Banks, RIL lift Sensex 397 pts; broader indices underperform

ICICI Bank (up 2.7 per cent), HDFC, Axis Bank, Sun Pharma, and NTPC were the top gainers on the frontline S&P BSE Sensex

9:18 AM

OPENING BELL :: Nifty tops 15,750

9:17 AM

OPENING BELL :: Sensex rises 230 points

9:05 AM

COMMODITY CHECK

9:03 AM

Heatmap | Sensex gainers and losers in pre-open session

9:02 AM

Nifty50 tops 15,750 in pre-open session

9:01 AM

Pre-open session :: Sensex jumps 300 points

9:00 AM

NEWS ALERT :: China data watch

>> June $-denominated exports up 32.2%,

>> Imports up 36.7% YoY & trade surplus at $51.53 billion

8:55 AM

NEWS ALERT :: HDFC Bank in focus

RBI approves appointment of MSKA & Associates, MM Nissim & Co as joint statutory auditors for FY22

Source: BSE filing

8:54 AM

HDFC Securities on Avenue Supermarts

Reco: Sell | TP: Rs 2,260

DMART’s anchor variable – footfalls – and consequently unit economics remain sub-optimal and their path to complete recovery remains hazy, especially against the backdrop of heightened competitive intensity from deep-pocketed retailers. Hence, we maintain our SELL recommendation on DMART with a revised DCF-based TP of INR 2,260/sh (earlier 2,160/sh), implying 34x Jun-23E for the standalone business + 4x Jun-23E sales for DMART Ready.

8:51 AM

Hem Securities on Prestige Estate Projects

Reco: Accummulate | TP: Rs 330

>> Company reported another operationally strong quarter with presales of Rs 18.5 Bn (+53% YoY)

>> Collections were also healthy at Rs 17.7 Bn (32% YoY).

>> While April/May 21 has been muted due to lockdown in the key Bengaluru market, robust launch pipeline of 14-15 msf could help drive sales in 9M FY22.

>> Proceeds from Blackstone Phase 1 deal lead to reduction in net debt to Rs 13 Bn (0.19x net D/E) from Rs 82 Bn at FY 20 end.

8:49 AM

MOFSL on Havells India

TP: Rs 1,030 | Reco: Neutral 

HAVL rightly utilized all its cost levers (ad spends, employee costs, travel costs, etc.) in FY21, thereby resulting in an expansion in EBITDA margin to 15% (+410bps YoY) and EPS growth of over 40%. While near-term ad spends may remain low due to the second COVID wave, other levers (such as employee costs) may be difficult to utilize going forward. We expect margin to settle at 13% by FY24, closer to its margin trend, as ad spends return. Thus, our FY21-24E EPS CAGR stands at 12% (v/s revenue/EBITDA CAGR of 14%/9%). We maintain our Neutral rating, with a TP of INR1,030 (50x FY23E EPS).

8:44 AM

Antique Broking on Maruti Suzuki India

Reco: Sell | TP: Rs 5,600

We reiterate SELL rating on MSIL with a target price of INR 5600. Our TP is based on 20x FY23E core EPS (excluding investment income). Our EPS estimates for FY22/23E are 8/4% below Bloomberg Consensus. Given risk of market share loss and strong cost headwinds, we expect MSIL stock to underperform auto sector peers. Key risk to our investment thesis are 1) stronger than expected volume growth and market share gains led by rural markets; and 2) sharp decline in commodity prices

8:42 AM

Antique Broking on Avenue Supermarts

Reco: Sell | TP: Rs 2,743

We decrease our EBITDA estimates for FY22e by 3.5% as we bake in lower than expected performance of 1QFY22. We broadly retain our FY23e EBITDA estimates as we remain confident about the company's business potential. We believe that the underperformance is restricted to this particular quarter as the scenario was unfavorable. Going ahead we expect a much quicker recovery. However due to stretched valuation we downgrade the stock to Sell with a revised target price of INR 2,743 (valuing a 45x FY23e).

8:39 AM

KIE on Telecom Sector

TRAI’s April 2021 subscriber data indicates (1) Jio added 4.8 mn subscribers on a net basis and 3.5 mn on VLR base despite curtailed operations due to lockdowns, (2) Bharti added 2.6 mn on VLR base and 2.2 mn in mobile BB segment, even as its overall wireless additions was modest at 0.5 mn and (3) VIL’s subscriber base declined by 1.8 mn as it lost customers in 19 out of 22 circles. The second Covid wave has added to the woes of VIL, already grappling with distress financial situation.

We reiterate our BUY rating on Bharti expecting it to gain the most from a potential recovery in the industry economics and/or plausible consolidation in the medium term. The acquisition of significant spectrum by Bharti and Jio in the recent auction will allow them to enhance their user experience further. It will compound woes for VIL, which continues to lag on investments in network infrastructure given persisting delays in its capital-raising plan

8:37 AM

Kotak Institutional Equities on Adani Ports

Reco: Reduce | TP: Rs 740

We downgrade ADSEZ to REDUCE from ADD. The current price largely factors in the value creation through recent acquisitions, improvement in operating performance and improving risk profile of the group. We see downside risks to estimates for market share and margin and cut estimates by 5%. Fair Value cut at

9% also builds in risks associated with the capital-intensive expansion of the logistics business. Prospects of more value-accretive port acquisitions in India for ADSEZ are limited.