F&O expiry: Nifty ends April series above 17,200; Sensex gains 702 pts
CLOSING BELL: 26 of the 30 Sensex constituents and 45 of the 50 Nifty constituents ended the day in the green led by HUL, HDFC Life, SBI Life, Asian Paints, UPL, PowerGrid, L&T, NTPC, SBI, and Infosys
 "MARKET LIVE: Sensex, Nifty50 off day's high; HUL, RIL, Infy shine")
2:00 PM
Brokerage Call :: Phillip Capital on Trent
We have increased revenues/ebidta for FY23/FY24 by 5.1%/4.8% and 9%/7.8% respectively given the strong store openings and sharp recovery. We maintain our rating at BUY with an SoTP-based target of Rs1379 (earlier Rs1298).
Trent continues to be our top pick in the retail sector as it is expected to deliver industry leading revenue/ebidta CAGR of 22%/25% over FY20-24e with healthy balance sheet.
Trent continues to be our top pick in the retail sector as it is expected to deliver industry leading revenue/ebidta CAGR of 22%/25% over FY20-24e with healthy balance sheet.
1:59 PM
Brokerage Call :: JM Financial on Schaeffler India
Schaeffler India (SCHFL) reported strong set of results, as net sales were up 19% YoY (in-line with JMFe), while EBITDA was up by 45% YoY (8% above JMFe). Growth was led by 22% growth industrial segment (raw materials, industrial automation), while exports reported robust growth of +62% YoY (3-yr CAGR: 28%).
Rising share of exports (16% of sales) drove expansion in gross margins, which led to EBITDA beat, as margins expanded by 350bps YoY to 19.7% (JMFe: 18.1%). Net profit was up 48% YoY to INR 2bn, 9% ahead of JMFe.
We continue to maintain BUY on SCHFL, on new business wins across categories, structural improvement in sales mix on rising exports and aftermarket and PLI win to accelerate investment in new technologies. Our revised TP stands at INR 2,400, 35x Dec’23E EPS
Rising share of exports (16% of sales) drove expansion in gross margins, which led to EBITDA beat, as margins expanded by 350bps YoY to 19.7% (JMFe: 18.1%). Net profit was up 48% YoY to INR 2bn, 9% ahead of JMFe.
We continue to maintain BUY on SCHFL, on new business wins across categories, structural improvement in sales mix on rising exports and aftermarket and PLI win to accelerate investment in new technologies. Our revised TP stands at INR 2,400, 35x Dec’23E EPS
1:58 PM
We remain positive on Macrotech as it continues to execute well across ticket prices and micromarkets. We expect a combination of market share gains deleveraging and to continue in the future. We maintain ‘BUY’ with a Mar’23 TP of 1,410 (implying 39% upside)
Brokerage Call :: JM Financial on Macrotech Developers
Macrotech Developers achieved full year sales guidance of INR 90bn in FY22 backed by broad based momentum across MMR market and Macrotech’s execution prowess. From here on, it targets INR 115bn of booking values in FY23 (+27% YoY) and also intends to sign new JDAs with Gross Developmental Potential (GDV) of INR 150bn (INR 146bn since IPO).
On the cash flows front, it targets operating cash flows of INR 60bn in FY23 which will consequently lead to debt getting reduced to INR 60bn by FY23 end (INR 93bn in Mar’22). The net debt might trend further downwards if repatriation from UK investments (INR 15bn+) also starts flowing though in FY23 (possible).
In the digital infrastructure business, it is on the verge of creating a US$ 1bn warehousing and light industrial platform along with global funds where it would contribute assets and deal would be structured in an asset light manner for Macrotech.
On the cash flows front, it targets operating cash flows of INR 60bn in FY23 which will consequently lead to debt getting reduced to INR 60bn by FY23 end (INR 93bn in Mar’22). The net debt might trend further downwards if repatriation from UK investments (INR 15bn+) also starts flowing though in FY23 (possible).
In the digital infrastructure business, it is on the verge of creating a US$ 1bn warehousing and light industrial platform along with global funds where it would contribute assets and deal would be structured in an asset light manner for Macrotech.
We remain positive on Macrotech as it continues to execute well across ticket prices and micromarkets. We expect a combination of market share gains deleveraging and to continue in the future. We maintain ‘BUY’ with a Mar’23 TP of 1,410 (implying 39% upside)
1:54 PM
Brokerage Call :: MOFSl on Trent
CMP: Rs 1,226 | TP: Rs 1,430 (+17%) | Reco: BUY
>> Trent’s aggressive footprint expansion and strong LTL growth of 16% YoY translated into a robust 53% YoY revenue growth; however, the backended store additions increased the costs disproportionately thereby reducing EBITDA growth to a mere 12% YoY.
>>Westside and Zudio’s store-level economics remains healthy as evident from: a) the strong LTL growth, b) Westside’s annualized revenue run-rate which was almost double its FY22 level ( >INR50b) and c) our channel checks.
>>We expect revenue/EBITDA growth of 45%/58% over FY22-24, respectively, on continued aggressive store additions and healthy LTL growth. We retain our BUY rating given Trent’s strong growth opportunity
>> Trent’s aggressive footprint expansion and strong LTL growth of 16% YoY translated into a robust 53% YoY revenue growth; however, the backended store additions increased the costs disproportionately thereby reducing EBITDA growth to a mere 12% YoY.
>>Westside and Zudio’s store-level economics remains healthy as evident from: a) the strong LTL growth, b) Westside’s annualized revenue run-rate which was almost double its FY22 level ( >INR50b) and c) our channel checks.
>>We expect revenue/EBITDA growth of 45%/58% over FY22-24, respectively, on continued aggressive store additions and healthy LTL growth. We retain our BUY rating given Trent’s strong growth opportunity
1:53 PM
Brokerage Call :: MOFSL on HUL
CMP: Rs 2,144 | TP: Rs 2,500 (+17%) | Reco: Buy
>> While 4QFY22 results were above expectations, management did highlight the likely sequential margin pressures over the next 2-3 quarters. Beat in 4QFY22 was also led by a 220bp decline in ad-spends to sales that may not be a compensating factor going forward. Lower ad-spends to sales helped EBITDA margin surpass our expectations despite lower-than-expected gross margin.
>> Nevertheless, positive factors can emerge from rural recovery fueled by: a) good Rabi crop, b) good monsoon, and c) sustained agri commodity inflation, unless offset by input cost pressures for farmers.
>> We remain positive on the stock based on HUVR’s technological edge, nimbleness v/s its FMCG peers and continued impressive market share gains (highest decadal gain witnessed in FY22).
>> While 4QFY22 results were above expectations, management did highlight the likely sequential margin pressures over the next 2-3 quarters. Beat in 4QFY22 was also led by a 220bp decline in ad-spends to sales that may not be a compensating factor going forward. Lower ad-spends to sales helped EBITDA margin surpass our expectations despite lower-than-expected gross margin.
>> Nevertheless, positive factors can emerge from rural recovery fueled by: a) good Rabi crop, b) good monsoon, and c) sustained agri commodity inflation, unless offset by input cost pressures for farmers.
>> We remain positive on the stock based on HUVR’s technological edge, nimbleness v/s its FMCG peers and continued impressive market share gains (highest decadal gain witnessed in FY22).
1:44 PM
5G spectrum auction likely in early June: Telecom Minister Ashwini Vaishnav
The minister said that the Department of Telecom is working as per expected timeline and the process is on to resolve industry concerns around spectrum pricing. READ MORE
1:31 PM
BSE 500:: Top hourly gainers
CreditAccess, Godrej Agrovet, AIA Engineering, Vakrangee and Godrej Industries were some of the prominent gainers in this hour of trades so far. VIEW ALL
1:24 PM
How Eveready, at the cusp of change, is trying to regain its mojo
Over the past decade, a change in consumer choice swept through the battery industry - the walkman lost its mojo, smartphones overtook cameras and batteries were tucked away in remotes and wall clocks. READ MORE
1:17 PM
BSE Sensex 30 Heatmap:: Heavyweights shine led by HUL
1:10 PM
Market Check: S&P BSE Sensex at day's high, up over 700 pts
12:59 PM
Uptrend intact in GNFC, Coromandel, Madras Fertilizers; may gain up to 16%
Fertilizer shares have been the outperformers so far in 2022, gaining up to 100%; While the bullish sentiment seems overrated, charts indicate continuation of the uptrend. READ MORE
12:52 PM
Bajaj Auto shares decline over 2% after Q4 earnings
Bajaj Auto on Wednesday reported a 2 per cent decline in consolidated net profit at Rs 1,526 crore for the fourth quarter ended March 2022, as sales in both domestic and export markets were hit by weak demand and semiconductor shortage. READ MORE
12:47 PM
BSE 500:: Volume Shockers
JM Financial has seen a massive 61-fold jump in volume when compared to its last five-day average volume on the BSE. The stock is up almost 13 per cent. TTK Prestige, KIOCL, Alok Industries and Vaibhav Global were some of the other stocks to witness unusually high volume in trade so far. VIEW ALL
12:37 PM
India's gold demand declined sharply in March quarter as prices surged
The trend was contrary to global demand for gold, which went up by 34 per cent YoY to 1,234 tonnes, the highest since Q42018. Global demand was led by an increase in investment demand, which went up in the quarter by 203 per cent YoY to 550.7 tonnes. READ MORE
12:26 PM
Zomato slips 46% so far in 2022 as FPIs, MFs trim stake in March quarter
Shares of food delivery company Zomato hit a new low of Rs 74.65, down 2 per cent on the BSE in Thursday's intra-day trade. The stock has also dropped 6 per cent in the past two trading days. READ MORE HERE
Topics : Sensex MARKET LIVE MARKET WRAP Markets Nifty Russia Ukraine Conflict BSE NSE Dalal Street stock markets Q4 Results HUL Bajaj Auto Vedanta Biocon Bajaj Finserv
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First Published: Apr 28 2022 | 8:12 AM IST
