Indices close at record highs; Sensex ends above 40k-mark for first time

All that happened in the stock market

12:01 PM

Jefferies on ONGC

ONGC's 4QFY19 earnings halved q/q to Rs40.45bn missing JEFe by 19% on higher exploration write-offs. EBITDA was inline with full year standalone EBITDA up 37% y/y driving up EPS 34% y/y. With subs & JVs also doing better, esp. OVL where prod. is near all time highs, consol. EPS rose 38% y/y to a new record too. We expect this to broadly sustain in FY20E, even with subsidies, leaving valuations undemanding at 7.2x P/E. We keep our BUY with a higher price target of Rs 205

12:00 PM

Emkay Global on ONGC

ONGC Q4FY19 Result Update; Earnings below estimates on higher expenses; Buy; Target: Rs 190

ONGC reported Q4FY19 EBITDA/ PAT of Rs87.5bn/40.4bn, up 5%/down 32% yoy and down 37%/51% qoq, which was 20%/31% below our est. due to higher opex, royalty, survey-dry well cost and impairments. Rajasthan JV royalty directive led to higher levies

11:59 AM

INTERVIEW OF THE DAY :: JAN DEHN, head of research at Ashmore Investment Management

Do you see the government revising the fiscal deficit target going ahead?

 

The government engaged in election-related fiscal slippage ahead of the election. The splurge was not excessive. However, it happened and it is now important that the fiscal accounts are brought back into line. If the big lesson from Modi’s first term was the early reforms pay off, the big lesson from Congress’s time in office was that big fiscal does not pay off. I hope that Modi realises that the single largest threat to the Indian economy is bad fiscal policy. If fiscal gets out of line, then monetary policy also soon becomes ineffective. And that is the road to ruin. READ THE FULL INTERVIEW HERE

Jan Dehn

 

11:56 AM

Market watch

S&P BSE Bharat 22 Index	3,772.41	-0.30	-0.01
S&P BSE 100	12,132.20	+88.13	+0.73
S&P BSE SENSEX Next 50	33,288.99	+270.50	+0.82
S&P BSE SENSEX 50	12,505.53	+89.16	+0.72
Index	Current	Pt. Change	% Change
S&P BSE SENSEX	39,996.21	+282.01	+0.71

11:39 AM

Apollo Hospitals rallies 12% in two days on strong Q4 results

Shares of Apollo Hospitals Enterprises surged 9 per cent to Rs 1,351 in intra-day trade on Monday, rallying 12 per cent in past two trading days on the BSE, after the company reported a more-than-doubled consolidated net profit at Rs 84.4 crore in March quarter (Q4FY19). The Chennai-based hospital chain had posted a profit of Rs 23.8 crore in the year-ago quarter. Total revenues during the quarter grew 19 per cent year-on-year (YoY) at Rs 2,521 crore in Q4FY19, against Rs 2,112 crore in the corresponding quarter of previous fiscal. READ MORE

11:37 AM

Two stock recos by Nirmal Bang Securities

HG INFRA ENGG.

 

CMP: Rs 297

 

Target: Rs 400

 

HG has consistently delivered best in class return ratios with lowest working capital requirement within the infra pack. Proven execution track record and comparatively smaller base provide a long runway for growth for HG. We expect the company to grow at over 20% CAGR for next 3-4 years. We value HG at 15.0x FY20E EPS (at a 20% discount to our target multiple for KNR of 18.0x) and arrive at a target price of Rs 400.

 

FEDERAL BANK

 

CMP: Rs 107

 

Target: Rs 150

 

Strong performance on cost/income (at 50% - declined 670bps since FY16) and credit cost (at 0.5% in Q4FY19 vs 1.3% in FY18) has led to return on assets (ROA) crossing the 1.0% mark after a gap of 16 quarters. We estimate FB to deliver 22%/39% CAGR in advances/earnings over FY19-21E and project return on equity (RoE) to improve to 13.3% from 9.8% in FY19. We arrive at a target price of Rs 150 at 1.8x FY21E adjusted book value (ABV), which is 33% discount to City Union Bank.

11:35 AM

Sensex reclaims 40,000-mark

11:31 AM

Nifty reclaims 12,000 mark

11:17 AM

Apollo Hospitals rises 8%

11:06 AM

NEWS ALERT | Ashok Leyland May total auto sales dips 4% YoY at 13,172 units

11:04 AM

Nifty Auto index off day's low

10:56 AM

India manufacturing PMI grows at fastest pace in three months in May

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring. The survey found increased optimism about manufacturing activity over the coming year, probably helped as Prime Minister Narendra Modi scored a dramatic election victory on a mandate of business-friendly policies and a tough stand on national security. READ MORE

10:48 AM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
M & M	637.60	-9.50	-1.47	22074192
SPICEJET	152.90	6.95	4.76	4033083
RELIANCE POWER	7.65	0.20	2.68	2511094
REL. COMM.	2.02	-0.02	-0.98	1693628
NCC	99.80	1.95	1.99	1639081

10:46 AM

ICICI Securities on Entertainment Network India

The fact that overall growth expectations of radio industry has tapered down to 8-10% CAGR vs. erstwhile expectations of 14-15% growth coupled with consistent lower growth trajectory of ENIL in core radio segment is concerning. The scaling up of non-FCT business, though is a positive move but is exposed to risks of losses in events. We would wait before the said segment expands on profitability on consistent front. Hence, we downgrade our rating to HOLD with a revised DCF based target price of Rs 545, (implying ~10x FY21E EV/EBITDA).

10:37 AM

Aurobindo Pharma slides over 4%