RIL, IT stocks propel Sensex 1,041 pts up; Nifty tops 16,650; Ethos dips 9%

CLOSING BELL: Among individual stocks, Titan, Infosys, M&M, L&T, Reliance Industries, HCL Tech, TCS, and Tech M were the lead gainers

SI Reporter New Delhi

MARKETS: Sensex holds gains, rises 1,000 pts; Nifty50 tests 16,650

9:08 AM

Pre-open session: Over 600 points advance for Sensex

9:06 AM

Pre-open session: Nifty 50 sails above 16,550 levels

9:00 AM

Brokerage Call :: Edelweiss Securities on NMDC

We believe iron ore price are likely to come off in tandem with steel price, resulting in a subdued performance of core business. That said, we expect steel plant divestment/commissioning to result in value unlocking. We maintain ‘BUY’ on the stock with an unchanged TP of Rs 152 on 4.5x Q2FY24E EBITDA.

8:58 AM

Brokerage Call :: ICICI Securities on Mishra Dhatu Nigam

Mishra Dhatu Nigam (Midhani) recorded Q4FY22 revenue and EBITDA of Rs 3,233 mn (down ~6.5%YoY) and Rs 1,219 mn (up ~18.2% YoY), respectively.

Gross margin improved to ~79% from ~70% in Q3FY22. EBITDA margin improved to 37.3% from 26.9% in the previous quarter.

Order inflows are expected to pick up driven by an already strong orderbook in defence PSUs and space budget coming back to normal (gradually) post a weak FY21. Maintain BUY with TP Rs 251

8:57 AM

Brokerage Call :: ICICI Securities on M&M

Mahindra & Mahindra’s (M&M) Q4FY22 EBITDA margin came in at 11.4% (down 48bps QoQ) despite blended ASP rise of 6% QoQ.

Order backlog continues to be elevated at >170k with XUV700 leading at >78k bookings.

M&M is also open for value unlocking in the EV space by getting a strategic partner to invest.

We value M&M on SoTP-based target price of Rs1,006 (earlier: Rs913), implying 16x FY24E core EPS. Maintain ADD.

8:55 AM

Brokerage Call :: Nirmal Bang on JB Chem

Strong growth in Contract Manufacturing business

JB Chemicals’ (JB Chem) 4QFY22 net profit (Rs849mn) was better than our expectation. Revenue at Rs6,246mn was 4.5% above our estimate. CMO Business grew by 70% QoQ, but a part of this growth may be non-recurring. EBITDA margin stood at 20%, which was down 133bps QoQ and 344bps YoY, owing to raw material inflation and some one-offs (consultancy/advisory fees).

In FY23, EBITDA margin should improve as expenses will be contained while revenue growth will accelerate, led by integration of Sanzyme and Azmarda. Base business growth will also be aided by double-digit price increase in its DPCO portfolio (~30% of domestic revenue). CMO business should benefit from operating leverage as it continues to invest in expanding its portfolio (products and clients).

We have slightly tapered our domestic revenue growth rate and operational expenses, giving us a Target Price (TP) of Rs1,946. We value JB Chem at 25x FY24E EPS.

8:51 AM

Dollar value drifts toward monthly loss as Federal Reserve bets ease

Early in the Asia session the dollar was a fraction weaker on the euro at $1.0728, just above a five-week low, having dropped about 1.5% on the common currency last week. READ MORE

8:47 AM

Which events will the markets track this week?

Indian

Manufacturing PMI for May will be declared on 1 June 2022.

The S&P Global Composite PMI and Services PMI for May will be declared on 3 June 2022.

The government will announce data on first quarter gross domestic product (GDP) on 31 May 2022.

Global

China will announce the NBS Manufacturing PMI for May on 31 May. China will also announce Caixin Manufacturing PMI on June 1.

Japan will declare the Consumer Confidence data for May on 31 May.

The US Non Farm Payrolls data for May will be announced on June 3.

8:41 AM

Q4 results on May 30

Fourth Generation Information System, Aadi Industries, Jubilant Foods, Aurobindo Pharma, Campus Activewear, Life Insurance Corporation (LIC), Coffee Day Enterprises, LT Foods (Daawat), DCM Shriram Industries, Delhivery, Dhampure Sugar, Dhani Services, Dish TV, Dixon Technologies, Dredging Corp, Eureka Forbes, Jindal Steel, Mawana Sugar, Mcleod Russel, Medplus Health, Natco Pharma, Navkar Corp, NBCC (India), Prudent Corporate Advisory Services, Radico Khaitan are among the notable names slated to announce their results today.

8:39 AM

Ethos to list today

The equity shares of Ethos Limited shall be listed later today. According to analysts, Ethos shares may list in the range of Rs 870 to Rs 900 apiece on Indian bourses, as against the issue price of Rs 878 per share.

Luxury watch retailer Ethos’ initial public offering (IPO) had managed to scrape through with just 1.03 per cent subscription. The retail investor portion of the issue was subscribed 82 per cent, high networth individual portion was covered 1.48 times and institutional investor category received 1.06 times subscription.

“The IPO is richly priced and the company will have to continue growing its business at a high growth rate in order to justify its valuation,” Marwadi Financial Services had said in a pre-IPO note.

8:37 AM

Street signs: 16,000 key support for Nifty, FPI sell-off continues & more

16,000 key support for Nifty
The Nifty50 Index consolidated within a broad range of 15,900–16,400 last week. It recovered from the lows on the day of expiry to keep the momentum in the last trading session to end above 16,350, with gains of over half a per cent. READ MORE

8:35 AM

From LIC to RIL, here're the top stocks to track today

RIL, Adani Group: According to a Business Standard report, Reliance, Adani Group, and Thailand's conglomerate Charoen Pokphand (CP) are potential frontrunners to acquire a partial or full stake in the Gurugram-headquartered Metro Cash & Carry.

United Spirits: United Spirits, a subsidiary of British alco-beverage major Diageo, is focusing on its premium brands to drive sales in India even as it sold off its 32 lower-priced brands to Inbrew Beverages for Rs 820 crore on Friday and franchised 12 more brands, including Bagpiper and Blue Riband. READ MORE