MARKET WRAP: Sensex ends 353 pts higher; metals shine, pharma stocks slip
Nifty metal was the top gainer, up over 2 per cent, followed by Nifty public sector bank index, up over 1 per cent.
8:35 AM
Motilal Oswal Financial Services on Bosch
Recommendation: NEUTRAL
CMP: Rs 13,517
TP: Rs 14,715
Upside: 9%
We have reduced our FY20/FY21 EPS estimates by 7-9% to factor in the weak demand environment. The stock trades at 28.2x/23.4x FY20/FY21 EPS. BS6 transition poses risk of further market share loss in CVs as well as continuous decline in its stronghold - PV diesel, but opportunities are expected to open up for BOS in 2Ws (one of 3-4 players in 2W EFIs). We estimate EPS to grow just ~3% CAGR over FY19-21 as the changing competitive positioning poses a threat to our estimates. Hence, we lower our target P/E multiple from 27x to 25x, at ~25% discount to 10-year LPA of 33x. Maintain Neutral.
CMP: Rs 13,517
TP: Rs 14,715
Upside: 9%
We have reduced our FY20/FY21 EPS estimates by 7-9% to factor in the weak demand environment. The stock trades at 28.2x/23.4x FY20/FY21 EPS. BS6 transition poses risk of further market share loss in CVs as well as continuous decline in its stronghold - PV diesel, but opportunities are expected to open up for BOS in 2Ws (one of 3-4 players in 2W EFIs). We estimate EPS to grow just ~3% CAGR over FY19-21 as the changing competitive positioning poses a threat to our estimates. Hence, we lower our target P/E multiple from 27x to 25x, at ~25% discount to 10-year LPA of 33x. Maintain Neutral.
8:33 AM
Motilal Oswal Financial Services on BPCL
Recommendation: BUY
CMP: Rs 343
TP: Rs 465
Upside: 36%
CMP: Rs 343
TP: Rs 465
Upside: 36%
- Stable crude oil and exchange rate may drive structural changes in pricing of LPG and kerosene, bidding farewell to all under-recoveries.
- Factoring in the performance of 1QFY20 and the marginal impact of Ind-AS 116, we revise down our EPS estimate by ~16%/12% for FY20/21.
- BPCL is trading at 9.1x FY20E consol. EPS of Rs 37.7 and 7.5x FY20E EV/EBTIDA. We value BPCL at 1.9x FY21E PBV multiple. We reiterate our Buy rating with a target price of Rs 465.
8:32 AM
Motilal Oswal Financial Services on Coal India
Recommendation: BUY
CMP: Rs 204
TP: Rs 278
Upside: 36%
CMP: Rs 204
TP: Rs 278
Upside: 36%
- COAL has managed to keep costs under control on the back of productivity measures and shutting down of old mines. We note that despite it undertaking price hikes for contractual labor in 2HFY19, cash costs/t have declined YoY.
- Ongoing efficiency measures and continued growth in volumes (our est. 5-6%), should drive 5% EBITDA CAGR over FY19-21, despite the high base of FY19.
- The stock trades attractively at ~3x FY20E EV/adj. EBITDA (v/s historical average of 7x), P/E of 7-8x (v/s average of ~14x) and offers dividend yield of ~9-10%. We value the stock on 4.5x (v/s 5x earlier) FY20E EV/EBITDA at INR278/share. Maintain Buy.
8:31 AM
Brokerages approve RIL's growth plan, expect 30% gain in stock
After the announcements were made at Reliance Industries’ 42nd annual general meeting (AGM) on Monday, the stock surged over 12 per cent on Tuesday — registering its highest single-day rally in 10 years. Many brokerages still see a 15-30 per cent upside in the stock from the current market price of Rs 1,275 apiece. READ MORE
8:28 AM
NEWS ALERT | China's July industrial output comes in at 4.8%: Reuters
-- Drop in industrial output growth hits more than 17-year low
-- Growth was 6.3% in June
-- Growth was 6.3% in June
8:26 AM
ETFs triple in 2 yrs on back of steady inflow from EPFO, provident funds
The assets of exchange-traded funds (ETFs) have nearly tripled in the past two years, on the back of steady inflow from the Employees Provident Fund Organisation (EPFO) and provident funds. ETFs are traded on stock exchanges, with stocks, bonds or commodities as the underlying product.
An ETF’s portfolio exactly mimics the securities in its underlying index, in the same weightage. The EPFO had entered the stock market in August 2015. READ MORE
8:25 AM
To allay concerns, govt must take business-friendly steps: Mukul Kochhar
Cost of equity capital has risen in India because of the introduction of new taxes, said Mukul Kochhar, co-head of equities, Investec India. The government should take steps to improve business sentiment, which might weigh on India’s valuation premium to other markets, Kochhar told Samie Modak. READ FULL INTERVIEW HERE
Mukul Kochhar, co-head of equities, Investec India
8:23 AM
Today's picks: Britannia to Infosys, hot stocks to watch on Wednesday
Britannia
Keep a stop at 2535 and go short. Add to the position between 2475-2490. Book profits at 2470.
Tata Steel
Keep a stop at 352 and go short. Add to the position between 344-346. Book profits at 343. READ MORE
8:16 AM
Technical calls from HDFC Securities: Buy Marico, Sun Pharma
BUY MARICO (Rs 392)
TARGET: Rs 415
STOP-LOSS: Rs 375
Last week, stock surpassed a crucial resistance of 388, which happens to be the multiple tops on the weekly charts. Stock is on the verge of registering new all time high above 396.6. Moving Average and Oscillator Setup is bullish on the weekly and monthly charts. We recommend buying the stock at CMP, for the target of Rs 415, keeping a stop loss at Rs 375 on closing basis. READ MORE
8:14 AM
Weekly stock picks by Religare Broking: Sell August Futures of Lupin, ZEEL
Sell August Futures of Lupin Limited (Initiation range: Rs 750-754)
Last Close: Rs 745.15
Target: Rs 715
Stop loss: Rs 770
Most pharma counters are trading in prolong downtrend and LUPIN is no different. After a marginal bounce of late, it has been struggling around the resistance zone of multiple moving averages for the past month or so and is likely to fall afresh. We advise traders not to miss this chance and create fresh shorts as per the recommended levels. READ MORE
8:11 AM
Bulk deals on NSE as on Tuesday
8:10 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:09 AM
Rupee Check
Source: Bloomberg
8:09 AM
Oil Check
At 8:07 am, Brent Crude Futures were at $60.80 per barrel
8:07 AM
SGX Nifty
At 8:05 am, the Singaporean Exchange for Nifty Futures was trading 12 points higher at 10,933 level, indicating a flat start for the domeestic indices.
Topics : Markets MARKET WRAP
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First Published: Aug 14 2019 | 7:23 AM IST