MARKET WRAP: Sensex ends 64 pts lower at 35,593, DHFL dips 6%; BoI jumps 8%

The S&P BSE Sensex lost 64 points or 0.18 per cent to close at 35,593 while NSE's Nifty50 index ended above 10,650 level at 10,652, down 9 points or 0.088 per cent.

1:11 PM

Anand Rathi Research on Persistent Systems

Persistent’s Q3 revenuewas $120.8m (up 2.2% q/q, down 1.4% y/y). Its services business (75% of revenue) was up 3.1% q/q, 1.1% y/y, showingrecovery in the q/q growth rate. Its Digital business turned around with 6.4%Q3growth q/q (Q1 down 6%, Q2 down 1.7% q/q); Acceleritemoved up 8% q/q. IP revenues were the only drag, flat q/q in a seasonally strong quarter, sliding 8% y/y. 

EBITDA margin touched a new high (19.7%, up 234bps y/y, reaching back to pre-IoT levels. We retain our FY20e/FY21e EBITDA estimates but cut PAT due to forex losses/higher taxes. We retaina Buy with a revised target of Rs 760 (14x FY21e PE vs. 15xearlier)

1:07 PM

Market Check

12:47 PM

FACT tumbles post Q3 results announcement

12:39 PM

Nomura on Ceat

12:37 PM

BUDGET EXPECTATIONS

Why BofA-ML expert sees Budget 2019 surprising market on fiscal front

The concerns about the health of India's finances have coincided with a rebound in prices of oil -- India's top import -- and below-average revenue from goods and services tax and asset sales READ MORE HERE

12:25 PM

Elara Capital on Chennai Petroleum

We reiterate Accumulate on MRL with a revised TP of Rs 287 from Rs 312. We reduces our TP due to lower FY21E EBITDA at Rs 146/share (from Rs 158/share) as we lower FY21 earnings estimate. Our TP is based on 5.5x FY21E EBITDA.

12:22 PM

Top sectoral gainers and losers on NSE

12:14 PM

The IL&FS soap opera has now created more drama; this time for Zee

Subhash Chandra, the founder who controls 41 per cent of Zee Entertainment Enterprises Ltd., is putting half his shares on the block after making wrong-way leveraged bets in unrelated industries such as infrastructure, a mistake the tycoon acknowledged in an open letter on Friday evening. Although the stake-sale plan has been known for a while, the official explanation so far was that Zee wanted a partner to become a “global media-tech player.” READ MORE

12:01 PM

NEWS ALERT

Equitas Board to consider scheme of arrangement between Equitas Holdings & Equitas Small Fin Bank for listing the latter, on February 1, as per CNBC TV18 report. 

11:51 AM

Elara Capital on Persistent Systems

We lower our revenue estimates slightly and increase our EBITDA margin estimate by 34bp, 113bp and 99bp over FY19, FY20 and FY21 respectively to arrive at a new TP of INR 710 from INR 690 on 12x (unchanged) FY20 P/E. We revise our rating to Buy from Accumulate, given a 10.6% drop in the share price since 2 January 2019. Key risks remain any significant decline in IBM IP revenue or loss of any of the top clients. Management commentary indicates a broader customer base is forming in the enterprise segment, and we believe this is the key to accelerating growth.

11:43 AM

CHALET HOTELS IPO UPDATE: Issue subscribed 4% so far on Day 1

11:31 AM

Buzzing Stock

 

11:25 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,562.61	-94.09	-0.26
S&P BSE SENSEX 50	11,127.02	-24.20	-0.22
S&P BSE SENSEX Next 50	31,100.58	+28.71	+0.09
S&P BSE 100	10,867.14	-18.97	-0.17
S&P BSE Bharat 22 Index	3,333.60	+1.64	+0.05

11:06 AM

Nomura on Zee Entertainment

Zee promoters address near-term concerns

We believe this will allay the near-term concerns and curtail any further correction in the stock price. However, any stock price recovery is contingent upon how soon the promoter asset sale concludes with cash being received by the lenders and the deal valuation for the promoter stake sale in Zee. The stock trades at ~16.5x FY20F EPS of INR19, much lower than its past 10-year average trading multiple of 25x.

11:05 AM

Nomura on Shriram Transport Finance

We continue to like retail asset financiers over HFCs and wholesale NBFCs given the current liquidity environment. We think current valuations at 1.2x FY21F book for a 16-17% ROEs is undemanding and already reflects lower growth expectations.

We think funding availability will not be challenging for names like SHTF and q/q increase in bond funding reaffirms our belief. In addition to that, improving asset quality cycle will net off any margin pressures, supporting our ROE expectations of 16-17% for FY19-21F. Our target price of Rs 1,425/share implies 1.6x FY21F book.