Sensex ends flat after volatile trade, holds 52k; IT stks dip, metals shine

The broader markets ended higher today with the S&P BSE MidCap and SmallCap indices settling 0.2 per cent and 0.43 per cent up, respectively

9:25 AM

SBI hits fresh record high

9:23 AM

Central Bank zooms 12%

9:22 AM

PSBs jump on privatisation buzz; Bank of India surges 8% at open

9:20 AM

Sectoral trends on NSE

9:19 AM

Sensex Heatmap

9:18 AM

First Trade

9:17 AM

First Trade

9:14 AM

NEWS ALERT :: Adani Ports pays Rs 650 cr to financial creditors & Rs 55 cr towards CIRP for Dighi Port

>> NCLT had approved resolution plan for Dighi Port by Adani Ports in March 2020.

9:11 AM

Glenmark in focus :: Pharma major launches SUTIB

>>> SUTIB is the generic version of Sunitinib oral capsules to treat kidney cancer in India.

>> SUTIB is priced 96% lower than innovator brand

9:09 AM

Muthoot Finance in focus :: CRISIL upgrades long-term rating

>> Rating upgraded to AA+r/stable from AAr/positive

9:08 AM

Commodity Heatmap

9:06 AM

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

9:05 AM

Markets at Pre-open

9:03 AM

Markets at Pre-open

9:02 AM

BROKERAGE VIEW :: MOFSL on Vodafone Idea

CMP: Rs 12 | TP: Rs 11 (-9%) | Reco: Under Review to Neutral

>> VIL’s liquidity position remains fragile, with gross debt of INR1,174b and cash in hand of INR2.9. With FY22E estimated pre Ind AS 116 EBITDA of INR107b, the company remains in dire need of an immediate fund infusion. The management said it is in discussion with potential investors for the stated INR250b fund raise, but the timeline remains unclear.

>> The company saw an ARPU improvement of a mere 13% (over 2QFY20-3QFY21) v/s industry-wide price hike of ~25%. The ARPU increase translated into limited revenue/EBITDA benefit due to the huge subscriber churn owing to its low network investments. However, the churn has reduced significantly. VIL’s weak liquidity position restricts its capability to invest in network improvement, evident from reducing capex intensity. Assuming no subscriber churn, our workings indicate VIL needs an ARPU hike of over 70% in FY22E/FY23E to fulfill its interest obligations, capex, AGR liabilities, and spectrum liabilities in FY23.

>> The significant amount of cash required to service its debt, leaves limited upside opportunity for equity holders, despite the high operating leverage opportunity

from any source of ARPU increase. The current low EBITDA would make it challenging to service debt without an external fund infusion. Assuming 10x EVto-EBITDA with INR1,171b net debt, it leaves limited opportunity for equity shareholders. We assign an EV-to-EBITDA of 10x on a FY23E basis to arrive at our target price of INR11/share. We change our rating from Under Review to Neutral.