MARKET WRAP: Nifty ends below 11,100, Sensex sheds 289 pts; CCD slips 20%

The Sensex and Nifty50 touched an intra-day low of 37,359 and 11,073 respectively.

1:22 PM

NEWS ALERT | Coffee Day board meeting at 3 pm today: sources to CNBC TV18

1:21 PM

Earnings Alert | Bank of India Q1 result

-- Slippages at Rs 3,683 crore vs Rs 3,102 cr (QoQ) 

1:05 PM

Number of companies without a single independent director on the rise again

An analysis of data from nseinfobase.com, a website tracking corporate data, shows that this marks a rising trend in recent years, after a sharp decline in the financial year ending March 2016 (FY16).

 

Several of these companies have gone bankrupt and are under the resolution process. Ownership issues are also among the reasons for companies not having independent directors, according to industry watchers. READ MORE

12:57 PM

Earnings Alert | Piramal Enterprises Q1 result

-- Cons Net Profit at Rs 450 cr

-- Revenue at Rs 3,506 cr

-- One-time loss of Rs 11.3 cr

12:47 PM

Elara Capital on Strides Pharma Science

Rating: BUY

 

Target Price: Rs 590

 

Upside: 67%

 

Strides Pharma Science's (STR) exit from the Australia business resulted in significant deleveraging of balance sheet. The divestment would result in an EBITDA loss; however, it would be offset by the fall in interest cost. STR’s US business has scaled up over the past three quarters post its transition to front-end, and given strong visibility its other regulated markets, it should result in strong growth over FY19-21. We have broadly maintained our FY120/21E EBIDTA; however, our PAT stands reduced by 15%/9% on account of higher losses from JV. At the CMP, the stock is trading at attractive valuation of 6.5x FY21E EV/EBITDA. We reiterate Buy with a target price of Rs 590 on 10.0x FY21E EV/EBITDA.

12:45 PM

HDFC Securities on Orient Cement

We reiterate BUY on Orient Cement with a target price (TP) of Rs 150 (8x FY21E EBITDA). Orient Cement’s stellar show continued in 1QFY20 on strong realization tailwinds amid benign input costs. While we believe cement pricing has peaked out in 1Q (for near term), the sharp uptick in past two quarters should buoy FY20 NSR by 7.5%. Further, with fuel costs moderating, and expected demand recovery in H2, we estimate unitary EBITDA to rebound to ~Rs740 in FY19/20 (~50% ahead of FY19).

12:42 PM

STOCK ALERT | 2.3% equity worth Rs 161.34 cr changed hands in Jubilant Life on NSE

12:42 PM

ICICI Securities on Havells India

We believe Havells’ Lloyd business is in a transition phase with high investment in people, technology and branding. This, coupled with pricing pressure in the air conditioner business (due to significant competition from MNCs) would likely weigh on overall EBTIDA margin of the company in the near term. We maintain our HOLD rating on the stock and revise our target price lower to Rs 725.

12:40 PM

Anand Rathi Shares and Stock Brokers on Aarti Drugs

The gross margin improved 364bps sequentially on account of softening raw-material prices, resulting in a 132bp improvement in the EBITDA margin. Y/y, however, the gross margin improved 147bps y/y chiefly as Q1 FY19 had seen a disruption of ciprofloxacin sales. We believe the stabilized intermediate prices would help improve the operating margin in subsequent quarters. 

 

We retain our Buy rating, with a price target of Rs 796 (earlier Rs 745), based on 12x FY21e EPS. Risks: Delay in the ramp-up of the recently-added capacity; more-than-expected competition in generic APIs.

 

12:36 PM

Result impact | Bank of India slips 5%

12:35 PM

Earnings Alert | Bank of India Q1 result

-- Net profit at Rs 242.6 crore

-- Gross NPA at Rs 62.068 crore; 16.5%

-- Net NPA ratio at Rs 19,288 crore; 5.79%

12:31 PM

With founder Siddhartha missing, will Cafe Coffee Day get sold to PE firms?

"Coffee Day Enterprises was more of a promoter-driven outfit. This business prospects and the stock will take a hit in the short-to-medium term, at least till the time there is clarity on the news development and how the business will be managed going ahead," says A K Prabhakar, head of research at IDBI Capital. READ MORE

VG Siddhartha

12:20 PM

Bank of India hits 52-wk low ahead of Q1 result; dips 27% in 2019 thus far

The stock, which hit its 52-week high of Rs 110.15 earlier this year, has slipped 27 per cent in the calendar year 2019 thus far. In comparison, the benchmark Nifty50 index has gained 3 per cent during the period. 
 

The public sector lender is scheduled to announce its June quarter results later in the day amid expectations of weaker operational performance. READ MORE

12:13 PM

Expert Comment :: Mustafa Nadeem, CEO, Epic Research on VG Siddhartha

Coffee Day Enterprises' stock, in the short term to medium term, may continue to slip till things become clearer or any statement from the existing management of the company eases panic. Traders should definitely exit the stock if they find any opportunity as this is going to be a long tedious process.

Exit of all investors at once, however, would be a problem for the business. All, now, depends on the new management or anyone from existing Board as to how they handle the situation and take things forward. 

12:07 PM

Elara Capital on Strides Pharma

STR’s exit from the Australia business resulted in significant deleveraging of balance sheet. The divestment would result in an EBITDA loss; however, it would be offset by the fall in interest cost. STR’s US business has scaled up over the past three quarters post its transition to front-end, and given strong visibility its other regulated markets, it should result in strong growth over FY19-21. We have broadly maintained our FY120/21E EBIDTA however our PAT stands reduced by 15%/9% on account of higher losses from JV. At the CMP, the stock is trading at attractive valuation of 6.5x FY21E EV/EBITDA. We reiterate Buy with a TP of INR 590 on 10.0x FY21E EV/EBITDA.