Share Market Highlights 09 May 2024: Sensex plunges over 1,000 pts; Nifty ends below 22k; L&T slides over 5%

Benchmark equity indices Sensex and Nifty tumbled about 1.5 per cent on Thursday amid heavy foreign fund outflows and selling in HDFC Bank, Larsen & Toubro and Reliance Industries.

Declining for the third day running, the BSE Sensex dropped 1,062.22 points or 1.45 per cent to settle at 72,404.17. During the day, it tanked 1,132.21 points or 1.54 per cent to 72,334.18.

The NSE Nifty dived 345 points or 1.55 per cent to 21,957.50. During the day, it tumbled 370.1 points or 1.65 per cent to 21,932.40.

Target: ₹4,047

CMP: ₹3,291.30

Prabhudas Lilladher

We revise our FY25/26E EPS estimates by -3.6/+5.2 per cent factoring in lower expected core margins in FY25 but increased execution in FY26. Larsen & Toubro (L&T) reported consolidated revenue growth of 15 per cent y-o-y, while EBITDA margin contracted by 93bps y-o-y due to higher SG&A costs. NWC to sales improved to 12 per cent (vs 16.1 per cent in FY23) owing to better collections, with FY25 guidance given at around 15 per cent.

Target: ₹490

CMP: ₹413.65

JM Financial

Tata Power reported Q4-FY24 net consol revenue of ₹15,840 crore (+27 per cent y-o-y, +5% JMFe) and EBITDA of ₹2,700 crore(+23 per cent y-o-y, +3 per cent JMFe) led by higher sales across Odisha discoms and capacity addition in renewables. Reported PAT/ Adj. PAT came in at ₹1,040 crore(+11 per cent y-o-y, +25 per cent JMFe)/₹890 crore (+15 per cent y-o-y, +7 per cent JMFe) due to sale of subsidiaries and JVs.

The rupee consolidated in a narrow range and settled for the day on a flat note, higher by 2 paise at 83.50 (provisional) against the US dollar on Thursday, on weak domestic markets and a strong American currency.

Forex traders said massive foreign fund outflows dented investors’ sentiments.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.49, and touched an intraday high of 83.44. The local unit finally settled for the day at 83.50 (provisional), higher by 2 paise over its previous close.

Infosys has announced a three-year partnership with the ABB FIA Formula E World Championship, the global motorsport championship for electric cars, as its official Digital Innovation Partner. Through this collaboration, Infosys will provide in-race analytics, unlock fan engagement experiences, and enhance sustainability reporting and tracking for the Formula E championship. 

Infosys stock closed at ₹1,434.15 on the NSE, up 0.48%.

Siyaram Silk Mills has received redemption amount of ₹17 crore on early redemption of 17,00,000, 9% cumulative redeemable preference shares of ₹100 each from Balkrishna Paper Mills Limited, a group company.

Aadhar Housing Finance IPO has been subscribed 1.24 times as of 3.09 pm on May 9, 2024. The QIB portion has been subscribed 1.95 times, NII 1.34 times, retail 0.79 times, and those reserved for employees 3.09 times. The issue closes tomorrow.

Indian Overseas Bank has reported a 24% rise in net profit at ₹808 crore for the quarter ended March 31, 2024 when compared with ₹650 crore in the year-ago quarter. For FY24, its net profit grew to ₹2656 crore from ₹2099 crore in FY23. Its asset quality continues to improve as gross NPA declined to 3.10% in the March 2024 quarter from 7.44% in the March 2023 quarter and 3.90% in the December 2024 quarter. Net NPA remained below 1% (at 0.57%) in Q4FY24

TBO Tek IPO has been subscribed 2.96 times as of 309 pm on May 9, 2024. The QIB portion has been subscribed 0.14 times, NII 5.24 times, retail 7.94 times, and those reserved for employees 5.51 times. The issue closes tomorrow.

Escorts Kubota board has recommended final dividend of ₹18 per equity share.

The company reported its consolidated net profit at ₹251.89 crore as against ₹216.46 crore in the corresponding quarter last year.

Stock trades at ₹3,455.20 on the NSE, down by 2.35%

Major gainers:

Hero Motocorp (3.38%), Tata Motors (1.74%), M&M (1.48%), SBI (1.07%), Infosys (1.06%)

Major losers:

L&T (-6%), Asian Paints (-4.67%), BPCL (-4.26%), Coal India (-4.20%), ONGC (-3.83%)

Stocks advanced on BSE at 3 pm on May 9, 2024, were 914 against 2,870 stocks that declined; 120 stocks remain unchanged. Total stocks traded were 3,904. The number of stocks that recorded a 52-week high was 155, and those that hit a 52-week low was 39. 

In addition, 346 stocks traded in lower circuit, while 207 hit the upper circuit.

Orient Electric board has recommended final dividend of ₹0.75 per equity share.

Company reported its net profit for the quarter ended March 2024 at ₹12.80 crore as against ₹24.62 crore in the corresponding quarter previous year.

Stock tanks 5.77% on the NSE, trading at ₹216.50

Smartlink Holdings reported its consolidated net profit for the quarter ended March 2024 at ₹868.31 crore as against ₹180.36 crore in the corresponding quarter previous year.

Stock rallies 19.98% on the NSE, trading at ₹230.25.

Hindustan Petroleum Corporation’s consolidated net profit for the quarter ended March 2024 was at ₹2,709.31 crore as against ₹3,608.32 crore in the corresponding quarter last year.

Stock falls 2.71% on the NSE, trading at ₹509.

SBI reported its consolidated net profit for the March 2024 quarter at ₹21,736.47 crore as against ₹18,343.25 crore in the corresponding quarter last year.

SBI has today hit a lifetime high on the NSE at ₹839.65. Currently trades at ₹829.60 on the NSE, up 2.32%.

K Krithivasan, chief executive officer (CEO) and managing director of Tata Consultancy Services (TCS), took home a salary of ₹25.4 crore from India’s largest information technology services firm in financial year 2023-24 (FY24).

Capri Global Capital reported a 36 per cent increase in its profit for Q4 FY24 at ₹279.4 crore compared to ₹204.6 crore during the corresponding quarter last year.

Read more here.

Indian Renewable Energy Development Agency Ltd has incorporated a wholly-owned subsidiary in the International Financial Services Centre (IFSC), GIFT City, Gujarat.

IREDA stock declines 2.11% on the NSE, trading at ₹167.30.

Lead futures on the Multi Commodity Exchange (MCX) is on an uptrend since early April as it found support at ₹180. On Wednesday, it closed at ₹193.50. Read more

Rane (Madras) reported a consolidated net loss for the quarter ended March 2024 at ₹9.37 crore, as against ₹9.54 net profit in the corresponding quarter last year.

Stock tanks 6.79% on the NSE, trading at ₹802.95.

Sakar Healthcare Ltd Oncology (anti-cancer) unit has entered into agreement with overseas partners covering Europe, South& Central America, Asia Pacific, and Africa.

Stock surges 5.93% on the NSE, trading at ₹357.

Capri Global Capital Ltd declines 2.89% on the NSE, trading at ₹226.50. The board has recommended final dividend of ₹0.15 per equity share. The company’s consolidated net profit was at ₹82.58 crore for the quarter ended March 2024, as against ₹64.89 crore in the March 2023 quarter.

Major gainers: Hero Motocorp (3.99%), M&M (2.64%), Tata Motors (2.60%), Bajaj Auto (1.63%), HCL Tech (1.39%)

Major losers: L&T (-5.15%), Divi’s Lab (-2.99%), Tata Consumer (-2.16%), Coal India (-2.10%), ONGC (-1.95%)

A total of 1,181 stocks advanced on the BSE at 12.08 pm on May 9, 2024, against 2,410 stocks that declined; 157 stocks remained unchanged. The total stocks traded were 3,748. The number of stocks that recorded a 52-week high was 137, and those that hit a 52-week low was 30. 

In addition, 254 stocks traded in the lower circuit, while 186 hit the upper circuit.

Debock Industries has announced the resignation of Nishu Goyal as Chief Financial Officer of the company w.e.f. May 08, 2024.

Airtel expands its network footprint in Sabarkantha District. The telecom operator onboarded 2.5 million 5G customers in North East and Assam.

Stock trades at ₹1,285.55 on the NSE, down by 0.24%.

Zydus has received final approval from USFDA for Dapsone Gel, 7.5%. Zydus Lifesciences stock trades at ₹1,003 on the NSE, down 0.26%.

Larsen & Toubro has elevated R Shankar Raman as President, whole-time director & CFO.

Company’s stock trades at ₹3,315 on the NSE.

Bank Nifty began today’s session on a weak note — it opened at 47,976 versus yesterday’s close of 48,021. It is now hovering around 47,840, down 0.4 per cent at the end of the first hour of trade. Read more

Nifty 50 is trading lower. The index has been getting fresh sellers at higher levels. The index made a high of 22,307 and has come down from there. It is currently trading at 22,197, down 0.48 per cent. Read more

EMS Limited has emerged as the lowest bidder (L-1) in the tender for supply, installation, testing & commissioning of infrastructure on a turnkey basis. The contract is valued at ₹14,810.69 lakh.

EMS stock trades at ₹442.35 on the NSE, down by 0.34%.

Infosys, along with Alliance for an Energy Efficient Economy (AEEE), and the Indian Institute for Human Settlements (IIHS), has launched ‘ASSURE’ (Accelerating Sustainable and Super-efficient Real Estate), to decarbonise the commercial building sector. The programme aims to realise 100 million sq. ft. of high-performance commercial buildings in the country by 2030.

The Infosys stock trades at ₹1,434.85 on the NSE, up 0.53%.

Major gainers: JWL (6.69%), SKF India (6.27%), Campus Activewear (5.40%); Vijaya Diagnostic (4.93%); Paytm (4.90%)

Major losers: Bajaj Consumer Care (-8.96%), Manappuram Finance (-6.61%); Arvind (-5.53%), PEL (-5.49%), Sula Vineyards (-5.36%)

TBO Tek IPO has been subscribed 1.72 times as of 10.45 am on May 9, 2024. The QIB portion has been subscribed 0.01 times, NII 2.91 times, retail 5.03 times, and that reserved for employees 3.54 times. The issue closes tomorrow.

Aadhar Housing Finance IPO has been subscribed 0.61 times as of 10.45 am on May 9, 2024. The QIB portion has been subscribed 0.53 times, NII 0.81 times, retail 0.56 times, and that reserved for employees 2.42 times. The issue closes tomorrow.

Godrej Industries stock declines 1.92% on the NSE, trading at ₹847.50. The company had acquired an additional 14% stake in Godrej One Premises Management Private Ltd, its subsidiary, from Godrej & Boyce Manufacturing Company Ltd, promoter of the company.

State Bank of India (SBI) could report a decline in net profit in the fourth quarter due to lower net interest income growth and absorption of one-time staff expenses even as its asset quality is expected to improve further, according to analyst estimates. Read more

Reliance Industries stock declines 1.13% on the NSE, trading at ₹2,805. The company had acquired a step-down subsidiary engaged in the manufacture of petrochemicals and hydrogen, for ₹314.48 crore.

The Indiabulls Housing Finance board has approved public issue of secured, redeemable NCDs of face value of ₹1,000 each for an amount up to ₹100 crore with an option to retain over-subscription up to ₹100 crore, aggregating up to ₹200 crore, which is within the shelf limit of ₹2,000 crore.

The stock is down 0.44% on the BSE, trading at ₹160.10

EPL Ltd said officers of the Mexican Tax Administration Service (SAT) have carried out search/ seizure action at the plant of one of its step-down subsidiaries, viz. EPL Propack de Mexico, SA de CV (EPL Mexico). The EPL stock trades at ₹192.50 on the NSE, up 1.40%

Indian shares edged lower on Thursday, dragged by losses in construction major Larsen and Toubro (L&T) after a downbeat fiscal 2025 revenue growth outlook, while elevated volatility fuelled investor pessimism. Read more

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“A major trend in the market now is the aggressive selling by FIIs, which has touched to Rs 15863 crores so far this month. Though DIIs are buying they are not as aggressive as they were due to some concerns surrounding election results.

It is important to understand that there is a new factor triggering FII selling, apart from the high US bond yields. This is the outperformance of the Chinese and Hong Kong markets. During the last one month while Nifty is down 1.5% the Shanghai Composite is up by 2.62% and Hang Seng is up by a whopping 8.8%. Chinese and Hong Kong markets are cheap with PEs around 10 while India is expensive with double the PE of these markets.

So long as this outperformance of the Chinese and Hong Kong market continues, FIIs are likely to sell. The weakness in frontline financials is primarily due to FII selling.

For long-term investors, this is an opportunity to buy high quality large caps driven down by FII selling. Previous episodes of FII selling turned out to be good buying opportunities.”

Happiest Minds Inc., wholly-owned subsidiary in the US, has executed an agreement to purchase 100% Membership interest in Aureus Tech Systems LLC for cash consideration of $8.5 million.

Happiest Minds Technologies stock is up 0.10% on the NSE, trading at ₹822.90.

Alembic Pharmaceuticals has received (final/ tentative) USFDA approvals for products - Diazepam Injection USP, 10 mg/2 mL (5 mg/mL), SingleDose Prefilled Syringe; Selexipag Tablets 1,000 mcg and 1,200 mcg; Binimetinib; Tretinoin Cream USP, 0.1%; and Clindamycin Phosphate Topical Gel USP 1%.

Alembic Pharmaceuticals stock inches up 0.12% on the NSE, trading at ₹1,005.05

Major gainers: Hero Motocorp (4.57%); Bajaj Auto (2.17.%); M&M (1.58%); HCL Tech (1.26%); Kotak Bank (0.73%)

Major losers: L&T (-3.64%), BPCL (-1.68%), Dr Reddy’s Lab (-1.06%), HDFC Life (-1.06%); Tata Consumer Product (-0.96%)

Crude oil futures traded higher on Thursday morning as the official data showed a decline in crude oil inventories in the US for the week ending May 3. At 9.18 am on Thursday, July Brent oil futures were at $83.96, up by 0.45 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.45, up by 0.58 per cent. May crude oil futures were trading at ₹6,630 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday morning, against the previous close of ₹6587, up by 0.65 per cent, and June futures were trading at ₹6617 against the previous close of ₹6576, up by 0.62 per cent.

Godrej Agrovet Ltd (GAVL) reported a 187 per cent growth in net profits for the March quarter of FY24 on higher sales of its animal feed and crop protection products. Read more

State Bank of India, Asian Paints, Punjab National Bank, Bharat Petroleum Corp, Hindustan Petroleum Corp, Abbott India, Escorts Kubota, Timken India, Relaxo Footwear, Alembic Pharmaceuticals, Computer Age Management, Intellect Design Arena, Mahanagar Gas, Vardhman Textiles, Alkylamines Chemicals, Quess Corp, Orient Electric, Venus Pipes and Tubes, Hikal, VST Tillers Tractors, and n Overseas Bank.

Earnings Post Market Hours

Tata Power (Consolidated, YoY) 

Revenue up 27.24% at Rs 15,846 crore vs Rs 12,454 crore (Bloomberg estimate Rs 16,009.31 crore). 

Ebitda up 20.96% at Rs 2,332 crore vs Rs 1,928 crore, (Bloomberg estimate Rs 2,787 crore). 

Margin down 76 bps at 14.71% vs 15.47%, (Bloomberg estimate 17.4%). 

Net profit up 11.37% at Rs 1,045 crore vs Rs 938.81 crore (Bloomberg estimate Rs 950 crore).

Board recommends final dividend of Rs 2 per share. 

Larsen & Toubro (Consolidated, YoY) 

Revenue up 15% at Rs 67,079 crore vs Rs 58,335 crore (Bloomberg estimate Rs 65,868 crore). 

Ebitda up 5.9% at Rs 7,234 crore vs Rs 6,833 crore, (Bloomberg estimate Rs 7,157 crore). 

Margin at 10.8% vs 11.7% (Bloomberg estimate 10.9%). 

Net profit up 12.4% at Rs 5,013 crore vs Rs 4,459 crore (Bloomberg estimate Rs. 4018 crore). 

Bajaj Consumer Care (Consolidated, YoY)

Revenue down 3.8% at Rs 240 crore vs Rs 249.4 crore (Bloomberg estimate Rs 244 crore). 

Ebitda down 16.8% at Rs 34.7 crore vs Rs 41.7 crore (Bloomberg estimate Rs 40.87 crore). 

Margin at 14.5% vs 16.7% (Bloomberg estimate 16.7%). 

Net profit down 12.1% at Rs 35.6 crore vs Rs 40.5 crore (Bloomberg estimate Rs 41.54 crore).

Board approves buyback of up to Rs 166 crore. 

Godrej Agrovet (Consolidated, YoY)

Revenue up 1.87% at Rs 2,134 crore vs Rs 2,095 crore (Bloomberg estimate Rs 2,247 crore). 

Ebitda up 98.39% at Rs 148 crore vs Rs 74.61 crore (Bloomberg estimate Rs 138.57 crore).

Margin up 337 bps at 6.93% vs 3.56% (Bloomberg estimate 6.2%). 

Net profit up 178.99% at Rs 65.48 crore vs Rs 23.47 crore (Bloomberg estimate Rs 77.73 crore). 

Board recommended final dividend of Rs 10 per share. 

TVS Motor (Standalone, YoY)

Revenue up 23.68% at Rs 8,169 crore vs Rs 6,604 crore (Bloomberg estimate Rs 7,975 crore). 

EBITDA up 36.25% at Rs 926.18 crore vs Rs 680 crore (Bloomberg estimate Rs 883 crore). 

Margin up 104 bps at 11.33% vs 10.29% (Bloomberg estimate 11.10%). 

Net profit up 18.31% at Rs 485.43 crore vs Rs 410.27 crore (Bloomberg estimate Rs 530.4 crore). 

Board declares interim dividend of Rs 8 per share. 

Kalpataru Projects (Consolidated, YoY)

Revenue up 22.3% at Rs 5,971 crore vs Rs 4,882 crore (Bloomberg estimate Rs 6,098 crore). 

EBITDA up 36.1% at Rs 452 crore vs Rs 332 crore (Bloomberg estimate Rs 541.2 crore). 

Margin at 7.6% vs 6.8% (Bloomberg estimate 8.9%). 

Net profit up 20.7% at Rs 169 crore vs Rs 140 crore (Bloomberg Rs 208 crore). 

Board recommends dividend of Rs 8 per share. 

Sula Vineyards (Consolidated, YoY)

Revenue up 9.74% at Rs 122.52 crore vs Rs 113.38 crore. 

Ebitda down 4.41% at Rs 29.46 crore vs Rs 30.82 crore. 

Margin down 313 bps at 24.04% vs 27.18%. 

Net profit down 4.84% at Rs 13.55 crore vs Rs 14.24 crore. 

Board recommends final dividend of Rs 4.5 per share.

BSE (Consolidated, YoY)

Revenue up 110.36% at Rs 545 crore vs Rs 259 crore.

Ebitda up 19.84%at Rs 152.44 crore vs Rs 127.2 crore. 

Margin down 2113 bps at 27.98% vs 49.11%. 

Net profit up 20.62% at Rs 106.89 crore vs Rs 88.61 crore. 

Gujarat State Petronet (Consolidated, QoQ)

Revenue up 3.24% at Rs 4,532 crore vs Rs 4,389 crore.

Ebitda up 24.17% at Rs 970 crore vs Rs 781 crore. 

Margin up 360 bps at 21.39% vs 17.79%. 

Net profit up 33.63% at Rs 663 crore vs Rs 496.19 crore. 

Kirloskar Oil Engines (Consolidated, YoY)

Revenue up 19.95% at Rs 1,660 crore vs Rs 1,384 crore. 

Ebitda up 59.36% at Rs 302.69 crore vs Rs 189.93 crore. 

Margin up 450 bps at 18.23% vs 13.72%. 

Net profit up 86.04% at Rs 147 crore vs Rs 78.91 crore. 

Board recommends final dividend of Rs 3.5 per share. 

Piramal Enterprises (Consolidated, YoY)

Revenue up 16% at Rs 2,473 crore vs Rs 2,132 crore (Bloomberg estimate Rs 852.55 crore).

Net profit at Rs 137 crore vs loss of Rs 196 crore (Bloomberg estimate Rs 1,013 crore). 

Board recommends final dividend of Rs 10 per share.

SKF (Consolidated, YOY)

Revenue up 9.93% at Rs 1,203 crore vs Rs 1,095 crore (Bloomberg estimate Rs 1123 crore).

Ebitda up 27.8% at Rs 213 crore vs Rs 167 crore (Bloomberg estimate Rs 184 crore).

Margin up 247 bps at 17.72% vs 15.24% (Bloomberg estimate 16.4%).

Net profit up 42.54% at Rs 175.23 crore vs Rs 122.93 crore (Bloomberg estimate Rs 137 crore). 

Home First Finance (Standalone, YoY)

Total income up 37.35% at Rs 317.7 crore vs Rs 231.3 crore.

Net profit up 30.34% at Rs 83.46 crore vs Rs 64.03 crore (Bloomberg estimate Rs 80.98 crore).

Board recommends dividend of Rs 3.4 per share. 

Infra Engineering (Consolidated, YoY)

Revenue up 11.25% at Rs 1,708 crore vs Rs 1,535 crore.

EBITDA up 11.98% at Rs 332.55 crore vs Rs 297 crore.

Margin up 12 bps at 19.46% vs 19.34%. 

Net profit up 11.17% at Rs 190 crore vs Rs 171 crore. 

Vijaya Diagnostic Centre (Consolidated, YoY)

Revenue up 28.3% at Rs 155.2 crore vs Rs 121 crore (Bloomberg estimate Rs 149 crore). 

Ebitda up 28.53% at Rs 63.1 crore vs Rs 49.09 crore (Bloomberg estimate Rs 61 crore).

Margin up 8 bps at 40.65% vs 40.57%, (Bloomberg estimate 40.8%).

Net profit up 21.7% at Rs 33.7 crore vs 27.7 crore (Bloomberg estimate Rs 30.75 crore).

STOCKS TO WATCH

Reliance: The company acquired a 100% stake in Reliance Chemicals for Rs 314.5 crore.

* Bank of Baroda:* The Reserve Bank of India lifts restrictions on the bank’s mobile app, ‘Bob World’. The company resumed onboarding customers in the ‘Bob World’ app.

* Nucleus Software:* The company approved the appointment of Surya Prakash Kanodia as CFO.

* HDFC Life:* IRDAI approved the appointment of Keki M. Mistry as Chairman of the Board.

* NBCC:* The company received an order worth Rs 400 crore from the Supreme Court.

* TVS Supply Chain Solutions:* The company received a business deal for Eicher’s bus facility in Baggad.

RVNL: gets order worth ₹167.3 cr from South Eastern Railway gets order worth ₹167.3 cr from South Eastern Railway

* Wipro:* The company collaborated with Kognitos to deploy Gen-Al-based business automation solutions.

* Juniper Hotels:* The company received a term loan worth 491 crore.

* Godrej Properties:* The company acquired an additional 14% stake in arm Godrej One Premises Management from promoter Godrej and Boyce Manufacturing Company. The company’s stake stands at 28%.

* NTPC:* NTPC Green Energy has signed an MoU with Mahatma Phule Renewable Energy and Infrastructure Technology for developing renewable energy power parks and projects in Maharashtra.

IPO Offering 

Indegene: The public issue was subscribed to 69.91 times on day 3. The bids were led by institutional investors (197.55 times), non-institutional investors (55.07 times), retail investors (7.95 times), and portion reserved for employees (6.48 times). 

TBO Tek: The public issue was subscribed to 1.15 times on day 1. The bids were led by institutional investors (0.01 times), non-institutional investors (2.08 times), retail investors (3.14 times), and portion reserved for Employees e(2.23 times). 

Aadhar Housing Finance: The public issue was subscribed to 0.44 times on day 2. The bids were led by institutional investors (0.33 times), non-institutional investors (0.6 times), retail investors (0.41 times), and portion reserved for employees (2.01 times).

Bulk Deals

Chennai Petroleum Corp: Polunin Emerging Markets Small Cap Fund LLC sold 7.87 lakh shares (0.52%) at Rs 887.16 apiece. 

Block Deals 

Vodafone Idea: Ghisallo Master Fund LP bought 19.04 crore shares (0.39%), Citigroup Global Markets Mauritius sold 19.04 crore shares (0.39%) at Rs 12.27 apiece. 

Pledge Share Details 

Adani Power: Promoter Gautam S. Adani & Rajesh S. Adani (On Behalf of S.B. Adani Family Trust) revoked a pledge for 14.87 crore shares on May 7. 

*Veranda Learning Solutions:*Promoter Kalpathi S Aghoram, Kalpathi S Ganesh, Kalpathi S Suresh created a pledge of 2 lakh shares each between May 2 to May 6. 

Trading Tweaks 

Moved out of short-term ASM framework: Aegis Logistics, Lux Industries.

Moved into short-term ASM framework: Tejas Networks. 

Ex/record dividend: GM Breweries. 

Ex/record AGM: GM Breweries.

F&O BAN

1\ABFRL

2\BALRAMCHIN

3\BIOCON

4\CANBK

5\GMRINFRA

6\IDEA

7\9PEL

8\PNB

9\SAIL

10\ZEEL

CLSA on L&T

Buy Call, Target Cut To Rs 4,151

FY25 Guidance Drives Rise In Inflows & Execution; Lower Margin

Key Positive In FY24 Was A Big Beat To Order Inflows Guidance

Key Positives In FY24 Were Driving New Orders Up 39% YoY & Robust Core Execution Up 27% YoY

Co Has An Improving Outlook

Co Has $146 Bn Pipeline, Up 24% YoY Despite Likely Slowdown In West Asia Capex

Bernstein on L&T

Outperform Call, Target Rs 3,800

Margin Guidance Turned Out To Be Lower Than Expectations

On Order Inflow Though Guidance Is Better

Order Inflow Guidance At 10% For FY25 Vs Expectation Of Flattish Orders

See Risks To Guidance Given Elections And West Asia Uncertainty

Q4 - Broadly In-line

Order Inflow Saw A Slight Dip YoY But Very Strong Working Capital Position Was Key Highlight

CITI on L&T

Buy, TP Rs 4396

Reported not only a strong 4Q but also gave healthy FY25 guidance

NWC surprised hugely positively by falling to 12% of revenue from 16% in FY23.

Not unduly concerned by flat margin guidance.

CLSA on Tata Power

Sell Call, Target Rs 297

Weak Q4 Led By Net Long Coal Position & Weak RE IPP Profitability

NFE Business Was A Mixed Bag

Quality Of Co’s Results Remains Challenging, With A One-off Dividend Supporting PAT

Remains Expensive At A 35x CL25 PE

GS on Tata Power

Sell, TP Rs 240

Q4 adj PAT marginally behind GSe, but missed consensus est. by c.47%, as coal biz profitability continued to contract & Mundra could not offset this as imposition of Section 11 has broken hedge

@c.35x FY26E P/E, risk-reward unfavorable

Nomura on Defense

$138 Bn Opportunity Over FY24-32

Initiate Buy Call On HAL And BEL

HAL – Buy Call, Target Rs 4,750

Co’s Strong Moat In Fighter Aircraft & Helicopters, Gives Basis For Dvpt Of Indigenous Engine Program

Significant Capability Upgrade Provides Basis For Development Of Indigenous Engine Program

Initiate Buy On BEL , Target Rs300/Sh

For Co’s Increased Visibility On Order Inflows, Conviction On Margin Delivery

For Co’s Increased Visibility On Order Inflows, Conviction On Expansion In Returns Ratios

Jefferies on PEL

Underperform, Target Rs 785

Q4 Core Loss Was Rs1,660 Cr, Well Below Our Rs200 Cr Est Due To Lower NII & Large Provision

Reported PAT Was Higher At Rs140 Cr Due To Multiple One-off Gains

Growth In Retail Loans Stays Strong, While It Continues To Unwind Legacy Wholesale Book

Cut FY25-26 EPS Estimates

Low-Interest Earning Assets, High Opex & Provision Should Cap RoA/RoE Below 1%/4% Over FY25-26

Nomura on Guj Gas

Reduce Call, Target Rs 450

Q4 Below Est Impacted By Lower-than-anticipated Margin

EoI Aims To Enable Volume Recovery, But Margin At Increasing Risk

Management Reiterated Volume Growth Guidance Of 10% YoY, Noting Volatility In Gas Demand

Bernstein on TVS Motor

Market Perform Call, Target Rs 2,050

Q4 Results Were Primarily On Expected Lines, With Volume Growth Being The Key Driver

EBIT Margin Slid A Bit In Q4

EBIT Margin is An Area Where Co Lags Peers Materially, Presenting Room For A Catch-up

Co Remains A Preferred Stock And Stacks Up After Bajaj Auto In Our Pecking Order

Jefferies on TVS Motor

Buy Call, Target Rs 2,525

Q4 EBITDA And Recurring PAT Grew 36-43% YoY To New Highs, And Were In-line With Est

EBITDA Margin Rose 10 bps QoQ To 11.3% While EBITDA/Vehicle Was Up 4% QoQ

Believe Co Will Be Key Beneficiary Of 2-W Demand Revival In Domestic & Export Mkts

An Improving Franchise Also Provides Headroom For Further Margin Expansion

Co’s EPS Has More Than Trebled In Last Three Years

Expect EPS To More Than Double In Next Three Years

CLSA on TVS Motor

Sell, TP Rs 1444

Q4 rev 1.6% higher than est., driven by a higher realisation due to a rich product mix.

However, EPS was 10% below est. primarily due to a loss of Rs470m from investments in other income

Ebitda margin continues to improve

Jefferies on Hero MotoCorp

Buy Call, Target Rs 5,650

Q4 EBITDA Grew 25% YoY & 4% Above Est

EBITDA/Vehicle Rose 5% QoQ To A New High

Continue To Like Co As We Believe 2-W Is Poised For Double-digit Growth Over Next 3 Yrs

Co’s Market Share Decline In 2-Ws

Adverse Demand Profile Shifts Are Concerns

Any Success In Premium Bikes, Scooters And EVs Can Enhance Growth

See 17% EPS CAGR Over FY24-26

CLSA on Hero MotoCorp

Outperform Call, Target Rs 5,280

Q4 Above Estimates Due To A Higher ASP Driven By A Rich Product Mix

Q4 Above Estimates Due To Reduction In Raw Material Costs

Reduction In Raw Material Costs Led To An 89 bps Improvement In Gross Margin QoQ

EBITDA Margin For Petrol 2-wheeler Segment Stood At 15.6%

The EV Business Dragged The Margin Down By 130 bps In Q4

Management Guides To Double-digit Revenue Growth

Jefferies on Bharat Forge

Underperform Call, Target Raised To Rs 1,075

Q4 Cons EBITDA Rose 37% YoY But Was 10% Below Est On Weak Performance Of Arms

Co’s Defense Biz Is Scaling Well & Co Expects Overseas Businesses To Turnaround In FY25

While Like Co’s Structural Initiatives, Remain Concerned On Cyclical Headwinds In Exports

Remain Concerned On Rich Valuations

Raise FY25-26 EPS By 2-3%

CLSA on Bharat Forge

Sell, TP Rs 1038

Consol. Ebitda below est, mainly dragged by subs

Its defense & aerospace biz continues to scale up well, but co losing market share in its domestic auto biz 

Defense exports could be lumpy; ascribing a high multiple not prudent

Route – Tender 

Buyback Price: 290

Current Market Price: 260.55/-

Market Cap: Rs 3,720 Crores

Buyback Size: ₹ 166.49 Crs (Representing 19.25 % and 20.00 % of the total paid up equity share capital and free reserves)

Buyback Size: 57,41,000 shares (Representing 4.02 % of O/s. shares)

Retail Quota: 8,61,150 Shares

Buyback Record Date: Not Yet Announced

The initial public offering (IPO) of Aadhar Housing Finance was subscribed 0.43 times or 43 per cent on day 1 of issue opening on Wednesday. The IPO comes at a price band of ₹300-315. IPO closes on May 10 and the market lot is 47 shares. Read more

Stock markets are expected open on a flat to positive note Thursday despite positive global cues. Gift Nifty at 22,395 signals a flat opening, as Nifty May futures closed at 22,393 on Wednesday. For the fifth time in the history of NSE, Nifty on Wednesday closed dead flat at 22,302.50 (Zero point change). Read more

Nomura on HAL: Initiate Buy on Company, raise target price at Rs 4750/sh (Positive) 

Nomura on BEL: Initiate Buy on Company, raise target price at Rs 300/sh (Positive) 

Emkay on Hero Motocorp: Maintain Buy on Company, raise target price at Rs 6000/sh (Positive) 

Jefferies on Hero Motocorp: Maintain Buy on Company, target price at Rs 5650/sh (Positive) 

BofA on Hero Motocorp: Maintain Buy on Company, target price at Rs 5400/sh (Positive) 

Citi on Hero Motocorp: Maintain Buy on Company, target price at Rs 5500/sh (Positive) 

Citi on Larsen: Maintain Buy on Company, target price at Rs 4396/sh (Positive) 

Jefferies on TVS Motors: Maintain Buy on Company, target price at Rs 2525/Sh (Positive) 

Citi on Voltas: Maintain Buy on Company, raise target price at Rs 1628/sh (Positive) 

Citi on IGL: Maintain Buy on Company, target price at Rs 550/Sh (Positive) 

CLSA on HCL Tech: Maintain Buy on Company, target price at Rs 1524/sh (Positive) 

Citi on TVS Motors: Maintain Sell on Company, target price at Rs 1550/Sh (Neutral) 

GS on TVS Motors: Maintain Neutral on Company, target price at Rs 2250/Sh (Neutral) 

Bernstein on TVS Motors: Maintain Market perform on Company, target price at Rs 2050/sh (Neutral) 

CLSA on TCS: Maintain Underperform on Company, target price at Rs 3868/sh (Neutral) 

CLSA on Bharat Forge: Maintain Underperform on Company, target price at Rs 1075/sh (Neutral) 

Citi on Bharat Forge: Maintain Sell on Company, raise target price at Rs 850/sh (Neutral) 

Jefferies on Bharat Forge: Maintain Underperform on Company, raise target price at Rs 785/sh (Neutral) 

Jefferies on BSE: Maintain Hold on Company, target price at Rs 3100/Sh (Neutral) 

Nuvama on GSPL: Maintain Hold on Company, target price at Rs 288/Sh (Neutral) 

Nuvama on KEC: Maintain Hold on Company, target price at Rs 829/Sh (Neutral) 

Emkay on IGL: Maintain Reduce on Company, target price at Rs 440/Sh (Neutral) 

Nomura on Gujarat Gas: Maintain Reduce on Company, target price at Rs 450/Sh (Neutral) 

CLSA on Hero Motocorp: Maintain Outperform on Company, target price at Rs 5280/sh (Neutral) 

CLSA on Tata Power: Maintain Sell on Company, target price at Rs 297/sh (Neutral) 

CLSA on Larsen: Maintain Buy on Company, cut target price at Rs 4151/sh (Neutral) 

Bernstein on Larsen: Maintain Outperform on Company, target price at Rs 3800/sh (Neutral) 

Kotak on Larsen: Maintain Sell on Company, cut target price at Rs 3000/sh (Neutral)

The ₹1,550.80-crore initial public offering of travel distribution platform company TBO Tek that opened on Wednesday was subscribed fully on Day 1 itself, thanks to retail investors and non-institutional investors. The issue closes on May 10. The IPO comes with a price band of ₹875-920, and market lot of 16 shares. Read more

Ex-Dividend 10 May 2024 (Tomorrow)

Last date for Cum-Dividend Today

Aptech Ltd.

Dividend Per Share Rs.4.5

Previous day Closing Price – Rs. 234

Dcb Bank Limited

Dividend Per Share Rs.1.25

Previous day Closing Price – Rs. 132.65

Gujarat Intrux Ltd.

Dividend Per Share Rs.7

Previous day Closing Price – Rs. 381.55

Hdfc Bank Ltd

Dividend Per Share Rs.19.5

Previous day Closing Price – Rs. 1482.2

Bank Of Maharashtra

Dividend Per Share Rs.1.4

Previous day Closing Price – Rs. 65.93

Ramkrishna Forgings Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 705.15

Transformers And Rectifiers (India) Ltd.

Dividend Per Share Rs.0.2

Previous day Closing Price – Rs. 604.65

Uco Bank

Dividend Per Share Rs.0.28

Previous day Closing Price – Rs. 53.33

Abbott India Ltd., ADF Foods Ltd., Ajmera Realty & Infra India Ltd., Alkyl Amines Chemicals Ltd., Alps Industries Ltd., Alembic Pharmaceuticals Ltd., Asian Paints Ltd., Asi Industries Ltd., Balgopal Commercial Ltd., Bharat Petroleum Corporation Ltd., Computer Age Management Services Ltd., Capital Small Finance Bank Ltd., CARE Ratings Ltd., Citadel Realty And Developers Ltd., DIC India Ltd., Dynavision Ltd., Escorts Kubota Ltd., Fervent Synergies Ltd., Grand Foundry Ltd., Gopal Snacks Ltd., Gujarat Inject (Kerala) Ltd., Genomic Valley Biotech Ltd., Heads UP Ventures Ltd., Hikal Ltd., Hindustan Petroleum Corporation Ltd., ID Info Business Services Ltd., Integra Capital Ltd., Intellect Design Arena Ltd., Indian Overseas Bank, I-Power Solutions India Ltd., Kennametal India Ltd., Madhusudan Industries Ltd., Maral Overseas Ltd., Medico Remedies Ltd., Mahanagar Gas Ltd., Mid East Portfolio Management Ltd., Nila Spaces Ltd., Nitin Spinners Ltd., Oil Country Tubular Ltd., Orient Electric Ltd., PIL Italica Lifestyle Ltd., Punjab National Bank, Quess Corp Ltd., Rain Industries Ltd., Rajvi Logitrade Ltd., Relaxo Footwears Ltd., Rane (Madras) Ltd., Rushil Decor Ltd., Sagar Soya Products Ltd., Sar Auto Products Ltd., Sat Industries Ltd., State Bank Of India, Shanthi Gears Ltd., Share India Securities Ltd., Smartlink Holdings Ltd., Shree Precoated Steels Ltd., Stovec Industries Ltd., Suryoday Small Finance Bank Ltd., Sutlej Textiles & Industries Ltd., Timken India Ltd., Trishakti Industries Ltd., Tvs Electronics Ltd., Tvs Holdings Ltd., Vakrangee Limited, Venus Pipes & Tubes Ltd., Vikas WSP Ltd., V. S. T. Tillers Tractors Ltd., Vardhman Textiles Ltd., Walchand Peoplefirst Ltd.

Synopsis:

The domestic jewellery industry is expected to record muted volume growth in FY25 due to a steep rise in gold prices in recent months, the evolving macroeconomic scenario and the likelihood of high volatility in prices.

The branded jewellery retailers are, however, expected to record healthy revenue growth of 20-22% on a YoY basis in FY2025, with projected volume growth of around 5% YoY, led by aggressive store additions, changing consumer preferences, continued rise in gold prices and steady wedding and festive demand due to the strong cultural affinity of Indians to gold.

CareEdge Ratings’ sample of 8 large jewellery retailers, which account for ~50% of the organised jewellery retail industry by revenue, aggressively expanded their retail footprint in FY2024 with an estimated addition of around 260 stores (~22% of the store count as on March 31, 2023). CareEdge Ratings expects the jewellers to continue the store addition momentum over the medium term to capitalise on industry-wide tailwinds.

While revenue growth of jewellery retailers is expected to remain healthy, their profitability is projected to moderate in the near term due to front-loaded operating expenses on new stores, higher advertising to drive store footfalls and increased discounting. The steep rise in gold prices in recent months could lead to a temporary liquidity squeeze from margin calls on gold metal loan funding. Nevertheless, the overall credit metrics of organised jewellers are likely to remain comfortable with projected median interest cover above 4.0 times and median Net TOL/TNW below 1.5 times in FY2025 for CareEdge Ratings’ sample.

Average gold prices rose by ~14% on a YoY basis in FY2024 with a steep uptick in price volatility in H2 FY24 owing to economic uncertainties fuelled by global geopolitical tensions and evolving macroeconomic scenario. The recent escalation of conflicts in the Middle East region coupled with speculations around the likelihood of a reversal in the interest rate cycle by central banks will likely keep gold prices on tenterhooks in the near term.

* ABFRL

* BALRAMCHIN

* BIOCON

* CANBANK

* GMRINFRA

* PEL

* PNB

* VODAFONE IDEA

* SAIL

* ZEEL

Weekly Update – Strong domestic demand uplifts HRC prices…

§ Indian benchmark HRC prices increased 0.6% WoW to Rs 54,200/t. Spot spreads increased 2.8% WoW to Rs 25,318/t led by increase in HRC and decrease in coking coal prices for the week.

§ Chinese and European HRC prices increased 0.9% and 0.8% WoW to USD 545/t and USD 600/t respectively. Spot spreads for the two geographies improved 5% and 4% WoW respectively to USD 154/t and USD 209/t as coking coal prices declined.

§ Iron ore prices increased 1.1% WoW to USD 119/t while coking coal prices declined 2.45% WoW to USD 238/t.

§ Alumina prices have inched up ~9% over the last two weeks. This significant increase in prices is led by slow production resumptions at local alumina refineries as well as bauxite mines in China.

§ As anticipated, domestic steel players have announced an increase in list prices of HRC, HR-Plates and CRC by ~Rs1,500/t for May; aided by stable RM prices and maintenance shutdowns. Long product prices are inching up since April which started this ferrous rally; and would aid 2QFY25 margins. We expect some more price hikes in coming weeks, especially in Longs. Domestic demand is holding up despite hiccups (~9% in April) which is supporting pricing. Amidst muted external environment and gradual Chinese recovery, prefer players with higher volume growth. Top picks: JSTL, JDSL and HNDL.

Arvind

Rating: BUY

Target Price : INR 436

Upside : 21%

CMP : INR 360 (as on 07 May 2024)

Volume improves, higher margin sustains

Revenue in line with our estimates

Arvind (ARVND IN) Q4 revenue was largely in line with our estimates. Higher textile margin, robust denim & garment volume, and 20.9% growth in the advanced material business (AMD) were key positives. Revenue increased 10.3% YoY, hit by price deflation while volume grew in denim, garment and AMD businesses. Textiles revenue was up 5.1% YoY. Denim and garment volume rose 17.3% YoY and 34.3% YoY, respectively, due to good demand momentum. We expect a revenue CAGR of 16.1% during FY24-26E, with demand likely to improve in garment and AMD businesses.

Route Mobile Ltd (Route Mobile), a global player in Communications Platform as a Service (CPaaS), has now become a part of the Proximus Group, a provider of digital services and communication solutions operating in Belgium and international markets, through a strategic acquisition by the latter.

In July 2023, Proximus Group signed a definitive agreement with the founding shareholders of Route Mobile to acquire 57.56%1 of Route Mobile through Proximus Opal2 for INR 59,244 million (EUR 643.0 million3) cash consideration, which corresponds to a price per share of INR 1,626.404. Some of the founding shareholders of Route Mobile subsequently committed to reinvest EUR 299.6 million in Proximus Opal, resulting in a stake of 12.72%, expected to be completed in the next few weeks.

Lack of any near-term trigger drives rating downgrade to REDUCE

Emkay Global

TARGET PRICE (Rs) : 875

We are downgrading WESTLIFE to REDUCE (from Buy), due to lack of near-term triggers and ~7% run-up over the last 1M. Q4 results were weak, with 5% SSG decline and 330bps fall in EBITDA margin. In our view, earnings de-growth is expected to continue in H1FY25 as mis-information around the brand still persists. Though we like Westlife’s aggression in store expansion (45-50 in FY25 vs. 40 in FY24), its digital traction, cost optimization, and thrust on drive-throughs, we keep our guard up due to its muted near-term SSG and need for higher marketing spends. We cut FY25E/26E EBITDA by 13%/4% on near-term challenges and downgrade our rating to REDUCE (from Buy) with revised down TP of Rs875/share (33x FY26E EBITDA). Faster SSG recovery remains a potential upside.

Higher costs cause EBITDA miss; outlines 3Y growth vision

Emkay Global

TARGET PRICE (Rs) : 1,320

Kajaria’s Q4FY24 operational performance was a mixed bag – though revenue came broadly in-line, higher than expected costs led to a miss on PAT. Overall sales grew 3% YoY (8% QoQ) to Rs12.4bn, mainly led by volume growth of 6% YoY (9% QoQ). Realizations were under pressure, down 5%/1% YoY/QoQ to Rs369/sqm, probably owing to a challenging demand environment and higher trade discounts to dealers. EBITDA margins contracted by 74bps YoY/166bps QoQ to 13.9%, with absolute EBITDA declining 2% YoY to Rs1.7bn (Emkay: Rs1.9bn). Management has outlined growth strategies aimed at achieving 12% CAGR in total sales by FY27, thus reaching Rs65bn, while targeting EBITDA margin of 15-17%. Factoring-in the recent performance, we trim our EBITDA by 5-6% for FY25-26E. We maintain ADD on the stock, with revised TP of Rs1,320/share (earlier TP: Rs1,450), based on FY26E 37x P/E.

Palatable offering; initiate with BUY

Emkay Global

TARGET PRICE (Rs) : 650

We initiate coverage on Bikaji Foods International (Bikaji) with a BUY and Mar-25E TP of Rs650/sh (25% upside), on 48x P/E. An enhanced brand image and better pack-mix place Bikaji at an advantage to leverage the swiftly evolving Indian savory snacks story (mkt size: Rs1.4trn as of FY22) set for double-digit growth. We build-in mid-teens sales growth, likely to elevate further, backed by Company’s distribution drive across core & focus markets. Bikaji has built capacity in the Frozen Foods space, which is not only fast gaining acceptance in India but holds opportunities to enhance exports too. With scale, Bikaji is likely to meet its aspirations, gaining access to India’s QSR segment. Given Bikaji’s better sales mix, operating leverage, and cost efficiency, we see its margin (ex PLI) rising by 220bps, thus aiding ~32% earnings CAGR over FY24-26E.

https://play.google.com/store/apps/details?id=com.intelegain.rb

Conference call Replay available in Various speeds !

Researchbytes Events Update

As of 07:11 AM Thursday 09 May 2024

Can set alert for them at www.researchbytes.com 

9:00 AM India Shelter F

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IGL : (replay)

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TVS Motor : (replay)

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Sun Life Financial Inc. (Post market) (Sector - Finance)

Mettler-Toledo International, Inc. (Post market) (Sector - Healthcare)

Wheaton Precious Metals Corp. (Post market) (Sector - Metal)

Pembina Pipeline Corp. (Post market) (Sector - Energy)

Credicorp Ltd. (Post market) (Sector - Finance)

Akamai Technologies, Inc. (Post market) (Sector - Technology)

RB Global, Inc. (Post market) (Sector - Logistics)

Gen Digital Inc. (Post market) (Sector – Technology) 

Insulet Corporation(Post market) (Sector - Healthcare) 

Natera, Inc.(Post market) (Sector - Healthcare)

Brookfield Corporation(Pre market) (Sector - Finance)

Constellation Energy Corporation (Pre market) (Sector - Energy) 

Takeda Pharmaceutical Company Limited (Pre market) (Sector - Pharma)

Telefonica SA(Pre market) (Sector - Technology)

Roblox Corporation (Pre market) (Sector - Technology)

Warner Bros. Discovery, Inc. (Pre market) (Sector - Media)

Royalty Pharma plc(Pre market) (Sector - Healthcare)

Hyatt Hotels Corporation(Pre market) (Sector - Hospitality)

EPAM Systems, Inc. (Pre market) (Sector - Technology)

Viatris Inc. (Pre market) (Sector - Healthcare)

US Foods Holding Corp(Pre market) (Sector –FMCG)

Evergy, Inc.(Pre market) (Sector –Power)

Charles River Laboratories International, Inc. (Pre market) (Sector - Pharma)

*UWM Holdings Corporation *(Pre market) (Sector - Finance)

Honda Motor Company, Ltd.(TENT) (Sector - Auto)

*Shinhan Financial Group Co Ltd *(TENT) (Sector - Finance)

BeiGene, Ltd. (TENT) (Sector - Healthcare)

TENT CHINA Trade Balance (Expected: 81.4B versus Previous: 56.8B)

16:30 U.K. BOE Monetary Policy (Expected: 5.25% versus Previous: 5.25%)

17:00 U.K. BOE Gov Bailey Speaks

18:00 U.S. Unemployment Claims (Expected: 211K versus Previous: 208K)

Bharat Forge Ltd. | CMP Rs. 1230 | M Cap Rs. 57267 Cr | 52 W H/L 1330/748

(Nirmal Bang Retail Research)

Result is marginally above expectations

Revenue from Operations came at Rs. 2328.6 Cr (2.9% QoQ, 16.6% YoY) vs expectation of Rs. 2311.4 Cr, QoQ Rs. 2263.4 Cr, YoY Rs. 1997.3 Cr

EBIDTA came at Rs. 659.2 Cr (-0.6% QoQ, 35.1% YoY) vs expectation of Rs. 647 Cr, QoQ Rs. 663.2 Cr, YoY Rs. 487.9 Cr

EBITDA Margin came at 28.3% vs expectation of 28%, QoQ 29.3%, YoY 24.4%

Adj. PAT came at Rs. 403 Cr vs expectation of Rs. 371.7 Cr, QoQ Rs. 377.8 Cr, YoY Rs. 285.4 Cr

Quarter EPS is Rs. 8.7

Stock is trading at P/E of 35.2x FY25E EPS

Balaji Amines Ltd. | CMP Rs. 2327 | M Cap Rs. 7540 Cr | 52 W H/L 2736/1873

(Nirmal Bang Retail Research)

Result is above expectations

Revenue from Operations came at Rs. 413.9 Cr (8% QoQ, -12.2% YoY) vs expectation of Rs. 401.2 Cr, QoQ Rs. 383.4 Cr, YoY Rs. 471.4 Cr

EBIDTA came at Rs. 97.7 Cr (31.7% QoQ, 4.9% YoY) vs expectation of Rs. 86.7 Cr, QoQ Rs. 74.2 Cr, YoY Rs. 93.1 Cr

EBITDA Margin came at 23.6% vs expectation of 21.6%, QoQ 19.4%, YoY 19.8%

Adj. PAT came at Rs. 68 Cr vs expectation of Rs. 67.5 Cr, QoQ Rs. 49.4 Cr, YoY Rs. 47.4 Cr

Quarter EPS is Rs. 21

Stock is trading at P/E of 36.8x TTM EPS

Mcap: Rs 45.67bn; CMP: 542 | TP - 740 | Upside-33%

Topline largely in line, operating performance miss

Sula Vineyards Ltd reported a revenue growth of 8.2% YoY to Rs.1,225mn.

Gross margins for the quarter stood at 80% vis-à-vis 79.1% YoY, However, OPM for the quarter declined by 320bps YoY to 24% largely on account of an increase in other expenses (+29% YoY) and selling and distribution expenses (+12.3% YoY). EBITDA for the quarter stood at Rs.295mn, a decline of 4% YoY.

PAT for the quarter stood at Rs. 136mn a decline of 5% YoY.

Outlook

The company reported revenue growth largely in line with our estimates, however a sharp increase in other expenses and selling and distribution costs impacted overall profitability. We continue to hold a positive view on the stock and will reassess post the company’s earnings call at 4.00pm

Tata Power Company Ltd.: Net Revenue at Rs. 15846.6 crore, +27.2% YoY, and+8.2% QoQ. EBITDA at Rs. 2331.8 crore, +4.6% YoY and -10.6% QoQ. EBITDA Margin at 14.7%, -319 bps YoY and -308 bps QoQ. Net Profit at Rs. 1045.6 crore, +11.4% YoY and -2.8% QoQ. Ashika

Canara Bank: NII at Rs. 9580.2 crore, +11.2% YoY and +1.7% QoQ. Net Profit at Rs. 3757.2 crore, +18.3% YoY and +2.8% QoQ. GNPA at 4.23x, Vs 5.35x YoY and 4.39x QoQ. NNPA at 1.27x, Vs 1.73x YoY and 1.32x QoQ.

TVS Motor Company Ltd.: Net Revenue at Rs. 10042.5 crore, +25% YoY, and-0.7% QoQ. EBITDA at Rs. 1485.0 crore, +40.9% YoY and -0.2% QoQ. EBITDA Margin at 14.8%, +166 bps YoY and +7 bps QoQ. Net Profit at Rs. 411.5 crore, +22.6% YoY and -19.2% QoQ. Ashika

Hero MotoCorp Ltd.: Net Revenue at Rs. 9616.7 crore, +14% YoY, and-1.7% QoQ. EBITDA at Rs. 1393.6 crore, +24% YoY and +0.6% QoQ. EBITDA Margin at 14.5%, +116 bps YoY and +34 bps QoQ. Net Profit at Rs. 943.5 crore, +16.4% YoY and -13.5% QoQ.

Bharat Forge Ltd.: Net Revenue at Rs. 4164.2 crore, +14.7% YoY, and+7.7% QoQ. EBITDA at Rs. 643.3 crore, +46.7% YoY and -7.8% QoQ. EBITDA Margin at 15.4%, +337 bps YoY and -260 bps QoQ. Net Profit at Rs. 227.1 crore, +77.8% YoY and -10.7% QoQ.

Piramal Enterprises Ltd.: NII at Rs. 1306.2 crore, +14.5% YoY and -4.9% QoQ. Net Profit at Rs. 137.1 crore, Rs. -195.9 crore YoY and Rs. -2377.6 crore QoQ.

Kirloskar Oil Engines Ltd.: Net Revenue at Rs. 1660.0 crore, +20% YoY, and+19.4% QoQ. EBITDA at Rs. 302.7 crore, +61% YoY and +17.9% QoQ. EBITDA Margin at 18.2%, +465 bps YoY and -23 bps QoQ. Net Profit at Rs. 146.8 crore, +86% YoY and +64.2% QoQ.

Westlife Foodworld Ltd: Net Revenue at Rs. 562.3 crore, +1.1% YoY, and-6.3% QoQ. EBITDA at Rs. 74.9 crore, -15.5% YoY and -18.6% QoQ. EBITDA Margin at 13.3%, -261 bps YoY and -200 bps QoQ. Net Profit at Rs. 0.8 crore, Rs. 20.1 crore YoY, Rs. 17.2 crore QoQ. 

Godrej Agrovet Ltd.: Net Revenue at Rs. 2134.3 crore, +1.9% YoY, and-9% QoQ. EBITDA at Rs. 148.0 crore, +98.4% YoY and -7% QoQ. EBITDA Margin at 6.9%, +337 bps YoY and +15 bps QoQ. Net Profit at Rs. 65.5 crore, +179% YoY and -21.1% QoQ.

Balaji Amines Ltd.: Net Revenue at Rs. 413.9 crore, -12.2% YoY, and+8% QoQ. EBITDA at Rs. 97.7 crore, +4.9% YoY and +31.7% QoQ. EBITDA Margin at 23.6%, +385 bps YoY and +425 bps QoQ. Net Profit at Rs. 72.5 crore, +31.3% YoY and +30% QoQ.

Vijaya Diagnostic Centre Ltd.: Net Revenue at Rs. 155.2 crore, +28.3% YoY, and+17% QoQ. EBITDA at Rs. 63.1 crore, +28.5% YoY and +20.7% QoQ. EBITDA Margin at 40.7%, +8 bps YoY and +124 bps QoQ. Net Profit at Rs. 33.7 crore, +21.5% YoY and +29.5% QoQ.

Sterlite Technologies Ltd.: Net Revenue at Rs. 1140.0 crore, -39.1% YoY, and-13.8% QoQ. EBITDA at Rs. 53.0 crore, -79.3% YoY and -41.1% QoQ. EBITDA Margin at 4.6%, -903 bps YoY and -216 bps QoQ. Net Profit at Rs. -83.0 crore, Rs. 80.0 crore YoY, Rs. -51.0 crore QoQ. 

Bajaj Consumer Care Ltd.: Net Revenue at Rs. 240.0 crore, -3.8% YoY, and+0.3% QoQ. EBITDA at Rs. 34.7 crore, -16.7% YoY and -3.7% QoQ. EBITDA Margin at 14.5%, -225 bps YoY and -61 bps QoQ. Net Profit at Rs. 35.6 crore, -12.1% YoY and -2.1% QoQ.

Greaves Cotton Ltd.: Net Revenue at Rs. 672.5 crore, -18.7% YoY, and+1.1% QoQ. EBITDA at Rs. 23.7 crore, -51.5% YoY and -32.9% QoQ. EBITDA Margin at 3.5%, -239 bps YoY and -178 bps QoQ. Net Profit at Rs. -13.4 crore, Rs. 27.2 crore YoY, Rs. 45.6 crore QoQ.

Automobile Corporation of Goa Ltd.: Net Revenue at Rs. 169.4 crore, +23.3% YoY, and+21.1% QoQ. EBITDA at Rs. 10.9 crore, +19% YoY and -3% QoQ. EBITDA Margin at 6.4%, -24 bps YoY and -160 bps QoQ. Net Profit at Rs. 10.9 crore, +41.2% YoY and +11.6% QoQ. 

$138 billion opportunity over FY24-32F

Nomura initiate coverage with Buy ratings on: (1) Hindustan Aeronautics (28% potential upside), for its strong moat in fighter aircraft and helicopters, and significant capability upgrade that provides basis for development of indigenous engine program; and (2) Bharat Electronics (32% potential upside), for its increased visibility on order inflows, conviction on margins delivery and expansion in returns ratios.

https://play.google.com/store/apps/details?id=com.intelegain.rb

Recent Interview...

As of 17:11 PM Wednesday 08 May 2024

Aadhar Housing Finance: Rishi Anand, MD & CEO

RoE Can Move To 17% And AUM Growth Of 20% Is Reasonable: Aadhar Housing Finance

https://www.youtube.com/watch?v=NEAuYW5Yn_4

Arvind SmartSpaces: Kamal Singal, CEO

Arvind SmartSpaces: Q4 Profit Soars YoY, Expansion Plans & More | Kamal Singal

https://www.youtube.com/watch?v=_uiAR7wOYMM

Bharat Forge: Baba Kalyani, CMD

Received $500 M Of Export Contracts In The Last 3 Months: Bharat Forge

https://www.youtube.com/watch?v=3_6nynkWK4o

Bharat Forge: Baba Kalyani, CMD

Amit Kalyani Of Bharat Forge Gives Overview Of Q4 Results And Expected Trajectory Of FY25

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

Chambal Fert: Abhay Baijal, MD

Will Continue To Remain Net Cash Despite The New TAN Project: Chambal Fertilisers

https://www.youtube.com/watch?v=E2jrghXcJGw

Jupiter Wagons: Vivek Lohia, Managing Director

Targetting Revenue Of ?2,000-3,000 Crore In The Wheels Business: Jupiter Wagons

https://www.youtube.com/watch?v=0ciHRa5bCB0

CreditAccess Gr: U K Hebbar, MD&CEO

CreditAccess Grameen: Hike In Credit Costs Are Precautionary, Cost Of Borrowings To Remain Stable

https://www.youtube.com/watch?v=8ZM1gL2nBQQ

Dr Reddys Labs: Erez Israeli, CEO

Q4 A Meaningful Quarter For Co When It Came To Revlimid Generic: Dr. Reddy’s

https://www.youtube.com/watch?v=afEN1o7IBbk

IGL: Kamal Kishore Chatiwal, MD

Planning To Setup 15-16 Bio Gas Plants In NCR Region: IGL

https://www.youtube.com/watch?v=1JZwi4e2AkE

IRB Infra: Anil Yadav, CFO Director

IRB Infra News: Big Order In Gujarat, Toll Hike Expected In June, Earnings To Grow!

https://www.youtube.com/watch?v=XD3fjZ841zs

Events today…

https://www.researchbytes.com/Default.aspx?cc=event

Results today…

https://www.researchbytes.com/Default.aspx?cc=result

Replays available at www.researchbytes.com

Fund Flow Activity:

08 May 2024 (In Crs.)

Turnover : (NSE + BSE)

Cash Volume: 98921.64 + 6315.8 Total : 105237.44

F&O Volume: 418979.26 + 370299.86 Total : 789279.12

Provisional Cash Rs.

FII/FPI: NET SELL: -6669.1 

(11984.54 - 18653.64) 

DII: NET BUY: +5928.81 

(15333.26 - 9404.45)

Closing Bell:

* Sensex: 73466.39(-45.46)

* Nifty 50: 22302.50

* Nifty bank: 48021.10(-264.25)

Nifty top 5 Gainers: 

* Heromoto: 4,613.90(+137.15)

* BPCL : 620.30(+ 16.00)

* Tata Motors: 1,012.10 (+23.55)

* Power Grid Corp: 302.00 (+6.75)

* Hindalco: 633.50 (+13.30)

Nifty top 5 losers:

* Dr.reddy: 6,056.35 (-201.25)

* Asian Paints: 2,843.30 (-69.70 )

* Grasim: 2,377.35 (-43.65)

* UltraTechCement: 9,519.40 (-163.00)

* SBI Life Insura: 1,426.75 (-23.40)

Mahanagar Gas’s stock, after hitting a record high of ₹1,579 in early March, lost momentum and has been exhibiting weakness on the chart. While no threat has appeared until now for the long-term uptrend, the recent price action hints at a corrective decline. Read more

TVS Motor Company, a leading two- and three-wheeler maker, proposes a capex of about ₹1,000 crore in FY25 and will introduce a new range of two- and three-wheelers (both in ICE and battery segments), starting with the launch of multiple variants of its electric scooter iQube. Read more

Century Plyboards, a market leader in India’s wood products industry, is planning to export its MDF products to West Asia and South-East Asia from this financial year. Read more