MARKETS ON MONDAY: Sensex ends 232 pts lower; Realty, pharma, metals drag
This was the fifth consecutive session of losses for the markets. PSU bank stocks, however, bucked the trend
 "Stock market")
11:38 AM
TOP LOSERS TODAY: BSE 500
| COMPANY | LATEST | PREV CLOSE | LOSS() | LOSS(%) | VOLUME |
| JP ASSOCIATES | 14.60 | 17.50 | -2.90 | -16.57 | 15071776 |
| CENTURY TEXTILES | 970.40 | 1066.45 | -96.05 | -9.01 | 274883 |
| 8K MILES | 549.35 | 596.60 | -47.25 | -7.92 | 21521 |
| ASHOK LEYLAND | 137.50 | 148.40 | -10.90 | -7.35 | 6412972 |
| VENKY'S (INDIA) | 3038.80 | 3262.25 | -223.45 | -6.85 | 8659 |
11:37 AM
Reliance Securities on JK Lakshmi Cement
Considering the further initiatives undertaken to improve operations in Eastern markets by means of CPPs and SGU in Orisha, we expect JKLC’s operating performance to witness meaningful improvement from FY19E onwards.
Current valuations of 7.7x EBITDA / US$63 EV per tonne for FY20E look attractive after recent correction. We maintain BUY recommendation on the stock with a revised Target Price of Rs460 (9x FY20 EBITDA).
Current valuations of 7.7x EBITDA / US$63 EV per tonne for FY20E look attractive after recent correction. We maintain BUY recommendation on the stock with a revised Target Price of Rs460 (9x FY20 EBITDA).
11:36 AM
Kotak Securities on Escorts
Given normal monsoon forecast, tractor outlook demand looks positive for FY19. Management has given a guidance of 9-11% domestic tractor industry volume growth in FY19. Strong investment in infrastructure activities is expected to keep construction equipment volume growth robust over the next few years. Railway equipment division will benefit from expected new product launches.
We expect EBITDA margin to improve further in FY19 on account operating leverage and cost reduction program. We increase our estimates to factor in our tractor volume assumption. We retain BUY on the stock with revised price target of Rs1,074 (earlier Rs1,051)
Given normal monsoon forecast, tractor outlook demand looks positive for FY19. Management has given a guidance of 9-11% domestic tractor industry volume growth in FY19. Strong investment in infrastructure activities is expected to keep construction equipment volume growth robust over the next few years. Railway equipment division will benefit from expected new product launches.
We expect EBITDA margin to improve further in FY19 on account operating leverage and cost reduction program. We increase our estimates to factor in our tractor volume assumption. We retain BUY on the stock with revised price target of Rs1,074 (earlier Rs1,051)
11:16 AM
Stock an unlikely hedge against turmoils in debt, dollar, emerging markets
US bond yields are the highest in seven years, the dollar is strengthening, emerging markets are wobbling, and oil is up to $80 a barrel. Yet there is an unlikely oasis of calm out there: stocks.
There are many possible reasons for this, including: US tax cuts boosting earnings expectations and share buybacks, exchange rate moves, a sense a 3 per cent Treasury yield was already priced in, and a belief that the turmoil in the emerging world is and will remain isolated to certain countries. READ MORE
11:07 AM
Anand Rathi on Birla Corp
Withsynergies from the Reliance Cement acquisition and the good pick-up in demandin its core markets, the resolution of the sand-mining ban in UP augurs wellfor Birla Corp. The greater proportion of its premium products is likely to addto profitability, although we see the balance sheet as stretched. We retain our Buy rating on the stock, with a revised target of Rs 1,279
Withsynergies from the Reliance Cement acquisition and the good pick-up in demandin its core markets, the resolution of the sand-mining ban in UP augurs wellfor Birla Corp. The greater proportion of its premium products is likely to addto profitability, although we see the balance sheet as stretched. We retain our Buy rating on the stock, with a revised target of Rs 1,279
11:04 AM
Andy Mukherjee Fortis: Why are four directors installed by Singhs still hanging around?
Fortis Healthcare Ltd. has to admit a new owner to keep the lights on. Before it does, though, India’s second-largest hospital chain must write four of its board members a discharge slip READ MORE
Fortis Healthcare Ltd. has to admit a new owner to keep the lights on. Before it does, though, India’s second-largest hospital chain must write four of its board members a discharge slip READ MORE
Fortis has called an Extraordinary General Meeting on May 22 to vote on the resolution
11:02 AM
BS SPECIAL Good show by Modi govt in four years; private sector now needs to pitch in
Evaluating the performance of any government on economic grounds is challenging. This is so because direct linkages are at best by chance as phenomena like oil prices, monsoons, global forces etc. affect inflation and exchange rates which are beyond the purview of any government. Further, it would also be disingenuous to say that the NPAs are high during a particular regime due to the ruling government as these things build up over time and mere recognition cannot be attributed to a government READ MORE
Evaluating the performance of any government on economic grounds is challenging. This is so because direct linkages are at best by chance as phenomena like oil prices, monsoons, global forces etc. affect inflation and exchange rates which are beyond the purview of any government. Further, it would also be disingenuous to say that the NPAs are high during a particular regime due to the ruling government as these things build up over time and mere recognition cannot be attributed to a government READ MORE
11:00 AM
Street signs: Jhunjhunwala stocks, analysts bullish on MPS, and more
Key Jhunjhunwala stocks see sell-off Aptech and Escorts, key stocks in billionaire investor Rakesh Jhunjhunwala’s portfolio, came under heavy selling pressure last week. Shares of Aptech dropped eight per cent, and those of Escorts declined seven per cent on Friday.
Jhunjhunwala holds more than 12.6 per cent stake in Aptech and 9.2 per cent in Escorts. Besides these two stocks, other key holdings of Jhunjhunwala’s such as Lupin, Crisil, Tata Motors and Aurobindo Pharma have also come under selling pressure in recent months. READ MORE
10:53 AM
Long-term investors' share in equity mutual funds on the decline
The proportion assets held by long-term investors in equity mutual funds (MFs) has been on the decline. Equity assets worth Rs 5.03 trillion (50.6 per cent of the total equity assets) have been held for no longer than 12 months.
Also, equity assets, worth Rs 3.17 trillion (31.9 per cent of the total), are six months old, reveal the March-end data from the industry body Association of Mutual Funds in India (AMFI) The share of equity assets held for over 24 months in the total equity asset under management (AUM) stood at 30.4 per cent at the end of March 2018. READ MORE
10:41 AM
TCS hits record high after fixing record date for 1:1 bonus issue
Tata Consultancy Services (TCS) hit a record high of Rs 3,585, up 2.4% on the BSE in otherwise subdued market, after information technology company fixed Saturday, June 2, 2018 as the record date for determining the entitlement of members to receive bonus shares in the ratio of 1:1.
The board of directors of TCS at its meeting held on April 19, 2018 had recommended bonus issue of equity shares in the ratio of 1 equity share of Re 1 each for every 1 equity shares of Re 1 each held by the shareholders of the company as on the record date. READ MORE
10:29 AM
Edelweiss on Century Plyboards
Century Plyboards (CPBI) reported a dismal Q4FY18. Muted volume growth in plywood (8% YoY) and margin pressure in non-plywood categories, primarily due to forex loss, led to EBITDA and PAT missing estimates 16% and 33%, respectively. The quarter’s numbers were dented by forex loss (Rs 70mn) and the unorganised sector gaining market share in the absence of E-way bill.
Poor surveillance post GST and lack of E-way bill implementation have led to lower-than-expected growth for home décor companies, including CPBI. Hence, we revise down FY19/20E EPS 24%/23%, respectively. However, we believe, with increase in surveillance, organised players will benefit and clock higher than industry growth. Reiterate ’BUY’ with revised target price of Rs 341 (Rs 442 earlier) based on 27x FY20E EPS
Century Plyboards (CPBI) reported a dismal Q4FY18. Muted volume growth in plywood (8% YoY) and margin pressure in non-plywood categories, primarily due to forex loss, led to EBITDA and PAT missing estimates 16% and 33%, respectively. The quarter’s numbers were dented by forex loss (Rs 70mn) and the unorganised sector gaining market share in the absence of E-way bill.
Poor surveillance post GST and lack of E-way bill implementation have led to lower-than-expected growth for home décor companies, including CPBI. Hence, we revise down FY19/20E EPS 24%/23%, respectively. However, we believe, with increase in surveillance, organised players will benefit and clock higher than industry growth. Reiterate ’BUY’ with revised target price of Rs 341 (Rs 442 earlier) based on 27x FY20E EPS
10:27 AM
ICICI Securities on Godrej Agrovet
With strong tailwinds in all four segments, we expect GAVL to report earnings CAGR of 32.9% over FY18-20. We reiterate BUY on the stock with a target price of Rs710 (35x FY20E).
Post meeting with management of Godrej Agrovet (GAVL), we remain positive on GAVL as 1) animal feed segment is expected to report strong volume-led growth ahead with revival in volumes of broiler feed, 2) steady flow of new product launches and entry in combinations to drive growth of crop protection, 3) import duty increase on palm oil will support domestic manufacturers like GAVL, and 4) lower milk procurement prices will drive dairy segment margins north.
With strong tailwinds in all four segments, we expect GAVL to report earnings CAGR of 32.9% over FY18-20. We reiterate BUY on the stock with a target price of Rs710 (35x FY20E).
10:15 AM
Dollar strength, rising US Treasury yields hurts emerging markets
The Indian markets fell 2 per cent last week in what was their worst weekly setback in two months. But, India was not the only market that came under selling pressure.
In fact, the entire emerging markets (EM) pack saw turbulence as a stronger dollar and rising US Treasury yields prompted investors to exit risky assets and move into safe havens. The Dollar index, a measure for the performance of the US dollar against six key currencies, climbed to its highest level in 2018 on Friday. READ MORE
9:59 AM
Market Check
| S&P BSE Sensex | 34,900.70 | 0.15% | |
| Nifty 50 | 10,608.10 | 0.11% | |
| S&P BSE 200 | 4,598.64 | 0.03% | |
| Nifty 500 | 9,205.20 | -0.04% | |
| S&P BSE Mid-Cap | 15,834.73 | -0.38% | |
| S&P BSE Small-Cap | 17,263.14 | -0.37% | |
9:48 AM
Bhushan Steel resolution effect: PSBs gain, Nifty PSU Bank index up 2%
Shares of public sector banks (PSBs) were trading higher by up to 4% on the National Stock Exchange (NSE) in early morning trade on Monday after Tata Group acquired controlling stake of 72.65% in the debt-ridden Bhushan Steel for around Rs 352 billion last week, which will help in cleansing the banking system as well as boost lenders profitability. READ MORE
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First Published: May 21 2018 | 3:30 PM IST
