MARKET WRAP: Sensex ends 114 pts higher, ITC surges 7%; India VIX drops 8%

All that happened in the markets today

12:18 PM

NEWS ALERT :: Only 33% flights allowed to operate, says Hardeep Singh Puri

>> No food, magazine allowed during Boarding

>> Only one check-in bag to be allowed

>> Only passengers with confirmed web check-in can enter airport; no physical check-in at counters

12:14 PM

Broader market check :: S&P BSE SmallCap index rises 1.4%

12:05 PM

AAI releases guidelines for resuming flights; Aarogya Setu app mandatory

The Airports Authority of India (AAI) issued a standard operating procedure (SOP) to airport operators on Wednesday for recommencement of domestic flights from May 25. Civil Aviation Minister had announced on Wednesday that domestic flight services would resume from May 25 onwards in a calibrated manner. READ MORE  

11:57 AM

BROKERAGE VIEW:: Emkay Global Financial Services on Ultratech Cement

TP: Rs 3,974 | Rating: BUY 

• UTCEM’s Q4 results were above estimates, led by higher blended realization (Rs5,049/ton vs. estimated Rs4,918/ton). Consolidated EBITDA came in at Rs24.1bn vs. estimated Rs21.5bn, while EBITDA/ton stood at Rs1,122 vs. estimated Rs995.
   
• Key positives: 1) UNCL’s EBITDA/ton at Rs1,400; 2) Century’s plant utilization at 83% vs. 55% in Q3; and 3) Rs17.7bn qoq reduction in net debt. Key negatives: 1) India operations volume decline of 16.4%, indicating market share loss and 2) an increase in lead distance.
   
• The plants of UTCEM are operating at a capacity utilization of 65-70% for the last few days. Demand may come under pressure in the near-term due to the migration of laborers. The target is to reduce overheads by 10% in FY21 and any major capex would be deferred.
   
• Sales volumes may come under pressure in FY21 due to an expected slowdown in infrastructure projects and housing demand. UTCEM’s cost-saving measures would help profit improvement when demand recovers. We maintain Buy/OW in sector EAP.

11:50 AM

MARKET UPDATE | PVR up over 3%

11:41 AM

Sebi advises India Inc to make enhanced disclosures on Covid-19 biz impact

“Listed entities should endeavour to ensure that all investors have access to timely, adequate, and updated information. To this end, entities are encouraged to evaluate the impact of Covid-19 on their business, performance and financials — both qualitative and quantitative — to the extent possible, and disseminate the same,” the market watchdog said in a notification. READ MORE

11:34 AM

Confused about when to buy a stock? Here's what you need to know

Buy' signals are cues for a trader to enter/purchase a stock once the technical setup meets their condition to go long. In order to spot such opportunities, one needs to first gauge the overall trend by correlating different indicators and chart patterns with price momentum. READ MORE

11:23 AM

JK Lakshmi Cement soars 11% on strong March quarter results

The management said the company's concerted efforts in improving product mix, market optimisation, enhancing the premium products sales, reduction in logistic costs and improvement in plant efficiency parameters enabled Company to post better returns. The softening of pet coke prices also helped it to improve its margins, it added. READ MORE  

11:07 AM

BUZZING STOCK | India Cements advances 7%

10:53 AM

MARKET UPDATE | Consumer discretionary stocks rally; Spencer's Retail, EIH climb 7%

10:42 AM

Jubilant FoodWorks: 'Delivery is king', but overall sales crucial for stock

Not only are their own delivery set-ups expected to help reduce the impact, they will also help register faster business recovery amid changing consumer behaviour (away from dine-ins), even after the lockdown is lifted.  READ MORE

10:34 AM

Bajaj Auto rallies 6% on better-than-expected March quarter performance

On the revenue side, the company reported a 8.1 per cent YoY de-growth at Rs 6,815.85 crore due to lower sales volumes on account of the novel coronavirus-led lockdown. This was better than what was expected by Axis Capital which had factored-in a 13 per cent YoY decline. READ MORE 

10:29 AM

BROKERAGE VIEW:: Prabhudas Lilladher on Larsen & Toubro Infotech

Rating: HOLD | CMP: Rs 1,755 | TP: Rs 1,598

Management expects sequential revenue decline in mid-single digit in 1QFY21. Growth moderation in top accounts and higher reliance on net new large deal wins for growth can lead to pressure on margins. Our revenue estimates stand intact but higher tax rate & lower forex gains led to EPS cut by 5% for FY22E. We value LTI now on 16x earnings multiple (earlier 14x) to arrive at a changed target price of Rs.1598 (earlier: Rs.1403). LTI is currently trading at 20.7x/17.6x earnings multiple. Valuations curtails upside now. Maintain Hold.

10:23 AM

BROKERAGE VIEW:: YES Securities on UltraTech Cement

Notwithstanding the fact that current utilization level of 60-70% for UTCEM is encouraging, we believe that there is limited room for further improvement of utilization level in the medium term as labour migration and arrival of monsoon would drag demand growth. Going ahead, we estimate volume/EBITDA CAGR of 5%/2.7% over FY20-FY22 respectively. Currently UTCEM is trading at EV/EBITDA at ~11.4x and EV/te of $134 on FY22E. Taking an average of EV/EBITDA and DCF derived values, we have a target of Rs 4,413/share (implied EV/EBITDA multiple of 14x on FY22E). We maintain our BUY rating on the stock.

10:21 AM

BROKERAGE VIEW:: ICICI Securities on JSW Energy

The company has put GMR Kamalanga (GKEL) acquisition on hold, and although its 10GW target in the medium term has been maintained, incremental addition will majorly come from renewables. Ind-Barath Utkal acquisition remains on track awaiting NCLT approval. We revise downwards our EPS estimates for FY21E/FY22E by 28.7%26.4/%, mainly due to the exclusion of GKEL and lower merchant prices. The stock has corrected significantly resulting in a substantial

upside in our target price. However, with inorganic growth under jeopardy, we do not foresee any near-term triggers. In fact, the next trigger will only be clarity on its cash utilisation strategy (higher dividends/buybacks) given the low capex outlook in the near term. Maintain BUY with a revised target price of Rs 60 (earlier: Rs93).