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Stock Market Highlights: Sensex Declines 220 Points, Nifty Closes Lower
BSE Sensex dropped by 220.86 points, or 0.37 percent, to settle at 60,286.04.
Latest Updates
FIIs net sellers in the capital markets, offloading shares worth Rs 1,218.14 crore, according to exchange data
30-share BSE Sensex declined 220.86 points or 0.37 per cent to end at 60,286.04, while the broader NSE Nifty slipped 43.10 points or 0.24 per cent to 17,721.50.
Rupee appreciated 6 paise to close at 82.70 against the US dollar
Stock Market Live Updates: Anand Rathi Gives BUY Rating to Nerolac, Affle India, Mangalore Refinery and Petrochem
Brokerage Anand Rathi has given BUY Rating to Kansai Nerolac, Affle India and Mangalore Refinery and Petrochemicals
Mangalore Refinery & Petrochemicals - Shareholder wealth to improve on stronger GRMs; initiating with a Buy
Kansai Nerolac - Auto-paints shine but high-cost raw material stocks dim margins; Buy
Affle India - Revenue missed, margins expanded; maintaining our Buy
Stock Market Live Updates: Yes Securities Gives NEUTRAL Recommendation to One 97 Communications (PAYTM IN)
Loan distribution business serves to enhance both revenue and margin, Maintain NEUTRAL
(1) The share of Financial Services in overall revenue continues to rise even as there were some negative one-offs for the quarter. (2) There were a variety of factors aiding both contribution margin as well as EBITDA margin, with EBITDA before ESOP cost turning positive. (3) We maintain ‘Neutral’ on PAYTM with a revised price target of Rs 600.
Stock Market Live Updates: Yes Securities Gives NEUTRAL Recommendation to One 97 Communications (PAYTM IN)
Recommendation: NEUTRAL
CMP: Rs 558
Target Price: Rs 600
Potential Return: +7%
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Voltamp Transformers Ltd (VAMP IN)
Another quarter of stellar performance
Voltamp Transformers (VAMP) reported a strong set of numbers despite a month-long workers’ strike at its Savli facilities. Revenue growth was led by a mix of volume/realization growth of 10%/5% YoY respectively. Healthy operating margins aided by gross margin expansion and operating leverage benefits led to a ~450bps YoY operating margin expansion. Order book remains strong at ~Rs9bn (0.7x TTM revenue) as on 3QFY23, providing revenue visibility for the next few quarters.
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Voltamp Transformers Ltd (VAMP IN)
Recommendation: BUY
CMP: Rs 2,916
Target Price: Rs 3,656
Potential Return: +25%
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Aarti Industries Ltd (ARTO IN)
Demand environment tepid; prognosis better
ARTO’s 3QFY23 Adj. Ebitda at Rs 2.887bn (+36% YoY; +8%), stood below ours but above street estimates. The YoY growth stemmed from adjustment for shortfall fee of Rs 6.8bn in base quarter. The 9MFY23 Ebitda stands at Rs 8.4bn, as against an annual guidance of Rs 11bn for FY23. While demand environment is challenging and tepid, specially in the textile segment, but ARTO expects to achieve its annual Ebitda guidance. The operating earnings CAGR over FY24-25 is expected at ~25%, with growth being back-ended towards FY25 leading to an Ebitda of Rs 17bn (FY25e), as brownfield NCB expansion, along with specialty chemical blocks at Vapi gets commissioned by 1HFY24. The LT-3 contracts is also commissioned and ramping up to contribute to earnings in FY24 and FY25. Growth beyond FY25 would be aided by the Rs 30bn capex being undertaken over FY24-25, most of which is aimed at production of new higher value molecules. Maintain BUY
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Aarti Industries Ltd (ARTO IN)
Recommendation: BUY
CMP: Rs 565
Target Price: Rs 795
Potential Return: +41%
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Dalmia Bharat (DALBHARA IN)
Revenue as anticipated; EBITDA/te rebound to Rs1022 as cost came lower‐than‐expected
Management indicated that the ongoing expansion is progressing as per schedule and will take the total capacity to 49MTPA by FY24E (excl. JAL acquisition) v/s 37MTPA in Q3FY23. With long term positive demand outlook and incremental capacities, we believe DALBHARA to clock a volume growth of +11/15/11% y/y for FY23/24/25E. Company signed definitive agreement for acquiring the JP Associate’s cement assets at an EV of Rs32.3bn which is a part of interim expansion plan to achieve ~75MTPA by FY27E, while ~21MTPA is yet to be announced. Additionally, DALBHARA committed towards its PAN India aspiration with110-130MTPA by FY31E. We rolled forward the estimate to FY25 and arrived at TP of Rs2,723, valuing the stock at 15x EV/EBITDA on FY25E.
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Dalmia Bharat (DALBHARA IN)
Recommendation: BUY
CMP: Rs 1,885
Target Price: Rs 2,723
Potential Return: +44%
Stock Market Live Updates: YES Securities Gives BUY Recommendation to Rossari Biotech Ltd (ROSSARI IN)
Rossari’s reported operating profits at Rs 542mn (+16%YoY; -4% QoQ) missed our and street estimates on weaker earnings traction in subsidiaries and weaker demand sentiment in the HPPC segment. The Ebitda margin at 13.9% (2Q: 13.3%) nevertheless improved QoQ as raw material price environment improved. The standalone earnings were steady with SA. Ebitda at 319mn growing by 22% YoY & 15% QoQ, primarily on expansion in SA operating margin to 13.5% (2Q: 11.6%), even as revenue at 2.4bn (-12% YoY; -2% QoQ) stood weaker. Demand environment remains challenging in TSC segment, plus HPPC faced headwinds during the quarter due to a particular customer, which the company is trying tide over by onboarding of new customers. In the longer run, under normalized operating conditions, we expect the operating margins to restore to 14-15% levels. In addition, Rossari continues to innovate, within the its four core chemistries, developing products for new applications, across product segments. Maintain BUY.
Stock Market Live Updates: YES Securities Gives BUY Recommendation to Rossari Biotech Ltd (ROSSARI IN)
Recommendation:
BUY
CMP: Rs 687
Target Price: Rs 1,095
Potential Return:+59%
Stock Market Live Updates: YES Securities Gives SELL Recommendation to Finolex Industries Ltd (FNXP IN)
Management indicated that Q4 FY23 is likely to be lower than Q3FY23, owing to sluggishness in demand. Moreover, company reiterated that FY23 should be similar to Pre-COVID levels & demand is likely to improve in FY24. Though we believe demand from Agri-segment to remain strong, we expect higher competition from unorganized players will keep FNXP’s performance under check. Hence, we continue to value the company at 15x on FY24E EPS of Rs8.5 & assign SELL rating on the stock.
YES Securities Gives SELL Recommendation to Finolex Industries Ltd (FNXP IN)
Recommendation:
SELL
CMP: Rs 173
Target Price: Rs 127
Potential Return: ‐27%
In early deals rupee was moving in a tight range of 82.69-82.65.
At the interbank foreign exchange, the domestic unit opened strong at 82.68 against the dollar, then gained further ground to 82.66, a rise of 10 paise over its last close.
Rupee appreciated 10 paise to 82.66 against the US dollar in early trade
Sock Market Live Updates: Recommended Stocks
Brokerage Anand Rathi has maintained BUY rating for the following stocks
Karnataka Bank - Another strong quarter, expect RoA to settle near 1% levels; Buy
Mahanagar Gas - Muted volume growth; on attractive valuations, maintaining a Buy
Cera Sanitaryware - Highest quarterly revenue; retaining a Buy
Orient Cement - To add 3m tonnes by FY26; retaining a Buy
Gold was slightly higher. Spot gold was traded at $1871.65 per ounce
U.S. crude ticked up 0.9% to $74.78 a barrel. Brent crude rose to $81.69 per barrel
Hong Kong’s Hang Seng Index opened up 0.68% and China’s bluechip CSI300 Index was 0.3% higher in early trade
Australia’s S&P/ASX200 was up 0.13% and Japan’s Nikkei stock index rose 0.26%
MSCI’s broadest index of Asia-Pacific shares outside Japan bounced slightly 0.4%, after U.S. stocks ended the previous session with mild losses. The index is up 0.8% so far this month.
Asian share markets stabilised somewhat on Tuesday after steep losses in the past 24 hours, while the U.S dollar remained elevated as investors considered the prospects interest rates would remain higher for longer in many developed economies
Equity indices Sensex and Nifty ended the day lower on Tuesday amidst selling in FMCG, metal, and auto sectors as a result of growing fears over interest rate hikes by central banks.
BSE Sensex dropped by 220.86 points, or 0.37 percent, to settle at 60,286.04. Despite conflicting global trends, the index opened unchanged. Throughout the day, it fluctuated between 60,655.14 and 60,063.49 points. The National Stock Exchange's broader Nifty index decreased by 43.10 points, or 0.24 percent, to close at 17,721.50; 31 of its scrips experienced negative closing prices. During the session, the index moved between a high of 17,811.15 and a low of 17,652.55.
Tata Steel fell the most (5.23 percent) after the company posted weak financial results for the quarter ending December 31. ITC, Sun Pharma, Maruti, M&M, Tata Motors, HCL Tech, Wipro, Infosys, HUL, Bharti Airtel and Reliance were among the major losers. Kotak Bank rose the most by 1.59 per cent, followed by IndusInd Bank, Bajaj Finance and Bajaj Finserv. L&T, SBI, TCS and HDFC Bank also closed higher.