Indices recover from day's low to end flat, PSU Bank stocks gain over 1.5%

All that happened in the markets today.

12:59 PM

Geojit downgrades Bharat Forge

De-risking the utilisation in non-auto segment and ramp up of PV sales will support growth. We marginally upgrade our revenue & EBITDA estimate for FY19 by 3% & 6% to factor in 15% volume growth, superior product mix & cost optimisation. We expect the earning to grow by 34% CAGR over FY17-20E. At CMP, BFL is trading at P/E of 30x/25x on FY19E/FY20E EPS that lends little comfort on a I year fwd basis.. We rollover our valutaion to FY20 EPS at a P/E of 27x with a revised target price of 789 and downgrade our rating from Buy to Hold.

12:57 PM

Centrum Wealth on Hindustan Aeronatuics IPO

At the higher end of the price band of Rs1,240, the issue is priced at P/E of 15.9x (post dilution) on FY17 and 53x on H1FY18 (annualized) basis. The company has no listed peers engaged in the similar line of business. HAL’s business is cyclical in nature as revenue recognition depends on a certification process (acceptance and delivery of products by customers) which generally takes place in H2 due to favourable conditions for flight testing. Hence, valuation on H1FY18 annualized basis looks high, although, the same looks reasonable on FY17 (post dilution basis).

With an aim to be self-reliant and reduce the dependence on imports, the government is focusing on indigenous defence manufacturing. We believe this would give rise to a host of opportunities; and HAL, being the largest DPSU in terms of value production, could be a key beneficiary. Given the growth prospects, investors can subscribe to the issue from a long term perspective. It must be noted that, owing to the current market volatility listing gains may be capped

12:55 PM

JM Financial on Parag Milk Foods

With rising consumer demand, a strong culture of innovation, robust brand portfolio and disruption effects (GST and Demonetization) now behind, we expect growth trajectory to improve after a subdued performance over the past 15-18 months; we forecast revenue, EBITDA and net profit CAGR of 13%, 15% and 22%, respectively, over FY17-20E. The company is also expected to be cash-generative in the next 2-3 years as a significant part of expansion capex is now out of the way.

This, plus an improving growth trajectory drive our positive bias. We initiate with BUY and a target price of INR 330 based on 24x FY20E EPS (marginally higher than its current trading multiple, which is at a discount to peers such as Prabhat and Heritage Foods). We see 22% upside from the current market price. However, ROIC remains a sore point in our view, as we see a challenge for Parag to scale up beyond 20%, given its high working capital requirements.

 

12:53 PM

Mutual Fund watch

Despite the stock markets declining, net inflows into Equity mutual fund (MF) schemes continued to remain strong. In February 2018, Equity funds (including ELSS) witnessed monthly net inflows of Rs. 16,268 crore, up 5.7% MoM and more than 150% YoY. The increase was mainly driven by sustained inflows through Systematic Investment Plans (SIPs). According to data from AMFI, cumulative SIP contribution has been Rs. 53,646 crore so far in FY2018 (data updated till Jan 2018).

(Source: ICRA report)

12:45 PM

WPI inflation eases to 2.48% in February; food, fuel prices rise marginally

India's annual wholesale price inflation eased to 2.48 per cent in February for the third straight month after touching an eight-month high in November, helped by a softer rise in food and fuel prices, government data showed on Wednesday. Annual wholesale price inflation last month slowed to 2.48 per cent from a year earlier, from a provisional 2.84 per cent rise in January READ MORE

Tomatoes

12:33 PM

Trump seeking tariffs on up to $60 billion Chinese goods; targets tech, telecoms

U.S. President Donald Trump is seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology and telecommunications sectors, two people who had discussed the issue with the Trump administration said on Tuesday. READ MORE

12:17 PM

Deepak Fertilisers corrects on profit booking

Deepak Fertilisers & Petrochemicals Corporation fell 5.15% to Rs 318.50 in intra-day deals on BSE on profit booking after a recent rally. READ MORE

12:10 PM

NEWS ALERT: Govt said to plan some LTCG relief for unlisted shares, say TV reports

12:09 PM

NEWS ALERT: WPI food articles inflation at 0.88% vs 3% in Jan.

12:08 PM

NEWS ALERT: Feb WPI inflation at 2.48 vs 2.84 in Jan. Lowest since July 2017

11:57 AM

Sectoral Trend

11:45 AM

Oil India gains 2% on fixing record date for 1:2 bonus issue

Shares of Oil India were trading 2% higher at Rs 336 on the BSE after the company said it has fixed March 29, 2018 as the record date for 1:2 bonus issue. The stock will turn ex-bonus on March 27, 2018. READ MORE

11:34 AM

Jindal Worldwide hits new high; stock zooms 50% in three days

 

Jindal Worldwide hit a new high of Rs 898, up 17% on the BSE, extending its past two days rally in otherwise subdued market.

 

The stock of textiles Company zoomed 50% from Rs 600 on March 9, 2018, as compared to 1.3% rise in the S&P BSE Sensex. In past one year, it rallied 560% from Rs 136, against 14.6% rise in the benchmark index.

 

Jindal Worldwide is having a large consumer base in India within the home textile domain and strong and reputed clients like Wal-Mart, Springs, Disney, WestPoint Stevens, Carrefour to name a few, whom the company is serving directly or via vendors. READ MORE

11:12 AM

Market Check

S&P BSE Sensex	33,720.91		-0.40%
Nifty 50	10,386.05		-0.39%
S&P BSE 200	4,534.34		-0.21%
Nifty 500	9,133.10		-0.27%
S&P BSE Mid-Cap	16,284.79		0.10%
S&P BSE Small-Cap	17,633.34		0.18%

10:56 AM

Uncertain times in bond market casting shadow on economy

 

The notion that the bond market will eventually replace bank loans is coming under scrutiny as yields rise, while banks keep their lending rates relatively unchanged. The rate cycle has decisively changed to an uptick, as can be seen by the sharp reaction to any incremental adverse news flow.

 

Investors are cutting losses, while the successive withdrawal of high-yielding quasi-equity bonds, which yielded returns of as high as 11-11.25 per cent, has caused further losses to investors, particularly mutual funds. READ MORE