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
 "tocks, markets, stock market, broker, trader")
8:59 AM
BROKERAGE VIEW :: MOFSL on Voltas
CMP: Rs 1,058 | TP: Rs 1,125 (+6%) | Reco: Neutral
>> We believe the recent market price adequately factors in franchise strength of the UCP business. We note that a large part of the margin surprise is due to cut in ad spends and low-cost inventory that was procured last year. At the CMP, the UCP business is trading at a FY22E/FY23E P/E of 59x/51x.
>> Valuations are expected to remain elevated going into the summer season, with high expectations as well as likely announcement of a detailed PLI scheme for the AC industry. We increase our FY21E/FY22E/FY23E EPS estimate by 5%/11%/15% owing to the strong performance in 3QFY21 and maintain our Neutral rating with a TP of INR1,125/share.
>> While VOLT remains our preferred play in the underpenetrated AC industry in India over peers like BLSTR (Sell rating), we prefer WHIRL as our top idea in the White Goods space as it offers the best riskreward matrix at present
>> We believe the recent market price adequately factors in franchise strength of the UCP business. We note that a large part of the margin surprise is due to cut in ad spends and low-cost inventory that was procured last year. At the CMP, the UCP business is trading at a FY22E/FY23E P/E of 59x/51x.
>> Valuations are expected to remain elevated going into the summer season, with high expectations as well as likely announcement of a detailed PLI scheme for the AC industry. We increase our FY21E/FY22E/FY23E EPS estimate by 5%/11%/15% owing to the strong performance in 3QFY21 and maintain our Neutral rating with a TP of INR1,125/share.
>> While VOLT remains our preferred play in the underpenetrated AC industry in India over peers like BLSTR (Sell rating), we prefer WHIRL as our top idea in the White Goods space as it offers the best riskreward matrix at present
8:57 AM
BROKERAGE VIEW :: MOFSL on Info Edge
CMP: Rs 5,520 | TP: Rs 5,440 (-1%) | Reco: Neutral
>> For FY21E, we expect a 14% revenue decline, largely driven by a 32% drop in billings in 1HFY21. While 1QFY21 resulted in an unprecedented billings decline,
>> With the management investing prudently (clocked an XIRR of over 35%), some of INFOE’s current investments would scale up in the medium-to-long term, further contributing to the group’s valuation.
>> We have individually valued INFOE’s group entities using DCF-based valuation (WACC: 11%; terminal growth rate: 5%). Our SoTP-based target price stands at
>> For FY21E, we expect a 14% revenue decline, largely driven by a 32% drop in billings in 1HFY21. While 1QFY21 resulted in an unprecedented billings decline,
the same has shown an improvement in 2Q/3Q. With the expectation of additional jobs coming in (on pent-up demand) and pressure on real estate developers to sell off inventory, we expect 25% revenue growth for FY22E/FY23E.
>> With the management investing prudently (clocked an XIRR of over 35%), some of INFOE’s current investments would scale up in the medium-to-long term, further contributing to the group’s valuation.
>> We have individually valued INFOE’s group entities using DCF-based valuation (WACC: 11%; terminal growth rate: 5%). Our SoTP-based target price stands at
Rs 5,440/share. Maintain Neutral.
8:55 AM
BROKERAGE VIEW :: MOFSL on ONGC
CMP: Rs 98 | TP: Rs 115 (+17%) | Reco: Buy
>> ONGC reported in-line sales volumes, with realization at USD43.2/bbl. Crude oil production has reached last year’s levels, while gas is still marginally lower YoY due to lower offtake by customers on account of COVID-19.
>> For FY21/FY22, the company has guided for oil production at ~22.5mmt/23mmt (flat YoY), while gas production is set to increase to ~23bcm/25bcm (+8% YoY), although lower than earlier estimates.
>> The capex plan for FY21 stands at ~INR290b, and the company remains confident of achieving its target for the year. Capex guidance for FY22 would once again normalize to the historical average of INR320b.
>> Standalone debt was INR128.6b at the end of Dec’20 (down from INR139.5b at the end of FY20). The board has approved an interim dividend of Rs 1.75/share.
>> ONGC reported in-line sales volumes, with realization at USD43.2/bbl. Crude oil production has reached last year’s levels, while gas is still marginally lower YoY due to lower offtake by customers on account of COVID-19.
>> For FY21/FY22, the company has guided for oil production at ~22.5mmt/23mmt (flat YoY), while gas production is set to increase to ~23bcm/25bcm (+8% YoY), although lower than earlier estimates.
>> The capex plan for FY21 stands at ~INR290b, and the company remains confident of achieving its target for the year. Capex guidance for FY22 would once again normalize to the historical average of INR320b.
>> Standalone debt was INR128.6b at the end of Dec’20 (down from INR139.5b at the end of FY20). The board has approved an interim dividend of Rs 1.75/share.
>> ONGC is trading at 3.4x FY23 EV/EBITDA and 4.8x FY23 PE. We value the company at 10x Sep’22E adj. EPS of INR8.2 and add the value of investments to arrive at Target Price of INR115. Reiterate Buy.
8:51 AM
Top stocks to watch today
TCS: Tata Consultancy Services (TCS), on Monday, said it has launched a Neural Automotive and Industrial Experience Center in Troy, Michigan, to help customers accelerate innovation.
Earnings today: Nestle India, Varun Beverages, R Systems International, Schaeffler India, Advent Computer Services and GM Polyplast will announce their quarterly earnings today. READ MORE
8:41 AM
FIIs extend buying spree in Indian markets
8:39 AM
Rupee check
Source: Bloomberg
8:37 AM
Oil prices climb as deep freeze shuts US oil wells, curbs refineries
>> Oil prices rose on Tuesday as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world’s biggest oil producer.
>> Prices also gained as Yemen’s Iran-aligned Houthi group said it struck airports in Saudi Arabia with drones, raising supply concerns in the world’s biggest oil exporter, and on optimism for a global economic recovery amid accelerated Covid-19 vaccine rollouts.
>> Prices also gained as Yemen’s Iran-aligned Houthi group said it struck airports in Saudi Arabia with drones, raising supply concerns in the world’s biggest oil exporter, and on optimism for a global economic recovery amid accelerated Covid-19 vaccine rollouts.
>> Brent crude was up 11 cents, or 0.2%, at $63.41 a barrel, after rising to its highest since January 2020 in the previous session. US West Texas Intermediate (WTI) crude futures gained 62 cents, or about 1%, to $60.09 a barrel.
(Source: Reuters)
(Source: Reuters)
8:33 AM
SGX Nifty Update
>> At 8:30 am, the index was at 15,348 levels, up 9 points.
8:32 AM
Wall Street alert
US stock market was closed on Monday on account of President Day holiday
8:31 AM
Asian market check
Asian shares held firm on Tuesday. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent while Japan’s Nikkei rose 0.4 per cent to a 30-year high. The mainland Chinese markets will remain closed for Lunar New Year through Wednesday
8:19 AM
Good morning, readers! Welcome to the Business Standard live blog.
Catch all the live market updates here.
Topics : MARKET WRAP Markets Sensex NSE BSE SGX Nifty Nifty 50 Dalal Street Wall Street stock market Bank of India nestle nikkei Tata Motors
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Feb 16 2021 | 8:02 AM IST
