MARKETS: Sensex zooms 917 pts, Nifty nears 12K; Titan rises 7%, ITC up 4%

All that happened in markets today

12:12 PM

BROKERAGE RADAR | Motilal Oswal Financial Services on Power Grid Corp

TP: Rs 229 (+22%)

Stance: Buy

Power Grid’s (PWGR) 3QFY20 results highlight the company’s strong performance in the transmission segment, with adj. PAT increasing 13% YoY. FY20 commissioning target though would be dependent on timely commissioning of the Raigarh-Pugalur (~Rs 90b) project.

 

While declining order book and capitalization schedule does put risk of a slowdown in growth, valuations at 1.3x FY22E P/BV and ~7% dividend yield

are attractive for a company with steady RoEs of ~17%. Maintain Buy with a DCF-based TP of Rs 229/share.

12:08 PM

BROKERAGE RADAR | Motilal Oswal Financial Services on Coromandel International

CMP: Rs 632

TP: Rs 736 (+16%) Buy

• Factoring in the EBITDA/PAT beat of 14%/18% during 3QFY20, we increase our FY20/21 PAT estimates by 9%/8%.
• Additionally, the rising backward integration (post commencement of new phos acid plant) and the decline in phos acid prices should drive margin expansion as well.
• We expect revenue/EBITDA/PAT CAGR of 5%/12%/20% over FY19-22 and value the stock at 17x FY22E EPS (it has traded at an average P/E of 16x over the last 5 years). Our TP of INR736 implies 16% upside. Maintain Buy.

12:07 PM

Jan Auto Sales | Bajaj Auto's total sales dip 3% YoY

12:04 PM

NEWS ALERT | RBI moves SC, challenges Bombay HC’s order allowing sale of HDIL assets in PMC case: CNBC TV18

>> RBI tells SC, it is trying to revive the bank while Bombay HC order undermines the RBI's efforts.

>> If assets are sold as per Bom HC order, there would be no way that bank can be revived.

12:03 PM

BROKERAGE RADAR | HDFC Securities on Shoppers Stop

Industry pioneer STOP’s performance continues to be lackluster due to following reasons -

• the department format continues to lose footfalls courtesy struggling legacy standalone stores.
• Private label-led upside in top-line/profitability is expected to be gradual, if at all as the apparel space continues to fragment, 
• Cost of retailing is inching up (up 96bp/260bp YoY over 9MFY20/2 years),
• Working capital continues to balloon,
• Cost arbitrage between this ‘off-line pipe’ and online folks continues to shrink

We downgrade the counter to SELL (earlier NEUTRAL). Note: The de-rating cycle for global department stores has been quite severe and we fail to see why Indian counterparts buck the trend. We revise our DCF-based TP marginally upwards to Rs. 370/sh (earlier Rs. 360) – largely mimicking revision in FY21/FY22 EBITDA estimates (+4% each) to factor in better SSSG and revenue per sq. ft on low base.

11:45 AM

Reliance Industries is heading towards Rs 1,600 levels. Buy now

Reliance Industries soared nearly 2.6 per cent on the National Stock Exchange (NSE) on Tuesday and is among the top gainer pushing the market higher. On the BSE, the counter contributed over 100 points to the S&P BSE Sensex's 630-point rally till 10:45 am.

 

Technical charts suggest that there is more headroom for the stock, provided it is able to take out key levels going ahead on good volumes. READ MORE

11:33 AM

Thyrocare Technologies hits 52-week high, surges 28% in two days

Shares of Thyrocare Technologies surged 14 per cent to Rs 689 on the BSE on Tuesday after the company reported a strong operational performance with consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) expanding by 300 basis points in the December quarter (Q3FY20). READ MORE

11:12 AM

BSE500 stocks that hit 52-week high today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
ALKEM LAB	2416.55	2440.00	40.65	1.71
ASIAN PAINTS	1869.60	1883.75	2.20	0.12
BATA INDIA	1865.00	1874.00	16.10	0.87
BAYER CROP SCI.	4360.00	4467.70	113.65	2.68
DABUR INDIA	506.70	507.45	9.25	1.86

11:11 AM

TVS Motor Q3 preview: Volume decline to dent earnings, margins may improve

TVS Motor Company is scheduled to announce its December 2019 quarter results later in the day. Analysts expect the automaker to post a double-digit decline in revenues as well as profits, largely due to fall in volumes while realization improvement will cushion the blow. During the quarter under review, TVS Motor Company's volumes declined 17 per cent YoY and 7.3 per cent sequentially. READ MORE

11:06 AM

Market check

11:02 AM

MARKET UPDATE:: Nifty reclaims 11,900-level

10:48 AM

Shriram Transport Finance zooms 13% on strong Q3FY20 results

Shares of Shriram Transport Finance Company surged 13 per cent to Rs 1,113 on the BSE on Tuesday on stable assets quality with gross non-performing assets (GNPL) ratio improving 10bps in December quarter on sequential basis, driven by lower net slippages. The company's net profit grew 38.1 per cent year on year (y-o-y) to Rs 882 crore in the quarter ended December 2019 (Q3FY20). Profit before tax (PBT) rose by 20.6 per cent at Rs 1,186 crore in the quarter on rise in other income and fall in loan losses and provisions. READ MORE

10:44 AM

PNB rises 3% ahead of Q3 results, nod to raise Rs 1,000 crore via bonds

The bank is slated to report its Q3FY20 numbers today amid expectations of rise in net profit on the back of recovery from National Company Law Tribunal (NCLT) and lower slippages.

 

“PNB, similar to other corporate banks, should see benefit from recovery from NCLT and slippages should be slightly lower as last quarter impact was from daily tagging of NPAs and hence credit cost will come off and see improvement in provision coverage ratio (PCR),” wrote analysts at Prabhudas Lilladher in a results preview note. READ MORE

10:39 AM

BUZZING STOCK | Honeywell Automation jumps nearly 14%

10:37 AM

Manappuram Finance slips 6% after 5% equity changes hands in block deals

According to a Bloomberg report, Baring India Private Equity Fund II is offering 42 million shares (5 per cent) of the company in an accelerated book-building with a floor price of Rs 172 per share, which are at a discount of 6.57 per cent to the last closing prices. READ MORE