MARKETS ON THURSDAY: Indices end higher, Sensex up 96 points; metals rise

Benchmark indices ended higher on Thursday on the back of gains in metal stocks

12:50 PM

COMPANY WATCH P&G to acquire consumer health unit of Germany's Merck for about $4.21 bn

Procter & Gamble Co said on Thursday it has signed an agreement to acquire the consumer health business of German pharmaceuticals company Merck KGaA for about $4.21 billion (3.4 billion euros) READ MORE

12:41 PM

Damper for private oil firms as govt decides to retain higher profit share

In what is likely to impact investment decisions of oil and gas companies in the exploration and production segment, such as Reliance Industries (RIL) and Vedanta Cairn, the Ministry of Petroleum and Natural Gas is insisting on a new clause in the work programme for 2018-19 that protects its profit share READ MORE

12:38 PM

Anand Rathi Institutional Research on Mastek

With $34.7 million in revenue, up 6.5% q/q (CC ~3.4% in dollar terms), Mastek had a sound Q4. The EBITDA margin at 12.4% was flattish as the company strengthened its sales team and hired talent at leadership roles. The tax rate is likely to move toward 25% and other income to be high on R&D investments. Consequently, we further raise our FY18/ 19e earnings 20%/13%, and our target PE to 15x to derive our target of Rs 650 (from Rs 520, at 13x FY20e EPS earlier). This reflects many quarters of consistent high growth and builds in a 100bp margin expansion by FY20

12:36 PM

Religare on Jamna Auto

Jamna Auto reported robust revenue growth in Q3FY18 led by strong demand for commercial vehicles (volumes up 28% yoy). Net revenue and Net profit increased by 54.9% and 50.1% yoy respectively. We expect demand for Commercial vehicles to remain healthy in FY19E, given bright outlook for the Indian economy and rising infrastructure spending. Recommend Buy.

12:35 PM

TCS Result Expectation (Image source: Motilal Oswal Research)

12:33 PM

Motilal Oswal Research on Mindtree

With business momentum back on track, we expect a CAGR of 14% in USD revenue and 29% in earnings over FY18-20. This brings Mindtree (MTCL) in the league of well-performing tier-II IT peers like L&T Infotech, MphasiS and Hexaware (their average multiples discount FY20E earnings by 18x). Pegging MTCL’s multiple at the same level, we upgrade our target price to Rs 1,000 (15% u pside). Maintain Buy.

12:31 PM

UltraTech Cement commissions new plant in Madhya Pradesh; stock up 4%

Shares of UltraTech Cement have moved 4% higher to Rs 4,152 per share on the BSE, after the company announced commissioning of a greenfield clinker capacity of 2.5 million tonnes per annum capacity (mtpa) at Manawar, Dhar, Madhya Pradesh (MP).
 

UltraTech has commissioned a cement grinding facility with a capacity of 1.75 mtpa along with an auto loading facility. Another cement grinding facility with a capacity of 1.75 mtpa as well as a waste heat recovery system of 13 MW capacity is under construction and both are expected to be completed before September, 2018. READ MORE

12:15 PM

One-third of 148 SME stocks listed in FY18 in red; 7 lost half their value

Nearly one-third of the 148 small and medium enterprise (SME) stocks that got listed last financial year are trading in the red despite the euphoria surrounding their public floats. Seven stocks have lost more than half of their value, with share prices of Nouritrans Exim and Ashoka Metcast sliding the most by 75 per cent and 62 per cent, respectively. READ MORE

12:01 PM

Markets at Noon

 

S&P BSE Sensex	34,384.04		0.15%
Nifty 50	10,557.90		0.30%
S&P BSE 200	4,644.61		0.31%
Nifty 500	9,343.75		0.35%
S&P BSE Mid-Cap	16,825.72		0.34%
S&P BSE Small-Cap	18,135.95		0.39%

11:45 AM

Metal shares rally; Hindustan Copper, Hindalco, Vedanta up over 5%

Shares of metal companies rallied by up to 13% in early morning trade on Thursday on higher global commodity prices. Hindustan Copper, National Aluminium Company (Nalco), Hindalco and Vedanta from the Nifty Metal index were up 5% to 13% on the National Stock Exchange (NSE) in intra-day trade. Steel Authority of India, JSW Steel, Hindustan Zinc, MMTC and Jindal Steel & Power were up 2% to 4%. READ MORE

11:30 AM

Sebi revenues may remain flat in FY19; buyback activity can dent collection

 

The Securities and Exchange Board of India (Sebi) is estimating that revenues in 2018-19 will remain largely the same as in the previous financial year.

 

According to sources, the market regulator estimates total income at Rs 6.25 billion, 2.3 per cent more than Rs 6.11 billion in 2017-18. The reason for flattish growth is an expected moderation in initial public offerings (IPOs) and share buybacks. READ MORE

11:18 AM

Stocks at 52-week high

COMPANY	PRICE()	52 WK HIGH	CHG()	CHG(%)
AARTI INDS.	1314.00	1347.00	-11.70	-0.88
FIRSTSOUR.SOLU.	59.40	59.70	1.10	1.89
GODREJ CONSUMER	1125.30	1157.60	-5.95	-0.53
JAMNA AUTO INDS.	93.15	93.90	4.80	5.43
K E C INTL.	433.00	442.60	-4.90	-1.12

11:08 AM

Merck zooms 19% on open offer by Procter & Gamble Overseas India

 

Merck surged 19% to Rs 1,795, also its record high on the BSE in intra-day trade, after the Procter & Gamble Overseas India makes mandatory open offer to acquire 26% stake in the company at price of Rs 1,500.36 per share.

 

Procter & Gamble Overseas India BV, together with The Procter & Gamble Company in its capacity as a person acting in concert made an open offer for acquisition of up to 4.32 million shares representing 26% of total equity of Merck at a price of Rs 1,500.36 per share, ICICI Securities, the manager of the open offer said in statement on behalf of Merck. READ MORE

10:58 AM

Reliance Securities on JK Lakshmi Cement

JK Lakshmi Cement (JKLC) gained 1% in yesterday’s trade on the expectations of likely improvement in its profitability led by firm demand and favourable realization in Eastern markets.

 

We expect JKLC to report a growth over 60% in EBITDA in 4QFY18 owing to firm realizations in Eastern and Gujarat markets along with cost synergies. Notably, demand scenario in its key markets is likely to remain benign in FY19 led by sustained development in infrastructure activities and reviving rural economy, which bodes well to JKLC.

 

Further, considering the initiatives undertaken to improve Eastern operations profitability by means of WHRS, CPPs, conveyor belt, railway siding and SGU in Orissa are likely to aid JKLC to improve its operational performance further in ensuing quarters. We maintain our fundamental BUY rating on the stock with a Target Price of Rs 550

10:51 AM

Antique Stock Broking on ACC

Despite a good Q1, we trim our CY18/CY19 EBITDA estimates by 6% to factor weaker than expected pricing trend for industry. We built in a 6.5%/5.5% YoY volume growth for the next two years, reflecting constraint in capacity, which company would expectedly witness over next two years (except for the Southern region plants). We value the stock at price target of INR1,800 (earlier 1,880), based on 12x 2019 EV/EBITDA. We maintain HOLD rating on the stock. ACC remains lower in our pecking order in the large cap space due to (1) higher cost structure and (2) lower growth outlook