Indices end choppy day in the red; Sensex dips 31 pts; banks, metals bleed
Broader markets, meanwhile, remained better placed. The S&P BSE MidCap and SmallCap indices each ended around 0.4 per cent higher
 "markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain")
9:22 AM
Adani Ports gains 2%
>> The company will partner with John Keells Holdings PLC and Sri Lankan Port Authority to develop the West Container Terminal (WCT) at the Colombo port in Sri Lanka.
9:21 AM
BPCL slips marginally ahead of Board meeting
9:20 AM
Sectoral trends on the NSE
9:19 AM
Sensex Heatmap :: All the constituents trade higher
9:17 AM
Opening Bell
9:17 AM
Opening Bell :: Sensex tops 50,600
9:14 AM
NEWS ALERT :: Aarti drugs to consider share buyback on March 19
9:11 AM
NEWS ALERT :: Jet fuel price (ATF) raised by Rs 860/kL (1.4%) to Rs 60,261/kL in Delhi
9:08 AM
Commodity Heatmap
9:06 AM
Top gainers and losers on the S&P BSE Sensex in Pre-open
9:05 AM
Markets at Pre-open
9:02 AM
Markets at Pre-open
8:54 AM
Stocks to watch: Tata Comm, Adani Ports, AU Small Fin, Nippon Life India
Tata Communication: Offer for sale (OFS) to divest government’s shareholding in Tata Communications will open Tuesday for institutional investors. The government will sell its 10 per cent stake held in erstwhile VSNL, with an option to sell an additional 6.12 per cent stake. The floor price has been set at Rs 1,161, a 9.8 per cent discount to Monday's closing price.
Adani Ports: The company will partner with John Keells Holdings PLC and Sri Lankan Port Authority to develop the West Container Terminal (WCT) at the Colombo port in Sri Lanka. READ MORE
8:50 AM
BROKERAGE VIEW :: Kotak Securities on Aavas Financiers
Reco: Add | TP: Rs 2,400
>> We believe that Aavas’s strong execution engine will continue to drive steady long-term growth coupled with stable asset quality despite operating in the latent high-yield, below-prime segment of the market. Key positives are deep domain knowledge of local markets, one of the best technology platforms, superior strategy as well as execution capabilities
>> We expect Aavas to deliver robust 26% core PBT CAGR during FY2021-24E. Improving productivity and operating leverage will lead to an expansion in the core PBT/AUM ratio to 3.6% in FY2024E from 3.2% in FY2022E and 2.9% in FY2020. NIM compression (7.6% in FY2024E from 7.7% in FY2022E and 7.9% in FY2020) reflecting pressure on yields will likely moderate the pace of NII growth to 21% CAGR over FY2021-24E (lower than 50% CAGR over FY2017-20) despite steady AUM growth (22% CAGR during FY2021-24E). A gradual improvement in asset quality and pick up in non-core revenues from FY2022E will support RoA expansion to ~3.1-3.2% by FY2023-24E and RoE to 15-16% from 3.1% and 12.7% respectively in FY2020.
>> We initiate coverage with ADD rating and FV of Rs2,400, reflecting high medium-term growth with RoEs rising to mid-to-high teens.
>> We believe that Aavas’s strong execution engine will continue to drive steady long-term growth coupled with stable asset quality despite operating in the latent high-yield, below-prime segment of the market. Key positives are deep domain knowledge of local markets, one of the best technology platforms, superior strategy as well as execution capabilities
>> We expect Aavas to deliver robust 26% core PBT CAGR during FY2021-24E. Improving productivity and operating leverage will lead to an expansion in the core PBT/AUM ratio to 3.6% in FY2024E from 3.2% in FY2022E and 2.9% in FY2020. NIM compression (7.6% in FY2024E from 7.7% in FY2022E and 7.9% in FY2020) reflecting pressure on yields will likely moderate the pace of NII growth to 21% CAGR over FY2021-24E (lower than 50% CAGR over FY2017-20) despite steady AUM growth (22% CAGR during FY2021-24E). A gradual improvement in asset quality and pick up in non-core revenues from FY2022E will support RoA expansion to ~3.1-3.2% by FY2023-24E and RoE to 15-16% from 3.1% and 12.7% respectively in FY2020.
>> We initiate coverage with ADD rating and FV of Rs2,400, reflecting high medium-term growth with RoEs rising to mid-to-high teens.
8:47 AM
BROKERAGE VIEW :: Kotak Securities on The Ramco Cement
Reco: Sell | TP: Rs 750
>> TRCL is the sixth largest cement producer operating predominantly in the Southern market of India. The company is close to completing expansion and cost efficiency projects that will diversify its presence. Peak debt is behind and new projects would add to its cost leadership and reduce regional concentration.
>> Nonetheless, south exposure would remain high at +85% along with volatile margins. Valuation, in line with large pan-India peers appears unjustified. We initiate with a SELL rating and a Fair Value of Rs750/share
>> TRCL is the sixth largest cement producer operating predominantly in the Southern market of India. The company is close to completing expansion and cost efficiency projects that will diversify its presence. Peak debt is behind and new projects would add to its cost leadership and reduce regional concentration.
>> Nonetheless, south exposure would remain high at +85% along with volatile margins. Valuation, in line with large pan-India peers appears unjustified. We initiate with a SELL rating and a Fair Value of Rs750/share
Topics : MARKET WRAP Markets Sensex Nifty50
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Mar 16 2021 | 7:58 AM IST
