F&O EXPIRY: Sensex tanks 324 points, Maruti dips 2%; Brent hits $75/bbl

All that happened in the markets today

2:16 PM

NEWS ALERT | Maruti Q4 result: EBITDA stands at Rs 2,263.4 crore

2:15 PM

NEWS ALERT | Net Profit at Rs 1,796 crore Q4FY19

2:14 PM

NEWS ALERT | Maruti Q4 result: Co announces dividend of Rs 80 per share

2:14 PM

NEWS ALERT | Maruti Q4 result: Revenue at Rs 21,459.4 cr Q4FY19

2:07 PM

ICICI Direct on Sterlite Technologies

The key highlight of Sterlite Tech’s Q4FY19 performance was superior execution of Navy and other services orders, which led to a beat at topline levels with revenues at Rs 1,791 crore (up 1.1x YoY) vs. estimated topline of Rs1,419 crore.

Sterlite has demonstrated a strong growth trajectory in the past couple of years driven by strong traction in global fibre demand. The recent China Mobile pricing fiasco, however, has clouded overall sentiments. Moreover, huge capacity addition across the globe is also likely to cap the price recovery in near to medium term. The shift of business mix towards services also runs the risk of working capital stress & thin margin. Therefore, we downgrade the stock to REDUCE, valuing it at 12x FY21E (vs. 15x earlier) EPS to arrive at target price of  Rs 180/share. Our earnings multiple cut is reflective of lower growth outlook, changing business mix and overhang of pledged shares.

2:01 PM

NEWS ALERT | Rupee surpasses Rs 70/$ level

Source: Bloomberg 

1:57 PM

Motilal Oswal on Lemon Tree (LEMONTRE)

-          With the Indian hospitality industry at the cusp of an upcycle, Lemon Tree (LEMONTRE) seems all set to cash in on the upswing. It plans to increase owned rooms by 1.5x; of the incremental rooms 68% will come in high demand and high ARR market.

 

-          After establishing itself as a leading player in the mid-priced hotel segment, the company is now leveraging the same to add rooms through management contract route. ARR growth in existing hotels will directly flow to the EBITDA and owned hotels coming up in high ARR markets should also aid in EBITDA growth as cost of operating hotel does not increase proportionately to ARR increase.

 

-          We expect LEMONTRE to deliver revenue/EBITDA CAGR of 29%/45% over FY18-21. We ascribe one-year forward EV/EBITDA of 22x and arrive at a target price of Rs 90. Initiate coverage with Buy rating

1:56 PM

CD Equisearch on Finolex

The stock currently trades at 15.5x FY19e EPS of Rs 29.78 and 13.9x FY20e EPS of Rs 33.28.  Restoration of price cuts in PVC pipes undertaken in FY18 coupled with recovery in volumes would help Finolex report earnings growth in low teen next fiscal on overall higher operating margin.

Blend of higher capacity utilization and increased margins would doubtlessly spur return on capital - ROE estimated to rise to 16.1% from 12.6% in FY18. Yet risks of little steady demand of PVC pipes from vagaries of monsoons would have no sober effects. On balance, we retain our buy recommendation on the stock with revised target of Rs 599 (previous target: Rs 814) based on 18x FY20e earnings (four year average TTM P/E: 20.9)

1:55 PM

Emkay Global on Hexaware

Hexaware’s CC growth of 2.0% qoq was lower than our expectation of 2.5%, largely due to demand deterioration in the BFS vertical. The 40bps qoq decline in EBITDA margins was driven by sub-contractor cost increase (-80bps) and INR appreciation (-40bps)

While Hexaware can deliver good revenue growth in CY19, we believe that rising attrition and sub-contractor costs pose a risk to its EBITDA margin guidance. We maintain our Hold rating on the stock with a target price of Rs380 (based on 16x Mar’21E EPS)

1:54 PM

HDFC Securities on Hexaware

Hexaware’s  low-teens organic growth trajectory is sustainable supported by its  IMS/BPM led growth strategy (negligible legacy). Strong deal wins with 20%  growth  in  TCV (TTM) provides growth visibility including its largest net-new  deal  (USD  100mn  Nordic)  which ramps up in 4Q. Geo expansion in Europe/APAC  also  expected to support growth.

We build USD rev/EPS CAGR of 13/14%  over CY18-21E factoring flat margin trajectory. Valuations at 12.8x (discount  to  tier-2  IT)  to  be  supported by 14% EPS CAGR (in-line with tier-2  IT),  40%  RoIC and 5% FCF yield. Key risks include appreciation in INR, slowdown in BFS and value destructive acquisition

1:53 PM

Rollover stats

·       The Nifty APRIL expiry rollover is at 58.06% on Wednesday compared to 58.63% on same day of previous expiry.

 

·      The Banknifty APRIL expiry rollover is at 56.01% on Wednesday compared to 50.52% on same day of previous expiry.

 

·      The Market wide APRIL expiry rollover is at 66.32% on Wednesday as compared to 69.74% on same day of previous expiry. 

 

·      The Nifty APRIL rollover is higher than its Three months average of 58.06% and its six months average of 54.8%. 

 

·       The Banknifty APRIL rollover is higher than its Three months average of 56.01% and its six months average of 46.85%. 

 

·      The market wide rollover is lower than its three months average of 66.57% and higher than its six months average of 64.98%

(Source: Nirmal Bang)

 

 

1:51 PM

Nifty Metal index slides 1.4%

1:50 PM

NEWS ALERT | Jet Airways asks Aviation ministry to not allocate traffic rights to other cos

1:39 PM

Bharti Infratel slips 8% on disappointing March quarter results

Bharti Infratel shares slipped 8 per cent to Rs 278 in intraday trade on the BSE on Thursday after the company reported flat consolidated net profit at Rs 608 crore in March quarter due to a decline in revenue.The consolidated revenue during the quarter slipped 2 per cent year-on-year (YoY) at Rs 3,600 crore against Rs 3,662 crore in the same quarter a year ago. Ebitda (earnings before interest, tax, depreciation and amortization) margin contracted 125 bps to 42.61 per cent from 43.86 per cent in previous year quarter. READ MORE

1:33 PM

NEWS ALERT | Cadila Health's Zydus gets USFDA nod for generic of Arava tablets