F&O expiry: Sensex up 32 pts, ends April series below 50,000; metals shine

Among key sectoral indices, robust global demand lifted the Nifty Metal index to record peak of 4,869 on the NSE today

9:21 AM

Sector Watch :: All sectoral indices on NSE trade in the green

9:20 AM

Heat Map (Sensex)

Sea of green

9:19 AM

Nifty50 vaults above 15,000

9:18 AM

OPENING BELL :: Sensex jumps 500 points, tops 50,000

9:05 AM

COMMODITY CHECK

9:03 AM

Sensex Heatmap | Top gainers & losers in pre-open trade

9:02 AM

Nifty tops 14,950 in pre-open trade

9:01 AM

Pre-open Session | Sensex gains 200 points

9:00 AM

BROKERAGE VIEW :: Kotak Securities on Metals and Mining sector

China has announced a long-awaited decision to withdraw export rebates on major finished steel products and cut import duty on various semi-finished, crude and scrap steel. By discouraging exports, China is looking to support domestic demand while restricting supply to reduce emissions. China’s withdrawal from the steel export market should keep ex-China steel prices/margins elevated for longer. Domestic flat prices are currently at 15% discount to import parity and dealers expect a price hike of Rs2,000-3,000/ton hike for May 2021. Expect earning upgrades to continue. TATA is our preferred pick.

8:58 AM

BROKERAGE VIEW :: Kotak Securities on SIS

SIS reported decent revenue growth of 11% yoy, ahead of estimates, led by the international business (up 32% yoy). Margins, however, disappointed as EBITDA margins of both the India security and FM businesses missed estimates. On the positive side, SIS continued to generate strong operating cash flow in 4Q due to healthy collections and steady growth. We trim FY2022-23 estimates by 6%; BUY with SoTP-based FV of Rs430 (Rs460 earlier).

8:56 AM

BROKERAGE VIEW :: Kotak Securities on Schaeffler India

SCHFL reported 1QCY21 EBITDA of Rs2.1 bn, 9% below our estimates due to lower-than-expected gross margins. Long-term growth prospects for the company remain strong led by the pipeline of new products, strong export growth potential and increase in content per vehicle due to stricter emission norms; however, expensive valuation remains a concern. Maintain SELL with revised FV of Rs4,350 (from Rs4,050 earlier).

8:54 AM

BROKERAGE VIEW :: Kotak Securities on ABB

ABB reported a healthy print on execution, profitability and cash generation. Strength of order inflows and management commentary reaffirm the increasing relevance of select business themes in energy efficiency, robotics, EV charging and data centers. The cost structure would likely improve as costs associated with the power grids business get appropriately allocated.

We revise estimates by 3% to account for modest cuts in revenue estimates. This yields an FV of Rs1,550, factoring high-teen decadal revenue CAGR and a higher 23% PAT CAGR.

8:52 AM

BROKERAGE VIEW :: Kotak Securities on United Breweries

UBBL reported good sequential recovery in volumes with EBITDA margin at 16.9% aided by a tight leash on operating costs. OCF generation in FY2021 was robust despite a sharp decline in operating profit. Covid-led externalities and rising input costs (barley) drove a sharp cut in FY2022E estimates. We reduce FY2022-23E EPS estimates by 44%/5%; revise FV to Rs1,365 (Rs1,375 earlier).

8:49 AM

BROKERAGE VIEW :: MOFSL on PNB Housing

CMP: Rs 378 | TP: Rs 400 | Reco: Neutral

>> PNB Housing Finance (PNBHOUSI) reported 4QFY21 PAT of INR1.3b (v/s net loss of INR2.4b YoY; 54% miss). The miss was attributable to higher-than-expected credit costs / opex of INR3.5b/INR1.4b (73%/38% above our est). FY21 PPoP was largely flat, while PAT was up 44% YoY to INR9.3b.

>> We upgrade our EPS estimates for FY22E on account of lower credit costs – as we believe the bulk of the provisioning has already been upfronted. Maintain Neutral, with TP of INR400/share (0.6x FY23E BVPS).

8:47 AM

BROKERAGE VIEW :: MOFSL on United Breweries

CMP: Rs 1,207 | TP: Rs 960 | Reco: Sell

>> United Breweries (UBBL) reported strong results over a lockdown impacted 4QFY21. Nevertheless, they came in below our expectations on all fronts – as the pace of sequential recovery was slower than that seen in 3QFY21.

>> Considering a) some impact from the lockdown in Maharashtra, Delhi, and Karnataka for a month during the key season for beer and b) the possible write-offs of perishable raw materials, we have cut our FY22 EPS forecasts by ~20%. However, we have not factored in any further risks from lockdown extensions, other states imposing lockdowns, and the possible impact of rising barley costs, all of which could have a significant impact – as 1Q contributes 35–45% to the company’s full-year EBITDA.

>> Despite assuming recovery in FY23 and the second highest operating margins in the company’s history, valuations are rich at ~63x FY23E EPS – despite flat EPS over FY19–23E and RoE in the early teens. Progress on CCI investigations spells another overhang at an already challenging time.

>> Maintain SELL, with TP of INR960, calculated at 24x FY23E EV/EBITDA.