Sensex ends lacklustre trade 272 pts up; Nifty tops 14,700; metal, IT rally
The benchmark S&P BSE Sensex swung within a band of 400 points, hitting a high and low of 49,011 and 48,614 levels, respectively
 "MARKET LIVE: Sensex rises 300 pts, reclaims 49k; Nifty tests 14,750")
9:26 AM
Maharashtra Seamless rallies nearly 3% on new ordr win
ONGC has issued the letter of award to Jindal Drilling & Industries for deployment of Jack-up drilling rig 'Jindal Explorer' owned by Maharashtra Seamless on charter hire contract for a period of 3 years.
9:25 AM
Tata Motors holds gains despite reports of CCI probe
The Competition Commission of India (CCI) has ordered a detailed probe against Tata Motors for alleged abuse of its dominant position with respect to dealership agreements.
9:23 AM
Result Reaction :: Tata Steel up over 1%
Tata Steel reported a higher-than-expected consolidated net profit at Rs 6,644 crore in the March quarter (Q4) of FY21, against a net loss of Rs 1,481 crore in the corresponding period last year. The company’s performance was best-ever across metrics such as revenue, Ebitda and net profit (excluding exceptional items).
9:22 AM
IDBI Bank jumps 10% as Cabinet approves divestment proposal
The Cabinet Committee on Economic Affairs has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd, government said on Wednesday.
9:20 AM
Opening Bell
9:19 AM
Sensex Heatmap :: Bajaj Auto, ONGC top gainers
9:18 AM
Opening Bell :: Sensex off to a firm start
9:12 AM
Commodity prices in early deals
9:11 AM
Top gainers and losers on the S&P BSE Sensex in Pre-open
9:08 AM
Markets at Pre-open
9:06 AM
Markets at Pre-open
9:04 AM
BROKERAGE VIEW :: Phillip Capital on Adani Ports and SEZ
Reco: BUY | TP: Rs 850
ADSEZ reported modest set of numbers, slightly below expectations. Revenue growth was slightly weak due to tepid SEZ & Logistics income, while margin remained stable. Overall port performance remained strong, as the company ended FY21 with cargo growth of +11% (+1.6% organic) – an achievement in the covid impacted year.
With the acquisition of Krishnapatnam and Gangavaram ports, the company now has a virtual monopoly in the ports sector (25% market share), and is expanding the same to logistics. We continue to view ADSEZ as an excellent way to play the economic recovery cycle, while owning a fundamentally superior business from a long-term perspective. Maintain BUY.
With the acquisition of Krishnapatnam and Gangavaram ports, the company now has a virtual monopoly in the ports sector (25% market share), and is expanding the same to logistics. We continue to view ADSEZ as an excellent way to play the economic recovery cycle, while owning a fundamentally superior business from a long-term perspective. Maintain BUY.
9:02 AM
On the basis of store exposure to the affected area, Shoppers Stop will witness the maximum impact while VMart will witness the minimum impact. Trent, ABFRL and VMart revenue to be impacted by 12%/ 9% and 15% respectively and EBITDA to be impacted by 24%/14% and 21% respectively in FY22e. We are not expecting any material impact on Avenue Supermarts as of now.
BROKERAGE VIEW :: Antique Stock Broking on Retail
Overall we believe that the retailers will witness a major impact from second half of April with gradual pick up in lockdown curbs across states However, the overall impact will not be as severe as FY21. As per our analysis, there could be an initial revenue impact of 9-16% and EBITDA impact of 14-35% across fashion retailers in FY22e.
On the basis of store exposure to the affected area, Shoppers Stop will witness the maximum impact while VMart will witness the minimum impact. Trent, ABFRL and VMart revenue to be impacted by 12%/ 9% and 15% respectively and EBITDA to be impacted by 24%/14% and 21% respectively in FY22e. We are not expecting any material impact on Avenue Supermarts as of now.
We maintain our HOLD recommendation for Avenue Supermarts and Trent and our BUY recommendation for ABFRL, VMart, V2 Retail and Shoppers Stop. We revise our target price of Avenue Supermarts, Trent, ABFRL, VMart, V2 Retail and Shoppers Stop to Rs 2,682, Rs 730, Rs 206, Rs 2981, Rs 223 and Rs 240 respectively.
8:59 AM
BROKERAGE VIEW :: Antique Stock Broking on CEAT
Reco: BUY | TP: Rs 1,725
CEAT reported lower than expected EBITDA margin due to higher raw material prices. Revenue grew 46% YoY, led by strong volume growth across segments. EBITDA Margin of 11.4% was below our estimates on account of higher raw material cost. The pandemic induced lockdown remains a concern on OEM and retail demand in the near-term, even as the company's plants are operational currently. We expect strong growth in CEAT's sales over FY21-23E, led by demand growth in replacement and OEM segments and market share gain backed by capacity expansion.
The company has taken ~3-4% price increases to partly pass-on the increase in RM cost, however we expect EBITDA margin to decline 100bp in FY22E. The reduction in working capital and partial deferment of capex, combined with strong profitability in the last three quarters, has resulted in strong FCF and reduction in gross debt.
However, we do expect higher capex and an increase in working capital in FY22E, which will lead to an increase in gross debt. CEAT has announced an investment of INR 12bn to expand TBR capacity. We maintain BUY with a revised target price of INR 1,725 (previously INR 1,864).
CEAT reported lower than expected EBITDA margin due to higher raw material prices. Revenue grew 46% YoY, led by strong volume growth across segments. EBITDA Margin of 11.4% was below our estimates on account of higher raw material cost. The pandemic induced lockdown remains a concern on OEM and retail demand in the near-term, even as the company's plants are operational currently. We expect strong growth in CEAT's sales over FY21-23E, led by demand growth in replacement and OEM segments and market share gain backed by capacity expansion.
The company has taken ~3-4% price increases to partly pass-on the increase in RM cost, however we expect EBITDA margin to decline 100bp in FY22E. The reduction in working capital and partial deferment of capex, combined with strong profitability in the last three quarters, has resulted in strong FCF and reduction in gross debt.
However, we do expect higher capex and an increase in working capital in FY22E, which will lead to an increase in gross debt. CEAT has announced an investment of INR 12bn to expand TBR capacity. We maintain BUY with a revised target price of INR 1,725 (previously INR 1,864).
8:58 AM
BROKERAGE VIEW :: Antique Stock Broking on Blue Dart
Reco: BUY | TP: Rs 6,500
Bluedart Express (BDE) registered strong exit to FY21 with another quarter of robust operating performance. Company's topline grew 33% YoY to INR9.66bn (est: INR9.5bn), after a 21% YoY growth in 3Q, partly benefitting from soft base. Standalone EBITDA spiked 11x YoY to INR1.74bn (est: INR1.5bn). Operating margins remained steady and higher at 18% vs 16.8%QoQ (2.2%YoY) benefitting from positive operating leverage, higher pricing YoY and cost efficiency initiatives.
PAT in 4Q stood at INR891mn vs loss of INR238mn YoY. After bottoming in 1Q, the company has been delivering better than expected results for past 3 quarters on the back of improved economic activity (driving Topline), traction in ecommerce, higher pricing and several cost rationalization initiatives - all contributing to superior margins in consecutive quarters. Going forward, impact of partial lockdowns on account of second Covid wave is getting visible in slowing topline in May.
We have accounted for Topline moderation in 1HFY22; however, on higher margin assumptions, our EPS estimates still go up by 12%/20% for FY22/FY23. Else for the risk associated with Covid second wave, the upgrade would have been even higher. We raise Price Target to INR6,500 (earlier INR5,440), valuing the stock at 45x FY23 EPS. We maintain BUY rating on the stock.
Bluedart Express (BDE) registered strong exit to FY21 with another quarter of robust operating performance. Company's topline grew 33% YoY to INR9.66bn (est: INR9.5bn), after a 21% YoY growth in 3Q, partly benefitting from soft base. Standalone EBITDA spiked 11x YoY to INR1.74bn (est: INR1.5bn). Operating margins remained steady and higher at 18% vs 16.8%QoQ (2.2%YoY) benefitting from positive operating leverage, higher pricing YoY and cost efficiency initiatives.
PAT in 4Q stood at INR891mn vs loss of INR238mn YoY. After bottoming in 1Q, the company has been delivering better than expected results for past 3 quarters on the back of improved economic activity (driving Topline), traction in ecommerce, higher pricing and several cost rationalization initiatives - all contributing to superior margins in consecutive quarters. Going forward, impact of partial lockdowns on account of second Covid wave is getting visible in slowing topline in May.
We have accounted for Topline moderation in 1HFY22; however, on higher margin assumptions, our EPS estimates still go up by 12%/20% for FY22/FY23. Else for the risk associated with Covid second wave, the upgrade would have been even higher. We raise Price Target to INR6,500 (earlier INR5,440), valuing the stock at 45x FY23 EPS. We maintain BUY rating on the stock.
Topics : MARKET WRAP Markets Sensex Nifty50
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First Published: May 06 2021 | 7:33 AM IST
