Sensex falls 123 pts as investors book profit in RIL, banks, auto stocks

The broader markets, however, outperformed the frontline indices with the BSE MidCap and SmallCap indices adding 0.06 per cent and 0.34 per cent, respectively.

8:52 AM

Sharekhan on JSW Steel

Reco: BUY | TP: Rs 850

Q1FY22 consolidated EBITDA at Rs. 10,274 crore (up 22% q-o-q) beat ours and the street’s estimates, led by higher-than-expected EBITDA/tonne at Rs. 29,608/tonne (up 42% q-o-q). Volumes declined 14.5% q-o-q to 3.5 mt due to weak demand in India because of lockdowns.

Overseas subsidiaries performed well with positive EBITDA contribution of Rs. 282 crore (versus an EBITDA loss of Rs. 322 crore in Q4FY2021) led by a turnaround in the US subsidiary Acero. Bhushan Power and Steel (jointed controlled entity) also performed well with PAT of Rs. 745 crore in Q1FY22.

Management maintained its standalone crude steel sales volume guidance of 17.4 mt, while Dolvi expansion is on track to get commissioned by September 2021. Domestic steel price is at 15-20% discount to imported steel price and focus on production cuts in China bodes well for sustained high steel price/margin.

We maintain a Buy on JSW Steel with a revised PT of Rs. 850, given a robust earnings growth outlook, focus on downstream value-added products and potential long-term value creation from recently-acquired steel assets. At CMP, the stock trades at 6.9x FY2023E EV/EBITDA

8:50 AM

Sharekhan on ITC

Reco: BUY | TP: Rs 265

ITC’s Q1FY2022 cigarettes sales volume growth stood at 32-33%, above street average estimated volume growth; Cigarette EBIT margin up 174 bps y-o-y. Sales stood at 95% of Q1FY2020 levels.

Non-cigarette FMCG business revenue grew by ~10% y-o-y in Q1FY2022. EBIDTA margin up 40 bps y-o-y to 8.0% despite raw-material inflation.

Cigarette business sales volume picked up momentum from mid-June and is expected to sustain momentum (likely to reach pre-covid level volumes by Q3FY2022); FMCG is gaining good traction and will maintain its double-digit revenue growth and OPM expansion in the medium term.

The stock is currently trading at attractive valuation of 15.3x its FY2023E EPS in view of strong cash generation ability and dividend yield of ~5%. We maintain Buy with an unchanged PT of Rs. 265.

 

8:47 AM

Sharekhan on RIL

Reco: BUY | TP: Rs 2,400

Consolidated EBITDA was in line with estimates at Rs. 23,368 crore (up 2.4% q-o-q) as Jio Platforms’ strong performance was offset by a miss in retail EBITDA. Standalone business recovered strongly with a 12.4% q-o-q rise in EBITDA to Rs. 11,460 crore. Adjusting for Rs. 551 crore of investment income in retail business, consolidated EBITDA at Rs. 22,817 crore missed estimate by 2.5%.

Jio Platforms’ EBITDA at Rs. 8,892 crore (up 3.7% q-o-q) was 7% higher than our estimate led by higher net subscriber additions of 14.4 million and stable APPU of Rs. 138 (versus estimate of Rs. 135). Retail business’ performance was hit by lockdowns and revenue/adjusted EBITDA declined sharply by 19%/55% q-o-q to Rs. 33,566 crore/Rs. 1,391 crore.

We expect a strong recovery in retail biz led by pent-up demand, store additions, rise in share of digital + new commerce and a likely increase in footfalls. Digital Services to see strong growth led by potential ramp-up of JioFiber and wireless customers addition. RIL’s PAT to grow at 30% CAGR over FY21-23E.

We maintain a Buy on RIL with an unchanged SoTP based PT of Rs. 2,400. Potential deal in O2C business and further value unlocking in digital and retail businesses (with a likely IPO) are key catalysts for RIL

8:42 AM

Bank Nifty's role crucial in Nifty's march past 16,000 mark: Sameet Chavan

Although these levels may appear not so far from 16,000, we would see good stock specific action in this range. If Nifty has to reach and surpass the magical figure of 16,000, banking certainly has to play a vital role. It would be very important for the banking index to surpass the 36,000 mark to push the benchmark to new highs. READ MORE

8:39 AM

Two technical picks by Vaishali Parekh: Buy Maruti Suzuki, TCS

BUY MARUTI | CMP: Rs 7,284 | TARGET: Rs 7,900-8,000 | STOP LOSS: Rs 7,100

 

The stock has corrected well from the peak of 7,690 level and has bottomed out near 7,150 level. It took support and formed a "higher bottom" formation on the daily chart to indicate strength and has the potential to rise further from here on in the coming days. Besides, the stock has moved past the significant 50EMA and 200DMA levels to indicate improved bias. We suggest to buy and accumulate this stock for an upside target of Rs 7,900-8,000, keeping the stop loss of Rs 7,100. READ MORE

8:36 AM

Results today :: A total of 43 companies are slated to post their quarterly numbers today

Click here for complete list

8:33 AM

Bulk deals on the BSE as on Friday

Click here for complete list

8:30 AM

Bulk deals on the NSE as on Friday

Click here for full list

8:27 AM

FII/FPI & DII trading activity on Friday

8:24 AM

SGX Nifty alert

>> At 8:24 AM, the index was down 116 points at 15,738 levels.

8:21 AM

Rupee check

Source: Bloomberg

8:18 AM

Oil check

Oil prices have fared better amid wagers demand will remain strong as the global economy gradually opens and supply stays tight. 

 

Brent was trading 23 cents firmer at $74.33 a barrel, while U.S. crude added 20 cents to $72.27.

(Source: Reuters)

8:16 AM

Wall Street on Friday

The Dow jumped 238.20 points, or 0.68%, to 35,061.55. The S&P 500 gained 1.01% to 4,411.79 and the Nasdaq Composite climbed 1.04% to 14,836.99.

8:11 AM

Asian markets trade mixed in early deals

Japan's Nikkei bounced 1.6 per cent in early trade but was off a seven-month low. Hong Kong dropped about 2 per cent, South Korea's Kospi was down 0.3 per cent and Australia’s S&P/ASX 200 index increased 0.2 per cent.

8:05 AM

Good morning, readers!

Welcome to Business Standard's LIVE market blog

Track all the latest, markets-related updates here.