintaining a long term uptrend since 2010. After a slide from its record high in February 2020, it consolidated for nearly four months but the bias remained on the positive side. It has again resumed the uptrend and currently trading at its record high. Indications are in the favor of prevailing momentum to extend further thus we suggest accumulating in the mentioned range. READ MORE
8:27 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:25 AM
Rupee check
Source: Bloomberg
8:23 AM
Oil prices slide as Trump cancels aid talks, US crude stocks expand
>> Oil prices slipped on Wednesday after US President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected build-up in US crude stocks.
>> US West Texas Intermediate (WTI) crude oil futures fell 87 cents, or 2.1%, to $39.80 a barre, while Brent crude futures fell by 74 cents, or 1.7%, to $41.91 a barrel.
(Source: Reuters)
(Source: Reuters)
8:21 AM
SGX Nifty update
>> At 8:20 am, the index was trading 20 points, or 0.17 per cent, higher at 11,692 level.
8:18 AM
Asia trades largely lower
Source: Reuters
8:17 AM
Wall Street ends down 1% after Trump calls off coronavirus economic relief talks
Source: Reuters
8:08 AM
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Topics : Markets TCS Majesco Dixon Technologies sbi MARKET WRAP
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First Published: Oct 07 2020 | 7:53 AM IST
