Sunday, December 22, 2024 | 03:31 PM ISTEN Hindi

Markets ignore geopolitical tension, Sensex ends 376 points higher

All that happened in the markets today

SI Reporter New Delhi

Traders monitor BSE index at a brokerage firm, as the Sensex goes down, in Mumbai | PTI

Traders monitor BSE index at a brokerage firm in Mumbai | PTI

9:04 AM

Top gainers and losers on S&P BSE Sensex at Pre-open

9:03 AM

Market at Pre-open

9:03 AM

Market at Pre-open

8:56 AM

Nomura on Affle India

We reiterate our Buy rating with a lower target price of Rs 1,785 (Rs 1,900 previously), still based on 35x average of FY22-23F EPS (now INR51). Our revenue estimates are up 1-4%, and our EBIDTA margin estimates are lower by ~250bp, led by acquisition and the impact from COVID-19, and our EPS is lower by ~20% over FY21-22F. Downside risks include: 1) technological disruptions and 2) inability to turn around acquisitions.

8:54 AM

Motilal Oswal Securities on Tata Motors

We lower our FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business. As a result, both FY21/FY22 would witness PAT loss. The stock trades at 2.9x FY22 EV/EBITDA and 0.8x P/BV. Maintain Buy, with target price of Rs 122 (Jun’22-based SOTP).

8:51 AM

COMMENT :: Samir Arora of Helios Capital

8:49 AM

Covid-19 impact: Dividend payout by IT firms likely to dip further in FY21

Dividend payout by information technology (IT) services firms in the ongoing financial year is likely to witness a dip as compared to previous years, as companies are aggressively looking at conserving cash to tide over Covid-induced slowdown. Possible decline in free cash flow because of fall in net profit, additional expenses due to the Covid-19 pandemic, and cash conservation for prospective acquisitions are seen as key factors for this likely scenario. READ MORE

dividend, income, money

8:46 AM

Edelweiss on Havells India

Demand weakness—particularly in real estate-heavy segments such as switchgears and wires—impacted growth in FY20 as the lockdown led to a loss of typically lumpy revenue stream in the last few days of March . Despite gross margin benefits (low input price), RoCE/RoEs fell sharply by 270/600bps led by a drop in overall revenue, negative operating leverage and recent capacity addition (Lloyd business).

While Havells’s dominant channel-based business model would help it sustain the ‘largest FMEG brand’ tag, in our view, subdued demand particularly in real estate-driven segments and challenges in scaling up Lloyd will pose risk to growth, potentially capping its valuation (already rich at 44x FY22E EPS).

8:45 AM

Centrum on Dhanuka Agritech

The stock currently trades at 15.3x FY22E EPS, 11.6x EV/EBITDA and 3.3x P/BV. The stock has reflected the improved performance over FY20, with a 87% increase seen in the last 3 months alone. However, looking at the multiples in the context of higher EPS growth (revised up by 27.1/29.3% for FY21/22E), we believe that there is more momentum in store. The stock has traded at an average PEG multiple of 2.3x (last 6-year average excluding FY19 which was negative) and our target price of Rs850/sh is based off a 20x FY22E EPS, implying a PEG of only 1x – this is 31% upside from CMP. BUY

8:43 AM

Anand Rathi on Wim Plast

The lockdown hurt Wim Plast’s Q4 results. However, a strong 20% EBITDA margin, its net-cash status and FCFs were positives. While furniture will take longer to recover, air coolers (FY20 sales up 12% y/y) may see good growth owing to the distribution-network expansion and greater brand visibility, which will keep Cello a meaningful player in the next 3-5 years (key to a re-rating).

At ~8.3x FY22e P/E, we see good potential in the stock from a long-term perspective, given the company’s strong balance sheet and credible management. We maintain our Buy recommendation, with a lower target of Rs 491. Recovery in furniture and profitable growth in air-coolers are key monitorables.

8:42 AM

STOCKS TO WATCH

Earnings today: Hindustan Petroleum, Ipca Labs, and NMDC are among the 25 companies slated to report their March quarter results today.

Panacea Biotec's managing director Rajesh Jain has claimed that the firm expects its Covid-19 vaccine to enter phase-1 of human trial by October.

The retail portion of SBI Life Insurance Company’s offer for sale garnered just 16 per cent subscription. However, the OFS witnessed twice demand as against the shares on offer from institutional investors.

Axis Bank will also be in focus as the bank's executive director and retail banking head, Pralay Mondal, has quit within 14 months of joining.

Tata Motors may cut about 1,100 temporary jobs at Jaguar Land Rover. Further, the company is cutting capital expenditure at JLR by 40 per cent to £2.5 billion in FY21. It reported a pre-tax loss of Rs 9,313 crore, as compared to profit before tax of Rs 1,265 crore in the year-ago quarter. It's consolidated net loss was Rs 9,894 crore.

JK Tyre: K Tyre and Industries on Monday reported a consolidated net loss of Rs 52.78 crore for the fourth quarter ended March 31, 2020. The company had posted a net profit of Rs 33.66 crore for January-March period of 2018-19. Revenue from operations declined to Rs 1,794.76 crore for the fourth quarter as against Rs 2,703.71 crore in the same period of 2018-19, JK Tyre and Industries said in a regulatory filing.

8:41 AM

COMMENT :: Jefferies on markets & economy

With nearly all COVID ICU beds full in Mumbai and 2/3rds in Delhi and TN, the medical infrastructure is stressed in these locations. The TN govt. has re-imposed a lockdown in Chennai and 3 other districts from 19-30 June. Delhi has resisted a new lockdown. Karnataka has, meanwhile, made a 14-day quarantine compulsory for travelers from the states of Delhi and TN. Re-lockdowns are a significant risk for a smooth economic recovery with India still not fully opened up

8:39 AM