Sensex gyrates 294 pts, ends 19 pts down; Nifty holds 15,900; IT, banks dip

The mid- and small-cap indices meanwhile, outperformed and ended over 0.4 per cent higher each

9:04 AM

Nifty50 nears 15,950 in pre-open session

9:03 AM

Pre-open session :: Sensex rises 150 points

9:03 AM

NEWS ALERT :: Grasim Industries announces JV named Birla Advanced Knits Private Limited

The Company has incorporated a Joint Venture Company viz. ‘Birla Advanced Knits Private Limited’ on 14th July 2021 for undertaking Knits manufacturing business in partnership with Century Textiles and Industries Limited (CTIL).

The Company has today i.e. 15th July 2021, also executed a Joint Venture Agreement with CTIL. The Company will hold 50% of the paid up equity share capital of

the aforesaid Joint Venture Company. 

9:00 AM

NEWS ALERT :: GNA Axles cancels today's board meeting due to death of its Chairman, ED- S Rachhpall Singh

8:57 AM

MOFSL on Cyient

TP: Rs 1,090 | Reco: Buy

We expect a rebound in ER&D spending. The management strategy to leverage these spends – led by a refreshed GTM strategy and a higher focus on large deal

wins – should augur well in terms of growth performance. We expect CYL to deliver a 15% revenue CAGR over FY21–23E.

This, along with the sustainability of higher margins in the DLM business, should lead to a 31% EBIT CAGR over FY21–23E.

We raise our estimates on better potential margin performance as the management increases its intake of freshers as well as benefits from operating leverage. We maintain our Buy rating on attractive valuations. Our target multiple of 20x FY23E EPS takes our TP to INR1,090/share, implying an upside of 15%

8:55 AM

MOFSL on Wipro

TP: Rs 580 | Reco: Neutral

In the past few years, WPRO has underperformed Tier I companies on growth due to its higher exposure to challenged verticals (such as Healthcare and ENU). Changes at the company level (restructuring in India/the Middle East) have further constrained growth. We expect the refreshed strategy of the new management to make the organization leaner. Its growth-focused approach would aid growth over the medium-to-long term.

The current restructuring and investments will take a toll on near term margin, eating away at the gains from operational efficiency. This should keep margin rangebound.

We increase our FY22E/FY23E EPS by 6%, largely based on better growth visibility. We maintain our Neutral stance as we await: a) further evidence of execution of WPRO’s refreshed strategy, and b) successful turnaround from its growth struggles over the last decade before turning more constructive on the stock. Our TP implies 23x FY23E EPS.

8:53 AM

KR Choksey on Tatva Chintan Pharma Chem IPO :: Subscribe for long-term gains

TCPC’s growth prospects are bright owing to its leadership status in the various product categories of specialty chemicals and significant presence in export markets. Also, given that it operates in segments which could see rise in environmentally sustainable products, the growth potential is further higher. On the upper price band of INR 1083 and EPS of INR 26.02 for FY21, the P/E multiple works out to be 41.6x, which is at a significant discount compared to the industry average of ~56x. On account of strong growth potential, dominant manufacturer status, potential play on ‘green chemistry’ and discounted valuation compared to its peers, we recommend a ‘SUBSCRIBE’ rating for long term gains for TCPC IPO.

8:52 AM

Emkay Global on Bandhan Bank

Bandhan Bank’s AUM grew at a lower-than-expected rate of 8% yoy (down 8% qoq) to Rs801bn. We believe that this could be primarily due to lower disbursements in the MFI and small business loan segment on account of Covid-led disruptions in Eastern India, which is still reeling under extended lockdowns. Ujjivan, a relatively close peer, has also reported 2% yoy/7% qoq decline in AUM, while the impact on growth was relatively moderate for Equitas SFB, with its AUM up 15% yoy/down 0.5% qoq on lower dependence on the MFI book. 

In our view, the announcement of loan relief scheme for MFI borrowers in Assam which incentivizes credit discipline/repayment rather than a blanket waiver should be largely positive for Bandhan, followed by Ujjivan, once it is cleared in the upcoming budget session this month. That said, we believe asset-quality risk still persists given the pandemic-led disruptions (SMA pool at 8.6% of loans in Q4) and a lower contingent provision buffer (0.5% of AUM), which would call for a higher LLP/depressed earnings in H1.

Notwithstanding near-term asset-quality risk, we have a Buy rating (TP: Rs390) on the stock, given its strategy of diversifying asset portfolio away from MFI in terms of both products and geography, enviable liability profile, superior return ratios (RoA/RoE of 2.5-3.4%/17-25% over FY22-24E) and reasonable valuations (2.2x FY23E ABV/1.7x FY24E ABV).

8:47 AM

Emkay Global on Wipro

Wipro signed 8 large deals with a combined TCV of USD715mn in Q1. Management indicated that the deal pipeline remains robust across markets with a good mix of small and large deals, offering good revenue visibility.

We raise FY22E/FY23E/FY24E EPS by 4.3%/3.1%/2.7%, factoring in Q1 performance and higher growth assumptions. Wipro delivered a strong revenue performance in Q1; however, the valuation remains rich (low single-digit valuation discount to Infosys despite ~5% lower earnings CAGR expectations over FY21-24E and ~10% lower ROE). Retain Hold with a revised TP of Rs565 (earlier Rs550).

 

8:43 AM

Edelweiss on Wipro

Wipro delivered a strong set of Q1FY22 numbers--IT services revenue grew 12.0% QoQ (in cc) compared with our and Street’s estimates of 9.8% and 9.2% QoQ, respectively. However, margin contracted 30bps YoY to 18.8% and came lower than our and Street’s estimates of 19.3% and 19.1%, respectively. The company introduced first ever USDdenominated bond offering of USD750mn with five-years’ tenor.

In Q1FY22, Wipro posted highest-ever organic QoQ revenue growth (in cc) in the past 38 quarters and much ahead of its own guidance. It closed eight large deals of TCV of over USD715mn.

We are raising TP to Rs 680 (from Rs 550) in the wake of stronger-than-expected topline growth and surge in volume while rolling forward to Q3FY23E.

 

8:38 AM

Market Ahead Podcast: Top factors that could guide markets today

Investors on Friday are likely to weigh weak global cues against strong quarterly earnings and recovery in demand as indices hover at record high levels. Early indications suggest a positive start for the day as SGX Nifty was up 30 points at 15,952 around 7.30 am. LISTEN TO THE PODCAST HERE

8:36 AM

Stocks to watch in today's session

Wipro: The IT major surpassed its revenue guidance for the first quarter, which it hailed as its best ever, as it reported a 35.7 per cent year-on-year (YoY) increase in consolidated net profit to Rs 3,243 crore. Revenue grew 22.3 per cent YoY to Rs 18,525 crore and was up 12.4 per cent sequentially.

 

L&T Infotech: The company reported a 19.3 per cent YoY rise in consolidated net profit to Rs 496.8 crore for the June 2021 quarter, and declared a special dividend of Rs 10 per share. READ MORE

 

8:35 AM

Bull Spread strategy on Colgate Palmolive

Bull spread Strategy on COLGATE

 

Buy COLGATE 1760 CALL at Rs 29 & simultaneously sell 1800 CALL at Rs 17

 

Lot Size 350

 

Cost of the strategy Rs 12 (Rs 4200 per strategy)

 

Maximum profit Rs 9800 If Colgate closes at or above 1800 on 29 July expiry. READ MORE

8:34 AM

Osho Krishan sees upside potential in Mrs Bectors, Burger King; here's why

BUY MRS BECTORS FOOD SPECIALITIES | TARGET: Rs 475 | STOP LOSS: Rs 400

 

Bector Food has seen a secular rally from its 52-weeks low of Rs 328 odd zones and since then there has been no major correction in the counter. The stock is currently hovering near its long-term exponential moving average (200 DEMA) that even collides with the 38.20% of the Fibonacci retracement, suggesting huge upside room for the counter. In the recent past, the formation of rounding bottom with a gradual increase in the trading volumes is sign of a rally. READ MORE

8:32 AM

Bulk deals on BSE in Thursday's session

Click here for details