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November 05, 2024

• BEAT THE STREET BULLETIN
• Date: 04-Nov-2024
• t.me/beatthestreet10
• ACQUISITION
• GREENLAM IND: Company has incorporated a subsidiary in Egypt under the name and style of “GRLAM TRADING”.
• MARSONS: Board Meet On 7 Nov to discuss, consider and approve to set up a Subsidriary company in United Kingdom.
• SURAJ PRODUCTS: Company to incorporate subsidiary in UAE.
• COLLABORATIONS
• MAXPOSURE: Company partners with Miami-based ASG to market its Wireless IFE Solution (AeroHub) in Americas market.
• KAUSHALYA LOGISTICS: Company Partners with Maersk Line to Strengthen Surface Transportation in Indian.
• CREDIT RATING
• SPICEJET: Acuité Upgrades Company’s Credit Rating by Four Notches to B+ with Stable Outlook, Short-Term Rating Raised to A4
• MTNL: Funding of Designated ESCROW Account for payment has been done on 04th November,2024.
• IIFL FINANCE: Fitch affirms IIFL Finance at B+:outlook stable.
• FUND RAISING
• COCHIN SHIPYARD: Board Meet on Fund Raising On7 Nov
• SCARNOSE INTERNATIONAL: Board Meet On 12 Nov for raising of fund via Preferential Issue
• ORDER WIN
• WELSPUN CORP: Wins Rs 1300 Cr Order
• Execution of these orders will be during FY26.
• SBEC SYSTEMS: Solar power project of 632 KWp at G S Pharmbutor Pvt Limited, has successfully commissioned and became operational.
• AFCONS INFRA: Company Announced L1 For Bhopal Metro Project Line 2 Package Worth 1006cr (Time period: 3Years.)
• BARAT GLOBAL DEVELOPERS: Company gets significant order worth Rs 300 crore from Mccain India Agrotech
• NBCC: Wins Rs 65 Cr Order
• ESCONET: Company received an order worth ₹29.23 crores from Indian Oil Corporation Ltd (Time Period: 5 years)
• SOLAR IND: Wins Rs 400 Cr Order (Time period: 3Years)
• ZENITH DRUGS: Recived order valued at ₹18.81CR.
• DEEPAK BUILDERS: Wins Rs 153 Cr Order (Time Period 18 Months)
• RVNL: Wins order worth rs. 623Cr
• OTHER UPDATE
• VEDANTA: Cairn Becomes India’s First Oil & Gas Company to Join UNEP’s OGMP 2.0.
• HAVELLS INDIA: Company has decided to relocate its Switchgears production capacity from Faridabad
• MAAN ALUMINIUM: Co. Informs 'Aluminum Extrusions From India Along With 13 Other Countries Do Not Injure U.S. Industry, Says U.S. International Trade Commission (USITC)
• MAWANA SUGAR: Co. commenced cane crushing operations from today for the crushing season 2024-25
• PLANT COMMENCEMENT
• HCL TECH: HCLTech announces new AI/Cloud Native Lab in Singapore in partnership with Singapore Economic Development Board
• ROYAL ORCHID: Company expands presence in Madhya Pradesh, inaugurates new hotel- Regenta Place Gwalior
• BAAZAR STYLE: Company has opened two new stores at Chakradharpur, Jharkhand today.
• GATEWAY DISTRIPARKS: Gateway Distriparks Launches Double Stack Rail Services at ICD Faridabad
• RESIGNATION/APPOINTMENT TRANSWARRANTY FINANCE: Mr Sanjeev Kumar Ceo Resigned
• RALLIS INDIA: Appoint Mr. Rahul Pandey as Business Head Crop Care and Senior Management Personnel
• KUANTUM PAPERS: Mr. Roshan Garg Ceo Resigned
• RESGEN: Mr. Kunal Bora Ceo Resigned
• Mr. Abhijeet Oza Appoints as Ceo.
• STOCK SPLIT
• KAMDHENU LTD: Board Meet On 11 Nov To Consider Stock Split
• News Headlines from Business News Agencies:
• Business Standard
• Oil buyers, producers dialogue needed for market stability: Hardeep Puri
• India's semiconductor design sector booms despite Q2 hiring dip: Report
• Taj Gvk Hotels Q3 PAT jumps 39% YoY to Rs 17 crore
• SAT Televenture to acquire Tikona Infinet for Rs 669 cr in cash, stock deal
• Sebi allows MFs to invest in foreign funds with Indian securities exposure
• Kotak Alternate Asset Managers to raise Rs 1,600 cr via healthcare PE fund
• Coal Minister urges CIL to boost production and reduce import reliance
• TechEagle launches eight drone hubs with healthcare partners across India
• Fitch affirms IIFL Finance's rating after RBI lifts ban on gold-loan biz
• October weather did not favour Ukraine's winter crops: Scientists
• Exide Industries Q2 result: PAT falls 13.66% to Rs 233.4 cr on higher costs
• UAE opens its annual oil-and-gas summit, pledges to increase output
• Economic Times
• CIL should prioritise augmenting coal production, supplies to reduce import: Minister
• Aptus has appointed Atul Jain as Managing Director and Chief Executive
• China's Haier Group plans JV with JSW Group envisaging Rs 1K cr investment
• BFSI office leasing continues to surge as digital growth points to new record in 2024
• India to emerge as a Global South leader in AI global governance: Abhishek Singh
• India re-elected as President of International Solar Alliance till 2026
• Bajaj auto domestic 2-wheelers sales dropped 8 pc in Oct (YoY), exports surge 22 pc
• Ashok Leyland total sales fell 9% to 15,310 units in Oct
• Bangladesh fast tracks payment to Adani Power after supply cut
• Welspun Corp gets Rs 1,300 cr pipe supply order in US
• India to revamp power demand forecasting for better planning
• Crystal Crop acquires I&B Seeds to expand vegetable, flower seed business
• Mint
• RBI likely selling dollars to support rupee amid equity outflows: Report
• IRFC Q2 Results: Net profit rises 4% YoY to ₹1,613 crore, revenue up 2%
• Indian rupee touches all-time low due to equity outflows from domestic market
• Lulu Retail Holdings expects to raise $1.43 billion from its Abu Dhabi IPO
• DLF’s New ‘Ultra-Luxury’ Project to Have the Costliest Apartments in India
• Reliance Jio IPO may hit Indian market in 2025: Report
• NBFCs brace for slower growth as asset stress, fund costs pinch
• Skillmatics likely to go for India listing in 3 years: CEO Dhvanil Sheth
• SBI Mutual Fund average AUM surges to record ₹11 lakh crore in Q2
• Bosch to cut over 7,000 jobs as it lowers growth forecast for 2024
• InCred plans insurance, mutual fund arms as it seeks to diversify offerings
• CITI on Exide
• Buy, TP cut to Rs 540 from Rs 610
• 2Q below estimates, reflecting slightly lower revenue and higher SG&A vs our expectations.
• Mgmt highlighted strong demand in replacement auto & industrial UPS & solar segments
• MS on Exide
• OW . TP Rs 538
• 2Q weaker than MSe, while Amara Raja's was largely in line
• Expect Exide's revenue growth to catch up in F2H25
• Also believe Exide has benefits of scale and pace in new energy business, keeping us OW
• Nomura on Exide
• Buy, TP Rs 589
• 2Q revenue rose 4% y-y & 4% below est.
• EBITDA margin of 11.3%, down 220bp q-q, came in below expectations of 12.4%
• Co highlighted that 2Ws/4Ws replacement markets have experienced robust demand
• Nomura on ABB
• Neutral, TP Rs 8260
• 3QCY24: Weak execution offsets strong EBITDA margin
• Revenue at Rs 29.1bn, up 5% y-y (-11% vs est.)
• EBITDA margin at 18.6%, up 271bp y-y vs est. 18.2%
• Order inflows were at Rs 33.4bn, up 11% y-y (-8% vs est.
• UBS on ABB - 1st cut
• Neutral, TP Rs 9100
• Orders/revenue/EBITDA grew 11%/5%/23%
• EBITDA margins of 18.6% strong led by discrete automation & electrification
• Muted execution in process automation (12% YoY decline) drove revenue miss
• Margins upside in price
• GS on Bata India
• Sell, TP Rs 1300
• Sales growth continued to be tepid at 2.2% YoY (GSe: 3% YoY)
• This was only a slight improvement in trend from -1.4% YoY in 1Q
• Retail network expansion was 10% YoY, similar to 1Q
• PAT declined 30% YoY & missed GSe by 13%
• CITI on Bata India
• Sell, TP Rs 1050
• Rev growth muted at 2.2% YoY (2% below est), implying 3.0% CAGR over pre-covid period.
• EBITDA declining 4% YoY (9% below est) & Adj PAT declining 20% YoY (21% below est)
• Val of 47x/40x P/E on FY26E/FY27E expensive
• GS on Gland Pharma
• Sell, TP Rs 1450
• Q2 sales/EBITDA growing 2%/-8% yoy (below GSe), primarily on a/c of weaker than expected pick-up in US as well as RoW markets
• EBITDA margin also below at 21.1%
• Management lowered its FY25 growth guidance to low double digits
• Jefferies on Gland Pharma
• Hold, TP cut to Rs 1840
• In-line 2Q albeit on subdued expectations
• Revenue growth (ex-Cenexi) was muted at 5% YoY
• Cenexi loss increased sharply QoQ
• Mgmt. guidance remains optimistic at low-double-digit growth in base & Cenexi breakeven by yr-end
• CITI on IGL
• Buy, TP Rs 525
• Encouraged by strong 9% yoy vol growth in 2Q, which marks a sharp rebound from 4% growth levels in recent qtrs that had been a drag on vals
• With several building blocks in place, vols to grow at a 7-8% CAGR over 3 yrs
• Open 90 day +ve catalyst watch
• CITI On OMCs
• Correction in stocks on weak 2Q earnings, which were driven largely by non-recurring factors, has made risk/reward significantly more favourable & provides an attractive re-entry point
• Constructive & Open +ve catalyst watch on HPCL
• Nomura on KEC Int
• Buy, TP Rs 1030
• 2Q PAT missed on higher interest cost & marginal EBITDA miss
• YTD order inflows at Rs135bn, up 50% y-y
• Order backlog at Rs 341bn, translated into 1.6x TTM sales
• STK trading at a P/E of 24x/ 18x its FY26F/ FY27F EPS
• Astral, Finolex and Supreme Industries In Focus
• DGTR notified preliminary findings from its anti-dumping investigations
• Provisional duties indicated at $25-399/MT on PVC suspension resin
• DGTR has invited comments from all interested parties in next 30 days
• Analysts Expect,
• Final anti-dumping duties to be notified and implemented in next 30-45 days
• If for no objections we see imports drying up and local pricing moving up
• This will eventually aid end-product channel re-stocking
• Price increases higher than anticipated could aid inventory gains
• The duty is likely to drive a price hike of Rs 6-8/kg ( 8–10%)
• Bureau of Standards (BIS) quality controls are awaited by December 24, 2024, which shall be positive too
• UBS ON ABB
• • Maintain Neutral with target price of Rs 9100
• • Q3CY24 - missed consensus topline and EBITDA by 11% & 5%; 110bps beat on EBITDA margins
• • Muted execution in process automation drove revenue miss
• • Margins upside in price
• CLSA PRICE ACTION BY LAURENCE BALANCO
• Nifty's price action early this year after its general election saw a bear trap
• The bear trap occurred when price action immediately reversed after price action broke down from the March-June trading range
• Nifty remains vulnerable post a mid- October breakdown from the August- October topping pattern
• This breakdown still supports a downside target of 22,990, Just below the 200DMA that currently sits at the 23,493 area
• Into the 22,990-23,493 area, we would look for evidence from the price structure and momentum indicators for a re-entry point
• Should the indicators fail to provide evidence of a tradable low at this level, the risk will remain to the downside
• Support: 23,493, 23,000, 22,990.
• Resistance: 24,694-24,753, 25,112, 26,277
• BERNSTEIN INDIA STRATEGY
• • Lets acknowledge the slowdown
• • Earnings misses have been a secular trend across sectors
• • Barring banks, whi helped by larger names, IT, which seems to have finally hit bottom
• • Healthcare, all other major sectors have seen their QZ results significantly miss consensus expectations at the start of the season
• • Autos have been hurt due to subdued demand
• • Staples has started to see an urban slowdown Utilities, Industrials and cement have seen low mainly because of weak capex and monsoons demand, m
• • Discretionary demand has also been weak
• • Believe the market hasn't yet fully priced in the extent of the slowdown that could be on the cards
• • Monsoons and elections could only be part of the reasons for the earnings misses
• • With urban slowdown reported, d, it is unlikely that rural growth due to strong monsoons could completely counter that effect
• • Thanks to an elongated period of strong growth, most participants, still consider the slowing signs an anomaly
• • Once reality hits, expect a further but limited moderation in Nifty from current levels to 23,500 which remains year-end target
• • Macro, too, is showing signs of slowing down across different indicators
• • This would not be a drastic moderation but significantly reduced from the growth v seen in FY24 values
• • In our view, bottom-up play in select sectors is a good strategy
• CITI ON BATA INDIA
• (CMP: 1,336)
• MAINTAIN SELL
• TARGET: 1,050
• Rev Growth Remained Muted, Implying 3.0% CAGR Over Pre-COVID Period
• Rev Growth Continues To Remain Weak
• Despite Early Festival & Multiple Initiatives
• Profitability Subdued As Well With EBITDA declining
• Find Current Valuation Of 47x/40x P/E On FY26/FY27 Expensive
• Citi On Indian Oil Marketing Companies
• • Prefer BPCL, HPCL, IOCL in that order
• • Initiate 90-day +ve catalyst watch on HPCL, keep open catalyst watch on BPCL
• • Recent stock correction on weak Q2 earnings has made risk/reward significantly more favourableCiti On Indian Oil Marketing Companies
• • Prefer BPCL, HPCL, IOCL in that order
• • Initiate 90-day +ve catalyst watch on HPCL, keep open catalyst watch on BPCL
• • Recent stock correction on weak Q2 earnings has made risk/reward significantly more favourable
• CITI ON EXIDE
• (CMP: 445)
• MAINTAIN BUY
• TARGET: 540
• PREV TARGET:610
• Q2 below Est, reflecting slightly lower rev & higher SG&A vs our Es
• Mgmt highlighted strong demand in replacement auto & industrial UPS
• Demand Weak In Home Ups Segment Due To Due To Early Onset Of Monsoons
• Demand Weak In Auto OEM Segment Due To Excess Channel Inventory
• Cut Earnings Estimates To Reflect Weakness In Revenue, & Elevated
• TODAY'S Q2 RESULT
• Alkyl Amines Chemicals Ltd
• Aptus Value Housing Finance India Ltd Berger Paints India Ltd
• CCL Products (India) Ltd
• Ceigall India Ltd
• Chemplast Sanmar Ltd
• Datamatics Global Services Ltd
• Dr. Reddy's Laboratories Ltd
• Eclerx Services Ltd
• GAIL (India) Ltd
• JK Tyre & Industries Ltd
• K.P.R. Mill Limited
• Manappuram Finance Ltd
• Mankind Pharma Ltd
• Max Healthcare Institute Ltd
• Mazagon Dock Shipbuilders Ltd
• Muthoot Microfin Ltd
• Oil India Ltd
• PB Fintech Ltd
• Raymond Lifestyle Ltd
• Saregama India Ltd
• SJVN Ltd, Sundram Fasteners Ltd
• Timken India Ltd
• Titan Company Limited
• Triveni Engineering & Industries Ltd Waaree Renewable Technologies Ltd Wonderla Holidays Ltd.
• NOMURA ON KEC INTL
• (CMP: 969)
• MAINTAIN BUY
• TARGET: 1,030
• Q2 PAT Missed On Higher Interest Cost & Marginal EBITDA Miss
• YTD Order Inflows At 135 Bn, Up 50% YOY
• Order Backlog At 341 Bn, Translated Into 1.6x TTM Sales
• Remain Positive On Co's Growth
• Believe Co Should Be A Major Beneficiary Of T&D Capex, Both Globally & Domestic
• NUVAMA ON AMARA RAJA
• • Maintain Buy, Cut target price to Rs 1580 vs Rs 1980
• • Amara Raja's Q2FY25 revenue/EBITDA in line with estimates
• • Stable growth likely in core business (lead acid batteries)
• • Augmenting focus on EVs
• • Lower multiple to the lithium business due to surging competitive intensity and the miss on PLI benefits.
• Jefferies on Gland Pharma
• Hold, TP cut to Rs 1840
• In-line 2Q albeit on subdued expectations
• Revenue growth (ex-Cenexi) was muted at 5% YoY
• Cenexi loss increased sharply QoQ
• Mgmt. guidance remains optimistic at low-double-digit growth in base &Cenexi breakeven by yr-end
• GS on Gland Pharma
• Sell, TP Rs 1450
• Q2 sales/EBITDA growing 2%/-8% yoy (below GSe), primarily on a/c of weaker than expected pick-up in US as well as RoW markets
• EBITDA margin also below at 21.1%
• Management lowered its FY25 growth guidance to low double digits
• GS on Bata India
• Sell, TP Rs 1300
• Sales growth continued to be tepid at 2.2% YoY (GSe: 3% YoY)
• This was only a slight improvement in trend from -1.4% YoY in 1Q
• Retail network expansion was 10% YoY, similar to 1Q
• PAT declined 30% YoY & missed GSe by 13%
• Nomura on ABB
• Neutral, TP Rs 8260
• 3QCY24: Weak execution offsets strong EBITDA margin
• Revenue at Rs 29.1bn, up 5% y-y (-11% vs est.)
• EBITDA margin at 18.6%, up 271bp y-y vs est. 18.2%
• Order inflows were at Rs 33.4bn, up 11% y-y (-8% vs est.
• UBS on ABB - 1st cut
• Neutral, TP Rs 9100
• Orders/revenue/EBITDA grew 11%/5%/23%
• EBITDA margins of 18.6% strong led by discrete automation & electrification
• Muted execution in process automation (12% YoY decline) drove revenue miss
• Margins upside in price
• MS ON EXIDE
• OW . TP Rs 538
• 2Q weaker than MSe, while Amara Raja's was largely in line
• Expect Exide's revenue growth to catch up in F2H25
• Also believe Exide has benefits of scale and pace in new energy business, keeping us OW
• CITI On OMCs
• Correction in stocks on weak 2Q earnings, which were driven largely by non-recurring factors, has made risk/reward significantly more favourable & provides an attractive re-entry point
• Constructive & Open +ve catalyst watch on HPCL
• CHINA OCT MANUFACTURING DATA
• Caixin Oct. Services PMI 52.0 [Est.50.5 Prev.50.3]
• Caixin Oct. Composite PMI 51.9 [Prev. 50.3]
• CHINA OCT MANUFACTURING DATA
• Caixin Oct. Services PMI 52.0 [Est.50.5 Prev.50.3]
• Caixin Oct. Composite PMI 51.9 [Prev. 50.3]
• CITI on IGL
• Buy, TP Rs 525
• Encouraged by strong 9% yoy vol growth in 2Q, which marks a sharp rebound from 4% growth levels in recent qtrs that had been a drag on vals
• With several building blocks in place, vols to grow at a 7-8% CAGR over 3 yrs
• Open 90 day +ve catalyst watch
• ANGEL ONE OCT BIZ UPDATE
• Client Base Up 2.1% MoM And Up 57.8% YoY At 28.06 m
• Number Of Orders Up 9.3% MoM And Up 61.7% YoY At 171.26 m
• Gross Client Acquisition Down 25.9% MoM & 3% YoY At 0.70 m
• CARTRADE TECH: Co. announced an outstanding performance during the Diwali-Dussehra festive period from its Consumer Group (CarWale and BikeWale), achieving an all-time highs in October 2024.
• Consumer group expects to report an impressive 30% year-over-year (YoY) revenue growth for the third quarter.
• Monthly unique customers in October 2024 for the Consumer Group platforms surged by 36% YoY, marking a substantial increase in consumer engagement and traffic.
• L&T : Company has entered into an Investment Agreement on November 5, 2024 for acquisition of upto 21% stake in E2E Networks Limited.
• 15% stake in E2E Networks, 29,79,579 shares at Rs. 3,622.25/share, totaling Rs. 1,079.27 Crore Via Preferential issue
• 6% stake from founder, 11,91,831 shares at Rs. 2,750/share, totaling Rs. 327.75 Crore Via Secondary Acquisition
• POONAWALLA FINCORP; PROMOTER BUYS ADDITIONAL 0.08 % STAKE ON 31 OCT , 1 NOV VIA OPEN MARKET
• Morgan Stanley Says Long-Term Attractiveness Of The Indian Market Doesn't Change
• Excitement In China & Other EM Will Just Lead To Rebalancing
• The Key Positive For India Is The Huge Domestic Pool
• Not Concerned About The FII Selling
• STEEL STOCKS: Govt likely to announce safeguard duties on steel soon
• • Anti-dumping duty on steel may rise to 12% from current 7.5%
• • Finance Ministry expected to decide on measures to protect domestic industry from import surge
• • Govt considers tightening quality checks on imported steel
• • Steel Ministry urges Finance Ministry for action amid rising imports
• • Alert: Steel exports down 36%, imports up 41% for H1 FY25
• • Industry calls for anti-dumping and safeguard duties against cheap imports from China, Vietnam
• • Industry seeks duties similar to US, EU, Canada's 25% safeguard duty
• • Alert: Sharp rise in imports despite high inventory of domestic steel -ETNOW
• VENUS REMEDIES: Company Expands Reach in ASEAN Region with Malaysian Plc/S GMP Approval for Pre-Filled Syringe Facility
• This key accreditation opens doors to expanded global business opportunities by enabling quicker cipprovals in other Plc/S member countries.
• This marks the first Plc/S GMP accreditation for Venus Remedies' PFS facility, adding to the GMPs already secured by the company from more than 25 regulatory authorities, including the WHO, European union and Saudi Arabia.
• The company has more than 35 marketing authorisations fc)r its flagship PFS drug, enoxaparin, from various important markets like Saudi Arabia, Azerbaijah, Philippines, Myanmar, Kenya, Moldova, and Nepal.
• DCM Shriram Mngmt Says Expect H2 To Be As Good As Q2 Supported By Better Costs
• New Investments Are Coming On Track
• Have Taken Up Energy Saving Initiatives