KEY HIGHLIGHTS
Yield On The 10-Year Bond Ends Flat
The yield on the 10-year bond closed flat at 7.08% on Thursday.
Source: Bloomberg
Rupee Flat Against U.S Dollar
The local currency closed flat at Rs 82.96 against the U.S dollar.
Source: Bloomberg
Sensex, Nifty End Lower As Banks Drag After RBI Maintains Status Quo: Closing Bell
Benchmark indices lost 1% today after RBI decided to keep the benchmark interest rate unchanged as banks and ITC dragged.
The Nifty 50 lost 212.55 points or 0.97% to close at 21,717.95 and the Sensex lost 723.57 points or 1% to close at 71428.43 . Intraday, the Nifty 50 fell as much as 1.21% and the Sensex fell as much as 1.28 %.
"Once again the level of 22,000 worked well for the Bears as after the status-quo decision by the MPC committee, a steep fall was seen in the private banking and FMCG stocks which led to a sharp correction in the Index as well," said Aditya Gaggar, director of Progressive Shares.
He added that on the daily chart, the Index has made a big negative candle but defended the level of 21,700 as well as 21DMA support which can be considered as immediate support while the upside seems to be capped at 21,900. "In case of a decisive breakdown, the correction may extend to 21,500 while on the higher side, a convincing close above 22,100 is a must for resuming its uptrend."
Shares of HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Kotak Mahindra Bank Ltd., and Axis Bank Ltd. dragged the Nifty.
Meanwhile, those of Reliance Industries Ltd., State Bank Of India Ltd., Tata Consultancy Services Ltd., Power Grid Corp. of India Ltd., and Bharat Petroleum Corp. Ltd. limited the fall.
Sectoral indices ended mixed with Nifty PSU Bank and Nifty Media gaining 2% whereas Nifty FMCG and Nifty Financial Services ended 2% lower.
Broader markets ended on a mixed note on BSE. The S&P BSE Midcap rose 0.08%, and Smallcap fell 0.44%.
On BSE, 12 out of 20 sectors fell, while six rose. The S&P BSE FMCG index fell the most among sectoral indices.
Market breadth was skewed in favour of sellers. Around 2,176 stocks rose, 1,666 stocks fell, and 103 stocks remained unchanged on BSE.
Garware Hi Tech Locked In Upper Circuit
The scrip rose as much as 20% to hit a fresh life high of 1,906.50 apiece. It recently hit life high on Jan. 24. This compares to a 0.95% decline in the NSE Nifty 50 Index at 3:10 pm.
It has risen 187.82% in the last 12 months. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 72.
Page Industries Q3 Results Key Highlights (Consolidated, YoY)
Revenue at Rs 1,228.8 crore vs Rs 1,200 crore, up 2.4%
Ebitda at Rs 229.71 crore vs Rs 192.75 crore, up 19.17%
Margin at 18.69% vs 16.06%
Net profit at Rs 152.4 crore vs Rs 123.7 crore, up 23.2%
Balrampur Chini Q3 Results Key Highlights (Consolidated, YoY)
Revenue up 25.4% at Rs 1,230.4 crore vs Rs 981.2 crore
EBITDA up 39% at Rs 184.5 crore vs Rs 132.8 crore
Margin at 15% vs 13.5%
Net profit up 97.2% at Rs 91.3 crore vs Rs 46.3 crore
GTL Infrastructure Q3 Results Key Highlights (Consolidated, YoY)
Revenue down 6.2% to Rs 337.5 crore from Rs 359.8 crore
EBITDA of Rs 80.89 crore vs EBITDA loss of Rs 129.9 crore
Margin at 24%
Net loss of Rs 194.6 crore vs loss of Rs 463.6 crore
ASK Automotive To Enter Into Two-Wheeler Alloy Wheels Segment
ASK Auto Automotive will enter into two-wheeler alloy wheels segment.
The company partnered up with LIOHO Machine Works Limited, Taiwan to develop a new product line, and technical assistances.
The partnership is spanned over seven years.
Source: Exchange Filings
Zydus Lifesciences Gets U.S. FDA Approval Decadron Tablets
Zydus Lifesciences received approval from the U.S. Food and Drug Adminstration for Dexamethasone Tablets.
Alert: Dexamethasone Tablets is a generic of Decadron Tablets
Source: Exchange Filing
Wonderla Holidays Q3 Results Key Highlights (Consolidated, YoY)
Revenue up 9.2% to Rs 123.6 crore from Rs 113.2 crore
Ebitda fell 3.4% to Rs 54.51 crore from Rs 56.45 crore
Margin fell 576 bps to 44.1% from 49.9%
Net profit fell 4.1% at Rs 37.36 crore from Rs 38.94 crore
Thermax Q3 FY24 (Consolidated, YoY)
Revenue at Rs 2,324.4 crore vs Rs 2,049.3 crore, up 13.4%
Ebitda at Rs 187.45 crore vs Rs 161.09 crore, up 16.4%
Margin at 8.06% vs 7.86%
Net profit at Rs 237.1 crore vs Rs 126.4 crore, up 87.6%
European Markets Advance
NDR Auto Components Signs Pact With Hyundai Transys
In pact to supply seat-trim to KIA
Source: Exchange Filing
Precision Wires India Q3 FY24 (Consolidated, YoY)
Revenue at Rs 804.83 crore vs Rs 703.67 crore, up 14.37%
Ebitda at Rs 38.67 crore vs Rs 32.69 crore, up 18.29%
Margin at 4.8% vs 4.64%
Net profit at Rs 18.05 crore vs Rs 15.14 crore, up 19.22%
Garware Hi-Tech Q3 FY24 (Consolidated, YoY)
Revenue up 39.9% at Rs 453.6 crore vs Rs 324.4 crore
EBITDA up 67% at Rs 75.1 crore vs Rs 44.98 crore
Margin up 268 bps at 16.6% vs 13.9%
Net profit up 83.8% at Rs 55.88 crore vs Rs 30.4 crore
Mrs Bectors Food Q3 FY24 (Consolidated, YoY)
Revenue at Rs 428.8 crore vs Rs 367.9 crore, up 16.6%
Ebitda at Rs 61.2 cr vs Rs 51.2 cr, up 19.4%
Margin at 14.3% vs 13.9%, up 34 bps
Net profit at Rs 34.6 crore vs Rs 27.7 crore, up 24.9%
BEML Q3 FY24 (Consolidated, YoY)
Revenue up 1% at Rs 1,047 crore vs Rs 1,037 crore
EBITDA down 37.5% at Rs 55.88 crore vs Rs 89.44 crore
Margin down 328 bps at 5.3% vs 8.6%
Net profit down 27.3% at Rs 48.2 crore vs Rs 66.3 crore
Yes Bank Clarification
Clarifies on media report of SBI selling stake in bank via block deal
Calls news report 'speculative', says bank not involved in any negotiations with respect to the news item
Source: Exchange filing
CarTrade Tech Q3 FY24 (Consolidated, QoQ)
Revenue up 15.5% at Rs 138.6 crore vs Rs 120 crore
EBITDA up19.7% at Rs 25.35 crore vs Rs 21.18 crore
Margin at 18.3% vs 17.6%
Net loss of Rs 23.55 crore vs profit of Rs 5.04 crore
Saksoft Q3 FY24 (Consolidated, QoQ)
Revenue at Rs 192.84 crore vs Rs 190.41 crore, up 1.27%
Ebit at Rs 30.13 crore vs Rs 31.12 crore, down 3.19%
Margin at 15.62% vs 16.34%, down 71 bps
Net profit at Rs 22.54 crore vs Rs 25.28 crore, down 10.83%
3M India Q3 FY24 (Consolidated, YoY)
Revenue at Rs 1,005.6 crore vs Rs 993 crore, up 1.3%
Ebitda at Rs 178.5 crore vs Rs 170.6 crore, up 4.7%
Margin at 17.75% vs 17.17%, up 57 bps
Net profit at Rs 135.23 crore vs Rs 124.8 crore, up 8.4%
RattanIndia Q3 FY24 (Consolidated, YoY)
Revenue up 43.4% at Rs 1,653.5 crore vs Rs 1,152.8 crore
EBITDA of Rs 23.45 crore vs EBITDA loss of Rs 11.12 crore
Margin at 1.41%
Net profit of Rs 187.3 crore vs loss of Rs 34.6 crore
HMA Agro Q3 FY24 (Consolidated, YoY)
Revenue up 62.9% at Rs 1,251.7 crore vs Rs 768.5 crore
EBITDA up 22.4% at Rs 49.1 crore vs Rs 40.13 crore
Margin down 129 bps at 3.9% vs 5.2%
Net profit up 75.4% at Rs 49.1 crore vs Rs 28 crore
TRF Locked In Upper Circuit In Second Session
Shares of TRF Ltd. were locked in upper circuit for the second consecutvie day on withdrawal of merger with Tata Steel. In addition the NCLT has allowed the comapny to withdraw the merger plan, the company said in an exchange filing on Thursday.
The scrip rose as much as 20.25% to 394,05 apiece, the highest level since Feb. 7, 2023. This compares to a 0.63% decline in the NSE Nifty 50 Index as of 1:20 p.m.
It has risen 136.31% in the last 12 months. Total traded volume so far in the day stood at 1.1 times its 30-day average. The relative strength index was at 86 indicating it was overbought.
ITC Falls Over 4% As BAT Looks To Monetise Some Stake
British American Tobacco, ITC's largest shareholder which holds 29% stake in the company, seeks to 'monetise' some of its ITC stake, a statement by BAT said.
"We have been actively working for some time on completing the regulatory process required to give us the flexibility to monetise some of our shareholding and will update you at the earliest opportunity," the statement said.
The scrip fell as much as 5.52% to Rs 462.70 piece, the lowest level since May 19. It pared gains to trade 3.2% lower at Rs 417.90 apiece, as of 1:20 p.m. This compares to a 0.6% decline in the NSE Nifty 50 Index.
It has fallen 11.38% in the last twelve months. Total traded volume so far in the day stood at 2.6 times its 30-day average. The relative strength index was at 24.80, indicating that the stock may be oversold.
Greaves Cotton Q3 FY24 (Consolidated, YoY)
Revenue up 29.6% at Rs 665.4 crore vs Rs 513.5 crore
EBITDA at Rs 35.4 crore vs Rs 3.11 crore
Margin up 471 bps at 5.32% vs 0.6%
Net profit at Rs 45.6 crore vs loss of Rs 5.7 crore
Zydus Wellness Q3 FY24 (Consolidated, YoY)
Revenue down 3.2% at Rs 403.2 crore vs Rs 416.4 crore
EBITDA down 55.7% at Rs 12.9 crore vs Rs 29.1 crore
Margin down 378 bps at 3.2% vs 7%
Net profit down 98.5% at Rs 0.3 cr vs Rs 19.6 crore
Nifty, Sensex Trade Lower As IT Stocks, HDFC Bank, ICICI Bank Drag: Midday Market Update
The benchmark equity indices erased all early gains to trade lower through midday on Wednesday as Infosys Ltd., HDFC Bank Ltd. and ICICI Bank Ltd. dragged.
As of 11:58 a.m., the NSE Nifty 50 was 57.65 points or 0.26% down at 21,871.75, while the S&P BSE Sensex was 239.98 points or 0.33% lower at 71,946.11.
The Nifty hit intraday high of 22,053.30 and the Sensex touched 72,559.21 so far in the day.
"In recent sessions, the Nifty has largely traded sideways, reflecting trader uncertainty about its next move," Shrey Jain, chief executive officer of SAS Online, said.
The Nifty Bank lacks a clear trend, awaiting a breakout to determine its direction. Support is established around 45,500, with immediate resistance at 46,000, according to Jain.
A break above 46,000 could signal a move towards 46,500, with significant open positions in the 46,000, potentially leading to short covering and upside momentum, Jain said.
Infosys, HDFC Bank, ICICI Bank, Tata Consultancy Services Ltd. and Power Grid Corp. weighed on the indices.
State Bank of India, Axis Bank Ltd., Reliance Industries Ltd., Bajaj Finance Ltd. and HDFC Life Insurance Co. limited the losses.
Six out of the 12 sectors on the NSE were trading in the red, with the Nifty IT being the top loser. The Nifty Oil & Gas and Metal surged to a lifetime high.
The broader markets outperformed the benchmark indices as the BSE Midcap rose 0.20% and the Smallcap gained 0.37%.
Fourteen out of the 20 sectors on the BSE gained, while Information Technology fell the most.
The market breadth was skewed in favour of the buyers as 2,101 stocks rose, 1,625 fell and 142 remained unchanged on the BSE.
Paytm Action After Months Of Bilateral Talks, Says Deputy Governor Swaminathan
We don’t comment on individual entities, says Deputy Governor Swaminathan on the Paytm saga.
This is a supervisory action on regulatory entity for persistent non-compliance.
Supervisory action is usually preceded by months of bilateral conversations.
Incumbent on regulator to protect interest of ultimate consumer.
General Insurance Shares Jump
Shares of General Insurance Corporation Ltd. rose on Thursday after it reported a jump in the third quarter consolidated net profit.
The scrip rose as much as 15.81% to hit fresh life high of 467.80. The last life high was on Oct. 24, 2017. It pared gains to trade 12.89% higher at Rs 456 apiece, as of 11:18 a.m. This compares to a 0.82% decline in the NSE Nifty 50 Index.
It has risen 185.80% in the last 12 months. Total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 78 indicating it was overbought.
Out of five analysts tracking the company, two maintain a 'buy' rating and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 190.5%.
Nifty Bank Falls Over 1%
Bank stocks dragged the Nifty 50 index the most by 83.45 points out of the 167.70-point fall after the outcome of monetary policy meeting.
According to market expert Ajay Bagga, "Inflation issues remain even though inflation is trending downwards."
He noted two surprises from the hawkish commentary which include the key fact statement on loans, which might hurt margins, and that the liquidity issues were not addressed.
Shares of ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., and Kotak Mahindra Bank Ltd., dragged the Nifty Bank index the most.
Apollo Tyres Hits Lifetime High
Shares of Apollo Tyres hit life high on NSE after the company's net profit in October-December surged over 78% year-on-year basis.
Apollo Tyres posted Rs 496.63 crore net profit in Q3FY24 from Rs 278.79 crore in the corresponding period of previous year.
However, the scrip erased all its gains and fell to the lowest level since Feb 5, 2024 after the initial positive sentiment from its quarter three performance faded.
LIC Hits Highest Level Since Listing
Shares of Life Insurance Corp of India jumped to hit their lifetime high ahead of the company's quarterly results due later in the day.
Borosil Renewables Shares Tank 15% On Net Loss In Q3
Shares of Borosil Renewables Ltd. fell over 15% on Thursday to the lowest in nearly three weeks after it posted a consolidated net loss in the third quarter.
The solar glass manufacturer reported a loss of Rs 15.9 crore in the quarter ended December in comparison with a profit of Rs 5.8 crore in the year-ago period, according to an exchange filing on Wednesday.
Nifty Bank Turns Negative
TCS In Multi-Year Pact With Enento group
In pact to modernise IT infrastructure, digital workplace
Source: Exchange Filing
Indian Overseas Bank Has 11.1 Lakh Shares Change Hands
11.1 lakh shares changed hands in a large trade
0.01% equity changed hands at Rs 74.5 apiece
Buyers and sellers not known immediately
Source: Bloomberg
Star Cement Hits Lifetime High
Shares of Star Cement Ltd surged to their highest level since its listing after the company posted better than expected net profit in October-December.
The company's net profit rose 39.1% year-on-year to Rs 73.52 crore in quarter three of FY24, beating Rs 52.87 crore net profit estimated by analysts in a Bloomberg's survey.
Tata Consumer Falls After Q3 Results
Shares of Tata Consumer Products Ltd declined over 2% after the company's net profit in the quarter ended in December fell over 17% on year, missing analysts' estimates due to back of loss.
Tata Consumer's net profit declined to 17.26% on year to t Rs 301.5 crore, compared to Rs 349.84 crore estimated by analysts in a Bloomberg's survey.
The company recorded loss of Rs 91.53 crore in October-December quarter.
Bank of America Reiterates Neutral Rating For Nestle
Price target of Rs. 2,700
Slower growth in Q4 revenue driven by pricing and mix
Some pricing/distribution upside could taper going forward
Volume rebound may be key to sustain growth
As company approaches its medium term target it may get into consolidation mode
Sensex, Nifty Recover From Fall After MPC's Decision
Nifty 50 and Sensex recovered after falling as much as 0.2% each following the monetary policy committee's decision to keep the interest rate unchanged in the sixth consecutive meeting.
Most Nifty Bank Stocks Gain
Rupee Strengthens Against The U.S. Dollar As RBI Keeps Policy Rates Unchanged
The local currency strengthened 5 paise to trade at Rs 82.92 against the U.S dollar on Thursday.
It closed at 82.97 on Wednesday.
Source: Bloomberg
Yield On The 10-Year Bond Flat As RBI Keeps Policy Rates Unchanged
The yield on the 10-year bond trade flat at 7.07%.
Source: Bloomberg
Cummins India Hits Life High After Q3 Results
Shares of Cummins India Ltd. jumped to hit its lifetime high after the company announced its results for the quarter ended December. Both the company's revenue and net profit beat Bloomberg estimates.
Cummins India Q3 FY24 (Consolidated, YoY)
Revenue up 16.78% at Rs 2,509.79 crore vs Rs 2,148.99 crore (Bloomberg estimate Rs 2,281.45 crore).
Ebitda up 35.5% at Rs 510.92 crore vs Rs 377.05 crore (Bloomberg estimate Rs 366.65 crore).
Margin up 281 bps at 20.35% vs 17.54% (Bloomberg estimate 16.10%).
Net profit up 20.56% at Rs 498.91 crore vs Rs 413.8 crore (Bloomberg estimate Rs 359.15 crore).
The scrip rose as much as 10% to Rs 2,639.50 piece, its lifetime high level. It pared gains to trade 5.6% higher at Rs 2,534.90 apiece, as of 10:01 a.m. This compares to a 0.17% advance in the NSE Nifty 50 Index. It has risen 72.75% in the last twelve months.
Landmark Cars Gets Letter Of Intent From MG Motor
Gets letter of intent for opening a new dealership in Mumbai.
Source: Exchange filing
Nomura Maintains Reduce on Berger Paints at Rs 515 Target On Rich Valuations, Intense Competition
Q3 7.7% YoY revenue growth higher than peers, in line with estimates
Only paint firm with faster growth in Tier 3 & 4 market vs Tier 1 & 2
2.7% price cut to impact value growth in near term
GPM expansion of 638bp in-line with estimate
Expect moderation in A&P spends going forward to support margins
Cut FY24F/25F/FY26 EPS by 3%/5%/3%
Nomura Maintains BUY On Kansai Nerolac Paints With Rs 425 Target
Q3 6% YoY revenue growth in line with brokerage estimates
KNPL expects double-digit volume growth in Decorative to sustain in FY25
Price cuts of 2.7% price cuts to moderate value growth in near term
Cut FY24F/25F/26F EPS by 1%/4%/3% to factor in Q3 results
Key risk: Slower decorative, industrial paints volume growth
Powergrid Shares Jump After Q3 Results
Shares of Power Gird Ltd rose on Thursday after its net profit in the third quarter beats Bloomberg estimates.
The scrip rose as much as 5.78% to 283.45 apiece, the highest level since Feb. 6. It was trading 4.59% higher at Rs 280.25 apiece, as of 9:33 a.m. This compares to a 0.32% advance in the NSE Nifty 50 Index.
It has risen 75.44% in the last 12 months. Total traded volume so far in the day stood at 4.4 times its 30-day average. The relative strength index was at 72 indicating it was overbought.
Out of 20 analysts tracking the company, 11 maintain a 'buy' rating, 4 recommend a 'hold,' and 5 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 77%.
Kalyan Jewellers Has 4.63% Equity Change Hands
4.63% equity changed hands in multiple pre-market large trades
Buyers and sellers not known immediately
Source: Bloomberg
Six Stocks In Nifty 50 Hit Fresh Record Highs
HCL Tech hits fresh record high at Rs 1,639.9
Cipla hits fresh record high at Rs 1,454
SBI hits fresh record high at Rs 684.55
Sun Pharma hits fresh record high at Rs 1,505
Dr Reddy's Lab hits fresh record high at Rs 6,219.95
BPCL hits fresh record high at 621.7
Paytm Down Over 9%
The stock fell as much as 9.32% to Rs 450. It is trading 4.90% lower at Rs 471.95 at 9:21 a.m. This compares to a 0.35% advance in the NSE Nifty 50.
The scrip of Paytm operator One97 Communications Ltd. extended gains for the second day to hit the upper circuit of 10% on Wednesday after being locked in the lower circuit for three consecutive sessions in its worst rout since listing.
Of the 15 analysts tracking the company, six maintain a 'buy' rating, four recommend a 'hold,' and five suggest a 'sell', according to Bloomberg data. The average 12-month analysts' price target implies an upside of 47.2%.
Nifty, Sensex Open Higher Ahead Of MPC Outcome: Opening Bell
Benchmark equity indices opened higher ahead of the outcome of monetary policy meeting due later in the day.
The gains were led by shares of ICICI Bank, Power Grid Corp. of India, and State Bank of India.
At pre-open, the S&P BSE Sensex Index was up 318.82 points, or 0.44%, at 72,470.82 while the NSE Nifty 50 was at 22,009.65, up 79.15 points or 0.36%.
On the higher side crossover of at 22100 will extend the up move to 22,400 levels while the support will move higher to 21,700 being the week low, according to Vikas Jain, Senior Research Analyst at Reliance Securities.
Jain said, "RSI is witnessing and trending above the average line and other key technical indicators are sloping upwards along with the positive momentum in trends in the index."
Shares of Power Grid Corp. of India Ltd., Infosys Ltd., Tata Consultancy Services Ltd., HCLTechnologies Ltd., and State Bank of India contributed the most to the gains.
Meanwhile, those of ITC Ltd., Maruti Suzuki Ltd., Tata Consumer Products Ltd., Bajaj Finance Ltd., and Tata Motors Ltd., capped the upside.
Most sectoral indices were up with Nifty Media and Nifty PSU Bank gaining by over 1%. Nifty FMCG and Nifty Realty fell.
The broader markets outperformed as the BSE MidCap rose 0.98%, while the BSE SmallCap was 0.34% higher. Eighteen out of the 20 sectors compiled by the BSE advanced, while two declined.
The market breadth was skewed in the favour of buyers. As many as 1,870 stocks advanced, 1,123 declined and 105 remained unchanged on the BSE.
Nifty, Sensex Higher At Pre-Open
At pre-open, the S&P BSE Sensex Index was up 318.82 points, or 0.44%, at 72,470.82 while the NSE Nifty 50 was at 22,009.65, up 79.15 points or 0.36%.
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened 3 paise to open at 82.94 against the U.S dollar on Thursday.
It closed at 82.97 on Wednesday
Source: Bloomberg
Yield On The 10-Year Flat Ahead Of MPC Policy
The yield on the 10-year bond opened flat at 7.07% on Thursday
Source: Bloomberg
Jefferies On Diversified Industrials
55% of 11 covered stocks beat/met Q3 expectations
Margin rise of 70 bps on easing commodity prices, except for UPL
Pipes saw highest YoY margin rise of 220bps on stabilized PVC prices
Discretionary demand softness affected B2C mix for Havells, Polycab, and Whirlpool
Bullish on capex & housing theme, and EMS
Top Picks: Supreme Industies, Amber Enterprise, Kajaria Ceramics
Cautious on White Goods- Havells, Whirpool and high-PE stocks- Dixon Tech and Astral
Sterling & Wilson Australian Customer Invokes Outstanding Bank Guarantee
Australian customer invokes outstanding bank guarantee amounting to Rs 89.7 crore
Complete funds have been transferred to the guarantee issuing bank
Australian customer issued a notice terminating EPC and O&M contract
Notice from Australian customer strongly refuted by co's subsidiary
Subsidiary will initiate legal actions against Australian customer
Source: Exchange filing
Brokerages On Nestle
Citi Retains BUY on Nestle India
Target Price of Rs 2,900
PAT grew 24%, ahead of estimates, driven by lower tax rate
Price increases in baby foods, coffee and soft commodity to drive earnings growth
Management expects milk prices to remain stable
Will continue to receive services of NBS Division with payment at arm’s length
Motilal Oswal Maintains BUY On Nestle India; Target At Rs 2400 On Expensive Valuations
Q3 performance in line with estimates
Packaged food penetration improvement in tier-2 and rural markets
Operating costs not higher vs peer due to safety form local competition
Expects to sustain EBITDA margin at 25% for FY25/FY26
Citi Maintains Buy On Delhivery At Rs 550 Target Price
Delhivery is in Citi's India top mid- cap pick
Delhivery’s e-commerce positioning improving on increased focused on D2C and pricing environment
Delhivery’s relatively strongest proposition are its mid-mile capabilities
Q3 e-commerce yields up 8% QoQ on no price hikes were undertaken
3Q share of higher-weight parcels higher than other quarters
KEC International Bags Orders Worth Rs 1,175 Crore
Orders across its T&D, civil construction and solar businesses from Indian and American clients
Source: Exchange filing
S&P Global Downgrades UPL's Long-Term Rating
Downgrades long-term rating on UPL Corp to 'BB' from 'BB+' earlier
Rating downgraded on weak cash flow and poor operating environment
Source: S&P
Motilal Oswal Maintains BUY On Trent; Raises Target to Rs 4,200
Q3 shows stellar performance in weak market
Healthy scale up within Zudio offers runway for growth over next 3-5 years
Grocery segment presents huge opportunity for growth
Expect standalone revenue/EBITDA CAGR of 30%/31% over FY24-26
Emkay Retains Reduce On Uno Minda
Target Price of Rs 650
Q3 results in-line with slight acceleration in revenue outperformance vs. key client
Anticipates healthy 16% CAGR over FY23-26e
Expects growth at 1.5x of underlying industry
Expects further share gains in 2W lighting, alloy wheels, seating and airbags
China Consumer Prices Fall At The Fastest Pace Since Sept 2009
Consumer prices fall 0.8% YoY in Jan vs estimates of a 0.5% fall
Producer prices fall 2.5% YoY vs estimates of a 2.6% fall
Source: Bloomberg
Mangalore Chemicals Announce Merger With Paradeep Phosphates, Arbitrage Implies 18% Upside
Mangalore Chemicals announce Merger With Paradeep Phosphates
Investors to get 187 shares of PPL for every 100 equity shares of MCFL
Swap ratio implies an upside potential of 18%
General Insurance Corp Q3 Earnings FY24 (Consolidated, YoY)
Revenue at Rs 7,780.2 crore vs Rs 8,653.4 crore, down 10.1%
Net profit at Rs 1,438.8 crore vs Rs 1,232.3 crore, up 16.8%
Solvency ratio at 2.94 vs 2.38
Global Cues
U.S. Dollar Index at 103.98
U.S. 10-year bond yield at 4.11%
Brent crude up 0.28% at $79.43 per barrel
Nymex crude up 0.27% at $74.06 per barrel
GIFT Nifty was flat at 22,048 as of 7:42 a.m.
Bitcoin was up 0.77% at $44,529.27
F&O Cues
Nifty February futures up by 0.18% to 22,003.7 at a premium of 73.2 points.
Nifty February futures open interest up by 0.54%.
Nifty Bank February futures down by 0.56% to 46,131.9 at a premium of 313.4 points.
Nifty Bank February futures open interest up by 6.06%.
Nifty Options Feb. 8 Expiry: Maximum Call open interest at 22,300 and Maximum Put open interest at 21,900.
Bank Nifty Options Feb. 14 Expiry: Maximum Call Open Interest at 46,000 and Maximum Put open interest at 46,000.
Securities in the ban period: Ashok Leyland, Balrampur Chini Mills, Delta Corp, Hindustan Copper, India Cements, Indus Tower, National Aluminium, SAIL, UPL, Zee Entertainment Enterprise.
Trading Tweaks
Price band revised from 20% to 10%: UCO Bank, Indian Overseas Bank.
Price band revised from 10% to 5%: Man Industries, Shakti Pumps.
Ex/record date dividend: Shree Cement, Vaibhav Global, Gillette India, Ajanta Pharma, IRB Infrastructure Developers, ITC.
Moved into short-term ASM framework: Swelect Energy Systems.
Moved Out of short-term ASM framework: Allcargo Terminals, Infibeam Avenues.
Block Deals
BSE: Marshall Wace Investment Strategies - Systematic Alpha Plus Fund sold 0.88 lakh shares (0.06%), while Societe Generale bought 0.88 lakh shares (0.06%) at Rs 2,469.35 apiece.
Bulk Deals
Indus Tower: Artisan International Value Fund sold 3.33 crore shares (1.23%) at Rs 215.1 apiece.
Knowledge Marine and Engineering Works: Kanak Sujay Kewalramani sold 3.4 lakh shares (3.14%) at Rs 1,572.03 apiece and Saurabh Mukesh Daswani sold 0.75 lakh shares (0.69%) at Rs 1,602.19 apiece.
Dhanlaxmi Bank: Agnus Capital LLP sold 17.98 lakh shares (0.71%) at Rs 47.98 apiece.
IPO Offerings
Rashi Peripherals: The public issue was subscribed to 1.09 times on day 1. The bids were led by non-institutional investors (1.87 times), retail investors (1.36 times), and a portion reserved for employees (5.42 times) and institutional investors (0.01 times).
Jana Small Finance Bank: The public issue was subscribed to 0.88 times on day 1. The bids were led by non-institutional investors (1.22 times), retail investors (1.20 times), and institutional investors (0.14 times).
Capital Small Finance Bank: The public issue was subscribed to 0.5 times on day 1. The bids were led by non-institutional investors (0.38 times), retail investors (0.67 times), and institutional investors (0.29 times).
Apeejay Surrendra Park Hotels: The public issue was subscribed to 59.66 times on day 3. The bids were led by institutional investors (75.14 times), non-institutional investors (52.41 times), and retail investors (30.35 times).
Stocks To Watch
Rate-sensitive stocks: The RBI will announce the decision of its Monetary Policy Committee meeting on Thursday. Banking and finance, auto, housing and real estate stocks will be in focus.
Welspun Enterprise: The company emerged as the lowest bidder for the development of a 2,000 million-litre per-day water treatment plant from the Brihanmumbai Municipal Corp.
Bharat Petroleum Corp: The company’s joint venture, Petronet LNG, executed a long-term LNG sale and purchase agreement with Qatar Energy for the purchase of approximately 7.5 MMTPA of liquified natural gas on a long-term basis.
Zomato: The company intimated the liquidation of two step-down subsidiaries in Vietnam and the Czech Republic.
ONGC: The company formed a joint venture pact with NTPC Green for renewable energy, Bloomberg reported. The joint venture will focus on offshore wind projects.
Indraprastha Gas: The company signed a Memorandum of Understanding with two technology partners during India Energy Week 2024 to establish CBG plants across Delhi, Haryana, Rajasthan, and Uttar Pradesh.
Ashoka Buildcon: The company received a Letter of Award worth Rs 520 crore from the National Highways Authority of India for a project in Bihar.
Piramal Pharma: The U.S. FDA conducted a pre-approval inspection of the company’s U.S.-based facility from Jan. 29 to Feb. 6 and found three observations.
Action Construction Equipment: The company will purchase land worth Rs 82 crore for further capacity and business expansion.
SJVN: The company received a Letter of Intent from Gujarat Urja Vikas Nigam for a 200 MW solar power project.
Bajaj Alliance: The company reported a total new business premium of Rs 951 crore in January and a gross direct premium of Rs 1,975 crore.
Mangalore Chemicals & Fertilisers Ltd.: The company's board has approved a merger with Paradeep Phosphate Ltd.
Earnings In Focus
3M India, Aarti Industries, Apollo Hospitals Enterprise, Aster DM Healthcare, Astra Microwave Products, AstraZeneca Pharma India, Balmer Lawrie, Balrampur Chini Mills, Black Box, Mrs. Bectors Food Specialities, BEML, Biocon, Bombay Dyeing, Car Trade Tech, Concord Biotech, DCX Systems, Electrosteel Castings, ESAB India, ESAF Small Finance Bank, Escorts Kubota, Gabriel India, Grasim Industries, Greaves Cotton, Garware Hi-tech Films, GTL Infrastructure, Harsha Engineer, Hindustan Construction, Healthcare Global Enterprise, Hikal, HMA Agro Industries, Hindustan Foods, Honeywell Automation, IKIO Lighting, Imagicaaworld Entertainment, Indian Shelter Finance Corp, Ircon International, ITD Cementation, Jai Corp, JK Lakshmi Cement, KNR Construction, Life Insurance Corp, Global Health, MMTC, MSTC, Mukand, NCC, Neuland Laboratories, Orchid Pharma, Page Industries, PaTANJALI foods, Power Finance Corp, Precision Wire, The Ramco Cements, Ratnamani Metals and tubes, Rattanindia Enterprises, Rail Vikas Nigam, Saksoft, Sandhar Technologies, Sandhur Manganese and Iron ores, Schneider Electric Infrastructure, Sharda Motors, Shipla Medicare, Siyaram Silk Mills, SKF India, Surya Roshni, Thermax, Torrent Power, United Breweries, Uniparts India, Venky’s India, Wonderla Holidays, Zomato, and Zydus Wellness.
Earnings Post Market Hours
Tata Consumer Q3 FY24 (Consolidated, YoY)
Revenue up 9.47% at Rs 3,803.9 crore vs Rs 3,474.6 crore (Bloomberg estimate Rs 3,811.86 crore).
Ebitda up 26.13% at Rs 572.4 crore vs Rs 453.8 crore (Bloomberg estimate: Rs 549.46 crore).
Margin expands 198 bps to 15.04% vs 13.06% (Bloomberg estimate: 14.40%).
Net profit down 17.26% at Rs 301.5 crore vs Rs 364.4 crore (Bloomberg estimate: Rs 349.84 crore).
Profit miss on back of loss of Rs 91.53 crore exceptional item.
Lupin Q3 FY24 (Consolidated, YoY)
Revenue up 20.24% at Rs 5,197.41 crore vs Rs 4,322 crore (Bloomberg estimate: Rs 4,861.11 crore).
Ebitda up 94.85% at Rs 1,037.94 crore vs Rs 532.67 crore (Bloomberg estimate: Rs 872.67 crore).
Margin expands 764 bps to 19.97% vs 12.32% (Bloomberg estimate: 18%).
Net profit up 299.5% at Rs 613.12 crore vs Rs 153.47 crore (Bloomberg estimate: Rs 433.29 crore).
Sobha Q3 FY24 (Consolidated, YoY)
Revenue down 21.1% at Rs 684.9 crore vs Rs 868.2 crore (Bloomberg estimate: Rs 942.92 crore).
Ebitda down 16.5% at Rs 74.08 crore vs Rs 88.75 crore (Bloomberg estimate: Rs 104.20 crore).
Margin expands 59 bps to 10.8% vs 10.2% (Bloomberg estimate: 11.10%).
Net profit down 52.6% at Rs 15.08 crore vs Rs 31.81 crore (Bloomberg estimate: Rs 44.62 crore).
Power Grid Corp Q3 FY24 (Consolidated, YoY)
Revenue up 2.55% at Rs 11,549.8 crore vs Rs 11,261.8 crore (Bloomberg estimate: Rs 11,438.44 crore).
Ebitda up 3.22% at Rs 10,212.9 crore vs Rs 9,893.5 crore (Bloomberg estimate: Rs 9,950.12 crore).
Margin expands 57 bps to 88.42% vs 87.85% (Bloomberg estimate: 87%).
Net profit up 10.5% at Rs 4,028.3 crore vs Rs 3,645.3 crore (Bloomberg estimate: Rs 3,731.65 crore).
Star Cement Q3 FY24 (Consolidated, YoY)
Revenue up 5.5% at Rs 651.4 crore vs Rs 617.2 crore (Bloomberg estimate: 649.7 crore).
Ebitda up 37.2% at Rs 148.8 crore vs Rs 108.4 crore (Bloomberg estimate: Rs 129.6 crore).
Margin expands 527 bps to 22.8% vs 17.6%.
Net profit up 39.1% at Rs 73.52 crore vs Rs 52.87 crore (Bloomberg estimate: Rs 64 crore).
Manappuram Finance Q3 FY24 (Consolidated, YoY)
Total income up 34.1% at Rs 2,326.7 crore vs Rs 1,734.5 crore.
Net profit up 46.2% at Rs 575.3 crore vs Rs 393.5 crore (Bloomberg estimate: Rs 467.30 crore).
EPL Q3 FY24 (Consolidated, YoY)
Revenue up 3.2% at Rs 975.1 crore vs Rs 944.9 crore (Bloomberg estimate: Rs 1,030.56 crore).
Ebitda up 23.1% at Rs 183.4 crore vs Rs 149 crore (Bloomberg estimate: Rs 192.20 crore).
Margin expands 303 bps to 18.8% vs 15.8% (Bloomberg estimate: 18.70%).
Net profit up 38.6% at Rs 87.3 crore vs Rs 63 crore (Bloomberg estimate: Rs 67.85 crore).
Religare Enterprise Q3 FY24 (Consolidated, YoY)
Total income up 31.5% at Rs 1,537.2 crore vs Rs 1,168.6 crore.
Net profit at Rs 33.58 crore vs loss at Rs 95.55 crore.
Other income includes interest income tax refund of Rs 25.94 crore.
Kalpatru Projects Q3 FY24 (Consolidated, YoY)
Revenue up 22.3% at Rs 4,896 crore vs Rs 4,004 crore.
Ebitda up 13.4% at Rs 424 crore vs Rs 374 crore.
Margin down 68 bps at 8.7% vs 9.3%.
Net profit up 32.1% at Rs 144 crore vs Rs 109 crore.
Aarti Pharmalabs Q3 FY24 (Consolidated, YoY)
Revenue down 4.9% at Rs 448.7 crore vs Rs 471.6 crore.
Ebitda up 10.9% at Rs 95.68 crore vs Rs 86.25 crore.
Margin expands 303 bps to 21.3% vs 18.3%.
Net profit up 10.6% at Rs 52.76 crore vs Rs 47.69 crore.
Gujarat Narmada Valley Fertilizers and Chemicals Q3 FY24 (Consolidated, YoY)
Revenue down 21.89% at Rs 2,088 crore vs Rs 2,673 crore.
Ebitda down 80.87% at Rs 84 crore vs Rs 439 crore.
Margin down 1240 bps at 4.02% vs 16.42%.
Net profit down 70.24% at Rs 97 crore vs Rs 326 crore.
Borosil Renewables Q3 FY24 (Consolidated, YoY)
Revenue up 34.3% at Rs 330 crore vs Rs 245.8 crore.
Ebitda up 8.2% at Rs 20.24 crore vs Rs 18.71 crore.
Margin down 148 bps at 6.1% vs 7.6%.
Net loss at Rs 15.89 crore vs profit at Rs 5.84 crore.
Gujarat Industries Power Q3 FY24 (YoY)
Revenue down 6.09% at Rs 353.56 crore vs Rs 376.47 crore.
Ebitda up 14.74% at Rs 94.54 crore vs Rs 82.39 crore.
Margin up 485 bps at 26.73% vs 21.88%.
Net profit up 36.71% at Rs 46.62 crore vs Rs 34.1 crore.
Apollo Tyres Q3 FY24 (Consolidated, YoY)
Revenue up 2.68% at Rs 6,595.36 crore vs Rs 6,422.75 crore.
Ebitda up 32.26% at Rs 1,208.1 crore vs Rs 913.37 crore.
Margin expands 409 bps to 18.31% vs 14.22%.
Net profit up 78.13% at Rs 496.63 crore vs Rs 278.79 crore.
Ashoka Buildcon Q3 FY24 (Consolidated, YoY)
Revenue up 35.85% at Rs 2,657.12 crore vs Rs 1,955.82 crore (Bloomberg estimate: Rs 1,752.60 crore).
Ebitda up 21.93% at Rs 596.98 crore vs Rs 489.6 crore (Bloomberg estimate: Rs 166.50 crore).
Margin contracts 256 bps to 22.46% vs 25.03% (Bloomberg estimate: 9.50%).
Net profit down 20.64% at Rs 109.81 crore vs Rs 138.37 crore (Bloomberg estimate: Rs 87.50 crore).
Piccadily Agro Industries Q3 FY24 (Consolidated, YoY)
Revenue up 55.88% at Rs 191.9 crore vs Rs 123.1 crore.
Ebitda up 95.55% at Rs 34.3 crore vs Rs 17.54 crore.
Margin up 362 bps at 17.87% vs 14.24%.
Net profit up 548.69% at Rs 44.89 crore vs Rs 6.92 crore.
Protean eGov Technologies Q3 FY24 (Consolidated, QoQ)
Revenue down 13.51% at Rs 203.86 crore vs Rs 235.69 crore (Bloomberg estimate: Rs 261.40 crore).
EBIT loss at Rs 9.27 crore vs profit of Rs 71.6 crore.
Net profit down 53.53% at Rs 15.23 crore vs Rs 32.78 crore (Bloomberg estimate: Rs 33.10 crore).
Cummins India Q3 FY24 (Consolidated, YoY)
Revenue up 16.78% at Rs 2,509.79 crore vs Rs 2,148.99 crore (Bloomberg estimate: Rs 2,281.45 crore).
Ebitda up 35.5% at Rs 510.92 crore vs Rs 377.05 crore (Bloomberg estimate: Rs 366.65 crore).
Margin expands 281 bps to 20.35% vs 17.54% (Bloomberg estimate: 16.10%).
Net profit up 20.56% at Rs 498.91 crore vs Rs 413.8 crore (Bloomberg estimate: Rs 359.15 crore).
India Pesticides Q3 FY24 (Consolidated, YoY)
Revenue down 30.77% at Rs 150.68 crore vs Rs 217.64 crore.
Ebitda down 28.93% at Rs 33.07 crore vs Rs 46.53 crore.
Margin expands 56 bps at 21.94% vs 21.37%.
Net profit down 31.02% at Rs 23.99 crore vs Rs 34.78 crore.
GIFT Nifty Trades Above 22,000
Markets in Japan and South Korea were trading higher on Thursday, tracking overnight gains on Wall Street. Hong Kong's Hang Seng fell due to losses at heavyweight Alibaba after it reported worse-than-expected sales in the third quarter.
Investors will monitor the outcome of the Reserve Bank of India's policy meeting, due later today.
In the U.S., a rally in tech megacaps drove stocks higher, with the S&P 500 approaching its 5,000 milestone. U.S. bonds drifted before a record $42 billion sale of 10-year Treasury bonds, according to Bloomberg.
Brent crude was trading 0.30% higher at $79.45 a barrel. Gold was up 0.14% at $2,038.14 an ounce.
The February futures contract of the GIFT Nifty index traded flat at 22,053.
India’s benchmark equity indices ended little changed on Wednesday as traders exercised caution a day ahead of the RBI's monetary policy decision.
The NSE Nifty 50 ended 1.10 points, or 0.01%, higher at 21,930.50, while the S&P BSE Sensex closed 34.09 points down, or 0.05%, to 72,152.
Overseas investors turned net sellers of Indian equities on Wednesday after three consecutive sessions of buying. Foreign portfolio investors offloaded stocks worth Rs 1,691 crore, while domestic institutional investors remained net buyers for the second straight day and mopped up equities worth Rs 327.7 crore, the NSE data showed.
The Indian rupee strengthened 9 paise to close at Rs 82.97 against the U.S. dollar.
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