RIL, financials drag indices; Sensex tanks 667 pts, Nifty settles at 10,900

All that happened in the markets today

10:25 AM

Nifty Private Bank index dips 2%

10:17 AM

STOCK ALERT :: Divis Labs hits record high in a weak market

10:12 AM

Rupee Opening

Rupee opens lower at 74.90 per US dollar vs Friday's close of 74.81

10:11 AM

Anand Rathi on Navin Fluorine

We expect revenue, EBITDA and PAT to register 18%, 22% and 25% CAGRs over FY20-22, supported by the rising share of high-margin products, strong performance in specialty chemicals, higher revenue from CRAMS on a pick-up in utilisation at the CGMP3 plant and revenue from a high-performance product expected to be commissioned in Q4 FY22. We expect a challenging FY21 for its refrigerant and inorganic fluorides businesses due to lower demand from end-user industries, expected to be normal from H2. We maintain a Hold rating on the stock, with a revised target of Rs 1,950 (PEs of 36x FY22e, 24.5x FY22e EV/EBITDA). We are satisfied about the company?s confidence in its high-margin businesses and the announced HPP capex. Risks: Lower CRAMS utilisation, refrigerant-gas phase-out, capex delays

10:10 AM

HDFC Securities on Hexaware

While business dynamics exhibit protracted recovery, stock price performance will trail developments around the delisting proposal. The shareholder approval for delisting (10- Aug) and the subsequent developments on offer price are likely to drive the near-term stock performance. Our target price of Rs 360, 14x Jun-22E EPS, follows ~3% EPS estimate increase for CY21E.

10:08 AM

Nomura on HDFC

10:07 AM

Nomura on Tata Motors

We set our target EV/EBITDA multiple for JLR to 1.5x in-line with peers (from 1.7x) as we roll forward valuation to avg FY22F- FY23F and 10x for the standalone business. We value investments at Rs 38/share. We maintain our Reduce rating and prefer M&M (MM IN, Buy) as our top pick in the sector.

10:07 AM

INTERVIEW :: Krishna Karwa, MD, Emkay Global

Retail investors have been actively participating in the recent rally. Do you see this trend sustaining?

 

There  has been a massive increase in retail participation in the last three months as can be seen in the number of demat accounts opened. The share of retail participation in the cash market has also surged to almost 75 per cent now from 55 per cent during normal times. This retail surge is more from the day traders. Once the economy fully reopens, some of these enhanced volumes will subside; however, in the medium-term, we are very optimistic that retail volumes will continue to trend upwards. Extremely competitive brokerage structures and technology-driven brokerage platforms will continue to attract new tech-savvy traders. READ THE FULL INTERVIEW HERE

Krishna Kumar Karwa

10:01 AM

ICICI Securities on Relaxo Footwears

Given the dominant presence in non-metro cities and being the market leader in value priced segment (in terms of volumes), Relaxo is well placed to further consolidate its market share. Over the years, Relaxo Footwear has maintained balance sheet prudence with controlled working capital cycle (NWC days: 65 days), healthy asset turns of 2.5x and generating RoCE of 20%+.

Relaxo, through its strong balance sheet and brand patronage, is expected to tide over the current situation better than small peers. We largely maintain our estimates and bake in revenue & EPS CAGR of 10% & 18%, respectively, in FY20-22E. Given the recent correction in stock price (~20%), we upgrade the stock from HOLD to BUY and maintain our target price of Rs 715 (56.0x FY22E EPS)

9:59 AM

ICICI Securities on Tata Communications

The consistent performance of the data segment is impressive with step up in margins led by scale & cost initiatives. The rising internet traffic and work from home (WFH) are structurally positive for the company. We revise our EBITDA estimates upwards by ~20% and ~14% for FY21 and FY22, respectively. The company’s strategic growth plan, focused approach and consistent improvement in data segment warrant a multiple re-rating, a part of which is visible in the price run up. We believe continued performance and deleveraging possibilities bode well for the company. Thus, we upgrade to BUY (vs. HOLD earlier) with a revised SoTP target price of Rs 880/share

9:58 AM

Edelweiss on Sun Pharma

Sun Pharmaceuticals’ (SUNP) Q1FY21 earnings, adjusted for a one-time settlement charge, beat estimate ~15%. Better-than-expected growth in branded domestic business and APIs partly offset the ~18% QoQ decline in ex-Taro US sales. Global specialty sales were muted at USD78mn (USD126mn in Q4FY20), despite full quarter of Absorica LD (only four weeks in Q4FY20), primarily due to clinic closures, which significantly impacted Ilumya and Levulan. One of the most important monitorables–conversion of Absorica to Absorica LD–was slower than expected.

The other key monitorable–uptake in Ilumya and its conversion from the Early Access Programme (EAP) to paying patients–remains to be seen. Given the sustained strength in branded domestic, we align SUNP’s target multiple to our sector average of 22.0x (previously 20.5x). However, we remain cautious on US growth, which depends on Halol OAI resolution and specialty execution. Maintain ‘REDUCE’ with revised TP of Rs 450 (earlier Rs 410)

9:58 AM

Edelweiss on Dr Lal Pathlabs

Covid-19 exacted a heavy toll on Dr. Lal’s (DLPL) Q1FY21 numbers. The 21% YoY decline in revenues led to significant operating deleverage. The maximum impact came from closure of OPDs and IPDs, only partially offset by incremental volumes from covid-19 testing, which are margin-dilutive. Management commented there is no disruption in network availability and its non-covid-19 tests were at about 90% of normal levels in June and July.

Besides, covid-19 has made people more focused on healthcare, which will give a boost to the diagnostic industry over medium to long term. Given the structural tailwind around increased consumer awareness of health and a robust long-term outlook, wherein customers are likely to prefer established quality brands, we are raising the target multiple to 45x (from 40x earlier).  Maintain ‘HOLD’ with a revised target price of Rs 1,800 (Rs 1,600 earlier)

9:48 AM

MARKET CHECK

9:33 AM

UPL trades 5% lower after June quarter nos

9:31 AM

UPDATE:: India VIX jumps over 5% to 25.46 levels