China will be in focus on key indicators due including retail sales and industrial production, as well as the medium-term lending facility rate. Fed’s statement on the continued fight against inflation will also keep investors’ spirits low.
Realty Index remains a major drag on the market today; most stocks shed
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Axis Securities recommendation on Bata India, Hindalco and JK Cement
Bata India: Resilient Performance Amidst Challenging Times; Maintain BUY
We remain cautiously optimistic on the demand outlook going ahead and maintain BUY on the stock with a revised TP of ₹1,950/share and a target multiple of 43x sept’24 expected earnings (40-45x 5yr average PE band. We discount some of its listed retail peers) as we expect Bata’s valuations to catch up going ahead.
Hindalco: Resilient Q2 with Costs Peaking Out; Maintain BUY
We value the stock at 12MF EV/EBITDA multiple of 5.0x for Indian business and 6.0x for the Novelis operations on FY24 EBITDA estimates to arrive at a TP of ₹515/share (from ₹490/share). Our TP implies an upside of 13% from the CMP.
JK Cement: Encouraging Results; New Announced Capacity to Aid in Growth
We value JKCL at 13x FY24E EV/EBITDA to arrive at a TP of Rs3,350/share ( ₹3,020/share earlier), implying an upside of 14% from the CMP and maintaining our BUY rating on the stock.
Paytm sees no impact from lock-in expiry, trends show heavy buying
India’s largest fintech company Paytm saw its mandatory lock-in expiry end today, with 86 per cent of its shares becoming free to trade.
Trends showed that the lock-in expiry had minimal or no impact on the company’s share price, which was trading at ₹637, down 0.2 per cent at 10:30 am.
In fact, details on BSE show that more shares were being bought than sold.
Paytm counts the likes of Warren Buffet, SoftBank, Elevation Capital, Alibaba as its long-term investors.
Top brokerage firms such as JP Morgan, Morgan Stanley, Goldman Sachs, ICICI Securities, Dolat Analysis and Research Themes, and CITI have extended their confidence in Paytm’s strong performance. (ANI)
Data protection bill will end misuse of customer data, penalise violators: MoS IT
The proposed data protection bill will put an end to misuse of customer data, and violators will face punitive action under the rule, Minister of State for Electronics and IT Rajeev Chandrasekhar said on Tuesday.
The minister shared his reaction in response to Google’s settlement of an investigation in the US which outlines that the internet giant misled users and continued tracking their location even after they opted out of the location tracking system.
Google has agreed to settle the lawsuit for which it will pay around USD 392 million, according to a statement issued by the Oregon Department of Justice.
“This type of “misuse” of custmr data violates #Privacy n #DataProtection expectations India’s #DigitalDataProtection bill will put a stop to this – & ensure that any Platform/Intermediary that does this will face punitive & financial consequences, ” Chandrasekhar tweeted. (PTI)
Centrum Broking on Glaxo SK Pharma & Pfizer Q2FY23 Result Update: BUY
Centrum Broking says BUY for GSK and Pfizer Pharma
Glaxo SK Pharma – Focus on Rx growth; vaccine continue to decline (Buy, TP: Rs1,600)
GSK Pharma reported revenue of Rs9,2bn in Q2FY23 de-grew by 2% YoY, and grew strong on QoQ 23%. Lower staff cost offset by investment in core brands which has driven the other expenses in Q2. EBITDA for the quarter came in at Rs2.6bn with margin expansion of 800bps QoQ (flat QoQ) at 28%. Adj. PAT for the quarter stood at Rs1.9bn up by 2% YoY and 66% QoQ. During the quarter the company reported strong performance in general medicines and specialty business, gaining market share, while vaccine continue to decline. We expect the EBITDA margins to expand beyond the Cx transaction. We maintain our BUY rating, with a revised target price of Rs1,600 (38x on Sep’24E EPS).
Pfizer – Low-cost drives earnings (Buy, TP: Rs5,790)
Pfizer reported Q2FY23 result, with overall revenue came flat on YoY and grew 8% QoQ to Rs6.4bn. Despite lower sales, its better cost mix resulted EBITDA growth of 22% YoY and 21% QoQ to Rs2.3bn with margin expansion of 658bps YoY and 400bps QoQ at 36%. During the quarter Pfizer had a one-off income related to transfer of certain primarily off-patented and generic established medicines (Upjohn Business). Adjusted to this PAT for the quarter came in at Rs1.7bn up 19% YoY and 26% QoQ (Reported PAT was Rs3.1bn). We remain are positive on Pfizer as it has ~50% of its sales from innovative products and remains focused on high margin private channel vaccine market in India led by Prevenar13. As Pfizer enjoys access to new product pipeline of its parent, we remain optimistic of Prevenar20 launch in India soon. We maintain BUY, with a revised target price of Rs5,790 (36x Sep’24E EPS).
India bonds gain for 7th day in a row as inflation eases
The benchmark Indian 10-year government bond yield fell today as data showed that inflation eased below 7% in October. But the gains in bond prices were capped as the easing of inflation in October was already baked into the market, say analysts. Bond prices are inversely related to yields. The benchmark Indian 10-year government bond yield dipped to 7.281% after closing at 7.2866% on Monday. The yield has declined for the seventh session in a row, dropping by an aggregate of 19 basis points. (Read More)
Archean Chemical IPO’s share allotment this week; GMP steady
The initial public offering (IPO) of Archean Chemical Industries was subscribed 32.23 times by the close of the subscription period on Friday, November 11, 2022. The public issue received bids for 64,31,70,528 shares against 1,99,57,325 shares on offer, according to data available with the National Stock Exchange (NSE).
As per market observers, Archean Chemical shares are commanding a premium (GMP) of ₹80 in the grey market today. The shares of the company are expected to list on the leading stock exchanges BSE and NSE on Monday, November 21, 2022. (Read More)
Credit Suisse Agrees to Sell Large Chunk of SPG Unit to Apollo
Credit Suisse AG agreed to sell a significant part its securitized products group’s assets in a deal that will help cut back a business that soaks up capital.
The Swiss lender is transferring the assets to Apollo Global Management Inc., according to a statement on Tuesday. The deal, along with the expected sale of other portfolio assets to third-party investors, is expected to reduce SPG assets from $75 billion to approximately $20 billion, through a series of transactions expected to be completed by the middle of next year.
Apollo will take on most of the SPG team, Credit Suisse said. Credit Suisse had previously said it was close to an agreement with Apollo on the deal. (Bloomberg)
Noon Update: Indices remain marginally in red on Tuesday with Sensex shedding 125 points and Nifty 30
ONGC and Adani Ports shine, while Grasim and ITC drag in today’s session.
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SpiceJet shares decline over 4 pc after Q2 loss
Shares of SpiceJet on Tuesday fell over 4 per cent in morning trade after the firm reported widening of net loss to ₹837.8 crore in the three months ended September.
The stock after a weak beginning, further declined 4.24 per cent to ₹37.20 on the BSE.
SpiceJet on Monday reported widening of net loss to ₹837.8 crore in the three months ended September, as record fuel prices and depreciating rupee caused turbulence for the budget carrier.
Excluding the forex loss, the airline’s net loss stood at ₹577.7 crore in the latest quarter under review. (PTI)
Recommendations on Tega Industries and Mannapuram Finance by brokerage firms
LKP Securities on Tega Industries Ltd after Quarterly result: Overall we remain positive on the stock given the performance in H1FY23 and strong growth prospects ahead further substantiated from the fact that it has diversified product portfolio coupled with introduction of new products – DynaPrime liners opening opportunities in global steel mill liner market for conversion, 2) strong relationships with customers (10 years) with sticky customer base 3) de-risked business model due to low customer concentration. . The stock has already moved up 22% from our initiation. We have tweaked our revenue and margins nos given the strong performance in H1FY23 and strong visibility ahead. We expect the company to deliver sales/EPS CAGR of 18%/26% over FY22-24E. We maintain BUY on Tega with a revised price target of ₹664.
Axis Securities on Mannapuram Finance after Quarterly Result: The Cost to Income ratio is expected to continue improving going forward. Overall, with 20% CAGR growth for standalone AUM, focus on higher-yielding products, adequate capital (leverage at a low 3x), and the C-I expected to improve further, we believe Mannapuram is in a good position to continue its growth momentum moving ahead. Backed by these key levers management expects ROE to reach ~20% in the next two quarters. MFL is currently trading near its 5-year P/B average (~1.1x). On reasonable valuations, we maintain our BUY rating with the revised target price of ₹175/share (1.3x FY24E ABV), implying an upside of 50% from the CMP.
Grasim Industries one of the biggest laggards today; sheds around 1.5%
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India’s October crude oil demand gets festive season boost: S&P Global Commodity Insights
India’s oil product demand during October increased month-on-month by 113,000 barrels per day, supported by an uptick in economic activities in the post-monsoon season and the Diwali festival, acoording to S&P Global Commodity Insights.
Demand was up on the year by 130,000 barrels per day, driven by gasoil and gasoline, which were up 83,000 barrels and 67,000 barrels, respectively.
After two consecutive cuts in windfall taxes to nil for ATF, gasoline and USD 10 per barrel for gasoil exports, the Indian government started raising the export taxes again from mid-October. (ANI)
ONGC declares interim dividend at 135%, record date next week
Oil and Natural Gas Corporation (ONGC) on Monday said its board has declared an interim dividend of ₹6.75 per equity share of face value of ₹5/- each i.e. @ 135 % for the financial year 2022-23 while also announcing its second quarter earnings for the current fiscal or Q2 FY23. Shares of ONGC were trading nearly 3% higher at 143 apiece on the BSE in Tuesday’s early deals.
Meanwhile, the company reported 30% fall in net profit for September quarter after the government levied windfall tax to take away gains arising from spurt in international oil and gas prices. ONGC’s net profit came at ₹12,826 crore in July-September 2022-23 as compared with ₹18,347.7 crorein the same period a year back. (Read More)
Fusion Micro Finance shares fall over 2 pc in debut trade
Shares of Fusion Micro Finance on Tuesday made a weak market debut, falling over 2 per cent, against the issue price of ₹368.
The stock made its debut at ₹360.50, a discount of 2 per cent on the BSE. It later fell 6.25 per cent to ₹345.
Its market valuation stood at ₹3,447.61 crore at the BSE.
At the NSE, it began the trade at ₹359.50, lower by 2.30 per cent from the issue price.
Meanwhile, the broader market was also quoting lower, with the BSE benchmark trading down by nearly 100 points at 61,526.02 at 10.56 hours.
The Initial Public Offering (IPO) of Fusion Micro Finance was subscribed 2.95 times earlier this month.
The ₹1,104-crore IPO had a price range of ₹350-368. (PTI)
Why crypto Solana’s price crashed the most in a week amid FTX collapse
Crypto altcoin Solana, which was tied to a blockchain backed by Sam Bankman-Fried, declined more than 52% in just a week, leading the crypto slump as the fallout from the collapse of Fried’s FTX empire continued to reverberate. Solana’s market value has fallen from a peak of almost $80 billion last November to just over $5 billion, according to data from CoinGecko.
“If we look at the performance of Solana, it has slipped by 95% from its all-time high in November 2021. The recent developments at FTX have rattled the crypto market which is pushing investors away from riskier assets. The market is anticipating that Alameda research could offload its entire SOL holdings which is its second-largest holding after FTX,” said Tarusha Mittal, COO and Cofounder of UniFarm, a group staking platform. (Read More)
Hero MotoCrop climbs 2%; among the biggest gainers in today’s session
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Mindtree-L&T Infotech merger operationalised: Record date, fractional entitlements, other details
The L&T Group has announced operationalisation of the merger of Mindtree with LTI (Larsen & Toubro Infotech), effective November 14. The new entity, LTI Mindtree, will begin trading from November 24. Mindtree shareholders will get 73 LTI shares for every 100 shares they hold post merger. LTI and Mindtree merger was announced in May 2022. The parent company, L&T, will hold 68.73% of the merged entity – LTIMindtree. Read10 things to know about Mindtree-LTI merger in this link.
Auto Index shines in today’s session; most stocks in the index gain
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Rupee slips after positive opening on corporate dollar demand
The Indian rupee was unable to hold on to its opening uptick against the dollar on Tuesday, on likely importer interest to hedge their liabilities, traders said.
The rupee was trading at 81.44 per U.S. dollar by 0442 GMT, compared with 81.26 in the previous session. The local had managed to inch up to 81.14 in opening trades.
The price action was similar to that on Monday but within a narrower range. On Monday, the rupee climbed to near 80.50, before quickly reversing to below 81.
Yet again, there is very good demand for dollars from both private banks and foreign banks, likely related to their corporate clients, a spot trader said. (Reuters)
Reliance Securities Stock in Focus for today: Mphasis
STOCK IN FOCUS
Mphasis (CMP 2,035)
Valuing the stock at 20x of FY24E earnings, we have BUY recommendation on Mphasis with 1-Year Target Price of Rs2,330.
Intraday Picks
BALRAMCHIN (PREVIOUS CLOSE: 341) BUY
For today’s trade, long position can be initiated in the range of Rs337- 335 for the target of Rs348 with a strict stop loss of Rs331.
LUPIN (PREVIOUS CLOSE: 760) BUY
For today’s trade, long position can be initiated in the range of Rs749- 742 for the target of Rs775 with a strict stop loss of Rs734.
LALPATHLAB (PREVIOUS CLOSE: 2,484) BUY
For today’s trade, long position can be initiated in the range of Rs2,425- 2,410 for the target of Rs2,540 with a strict stop loss of Rs2,345.
ONGC Sept qtr profit drops 30% to ₹12,826 cr as govt levies windfall tax
Oil and Natural Gas Corporation (ONGC) reported 30% fall in net profit for the September quarter after the government levied a windfall tax to take away gains arising from a spurt in international oil and gas prices.
Net profit of ₹12,825.99 crore, or ₹10.20 a share, in July-September 2022-23 is compared with ₹18,347.73 crore, or ₹14.58 per share net profit in the same period a year back, the company said in a statement.
Profit fell 15.6 per cent over the preceding June quarter when it had reported ₹15,205.85 crore net profit.
The company’s gross billing for crude oil it produced soared 37.7 per cent to USD 95.49 per barrel in the quarter from USD 69.36 a barrel last year. (PTI)
Bikaji Foods IPO: Shares listing likely tomorrow. Check GMP
The initial public offering of Bikaji Foods International was subscribed 26.67 times on Monday, November 7, 2022 the last day of subscription. The ₹881-crore IPO received bids for 55,04,00,900 shares against 2,06,36,790 shares on offer, as per data available with the NSE.
As per market observers, Bikaji Foods shares are commanding a premium (GMP) of ₹23 in the grey market today. The finalisation of the share allotment has been done and now all eyes are on the company’s stock market debut. The shares of the company are expected to list on leading stock exchanges BSE and NSE tomorrow i.e., Wednesday, November 16, 2022. (Read More)
ITC stock sheds 1% in early trading, dragging the FMCG index
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Geojit Financial Services on today’s market: Some profit booking may be considered in mid and small-caps
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The strongest tailwind for equity markets globally is the peaking of inflation in the US and the possibility of a slower pace of rate hikes. In tune with this trend, CPI inflation in India, too, has declined to 6.7 % in October from 7.4 % in September. The decline in crude to $92 dollars is another positive. All these can take the Nifty to a new record, but in typical market characteristics, it may not happen when the consensus expects it to happen. A healthy trend in the market now is the slow accumulation in high quality large-caps. Sustained buying by the FIIs is supporting this trend. Some profit booking may be considered in mid and small-caps which have run up on good results.
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Read More: Stock Market LIVE: Indices turn flat; IT, FMCG, Realty drag; Auto climbs