Market Highlights

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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November 04, 2024

• GS on M&M
• Buy, TP Rs 3600; added to APAC conviction list
• Expects co’s strong new SUV order backlog & upcoming Battery EV launches to support industry leading growth visibility vs peers
• Separately, co’s farm equipment is entering phase of improving underlying market dynamics
• Kotak Inst Eqt on M&M
• Upgrade to buy, TP Rs 3150
• Expect to outperform industry growth across auto & tractor segments including domestic PV & CV segments
• Tractor segment expected to witness uptick during 2HFY25E driven by favorable monsoon &higher reservoir levels
• MS on Tata Motors
• EW, TP Rs 1178
• JLR October US Retail Sales
• Land Rover US retail sales increased 25% YoY to 6.9k units
• Jaguar US retail sales increased 4% YoY to 715 units.
• Mix of RR, RR Sport and Defender stood at 71% against 70% in F2Q25
• JLR incentives/unit increased 127% YoY
• GS on OMCs
• 2Q core EBITDA broadly weaker than expected IOC’s earnings miss driven by weaker-than-expected earnings across refining, marketing & petchem segments
• See largest downside risk for IOC; retain Sell, TP Rs 105
• Retain Neutral on HPCL & BPCL
• DAM Cap on Bharti Airtel
• Initiate Buy, TP Rs 1970
• Home broadband is on cusp of multi-year growth, while the B2B business continues to expand steadily.
• Overall, estimate FY25-27 revenue and EBITDA CAGR to be 12%/15% respectively for India biz
• Nomura on Cipla
• Upgrade to buy, TP Rs 1800
• With relative underperformance vs sector, risk-reward appears favorable
• Goa inspection outcome +ve
• Expect upside from inhalers/ injectables in FY25-27F & ARVs will likely contribute materially beyond FY30F
• UBS on Sun Pharma
• Buy, TP Rs 2450
• PI on Leqselvi is not end of opportunity
• Settlement is still one of possible options
• Incyte has a tiered royalty structure on Lilly's Olumiant
• Leqselvi launch could be delayed beyond FY25, but NPV may not change much
• BEAT THE STREET BULLETIN
• Date: 01-Nov to 03-Nov
• ACQUISITION
• APAR INDUSTRIES: Company’s wholly owned subsidiary named “APAR INDUSTRIES LATAM LTDA” have been registered at Brazil pending receipt of other approvals.
• DLF: DLF To Invest Rs 8,000 crore in New Ultra-Luxury Project 'The Dahlias' Aims to Capture Market Demand
• SAHAJ SOLAR: Co. has incorporated subsidiary company, SAHAJ RENEWABLE POWER LIMITED in the Uganda.
• APOLLO HOSPITALS: Apollo Hospitals Worli LLP ("LLP"), a subsidiary of Apollo Hospitals Enterprise Limited , proposes to establish a 500 bed hospital in Worli Mumbai through a Build, Operate and Manage agreement.
• BHARTI AIRTEL: Co. signs agreement to acquire ~5% stake in Ericsson US Dhaulagiri LLC
• FUND RAISING
• SASKEN TECH: Board Meet On 7 Nov To consider proposal for strategic investment and other business matters.
• OIL COUNTRY TUBULAR: Board Meet On 11 Nov To Consider Fund Raising Via Preferential Issue Along Wigth Q2 Results (Mcap 227cr)
• MIDWEST GOLD: Board Meet On 07 Nov For Raising Of Fund By The Way Of Preferential Issue. (Mcap 27.4cr)
• YATHARTH HOSPITAL: Board Meet On 7 Nov To Consider Fund Raising Along Wigth Q2 Result
• ORDER WIN
• GENSOL ENGINEERING: Company Secures INR 780 Crore Solar PV Project from leading public sector utility in Maharashtra, is set to be executed over a 15-month period.
• AZAD ENGINEERING: Company has signed Long Term Contract & Price Agreement (LTCPA) with Mitsubishi Heavy Industries Limited, Japan (MHI) for supply of highly engineered & complex rotating and stationary Airfoils for Advanced Gas & Thermal power turbine engines to meet their global demand in the power generation industry.
• Time Period: 5 years
• PREMIER ENERGIES: Wins Rs 560 Cr Order Premier Energies International Private Ltd. & Premier Energies Photovoltaic Private Ltd, the subsidiaries of Premier Energies Limited.
• SAMPRE NUTRIENTS: Wins Rs 36 Cr Order Company has entered into manufacturing Agreement dated October 16,2024, the fully executed copy of the agreement was received on November 1,2024 with Perfetti Van Melle India Pvt Ltd 200 Tons per month valuing to Approximately Rs 36 Cr Annual
• NBCC: Wins Rs 235 Cr Order From Mahatma Gandhi Kashi Vidyapith University Varanasi Sampurnanand Sanskrit University, Varanasi, and Power Grid Corporation of India Limited.
• ADVAIT ENERGY: Wins Rs 6.7 Cr Order
• Company has received an order for Design, Manufacturing, Testing at Manufacturer's works And Supply of Emergency Restoration Systems (ERS) for 220 KV Transmission Lines In Jammu Region
• NCC: Wins Rs 3496 Cr Order In Oct Month
• Out of these orders ₹ 2694 Crores relates to Building Division, ₹ 538 crores relates to Electrical Division and ₹ 274 crores relates to water &other Divisions.
• ASHOKA BUILDCON: Wins Rs 312 Cr Order Company had submitted bid for the following Project to Maharashtra State Electricity Transmission Co. Ltd.
• THAI CASTING: Wins Rs 154 Cr Order Company Has Received New Orders For Supply of various automative & non automative products
• OTHER UPDATE
• MYSORE PETRO: Company has filed a writ petition with the High Court of Karnataka on 28th October, 2024 against the award of Industrial Tribunal, Hubbali, Karnataka. The intimation was received on 2nd November, 2024.
• RUSHIL DECOR: Company will carry out a planned shutdown of Chikmagalur MDF manufacturing unit tentatively from November 05, 2024 for a period of approximately 16 days for maintenance work.
• HUL: Company Informs Completion of Divestment of Water Purification business of the Company carried under the brand “Pureit".
• INNOVANA THINKLAB: Company Got In-principle approval from National Stock Exchange of India Limited for migration of trading in the equity shares of the company from SME Platform to Main Board
• ZEE LEARN: Co. received an email from ACRE notifying it of an October 30 assignment of outstanding loan facilities by J.C. Flowers Asset Reconstruction to ACRE.
• ELGI EQUIPMENTS: Update On Divestment in Compressed Air Solutions of Texas (CAST) by Elgi Compressors USA Inc, wholly owned subsidiary of the Company.
• RESIGNATION/APPOINTMENT
• APTECH: Mr. Atul Jain has officially taken over as the Managing Director and CEO and Key Managerial Personnel (KMP) of the Company, effective from November 1, 2024.
• VEEDOL CORP: Resignation of Mr. SANJAY BHARADWAJ as Vice President (Group Manufacturing)
• NALCO: On attaining the age of superannuation, Shri Sridhra Patra, Chairman-cum-Managing of the Company has been released from the services of the Company w.e.f. 31.10.2024
• USFDA
• SUN PHARMA: Update On Preliminary injunction granted in a US Court As a result of the court decision, Sun is stopped from launching LEQSELVITM until a subsequent favorable court decision or until the expiry of patent in lawsuit, whichever is earlier.
• Capri Global Says
• Credit cost will remain steady at 1%
• MSME advances will see 10-12% growth this year, 20% next year
• Bank financing the sector is getting difficult
• AUM growth will be 32%-35% in FY25
• AUM will be at Rs27000cr by FY27
• Global-Market Insights 1/n
• The US markets are expected to be extremely turbulent this week due to Tuesday's presidential elections
• -US markets on Friday ended higher, rebounded as Amazon's strong earnings supported and countered a significant drop in job growth in October
• -Amazon share rose 6.2% after it reported strong retail sales, boosting profit above estimates
• -Apple fell 1.2% as decline in its China sales during quarter and continues selling from Berkshire
• -Intel share jumped 7.8% after a better-than-expected revenue forecast
• =====
• Global-Market Insights 2/n
• -Dow +288, S&P500 +23, Nasdaq +145
• -Brent oil $73.10
• -US 10Y bond yield at 4.386%
• -Dollar Index 104.317
• -Gold at $2746
• =====
• Global-Market Insights 3/3
• -October nonfarm payrolls data showed an increase of just 12,000 jobs vs estimate of a 113,000 rise
• -Reason behind this is disruptions from hurricanes and strikes
• -However, the unemployment rate held steady at 4.1%
• -US Weekly: S&P500 -1.38%, Nasdaq -1.51%,
• Dow -0.16%
• GOLDMAN SACHS ON ASIA-PACIFIC CONVICTION LIST
• Add Honda and M&M to APAC conviction list
• Expect company's strong new SUV order backlog and upcoming BEV launches to support industry leading growth visibility vs peers
• Cash cow business in farm equipment is entering a phase of improving underlying market dynamics
• Expect 20%/100% EBIT/FCF CAGRs over FY25-FY27
• • Buy with target price of Rs 3600
• KOTAK SECURITIES ON M&M
• Upgrade to Buy from Add; Cut target price to Rs 3150 from Rs 3300
• Tractor industry poised for recovery during H2
• Well-positioned despite slowdown in domestic passenger vehicle segment
• Demand trends remain muted in LCV segment
• Continuing to execute well in all three segments and improvement in return ratios
• M&M remains top pick
• DAM CAP ON BHARTI AIRTEL
• • Initiate Buy with target price of Rs 1907
• • Telecom industry has now reached a state of maturity
• • Home broadband is on the cusp of a multi-year growth
• • B2B business continues to expand steadily
• • Expect FY25-27 revenue/EBITDA CAGR to be 12%/15% for India businesses
• Q2FY25 Earnings So Far
• 94 MSCI India co. have reported earnings so far
• Earnings are flat YoY and -6% QoQ significantly dragged by Energy
• 46% of companies have missed estimates, while 35% of companies have beaten estimates
• Avg. EPS miss of 6-35% in most domestic cyclical sectors
• Co. with EPS misses saw avg. 1-day price correction of 4% - largest over the past 7 quarters
• UBS ON SUN PHARMA
• Preliminary Injunction on Leqselvi is not the end of the opportunity
• Settlement is still one of the possible options
• Grant of Pl implies Incyte could extract more value in a settlement scenario
• Leqselvi launch could be delayed DODI beyond FY25, but NPV may not change much
• JP MORGAN ON SUN PHARMA
• Sun plans to file an appeal against the judgement
• Could also look to settle with Incyte to expedite the launch 0100
• In worst-case scenario, the co. would be only able to launch product post expiry (December 2026)
• Ascribed an NPV of $546mn or Rs 19/sh for Leqselvi assuming a launch in 2026
• Launch post CY26, will have a marginal impact on fair value as Sun will avoid paying royalty in that case
• Believe specialty business has decent growth potential - 20% CAGR over FY24-27 fueled by existing products such as Ilumya, Winlevi and Cequa
• HCL TECH: HCLTech announces new AI/Cloud Native Lab in Singapore in partnership with Singapore Economic Development Board
• HCLTech’s Lab in Singapore will be the company’s fifth in its global network, expected to open in 2025.
• MORGAN STANLEY ON JLR OCT U.S. RETAIL DATA
• • Land Rover: US retail sales rose 25% YoY, reaching 6,900 units
• • Jaguar: US retail sales increased 4% YoY, totaling 715 units
• DAM CAP ON BHARTI AIRTEL
• (CMP: 1,616) INITIATE BUY TARGET: 1,970
• After A Multi-Yr Roller-Coaster, Telco Ind Has Reached A State Of Maturity
• Co's Wireless Subs Are Expected To Grow More Than 2% per annum
• ARPU Growth Is Expected To Be Over 7% per annum Over The Next Decade
• Home Broadband is On The Cusp Of A Multi-Year Growth
• B2B Business Continues To Expand Steadily
• Overall, Est FY25-27 Rev & EBITDA CAGR To Be 12%/15% Respectively For India Biz
• Contribution To Bharti's Vain Is A Mere 1.5%
• Airtel Africa Continues To Be One Of Market Leaders In Its Geographies
• UBL , UNITED SPIRITS, RADICO, TILAKNAGAR IND ; Liquor sales expected to surge beyond Diwali 2024 in key states - ET
• FCI and state agencies procure 85.41 lakh metric tonne (LMT) of paddy in Punjab during Kharif Marketing Season (KMS) 2024-2025 as of November 2
• Centre disburses Rs 19800 crore benefitting 4 lakh farmers
• Punjab paddy procurement in full swing, 4132 millers allotted work
• The Procurement of Paddy for KMS 2024-25 has commenced in Punjab from 1st October 2024 and 2927 designated mandis and temporary yards are operational throughout the State for smooth procurement from the farmers of Punjab. Central Government has fixed an estimated target of 185 LMT for Paddy Procurement for the ongoing KMS 2024-25 which shall continue upto 30.11.2024.
• Though the procurement commenced a bit late due to heavy rains in September and high moisture content in paddy, it is back on track and has picked up in full swing now.
• MORGAN STANLEY ON JLR OCT U.S. RETAIL DATA
• • Land Rover: US retail sales rose 25% YoY, reaching 6,900 units
• • Jaguar: US retail sales increased 4% YoY, totaling 715 units
• NOMURA ON CIPLA
• (CMP: 1,559)
• UPGRADE BUY
• TARGET: 1,800
• With Relative Underperformance Vs Sector, Risk-Reward Appears Favorable
• Goa Inspection Outcome Positive Expect Upside From Inhalers/ Injectables In FY25-27.
• ARVs Will Likely Contribute Materially Beyond FY30
• Expect Stk To Trade At 28-33x 1-yr Fwd Earnings Ex-gRevlimid.
• PVR INOX: SINGHAM AGAIN CROSSED 100 CR COLLECTIN ON DAY 3
• MOVIE MINTED 35 CR ON DAY 3 , TOTAL COLLECTION STANDS AT 121 CR
• NOMURA ON SUN PHARMA
• (CMP: 1,831)
• MAINTAIN NEUTRAL
• TARGET: 1,850
• NJ District Court Grants Preliminary Injunction Moved By Incyte Corp Against Co
• Injunction Prevents Co From Launching Leqselvi,
• Received Approval From US FDA In July 2024 For Treatment Of Alopecia Areata
• Co Intends To Appeal The District Court's Decision
• Have Assumed Leqselvi Launch In FY25
• Factored In Revenue Of $10/$80/$150 m In FY25/26/27 Into Est
• Earnings Impact From Product, Estimate Is 0.4%/3.1%/5.2% In FY25/26/27
• BHOOL BHULAIYA 3 ALSO CROSSED 100 CR COLLECTIN
• MOVIE COLECTED 33.5 CR ON DAY 3 , TOTAL COLECTION 106 CR
• BOTH MOVIES DID ₹ 200 CR + NET COLLECTION IN INDIA IN 3 DAYS
• WELSPUN CORP: WINS RS 1300 CR ORDER
• Co. announce receipt of two large orders in the USA, cumulatively valued at Rs 1300 Crore (approx.) for supply of coated HSAW Pipes for Natural Gas Pipeline Projects.
• Execution of these orders will be during FY26.
• This win further reinforces Co.s leading position in the USA O&G market.
• Co. Says Our outlook for the USA market remains extremely positive.
• We have also participated in few more projects and are favourably placed in additional 1-2 large projects.
• GS on M&M
• Buy, TP Rs 3600; added to APAC conviction list
• Expects co’s strong new SUV order backlog & upcoming Battery EV launches to support industry leading growth visibility vs peers.
• Separately, co’s farm equipment is entering phase of improving underlying market dynamics
• Kotak Inst Eqt on M&M
• Upgrade to buy, TP Rs 3150
• Expect to outperform industry growth across auto & tractor segments including domestic PV & CV segments
• Tractor segment expected to witness uptick during 2HFY25E driven by favorable monsoon &higher reservoir levels
• MS on Tata Motors
• EW, TP Rs 1178
• JLR October US Retail Sales
• Land Rover US retail sales increased 25% YoY to 6.9k units
• Jaguar US retail sales increased 4% YoY to 715 units.
• Mix of RR, RR Sport and Defender stood at 71% against 70% in F2Q25
• JLR incentives/unit increased 127% YoY
• GS on OMCs
• 2Q core EBITDA broadly weaker than expected IOC’s earnings miss driven by weaker-than-expected earnings across refining, marketing & petchem segments
• See largest downside risk for IOC; retain
• Sell, TP Rs 105
• Retain Neutral on HPCL & BPCL
• News Headlines from Business News Agencies:
• Business Standard
• Reliance Consumer targets chips, biscuits market with higher trade margins
• 41% workers on contract in formal manufacturing sector in FY23: ASI data
• India's EV market sees festive season boost, reversing recent slump
• Banks, FIMMDA discuss MIBOR replacement with collateralised rate framework
• 18 companies in Nifty-50 miss estimates in September quarter, shows data
• India boosts global share in petroleum, gemstone, sugar exports over 5 yrs
• Opec+ agrees to delay planned December output increase for one month
• Punjab paddy procurement crosses 8.5 MT, Centre says ops in full swing
• Anarock FY25 revenue may rise 40% on strong housing demand: Chairman Puri
• Construction of 12 river bridges completed for Gujarat bullet train project
• GX group aims for 60% reusable materials in products within two years: CEO
• Sebi proposes interest rate derivatives for hedging by REITs and InvITs
• India's progress on fossil fuel subsidy reform noteworthy, says ADB
• Economic Times
• Coal India hopes to rejoin dividend list as ECL improves performance
• Ujjivan Small Finance Bank to apply for universal licence this fiscal: MD Sanjeev Nautiyal
• VW cost cutting necessary after 'decades of structural problems', CEO tells paper
• Govt infuses Rs 1,650 cr in RINL to keep it as a going concern
• Karur Vysya Bank strengthens retail footprint in Tamil Nadu and Karnataka
• Canara Bank aims Rs 6,000 cr recovery in H2 FY25
• Apollo Hospitals announces Rs 1,625 crore expansion in Mumbai and Lucknow
• Iron ore output up 5.5% at 135 MT in 1st half of FY25
• Suven, Cohance aim to double combined business revenue to Rs 6,000 cr by FY29
• Federal Bank acquires five floors office space in Mumbai’s Wadala from Varde Partners
• Telangana govt to come up with new energy policy soon, says Deputy Chief Minister
• Netflix India sees double-digit growth in revenue, profit for FY24
• Mint
• FMCG firms caution price hike as input costs and food inflation rise
• US Fed set to cut rates for second time as it faces hazy post-election outlook
• DLF to develop ultra-luxury housing project worth ₹8,000 crore in Gurugram
• ONGC fails to get partner for Deen Dayal gas field for third time
• India may extend bid deadline for coal gasification scheme
• Maruti Suzuki expects festive momentum, wedding season to carry November sales
• India commits to protect 30% land, marine area to eliminate biodiversity loss
• Nvidia to replace Intel in Dow Jones Industrial Average
• FPIs dump ₹94,017 crore in Indian equities; outflow hit record-high in October
• Sundar Pichai shows confidence in firm's legal position on antitrust rulings
• China’s EV makers set sights on Latin America in global expansion
• Amazon India sees festive surge in luxury sales: Apple tablet sales up 10x
• Paint, Aviation (+ve)
• OPEC+ likely to agree to delay December output hike for one month
• CEMENT STOCKS - Cement Channel Check October 2024
• East, North, West cement bag rates rise between 1-3% MoM
• Demand largely still weak and more competition is there
• NOMURA ON TATA POWER
• INTIATE COVERAGE WITH UNDERPERFORM RATING, TARGET PRICE 440
• Emkay: Possible U.S. Election Outcome Impact on India Equities
• Republican Sweep:
• • May trigger a short-term rally for Indian equities
• • Possible sectoral beneficiary: IT, BFS
• Democrat Sweep:
• • Could trigger nervousness in global equities, leaving India somewhat vulnerable
• • IT could be vulnerable in the short term on high valuations, corporate tax hike concerns
• TODAY'S Q2 RESULT
• ABB India Ltd
• Automobile Corporation of Goa Ltd
• A F Enterprises Ltd
• Andhra Paper Ltd
• Amara Raja Energy & Mobility Ltd
• Bata India Ltd
• Beeyu Overseas Ltd
• Chemfab Alkalis Ltd
• Cinerad Communications Ltd
• Chaman Lal Setia Exports Ltd
• Sai Silks (Kalamandir) Ltd
• Kaycee Industries Ltd
• KEC International Ltd
• Kunststoffe Industries Ltd
• Manali Petrochemical Ltd
• Maral Overseas Ltd
• Procter & Gamble Health Ltd
• Poddar Pigments Ltd
• POCL Enterprises Ltd
• QGO Finance Ltd
• Ramchandra Leasing & Finance Ltd
• SAMKRG Pistons & Rings Ltd
• Shankara Building Products Ltd
• Narmada Gelatines Ltd
• SI Capital & Financial Services