MARKET WRAP: Sensex slips 107 pts ahead of RBI policy outcome; banks fall

Among the sectoral indices, the Nifty Bank index fell 0.61 per cent weighed by HDFC Bank and State Bank of India (SBI)

12:58 PM

Kesoram Industries extends rally on talk of demerger; zooms 65% in 3-weeks

 

Shares of Kesoram Industries has moved higher by 8% to Rs 99, extending its past three weeks rally on the BSE after media report suggest that the company may demerge its loss-making tyre unit by the end of December. Since November 13, post-September quarter results (Q2FY19), the stock zoomed 65% from Rs 60, as compared to a 2.6% rise in the S&P BSE Sensex. Kesoram Industries had reported a net loss of Rs 963 million in Q2FY19 against loss of Rs 1,396 million in the same quarter previous fiscal. It posted a net loss of Rs 634 million in Q1FY19. Read more

12:44 PM

WEB EXCLUSIVE From Jefferies to Edelweiss, here's how brokerages interpret HUL-GSK deal

 

A day after Hindustan Unilever (HUL) said it was merging GlaxoSmithKline (GSK) Consumer Healthcare with itself in a transaction worth Rs 317 billion that triggered a rally in both counters on Monday, HUL and GSK Consumer gave up some of the gains on Tuesday. While HUL slipped nearly a per cent lower at Rs 1,811 levels on the NSE, GSK Consumer Healthcare, too, is trading marginally lower at Rs 7,524 levels. Read more

12:38 PM

NEWS ALERT Responsive Industries defers proposed buyback

12:35 PM

Sharekhan on Marico

Marico will be one of the key beneficiaries of correcting copra prices in the coming years. Though there is threat of inflation in other input prices, improvement in volume growth of the domestic business, recovery in the international business and operating efficiencies would mitigate the impact of hike in the other input prices in the coming years.

We expect Marico’s earnings to generate a CAGR of 18% over FY2018-FY2021E (introduced FY2021E earnings in this note). The stock is currently trading at around 35x its FY2021E earnings. With strong earnings growth visibility in the near term, we maintain our Buy recommendation on the stock with a revised price target (PT) of Rs. 425 (rolling it over to FY2021E earnings).

12:34 PM

Commodity watch (Source: Reliance Securities)

12:34 PM

S&P BSE Sensex top gainers and losers

12:32 PM

ICICI Securities on Century Plyboards

We expect the company to report significantly better H2 as compared to muted H1 which was impacted by steep fall in laminate and MDF margins and forex loss.

We expect CPBI to report revenue and PAT CAGRs of 15.6% and 25.7% over FY18- FY20, respectively. We maintain BUY on CPBI with a target price of Rs232 valuing it at 20x FY20E earnings.

12:31 PM

ICICI Securities on Bharti Infratel

We downgrade Bharti Infratel one notch to ADD (from Buy) with a revised target price of Rs290 (from Rs325). We have cut our EBITDA estimates for Bharti Infratel by 2-8% over FY19-FY21E as we incorporate incremental tenancy exits by VIL. We have not included any penalties receivable, and the company has already stated it would potentially receive Rs15bn (3.2% of market cap) from earlier tenancy exits. We expect pro forma EBITDA for Bharti Infratel (including 100% of Indus Towers) likely to dip by 21% in FY20E vis-à-vis FY18.

12:17 PM

As Opec-Russia meet in Vienna this week, here are some possible outcomes

OPEC and its allies gather in Vienna this week to discuss production cuts after the biggest monthly drop in oil prices in a decade. They have the broad outlines of a deal after Russia and Saudi Arabia agreed over the weekend to extend their cooperation into 2019, but details are lacking. READ MORE

12:02 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,090.32	-150.68	-0.42
S&P BSE SENSEX 50	11,352.90	-36.87	-0.32
S&P BSE SENSEX Next 50	32,303.44	-39.94	-0.12
S&P BSE 100	11,113.47	-32.73	-0.29
S&P BSE Bharat 22 Index	3,426.44	-3.54	-0.10

11:40 AM

Elara Capital on Hindustan Unilever

 

RATING: Accumulate

CMP: Rs 1,826

TARGET PRICE: Rs 1,732

 

Unilever Plc announced acquisition of HFD major Horlicks (GSKCHIndia) for total equity value of Rs 317bn for sales of Rs 45bn/ EBITDA of INR 8.8bn (FY18) pegging the valuation of the deal at EV/Sales of 6.5x & EV/EBITDA of 32x – much lower than its own valuation of 11x/ 52.2x respectively. It’s an all equity deal with share swap ratio of 4.39 shares of Hindustan Unilever for each share of GSKCH. Total dilution will be 8% and Glaxo will have 5.7% stake in Hindustan Unilever post the merger. The transaction is EPS accretive as merged entity’s EPS would be 3% higher (FY18) than current levels even without any synergies. Since book value of GSKCH excluding cash is “negative”.

11:23 AM

Nifty IT index is trading around 1.5% higher led by Infibeam

 

11:14 AM

Info Edge hits new high; up 22% in seven days

 

Shares of Info Edge (India), owner of one of the leading job portals naukri.com, were trading higher for the seventh straight trading day on Tuesday. The stock was up 5% to Rs 1,695 on the BSE in early morning trade in an otherwise subdued market. The company is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India. Read more

 

11:06 AM

Uflex rises 7% as global arm FlexFilms gets US patent for film packaging

Shares of Uflex rose as much as 6.8 per cent to Rs 297 apiece on BSE in the intra-day trade on Tuesday, after the company announced that its global film manufacturing arm, FlexFilms has been granted United States Patent covering entire categories of formable films that include one or more BOPET layers used in Alu Alu blister packaging. READ MORE

 

10:47 AM

Deal with GSK Consumer Healthcare earnings accretive for Hindustan Unilever

Hindustan Unilever's (HUL's) merger with GlaxoSmithKline Consumer Healthcare (GSKCH) is not only attractive for the latter's shareholders, given the share swap, but also accretive for HUL in the medium term. For every share of GSKCH, shareholders of the company will get 4.39 shares of HUL. READ MORE