Share Market Highlights 16 January 2024: Sensex sheds 199 pts, Nifty closes below 22,050; Divis Lab, HCL Tech top losers

​Stock markets snapped their five-day winning run​ on Tuesday with the benchmark Sensex declining by 199 points due to profit-taking in IT and oil shares and weak global trends.

The ​BSE Sensex​ dropped by 199.17 points or 0.27 per cent to settle at 73,128.77.

The index opened lower but staged a recovery in late-morning deals to touch its all-time intra-day high of 73,427.59. The barometer therafter failed to hold onto gains due to profit-taking in the broader market and retreated by 367.65 points or 0.50 per cent to a low of 72,960.29.

The ​Nifty​ touched its all-time intra-day high of 22,124.15 before closing lower by 65.15 points or 0.29 per cent at 22,032.30.

The rupee slumped 23 paise to 83.09 (provisional) against the US dollar on Tuesday, as a strong greenback against major rivals overseas and negative equity market dented investor sentiment.

Besides, volatile crude oil prices in the international markets weighed on the domestic currency, forex traders said.

At the interbank foreign exchange, the rupee opened at 82.95 and traded in the range of 82.92 to 83.09 against the greenback during intra-day.

Top gainers:

Bharat Petroleum Corporation Ltd (4.12%), Titan company Ltd (2.02%), Hero motocorp Ltd (1.61%), Oil and Natural Gas corporation Ltd (1.50%), Maruti Suzuki India Ltd (1.17%)

Top losers:

HCL technologies ltd (-1.88%), Divis lab Ltd. (-1.80%), Wipro Ltd (-1.53%), Tech Mahindra Ltd (-1.51%), NTPC Ltd (-1.47%)

A total of 3,926 stocks were actively traded, 1,310 advanced, while 2,529 declined and 87 stocks remained unchanged where 428 stocks hit a 52 week high and 11 stocks hit a 52 week low at 3.25 pm on Tuesday.

C.E. Info Systems Ltd’s MapmyIndia reported Q3 FY2024 with Total Income exceeding ₹100 crore, a 36% YoY revenue growth reaching an all-time high of ₹92 crore. The Revenue reached ₹272.5 crore, accompanied by a 38% YoY growth in EBITDA to ₹38.6 crore and an EBITDA margin of 43%. Shares were down by 2.24% to ₹2014.95 on the BSE.

Exhicon Events Media Solutions Ltd has entered into a Memorandum of Understanding with Pinewoods Golf Club LLP, acquiring 76% stake in the golf club. Shares were up by 7.99% at ₹431.49 on the BSE.

Mapping technology company Genesys International Corporation has announced the appointment of Pavan Tsunduru as its chief operating officer (COO), who will be instrumental in deploying innovative solutions across diverse sectors.

Tsunduru has held senior technology positions at various companies, including Reliance, Adani Ports, and GMR Group. For more

ICRA Ltd has announced that its wholly-owned subsidiary, ICRA Analytics Ltd, will invest in D2K Technologies India Pvt Ltd. 

The board of ICRA Analytics has approved the proposal to invest up to ₹5.5 crore in the preference shares of D2K Technologies, a step-down subsidiary of ICRA Ltd. For more

Maruti Suzuki India Ltd has hiked the prices of its vehicles. “An estimated weighted average of increase across models stands at around 0.45 per cent. This indicative figure is calculated using ex-showroom prices of models in Delhi and will come into effect from January 16, 2024,” the company said in its regulatory filing.

The stock rose by 1 per cent on the NSE, traded at ₹10,189 as of 1:57 pm on Tuesday.

Jubilant FoodWorks Limited’s subsidiary, Jubilant Foodworks Netherlands B.V., is to make a final cash offer. The move aims at acquiring up to 45.33% of DP Eurasia and, upon completion, pursuing the delisting of DP Eurasia from the London Stock Exchange. The shares were down by 0.78% to ₹528 on the BSE.

Bank of Maharashtra (BoM)reported a 34 per cent year-on-year (y-o-y) increase in third quarter net profit at ₹1035.51 crore on the back of healthy growth in net interest income, steady other income, and sharp decline in tax expenses.

Zinc futures (January contract) on the Multi Commodity Exchange (MCX) has been on a decline since the beginning of this month. It faced a barrier at ₹234 and on the back of this, the price moderated. Zinc futures closed at ₹225.6 on Monday. Currently hovering around ₹225, the probability of a fall from here is high. 

The construction and real estate industry acquisition is set to be completed by March 2024, with a cash consideration of Rs 1 per share.

Capital Small Finance Bank, which is among the leading SFBs in India in terms of cost of funds, retail deposits and CASA deposits for Fiscal 2023 has received final observations from SEBI for their proposed IPO.

The bank commenced operations as India’s first small finance bank in 2016 and has the most diversified portfolio with sizeable book in multiple asset classes as compared to other SFBs with a highest proportion of secured lending of 99.82% as of Fiscal 2023 among the SFBs. 

According to reports, the IPO consists of a fresh issue of Rs 450 crore and an offer-for-sale of up to 24.12 lakh shares by its existing shareholders and promoters.

Book Running Lead Managers to the IPO: Nuvama Wealth Management Limited (Formerly known as Edelweiss Securities Limited), DAM Capital Advisors Limited and Equirus Capital Private Limited

Federal Bank reported quarterly net profit of Rs 1,006.74 crore for Q3 FY23, marking a 25.28% YoY growth. The bank’s total business reaches Rs 4,38,776.39 crore and a record net interest income of Rs 2,123.36 crore.

Max Life Insurance Company Ltd has introduced the ‘Midcap Momentum Index Fund’ in the ULIP segment. The new fund offering is structured around the Nifty Midcap 150 Momentum 50 Index, which has displayed a noteworthy 28.7%* 5-year and 26.7%* 10 year CAGR returns (returns as on 31st Dec’23). Investors can participate in the new fund until January 29, 2024, at a unit price of Rs. 10, applicable exclusively during this limited NFO period.

This new fund offering aligns strategically with the surging trend of Index funds in India which have witnessed a staggering 175%**CAGR growth in AUM over the last 3 years (FY20-FY23). Specifically targeting the growth potential of mid-cap companies, the Midcap Momentum Fund aims to replicate the Nifty Midcap 150 Momentum 50 Index by investing in companies with similar weights as in the index and generate returns as closely as possible, subject to tracking error.

ICRA Ltd’s subsidiary, ICRA Analytics, plans to invest up to Rs 5.5 crore in the preference shares of D2K Technologies India Pvt Ltd, a step-down subsidiary. The acquisition holds 60 per cent of D2K’s shareholding. Shares up by 0.40 per cent at Rs 5619.35 on the BSE.

Himadri Speciality Chemical Ltd reported a 71% YoY growth in PAT at Rs 169 crore in Q3FY24. CEO, Anurag Choudhary, announced capex for a new commercial plant and the turnaround of the joint acquisition of Birla Tyres Ltd. Shares were up by 3.99 per cent at Rs 391 on the BSE.

Though Asian Paints’ Q2FY24 performance was subdued on the back of erratic monsoons and a delayed festive season, we expect strong growth in Q3FY24 volumes due to deferment of sales and the festive and wedding season. In the previous quarters, the company saw a dip due to weak rural demand impacting overall volumes. However, factors such as improvement on the rural side, an increase in government spending, and overall monsoon deficit decline will aid growth in Q3FY24. Furthermore, the company’s safe painting services (SPS) and trusted contractor services (TCS), which are a significant part of the company’s business, saw exponential growth and doubled in size. The company has already added about 7,000 touchpoints of its planned 8,000-10,000 touchpoints during the first half of the year and aims to expand its network further. Additionally, the company is growing its ‘Whiteteak’ and ‘Weatherseal’ home décor business by expanding its store network and increasing traction across beautiful homes. These segments have shown positive growth over previous quarters and are expected to continue further. Considering the festive and wedding season, expansion of the network, growth in rural demand, and post-monsoon pickup in the real estate projects, we believe that Asian Paints is likely to post a double-digit volume growth and maintain its bottom line story.

Genesys International Corporation Ltd has appointed Pavan Tsunduru as Chief Operating Officer (COO) to lead the development of the New Map stack.

LIC hits Rs 900 for the first time since listing. The stock is now trading at Rs 885.55 on the NSE, commanding a market capitalisation of Rs 5.60 lakh crore

Praveg Ltd has approved the allotment of 28,025 equity shares at Rs 10 each, following the exercise of warrants allotted on a preferential basis. The warrants were issued at an issue price of Rs 268 each to Het Choksey Advisors LLP, a non-promoter entity. With this allotment, the company’s issued and paid-up equity share capital increases to Rs 22.86 crore.

Star Paper Mills Ltd has received an update on non-promoter shareholding from Lok Prakashan Ltd, revealing their holding of 8,42,108 equity shares, constituting 5.40 per cent of the company. Its shares were down 1.14 per cent at Rs 243 on the BSE.

S.I. Capital & Financial Services Ltd has approved a fund-raising proposal for the issuance of secured unlisted redeemable non-convertible debentures (NCDs) worth up to Rs 1.03 crore through private placement. The NCDs will have various schemes with interest rates ranging from 10.25% to 12.00%, payable on a monthly basis.

HDFC Bank is seen posting 30-32 per cent growth in its net profit for Q3 FY24, led by a 27 per cent increase in net interest income on the back of healthy loan growth. Shares of the bank were trading around 1 per cent lower ahead of the results scheduled post market hours today. For more

CMP - INR 859 | TP - Rs 1,726 | 52 week High/Low- 842/239

MSTC’s near-monopolistic market status offering a trusted and transparent e-commerce platform for auctioning metal scraps places it in a virtually unassailable position in an attractive emerging area of vehicle scrapping. The icing on the cake is its joint venture with Mahindra Group which is into vehicle scrapping, a sunrise sector with immense potential. 

• Vehicle scrappage business holds immense potential: India came up with a vehicle scrappage policy in 2021 but the implementation has been slow. Recent news articles indicate progress on this front as a few state governments have notified policies related to ELV certification and more will likely follow suit. MSTC will likely be a major beneficiary of this trend. 

• Fundamentals strong with legacy issues behind: MSTC has almost downsized its goods trading business where it suffered significant impairment in its receivables from private sector clients. Additionally, the GoI is looking to divest MSTC’s 100% subsidiary, Ferro Scrap Nigam Limited. 

• Valuation: Our back-of-the-envelope exercise indicates an upside of 70%-130% over the next 2-3 years. MSTC has been earning an ROE and ROCE of 25%+ over the last 2 years. Applying a target P/E of 15.0x on a potential FY26E net income of INR 8,100 mn, our pro-forma fair value comes to INR 1,726, which implies an upside of 101% from current levels. 

“Opening of this record demat account is due to fear of missing out (FOMO) factor. The market is trading at a record high and investors have made significant profit as the rally is broadbased. New investors are coming in by hearing the noise around to participate in the rising market. Buoyancy in the IPO market is also prompting these investors to open demat accounts to participate in these IPOs. The retail base has significantly increased post-corona and has supported the volume of the market heavily. New investors are adding from different parts of the countries including the small towns. Opening these accounts will further strengthen the retail volume and participation. Although a word of caution is important at this point in time. These investors should come to the market for a longer period of time with a mindset of regular investing and should avoid investing in penny stocks on rumours. Marker is at a lifetime high and volatility may increase from here onwards.”

“Ahead of the GDP data tomorrow, China’s economy is expected to grow 5.2% from a year earlier in the fourth quarter of 2023 and clock a feeble growth of around 5% in 2023 in comparison to its historical growth and other major emerging economies. A combination of domestic property slump, unsustainable debt of provincial governments and weakening confidence of consumers and businesses has poured cold water on hopes of a bounce back in China’s economic growth post COVID pandemic. With global economy expected to slow down in 2024, it looks difficult for China to rekindle its exports amid persistent deflationary pressures in the economy. It is likely to become increasingly tough for China to sustain the current growth rate in 2024 due to structural challenges in the economy. We will not be surprised to see stimulus measures from the People’s Bank of China aimed at reviving the property market which remains the cornerstone for the Chinese economy.”

We expect LTIMindtree to post a moderation in revenue growth and register an increase of 0.5%-1% QoQ in Q3FY24. This subdued growth can be attributed to reduced number of working days and a higher-than-expected impact of furloughs, particularly in the BFSI and Hi-Tech verticals. However, the momentum in the manufacturing and energy verticals is expected to partially offset these challenges. Additionally, we expect a slight decline in margin, attributable to third-quarter seasonality, lower growth in the higher-margin BFSI/Hi-Tech verticals, and furloughs. However, we anticipate these headwinds to be partially offset by operational efficiencies. As LTI Mindtree navigates these challenges, we will be looking out for the impact of wage hikes and macro headwinds on margin and guidance for FY24, commentary on client budgets and latest developments in the merger.

Bank of Maharashtra (BoM) reported a 34 per cent year-on-year (yoy) increase in third quarter net profit at Rs 1035.51 crore on the back of healthy growth in net interest income, steady other income, and sharp decline in tax expenses. 

The growth in bottomline comes despite the Pune-headquartered public sector bank’s provisions (other than tax) and contingencies (net) rising 62 per cent yoy to Rs 943 crore (Rs 582 crore in the year ago quarter).

The Bank had reported a net profit of Rs 775 crore in the year ago quarter.

Top gainers on the NSE at 12 pm include - Bharat petroleum corporation Ltd (3.85%), Titan company ltd (1.90%), Oil and natural gas corporation Ltd (1.56%), Hero motocorp Ltd (1.56%), Maruti Suzuki India ltd (1.23%).

Divis laboratories Ltd (-1.74%), HCL technologies Ltd (-1.81%), Wipro Ltd (-1.59%), Tech Mahindra Ltd (-1.46%) and NTPC Ltd (-1.45%) were the major laggards.

Dhruv Consultancy Services Limited, in collaboration with MAPS Global Civiltech Private Limited, received the Letter of Award for consultancy services in preparing a Detailed Project Report for Maharashtra Road Improvement Project Phase III (MRIP-III) highway projects. The projects involve the improvement of roads in Maharashtra under the financial assistance of the Asian Development Bank, with a contract price of approximately Rs 1.31 crore.

The company’s shares advanced 3.61% to Rs 66 on the BSE.

NBCC (India) Limited secured work order worth Rs 138.95 crore for various construction projects, including the development of Jawahar Navodaya Vidyalayas (JNV) in Jharkhand and Delhi, as well as the renovation of office space for the Insolvency and Bankruptcy Board of India in New Delhi. The shares were up by 0.28% to Rs 92 on the BSE.

Vishnu Prakash R Punglia Limited won a project worth Rs 116.56 crore by the DRM Office, NW Railway, Jodhpur, Rajasthan. The project involves the construction of 12-meter wide Foot Over Bridges (FOBs) at multiple railway stations. The shares were up by 1.87% to Rs 217.85 on the BSE.

Angel One, a listed retail stock broking house, has reported a 14 per cent increase in consolidated net profit for the third quarter ended December 31, 2023, at ₹260 crore (₹228 crore).

However, the latest bottomline was 14.5 per cent lower than the net profit of ₹304 crore recorded in the September 2023 quarter.

Maruti Suzuki India Limited announced a price increase across its models, with an estimated average increase of around 0.45%. The revised prices, effective from January 16, 2024, follow the earlier communication from November 27, 2023. The adjustment is attributed to various factors impacting manufacturing and operational costs. Shares up by 1.35% to Rs 10222.75 on the BSE.

Bank of Baroda (BoB) will issue second tranche of long term infrastructure bonds of up to ₹ 5000 crore, comprising (Base issue of ₹ 1000 crore and Green Shoe Option of up to ₹ 4000 crore) for a tenor between 7 to 10 years.

This issuance is part of the public sector bank’s plan for raising Long Term Bonds for Financing of Infrastructure and Affordable Housing aggregating up to Rs.10,000 crore, in single or multiple tranches, during FY 2023-24 and beyond,

Cardholders get a discount of Rs 500 via the EazyDiner App, complimentary EazyDiner Prime membership, and up to 2 reward points on every Rs 100 spent. IndusInd Bank’s shares down by 0.40% to Rs 1682 on the BSE.

L&T’s Railway Business Group secured a contract for Electrification System Works, covering 508 Route Km of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) Project, known as the Bullet Train Project. The contract involves the implementation of Japanese Shinkansen High Speed Electrification Technology, for trains to reach speeds up to 320 KMPH. shares up by 0.92% to Rs 3575 on the BSE.

Bank Nifty futures (January expiry) opened today’s session lower at 48,255.35, compared to yesterday’s close of 48,306.25. The contract is now hovering around 48,350, up 0.15 per cent.

Wardwizard Innovations & Mobility Limited reports a 81% surge in EBITDA for Q3 FY24, with total revenues reaching Rs 106.32 crore, in the electric vehicle (EV) segment. The company partnered with Triton EV for manufacturing Battery Operated trucks and a collaboration with BEEAH Group for sustainable EVs in GCC and Africa. Shares up by 0.71% to Rs 83.43 on the BSE.

Espire Hospitality Limited discloses that Fort Barwara, owned by Espire Resorts Private Limited, located in Sawai Madhopur, Rajasthan, is presently operated by the Inter-Continental Hotels Group under its Six Senses brand. Shares up by 2% to Rs 155.75 on the BSE.

Birlasoft Ltd. granted 250,000 options under the “Birlasoft Share Incentive Plan-2019” and 67,500 options along with 82,500 Performance Stock Units under the “Birlasoft Share Incentive Plan–2022” to eligible employees. The shares were down by 0.85% to Rs 779.70 on the BSE.

Nifty 50 opened today’s session marginally lower at 22,080.50 versus yesterday’s close of 22,097.45. The index is now hovering around 22,080, down 0.1 per cent.

All mid- and small-cap indices are in the green despite the benchmark index facing some downward pressure in the first hour of trade.

Jyoti CNC Automation, the Indian leader in CNC machine manufacturing, made its debut on the stock market, listing at Rs 370 per share, an 11.8% premium over its issue price of Rs 331. 

While Jyoti CNC’s strong brand presence and robust market share are undeniable, the financial concerns and hefty valuation necessitate a cautious approach.

Jyoti CNC’s listing debut was positive but overshadowed by concerns. Thus we recommend investors book profit and exit their position; however, those who still want to hold it should keep a stop loss at around issue price.

The rupee reversed its nine-day upward movement and depreciated 11 paise to 82.97 against the US dollar in early trade on Tuesday, tracking a strong American currency against major overseas rivals and subdued equity market sentiment.

Some inflow of foreign funds supported the Indian currency, which was weighed down due to volatile crude oil prices, forex traders said.

Reliance Infrastructure Limited disclosed that Indian Bank filed an application under section 7 of IBC against Mumbai Metro One Private Limited (MMOPL), a joint venture of the company. The total principal debt of the consortium in MMOPL amounts to Rs 1,711 crore. Shares up by 0.97% to Rs 234.60 on the BSE.

The acquisition constitutes 0.32% shareholding. Shares down by 0.69% to Rs 1362.75 on the BSE.

Suraj Estate Developers Limited reports Q2 FY24 results with a 35.1% QoQ increase in EBITDA and a 16.5% QoQ growth in PAT, reducing debt by Rs 44.15 crore in Q2FY24 and a pre-sale of 19,397 sq.ft. Shares were up by 1.71% to Rs 356.55 on the BSE.

Easy Trip Planners Ltd.’s, EaseMyTrip.com launches the Travel Republic Sale, offering discounts on flights, hotels, buses, cabs, and holiday packages from January 16th to 19th, 2024, with savings up to 23% on flights and 60% on hotels. Shares down by 1.35% to Rs 48.11 on the BSE

As of 08:16 AM Tuesday 16 January 2024

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Top losers on the NSE at 9.30 am - HCL Tech (-2.13%), Wipro Ltd (-1.62%), Eicher Motors Ltd (-1.23%), LTIMindtree (-1.10%), Tech Mahindra Ltd (-1.05%)

Capri Global Capital Ltd (CGCL) plans to revolutionise delivery of insurance products and services with the use of data analytics, artificial intelligence, and blockchain in insurance solutions. The company has received a composite corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI) in December 2023.

The Capri Global Capital stock traded at ₹901.40 on the NSE, up by 10.85 per cent as of 9:16 am on Tuesday.

Prime Minister Narendra Modi will inaugurate the new 310-metre dry dock and International Ship Repair Facility (ISRF) at Cochin Shipyard on Wednesday.

Set up at an overall cost of Rs 2,800 crore, these infra investments are aligned with the Sagarmala and Maritime India Vision 2030 initiatives, said Madhu S. Nair, Chairman and Managing Director.

At 9.13 am on Tuesday, March Brent oil futures were at $78.32, up by 0.22 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $72.69, up by 0.11 per cent. January crude oil futures were trading at ₹6022 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6008, up by 0.23 per cent; and February futures were trading at ₹6059 as against the previous close of ₹6049, up by 0.17 per cent.

The duty will curb molasses export and ensure ample supplies for the ethanol-blended programme.

Oil prices moved little in Asian trade on Tuesday as traders awaited more developments in the Middle East, while a string of key economic readings due this week also kept markets on edge. Most Asian stocks fell on Tuesday, with Japan’s Nikkei 225 retreating as investors locked in profits from a stellar rally, while focus turned to key upcoming economic indicators from China. On the domestic economic front, India’s trade deficit fell to a three-month low of $19.8 billion in December 2023 as exports grew and imports eased. Furthermore, Housing finance companies could be in focus today after the RBI tightened rules related to deposit acceptance. On the stock-specific front, Jio Financial Services posted a net profit of Rs 293 crores for the December quarter of the current financial year, down from the previous quarter’s Rs 668 crores. Amidst the ongoing earning season, the GIFT Nifty indicates a marginally negative start for the broader indices after a strong rally in the previous session.

The 50 index opened over 150 points higher led by the IT packs. While the opening hour remained edgy and marked an intraday low of 21963, the price action rebounded strongly to close at record highs. On the derivative front, 22000PE saw the highest addition of open interest indicating a relatively stronger and immediate support. As we advance, the index is anticipated to continue to attract bullish strength provided the support zone near 22000-21900 remains intact on a closing basis.

Supp: 22050-22000-21900

Res: 22120-22200-22300

• Markets remain cautious ahead of key economic readings, including Chinese fourth-quarter GDP data.

• Economic growth in China is expected to exceed the government’s 5% annual target, but this growth is expected to be influenced by a weaker base for comparison in 2022.

• China imported record-high crude levels in 2023, but sustained economic weakness and high inventory levels are expected to reverse this trend in 2024.

• In the U.S., retail sales and industrial production data for December are due, with any strength in retail spending likely to affect inflation outlook.

• Uncertainty over U.S. interest rates has been a major point of contention, with recent signs of inflation resilience affecting oil prices.

Silver prices inched higher, buoyed by renewed optimism about early rate cuts by the U.S. Federal Reserve. The dollar experienced a slight decline following data indicating an unexpected drop in U.S. producer prices in December, driven by reduced costs for goods like diesel fuel and food. This data, contrasting with the earlier robust Consumer Price Index (CPI) results, fueled hopes for a gradual convergence of inflation toward the Fed’s target. Market participants are currently pricing in an 81% chance of a rate cut by the Fed in March, as indicated by CME’s Fed Watch tool. 

Gold prices advanced, driven by increased safe-haven demand amid tensions in the Middle East. The ongoing conflict between Israel and Hamas, now surpassing 100 days, and the Houthi militia’s threat to respond to U.S. airstrikes in Yemen have heightened geopolitical risks. Gold, known for its reliability during economic turmoil, attracts investors seeking a hedge against the uncertainties associated with geopolitical unrest. The metal’s appeal was further bolstered as markets began to anticipate an earlier-than-expected rate cut by the Federal Reserve, contributing to the positive performance of gold in the current market environment.

​

HDFC Life Insurance Company Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/HDFC_Life-Jan15_2024.pdf

Weak Q3

BUY\u0009CMP : Rs. 615\u0009PT : Rs. 750\u0009

HDFC Life reported ~2% y-o-y decline in APE (~7% below estimates) resulting in VNB declining by ~2% y-o-y (missing our estimates by ~10%). However, VNB margins stood at 26.8% stable y-o-y.

Lower APE was led by lower Non-PAR (-32%), Group protection (-31%), Annuity (-9%) and PAR (-2%) sales. While ULIP (+88%) and Individual Protection (+54%) witnessed strong growth.

Muted growth seen on Banca (~3% yoy) and Agency (~3%) channel while Direct and Broker channel declined by 6% y-o-y & 57% y-o-y respectively.

Stock currently trades at 2.4x/ 2.0x its FY2025E/ FY2026E EVPS. We maintain a Buy on the stock with an unchanged PT of Rs. 750.

Tata Consumer Products Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/TCPL-3R-Jan15_2024.pdf

Acquisitions to fill white spaces to fuel growth

BUY CMP : Rs. 1,150 PT : Rs. 1,315

Tata Consumer Products Limited (TCPL) is set to acquire Capital Foods and Organic India, which fit well within key growth platforms, including premiumization and value accretion in the portfolio.

There is significant potential to leverage TCPL’s strong distribution network, global presence and increasing scale with scope for operating efficiencies to drive profitability.

Acquisitions would be done at combined enterprise value (EV) of Rs. 7,000 crore; and funded through a mix of internal accruals/debt/equity. It will be earnings accretive in FY26E (in mid-single digits based on calculations).

Stock trades at 58x/52x its FY2025E/26E EPS. Acquisitions will add strong value to portfolio and earnings in the medium to long run. We maintain a Buy with a revised PT of Rs. 1,315.

Infosys Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/Infosys-3R-Jan12_2024.pdf

No bad news, is good news

BUY CMP : Rs. 1,612 PT : Rs. 1,850

Revenues stood at $4,663 million, down 1% q-o-q in constant currency CC terms, beating our estimates of $4,625 million in a seasonally soft quarter.

EBIT margin declined ~70 bps q-o-q to 20.5% in- line with our expectations of 20.3%. EBIT margin during the quarter was impacted by wage hike and McCamish cyber-attack incident but partially offset by cost optimization efforts.

Large deal TCV stood at $3.2 billion, with 71% being net new deals. Deal win momentum remains strong with TTM TCVs up ~53% y-o-y.

The management has tightened the revenue growth guidance for FY24 to 1.5-2% in CC terms from 1-2.5% implying muted revenue growth for Q4FY24 but has maintained the operating margin guidance for FY24 at 20% to 22%.

Large deal signings and continuity of renewals to gain further traction as macro headwinds recede, improving earning visibility for FY25/FY26E. Hence, we maintain a Buy on Infosys with revised PT of Rs. 1850 (increase in PT reflects the roll forward to FY26E EPS) At the CMP, the stock trades at 23.3x/20x its FY25/26E EPS.

HCL Technologies Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/HCLTech-3R-Jan12_2024.pdf

Robust Q3; Maintain Buy

BUY CMP : Rs. 1,543 PT : Rs. 1,780 

HCL Tech reported strong revenues of $3,415 million, up 6% q-o-q/4.3% y-o-y in constant currency (CC) terms beating our estimates of 4.4% q-o-q CC led by ERS, HCL Software and IT services, which grew 8.7%/32% and 1.9%, q-o-q respectively in CC terms.

EBIT margins improved ~130 bps q-o-q to 19.8% owing to outperformance from the software (180 bps) that was offset by services margin (50 Bps) despite wage hike and furloughs. New deal win TCVs stood at $1,927 million, down 51%/18% on a q-o-q and y-o-y basis, respectively.

FY24 CC revenue growth (including ASAP acquisition) guidance narrowed to 5-5.5% at company level as well as for Services segment. Ask rate for Q4FY24 at 0.3 to 2.1%, and 1.6 to 3.5% at services level.

We believe HCL Tech is well-equipped to maintain its growth leadership among large peers in the medium term given the diversified portfolio that is well-aligned to growth areas and strong execution. Hence, we maintain Buy with revised price target (PT) of Rs 1,780. At CMP the stock trades at 22.5/19.1x its FY25/26E EPS.

Wipro Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/Wipro-3R-Jan12_2024.pdf

Beats expectations, Optimistic Commentary

HOLD CMP : Rs. 465 PT : Rs. 530

Wipro’s Q3FY24 revenue stood at $2,656.6 million, down 1.7% q-o-q in CC but above our estimate of 2.5% q-o-q decline in CC owing to weakness in Communications, Manufacturing, Technology, Consumer, and BFSI verticals partially offset by growth in HealthCare and Energy & Utilities.

IT services margin declined 10bps q-o-q to 16%, beating our estimates of 15.4% despite wage hikes and furloughs. Total bookings stood at $3.8 billion while large deal TCV stood at $0.9 billion, down 8.3% y-o-y in CC.

The company provided revenue growth guidance for IT services in the range of -1.5 to 0.5% in constant currency for Q4FY24 implying anticipation of improving demand environment.

In line with our sector upgrade, we have raised the target multiple for Wipro to factor in receding macro headwinds and better earnings visibility for FY25. However, we believe Wipro’s earnings growth momentum would lag its Tier 1 peers. Hence, we maintain Hold on Wipro with revised price target (PT) of Rs. 530. At CMP, the stock trades at 20.5/17.7x its FY25/26E EPS.

Gujarat Gas Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/GujGas-3R-Jan12_2024.pdf

Margin tailwinds from fall in spot LNG price

BUY CMP : Rs. 535 PT : Rs. 615

A sharp fall of 34% in spot LNG price to $11/mmBtu since November 2023 could act as margin tailwinds for Gujarat Gas. Asian spot LNG March 2024 futures show further decline of 10% to $10/mmBtu.

Propane prices stay firm at $580-600/tonne and a likely improvement in I-PNG’s competitiveness versus propane could drive volume recovery from Morbi ceramic cluster as customers may switch to natural gas from propane.

Likely lower gas costs and volume recovery would drive solid 30% earnings CAGR over FY2024E-FY2026E along with RoE of 21%.

We maintain a Buy with a revised PT of Rs. 615 as we rollover PE multiple to FY26E EPS. At CMP, the stock trades at 19x FY26E EPS.

Hi-Tech Pipes Ltd

https://www.sharekhan.com/MediaGalary/Equity/Hitech-3R-Jan12_2024.pdf

Operational profitability upbeat; outlook is positive

POSITIVE CMP : Rs. 147 Upside potential : 20%

We stay Positive on Hi-Tech Pipes and expect a 20% upside, rolling forward our valuation multiple to FY2026E earnings, considering its strong net earnings growth outlook over FY2023-FY2026E.

Consolidated Q3 net earnings beat estimates, led by higher-than-estimated operational profitability, while revenue lagged due to lower realisation.

Hi-Tech expects sales volume of over 4 lakh tonne for FY2024 and 20-25% y-o-y growth for FY2025-FY2026. EBITDA/tonne target is pegged at Rs. 3,500 and Rs. 4,000 for FY2025 and FY2026, respectively.

About 1.2 lakh tonne of the 1.7-lakh tonne LDA pipe project at Sanand is under trial runs. Hitech eyes a 1-million tonne capacity by FY2025-end.

Hi-Tech Pipes Ltd

https://www.sharekhan.com/MediaGalary/Equity/Hitech-3R-Jan12_2024.pdf

Operational profitability upbeat; outlook is positive

POSITIVE CMP : Rs. 147 Upside potential : 20% 

We stay Positive on Hi-Tech Pipes and expect a 20% upside, rolling forward our valuation multiple to FY2026E earnings, considering its strong net earnings growth outlook over FY2023-FY2026E.

Consolidated Q3 net earnings beat estimates, led by higher-than-estimated operational profitability, while revenue lagged due to lower realisation.

Hi-Tech expects sales volume of over 4 lakh tonne for FY2024 and 20-25% y-o-y growth for FY2025-FY2026. EBITDA/tonne target is pegged at Rs. 3,500 and Rs. 4,000 for FY2025 and FY2026, respectively.

About 1.2 lakh tonne of the 1.7-lakh tonne LDA pipe project at Sanand is under trial runs. Hitech eyes a 1-million tonne capacity by FY2025-end.

Gujarat Gas Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/GujGas-3R-Jan12_2024.pdf

Margin tailwinds from fall in spot LNG price

BUY CMP : Rs. 535 PT : Rs. 615 

A sharp fall of 34% in spot LNG price to $11/mmBtu since November 2023 could act as margin tailwinds for Gujarat Gas. Asian spot LNG March 2024 futures show further decline of 10% to $10/mmBtu.

Propane prices stay firm at $580-600/tonne and a likely improvement in I-PNG’s competitiveness versus propane could drive volume recovery from Morbi ceramic cluster as customers may switch to natural gas from propane.

Likely lower gas costs and volume recovery would drive solid 30% earnings CAGR over FY2024E-FY2026E along with RoE of 21%.

We maintain a Buy with a revised PT of Rs. 615 as we rollover PE multiple to FY26E EPS. At CMP, the stock trades at 19x FY26E EPS.

Infosys Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/Infosys-3R-Jan12_2024.pdf

No bad news, is good news

BUY CMP : Rs. 1,612 PT : Rs. 1,850

Revenues stood at $4,663 million, down 1% q-o-q in constant currency CC terms, beating our estimates of $4,625 million in a seasonally soft quarter.

EBIT margin declined ~70 bps q-o-q to 20.5% in- line with our expectations of 20.3%. EBIT margin during the quarter was impacted by wage hike and McCamish cyber-attack incident but partially offset by cost optimization efforts.

Large deal TCV stood at $3.2 billion, with 71% being net new deals. Deal win momentum remains strong with TTM TCVs up ~53% y-o-y.

The management has tightened the revenue growth guidance for FY24 to 1.5-2% in CC terms from 1-2.5% implying muted revenue growth for Q4FY24 but has maintained the operating margin guidance for FY24 at 20% to 22%.

Large deal signings and continuity of renewals to gain further traction as macro headwinds recede, improving earning visibility for FY25/FY26E. Hence, we maintain a Buy on Infosys with revised PT of Rs. 1850 (increase in PT reflects the roll forward to FY26E EPS) At the CMP, the stock trades at 23.3x/20x its FY25/26E EPS.

SHAREKHAN SPECIAL:-Q3FY2024 Results Preview

Modest growth, domestic themes to outperform

https://www.sharekhan.com/MediaGalary/Equity/Q3FY24_ResultsPreview-Jan11_2024.pdf

In Q3FY24, we expect a modest y-o-y earnings growth of 11% for Nifty 50 companies driven by domestic cyclicals such as banks, automobile as well as capital goods, pharmaceuticals, cement, while IT and chemicals would underperform.

EBITDA margins are likely expand for automobiles, cement and metal sectors while those of IT, agri-inputs, speciality chemicals are likely to contract on a y-o-y basis. For the SK universe, we expect healthy 14% y-o-y earnings growth.

Demand outlook in domestic (urban/rural) and export market after the festive season, margin outlook and capex recovery would be keenly watched out for in management commentaries.

Nifty’s valuation of 20x FY25E EPS is not cheap but not expensive either given expectations of a 12-14 % CAGR in Nifty-50 earnings over next two years. Favourable macros, potential rate cuts, easing inflation and policy reforms bodes well for equity. After a strong rally in the small/mid-cap space, we turned selective and preferred large caps.

High-conviction investment ideas:

Large-caps: HDFC Bank, SBIN, L&T, Tata Motors, ITC, Tata Consumers, Sun Pharma, Tata Power, NTPC, IndusInd Bank, TCS, DLF, Lupin, HeroMoto.

Mid-caps: BEL, APL Apollo, Bharat Forge, HAL, Indian Hotels, PNB, Bank of India, Sanofi India, LTIM, CESC.

Small-caps: Artemis Healthcare, Kirloskar Oil Engines, Rolex Rings, Samhi Hotels, Koltepatil, Caplin Point, CIE India, Garware Hitech, NIIT MTS, Birlasoft and Subros.

Tata Consultancy Services Ltd

https://www.sharekhan.com/MediaGalary/StockIdea/TCS-3R-Jan11_2024.pdf

Earnings beat; Maintain Buy

BUY\u0009CMP : Rs. 3,736\u0009PT : Rs. 4,200\u0009

Q3 earnings were better than estimates in a seasonally soft quarter with revenues at $7,281 million, up 1.7% y-o-y in constant currency (cc) beating our estimates of $7,224 million driven by Energy Resources and Utilities, Manufacturing, and Life Sciences & Healthcare verticals.

EBIT margins improved ~75 bps q-o-q to 25%, beating estimates by ~50 bps led by operational efficiencies and reduction in sub-contractor expenses partially offset by furloughs and higher third-party expenses. Deal win TCVs were stable and broad-based at $8.1 billion, up ~4% y-o-y. Book to bill ratio stood at 1.1x.

Management commentary was stable and hopeful of a recovery in FY25 owing to expectations of sector headwinds bottoming out. Management believes there will be positive momentum in BFSI in the next quarter and are some seeing green shoots in Consumer vertical.

We believe TCS is well positioned to grab cost optimisation and transformational opportunities as sector headwinds recede and witness a strong pick-up in growth momentum given its strong domain capabilities , contextual knowledge and strong execution . Hence, we maintain Buy rating on TCS with an unchanged PT of Rs. 4,200. At CMP, the stock trades at 26.4x/23.3x FY25/26E EPS.

Q3FY2024 Infra/Logistics/BM/Realty Results Preview

https://www.sharekhan.com/MediaGalary/Equity/Q3FY2024_Infra_Results_Preview-Jan11_2024.pdf

Realty robust, BM/Infra/logistics decent

Net earnings for our universe of building materials companies are likely to grow 33.5% y-o-y as OPM expands while demand remains soft. Steel piping companies remain unfavourably placed.

Infrastructure and logistics companies are expected to see decent net earnings growth y-o-y. Road project awarding remained weak till November 2023 although construction picked up. The logistics segment would see marginal pressure sustaining.

Real estate companies are likely to continue to report strong sales booking, as highlighted in the operational updates of Macrotech, Sobha, and Puravankara. Further, we expect robust sales booking growth from DLF and Oberoi. Other players are also expected to see decent y-o-y growth.

Preferred Picks – KNR Construction, PNC Infratech, Greenlam, Carysil, Hindware Home Innovation, TCI Express, TCI Ltd., DLF, Sobha, Macrotech, Kolte-Patil Developers, and Arvind Smartspaces.

Q3FY2024 Infra/Logistics/BM/Realty Results Preview

Realty robust, BM/Infra/logistics decent

https://www.sharekhan.com/MediaGalary/Equity/Q3FY2024_Infra_Results_Preview-Jan11_2024.pdf

Net earnings for our universe of building materials companies are likely to grow 33.5% y-o-y as OPM expands while demand remains soft. Steel piping companies remain unfavourably placed.

Infrastructure and logistics companies are expected to see decent net earnings growth y-o-y. Road project awarding remained weak till November 2023 although construction picked up. The logistics segment would see marginal pressure sustaining.

Real estate companies are likely to continue to report strong sales booking, as highlighted in the operational updates of Macrotech, Sobha, and Puravankara. Further, we expect robust sales booking growth from DLF and Oberoi. Other players are also expected to see decent y-o-y growth.

Preferred Picks – KNR Construction, PNC Infratech, Greenlam, Carysil, Hindware Home Innovation, TCI Express, TCI Ltd., DLF, Sobha, Macrotech, Kolte-Patil Developers, and Arvind Smartspaces.

GS on Dixon Tech

Downgrade to Sell, TP Rs 5400

See 3 main concerns on three main areas:

1) With Co potentially manufacturing 29% of non-Apple phones in India over next 4-5 yrs, think any further increase in this proportion is unlikely

2) While overall IT hardware opportunity is sizable, Dixon’s ability to win contracts in IT hardware is not as evident 

3) Other B2C EMS verticals, which used to be a large focus for Dixon in past, are witnessing intense competition

Stock trading at 52X FY25E EPS, a 30% premium over other Indian EMS peers & a 5x premium over global peers

STK up 70% in past 1 year pricing seamless execution & more order-wins

MOSL on PNB Hsg

Buy, TP Rs 1025

Set to deliver PAT CAGR of 25% over FY24E-FY26E & RoA/RoE of 2.5%/14% in FY26

Healthy loan growth to return in Retail while Corporate will be an enabler

Improvement in yields & lower CoF to boost NIM

Trades @1.1x FY26E P/BV

UBS on One97 Comm

Initiate Buy, TP Rs 900

Continued monetisation & EBITDA break-even to drive re-rating

Expect a moderating 21% top-line CAGR in FY24- 28, while operating leverage plays out as marketing expense ease & ESOP costs moderate

EBITDA margin to gradually reach 20%

Macquarie on LIC HSG Fin

O-p, TP Rs 650

RBI regulations on deposit restrictions – LIC Hsg fine on all aspects

3) Reduction in ceiling of maturity of deposits from 10 years to 5 years

LICHF is fine on all aspects- deposits as a % of total funds is just 5%

CITI On HFCs

HFC regulations harmonized with NBFC framework

LICHF & Can Fin has less than 2% of borrowings by ways of public deposits while PNBHF has almost one-third of borrowings through deposits

MS on Autos (2024 outlook)

Overall industry growth moderates but EV growth will accelerate. 

Benign commodity prices, coupled with supportive policy will be a tailwind to earnings.

Tata Motors, Mahindra and Ashok Leyland are preferred OEM OWs

WPI: Positive but softer than anticipated

Headline WPI grew +0.7% YoY in December but declined by 0.9% on a sequential basis. Broad-based moderation was seen across primary, fuel and manufactured products, expected to also support retail inflation. Primary articles declined by 2.1% MoM while fuel and manufactured products de-grew both on a MoM and YoY basis. WPI core inflation sequentially declined by 0.2%. With MoM changes to WPI core still negative, any pressure on CPI core is also likely to remain muted. We retain our view for the RBI to be on an extended pause: first cut seen around August 2024.

Highlights:

• WPI inflation grew by 0.7% YoY in December; registered a sequential decline of 0.9% MoM

• Core inflation declined 0.6% YoY in December

• We retain our monetary policy call; extended pause anticipated till August 2024 policy

Route – Tender 

Buyback Price: 300/- 

Current Market Price: 262.90 /- 

Market Cap: Rs 1,745 crores 

Buyback Size: ₹30 Crs (Representing 2.89% and 2.88% of the aggregate of the Company’s fully paid-up equity capital and free reserves) 

Buyback Size: 10,00,000 shares (Representing 1.51 % of O/s. shares) 

Retail Quota: 1,50,000 Shares 

Last Cum Trading Date – 16 January 2024 (Today) 

Ex-Date – 17 January 2024 

Buyback Record Date: 17 January 2024 

Buyback Schedule: Not Yet Announced

16 January 2024 (Today)

Derivative Segment

• HDFC Bank Ltd.

• ICICI Lombard General Ins Co

• L&T Technology Services Ltd.

• The Federal Bank Ltd.

Cash Segment

• Bank Of Maharashtra

• CE Info Systems Ltd.

• ICICI Securities Ltd.

• Jindal Saw Ltd.

• Network 18 Media & Inv Ltd.

• TV18 Broadcast Ltd.

17 January 2024

Derivative Segment

• Asian Paints Ltd.

• ICICI Prudential Life Ins Co Ltd.

• LTIMindtree Ltd.

• Oracle Financial Serv Software 

Cash Segment

• Alok Industries Ltd.

• Happiest Minds Tech Ltd.

• IIFL Finance Ltd.

18 January 2024

Derivative Segment

• Indiamart Intermesh Ltd.

• IndusInd Bank Ltd.

• Polycab India Ltd.

• Tata Communications Ltd.

Cash Segment

• 360 One Wam Ltd.

• Finolex Industries Ltd.

• Home First Finance Co India 

• Jindal Stainless Ltd.

• Mastek Ltd.

• Metro Brands Ltd.

• Poonawalla Fincorp Ltd.

• Shoppers Stop Ltd.

• Sterling & Wilson Ren Energy

• Supreme Petrochem Ltd.

19 January 2024

Derivative Segment

• Atul Ltd.

• Hindustan Unilever Ltd.

• RBL Bank Ltd.

• Reliance Industries Ltd.

• Ultratech Cement Ltd.

Cash Segment

• Central Bank Of India

• CESC Ltd.

• CreditAccess Grameen Ltd.

• Hatsun Agro Product Ltd.

• Hindustan Zinc Ltd.

• One97 Communications Ltd.

• Sunteck Realty Ltd.

• Supreme Industries Ltd.

• Tejas Networks Ltd.

20 January 2024

Derivative Segment

• Can Fin Homes Ltd.

• ICICI Bank Ltd.

• IDFC First Bank Ltd.

• JK Cement Ltd.

• Kotak Mahindra Bank Ltd.

• Persistent Systems Ltd.

Cash Segment

• IDBI Bank Ltd.

• Rossari Biotech Ltd.

• The Jammu & Kashmir Bank

• Union Bank Of India

22 January 2024

Derivative Segment

• Coforge Ltd.

• Colgate-Palmolive Ltd.

Cash Segment

• Mangalore Refinery & Petrochem

• Tamilnad Mercantile Bank Ltd.

• VST Industries Ltd.

• Zensar Technologies Ltd.

23 January 2024

Derivative Segment

• Axis Bank Ltd.

• Granules India Ltd.

• Havells India Ltd.

• Indus Towers Ltd.

• L&T Finance Holdings Ltd.

• Pidilite Industries Ltd.

• United Spirits Ltd.

Cash Segment

• Gujarat State Fert & Chem Ltd.

• Hitachi Energy India Ltd.

• Infibeam Avenues Ltd.

• KEI Industries Ltd.

• Sona BLW Precision Forgings Ltd.

• Tanla Platforms Ltd.

• Tata Elxsi Ltd.

• The Karnataka Bank Ltd.

24 January 2024

Derivative Segment

• Bajaj Auto Ltd.

• Canara Bank

• Container Corp Of India 

• Dalmia Bharat Ltd.

• Exide Industries Ltd.

• Tech Mahindra Ltd.

• TVS Motor Company Ltd.

Cash Segment

• Bharat Dynamics Ltd.

• Blue Dart Express Ltd.

• Ceat Ltd.

• PNB Housing Finance

• Ujjivan Small Finance Bank

25 January 2024

Derivative Segment

• Cholamandalam Inv & Fin Co 

• Cipla Ltd.

• JSW Steel Ltd.

• Syngene International Ltd.

• Shriram Finance Ltd.

• SBI Life Insurance Company

Cash Segment

• Cyient Ltd.

• Equitas Small Finance Bank

• HFCL Ltd.

• Intellect Design Arena Ltd.

• Maharashtra Scooters Ltd.

• Sterlite Technologies Ltd.

27 January 2024

Derivative Segment

• Hindustan Petro Corp Ltd.

Cash Segment

• Capri Global Capital Ltd.

• Craftsman Automation Ltd.

• Yes Bank Ltd.

29 January 2024

Derivative Segment

• Bajaj Finance Ltd.

• Bharat Electronics Ltd.

• ITC Ltd.

• Marico Ltd.

• Petronet LNG Ltd.

Cash Segment

• CSB Bank Ltd.

• Latent View Analytics Ltd.

• Nippon Life India AMC Ltd.

• UTI AMC Ltd.

30 January 2024

Derivative Segment

• Bajaj Finserv Ltd.

• Dr. Reddy’s Laboratories Ltd.

• M&M Financial Services Ltd.

Cash Segment

• Apar Industries Ltd.

• Bajaj Holdings & Investment Ltd.

• Blue Star Ltd.

• Gillette India Ltd.

• KPIT Technologies Ltd.

• Star Health & Allied Insurance Co 

• Vaibhav Global Ltd.

• ZF CV Ctrl Systems India Ltd.

31 January 2024

Derivative Segment

• Dabur India Ltd.

• Godrej Consumer Products Ltd.

• IDFC Ltd.

• Jubilant FoodWorks Ltd.

• Shree Cement Ltd.

• Sun Pharma Industries Ltd.

Cash Segment

• Amara Raja Energy & Mobility 

• Jyothy Labs Ltd.

• Kalyan Jewellers India Ltd.

• Motherson Sumi Wiring India

• P&G Hygiene & Health Care 

• Westlife Foodworld Ltd

01 February 2024

Derivative Segment

• Aditya Birla Capital Ltd.

• Mphasis Ltd.

• Titan Company Ltd.

Cash Segment

• Castrol India Ltd.

• Sumitomo Chemical India Ltd.

• Tube Investments of India Ltd.

• V-Guard Industries Ltd.

02 February 2024

Derivative Segment

• Torrent Pharmaceuticals Ltd.

Cash Segment

• Alkyl Amines Chemicals Ltd.

• Bikaji Foods International Ltd.

• Mahindra Holidays & Resorts

• Mahindra Lifespace Dev Ltd.

• Medplus Health Services Ltd.

03 February 2024

Derivative Segment

Nil

Cash Segment

• Clean Science & Tech Ltd.

05 February 2024

Derivative Segment

Nil

Cash Segment

• Kansai Nerolac Paints Ltd.

• Cholamandalam Fin Holdings

06 February 2024

Derivative Segment

• Max Financial Services Ltd.

• Navin Fluorine International Ltd.

Cash Segment

• Computer Age Mgmt Services Ltd.

• Endurance Technologies Ltd.

• Procter & Gamble Health Ltd.

• Timken India Ltd.

• TTK Prestige Ltd.

07 February 2024

Derivative Segment

• Cummins India Ltd.

• Nestle India Ltd.

08 February 2024

Derivative Segment

• Biocon Ltd.

Cash Segment

• Esab India Ltd.

09 February 2024

Derivative Segment

• Tata Power Company Ltd.

Cash Segment

• Emami Ltd.

12 February 2024

Derivative Segment

Nil

Cash Segment

• BASF India Ltd.

• Glaxosmithkline Pharma Ltd.

• HEG Ltd.

• JM Financial Ltd.

• Lakshmi Machine Works Ltd.

• TCI Express Ltd.

13 February 2024

Derivative Segment

• Bosch Ltd.

• Hindalco Industries Ltd.

14 February 2024

Derivative Segment

• Crompton Greaves Cons Elect

Cash Segment

• Gland Pharma Ltd.

20 February 2024

Derivative Segment

• ABB India Ltd.

23 February 2024

Derivative Segment

Nil

Cash Segment

• Rain Industries Ltd.

M.K. Exim (India) Ltd

Bonus issue 1:2

Previous day Closing Price – Rs. 164.3

Ex Bonus 17 January 2024 (Tomorrow)

Last date Trade for Before Bonus Today

Sarda Energy company gets contract worth ₹150 crore for installation of 50 MW DC solar power plant in Chhattisgarh 

Pidilite: Company forms partnership with Italy-based Syn-Bios, known for R&D and global marketing in the leather tanning industry 

RVNL: Company emerges as lowest bidder for Rs 251 crore power transmission project in Madhya Pradesh 

Usha Martin: Thailand-based arm to acquire 50% stake in Tesac Usha Wirerope Company for Baht 74.45 mn. 

HPL Electric: Company gets Rs 240 crore order for smart meters from AMISP clients 

Hind Copper/NALCO: India’s KABIL & Argentina’s CAMYEN SE sign agreement for exploration & mining of Lithium. 

*BLS International arm BLS International FZE, UAE, signs definitive agreement to acquire 100% stake in iData 

*Oil Upstream stocks: India cuts Windfall Tax on Crude Oil. 

Power stocks: Investment of Rs 17.05 lakh crore is in the pipeline in power and renewable energy sector, says Union minister R K Singh 

Capri Global Capital is set to develop an insurance platform to maximise its Corporate Agency License from IRDAI. 

The board of Shakti Pumps will meet on January 18 to consider fund raising via QIPs.

DCX Systems has launched QIP to raise up ₹500 crore, indicative issue price at ₹341/sh, 4.8%l per cent discount to SEBI floor price 

Bank of Baroda has Introduced new deposit scheme with interest rates ranging from 7.1-7.6% per annum. (Neutral) 

Fitch Ratings has assigned ‘BB’ rating to Shriram Finance proposed U.S. dollar-denominated senior secured bonds.

Housing Finance Companies such as Can Fin Homes, LIC Housing Finance, PNB Housing, Indiabulls HF and others may come under pressure as RBI proposes tighter norms for accepting public deposits by housing finance companies

India’s benchmark index Nifty 50 is set for a muted start on Tuesday, tracking Asian peers ahead of key economic data from China, after a recent rally to record highs.

India’s GIFT Nifty was trading at 22,107 as of 7:58 a.m. IST, suggesting the NSE Nifty 50 will open near its Monday’s close of 22,097.45.

The benchmarks Nifty 50 and Sensex breached 22,000 and 73,000 levels, respectively, for the first time on Monday, boosted by information technology stocks after the top four software companies posted better-than-expected third-quarter earnings.

The country’s exports increased 1 per cent to $38.45 billion in December 2023, according to the data released by the government on Monday.

Imports, however, declined by 4.85 per cent to $58.25 billion in December last year.

The exports of computer software and services, including IT enabled services and BPO, logged 12.2 per cent growth during 2022-23 to touch $193 billion, according to estimates by Electronics and Computer Software Export Promotion Council (ESC).

The IT software/services chunk accounted for the bulk of this at $126 billion, followed by BPO services ($52 billion).

• BANDHANBNK 

• BIOCON 

• BHEL 

• CHAMBAL 

• DELTACORP 

• ESCORTS 

• HINDCOPPER 

• INDUSTOWER 

• INDIACEM 

• METROPOLIS 

• PEL 

• POLYCAB 

• PVRINOX 

• SAIL 

• ZEEL

Anand Rathi Wealth: Feroze Azeez, CEO

Our Internal Aspiration Is To Add 250 New Clients Per Month: Anand Rathi Wealth

https://www.youtube.com/watch?v=l5sf_Y95e-8

Anand Rathi Wealth: Rakesh Rawal, CEO

Anand Rathi Q3: Guidance Met Ahead Of Target

https://www.youtube.com/watch?v=zKoUjQB5Tic

Capacite Infra: Subir Malhotra, ED&CFO

Main Purpose Of The QIP Is To Tap Into Growth Opportunities: Capacit’e Infra

https://www.youtube.com/watch?v=yF8hqFzB458

eMudhra: Venkatraman Shrinivasan, Chairman

eMudhra Launches QIP To Raise Up To ?200 Crore; Floor Price Set At ? 422 Per Share | V. Srinivasan

https://www.youtube.com/watch?v=njVMtLLHuhg

HCL Tech: Pratik Aggarwal, CFO

Software Division Saw A Solid 32% Growth QoQ And 5% YoY: HCLTech

https://www.youtube.com/watch?v=tZ9WjwXHdbo

IDFC First Bank: V Vaidyanathan, MD & CEO

V Vaidyanathan, MD & CEO, IDFC First Bank Addresses At Leaders Of Tomorrow Award Function

https://www.youtube.com/watch?v=nQ6mPC9Sh4Q

Karnataka Bank: Srikrishnan H, MD&CEO

Will Do Cashflow-Based Lending In The Coming Period: Karnataka Bank

https://www.youtube.com/watch?v=O5wSQob-wdQ

Medi Assist: Satish VN Gidugu, CEO & Whole-time Director

Adjusted Profit Is ?45 Crore In H1, Volumes Have Doubled Post COVID: Medi Assist

https://www.youtube.com/watch?v=uW55LR73xiw

TATA Cons. Prod: Sunil A, MD & CEO

Tata Consumer Acquires Capital Food, Creators Of Chings, Smith & Jones

https://www.youtube.com/watch?v=9h28aqOWnM4

Wipro: Thierry Delaporte, MD&CEO

Aligned With The Board On Targets And Achievements: Wipro CEO ,Thierry Delaporte

https://www.youtube.com/watch?v=J7kvoVcxD9w

Symbol: JYOTICNC 

Series: Equity “B Group” 

BSE Code: 544081 

ISIN: INE980O01024 

Face Value: Rs 2/- 

Issued Price: Rs 331/- per share

Compressed upper end of FY24 revenue guidance (inc ASAP Acquisition ) to 5 to 5.5% in cc terms vs previous guidance of 5% -6% . EBIT Margin remain unchanged at 18 to 19%

TCV came at $ 1927 Mn vs QoQ $ 3969 Mn, YoY $ 2347 Mn

CC QoQ came at 6% vs expectation of 4.6%, QoQ 1%, YoY 5%

Result is above expectation

Dollar revenue came at $ 3415 Mn,(5.9% QoQ, 5.3% YoY) vs expectation of $ 3364.3 Mn, QoQ $ 3224.7 Mn, YoY $ 3244 Mn

Net sales came at Rs. 28446 Cr (6.7% QoQ, 6.5% YoY) vs expectation of Rs. 28075.2 Cr, QoQ Rs. 26672 Cr, YoY Rs. 26700 Cr

EBIT came at Rs. 5615 Cr (13.8% QoQ, 7.4% YoY) vs expectation of Rs. 5256.9 Cr, QoQ Rs. 4934 Cr, YoY Rs. 5229 Cr

EBIT Margin came at 19.7% vs expectation of 18.7%, QoQ 18.5%, YoY 19.6%

Adj. PAT came at Rs. 4350 Cr vs expectation of Rs. 4124.4 Cr, QoQ Rs. 3834 Cr, YoY Rs. 4096 Cr

Quarter EPS is Rs. 16

Stock is trading at P/E of 26.7x FY24E EPS

Result is ok

Revenue from Operations came at Rs. 272.9 Cr (-1.3% QoQ, -1.4% YoY) vs QoQ Rs. 276.6 Cr, YoY Rs. 276.9 Cr

EBIDTA came at Rs. 39.7 Cr (-8% QoQ, 6.1% YoY) vs QoQ Rs. 43.1 Cr, YoY Rs. 37.4 Cr

EBITDA Margin came at 14.5% vs QoQ 15.6%, YoY 13.5%

Adj. PAT came at Rs. 47.9 Cr vs QoQ Rs. 45.7 Cr, YoY Rs. 49 Cr

Quarter EPS is Rs. 1

Stock is trading at P/E of 11.3x TTM EPS

Result has improved

Revenue from Operations came at Rs. 265 Cr (1.7% QoQ, 19.7% YoY) vs QoQ Rs. 260.6 Cr, YoY Rs. 221.4 Cr

EBIDTA came at Rs. 60.3 Cr (23.6% QoQ, 121.9% YoY) vs QoQ Rs. 48.8 Cr, YoY Rs. 27.2 Cr

EBITDA Margin came at 22.8% vs QoQ 18.7%, YoY 12.3%

Adj. PAT came at Rs. 92 Cr vs QoQ Rs. 71.8 Cr, YoY Rs. 75.3 Cr

Quarter EPS is Rs. 10.8

Stock is trading at P/E of 22.3x FY24E EPS

Outlook – Neutral

Revenue from IT Services business segment to be in the range of $2,615 mn to $2,669 min.This translates to a sequential guidance of -1.5% to +0.5% in cc terms. Management indicates demand environment is overall cautious and clients are looking for efficiency and focusing on investment

Total bookings was at $3.8 billion, up by 0.2% QoQ and large deal bookings was at $0.9 billion. Booked 14 deals this quarter in greater than $30 mn TCV range . Won 4 deals in Europe of $300 mn 

QoQ came at -1.7% , Dollar revenue came at $ 2656.1 Mn,(-2.1% QoQ, -5.3% YoY) at top end of guidance 

On geographical front , America 1 grew (+1.8% QoQ) led by healthcare , America 2 (-1.8% QoQ) continue to see some softness in BFSI & Utility seeing some softness , Europe (-5.2% QoQ), RoW (-5.5% QoQ) 

EBIT Margin came muted at 14.7% despite the furloughs and wage hike which was offset by maximising the revenue performance, saving from structural improvement of pyramids and fixed price productivity and reducing discretionary spend 

Voluntary attrition has continued to moderate QoQ, coming in at 10-quarter low of 12.3% in Q3’24.

Adj. PAT came at Rs. 2694.2 Cr 

Quarter EPS is Rs. 5.2

Stock is trading at P/E of 19.9x FY25E EPS

Result is broadly in-line with expectations

Revenue from Operations came at Rs. 13247.3 Cr (7.6% QoQ, 17.2% YoY) vs expectation of Rs. 13460.5 Cr, QoQ Rs. 12307.7 Cr, YoY Rs. 11304.6 Cr

EBIDTA came at Rs. 1120.9 Cr (11.9% QoQ, 15% YoY) vs expectation of Rs. 1143.3 Cr, QoQ Rs. 1001.8 Cr, YoY Rs. 974.5 Cr

EBITDA Margin came at 8.5% vs expectation of 8.5%, QoQ 8.1%, YoY 8.6%

Adj. PAT came at Rs. 736.8 Cr vs expectation of Rs. 762.3 Cr, QoQ Rs. 658.5 Cr, YoY Rs. 641.1 Cr

Quarter EPS is Rs. 11.3

Stock is trading at P/E of 71.6x FY25E EPS

Result is above expectations

Revenue from Operations came at Rs. 1485.3 Cr (6.2% QoQ, 1.5% YoY) vs expectation of Rs. 1501.7 Cr, QoQ Rs. 1398.3 Cr, YoY Rs. 1463.2 Cr

EBIDTA came at Rs. 254.5 Cr (8.5% QoQ, 55.1% YoY) vs expectation of Rs. 241.4 Cr, QoQ Rs. 234.7 Cr, YoY Rs. 164.1 Cr

EBITDA Margin came at 17.1% vs expectation of 16.1%, QoQ 16.8%, YoY 11.2%

Adj. PAT came at Rs. 144.5 Cr vs expectation of Rs. 122.5 Cr, QoQ Rs. 132.4 Cr, YoY Rs. 100.2 Cr

Quarter EPS is Rs. 3.8

Stock is trading at P/E of 20.6x FY24E EPS

Result has improved

Revenue from Operations came at Rs. 83.2 Cr (8.6% QoQ, 12.1% YoY) vs QoQ Rs. 76.7 Cr, YoY Rs. 74.2 Cr

EBIDTA came at Rs. 16.3 Cr (17.3% QoQ, 6.7% YoY) vs QoQ Rs. 13.9 Cr, YoY Rs. 15.3 Cr

EBITDA Margin came at 19.6% vs QoQ 18.1%, YoY 20.6%

Adj. PAT came at Rs. 6.2 Cr vs QoQ Rs. 5.7 Cr, YoY Rs. 5 Cr

Quarter EPS is Rs. 2.7

Stock is trading at P/E of 84.4x TTM EPS

“The business registered its highest ever quarterly pro forma revenue in Q3FY24, largely in line with our estimates. A good festival season, new model launches, new brands/outlets and improving supplies have contributed to this performance. 

Total Revenue from operations stood at Rs 13010mn vs 12040mn, registering a growth of 8.06% YoY (+ 16.16% QoQ).

New vehicle sales for the quarter stood at Rs 10510mn vs 9970mn, growth of 5.4% YoY, (+20.1% QoQ). After sales service revenue stood at Rs 2240mn vs 1920mn, registering a strong growth of 16.7% YoY, (6.2% QoQ).

PreOwned vehicle sales registered a robust growth of 73.3% to Rs 260mn vs 150mn YoY.

In an environment of rising inventory level in the Auto retail business, Landmark has been able to meaningfully reduce its inventory.”

“Mcap: Rs33.39bn; CMP: Rs2538; TP: Rs2550; Rating: BUY

What happened: Board of Directors have approved the issuance of bonus shares in the ratio 1:1. This move shall increase the number of equity shares to 26.3mn, thereby increasing the equity share capital to Rs263mn.

Record Date: 28 February, 2024

Est. Date of Credit to Demat Account: 15 March, 2024

Our View: 

~ This surely is a positive step towards returns to shareholders and increasing liquidity in the stock.

~ Expecting strong Q3FY24 numbers: Revenue Rs5.29bn; +21%yoy, +4% qoq. PAT Rs467mn; +46%yoy, +7%qoq. EPS: Rs35.5.

~ We continue to remain positive on FIEM due to multiple factors like recovery of the 2W industry, increase in penetration of LED lightings, EV ramp up, Gogoro opportunity - diversification into MCU, ECU and strive to enter the 4W industry.”

Net up nearly 3 times; announces 1:1 bonus

Total Revenue of Rs. 209.8 Cr v/s. Rs. 98.4 Cr [up113%] (Y-o-Y comparison) 

EBITDA of Rs.69.2 Cr v/s. Rs. 26.3 Cr [up163%)

EBITDA Margins of 33% v/s 27% 

PAT of Rs. 40.3 Cr v/s. Rs. 13.9 Cr [up190%) 

PAT Margins of 19% v/s 14% 

Revenue contribution of 59% Stock Broking, 30% Advisory and 11% NBFC

Highlights

Number of Demat Accounts stood at 807K, a growth of 26% YoY

-AUM for stock broking stood at Rs. 336 Bn, a staggering growth of 63% YoY

-AUM for mutual funds stood at Rs. 486.4 Cr, surge 34% YoY 

-Insurance premium generated Rs. 51.2 Cr, an increase of 433% YoY 

-Number of policies sold stood at 10,378, a surge of 174% YoY 

-Total Loan book for NBFC segment at the end of Q3 FY24 stood at Rs. 468.4 Cr 

-Retail Loan Book for Q3 FY24 stood at Rs. 268 Cr

-Net Non-Performing assets (NNPA) as on 31st Dec, 2023 is 1.05%

-Advisory segment Order book stood at Rs. 620 Cr, increase of 80% YoY

Proposed Bonus Issue of Equity Shares in the ratio of 1:1 i.e., 1 Equity Shares of Rs. 10/- each for every 1 Equity Share of Rs. 10/- each held by the shareholders of the Company as on the Record Date will be announced later

The newly launched steel rebar contract logged in a turnover of ₹77 lakh in the first half of inaugural trade on the country’s largest commodity exchange MCX.

The exchange launched three contracts expiring on February 29, March 28 and April 30.

The trading unit of the steel rebar contract is five tonne while the quotation (base value) is one tonne. The price quotation is ex-Warehouse at Raipur district, Chhattisgarh (excludes only GST) and maximum order size is 200 tonne.

Jio Financial Services Ltd on Monday reported a 56 per cent decline in consolidated net profit to ₹294 crore for the third quarter ended December 2023 compared to the previous quarter.

The company had earned a consolidated net profit of ₹668 crore in the second quarter of the current fiscal, Jio Financial Services said in a regulatory filing.

Its revenue too moderated to ₹414 crore from ₹608.04 crore in the September quarter.

For the nine months ended December, the company’s net profit stood at ₹1,294 crore, the filing said.

Turnover: (NSE + BSE)

Cash Volume: 38117897 + 9669.52 Total: 38127566.52

F&O Volume: 523210.4 + 6705777.95 Total: 7228988.35

Provisional Cash Rs. In Crs.

FII/FPI: NET BUY: 1,085.72

(12,196.34 - 11,110.62) 

DII: NET SELL: -820.69

(10,881.64 - 11,702.33)

12.30 U.K. Claimant Count Change (Expected: 18.1K versus Previous: 16.0K)

19.00 U.S. Empire State Manufacturing Index (Expected: -4.9 versus Previous: -14.5)

20.30 U.K. BOE Gov Bailey Speaks

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Interactive Brokers Group, Inc. (Post market) (Sector- Financial)

Pinnacle Financial Partners, Inc. (Post market) (Sector- Financial)

Asian equities fell Tuesday following declines in European stocks and bonds as European Central Bank officials tamped down rapid rate cut expectations.

Australian and Japanese shares slipped, while contracts for US equities edged lower after a Monday holiday. Treasuries declined in their first trading session since Friday as Australian and New Zealand sovereign bonds also joined the selloff. 

The region-wide Euro Stoxx 50 traded lower in Europe on Monday, partly weighed down by a contraction in German gross domestic product in the fourth quarter, although Europe’s largest economy managed to avoid recession.

Elsewhere, oil prices were steady after a Monday retreat, even as tensions in the Red Sea endured. Houthi militants hit a US-owned commercial vessel with a ballistic missile on Monday, underscoring the risks facing one of the world’s most important trade routes. West Texas Intermediate traded just below $73 a barrel, while Brent crude was above $78. (Bloomberg)