Sensex adds 613 pts; Nifty ends above 15,100; MidCap index hits record peak
In the broader market space, the S&P BSE MidCap index zoomed 1.9 per cent to settle at 21,232 after hitting record peak of 21,255 levels earlier today
 "MARKET LIVE: Indices hold gains; Sensex zooms 600 pts; Nifty Auto up 3%")
9:23 AM
Broader market :: Mid-caps outperforming large-, small-cap peers
9:22 AM
Sectoral trends on the NSE :: Metal, Bank indices up 2%
9:20 AM
Sensex Heatmap :: Bharti Airtel sole loser on the index
9:19 AM
Opening Bell :: Nifty reclaims 15,100
9:18 AM
Opening Bell :: Sensex zooms nearly 600 pts
9:14 AM
Commodity prices in early deals
9:10 AM
Pre-open session :: Nifty tops 15,000
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Pre-open session :: Sensex climbs 300 pts
9:02 AM
Top stocks to watch today
Bharti Airtel: The telco reported a consolidated net profit of Rs 759 crore in the fourth quarter of 2020-21 as against a loss of Rs 5,237 crore in the corresponding period of 2019-20. Airtel's average revenue per user (ARPU) stood at Rs 145, down from Rs 166 sequentially and Rs 154 in the year ago period.
Orient Cement: The company logged an over two-fold jump in net profit at Rs 99.87 crore in the fourth quarter ended March 2021. It had posted a net profit of Rs 44.06 crore in the January-March quarter a year ago. READ MORE
8:55 AM
BROKERAGE VIEW :: Jefferies on Bharti Airtel
Reco: Hold | TP: Rs 590
During 4QFY21, Bharti Airtel turned FCF negative despite stable CFO due to near doubling of cash capex to Rs148bn including Rs63bn upfront spectrum payment. For FY21, Bharti Airtel turned FCF positive led by 2.7x jump in CFO and 35% lower cash interest costs which offset 62% rise in capex. Consolidated net debt was stable at US$20bn and leverage was comfortable at 3x EBITDA.
Given Bharti's strong subscriber traction, we raise our subscriber estimates 4%. We cut our ARPU estimates by 4-5% to factor the 4Q miss, and we are concerned about declining ARPUs despite strong 4G and postpaid subscriber additions.
Despite a cut in India mobile, we raise our consolidated estimates by 1-3% as we raise our estimates for Homes, Airtel Business and Airtel Africa segments. Over FY21-23, we now expect Bharti Airtel to deliver 13% CAGR in revenues and 18% CAGR in EBITDA assuming 10% tariff hikes in 4QFY22 and 4QFY23. Maintain Hold with PT of Rs590/share
8:50 AM
BROKERAGE VIEW :: UBS on Bharti Airtel
Reco: Buy | TP: 665
We will monitor management commentary on the potential impact of the second wave of Covid-19, overall outlook for mobile competition as well as topics such as floor tariffs and 5G spectrum auctions. We will also focus on “flattening ARPUs” and potential impact of recent freebies offered by all telcos as part of pandemic relief.
Overall, a healthy set of results, with Bharti outperforming Jio on most metrics. However, the impact of the second wave of Covid-19 on subscriber additions and ARPUs will be a key monitorable going ahead. We believe Bharti is well placed in the sector. We maintain Buy with a PT of Rs665.
8:43 AM
BROKERAGE VIEW :: Goldman Sachs on Bharti Airtel
Reco: Buy | TP: Rs 665
Bharti reported a broadly in-line set of results (+19% YoY wireless revenue growth; 2% below GSe) with higher-than-expected subscriber addition offset by a marginally weaker ARPU. However, Bharti continues to outperform peers, with the company’s revenue market share higher by 110bps/390bps over the last one/five quarters. While we expect short-term headwinds to earnings due to COVID-19 (moderation in subscriber adds) and competition (ARPU pressure), we forecast Bharti’s wireless business to deliver 20%+ revenue and EBITDA growth for the next two years.
We marginally lower our FY2022E-24E EBITDA estimates for Bharti (by up to 2%), and reiterate our Buy rating on the stock with a revised 12m target price of Rs 665 (was Rs 670), implying 21% upside from current levels.
We think the market is under-appreciating a ‘market share re-allocation’ scenario, and we continue to believe one of the two outcomes - tariffs moving up, or market share re-allocation, is highly likely in the near term
Bharti reported a broadly in-line set of results (+19% YoY wireless revenue growth; 2% below GSe) with higher-than-expected subscriber addition offset by a marginally weaker ARPU. However, Bharti continues to outperform peers, with the company’s revenue market share higher by 110bps/390bps over the last one/five quarters. While we expect short-term headwinds to earnings due to COVID-19 (moderation in subscriber adds) and competition (ARPU pressure), we forecast Bharti’s wireless business to deliver 20%+ revenue and EBITDA growth for the next two years.
We marginally lower our FY2022E-24E EBITDA estimates for Bharti (by up to 2%), and reiterate our Buy rating on the stock with a revised 12m target price of Rs 665 (was Rs 670), implying 21% upside from current levels.
We think the market is under-appreciating a ‘market share re-allocation’ scenario, and we continue to believe one of the two outcomes - tariffs moving up, or market share re-allocation, is highly likely in the near term
8:38 AM
Top stock ideas from Anand Rathi
BUY IBREALEST | TARGET: Rs 92 | STOP LOSS: Rs 76
Since almost a month, IBREALEST has been consolidating in a range of 84 - 75. During this period, the stock found support at the placement of 200-day EMA. This support coincides with the flat line of Ichimoku on the weekly scale. The stable price action above such strong support indicates accumulation and the stock is preparing for a fresh upside. Hence, traders are advised to buy the stock near 81 with a stop loss of 76 for the upside potential target of 92 in 3-4 weeks. READ MORE
Topics : MARKET WRAP Markets Sensex Nifty50
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First Published: May 18 2021 | 7:53 AM IST
