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Stock Market Highlights: Sensex Extends Losses for 2nd Day; Heavy Selling in It and Bank Stocks
The 30-share BSE Sensex fell for a second straight session, ending 250.86 points or 0.41 percent lower at 60,431.84. The index fluctuated throughout the day, reaching a top of 60,740.95 and a low of 60,245.05.
Latest Updates
Sensex falls 250.86 points to close at 60,431.84; Nifty declines 85.60 points to 17,770.90
Rupee falls 13 paise to close at 82.71 (provisional) against USD
Stock Market Live Updates: Yes Securities Gives NEUTRAL Recommendations to Voltas Ltd
Voltas has delivered in line revenue performance with UCP growing by 11.2% and EMPS segment growing 17.1%.We however continue to remain cautious on the stock with Neutral rating as 1) market share gains will be difficult to come by, 2) Margins in UCP are structurally trending lower, 3) Project business continues to face execution and collection challenges particularly in international geographies, and 4) Volt-beck continues to incur losses and is expected to take more time than estimated to achieve break-even status. We now factor in FY22‐25E Revenue/EBITDA/PAT CAGR of 19%/14%/17% and maintain our neutral rating with SoTP based TP of Rs885. We continue to value the products business (UCP) at 50x (higher than peers) and value projects business at 25x in line with peers.
Stock Market Live Updates: Yes Securities Gives NEUTRAL Recommendations to Voltas Ltd
Recommendation: NEUTRAL
CMP: Rs 850
Target Price: Rs 885
Potential Return: +4.1%
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Alkem
Sharp jump in US sales in Q3 warrants tweak to FY23 and FY24 estimates along with introduction of FY25 forecasts. Triggers remain in place for gradual improvement in margin from better chronic productivity and less likelihood of sharp jump in operating expenses. We roll over to FY25 valuation and also lower target multiple to 22x (from 25x earlier) to create some gap with other chronic plays like Ajanta (being valued at 25x). Believe steady upside would unfold as company delivers on FY24 margin in a back ended return profile. ADD stays for a revised TP Rs3,750 (earlier Rs3,500)Rs 3,750.
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Alkem
Recommendation: ADD
CMP: Rs 3,298
Target Price: Rs 3,750
Potential Return: +14%
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Mahindra & Mahindra Ltd
M&M (MM) 3QFY23 results were broadly in-line on operating front while higher other income at Rs6.7b (est Rs2.4b), lead to beat at Adj.PAT at Rs21.5b (est Rs16.3b). The key highlight of the quarter was continued increase in auto segment margins (EBIT) at 6.7% (+320bp YoY/ +70bp QoQ). We raise FY24/25 EPS led by ~3% led by price hikes, higher other income. While we expect auto business to lead the growth over FES, deterioration in the mix would restrict Revenue/EBITDA/PAT CAGR to ~12%/17%/20% over FY23-25E. Implied core P/E stands at 11.4x/10x FY24/FY25E EPS is attractive. Hence, we maintain ADD rating on the stock with revised SoTP based TP of Rs1,561 (v/s Rs1,500 earlier) on Sep’24 EPS.
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Mahindra & Mahindra Ltd
Recommendation: ADD
CMP: Rs 1,365
Target Price: Rs 1,561
Potential Return: +14.3%
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to City Union Bank
Management flagged that CUB would miss prior full year loan growth guidance of 15-18% for FY23. (2) NIM for the quarter was negatively impacted by a one-off, while management guided for stability in margin. (3) Slippages were elevated in 3Q as CUB addressed the divergence observations of the RBI. (4) We maintain ‘Add’ rating on CUB with a revised price target of Rs 190.
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to City Union Bank
Recommendation: ADD
CMP: Rs 160
Target Price: Rs 190
Potential Return: +18%
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Oil India Ltd
OINL’s 3QFY23, operating profit at Rs 28.5bn (+125.3% YoY; +54.5% QoQ), stood above estimates on lower than estimated operating expense, even as Revenue at Rs 58.8bn, stood marginally below our estimates. While Crude production stood at 0.81mmt (7% YoY & 2% QoQ) the natural production stood at 8.76mmscmd (7% YoY; -2% QoQ). Gross crude oil realization while 12% lower QoQ, nevertheless stood 12% YoY higher at USD 88.3/bbl. However, 56% QoQ lower SAED at Rs 5.03bn, resulted in a 2% QoQ higher net-realization at USD 77.1/bbl (2Q: USD 75.6/bbl). Profitability was also aided by 191% YoY & 39% QoQ higher natural gas realization at USD 8.57/mmbtu. Maintain ADD on expectation of improvement in crude oil and natural gas production.
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Oil India Ltd
Recommendation: ADD
CMP: Rs 198
Target Price: Rs 265
Potential Return: +18.3%
Stock Market Live Updates: Yes Securities Gives BUY Recommendations to Lupin
A more sustainable development would be margin recovery in core US business and till such visibility can be considered, our sense is Lupin would remain dependent on a single product. We continue to view Lupin as a tactical play with may be 2-3 quarters of Spiriva revenue representing medium term peak and the follow up to unfolding of Spiriva momentum as the window of opportunity. We tweak FY23/FY24 estimates and introduce FY25 forecast. Spiriva ramp up and trajectory represents a key uncertainty over next 2 years; hence moderate our target multiple to 20x from 25x earlier and roll over to FY25 EPS. Revised TP stands at Rs900 (earlier Rs750). Our ADD stays on the stock.
Stock Market Live Updates: Anand Rathi Gives BUY Recommendations to City Union Bank, Dalmia Bharat, Pfizer India
City Union Bank - Challenging quarter, earnings outlook stays strong; Buy
Dalmia Bharat - Now an all-India player; maintaining a Buy
KNR Construction - Irrigation exposure pruned, orders needed; retaining our Buy rating
H G Infra Engineering - Sturdy execution, healthy additions; retaining a Buy
Pfizer India - Soft FY23 on a high base; valuations attractive; maintaining a Buy
Stock Market Live Updates: Yes Securities Gives ADD Recommendations to Lupin
Recommendation: ADD
CMP: Rs 737
Target Price: Rs 900
Potential Return: +20%
Stock Market Live Updates: Yes Securities Gives BUY Recommendations to Life Insurance Corporation
Product mix changes and product re-but the agency channel has been B margin. (2) While banca is growing well from a low base, the agency channel has been relatively sluggish. (3) We maintain ‘BUY’ rating on LIC with a revised price target of Rs 770.
Stock Market Live Updates: Yes Securities Gives BUY Recommendations to Life Insurance Corporation
Recommendation: BUY
CMP: Rs 622
Target Price: Rs 770
Potential Return: +24%
Stock Market Live Updates: Yes Securities Gives BUY Recommendations to ITD Cementation India Ltd
ITD cementation (ITCE) reported strong set of results with revenue growth of 33% to Rs13.3bn led by robust execution. EBITDA margins remained under pressure owing to elevated commodity prices and low margin Bangalore metro project. Company bagged projects worth Rs8.3bn in 3Q and has strong bid pipeline of Rs120bn primarily driven from marine and underground metro segments. With completion of low margin projects, robust order inflows and strong bid pipeline, execution momentum is expected to be strong in FY24E and management has reiterated its revenue guidance of Rs60bn (with Ganga Expressway contributing Rs20bn) with EBITDA margins to improve lower double digit for FY24E. We maintain ‘BUY’ rating on the stock with a TP of Rs138, assigning a 10x multiple to its FY25E EPS of Rs13.8.
Stock Market Live Updates: Yes Securities Gives BUY Recommendations to ITD Cementation India Ltd
Recommendation: BUY
CMP: Rs 107
Target Price: Rs 138
Potential Return: +29%
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Info Edge India Ltd
Info Edge (India) (INFOE) reported strong financial performance for the quarter. While, the sequential revenue growth was inline with estimates; EBITDA margin was above expectation. Revenue grew by 4.4% QoQ, led by 4.5% QoQ growth in the revenue of Recruitment business. Consolidated Billing remained strong as it grew by 14.5% YoY. There was sequential increase in EBITDA margin (up 445 bps QoQ) on account of control on A&P expense. Added 2mn resumes (QoQ) in the quarter to end at 88mn resumes. We maintain our BUY rating on the stock with revised target price of Rs 5,215/share based on DCF methodology.
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to Info Edge India Ltd
Recommendation: BUY
CMP: Rs 3,814
Target Price: Rs 5,215
Potential Return: +37%
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to KNR Constructions
"KNR Constructions Ltd (KNRC) reported Q3FY23 revenue/EBITDA/APAT of Rs 8.3bn/1.6bn/0.2bn, missing our estimates on all fronts by 8.8%/10.7%/77.5%. As of Q3, KNRC’s order book continued to remain stagnant to Rs81bn however tender pipeline is expected to be strong with orders worth Rs170bn to be bided in Feb and Mar’23. Balance sheet continues to improve on account of healthy operating cashflows and low net working capital of 53days as of Dec’22 (vs. 60 as of Jun’22). At the standalone level, the company has turned cash positive to Rs1.3bn. For FY23E, management has retained its revenue guidance of Rs35bn and EBITDAM in the range of 18-19%. We continue to maintain our ‘BUY’ rating valuing the EPC business at 18x FY25E EPS and HAM portfolio and BOT projects at 1x book value, to arrive at a TP of Rs377," Yes Securities
Stock Market Live Updates: Yes Securities Gives BUY Recommendation to KNR Constructions
Recommendation: BUY
CMP: Rs 266
Target Price: Rs 377
Potential Return: +42%
FIIs were net buyers in the capital markets on Friday as they purchased shares worth Rs 1,458.02 crore, according to exchange data
Rupee opened weak at 82.68 against the dollar, then fell to 82.75, registering a decline of 17 paise over its last close
The rupee depreciated 17 paise to 82.75 against the US dollar in early trade
Stock Market Live Updates: Oil Prices Ease
Oil prices eased a touch after jumping on Friday when Russia said it planned to cut its daily output by 5% in March after the West imposed price caps on Russian oil and oil products
Stock Market Live Updates: Nikkei Falls
Nikkei fell 0.5%, and South Korea 0.3%. S&P 500 futures ESc1 were off 0.2%, while Nasdaq futures NQc1 eased 0.3%
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1%, after losing 2.2% last week
Sensex fell by about 251 points on Monday due to significant selling pressure in IT and bank equities and a choppy global market.
The 30-share BSE Sensex fell for a second straight session, ending 250.86 points or 0.41 percent lower at 60,431.84. The index fluctuated throughout the day, reaching a top of 60,740.95 and a low of 60,245.05.
Similar to this, the NSE Nifty, a wider index, lost 85.60 points or 0.48 percent to end at 17,770.90.
SBI, which dropped 2.83 percent, was the biggest loss in the Sensex pack, followed by Infosys, TCS, Bajaj Finance, Tech Mahindra, Wipro, and Axis Bank. Titan, L&T, NTPC, Power Grid, Sun Pharma, ITC, and HDFC Twins, on the other hand, were among the notable winners, jumping as much as 1.97%.
The BSE midcap and smallcap indices declined up to 1.25 percent in the overall market.