Financials, RIL lift indices; Sensex jumps 700 pts, Nifty ends at 10,092

All that happened in the markets today

11:57 AM

AGR Case | Have no security or proposal to give: Voda Idea's counsel to SC

>> Only proposal is to work and pay the AGR dues. 

 

>> Have bank guarantees of Rs 15,000 cr that can be considered as security

(As reported by CNBC TV18)

11:56 AM

AGR Case | After servicing debt of Rs 1 lakh cr, paying creditors, Co continues to make losses: Voda Idea's counsel

>> Have made no profit for past very many quarters. 

 

>> Most assets are given as securities to bank to secure credit.
 

11:52 AM

AGR Case | Extremely precarious position for the Co; not in a position to give any fresh Bank guarantee: Voda Idea's counsel to SC

>> Parent company has written off investment, my losses are over Rs 1 lakh guarantees. 

 

>> Over Rs 10,000 cr of bank guarantees are lying with the DoT, should be considered as security.

(As reported by CNBC TV18)

11:50 AM

AGR Case | Bank guarantees of Rs 10,800 cr is pending with DoT, Airtel's counsel to SC

>> Can be encashed if Airtel defaults on AGR payments

11:50 AM

MARKET UPDATE:: PSU stocks gain

11:49 AM

AGR Case | Our spectrum of 1.12 lakh cr, licenses & bank guarantees are far in excess of the demands made, Airtel's counsel to SC

>> Endorse the suggestion by Solicitor General to allow DOT to consider our proposal

(As reported by CNBC TV18)

11:45 AM

AGR Case | Have paid Rs 18,000 cr, about Rs 1,000 cr is pending, Bharti Airtel's counsel to SC

11:42 AM

AGR Case | Since PSUs not in telecom services' biz, we are withdrawing demands against them: Solicitor General to SC

>> Says, have received affidavits from telcos on securities; Govt can go back and consider the submissions by telcos.

(As reported by CNBC TV18)

11:38 AM

NEWS ALERT | Advocates assemble for the hearing in the AGR case, judges awaited: CNBC TV18

11:33 AM

STOCK ALERT | Coal India gains as PM Modi addresses the launching of auction of 41 coal mines for commercial mining

11:31 AM

BROKERAGE VIEW:: HDFC Securities on Indraprastha Gas

Our ADD recommendation on Indraprastha Gas with a TP of Rs 520 is based on (1) Volume growth of ~4.7% CAGR over FY20-22E, (2) Portfolio of mature, semi-mature and new Geographical Areas (GA) and (3) Pricing power as evident in 3.9% CAGR growth in per unit EBITDA over FY17-20 to INR 6.5/scm.

11:29 AM

BROKERAGE VIEW:: Prabhudas Lilladher on Ipca Labs

Rating: BUY | CMP: Rs 1,563 | TP: Rs 1,839

IPCA held its strong guidance for FY21E with 1) Revenue growth of 14-17% 2) EBITDA margin expansion of 100-150bps and 3) domestic formulation growth of 10-12% in tough environment. We believe IPCA’s Q4FY20 performance and growth visibility was far better as compared to its peers. Also, future prospects are not depended on exogenous factors (like resolution from FDA, new approval and tender win). We believe FDA’s resolution in FY21E for its three plants would lead to an earnings surprise. Accordingly, we value IPCA at Rs 1,839(earlier Rs 1,728) on 26x PE of FY22E and upgrade to Buy (earlier Accumulate) due to marginal change in earnings estimate.  

11:27 AM

BROKERAGE VIEW:: ICICI Securities on Ipca Labs

Ipca has maintained growth tempo in FY20, as was the case for FY19. Besides strong domestic formulations franchise, it continues to thrive on exports front, both in formulations, APIs. Though there are fluctuations in the institutional business, the management remains upbeat on prospects. Going ahead, with firm growth tempo in domestic formulations and good prospects both for API exports and formulation exports, we expect further improvement in financial parameters. The company will continue to remain a compelling bet on the back of well-rounded growth prospects for FY20–22E- sales, EBITDA and PAT CAGR of 13%, 22% and 29%, respectively. We arrive at our target price of Rs1,900 (24x FY22E EPS of Rs 79.2).

11:26 AM

BROKERAGE VIEW:: Edelweiss Securities on Automobiles

• We downgrade our recommendations on Bajaj Auto (BJAUT) to ‘HOLD’ from ‘BUY’. Recently, we downgraded Hero MotoCorp and Mahindra & Mahindra (M&M; read here) to ‘HOLD’. We maintain our ‘HOLD’ on Maruti Suzuki (MSIL). Our only ‘BUY’ recommendations are on Eicher Motors (EIM) & Tata Motors (TML). We prefer stocks that can: 1) Gain market share. 2) Have a strong product cycle tailwind. 3) Have government support– direct or indirect.
• Earnings–where do we stand: Our current FY22 EPS estimates are ~2% to 9% below consensus, except for TML. For TML our FY22E EBITDA is 6% above consensus.
• Valuations – Little margin of safety: Given the limited support from government, weak income profile and higher costs, demand recovery will be protracted and delayed. Post the run up in prices, we believe that valuations do not provide the required margin of safety as they have mean reverted to five years’ average (versus a deep discount earlier). With the exception of EIM (on PE) and TML (on EV/EBITDA), all the stocks are trading at above their 5 year average valuation.
• Key risks to our call – 1) Strong government actions such as tax cut, or direct income support, which could meaningfully revive demand. and 2) Better-than-expected pricing discipline, thereby providing margin and FCF support.

11:22 AM

BROKERAGE VIEW:: Edelweiss Securities on Muthoot Finance

Asset quality remains strong with gross-stage 3 assets declining to sub-2.2% (2.5% in Q3FY20). Other businesses—home finance, Belstar and insurance broking—have been understandably held back by adverse circumstances. We believe the current environment offers a unique growth and asset tailwind to gold financing, forcing our hand to raise FY21/FY22E EPS by 16%/26%—a rarity in these times. We are also the raising target to 2.5x consolidated FY22E BVPS (from 2x), thereby leading to a revised TP of Rs 1,160 (earlier Rs 883). Frankly, our FY22E RoE of 28% and the low asset quality risk could have justified an even higher multiple, but we recognise that gold financing is after all a mature credit category. Supernormal profitability at low risk would shine through on account of i) a paucity of credit substitutes, ii) gold price tailwind and iii) thinning out of NBFC gold loan competition over the last few years, but a cyclical mean reversion is inevitable. Maintain ‘BUY’.