Share Market Highlights 25 January 2024: Sensex drops 360 pts, Nifty settles below 21,400; IT stocks lead the decline amidst disappointing results

Benchmark stock indices Sensex and Nifty declined on Thursday due to selling in IT stocks and continuous foreign fund outflows.

The 30-share BSE Sensex declined 359.64 points or 0.51 per cent to settle at 70,700.67. During the day, it plunged 741.27 points or 1.04 per cent to 70,319.04.

The Nifty fell by 101.35 points or 0.47 per cent to 21,352.60.

The rupee rose 1 paisa in a range-bound trade to close at 83.11 (provisional) against the US dollar on Thursday, as the support from weak American currency overseas was negated by rising crude oil prices.

Vinod Nair, Head of Research, Geojit Financial Services.

“The benchmark indices closed on a negative note taking cues from the global market as the positive upside coming from the US economy delayed the optimism of a rate cut. FIIs are in a selling mode as the yields on US benchmark bonds rise. The broader market is unable to hold gains as the concerns of high valuations, subpar results, and persisting geopolitical tension in the Middle East, followed by an F&O expiry, are weighing down the market.”

Aditya Vision Ltd has opened three showrooms, two in Uttar Pradesh (Mau and Gorakhpur), and one in Patna.

Central Bank of India has entered into a distributorship Agreement with Motilal Oswal Asset Management Company Ltd for distribution of their mutual fund Products.

The bank’s stock traded at ₹54.30 on the NSE, down by 1%.

The BSE Sensex fell 359.64 pts or 0.51% to close at 70,700.67. The NSE Nifty declined 101.35 pts or 0.47% to 21,352.60. 

Aided by lower provisioning for bad loans and better operating performance, Punjab National Bank (PNB) on Thursday reported a 253 per cent increase in standalone net profit for the third quarter ended December 31, 2023 at ₹2,223 crore against ₹629 crore during the same period in previous financial year.

PNB’s stock advanced ₹3.60 or 3.52 per cent to ₹105.80 on NSE. 

Crompton Greaves Consumer Electricals has launched a Visualine product of the 80w Linear Under Canopy category in the domestic market.

The stock traded at ₹305.15 on the NSE, down by 0.83%.

JSW Steel reported its standalone net profit for the quarter ended December 2023 at ₹2,416 crore as against ₹1,234 crore in December 2022 quarter.

The company’s stock trades at ₹812.75 on the NSE, up by 0.07%.

Competition Law amended to provide regulatory certainty and trust-based business environment: Ravneet Kaur, Chairperson, CCI

‘Settlement and commitment’ framework will reduce litigation and expedite anti-trust enforcement process – Chairperson, CCI

Not One-size-fits-all - regulatory interventions in technological markets, require nuanced assessments: Chairperson, CCI

The Competition (Amendment) Act, 2023, introduces several critical reforms and this Act incorporates global best practices and addresses contemporary challenges, ensuring that markets remain fair, competitive, and innovative, said Smt. Ravneet Kaur, Chairperson, Competition Commission of India while delivering the keynote address at the Inaugural session at the Annual Conference on Competition Law and Practice jointly hosted by CII and Competition Commission of India (CCI). She stated that the Competition Law has been amended to provide regulatory certainty and a trust-based business environment. She highlighted that the introduction of ‘settlement and commitment’ framework will reduce litigation, expedite anti-trust enforcement process, enable quicker market corrections and foster a more efficient and less adversarial legal environment. Speaking about introduction of Leniency Plus regime, she mentioned that Leniency Plus is a proactive enforcement strategy aimed at attracting leniency applications.

Hon’ble Chairperson, CCI mentioned that there are path breaking reforms introduced in the merger control regime through the amendments, which will go a long way in timely disposal of notified transactions facilitating ease of doing business. She informed that presently, regulations are being firmed up for operationalizing the legislative reforms introduced through the recent amendments in the competition law. She affirmed that CCI is committed to inclusive and transparent governance, particularly in the formulation of regulations. She also spoke about competition challenges posed on account of the rapid digitalization of economy. A one-size-fits-all approach does not work and regulatory interventions in technological markets require nuanced assessments, which are grounded in facts and supported by the market and technology in question, she observed.

In her address at the inaugural session, Ms Zia Mody, Chairperson, CII National Committee on Regulatory Affairs & Founder and Senior Partner, AZB & Partners emphasized the growing significance of competition law compliance in India. Ms. Mody praised the CCI’s proactive role. She highlighted the CCI’s transparency in the consultation process for the Competition (Amendment) Act, 2023 and its regulations, involving stakeholders through open online feedback. Ms. Mody commended the CCI’s focus on advocacy efforts, citing numerous programs, workshops, conferences, and market studies conducted. Reflecting on 2023 as a transformative year for the CCI, Ms. Mody discussed the new Commission composition, including the first full-time woman Chairperson. Addressing the conference agenda, she promised meaningful discussions on competition law issues. Ms. Mody elucidated key changes introduced by the Amendment Act, such as the Deal Value Threshold, post-facto filing for on-market purchases, and commitment/settlement mechanisms. She urged strategic planning for the commitments/ settlements processes due to short timelines. Ms. Mody also touched upon jurisprudential developments and invited active participation in sessions to enhance collective understanding of the regulatory landscape.

Mr John Khiangte, Executive Director, Global Public Policy, Disney Star India stated that India has set an ambitious target of achieving a 30 trillion USD economy by 2047. Meeting this goal requires robust economic reforms that reinforce free-market principles and eliminate counterproductive policy interventions. Upholding these principles is integral to our competition law and policy, as competition fosters economic growth and development by efficiently allocating resources through market dynamics. Aligning with these principles is crucial for realizing India’s aspiration.

While delivering his welcome remarks, Dr K Nandakumar, Chairman, CII Maharashtra State Council & Chairman & Managing Director, Chemtrols Industries Pvt. Ltd. gave an outline of the various recent developments that took place in competition law space in India including passing of the Competition (Amendment) Act, 2023 and its key features. He also highlighted the constructive role being played by CCI in regulating markets in India is in sync with the growth of the Indian economy and its socio-economic policies.

Zomato Payments Private Limited, a wholly-owned subsidiary of Zomato Ltd, has obtained authorisation certificate from RBI to operate as an Online Payment Aggregator w.e.f. January 24, 2024.

Zomato stock trades at ₹136.10 on the NSE, down by 0.07%

Quick Heal Technologies Limited’s Lalit Mohan Sanagavarapu has been appointed as Chief Product Officer and Ajit Zanjad has been appointed as Vice President Head of delivery of the Company with effect from January 24, 2024. 

The company’s stock trades at ₹461.80 on the BSE, down by 2.40%.

B & A Ltd has closed the deal with Dhaneswari Wood Products Limited (DWPL) to acquire its Moheema Tea Estate, situated at Golaghat, Assam. The process of acquisition has been completed and the said garden has been handed over to the Company by DWPL. 

B & A stock trades at ₹424 on the BSE, up by 0.95%.

Privi Speciality Chemicals reported its standalone net profit for the quarter ended December 2023 at ₹31.95 crore as against ₹2.55 crore in December 2022 quarter. 

The stock rose by 3.66% on the NSE, trading at ₹1,241.40.

Timken India announced the appointment of Shesh M Kumar as Head of Marketing with effect from February 1, 2024; and Sudharsan G as the Head of Production with effect from February 1, 2024.

Timken India stock trades at ₹3,303 on the BSE, down by 1.28%.

Bajaj Auto (5.25%); NTPC (1.78%); Coal India (1.67%); Adani Ports (1.66%); IndusInd (0.97%)

Major losers:

Tech Mahindra (-6.18%); Cipla (-3.47%); Bharti Airel (-2.70%); LTI Mindtree (-2.70%); Axis Bank (-2.58%)

Total stocks traded were 3,880. The number of stocks that recorded a 52-week high was 338, and those that hit a 52-week low was 17.

Godawari Power and Ispat Ltd has successfully concluded Pubic Hearing at the proposed project site for setting up greenfield Integrated Steel Plant at Village : Sarora, Tehsil : Tilda, District Raipur Chhattisgarh. 

Godawari Power stock rose by 2.82% on the BSE, trading at ₹736.05.

· Prominent investors, NAV Capital VCC – NAV Capital Emerging Star Fund and LC Radiance Fund VCC participated in the anchor book subscription

· Company raises ₹5.78 crore from the sale of 8.26 lakh equity shares with a face value of ₹10 at ₹ 70 per share

· Fonebox Retail intends to utilise net proceeds from IPO to expand its retail store network, for general corporate purposes and public issue expenses

· Issue opens today, January 25, 2024 and closes on January 30, 2024

· Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and KFIN Technologies Limited is the registrar to the issue

Fitch Ratings has affirmed India-based Summit Digitel Infrastructure Limited’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB-’. The Outlook is Stable. Fitch has also affirmed Summit’s senior secured debt rating and the rating of its USD500 million senior secured bond at ‘BBB-’.

We believe the proposed acquisition of American Tower Corporation’s (AMT, BBB+/Negative) Indian subsidiary (AMT India) by Data Infrastructure Trust (Data Trust), Summit’s 100% parent, in a potentially partly debt-funded transaction is credit neutral for Summit’s ratings. We continue to assess the relationship between Data Trust and Summit as “weak parent, stronger subsidiary with insulated legal ring-fencing”, under Fitch’s Parent and Subsidiary Linkage Rating Criteria.

Indiabulls Housing Finance’s subsidiary Indiabulls Commercial Credit Limited (ICCL) has received the no objection letter (NOC) from the RBI for the proposed change in its name to “Sammaan Finance Limited”. 

Indiabulls Housing Finance stock rose by 4.75% on the NSE, trading at ₹197.50.

Zydus Lifesciences. stock trades at ₹734.65 on the NSE, down by 2.36%.

Elecon Engineering Company Ltd reported its unaudited financial results for Q3 FY24, revealing a consolidated revenue surge to ₹474 crore, reflecting a 22 per cent year-on-year growth. The Industrial Gear division contributed significantly, with a Q3 FY24 revenue of ₹409 crore and an EBIT margin of 27 per cent.

The shares of Elecon Engineering were down by 0.076 per cent to ₹1,058.10 at 2:34 pm on BSE

The stock trades at ₹688.20 on the NSE, down by 1.07%.

Aaron Industries informed that the construction of new manufacturing unit at Surat, Gujarat, is currently under process and there will be a delay in the completion of construction of the new manufacturing Unit (Unit-3). It is expected to be completed by May 2024.

The stock trades at ₹276 on the NSE, down by 0.93%.

ACC stock surged by 5.50% on the NSE, trading at ₹2,363.80.

The stock declined by 1.33% on the NSE, trading at ₹573.

Dev Labtech Venture, a lab grown diamond manufacturer, is planning to invest ₹102 crore for capacity expansion of eco-friendly lab grown diamonds.

The diamonds manufactured in the plant will have a wide range of applications in semi-conductor plates (electrical, mechanical, thermal and optical), cutting tools blades and laser machines.

Hindustan Petroleum reported its standalone net profit at ₹529.02 crore in the quarter ended December 2023 as against ₹172.45 crore in December 2022 quarter.

Hindustan Petroleum has declared interim dividend of ₹15 per equity share.

The stock declined by 3.22% on the NSE, trading at ₹438.

Prudent Corporate Advisory Services reported its standalone net profit for the quarter ended December 2023 at ₹26.60 crore as against ₹20.16 crore in December 2022 quarter. 

The company’s stock rose by 2.62% on the NSE, trading at ₹1,238.

Rainbow Children’s Medicare Limited has inaugurated a new 90 beds spoke hospital located at Sarjapur, Bengaluru, Karnataka.

Rainbow Children’s Medicare stock trades at ₹1,219.05 on the BSE, down by 0.36%.

Sharp India Ltd has appointed Jaideep Palsule as Chief Financial Officer of the Company with effect from January 25, 2024.

Elecon Engineering Company reported its standalone net profit at ₹102.31 crore for the quarter ended December 2023 as against ₹63.43 crore in the December 2022 quarter. 

Company’s stock surged by 5.46% on the NSE, trading at ₹1,116.90. The stock had hit its 52-week high today at ₹1,119.35.

Ujjivan posted numbers for 3QFY24 which were in below our expectations. The PAT came in at Rs3,001mn, showing an increase of +2.3%/-8.4% YoY/QoQ vs. our expectations of Rs3,436mn. NII at Rs8.6bn, (+23% YoY /+4.4% QoQ) was exactly in line with our estimates. NIMs (calc) for the quarter came in at 10.7% a sequential dip of ~30bps. Therefore, Bank reported decent performance on NII front but higher opex (CTI for the quarter was sequentially higher at 56.2% vs. 52.2% in 2QFY24) led to disappointment. Resultantly, PPOP came at Rs4.6bn (+17.6% YoY/-5.4% QoQ). Credit cost came in sequentially at elevated levels (1.01% vs. 0.79% in 2QFY24). We marginally revise our earnings estimate downwards for FY24/FY25 to factor in above factors and maintain BUY with a revised TP of Rs64 (earlier TP of 65).

Tech Mahindra (-6.05%)

L&T Technology Services (-2.49%)

HCL Tech (-2.33%)

Mphasis (-2.13%)

LT Foods reported its standalone net profit for the quarter ended December 2023 at ₹41.16 crore as against ₹31.94 crore in December 2022 quarter. 

The stock declined by 2.47% on the NSE, trading at ₹199.40.

Sterlite Technologies announced its financial results for the quarter ended December 2023. The company reported ₹1,322 crore in revenues for the quarter and an order book of ₹9,849 crore across its three business units Optical Networking, Global Services, and Digital. 

The company’s stock trades at ₹136.65 on the NSE, down by 4.37%.

D B Corp reported its standalone net profit for the quarter ended December 2023 at ₹122.89 crore as against ₹47.43 crore in December 2022 quarter. 

The company’s stock surged by 3.18% on the NSE, trading at ₹364.90.

Nandani Creation Ltd (NCL) has announced the opening of its new brand outlet in Sri Ganganagar, Rajasthan. The proposed store is spread over 900 sq ft and will offer the collection of women’s wear brands “Jaipur Kurti” & “Amaiva- by Jaipur Kurti”.

Nandani Creation stock trades at ₹70.70 on the NSE, down by 1.81%.

Swaraj Engines reported its net profit for the quarter ended December 2023 at ₹24.10 crore as against ₹23.23 crore in December 2022. 

The stock declines by 1.45% on the NSE, trading at ₹2,305.70.

Malu Paper Mills (19.98%)

Oswal Agro Mills (19.97%)

Balkrishna Paper Mills (19.95%)

Urja Global (19.95%)

Rajshree Sugars & Chemicals (19.94%)

Major gainers on the NSE at noon

Bajaj Auto (3.81%); NTPC (1.78%); Coal India (1.54%); BPCL (1.02%); IndusInd (0.65%)

Major losers:

Tech Mahindra (-5.64%); Adani Enterprises (-2.74%); Cipla (-2.66%); SBI Life (-2.50%); Axis Bank (-2.29%)

Stocks advanced on BSE at 12 noon on January 25, 2024, were 2,054 against 1,602 stocks that declined; 137 stocks remain unchanged. Total stocks traded were 3,793. The number of stocks that recorded a 52-week high was 292, and those that hit a 52-week low was 12.

​Kalpataru Projects International​ yesterday initiated payment of penalty amount of ₹41,580 under protest for releasing vehicle which was detained by the GST Authority, in contradiction with the provisions of law. The Company will file necessary appeal against such actions by GST Authority, it said in a regulatory filing.

KPIL stock rose by 1.36% on the NSE, trading at ₹747.35.

Ashok Leyland (₹171): Hold the futures long for now. But have a stop-loss at ₹167. Here’s an analysis of the stock.

Ashok Leyland’s share price has declined since the beginning of the current year. 

Top losers of Nifty Bank stocks:

• AU Small Finance Bank (-3.15%)
• Axis Bank (-2.06%)
• HDFC Bank (-1.60%)

Mphasis Ltd has featured in the top quartile across several global industry rankings and assessments in ESG in FY 22-23. 

Mphasis stock trades at ₹2,499.60 on the NSE, down by 2.58%.

Bajaj Auto stock rose by 3.62% on the NSE, trading at ₹7,473.75 after announcing financial results for the period ended December 31, 2023. 

The stock had hit its 52-week high on the NSE today at ₹7,499.

Titagarh Rail Systems Limited’s shares were up by 1.95 per cent after the company along with Amber Group reported an alliance. 

The collaboration involves a joint investment of up to ₹240 crore in a special purpose vehicle (SPV), where TRSL and Amber Group’s subsidiary, Sidwal Refrigeration Industries Pvt Limited, will acquire equal control.

Glenmark Pharmaceuticals stock rose by 1.25% on the NSE, trading at ₹901.35 after its sudisiary Glenmark Specialty S.A. (GSSA signed a license agreement for KN035 (Envafolimab).

Major gainers on the BSE at 11 am:

SCI (11.34%); RITES (10.54%); IFCI (10%); PTC (8.76%); Metro Brand (7.46%)

Major losers:

Laurus Labs (-8.31%); KPI Tech (-6.96%); Aarti Drugs (-5.63%); Tech Mahindra (-5.46%); DCB Bank (-5.35%)

Nifty 50 began today’s session flat at 21,454.60 versus yesterday’s close of 21,453.95. The index is now hovering around 21,375, down 0.35 per cent after the first hour of trade.

In line with the bearish inclination, the advance/decline ratio of Nifty 50 stands at 17/33. 

EKI Energy Services Limited has signed a Memorandum of Understanding (MoU) with African holdings company, Jospong Group of Companies Ltd. 

EKI Energy stock rose by 1.15% on the BSE, trading at ₹414.

Bank Nifty opened almost flat today at 45,057.95 as against yesterday’s close of 45,082.40. The index is now hovering around 44,680, down 0.9 per cent.

The advance/decline ratio gives it a bearish bias as it stands at 4/8. IndusInd Bank, up 1 per cent, is the top gainer whereas AU Small Finance Bank, down 3 per cent, is the top loser.

The Indian stock market started the day with a gap-down opening, showing a decrease of approximately half a percent.

As we approach today’s monthly expiry, it’s expected that the Nifty may encounter resistance at higher levels, particularly with the 21600 Call strike holding significant open interest. On the downside, support is expected from Put writers at 21300 and 21400 levels.

In the previous session, Bank Nifty staged a recovery from lower levels, although the session was marked by volatility, attributed to selling pressure observed in specific private banks. Looking ahead, 45500 is poised to act as an immediate obstacle, while buying interest is expected to materialize around the 44700 levels on the downside.

Healthy energy demand & rising thermal PLF to necessitate an incremental thermal capacity by 2030, despite the planned renewable capacity addition: ICRA

ICRA projects the all-India thermal plant load factor (PLF) to continue to improve to 69.0% in FY2025 from about 68.0% projected for FY2024, led by the growth in electricity demand and limited thermal capacity addition. ICRA’s outlook for the thermal power segment is Stable, supported by the healthy improvement in the thermal PLF, coupled with the reduction in dues from state distribution utilities (discoms) following the implementation of the Late Payment Surcharge (LPS) scheme since August 2022. The rating agency projects the demand growth to moderate to 5.5-6.0% in FY2025 from the 7.0-7.5% projected for FY2024 and slightly trails its expectation for the GDP growth for that fiscal (6.2%).

Equirus, a leading financial services firm, proudly announces the launch of the Equirus InnovateX Fund (EIF), a US$25 million investment vehicle dedicated to supporting seed-stage tech companies. Equirus InnovateX Fund aims to nurture visionary entrepreneurs and empower them to build ground-breaking solutions that will shape the future of various industries. Key investment themes for EIF include Software as a Service (SaaS), Deep Tech, Fintech, and other emerging sectors, with a primary focus on business-to-business (B2B) themes. The US$500,000 to US$1 million fund will be invested in 15-20 companies showcasing proven track record of sustainable business models, strong monetization strategies with capabilities of solving critical problems in large addressable markets.

NeoGrowth lists first Foreign Currency bond (FCB) at India International Exchange (IFSC), Gift City

· The listing the first Foreign Currency Bond (FCB) for Euro 3.5 million (approx. INR 32 Crore) from Developing World Markets (“DWM”).

· This also makes NeoGrowth, the first issuer to leverage the unified depository at GIFT City - India International depository IFSC Ltd. for issuance of the first ISIN for a FCB bond from GIFT IFSC.

· NeoGrowth will allocate the funds for advancing its onward lending initiatives to support its MSME portfolio customers.

Mastek stock rose by 2.12% on the NSE, trading at ₹2,741.70. The company had announced collaboration with Microsoft.

Mahindra & Mahindra has received an order from Excise and Taxation Officer – Cum- Designated Officer Mohali imposing a penalty of ₹10,000 w.r.t VAT assessment for the period 2016-17 under the Punjab VAT Act, 2005. 

M&M stock trades at ₹1616.35 on the NSE, down by 0.72%.

Indian equity markets snapped its two-day losing streak and closed with healthy gains amid positive global cues. The key benchmark indices rebounded sharply after opening lower, driven by all-round buying across the sectors. Sentiments were boosted following positive earnings from U.S. tech companies along with the People’s Bank of China’s decision to reduce reserve ratio by 50 bps w.e.f. Fed 5, 2024 to support growth and financial liquidity.

Bond yields mostly remained steady after moving in a narrow range during the session, as market participants awaited fresh triggers, including the sale of debt by the central government.

Yield on the 10-year benchmark paper (7.18% GS 2033) was unchanged at 7.18% from the previous close.

Himanshu Singh - Research Analyst, Prabhudas Lilladher Pvt. Ltd, on TVS Motor Company

“We believe TVS is well placed to outperform the industry given (1) good tractions for new product launches in ICE & EV segments and (2) higher focus on exports, premiumisation and margin improvement helped by cost control, operating leverage, benign input prices and PLI benefits (likely to offset impact from higher EV mix). We slightly tweak our FY25/FY26E EPS estimates to incorporate 3Q beat on margins and management commentary. Retain ‘HOLD’ with TP of Rs1,955 (earlier TP at Rs. 1,950) at 30x Dec-25E EPS incl. Rs68 for TVS credit, as we see all positives to be priced in at current valuations.”

Tata Steel Ltd. Q3FY24 Result First Cut - Back to profit aided by robust domestic demand

# Consolidated Revenue from Operations stood at Rs. 55,312 crores in Q3FY24 (down 0.7% QoQ / down 3.1% YoY). This degrowth was due to lower realisations, especially in the UK and Netherlands, partially offset by marginally higer volumes.

# EBITDA stood at Rs. 6,334 crores in Q3FY24 (down 46.8% QoQ / down 52.5% YoY), while the EBITDA margin rose to 11.45% in Q3FY24 compared to 7.75% in Q2FY24 and 7.28% in Q3FY23. 

# EBITDA per ton stood at Rs. 8,864 in Q3FY24, compared to Rs. 6,106 in Q2FY24 and Rs. 5,806 in Q3FY23.

# The steel maker made a turnaround and reported a net profit of Rs. 522 crores in Q3FY24 from a net loss of Rs. 6,511 crores in Q2FY24 and Rs. 2,502 crores in Q3FY23, missing market estimates of around Rs. 1,600 crores.

# Production rose to 7.58 mn ton in Q3FY24 compared to 7.31 mn ton in Q2FY24 and 7.56 mn ton in Q3FY23.

# Deliveries stood at 7.15 mn ton in Q3FY24, compared to 7.07 mn ton in Q2FY24 and 7.15 mn ton in Q3FY23. 

# The company spent Rs. 4,715 crores on capital expenditure during Q3FY24 and Rs. 13,357 crores for the 9MFY24. The phased commissioning of the 5 MTPA expansion at Kalinganagar has commenced.

# The board has approved 6 February as the record date to allot shares to shareholders of Tata Metaliks. As per the merger plan, for every 10 shares in Tata Metaliks, shareholders are to get 79 shares of Tata Steel.

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The results of one of the largest steel makers, Tata Steel, came out with robust set of numbers in Q3FY24 mainly due to healthy domestic demand which was able to set off weak numbers from its European subsidiary. Although the steelmaker turned into profit, it missed market estimates. The rising coking coal prices acted as a dampener in the company’s performamce. However, the negative factors didn’t let Tata Steel outgrow its EBITDA which saw a significant growth of 52.7% on a YoY basis. The company’s all-around performance can be attributed to an uptick in steel prices amid strong demand fuelled by heavy infrastructure spending, but higher coking coal costs weighed on the gains. The company’s expansion is in line and we believe that once the pain of its subsidiaries in the western part is accounted, it will have a healthy financial performance in the long term. Additionally, the steel makers’ strategy of leveraging pan-India growth and branded presence will help them to grow at a faster pace in the high-margin business in the medium term. With the Automotive Infrastructure & Construction segments seeing continuous improvement and an increase in government spending, our outlook for the steelmaker remains positive.

Motilal Oswal Financial Services stock rose by 2.14% on the NSE, trading at ₹1,749. The company’s board had declared interim dividend for the Financial Year 2023-24 at the rate of ₹14 per Equity Share of the face value of ₹1 each.

The Indian rupee was barely changed on Thursday, tracking rangebound moves in most of its Asian peers as focus turns to key US economic data which could impact expectations of potential easing in policy rates by the Federal Reserve.

The rupee was at 83.1125 against the US dollar as of 9:30 a.m., barely changed from its close at 83.1225 in the previous session.

SBI Cards & Payment Services stock declines by 1.24% on the NSE, trading at ₹737.70. The company had raised up to ₹525 crore by issuing non-convertible debentures to fund its business growth.

Overweight Call, Target Rs 8,082

Reported Another Strong Qtr 

All-Time High Top & Bottom Line For Three Consecutive Quarters 

While Share Of High Margin Segments Was Down QoQ 

Improving Mix Supported Gross Margin & EBITDA Was 6% Ahead Of Est

Buy Call, Target Rs 310

Q3 Operational Results In-line 

Gross Margins Surprised Positively 

Higher Capital Costs (Depreciation + Interest) Resulted In A Marginal Miss At the PAT Level 

Mgmt Noted That Demand Appears To Be Picking Up Across Segments 

Mgmt Noted That Input Cost Pressures Have Started Easing As Well, Aiding Margin Expansion 

Lithium Ion Cell Plant Is Progressing As Per Plans

Neutral, TP Rs 530

Beat on all counts; management confident about good growth performance vs peers 

3Q $ rev growth of 1.9% QoQ & 8.7% YoY 

EBIT margin at 14.4% up 22bps QoQ & 315bps YoY 

Neutral given FY25E PE val

Buy Call, Target Raised To Rs 950

Co Consistently Outperforming Expectations 

Well Positioned To Deliver Industry-leading Quadrant Growth In FY25 

Q3 Revenue & Margins Above Estimates 

Margin Expansion Continues Under New Unified Organisational Structure 

Raise FY24-26 EPS By Approx 4-5%

Sell, TP raised to Rs 1300

3Q EBITDA broadly in line 

However, higher non-op income (gains from investments) resulted in a higher beat at PAT level. 

Outlook for industry is mixed 

Val rich& provide little room for error

Sell Call, Target Rs 1,400

Export Volume Growth Could Be Muted 

Margins Marginally Better Than Est 

Investment In Subsidiaries Continues To Drain Cash Flow 

Valuation Appears Stretched With Stock Trading At 37x FY25 EPS Est

Equal-Weight Call, Target Rs 1,706

Co Reported An In-line Quarter At The EBITDA Level 

Like Co’s Focus On Premiumization And EVs 

Exports Recovery, Albeit Bumpy, Near-term, Could Support Margin Expansion In FY26 

At An FY26 P/E Of 32x (Vs 10-Yr Median 1Y Fwd P/E Of 27x), Risk-Reward Looks Balanced

Buy Call, Target Cut To Rs 1,470/Sh

Subdued Demand From the Consumer End Market 

Higher Advertising And Promotional Expenses Impacted Q3 Results 

Continue To Believe That Demand Improvement Is Around the Corner 

Profitable Growth Should Resume From Q4

Overweight Call, Target Rs 2,750

Q3 Saw Lower Realisations But Better Volumes 

Benefits Of Lower Realisations & Better Volumes More Than Offset By Higher Opex 

Fuel Costs & Freight Costs Were Broadly In-line 

Raw Materials Costs Were Higher

RailTel Corporation of India Ltd has received the work order from Navodaya Vidyalaya Samiti for supply & implementation of integrated infrastructure & IT solutions under PM SHRI Scheme in JNVs Schools amounting to ₹162.73 Crore. 

The stock jumps 7.70% on the NSE, trading at ₹428.

Underweight Call, Target Rs 360 

Q3FY24 PAT Of Rs 3,660 Cr (1% Annualized RoA) Was 14% Above Est 

PAT Growth Helped By Strong Recoveries From Written-off Accounts 

Core PpOP Was 14% Below Est On Higher Opex, Even As NII Beat Est 

Slippages Inched Up QoQ To Rs 3,200 Cr (1.6% Of Loans, Annualised) Vs Rs 3,000 In Q2FY24 

Raise Earnings Est By 5% For FY24 

Overweight Call, Target Rs 970

Q3 Saw Lower Retail Loan Growth, +13% YoY 

Underlying Spread Compression, Down 20 bps QoQ Drove A PpOP Miss Of 6% 

PAT Miss Was 2% Due To Lower Credit Cost Of 38 bps 

Lowered Credit Cost Guidance Was Positive 

Valuation Vs RoE Appears Less Attractive On Stock Outperformance In Past Year

Overweight Call, Target Rs 770

9MFY24 Pre-sales Of Rs 13,300 Doubled YoY 

Key Going Forward Will Be If The Momentum Can Be Sustained 

Trends For Collections Are Strong, Resulting In Net Cash Of Rs 1,250 Cr (Excluding Rental Biz) 

Equal-Weight Call, Target Rs 120

Q3 Domestic EBITDA Was Ahead Of Our Est, Helped By Both Higher Realizations & Better Costs 

Consolidated EBITDA Was Even Better Despite Weakness In Europe

O-P, TP Rs 145

3Q: inventory movements drive beat & core earnings in line 

India biz profitability sharply above est.; adjusted for inventory movement, largely in line 

Losses from Europe expanded to $180/t (2Q: $169/t) 

Net debt flat QoQ 

Major gainers on the NSE 

Coal India (1.75%); NTPC (1.67%); IndusInd (1.56%); BPCL (1.19%); Adani Ports (1.09%)

Major losers:

Tech Mahindra (-4.13%); HCL Tech (-1.64%); SBI Life (-1.18%); Axis Bank (-0.81%); Infosys (-0.71%)

Mazagon Dock Shipbuilders Ltd (MDL) bagged ₹1070.47 crore contradr from Ministry of Defence for acquisition of 14 Fast Patrol Vessels (FPVs) for the Indian Coast Guard (ICG). 

Mazagon Dock stock surges by 4.23% on the NSE, trading at ₹2,425.10.

Titagarh Rail Systems Limited of Kolkata and Amber group of Delhi-NCR have agreed to enter the railway component and subsystem business by way of a joint venture company/ SPV. Under this agreement, the companies, through its wholly owned subsidiary Sidwal Refrigeration Industries Pvt Limited, will invest upto ₹120 crore each to acquire equal control in the SPV for setting up the new railway component business as well as fresh equity investment in Firema, Italy. The SPV will set up a new facility in India.

Creative Newtech Ltd announced the signing of trademark license agreement between its wholly owned subsidiary, Creative Ecommerce Ventures Private Limited, and US-based gaming systems giant Cyberpower Inc.

Indian benchmark indices, Sensex and Nifty, opened flat with negative bias on Thursday, mirroring their Asian counterparts.

During the initial trading session, the BSE Sensex declined by 91.45 points to reach 70,968.86, and the NSE Nifty experienced a drop of 27.95 points to 21,426. Following HDFC Bank’s underwhelming results last Wednesday, which triggered an exodus of foreign funds, both the NSE Nifty 50 and BSE Sensex have witnessed declines of 2.6% and 2.8%, respectively. Additionally, the financial services index has registered a significant decrease of about 6%.

Vinod Nair, Head of Research at Geojit Financial Services, noted a market rebound, influenced by global trends and boosted by the PBOC’s 0.5% reserve ratio cut for growth. Yet, he highlighted muted overall sentiment due to ongoing worries about foreign institutional investors (FIIs) selling amid India’s premium valuations and disappointing Q3 earnings.

Technically, the market’s bullish candle fell short of closing above Tuesday’s 50% retracement level at 21,480, as per Shrikant Chouhan, Head-Equity Research at Kotak Securities. Chouhan sees this as a robust pullback from the recent sell-off between 21,750 and 21,137, suggesting a weak market with a negative bias until the Nifty crosses 21,750.

FIIs extended their selling streak to a sixth session on Wednesday, offloading shares worth about $834 million. The market awaits FIIs’ reactions to late-Wednesday earnings reports from HDFC’s fellow Nifty 50 constituents. Despite Tech Mahindra’s third-quarter profit miss, Tata Steel posted a quarterly profit, and Bajaj Auto exceeded profit expectations, supported by robust domestic demand for motorcycles and three-wheelers. Asian shares remained subdued as investors awaited more details on China’s stimulus plans.

Crude oil futures traded higher on Thursday morning following a huge decline in crude oil inventories in the US. Added to this, People’s Bank China decided to reduce banks’ reserve ratio next month to support its economy. At 9.14 am on Thursday, March Brent oil futures were at $80.31, up by 0.34 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $75.42, up by 0.44 per cent. February crude oil futures were trading at ₹6276 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6253, up by 0.37 per cent; and March futures were trading at ₹6294 as against the previous close of ₹6272, up by 0.35 per cent.

CITI

Sell, TP Rs 1100 

Q3 rev ahead of expectations (aided by 1.4% 1-time revs) while adj. EBIT came in slightly below. 

Forward looking indicators – 

a) Another quarter of weak TCV 

b) Headcount down 7% yoy; 

c) Management commentary – still looking at rev volatility 

HSBC

Hold, TP Rs 1300 

While an experienced team is in place, expect a turnaround to remain challenging, especially in current environment 

Margin expansion is contingent on pyramid improvement or a pricing uptick; both are tough to deliver without growth 

MS

UW, TP raised to Rs 1220 from Rs 1100 

3Q may mark bottoming of performance 

View Tech M as a good potential turnaround story candidate over medium term given management changes & restructuring 

But expect sharp downward revisions to consensus est. in near term

CITI

Sell, TP Rs 315 

3Q sales subdued on a high base (-23% YoY) & even normalizing impact of Covid-elated order last year, sales grew by just 6% YoY 

-ve operative leverage due to growth investments continue to keep EBITDA margins under pressure 

Jefferies

U-P, TP cut to Rs 250 

3Q all round miss on subdued performance in CDMO & API division. 

Mgmt reiterated their stance for margin improvement in 4Q & overall 2HFY24 > 1HFY24 

Cut FY25/26 EPS est. by 19%/16% 

As of 08: 48 AM Thursday 25 January 2024

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Glenmark Specialty S.A. (GSSA), a subsidiary of Glenmark Pharmaceuticals Ltd. (Glenmark), has signed a license agreement with JIANGSU ALPHAMAB BIOPHARMACEUTICALS CO., LTD (Jiangsu Alphamab) and 3D MEDICINES (BEIJING) CO., LTD. (3DMed), (together as the Licensors), for KN035 (Envafolimab) for India, Asia Pacific, Middle East and Africa, Russia, CIS, and Latin America (the Territory). 

Under the terms of the agreement, GSSA will receive from Jiangsu Alphamab and 3DMed, an exclusive license to develop, register, commercialize, Envafolimab for the oncology indication in the Territory. Jiangsu Alphamab will be the exclusive supplier of the product. 

Jiangsu Alphamab (on behalf of the Licensors) will receive a “low double digit Million US Dollar” amount up to launch, additional “triple digit Million” US Dollar milestone payments based on sales performance across the length of the agreement, and a royalty fee of single-to-double-digits percentage according to the level of net sales.

The initial public offering of Nova Agritech Ltd, a manufacturer of agricultural inputs, will close today. The IPO has already received a strong response from retail investors and high net worth individuals, as it was subscribed 33.87 times. The IPO received bids for 86.09 crore shares against 2.54 crore shares (net off anchor portion) on offer.

The IPO comes at a price band of ₹39-41. Investors can bid for a minimum of 365 shares.

Piramal Alternatives Trust (PAT), a wholly-owned subsidiary of Piramal Enterprises, will acquire a 10.4 per cent stake in Annapurna Finance for ₹300 crore.

Annapurna Finance is a non-banking financial company, headquartered in Odisha. It is one of the top 10 MFIs in India, with an asset under management of ₹9,233 crore as of September 2023, the company said in a regulatory filing.

Price band revised from 20% to 10%: Bajel Projects, IFCI. 

Ex/record date dividend: Ksolves India, KDDL, IIFL Finance, Mastek. 

Moved into short-term ASM framework: Vikas Lifecare, Zee Entertainment. 

Moved out of short-term ASM framework: Accleya Solutions, Salasar Techno Engineering.

Mangalore Chemicals and Fertilizers: Promoter Zuari Agro Chemicals revoked a pledge for 70 lakh shares on Jan 23. 

Gensol Engineering: Promoter Gensol Ventures created a pledge of 15.50 lakh shares on Jan 17 and promoter Anmol created a pledge of 2.43 lakh shares on Jan 17.

Computer Age Management Services: HDFC Bank sold 10 lakh shares (2.02%) at Rs 2,700.08 apiece. Fidelity Investment Trust Fidelity Emerging Markets Fund bought 2.82 lakh shares (0.57%) at Rs 2,700 apiece.

Manappuram Finance: BNP Paribas Arbitrage sold 46.46 lakh shares (0.54%) at Rs 172.06 apiece. 

Sunteck Realty: Briarwood Capital Master Fund sold 47.15 lakh shares (3.21%), and CLSA Global Markets bought 46.52 lakh shares (3.17%) at Rs 445.5 apiece.

Poonawalla Fincorp: Magma Ventures sold 40.33 lakh shares (0.52%) and Rising Sun Holdings bought 40.33 lakh shares (0.52%) at Rs 495.85.

Epack Durable: The public issue was subscribed 16.37 times on day 3. The bids were led by non-institutional investors (28.10 times), retail investors (6.29 times) and institutional investors (25.50 times). 

Nova Agritech: The public issue was subscribed 33.87 times on day 2. The bids were led by non-institutional investors (71.23 times), retail investors (36.28 times) and institutional investors (1.12 times).

Coal India, Reliance Industries, Adani Enterprises, BHEL, Gail, IOCL, NLC India: Cabinet approved the scheme for the promotion of coal gasification projects with an outlay of Rs 8,500 crore. Incentives for coal gasification projects to be implemented under 3 categories. 

Zee Entertainment Enterprises: The company has moved the National Company Law Tribunal seeking directions to implement the merger with Sony Group Corp.’s Indian subsidiary. 

Tata Motors: The company has sought to deregister all its U.S.-listed securities from the country’s capital markets regulator after meeting the set criteria for the action. 

*Mazagon Dock Shipbuilders:*The company signed a contract worth of Rs 1,070 crore with the acquisition wing of the Ministry of Defense for the construction and delivery of Fourteen fast patrol vessels for the Indian Coast Guard. 

DLF: The board approved the sale of the asset ‘DLF Centre’ to unit DLF cyber city developers for consideration of Rs 825 crore. 

CEAT: The company approved a capex expansion plan of Rs 572 crore at existing Plants. The proposed amoaunt is to be spent over 3 years and is to bea funded by debt and internal accruals. 

Coal India: The company and Bharat Heavy Electricals will invest up to Rs 11,782 crore in coal-to-ammonium nitrate joint venture project in Odisha. The company and GAIL invest up to Rs 13,053 crore in a coal-to-SNG JV project in West Bengal. 

Piramal Enterprises: The company’s unit has agreed to buy a 10.39% stake in Annapurna Finance for Rs 300 crore through a mix of equity and debt.

Axis Bank: The private lender approved the investment of Rs 100 crore in a new wholly-owned unit. The new subsidiary will offer business correspondent and technological service providers to the Bank. 

Bajaj Auto: Madhur Bajaj resigned from the position of non-executive vice-chairman. 

Borosil: The company approved fundraising up to Rs 250 crore via qualified institutional placement.

Tasty Bite Eatables: Milin Bande resigned from the position of chief financial officer of the company. 

Balkrishna Industries: The company approved the merger of the unit BKT Tyers with itself. 

Cyient DLM: The company appointed Kausal Jadia as chief technology officer. 

NHPC: The government will sell up to 50.5 lakh shares via offer for sale to eligible employees at Rs 71 per share which indicates the discount of 11.7% to the current market price. 

Sona BLW Precision Forgings: The company signed a definitive agreement with CleanMax for setting up a captive power generating facility in Haryana. 

IRM Energy: Commercial operations at the company’s LCNG station at Rasipuram, Namakkal district commenced from Jan. 24, 2024.

JSW Steel, SBI Life, Cipla, Cholamandalam Investment, Shriram Finance, SBI Cards, AU Small Finance Bank, Tata Tech, ACC, Indraprastha Gas, Syngene International, Manyavar, Cyient, TVS Holdings, Asahi India Glass, Equitas SFB, IEX, Intellect Design Arena, Elecon Engineering, KFin Technologies, Maharashtra Scooters, ION Exchange, DB Corp, Sterlite Tech, Swaraj Engines.

Revenue up 11.5% at Rs 668.4 crore vs Rs 599.2 crore.

Ebitda up 3% at Rs 118.8 crore vs Rs 115.3 crore. 

Margin narrows 147 bps to 17.76% vs 19.24%. 

Net profit down 8.9% at Rs 62.1 crore vs Rs 68.2 crore.

Revenue up 10.3% at Rs 2,210.6 crore vs Rs 2,004.5 crore.

Ebitda up 19.7% at Rs 517.5 crore vs Rs 432.4 crore. 

Margin expands 183 bps to 23.4% vs 21.57%. 

Net profit up 13.1% at Rs 330.6 crore vs Rs 293.4 crore. 

Revenue up 8.6% at Rs 2,963.1 crore vs Rs 2,727.2 crore (Bloomberg estimate: Rs 2,994.1 crore).

Ebitda up 75.7% at Rs 417.5 crore vs Rs 237.6 crore (Bloomberg estimate: Rs 414.5 crore). 

Margin expands 537 bps to 14.08% vs 8.71% (Bloomberg estimate: 13.8%). 

Net profit up 419.48% at Rs 181.3 crore vs Rs 34.9 crore (Bloomberg estimate: Rs 160.4 crore).

Revenue up 9.6% at Rs 335.9 crore vs Rs 306.4 crore (Bloomberg estimate: Rs 340 crore).*

Ebitda up 10.6% at Rs 118 crore vs Rs 106.7 crore (Bloomberg estimate: Rs 115.5 crore). 

Margin up 30 bps at 35.12% vs 34.82% (Bloomberg estimate: 34%). 

Net profit up 7.6% at Rs 62.6 crore vs Rs 58.2 crore (Bloomberg estimate: Rs 61.4 crore).

NII up 6.3% Rs 474 corer vs Rs 446 crore.

Net profit up 11.2% Rs 126.6 crore vs Rs 113.9 crore (Bloomberg estimate: Rs 128.6 crore). 

Gross NPA at 3.43% vs 3.36% (QoQ). 

Net NPA at 1.22% vs 1.28% (QoQ).

Revenue up 28.96% at Rs 373.6 crore vs Rs 289.7 crore (Bloomberg estimate: Rs 354.9 crore).

Ebitda up 46.25% at Rs 166 crore vs Rs 113.5 crore (Bloomberg estimate: Rs 151.8 crore). 

Margin expands 525 bps to 44.43% vs 39.17% (Bloomberg estimate: 42.8%). 

Net profit down 30.98% at Rs 70.6 crore vs Rs 102.3 crore (Bloomberg estimate: Rs 54.7 crore). 

Revenue down 3.11% at Rs 55,311.9 crore vs Rs 57,083.6 crore (Bloomberg estimate: Rs 57,810 crore).

Ebitda up 54.73% at Rs 6,263.59 crore vs Rs 4047.88 crore (Bloomberg estimate: Rs 5,526.5 crore). 

Margin expands 423 bps to 11.32% vs 7.09% (Bloomberg estimate: 9.6%). 

Net profit at Rs 522.1 crore vs loss of Rs 2,502 crore (Bloomberg estimate: Profit of Rs 1,687.8 crore). 

Revenue up 3.42% at Rs 1,382.93 crore vs Rs 1,337.08 crore (Bloomberg estimate: Rs 1,449.1 crore).

Ebitda down 6.42% at Rs 213.43 crore vs Rs 228.05 crore (Bloomberg estimate: Rs 251.3 crore). 

Margin contracts 162 bps to 15.43% vs 17.05% (Bloomberg estimate: 17.30%). 

Net profit up 0.25% at Rs 88.89 crore vs Rs 88.66 crore (Bloomberg estimate: Rs 95.2 crore). 

Revenue up 16.3% at Rs 669.4 crore vs Rs 575.7 crore (Bloomberg estimate: Rs 652.7 crore).

Ebitda up 83% at Rs 87.06 crore vs Rs 47.58 crore (Bloomberg estimate: Rs 95.3 crore). 

Margin expands 474 bps to 13% vs 8.26% (Bloomberg estimate: Rs 14.6%). 

Net loss at Rs 10.18 crore vs loss of Rs 23.68 crore (Bloomberg estimate: Loss of Rs 3.6 crore).

Revenue up 5.02% at Rs 2,274.41 crore vs Rs 2,165.57 crore (Bloomberg estimate: Rs 2,357.1 crore).

Ebitda up 100.74% at Rs 540.59 crore vs Rs 269.29 crore (Bloomberg estimate: Rs 590.6 crore). 

Margin expands 1,133 bps to 23.76% vs 12.43% (Bloomberg estimate: 25.10%). 

Net profit up 181.96% at Rs 305.42 crore vs Rs 108.32 crore (Bloomberg estimate: Rs 332.9 crore). 

Revenue up 25.96% at Rs 8,245.01 crore vs Rs 6,545.42 crore (Bloomberg estimate: Rs 8,335.9 crore).

Ebitda up 40.29% at Rs 924.43 crore vs Rs 658.93 crore (Bloomberg estimate: Rs 932.5 crore). 

Margin up 114 bps at 11.21% vs 10.06% (Bloomberg estimate: 11.20%). 

Net profit up 68.2% at Rs 593.35 crore vs Rs 352.75 crore (Bloomberg estimate: Rs 546.6 crore). 

Revenue up 7.3% at Rs 3,600 crore vs Rs 3,355 crore (Bloomberg estimate: Rs 3,523.7 crore).

Ebitda up 20.34% at Rs 775 crore vs Rs 644 crore (Bloomberg estimate: Rs 750 crore). 

Margin expands 233 bps to 21.52% vs 19.19% (Bloomberg estimate: 21.30%). 

Net profit up 22.01% at Rs 266 crore vs Rs 218 crore (Bloomberg estimate: Rs 244.5 crore). 

Revenue down 8.74% at Rs 605.94 crore vs Rs 663.96 crore. 

Ebitda down 0.71% at Rs 70.14 crore vs Rs 70.64 crore. 

Margin expands 93 bps to 11.57% vs 10.63%. 

Net profit up 0.1% at Rs 36.71 crore vs Rs 36.67 crore. 

Board declared interim dividend of Re 1 per share. 

Revenue up 2.52% at Rs 1,342.9 crore vs Rs 1,309.8 crore (Bloomberg estimate: Rs 1,333.3 crore).

Ebitda up 4.15% at Rs 193.2 crore vs Rs 185.5 crore (Bloomberg estimate: Rs 180.1 crore). 

Margin expands 22 bps to 14.38% vs 14.16% (Bloomberg estimate: 13.50%). 

Net profit up 11.03% at Rs 161 crore vs Rs 145 crore (Bloomberg estimate: Rs 142.4 crore). 

Revenue up 1.76% at Rs 1,521.25 crore vs Rs 1494.8 crore (Bloomberg estimate: Rs 1,697 crore). 

Ebitda up 7.12% at Rs 510.97 crore vs Rs 477 crore (Bloomberg estimate: Rs 597 crore). 

Margin expands 167 bps to 33.58% vs 31.91% (Bloomberg estimate: 35.20%). 

Net profit up 26.59% at Rs 655.71 crore vs Rs 517.94 crore (Bloomberg estimate: Rs 721 crore). 

Revenue up 30.04% at Rs 1,2113.51 crore vs Rs 9,315.14 crore (Bloomberg estimate: Rs 11,766.7 crore).

Ebitda up 36.75% at Rs 2,429.87 crore vs Rs 1,776.81 crore (Bloomberg estimate: Rs 2,284.6 crore). 

Margin expands 98 bps to 20.05% vs 19.07% (Bloomberg estimate: 19.40%). 

Net profit up 36.9% at Rs 2,041.88 crore vs Rs 1,491.42 crore (Bloomberg estimate: Rs 1,930 crore). 

Revenue up 2.4% at Rs 1,748.05 crore vs Rs 1,707.05 crore.

Ebitda up 18.79% at Rs 1,541.84 crore vs Rs 1,297.95 crore. 

Margin expands 1,216 bps at 88.2% vs 76.03%. 

Net profit up 27.28% at Rs 346.54 crore vs Rs 272.25 crore (Bloomberg estimate: Rs 360.1 crore). 

Revenue up 1.84% at Rs 13,101.3 crore vs Rs 12,863.9 crore (Bloomberg estimate: Rs 12,801.10 crore).

EBIT up 53.79% at Rs 703.2 crore vs Rs 457.1 crore (Bloomberg estimate: Rs 780.4 crore). 

Margin expands 181 bps at 5.36% vs 3.55% (Bloomberg estimate: 6.10%). 

Net profit up 3.64% at Rs 523.7 crore vs Rs 505.3 crore (Bloomberg estimate: Rs 663.3 cr)

Revenue down 22.65% at Rs 1,194.92 crore vs Rs 1,544.82 crore (Bloomberg estimate: Rs 1,385 crore).

Ebitda down 55.05% at Rs 181.42 crore vs Rs 403.57 crore (Bloomberg estimate: Rs 275.7 crore). 

Margin contracts 1,094 bps at 15.18% vs 26.12% (Bloomberg estimate: 19.90%). 

Net profit down 88.47% at Rs 23.34 crore vs Rs 202.54 crore (Bloomberg estimate Rs 104.5 crore).

Iron ore futures rose on Thursday, with the Dalian benchmark extending gains to a third session on expectation of a boost to the Chinese economy following the central bank’s move to cut the amount of cash that banks must hold as reserves.

The most traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 2.11% at 992 yuan ($138.57) a metric ton, as of 0221 GMT. It briefly touched its highest level since Jan. 9 at 995 yuan.

People’s Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday the bank would cut the reserve requirement ratio (RRR) for all banks by 50 basis points (bps), adding that the move would free up 1 trillion yuan ($139.45 billion) to the market.

“The iron ore market was also swept up in the optimism following the cut to China’s RRR,” ANZ Research said in a note. - Reuters

Gold prices languished near a one-week low on Thursday as the U.S. dollar and bond yields strengthened after a strong reading of U.S. business activity, ahead of U.S. GDP data and the European Central Bank’s policy meet later in the day.

FUNDAMENTALS

* Spot gold rose 0.2% to $2,015.99 per ounce, after hitting a near one-week low of $2,011.06 in the previous session.

* U.S. gold futures, were flat at $2,015.80. - Reuters

Rating: SELL

Target Price : INR 381 

Downside : 21% 

CMP : INR 485 (as on 23 January 2024) 

Healthy Q3; execution on track

Robust generation, strong merchant volumes drive earnings

JSW Energy’s (JSW IN) Q3 revenue rose 13.1% YoY to INR 25.4bn, led by higher thermal generation, contribution from acquired and greenfield RE capacity additions. Total renewable generation rose 71% YoY to 1.4Bus, and total thermal generation 37% YoY to 4.7Bus. Hydro generation declined by 30% YoY in Q3.

Merchant volume increased to 887MU in Q3 from 95MU last year. Merchant tariff prices averaged at INR 5/unit in Q3, up 10% YoY. EBITDA increased a substantial 78% to INR 11.1bn, led by incremental contribution from renewables portfolio and strong thermal performance. Net generation from acquired RE portfolio rose 16% YoY, resulting in an EBITDA of INR 2.01bn. Profit after tax increased 24% YoY to INR 2.3bn in Q3.

MS on Bajaj Auto: Maintain Overweight on Company, raise target price at Rs 8082/sh (Positive)

Jefferies on Bajaj Auto: Maintain Buy on Company, target price at Rs 9000/sh (Positive) 

Nomura on Tech Mahindra: Maintain Buy on Company, target price at Rs 1470/sh (Positive) 

GS on TVS Motors: Maintain Buy on Company, raise target price at Rs 2180/sh (Positive) 

BofA on TVS Motors: Maintain Buy on Company, target price at Rs 2160/sh (Positive) 

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

Jefferies on DLF: Maintain Buy on Company, target price at Rs 875/sh (Positive) 

MS on DLF: Maintain Overweight on Company, target price at Rs 770/sh (Positive) 

GS on BlueDart: Maintain Buy on Company, raise target price at Rs 7460/sh (Positive) 

Citi on Indus Tower: Maintain Buy on Company, target price at Rs 265/sh (Positive) 

MS on PNB housing: Maintain Overweight on Company, target price at Rs 970/sh (Positive) 

MS on Dalmia Bharat: Maintain Overweight on Company, target price at Rs 2750/sh (Positive) 

Nomura on Birlasoft: Maintain Buy on Company, target price at Rs 950/sh (Positive) 

Jefferies on IOCL: Maintain Sell on Company, raise target price at Rs 135/sh (Neutral) 

MS on Tata Steel: Maintain Equal weight on Company, target price at Rs 120/Sh (Neutral) 

CLSA on Tata Steel: Maintain Outperform on Company, target price at Rs 145/Sh (Neutral) 

MS on TVS Motors: Maintain Equal weight on Company, target price at Rs 1706/Sh (Neutral) 

CLSA on TVS Motors: Maintain Sell on Company, target price at Rs 1400/Sh (Neutral) 

Citi on TVS Motors: Maintain Sell on Company, target price at Rs 1300/sh (Neutral) 

Citi on Laurus Lab: Maintain Sell on Company, raise target price at Rs 315/sh (Neutral) 

Jefferies on Laurus Lab: Maintain Underperform on Company, cut target price at Rs 250/sh (Neutral) 

MS on Canara bank: Maintain Underweight on Company, target price at Rs 360/Sh (Neutral) 

Jefferies on Tech Mahindra: Maintain Underperform on Company, target price at Rs 1080/sh (Neutral) 

MS on Tech Mahindra: Maintain Underweight on Company, raise target price at Rs 1220/sh (Neutral) 

HSBC on Tech Mahindra: Maintain Hold on Company, raise target price at Rs 1300/sh (Neutral) 

Nuvama on Rallis: Maintain Reduce on Company, raise target price at Rs 182/sh (Neutral) 

ICICI on Indus Tower: Downgrade to Reduce on Company, raise target price at Rs 200/sh (Neutral) 

Citi on Bajaj Auto: Maintain Sell on Company, target price at Rs 5000/sh (Neutral) 

- We interacted with a few large Mutual Fund distributors (having an AUM in excess of INR10b) and institutional sales representatives to analyze customer behavior in the prevailing market conditions.

- SIPs continue to be the key driver for equity inflows. Passives fade in action as actives continue to deliver strong returns, particularly in small caps and large caps. However, NFOs from relatively smaller-sized AMCs have offered significantly higher commissions vis-à-vis past few quarters. 

- Increasing options to invest in various fixed-income instruments such as Corporate Deposits, Bonds, and Fixed Deposits along with taxation impact continue to keep investors at bay for investing into debt MFs. A 50bp interest rate cut, however, has the potential to attract smart money swiftly. 

- We remain positive on 360ONE and CAMS in the AMC space with a BUY rating on the both stocks. 360ONE is well placed to leverage the emerging trends in the UHNI segment, wherein inter-generational wealth transfer is picking up momentum, especially so in the smaller tier cities. CAMS, on the other hand, is seeing improved AUM and revenue traction, driven by strong equity markets and healthy trends in non-MF segments such as PMS/AIF RTA. 

The government announced Pradhan Mantri Suryodaya Yojana (PMSY), a new rooftop solar scheme targeting 10mn households. While details are still embryonic, we assess the opportunity size/sectoral beneficiaries.

Solar panel manufacturers, power financing plays to benefit 

Pradhan Mantri Suryodaya Yojana (PMSY), at scale (as and when that happens), is set to benefit manufacturers of solar panels, capital goods, structural steel pipes, and consumer durables & electrical companies as also power financing players. We estimate the total opportunity size for solar panels, based on the current announcement, to be 10GW, at total investment of ~INR 554bn. 

Distribution utilities may see a hit of INR 87bn in revenue 

Upon full execution, PMSY has the potential to generate surplus income for rural households after the investment pay-back period is over through sale of surplus power to the grid. For a 3kw installation, we estimate an income rise of 6.7% of the monthly average rural income, if the household does not use air conditioning units and doesn’t get any free power presently. We see a funding opportunity of INR 250bn, mainly benefiting power finance companies. Among losers, expect distribution utilities to see a hit of INR 87bn in revenue, as 4% of their sales are projected to transition to solar rooftop due to the installation of 10GW capacity. 

PMSY: Top beneficiaries are Tata Power, REC, IREDA, PFC 

Our top picks to benefit from PMSY are Tata Power (Accumulate, TP INR 288), REC (Buy, TP INR 582), IREDA (Not Rated), PFC (Buy, TP INR 326), KEI Industries (Accumulate, TP INR 2,700), Havells India (Accumulate, TP INR 1,480) and APL Apollo (Accumulate, TP INR 1,679)

Rating: REDUCE

Target Price : INR 246 

Downside : 5% 

CMP : INR 260 (as on 24 January 2024) 

Valuation pricing in emerging green shoots

Volume growth drives domestic business

Rallis India (RALI IN) reported a 5% deceleration in topline to INR 6bn versus INR 7bn estimated, led by pricing pressure globally. Domestic crop care business grew 6%, led by 7% volume growth. International business declined 24% YoY to INR 1.9bn. Gross and EBITDA margin expanded 309bps and 191bps to 42.5% and 10.4% respectively, led by: (a) 800bps improvement in geographical revenue mix in favor of domestic business, (b) timely liquidation, (c) shorter procurement cycle for raw material purchases and (d) cost control

ABB has received an order from the Office of the Commissioner of Customs, Maharashtra imposing a fine of Rs. 2,00,000/- and penalty of Rs. 10,76,014/- plus applicable interest under applicable provisions of the Customs Act, 1962 in relation to mis-classification of the goods imported by the Company.

The Order datedABB has received an order from the Office of the Commissioner of Customs, Maharashtra imposing a fine of Rs. 2,00,000/- and penalty of Rs. 10,76,014/- plus applicable interest under applicable provisions of the Customs Act, 1962 in relation to mis-classification of the goods imported by the Company.

Amber group and Titagarh Rail Systems Limited forge a strategic alliance to enter Train components and subsystems business in India and Italty.

Healthy margins sustain; multiple EV launches ahead

TVSL sustained over 11% margin in Q3, along expected lines. Its franchise continues to strengthen with ongoing market-share gains (domestic 2Ws up by ~70bps QoQ in Q3, led by 125cc-motorcycles/scooters), even as industry recovery (incl. that in the commuter category) is sustaining beyond the recent festive (refer to: 2Ws to re-rate further – ‘TINA’ factor at play). We reiterate TVSL as our top pick in OEMs, driven by bottom-up share gains along with emerging leadership in EVs and premiumization-led margin triggers (refer to: Strength of an incumbent with the agility of a start-up); we retain BUY. We trim FY24E EPS ~3% (on modest ASP, margin cut) with FY25-26 estimates largely unchanged (build-in ~32% FY24E-26E EPS CAGR) and leave our TP unchanged at Rs2,350/sh (27.5x FY26E PER+Rs130/sh for the captive financing arm) 

Muted performance – growth concerns persist

BDE reported a weak performance as consolidated sales grew 3% YoY in a seasonally strong quarter (festive season occurred entirely in Q3 vs. being spread across Q2-Q3 last year). EBITDA margin contracted to 15.4% despite favorable fuel environment (avg. ATF prices corrected 5% YoY) as costs of operating a premium network offset gross margin expansion. In-line with our thesis outlined in our report (link), BDE’s premium pricing strategy in the surface segment is likely to keep growth prospects suppressed, while steady supply of the belly cargo space may limit any increase in pricing differential that BDE enjoys owing to its premium services and execution. We cut our sales/EBITDA/PAT estimates for FY25E by 4%/7%/9%, factoring in the miss for Q3 results and maintain our REDUCE rating. Our Dec-24 TP stands at Rs7,000 (DCF methodology), implying FY25E EV/EBITDA of 16x and P/E of 41x.

(Nirmal Bang Retail Research) 

Result is marginally above expectations 

Revenue from Operations came at Rs. 7199 Cr (0.9% QoQ, 6.4% YoY) vs expectation of Rs. 7205 Cr, QoQ Rs. 7133 Cr, YoY Rs. 6765 Cr 

EBIDTA came at Rs. 3584 Cr (4.7% QoQ, 208.3% YoY) vs expectation of Rs. 3486.6 Cr, QoQ Rs. 3421.5 Cr, YoY Rs. 1162.6 Cr 

EBITDA Margin came at 49.8% vs expectation of 48.4%, QoQ 48%, YoY 17.2% 

Adj. PAT came at Rs. 1540.5 Cr vs expectation of Rs. 1263.1 Cr, QoQ Rs. 1294.7 Cr, YoY Rs. -215.4 Cr 

Quarter EPS is Rs. 5.7 

Stock is trading at P/E of 11.4x FY24E EPS 

(Nirmal Bang Retail Research) 

Result is above expectations 

Revenue from Operations came at Rs. 373.7 Cr (18.8% QoQ, 29% YoY) vs expectation of Rs. 357.5 Cr, QoQ Rs. 314.5 Cr, YoY Rs. 289.7 Cr 

EBIDTA came at Rs. 166 Cr (31.8% QoQ, 46.3% YoY) vs expectation of Rs. 151.9 Cr, QoQ Rs. 126 Cr, YoY Rs. 113.5 Cr 

EBITDA Margin came at 44.4% vs expectation of 42.5%, QoQ 40%, YoY 39.2% 

Adj. PAT came at Rs. 70.6 Cr vs expectation of Rs. 53.2 Cr, QoQ Rs. 36.4 Cr, YoY Rs. 41.8 Cr 

Quarter EPS is Rs. 3.4 

Stock is trading at P/E of 38.9x FY25E EPS 

(Nirmal Bang Retail Research) 

Result is in-line with expectations 

Advances came at Rs. 38951 Cr (18% YoY, 4.5% QoQ) 

Net Interest Income came at Rs. 474 Cr vs expectation of Rs. 492 Cr, YoY Rs. 446 Cr, QoQ Rs. 476 Cr 

NIM came at 3.48% vs QoQ 3.69% 

Non Interest Income came at Rs. 124 Cr vs expectation of Rs. 121 Cr, YoY Rs. 95 Cr, QoQ Rs. 107 Cr 

PBP came at Rs. 212 Cr vs YoY Rs. 194 Cr, QoQ Rs. 211 Cr 

Provisions came at Rs. 41 Cr vs expectation of Rs. 45 Cr, YoY Rs. 41 Cr, QoQ Rs. 40 Cr 

Credit Cost came at 0.4% vs YoY 0.5%, QoQ 0.4% 

Adj. PAT came at Rs. 127 Cr vs expectation of Rs. 129 Cr, YoY Rs. 114 Cr, QoQ Rs. 127 Cr 

Gross NPA came at Rs. 1368 Cr vs QoQ Rs. 1281 Cr at 3.43% vs QoQ 3.36% 

Net NPA came at Rs. 477 Cr vs QoQ Rs. 476 Cr at 1.22% vs QoQ 1.28% 

Slippages came at Rs. 428 Cr vs QoQ Rs. 395 Cr with slippage ratio of 4.40% vs QoQ 4.24% 

O/s Restructured book stood at Rs. 1337 Cr vs QoQ Rs. 1461 Cr at 3.43% vs QoQ 3.92% 

Quarter EPS is Rs. 4 

Stock is trading at P/E of 7.1x FY25E EPS & 1x trailing P/Adj. BV 

(Nirmal Bang Retail Research) 

Dollar revenue came at $ 161.3 mn vs expectation of $ 160 mn, QoQ $ 158.3 mn, YoY $ 148.4 mn 

Result is above expectations 

Revenue from Operations came at Rs. 1342.9 Cr (2.5% QoQ, 9.9% YoY) vs expectation of Rs. 1333.3 Cr, QoQ Rs. 1309.9 Cr, YoY Rs. 1221.9 Cr 

EBIDTA came at Rs. 214.2 Cr (3.4% QoQ, 2810.7% YoY) vs expectation of Rs. 202.4 Cr, QoQ Rs. 207.1 Cr, YoY Rs. 7.4 Cr 

EBITDA Margin came at 16% vs expectation of 15.2%, QoQ 15.8%, YoY 0.6% 

Adj. PAT came at Rs. 161 Cr vs expectation of Rs. 141.6 Cr, QoQ Rs. 145.1 Cr, YoY Rs. -16.4 Cr 

Quarter EPS is Rs. 5.8 

Stock is trading at P/E of 39.3x FY24E EPS 

(Nirmal Bang Retail Research) 

Result is declining 

Revenue from Operations came at Rs. 605.9 Cr (-5.5% QoQ, -8.7% YoY) vs QoQ Rs. 641.5 Cr, YoY Rs. 664 Cr 

EBIDTA came at Rs. 70.1 Cr (-8.3% QoQ, -0.7% YoY) vs QoQ Rs. 76.4 Cr, YoY Rs. 70.7 Cr 

EBITDA Margin came at 11.6% vs QoQ 11.9%, YoY 10.6% 

Adj. PAT came at Rs. 36.7 Cr vs QoQ Rs. 39.6 Cr, YoY Rs. 36.7 Cr 

Quarter EPS is Rs. 4 

Stock is trading at P/E of 27.3x TTM EPS 

(Nirmal Bang Retail Research) 

Result is ok 

Net Interest Income came at Rs. 1988 Cr vs YoY Rs. 1952 Cr, QoQ Rs. 1917 Cr 

Non Interest Income came at Rs. 861 Cr vs YoY Rs. 823 Cr, QoQ Rs. 647 Cr 

PBP came at Rs. 1119 Cr vs YoY Rs. 1354 Cr, QoQ Rs. 982 Cr 

Provisions came at Rs. 342 Cr vs YoY Rs. 332 Cr, QoQ Rs. 342 Cr 

Adj. PAT came at Rs. 503 Cr vs YoY Rs. 653 Cr, QoQ Rs. 402 Cr 

PAT is higher QoQ due to higher other income 

Gross NPA came at Rs. 6905 Cr vs QoQ Rs. 6939 Cr at 3.85% vs QoQ 4.14% 

Net NPA came at Rs. 1700 Cr vs QoQ Rs. 1802 Cr at 0.98% vs QoQ 1.11% 

Quarter EPS is Rs. 0.4 

Stock is trading at 2x trailing P/Adj. BV 

(Nirmal Bang Retail Research) 

Result is above expectations 

Revenue from Operations came at Rs. 199104 Cr (10.8% QoQ, -2.8% YoY) vs expectation of Rs. 199263.6 Cr, QoQ Rs. 179739.8 Cr, YoY Rs. 204740.2 Cr 

EBIDTA came at Rs. 15488.7 Cr (-27.3% QoQ, 331% YoY) vs expectation of Rs. 9172.3 Cr, QoQ Rs. 21313 Cr, YoY Rs. 3593.4 Cr 

EBITDA Margin came at 7.8% vs expectation of 4.6%, QoQ 11.9%, YoY 1.8% 

Adj. PAT came at Rs. 8063.4 Cr vs expectation of Rs. 4786.8 Cr, QoQ Rs. 12967.3 Cr, YoY Rs. 448 Cr 

Quarter EPS is Rs. 5.7 

Stock is trading at P/E of 4.9x FY24E EPS 

AHLEAST 

E.G.M. 

ARNOLD 

Buy Back of Shares 

BRIJLEAS 

E.G.M. 

DOLPHIN 

Stock Split From Rs.10/- to Rs.1/- 

IIFL 

Interim Dividend - Rs. - 4.0000 

JOYREALTY 

E.G.M. 

KDDL 

Dividend - Rs. - 58.0000 

KSOLVES 

Interim Dividend - Rs. - 7.5000 

MAGNUM 

Right Issue of Equity Shares 

MASTEK 

Interim Dividend - Rs. - 7.0000 

RHL 

E.G.M.

(MAHGL IN, Mkt Cap USD1.6b, CMP INR1345, TP INR1665, 24% Upside, Buy)

Motilal Oswal

- Mahanagar Gas Ltd.’s (MAHGL) EBITDA increased by 75% YoY to INR4.5b in 3QFY24, mainly driven by a 63% YoY rise in EBITDA/scm to INR13.3. Volumes grew 8% YoY to 3.7mmscmd driven by CNG and I/C-PNG.

- CNG growth was led by an increase in vehicle conversions to 22.4k vehicles in 3Q from ~20k in 2Q and ~15k in 1Q. There was a 30% uptick in CNG passenger vehicle conversions in 3Q due to the ‘CNG Mahotsav’ scheme launched by the company. MAHGL spent INR100m in 3Q on the scheme and intends to spend INR200m in 4Q. 

- I/C PNG growth was driven by high consumption among new customers. The company guarantees a 10% discount on gas prices compared to alternate fuels for the first three years to new customers in GA3 region. In GA2, the same benefit is provided to new customers with high gas offtake. 

- According to the management, CNG is currently 50% cheaper than petrol and 18-19% cheaper than diesel on a calorific value basis. MAHGL does not expect CNG volumes to be meaningfully impacted by INR5-10/lit cut in petrol prices. However, the diesel price cut may affect commercial vehicle conversions and the company may consider price cuts in case volume declines significantly. 

- The stock trades at 11.7x FY25E EPS of INR114.9. We value it at 14x Dec’25E EPS to arrive at a TP of INR1,665 and maintain BUY rating on the stock. We continue to prefer MAHGL over IGL owing to its 30% cheaper valuation (on FY26E PE basis) with largely similar growth profile in the medium term and relatively lower EV risk.

(POWERIND IN, Mkt Cap USD2.9b, CMP INR5673, TP INR4500, 21% Downside, Sell)

Motilal Oswal 

Hitachi Energy’s 3QFY24 result was weaker than our expectations. The company reported 23%/72%/401% YoY growth in revenue/EBITDA/PAT on a low base of last year. Revenue growth was supported by a strong order book, while margin improvement was driven by moderating supply chain issues. EBITDA margin remained flat QoQ. We expect the company to be a key beneficiary of the uptick in spending across transmission, renewables, data centers, as well as the railways. We also expect its strategy to grow the share of services and exports to aid margin improvement. We roll forward our valuation to Mar’26 and revise our TP to INR4,500. The stock is currently baking in the possibility of potential HVDC wins as well as margin improvement. At 86x/54x P/E on FY25E/FY26E earnings, it is trading at a 20% premium to Siemens and at a 10% discount to ABB on FY26E. We retain our SELL rating on the stock and would look for better entry points. The key risk to our recommendation would come from sharper-than-expected improvement in margins over the next 1-2 years.

(INBK IN, Mkt Cap USD7.2b, CMP INR442, TP INR525, 19% Upside, Buy)

Motilal Oswal 

Asset quality continues to improve

- Indian Bank (INBK) reported a PAT beat at INR21.2b (up 52% YoY/ 6.6% QoQ; 9% beat on MOFSLe), amid lower-than-expected provisions (as the bank reversed excess provisions on account of a sale of stressed loans). NII grew 5.7% YoY (in line). Margin contracted slightly by 3bp QoQ to 3.49%. 

- Gross loan growth was healthy at 13% YoY/4% QoQ, while deposits grew 9.6% YoY/ 2.1% QoQ. CD ratio increased marginally to 77.9%, while the bank continued to focus on profitable growth. 

- Fresh slippages were under control at INR16.8b. Healthy reductions led to a 50bp/7bp QoQ decline in GNPA/NNPA to 4.5%/0.5%. SMA book stood at 0.6% of loans during the quarter. 

- We marginally tweak our earnings estimates with +3.6%/-1.4% change in FY24/25E EPS. We expect the bank to deliver an RoA/RoE of 1.2%/ 16.7%. We reiterate our BUY rating with a TP of INR525.

(INDUSTOW IN, Mkt Cap USD7.5b, CMP INR230, TP INR210, 9% Downside, Neutral)

Motilal Oswal

- Indus reported revenue/adj. EBITDA growth of 1%/3% QoQ (in line), led by strong tower/rental adds of 7.6k/7.2k and INR3b in provision write-backs. Rental EBITDA grew 3% QoQ. PAT growth was strong at 19% QoQ, led by lower power costs, and interest income for delayed payments.

- The company is benefiting from aggressive site adds by Bharti and the 5G rollout. However, since these are single-tenancy sites, they could drive higher capex, which alters the return profile despite adding linear (single tenant) sites and reduces FCF. Further, VIL’s weak outlook and limited funding capability could dilute tenancies in the near term and raise concerns about its long-term tower sharing-led business model. Subsequently, we reiterate our Neutral rating.

(HAVL IN, Mkt Cap USD9.8b, CMP INR1306, TP INR1510, 16% Upside, Buy)

Motilal Oswal 

Strong B2B demand; normalcy expected in B2C segment

- HAVL reported a miss of 3%/6% on EBITDA/PAT on our 3QFY24 estimates, primarily due to higher-than-estimated AD spends (4% of revenues vs. 3.1%/2.2% in 3QFY23/2QFY24). An adverse product mix in the Cables and Wires segment led to a QoQ decline in margin. 

- The management expects a positive impact on the summer season, aided by low base. It foresees the realization of deferred purchases, due to the inflationary environment over the past year in the B2C category going forward. It does not anticipate any price increases in both AC and fan product categories. Instead, the focus is on leveraging cost-saving initiatives and capitalizing on improved economies of scale in 1HCY24 to boost margin. 

- We cut our EPS estimates by 8%/6%/4% for FY24/FY25/FY26 as we factor in lower margins in the ECD/Lighting segments due to pricing pressure. We remain structurally positive on HAVL, given its diversified product portfolio, premiumization strategy, and continued focus on brand building. We value HAVL at 50x FY26E EPS to arrive at our TP of INR1,510.

(CBK IN, Mkt Cap USD9.9b, CMP INR454, TP INR570, 25% Upside, Buy)

Motilal Oswal 

RoA to expand further 

- Canara Bank (CBK) reported 3QFY24 standalone PAT at INR36.6b (up 27% YoY, in line), driven by lower provisions. NII grew 9.5% YoY (in line), while margins improved 3bp QoQ to 3.03%. 

- Other income grew 8% YoY to INR43b (down 7% QoQ, 6% miss). Opex grew 23% YoY to INR69.1b (17% QoQ growth, 8% beat). PPoP, thus, declined 2% YoY (7% miss). The C/I ratio rose to 50.4% due to wage revisions at 17%. 

- On the business front, the loan book grew 13% YoY (3.2% QoQ), driven by healthy traction in retail and corporate loans. Deposits grew 8.5% YoY (2.5% QoQ) to INR12.6t, led by 14% YoY growth in term deposits. The CASA ratio, thus, moderated 50bp QoQ to 31.7%. 

- Asset quality ratios improved significantly, with credit costs falling below 1%. Fresh slippages stood at INR26.97b vs. INR29.87b in 2QFY24. RoA/RoE stood at 1.01%/21.95%. 

- We broadly maintain our EPS estimates and expect CBK to deliver FY25E RoA/RoE of 1.1%/19.5%. Reiterate BUY with a TP of INR570. 

Motilal Oswal

(IOCL IN, Mkt Cap USD24.4b, CMP INR144, TP INR165, 15% Upside, Buy) 

- IOCL reported beat on our EBITDA at INR155b (up 2.9x YoY), led by better-than-expected GRM at USD13.5/bbl (vs. our est. of USD10.2/bbl) and higher marketing GM at INR4.5/lit. (vs. our estimate of INR3.1/lit). 

- Refining throughput came in line with our estimate at 18.5mmt (up 4% YoY). In the marketing segment, domestic sales volumes were also in line with our estimate at 23.3mmt (up 1% YoY). 

- Singapore GRM has rebounded to USD7.2/bbl in 4QFY24 till date from USD5.5/bbl in 3QFY24, which may lead to an improvement in the refining performance in the coming quarter. 

- OMCs are estimated to be generating a marketing margin of INR11/8.6 per lit on petrol/diesel in 4QFY24 till date. However, margins may be affected by retail fuel price cuts in the wake of upcoming elections and/or a rise in crude oil prices due to quota management by OPEC+. 

- Petchem sales volumes increased 80% YoY to 0.67mmt (0.37mmt in 3QFY23). The Petchem segment reported an EBIT loss of INR2b. Petchem margins have increased 69%/89% for PE/PP in 4QFY24’td, which may lead to an improvement in the petchem segment in the upcoming quarter. 

- Owing to robust performance in 119MFY24FY24, we increase our EBITDA/PAT estimates by 12%/16% for FY24, while keeping FY25-26 estimates broadly unchanged. The stock trades at 8.6x consolidated FY25E EPS and 1.1x FY25E P/BV. We reiterate our BUY rating on the stock, valuing it at 1.2x Dec’25E P/BV

Andhra Cement: The company approved a proposal to enhance the clinker manufacturing capacity from 1.65 MTPA to 2.3 MTPA and also the cement grinding capacity from 1.82 MTPA to 3 MTPA.

Over six dozen companies including ACC, Tata Technologies, Vedanta, JSW Steel, Punjab National Bank, SBI Life, SBI Cards, IEX, Equitas SFB, AU Small Finance Bank and Adani Power will declare their quarterly results for the period ended December 2023 on Thursday.

Red Sea issues dent volumes; PAT supported by margin expansion

Gravita India (GRAV)’s Q3FY24 volumes were affected by Red Sea Houthi issues, which spiked freight rates, resulting in halt in Europe flows and diversion to India. The Indian market with further refined & value-added products, however, helped in clocking better margins. Mgmt. believes Red Sea issues may continue for 2-3 months, and even prolong; hence newer markets in Asia would be tapped and GRAV’s 25% revenue/35% PAT CAGR guidance until FY27 remains intact. We now expect 6% overall sales volume growth in FY24, but FY25 should see acceleration, with CAGR stabilizing at ~25%. We lower EPS for FY24E/25E by 6% each and for FY26E by a modest 3%. However, we raise our TP by 2% to Rs1,325/share, retaining our 23x target P/E and rolling over to Dec-25 estimates. We reiterate our BUY rating on GRAV 

Healthy margin performance; exports commentary stays muted

BJAUT’s Q3 margin performance was healthy (up 27bps QoQ to 20.1%, on better mix, operating leverage). Domestic 2W recovery continues, and is broadening (refer to ‘2Ws to re-rate further – ‘TINA’ factor at play’); however, exports revival is yet to pick up meaningfully – with commentary staying muted. Further, the best of the 3W rebound from the Covid-affected base is now behind (with E-3W emergence a structural threat to BJAUT’s most lucrative business division). Amid the sharp run-up in valuations (now over 1SD above LTA), we retain REDUCE with unchanged TP of Rs6,800 (20x its core FY26E multiple + Rs800 cash/investment per share), building-in ~13%/~12% volume/EPS CAGR over FY24E-26E (our estimates are largely unchanged). We prefer TVSL in 2Ws (similar business model with bottom-up share gains, margin triggers) 

Rupee Bond Deals Reported/Updated on Jan. 24:

* Muthoot Finance Seeks Bids for Up to INR7.9b 5Y Bonds on Jan. 29

* Summit Digitel Seeks Bids for Up to INR6.5b 5Y Bonds on Jan. 29

* Piramal Capital Seeks Bids for Up to INR2b Tap of floating February 2025 Bonds on Jan. 29

* Earlysalary Services Seeks Bids for Up to INR1b August 2025 Bonds on Jan. 29

Rupee Bond Bidding Completed on Jan. 24:

* Bank of Baroda Priced INR50b 10Y Infra Bonds at 7.57%

Rupee Bond Payins Completed on Jan. 24:

* SBI Cards Sells INR5.25b 10Y Bonds

* Indostar Capital Sells INR3.25b September 2025 Bonds

* Tata Capital Housing Sells INR3b Tap of March 2027 Bonds

* Tata Projects Sells INR2.5b June 2027 Bonds

* NIIF Infrastructure Finance Sells INR2.05b Two-Part Bond

Rupee Bond Deals to Be Watched on Jan. 25:

* M&M Financial Seeks Bids for Up to INR30b March 2027 Bonds

* SMFG India Credit Seeks Bids for Up to INR10b February 2025 and July 2025 Bonds

* PCBL Seeks Bids for Up to INR7b 5Y Bonds

* Advaya Chemical Seeks Bids for Up to INR5.5b 5Y Bonds

* ICICI Home Seeks Bids for Up to INR5.5b March 2026 Bonds

* Axis Finance Seeks Bids for Up to INR5b 5Y Bonds

* L&T Finance Holdings Seeks Bids for Up to INR3b March 2029 Bonds

• ZEEL

ICICI Bank’s PAT/PPoP was 8/4 per cent above BNPP estimates primarily on account of lower-than-expected opex and credit costs. The Cost-to-income ratio remained stable at 40.6 per cent, down 30 bps q-o-q due to lower employee additions in 3Q while other opex costs were driven by digital and technology expenses.

Can Fin Homes saw a mixed quarter; NIM was 8bps higher to our expectation due to lower funding cost, while loan growth and asset quality were weaker. Credit flow was softer at ₹1,880 crore and missed PL estimates by 21 per cent due to centralisation of disbursals and reconciliation.

The outlook is bullish for KEI Industries. The stock has surged about 10 per cent on Wednesday has taken the share price well above the key resistance level of ₹3,165. Prior to this rise the stock has formed a strong base above ₹3,000.

Here are the intraday supports and resistances for widely traded stocks such as HDFC Bank, Infosys, Reliance Industries, ITC, ONGC and SBI

Nifty has recovered very well on Wednesday. It can rise to 21,500-21,600 from here. But thereafter there are chances to see a fresh fall. So, we suggest everyone to be careful and not remain overly bullish.

Check out the latest bl.Today’s Pick episode to learn more.

US Manufacturing PMI A: 50.3 (F: 47.6 P: 47.9)

US Services PMI :A: 52.9 (F: 51.4 P: 51.4)

Data supportive for U.S. Dollar.

Turnover: (NSE + BSE) 

Cash Volume: 134520.01 + 10957.83 Total: 145477.84 

F&O Volume: 547625.58 + 976944.38 Total: 1524569.96 

Provisional Cash Rs. In Crs. 

FII/FPI: NET SELL: -6934.9 

(27,230.93 - 34,165.86) 

DII: NET BUY: +6012.7 

(15,493.23 - 9,480.56)

18.45 EURO Main Refinancing Rate (Expected: 4.50% versus Previous: 4.50%)

19.00 U.S. Advance GDP q/q (Expected: 204K versus Previous: 202K)

19.00 U.S. Unemployment Claims (Expected: 204K versus Previous: 202K)

19.00 U.S. Durable Goods Orders m/m (Expected: 204K versus Previous: 202K)

19.15 EURO ECB Press Conference

Economic Calendar - 26.01.2024

20.30 U.S. Core PCE Price Index m/m (Expected: 0.2% versus Previous: 0.1%)

20.30 U.S. Pending Home sales m/m (Expected: 1.6% versus Previous: 0.0%)

Comcast Corporation (Pre market) (Sector – Technology)

Union Pacific Corporation (Pre market) (Sector – Logistics)

NextEra Energy, Inc. (Pre market) (Sector – Energy)

Marsh & McLennan Companies, Inc. (Pre market) (Sector – Financial)

Blackstone (Pre market) (Sector – Financial)

Sherwin-Williams Company (Pre market) (Sector – Chemical)

Northrop Grumman Corporation (Pre market) (Sector – Defence)

Humana Inc. (Pre market) (Sector – Healthcare)

Valero Energy Corporation (Pre market) (Sector – Energy)

STMicroelectronics N.V. (Pre market) (Sector – Technology)

Dow Inc. (Pre market) (Sector – Chemical)

Xcel Energy Inc. (Pre market) (Sector – Energy)

Nokia Corporation (Pre market) (Sector – Technology)

Southwest Airlines Company (Pre market) (Sector – Aviation)

American Airlines Group, Inc. (Pre market) (Sector – Aviation)

Visa Inc. (Post market) (Sector- Financial)

Intel Corporation (Post market) (Sector- Technology)

T-Mobile US, Inc. (Post market) (Sector- Technology)

KLA Corporation (Post market) (Sector- Technology)

Capital One Financial Corporation (Post market) (Sector- Financial)

L3Harris Technologies, Inc. (Post market) (Sector- Technology)

Fair Isaac Corporation (Post market) (Sector- Technology)

Weyerhaeuser Company (Post market) (Sector- Realty)

Western Digital Corporation (Post market) (Sector- Technology)

Tesla’s Q4 earnings miss estimates, prompting a cautious outlook for 2024 production. Despite a 3% YoY rise in Q4 revenue, stock slides amid concerns. Full-year growth rate ‘notably lower’ than 2023, impacted by Gigafactory Texas focus.

Tesla After Trading hours fell by 6 percent

Fuelled by optimism in artificial intelligence and investments in OpenAI, Microsoft has positioned itself as the world’s second most valuable company, closely trailing Apple, while leading the tech race against industry giants

The S&P 500 secured its fourth consecutive record close, propelled by Netflix’s stellar quarterly results and ASML’s positive chipmaker report. Microsoft reached a historic high, surpassing a $3 trillion market value. The Nasdaq approached its January 2022 peak. Netflix surged 10.7%, affirming streaming dominance. The S&P 500 communication services index, featuring Netflix, hit a two-year high. Alphabet and Meta Platforms, part of the impactful Magnificent Seven, gained over 1%. The S&P 500 closed at 4,868.55 points, with declining stocks outnumbering risers.