Friday, December 27, 2024 | 11:36 AM ISTEN Hindi

Sensex gains for 2nd day; ends 447 pts up at 50,297; auto, IT stocks rally

Broader markets outperformed the benchmark indices, highlighting underlying strength in the market. The S&P BSE MidCap and SmallCap indices ended 1.55 per cent & 1.6 per cent higher, respectively

SI Reporter New Delhi

9:22 AM

BPCL advances 4% on Numaligarh refinery deal

>> Bharat Petroleum Corporation Ltd (BPCL) said it will exit Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore.

9:21 AM

Sectoral trends on NSE :: Metal stocks slip in a strong market

9:20 AM

Sensex Heatmap :: ONGC, PowerGrid slip on profit-booking

9:18 AM

First Trade

9:18 AM

First Trade

9:14 AM

Commodity Heatmap

9:09 AM

Top gainers and losers on S&P BSE Sensex at Pre-open

9:08 AM

Markets at Pre-open

9:05 AM

Markets at Pre-open

9:02 AM

BROKERAGE VIEW :: MOFSL on BPCL

CMP: Rs 455 | TP: Rs 520 | Reco: Buy

- BPCL’s board has approved the divestment of its entire 61.65% stake in Numaligarh Refinery (NRL) for INR98.76b to a consortium of Oil India, Engineers India and the Government of Assam (which has the first right of refusal) (press release). Oil India/ Government of Assam currently holds 26%/12.35% stake.

- Last week, BPCL finalized commercial terms for acquiring Oman Oil’s ~36.62% stake in Bina refinery for ~INR24b. Post completion of the transaction, it will hold 100% stake in BORL (press release).

- On an EV-to-EBITDA basis, the company has signed the NRL/BORL deal at 7.8x/7.4x FY20 EBITDA. On completion of the aforementioned two deals, the company would have incremental cash of INR74.8b

- We value the company at 2.1x FY23E book to arrive at our TP of INR520. Ascribing the aforementioned deal value of 7.5x EV-to-EBITDA to its Refining business, our SoTP suggests a standalone business value of INR400/share (at 8x FY23E EBITDA for the Marketing and Pipeline business), with additional value of investments of INR200/share. Thus, our SoTP derived valuation for BPCL stands at INR600/share. We reiterate our optimism on the divestment process going through given the earnest efforts of the management. Our SoTP valuation implies an FY23E book value of 2.4x (i.e. 15% premium to FY15-18 post reform period). Reiterate Buy.

8:56 AM

BROKERAGE VIEW :: MOFSL on SBI Cards

CMP: Rs 1,098 | TP: Rs 1,200 | Reco: Neutral

- SBI Cards and Payments Services Ltd (SBICARD) has strengthened its position as the second largest card player in the country - with market share of ~19% in o/s cards and ~20% in overall spends. The company has an o/s card base of ~11.5m and has doubled its card base over the past three years at an average incremental market share of 23%.

- SBICARD has access to parent SBIN's vast network of ~22k branches and customer base of ~450m, along with strong open market sourcing capabilities. Thus, it remains well-placed to capitalize on growth opportunities in a highly underpenetrated market.

- The company has delivered average RoA/RoE of ~5%/29.5% over FY18-20. While COVID-19 has disrupted the growth trajectory, recovery has been fairly sharp, with retail spends surpassing pre-COVID levels.

- We estimate a loan book / earnings CAGR of 27%/47% over FY21-23E, while margins are likely to remain broadly stable. We estimate credit cost to moderate gradually, and expect the company to report healthy return ratios with RoA/RoE of 6.6%/28.4% in FY23. We initiate coverage with a Neutral rating and TP of INR 1,200 (43x FY23E EPS).

8:53 AM

Top stocks to watch today

BPCL, OIL, Engineers India: Bharat Petroleum Corporation Ltd (BPCL) said it will exit Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore.

Quess Corp: The company announced the separation of roles of its Chairman and Managing Director. Suraj Moraje, currently Group CEO and Executive Director, will be elevated to Group CEO and Managing Director from April 1, while Ajit Isaac, currently Executive Chairman and MD, will continue in the role of Executive Chairman. READ MORE