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September 27, 2024

India Daybook – Stocks in News
Railtel Corp: Company gets work order Rs 1.56 billion from rural development department, Mantralaya, Maharashtra (Positive)
RITES: Consortium emerges lowest bidder in a Delhi Metro project worth ₹87.58 cr. (Positive)
Netweb Technologies: Company received an Intel Partner Award for Outstanding Growth in the Data Center & AI Group. (Positive)
Biocon: Company partners with Tabuk pharmaceuticals to commercialize its glucagon-like Peptide-1 (GLP -1) products in the Middle East region. (Positive)
Anuh Pharma: Company has received approval from EDQM for CEP of Allopurinol API which is used to treat Gout and High Uric Acid Levels. (Positive)
Infosys: Company announces strategic collaboration with Sally Beauty (Positive)
Sobha: Credit ratings of the company has upgraded by ICRA Limited. (Positive)
Jubilant Pharmova: Company announced that the USFDA completed an audit of its Allergy Immunotherapy and Contract manufacturing facilities in Spokane, Washington, with no observations. (Positive)
Krsnaa Diagnostics: Company Got LOI to Commission Radiology Services. (Positive)
Yatharth Hospital: Company receives mega target price on expectations of exponential boost in topline. (Positive)
Zomato: Swiggy files ₹3,750 crore IPO to expand quick commerce, pay off debt (Positive)
Adani Green: Company and Total Energies finalise $444-million JV for Gujarat solar projects (Positive)
PEL: Arm Piramal Capital & Housing Finance sells immoveable property comprising of land & building situated at Santacruz East, Mumbai Property for ₹187 crore (Positive)
Elgi Equipments: Company’s subsidiary, Elgi USA, is divesting its entire stake in its joint venture (Positive)
Marsons: Company gets LOI worth Rs 6.75 billion from Nacof Oorja to develop a 150 mw (ac) grid-interactive ground-mounted solar PV Power generation plant in Rajasthan (Positive)
Sun pharma: Company presents new clinical efficacy and safety data in severe dermatological conditions at the 2024 EADV congress, new data demonstrate improved hair satisfaction in more than 95% of patients taking DEURUXOLITINIB (Positive)
Thangamayil Jewellery: Company announced a proposed rights issue of up to Rs 600 Crores to raise funds. (Positive)
Lemon Tree: Company announced a new hotel in Sasan Gir, Gujarat, expected to open in FY 2026 (Positive)
PC Jeweller: Bank of India approved to one-time settlement proposal submitted by Company (Positive)
Akme Fintrade: Company partners with Mas financial services for Co-lending in MSME sector. (Positive)
RVNL: Company has signed a MoU with Engineers India Limited to explore global business opportunities, share information, and collaborate on infrastructure projects (Positive)
Max Healthcare: Company executes share purchase agreement with Jaypee Infratech & Lakshadweep Group for Rs 398 crore. (Positive)
SJVN: Company inks two initial pacts with #Maharashtra government for developing pumped storage and floating solar projects with investment of Rs 48,000 crore. (Positive)
Shivalik Bimetal: Company targeting 30% market share in North America, Western Europe (Positive)
Union Bank: Joint Forum of AIUBEF, AIUBSF, UBSA and UBIEU, Delhi, consisting of Customer Service Associates and Office Assistants propose to go on Strike On September 27, 2024. (Neutral)
Nuvama: Edel Finance & Ecap Equities to sell 6.4% equity in Nuvama Wealth Management via block deals, floor price for the deal is at ₹6,455/sh (Neutral)
Pricol Ltd: Company has appointed Mrs. Manoharan Malavika Thothala as an Independent Director for a 5-year term starting October 1, 2024. (Neutral)
Ask Automotive: Company to exercise oversubscription option up to 0.55% for offer for sale by promoter. (Neutral)
Ola Electric: Company launches ‘Network Partner Program’, Onboards over 600 partners to accelerate EV adoption and Endiceage pan India. (Neutral)
KNR Constructions: Company Board Meeting on 26th September 2024 appointed Shri W R Reddy as Chairman, effective 1st October 2024. (Neutral)
Indian Bank: Bank’s Board approved raising an additional Rs.5000 crore in Long Term Infrastructure Bonds, bringing the total to Rs.10,000 crore for FY 2024-25. (Neutral)
Escorts Kubota: Escorts Kubota finance limited, a wholly-owned subsidiary of Company, has received a certificate of registration from the RBI to operate as a non-banking financial institution. (Neutral)
IndiGo: Company appoints Isidro Porqueras as COO, effective November 1, 2024 (Neutral)
Torrent Pharma: Company refutes claims of Shelcal 500 allegedly failing CDSCO quality test (Neutral)
LIC: S Sunder Krishnan resigns as Chief Risk Officer of Life Insurance Corporation of India. (Neutral)
Uno Minda: Company acquired 49% stake of Minda Nabtesco automotive from Nabtesco automotive corporation for Rs 13 million (Neutral)
ADF Foods: Company approved acquisition of remaining 30% stake from minority members of vibrant foods, entity being acquired belongs to food sector (Neutral)
HDFC Bank: Sells a housing loan portfolio of about $717 million to reduce credit book. (Neutral)
KEC International: Company raises Rs 870 crore through a qualified institutional placement offer. (Neutral)
PNB: Bank closes QIP, sets floor price at Rs 103.75/share. (Neutral)
Godrej Properties: Company' board will meet on October 1 to consider a proposal to raise funds through the issue of securities (Neutral)
AB Capital: Company invests Rs 500 crore in AB Finance via rights subscription (Neutral)
Tyre Stocks: CRISIL report: Rising natural rubber prices to hit tyre maker margins, supply deficit may triple. (Negative)
DUE DILIGENCE CONCERNS
SEBI urges BSE, NSE to tighten SME IPO oversight.
UBS India Pharmaceutical Sector
Initiate with Sell on (1) Zydus (Initiate with a Sell rating and price target of Rs850) and Dr. Reddy's (Initiate with Sell, price target Rs 5,700) as street is over estimating core margins and (2) Sell on Aurobindo (Initiate with Sell, with a price target of Rs1,333) as valuations are high despite low growth and low RoCE (3) Sell on Lupin (Initiate coverage with a Sell and a price target of Rs 2,250) as it is already pricing one-off benefits in FY25 and FY26.
UBS prefer Sun Pharma (Initiate coverage with a Buy rating and a PT of Rs2,450) where we expect patented molecules to double in revenues over four years and margins to expand by 650bps for overall EPS CAGR of 19%. We like Cipla (Initiate at Buy with a price target of Rs2,060) also where US upside from injectable and respiratory portfolio is not yet fully factored in.
Bank of Maharashtra is coming with QIP for equity capital raising .
Tentative Issue Size: Total Rs.3500 crore (Base issue Rs 1000 crore and Green Shoe Option of Rs.2500 crore)
Face Value Rs 10
Expected price : In the range of 58.00 - 59.00( will be detained as per SEBI formula).
Qualified Institutional Investors may apply.
Read our Research Report (issued earlier post Q1/ 25 results) reproduced below alongwith the disclaimers.
Ajcon Global Research Team
UBS on Pharma
Initiate Sell Call On Zydus, Target Rs 850 & Dr Reddy's, Target Rs 5,700
Sell Call As Street Is Over Estimating Core Margin
Initiate Sell Call On Aurobindo, Target Rs 1,333 As Valuations Are High Despite Low Growth
Initiate Sell Call On Lupin, Target Rs 2,250 As It Is Already Pricing One-off Benefits In FY25 & FY26
Street Under-appreciating Growth Slowdown In Both India & US
India & US Account For 70-80% Of Sector Profits And Would Imply Lower Growth
Balancesheets Are Healthy To Invest For New Growth Drivers
Growth Normalisation May Take Time
Prefer Sun Pharma, (Buy Call, Target Rs 2,450)
Expect Sun Pharma’s Patented Molecules To Double In Revenues Over Four Years
Sun Pharma’s Margin Expected To Expand By 650 bps For Overall EPS CAGR Of 19%
Like Cipla (Buy Call, Target Rs 2,060)
Cipla’s US Upside From Injectable & Respiratory Portfolio Is Not Yet Fully Factored In
MS on IT Sector
Accenture's Results & FY25 Guidance Do Not Point To Any Material Change In The Environment
Results & FY25 Guidance Of Accenture Confirm Expectations Of Organic Growth Improving Over Next 12 Mths
There Is A Sign Of Relief For Sector Especially Post The Run-Up In Last 3-4 Months
View Accenture’s Results As Neutral To Slightly Positive For India IT Sentiment
India IT Neutral To Slightly Positive On Commentary On Broad-based Improvement In Growth
Organic Growth In Q4 Became Positive As Per Accenture Which Is Slightly Positive For Indian IT
Nomura on IT Sector
Buy Call On Infosys, Wipro & Cognizant Tech In Large Caps & eClerx Svcs In Midcaps
Reduce Call On LTIMindtree, Mphasis & LTTS
Accenture's FY24 Organic Growth Guidance At 0-3% Vs -1% Achieved In FY24
FY25 Revenue Growth Guidance For Accenture At 3-6% Includes Over 300 bps Inorganic Contribution
Order Booking Growth Continues To Be Strong Driven By Large Projects
GenAI Opportunity Continues To Mature
Growth Likely To Bottom Out In FY25
MS on SBI Cards
Equal-Weight Call, Target Rs 745
Co’s August Spending Market Share Rose Nearly 18 bps MoM, To 15.7%
On A YoY Basis, Spending Fell 3%, Lower Than +13% For The Industry
Fall In Spending Reflects Continued Impact Of RBI's Notification On Corporate Card Spending
CLSA on Metals
Chinese stimulus: Indian mills well placed for a demand-driven upcycle
Assuming strong demand driven upcycle, would see highest upside for Vedanta(+24%), Tata Steel(+19%) & Hindalco(+16%)
Prefer aly plays but see near-term support for ferrous names as well
Jefferies on Real Estate
Residential Market Activity Has Tapered In 2Q
There Should Be Flattish Pre-Sales For Our Coverage, Following Q1’s 70% Sales Growth
Market Activity To Revive In Near-term As Major New Launches Are Likely In Coming Weeks
Low Inventories And Broad-based Price Appreciation Suggest Fundamentals Remain Strong
The Potential For Rate Cuts Could Help Broaden Market Activity
Overall Residential Markets Remain Healthy & 15-35% Growth Guidance Should Be Met
SEBI released new report on FnO traders
Only 101 people earned more than 10 CR
2400 People earned between 1 CR to 10 CR
26500 People earned between 10 Lakh to 1 CR.
Just 29K People have made some money to call it a career.
PARAG MILK UP BY 6% WITH VOLUMES
Equity
Nifty closed @26,216 (+212) and Sensex 85,836 (+666) on Thursday GIFT Nifty was trading at 26,342 (as of 7:30 am)
FIIs net bought equities in cash to the tune of Rs 630 cr whereas DIIs bought equities in cash worth Rs.2,405 cr on September 26, 2024
Accenture raised its revenue guidance for FY25 to be in the range of 3% - 6% (vs FY24 guidance of 1.5% - 2.5%)
Sebi likely to introduce MF Lite regulations for passive funds Madhabi Puri Buch
National Electricity Plan 2023-32 increased the peak demand target, from 380 GW earlier, as power demand grew at a 7% CAGR
L&T achieved 30-35% of overall order inflow guidance in 1HFY25 with total order inflows for 2Q stood in the range of Rs 28000 to 47500 cr.
India's steelmakers have urged the government to double tariffs on steel imports to 15% to counter a surge in cheaper shipments from China
HDFC Bank sold a housing loan portfolio of about Rs 60 bn ($717 million), seeking to further lighten its credit load amid regulatory pressures on the industry
Hindustan Copper to boost copper production and reduce Imports It achieved ore production of 3.78 MT in FY24 against 3.35 MT in FY23 registering a rise of 13%
Sebi notified rules allowing companies to delist shares through a fixed price mechanism as an alternative to the RBB process, to facilitate ease of doing business for listed firms
Swiggy submitted an updated DHRP to SEBI the company seeks a valuation of ~Rs 83,365 crore, or nearly $10 billion
SpiceJet settled all outstanding salary dues for its employees following a recent capital infusion of Rs.3,000 cr
Indian ADRs: Wipro (+2.2%), Infosys (+1.8%) and Dr Reddy’s Labs (+0.5%)
Debt:
10 yr G-sec yield fell by 2 bps to 6.72% on Thursday
Centre has announced gross market borrowing of Rs 6.61 lakh cr for H2FY25 in line with Budget estimate
As per Finance Ministry, outlook for inflation trajectory is positive as benign core inflation, good monsoon, and healthy sowing progress of kharif crops are likely to keep inflation under control
Ministerial panel to decide on lowering GST on health and life insurance premiums will have its first meeting on 19th Oct’ 24 as per government official
India’s private debt market is poised to surpass 18 bn in AUM by end of 2024 up from $17.8 bn in 2023 as per Preqin report
Commodities
Brent crude was down by 3.47% to $70.91% /barrel on Thursday on a Financial Times report that Saudi Arabia, the world's top crude exporter, will give up its $100 price target in preparation for raising output, along with OPEC members and allies in December
Gold futures steadied after hitting a record high aided by the expectations for another big rate cut by the U S Federal Reserve, although gains were limited ahead of remarks by key Federal Reserve policymakers Spot gold was up by 0.60% to $2,672.69 oz on Thursday
India is considering raising domestic prices of ethanol and sugar, the food minister said on Thursday, as the country seeks to boost local supplies
India's steelmakers have called on the government to double tariffs on steel imports to curb a surge in cheaper steel shipments from China, according to a letter from an industry association seen by Reuter
Currency:
Rupee depreciated by 4 paise and settled at 83.64 against the US dollar on Thursday, despite inflow of FIIs in Indian equity market
US Dollar Index (DXY) fell by 0.36% to end at 100.57 on Thursday, as US GDP grew at an annual rate of 3 0 in the second quarter of 2024
EUR/USD increased by 0.41% to end at 1.118 on Thursday, as The ECB could deliver a second consecutive interest rate cut in October
USD/JPY increased by 0.15% to 144.96 on Thursday, as traders expect the BoJ to delay further rate hikes
CHF/USD increased by 0.54% to end at 1.182 on Thursday, as the SNB reduces its key borrowing rates by 25 bps for the consecutively third meeting
International Markets
U S markets rallied on Thursday with the Dow Jones, S&P 500 and Nasdaq up by 0.62% and 0.40% and 0.60% respectively All 3 major futures indices are trading down by 2-7 bps at the time of writing the report
As per final estimates US GDP grew at an annualized rate of 3% in Q2CY24 which was unchanged from the second estimates Economists polled by Reuters had forecasted GDP growth at 2.9% for Q2CY24
U S initial unemployment claims unexpectedly declined to 218,000 for the week 21 Sep from 222,000 the prior week Economists polled by Reuters had forecasted claims to increase to 224,000
#OnCNBCTV18 (https://twitter.com/hashtag/OnCNBCTV18) | #Semiconductors (https://twitter.com/hashtag/Semiconductors) will power everything from auto to power to cons electronics to agri, fundamental for a country like India to have semiconductor capability.
Semicon capabilities will help us custom-design products & svcs, innovate, says N Chandra, #TataGroup (https://twitter.com/hashtag/TataGroup)
#OnCNBCTV18 (https://twitter.com/hashtag/OnCNBCTV18) | Personally, I see big prospects for a strong future in #India (https://twitter.com/hashtag/India), glad we have one fit with India, confident there will be more & more opportunities.
Partnership with #TataElec (https://twitter.com/hashtag/TataElec) is #PSMC (https://twitter.com/hashtag/PSMC)’s first step in India, says Frank Huang, Chairman & CEO, PSMC
#OnCNBCTV18 (https://twitter.com/hashtag/OnCNBCTV18) | Indian Govt & Indian cos have shown high interest & effort in building semicon capabilities, PSMC has had overtures from many countries to support tech, but I chose India.
The combined capabilities of #PSMC (https://twitter.com/hashtag/PSMC) & #Tatas (https://twitter.com/hashtag/Tatas) will make for a successful partnership, says Frank Huang, Chairman & CEO, PSMC
#PiramalEnterprises (https://twitter.com/hashtag/PiramalEnterprises) | Arm Piramal Capital & Housing Finance sells immoveable property comprising of land & building situated at Santacruz East, Mumbai Property for ₹187 crore
#NewsFlash (https://twitter.com/hashtag/NewsFlash) | Central Govt increases minimum wage rates for workers by revising variable dearness allowance (VDA). The new wage rates will take effect from October 1, 2024
After revision, minimum wage rates in for unskilled work will be Rs 783 a day (Rs 20,358 per month) for semi-skilled Rs 868 a day( Rs 22,568 per month) for skilled, clerical and watch & wards without arms Rs 954 a day( Rs 24,804 per month) and for highly skilled and watch & ward with arms Rs 1,035 a day( Rs 26,910 per month)
BANK OF INDIA: CO ISSUED, ALLOTTED BASEL III COMPLIANT TIER II BONDS AMOUNTING TO 25B RUPEES
360 ONE WAM: CO SAYS AMALGAMATION OF MAVM ANGELS NETWORK INTO 360 ONE DISTRIBUTION SERVICES
UNION BANK OF INDIA: CO SAYS JOINT FORUM OF AIUBOF AND AIUBEA AGREED TO WITHDRAW STRIKE
JOINT FORUM OF AIUBEF, AIUBSF, UBSA AND UBIEU, DELHI TO GO ON STRIKE ON SEPT 27
CO SAYS IN EVENT OF STRIKE FUNCTIONING OF CO’S BRANCHES IN SOME LOCATIONS MAYBE AFFECTED
MAYUR UNIQUOTERS: CO'S SUBSIDIARY HAS ACQUIRED NEW WHOLLY OWNED SUBSIDIARY CO IN LITHUANIA, EUROPE BY THE NAME OF UAB FUTURA TEXTILES EUROPE || THE MAIN OBJECT OF THE COMPANY FOR WHICH THE COMPANY IS INCORPORATED IS TRADING OF ARTIFICIAL SYNTHETIC LEATHER
RELIANCE INFRASTRUCTURE: BOARD MEETING ON OCT 1 TO CONSIDER AND APPROVE RAISING OF LONG TERM RESOURCES
PUNJAB NATIONAL BANK: CO APPROVED ISSUE PRICE QIP AT 103.75 RUPEES/SHR
PIRAMAL ENTERPRISES: CO UNIT SOLD PROPERTY FOR 1.87B RUPEES TO SHOQUBA REALTY PVT LTD VIDE DEED OF CONVEYANCE
TORRENT PHARMA: CO INCORPORATED UNIT NAMELY TORRENT PHARMACEUTICALS CHILE SPA || ENTITY BEING ACQUIRED BELONGS TO PHARMACEUTICALS SECTOR
CESC: CO'S SUBSIDIARY HAS INCORPORATED A WHOLLY OWNED SUBSIDIARY CO NAMED KUS RENEWABLE || THE ENTITY BEING ACQUIRED BELONGS TO RENEWABLE POWER SECTOR
SWIGGY FILES FOR IPO
SWIGGY IPO: FRESH SHARE ISSUE WORTH UP TO 37.5B RUPEES
OFFER FOR SALE OF UP TO 185.3 MLN SHARES
SWIGGY IPO: FY 2024 REV 112.47 BLN RUPEES|
FY 24 LOSS 23.5 BLN RUPEES
KOTAK MAHINDRA CAPITAL, CITIGROUP, JEFFRIES INDIA AMONG BOOK RUNNING LEAD MANAGERS
VASWANI INDUSTRIES: CO TO INVEST 600M RUPEES TO INCREASE EXISTING BILLET CAPACITY
‌ (https://twitter.com/hashtag/Swiggy)#Swiggy (https://twitter.com/hashtag/Swiggy) files ₹3,750 crore IPO to expand quick commerce, pay off debt
#CNBCTV18Market (https://twitter.com/hashtag/CNBCTV18Market) | Jefferies says in terms of the #RealEstate (https://twitter.com/hashtag/RealEstate) sector, residential market activity has tapered in Q2, adding that market activity is likely to revive in near-term as major new launches are likely in coming weeks
#CNBCTV18Market (https://twitter.com/hashtag/CNBCTV18Market) | Morgan Stanley maintains an equal-weight call on SBI Cards. Says fall in spending reflects continued impact of RBI's notification on corporate card spending
#CNBCTV18Market (https://twitter.com/hashtag/CNBCTV18Market) | Morgan Stanley says Accenture's results & FY25 guidance do not point to any material change in the environment. Also adds, India IT is neutral to slightly positive on commentary on broad-based improvement in growth
#CNBCTV18Market (https://twitter.com/hashtag/CNBCTV18Market) | #GIFTNifty (https://twitter.com/hashtag/GIFTNifty) trading with a premium of 45 points from Nifty Futures' Thursday close, indicates a start in the Green for #IndianMarket (https://twitter.com/hashtag/IndianMarket)
Zen Technologies
The company launched remote-controlled weapon and surveillance systems to strengthen India’s defence capabilities.
Coromandel International acquires additional 8.82% stake in BMCC
The company has acquired an additional 8.82% stake in Baobab Mining and Chemicals Corporation (BMCC), a Senegal-based rock phosphate mining company, bringing its total shareholding to 53.8%. It will invest $3.84 million (Rs 32 crore) in BMCC, in addition to a loan infusion of $6.5 million (Rs 54 crore) to fund expansion projects and meet working capital requirements.
POWER MECH PROJECTS RS 227 CR ORDER Company has received an order worth of ₹ 226.66 Crores (excluding GST) related to Comprehensive Operations and Maintenance (O&M) partner for Gujarat Mineral Development Corporation Limited’s ( GMDC) 250 (2X125) MW Akrimota Thermal Power Station (ATPS), Gujarat.
AJMERA REALTY
Mr. K G Krishnamurthy, has tendered his resignation as Non-Executive Independent Director of the Company along with his Chairmanship and membership in various Committees, with effect from close of business hours on 26th September, 2024
#SEBI reduces listing timeline for debt securities and Non-Convertible Redeemable Preference Shares (NCRPS).
#JustIn | Indian Bank to raise additional long-term infrastructure bonds up to ₹5,000 crore in one or more tranches
- This fund raise will be over & above ₹5,000 crore already raised by the bank in FY25
#India's GDP grew 6.7% in Q1 FY25, with 27% cumulative growth since FY21, according to Monthly Economic Review.
High-frequency indicators signal ongoing economic expansion in the current quarter, according to Monthly Economic Review.
Global economic outlook remains uncertain, with potential policy rate cuts due to fears of recession, according to Monthly Economic Review.
Stock markets around the world are booming, reinforced by recent policy announcements.
Moderating automobile sales and FMCG growth in urban areas may reflect temporary strains, according to Monthly Economic Review.
#RailTelCorp gets Rs 156 crore work order from #Maharashtra government for project in #Konkan, #Pune and #Nashik regions: Exchange filing
Some workers unions of #UnionBank, consisting of customer service associates & office assistants, propose strike on September 27.
#AdityaBirlaCapital invests Rs 500 crore in AB Finance via rights subscription: Exchange Filing.
Money Market Update
The Indian rupee closed weaker against the US dollar on Thursday, amid stabilising crude prices and month-end dollar demand. The rupee depreciated by 4 paise to close at 83.64 against the US dollar, according to Bloomberg data.
Trading Tweaks
Price Band change from 20% to 10%: Optiemus Infracom, Zee Media Corp.
Price Band change from 5% to 20%: Sanofi Consumer Healthcare India.
Ex/Record Bonus Issue: Power Mech Projects (1:1)
Ex/record stock split: Sanghvi Movers (Face Value split from Rs 2 to Rs 1).
Moved into short term ASM: NIIT, Zaggle Prepaid Ocean Services.
Dow + 260
Nasdaq + 108
Dax + 320
Nikkei + 425
Hangseng +569
Gift Nifty + 74(26359)
Dowfut + 15
Nasdaqfut + 2
Crude Oil 70.74
Dollar Index 100.42
MAX HEALTHCARE; Update on acquisition, revival and turnaround of Jaypee Healthcare Limited ( JHL)
Company signed a Share Purchase Agreement with Jaypee Infratech Limited (JIL) and Lakshdeep Group to acquire 63.65% of JHL's equity shares for ₹398 crore.
The deal is subject to SPA terms, including the release of pledged shares by JHL's lenders
UBS on ICICI Bank
Maintain Buy; revise PT to Rs 1,575 (from 1,300)
Steady performance to support premium valuations
Growth likely to moderate in near term, expect margin compression for ICICI to be relatively modest
Relatively better asset quality and high provisions buffer
GS Downgrades Gland Pharma
Growth at the cost of margins; downgrade to Sell (from Buy)
Cut EPS estimates by 17-20% over FY25-27E
Lowered implied multiple of 21.5x (down from 24x )
Find current valuation relatively expensive at ~28xP/E
TP falls to Rs1,500 (from Rs2,075)
OLA ELECTRIC: Ola Electric Mobility Limited’s material subsidiary Ola Electric Technologies Private Limited ( OET) has received Certification for Compliance with the eligibility assessment requirements as per the Production Linked Incentive (PLI) Scheme for the automobile and auto components for its Ola S1 X 2kWh scooter.
UBS on HDFC Bank
Top pick - Buy; revise tgt to 2,100 vs 1,900 earlier
Risk reward is favourable at 2.1x FY26E P/BV for the core bank
Retail deposits and NIM progression to be key catalysts
Deposit growth and NIM trends to be key signposts for potential stock re-rating
CLSA on Metals
See the highest upside for Vedanta (+24%), Tata Steel (+19%) and Hindalco (+16%)
China: Recent measures signal a policy turnaround per our policy team
Prefer aly plays but we see near-term support for ferrous names as well
Zomato
Swiggy files updated DRHP with SEBI for Rs 3,750 crore fresh issue, OFS of 18.53 crore shares
Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will sell shares
OFS component could range between Rs 6500-7000cr (On recent unlisted deals)
Trent-Nifty Rebalancing
$472mn inflows expected (Nuvama)
BEL-Nifty Rebalancing
$378mn inflows expected (Nuvama)
Biocon
Partners with Tabuk Pharmaceuticals to commercialize harmone therapy products in the Middle East region
Jubilant Pharmova
Co announces completion of USFDA audit of Allergy Immunotherapy facility & Contract manufacturing facility Located at Spokane, Washington (USA)
Stocks in the news
- Tech stocks in focus post Accenture numbers
Accenture results saw revenue up 3% in US dollar terms and 5% in local currency terms. copy from companyupdate
also announced a share buyback
guidance slightly lower than expected
- HDFC Bank
UBS : top pick
raise target price to 2100rs vs 1900rs earlier
risk reward is favourable
- ICICI bank
UBS : raise target price to 1575rs vs 1300rs earlier
relatively better asset quality
- Biocon
Partners with Tabuk Pharmaceuticals copy from companyupdate to commercialize GLP-1 products in the Middle East
- prataap snacks in focus :
Authum Investment, Mahi Madhusudan Kela acquire controlling stake in Prataap Snacks, triggering open offer at Rs 864 per share
Public Capex - GOI push to meet the targets - Pick up expected in Jul to Mar 2025
Government expects public expenditure to rise in the remaining quarters of FY25, despite a slowdown in Q1
Low oil prices are seen as a bright spot for the economy.
Big PSU Capex on its way
UBS ON PHARMA SECTOR
SUN PHARMACEUTICAL
BUY , TARGET 1871
CIPLA
BUY , TARGET 1643
DR REDDYS
SELL , TARGET 6691
LUPIN
SELL, TARGET 2221
ZYDUS LIFESCIENCES
SELL , TARGET 1063
AUROBINDO
SELL , 1527
UBS ON PHARMA SECTOR
• Trends weakening in India, US
• Street under-appreciating growth slowdown in both India and the US
• India: unbranded generics are 25%+ of urban and 35%+ of non-urban markets
• US generic market is declining: >50% of US branded market shifted to biologics
• Balance sheets and FCF are healthy and would help in diversification
BROKERAGE RADAR
BOFA ON ACCENTURE
• Earnings call was a clear positive
• Guidance conservatism should be well-received
• Client behavior steady; new
Otion cycle is permanent
BOFA ON BANDHAN BANK
• Maintain Neutral with target price of Rs 220
• Investor meeting takeaways - focused on consistency through cycle
• Bandhan 2.0 - moderate but more consistent growth/RoAs
• Near term - MFI stress, CGFMU, CEO confirmation
• Medium term - 16-18% growth + 2% RoAs + mix shift
CLSA ON PB FINTECH
• PB Fintech indicated at Investor Forum about creating a close-ended loop with hospitals in order to smoothen claims process
• A close ended loop has multiple interpretations such as integrated partnerships, owning stake and establishing hospitals/clinics
• Believe that hospitals can generate healthy returns of 15-25% significantly higher than PB's current investment yield
• See entry barriers for a new entrant
• Mgmt has a track record of expanding into asset light businesses
• Continue to estimate Rs 1000 cr net profit in FY26 itself vs guidance of FY27
• See very strong momentum in health and savings business
ENKAY ON MARICO
• Upgrade to Add from Reduce; Hike target price to Rs 775 from Rs 700
• Improving growth trajectory, a positive
• Focus on execution to help achieve growth with demand recovery
• Valuations to factor improving growth trajectory
Jefferies says in terms of the realEstate sector, residential market activity has tapered in Q2, adding that market activity is likely to revive in near-term as major new launches are likely in coming weeks
Morgan Stanley says Accenture's results & FY25 guidance do not point to any material change in the environment. Also adds, India IT is neutral to slightly positive on commentary on broad-based improvement in growth
BROKERAGE RADAR
MACQUARIE ON CREDIT CARD DATA
• Credit card spends continue to decline
• Multiple reasons contributing to a slowdown in credit card spends
• Expect the growth slowdown to continue given the tightened scrutiny and the impact of new RBI regulations
• With banks indicating some increased stress in their credit card portfolio, we continue to monitor the impact of the same on credit costs N and asset quality
UBS ON ICICI BANK
• Maintain Buy; Hike target price to Rs 1575 from Rs 1300
• Steady performance to support premium valuations
• Steady metrics and healthy return ratios to continue drive stock performance
• Growth likely to moderate in near term
• Relatively better asset quality and high provisions buffer
MACQUARIE ON HDFC BANK
• Maintain Outperform with target price of Rs 1900
• Reported profits to be weak YoY but NII growth good at ~14% YoY
• NIMs to expand 5bps QoQ to 3.52%
• Deposit growth: To see around Rs800bn QoQ increase in deposits
• Loan growth: To remain weak ~8% YoY due to sell-downs and base effect
UBS ON HDFC BANK
• Maintain Buy; Hike target price to Rs 2100 from Rs 1900
• Loan book rebalancing to aid ROA acceleration
• Easy rate environment over next 2 years to support faster repricing of liabilities
• Softer near term loan growth limits NII acceleration
• Retail deposits and NIM progression to be key catalysts
MACQUARIE ON CREDIT CARD DATA
• Credit card spends continue to decline
• Multiple reasons contributing to a slowdown in credit card spends
• Expect the growth slowdown to continue given the tightened scrutiny and the impact of new RBI regulations
• With banks indicating some increased stress in their credit card portfolio, we continue to monitor the impact of the same on credit costs and asset quality
MACQURIE ON UNITED SPIRITS
• Maintain Underperform with target price of Rs 1100
• Flattish demand trends in Q2; Muted volume growth likely in Q2
• Expect 5% sales growth and 6% Ebitda growth in Q2
• Prestige volumes would be flattish YoY, continued strength in luxury end should aid realisations
JEFFERIES ON REAL ESTATE
• Residential Market Activity Has Tapered In 2Q
• There Should Be Flattish Pre-Sales For Our Coverage, Following Q1's 70% Sales Growth
• Market Activity To Revive In Near-term As Major New Launches Are Likely In Coming Weeks
• Low Inventories And Broad-based Price Appreciation Suggest Fundamentals Remain Strong
• The Potential For Rate Cuts Could Help Broaden Market Activity
• Overall Residential Markets Remain Healthy & 15-35% Growth Guidance Should Be Met
MAX HEALTHCARE: CO ACQUIRES 63.65% STAKE IN JAYPEE HEALTHCARE FOR RUPEES 398 CR IN STRATEGIC DEAL WITH LAKSHDEEP GROUP
Everything in this world will be driven by technology, says TataSons Chairman N. Chandrasekaran.
PAVNA INDUSTRIES: COMPANY APPROVED RAISING OF FUNDS UP TO RS. 322.03CR BY WAY OF PREFERENTIAL ISSUE
PBOC cuts 14-day reverse repo rate to 1.65% from 1.85%: Bloomberg
Aviation, Paints, OMCS
U.S. crude oil prices fell nearly 3% on Thursday on a report that Saudi Arabia is committed to pressing ahead with production increases later this year
UBS on Pharma
Initiate Sell Call On Zydus, Target Rs 850 & Dr Reddy's, Target Rs 5,700
Sell Call As Street Is Over Estimating Core Margin
Initiate Sell Call On Aurobindo, Target Rs 1,333 As Valuations Are High Despite Low Growth
Initiate Sell Call On Lupin, Target Rs 2,250 As It Is Already Pricing One-off Benefits In FY25 & FY26
Street Under-appreciating Growth Slowdown In Both India & US
India & US Account For 70-80% Of Sector Profits And Would Imply Lower Growth
Balancesheets Are Healthy To Invest For New Growth Drivers
Growth Normalisation May Take Time
Prefer Sun Pharma, (Buy Call, Target Rs 2,450)
Expect Sun Pharma’s Patented Molecules To Double In Revenues Over Four Years
Sun Pharma’s Margin Expected To Expand By 650 bps For Overall EPS CAGR Of 19%
Like Cipla (Buy Call, Target Rs 2,060)
Cipla’s US Upside From Injectable & Respiratory Portfolio Is Not Yet Fully Factored In
Source cnbc
Silver rose to its highest level in nearly 12 years
Gold at record high at $2672.10
PRATAAP SNACKS: AUTHUM INVESTMENT & MADHUSUDAN KELA TO BUY 46.9% STAKE FROM PEAK PARTNERS & SEQUOIA CAPITAL FOR RUPEES 846.6 CR
Stocks in News post Market closure
SYSTEMATIX CORPORATE SERVICES: at the Annual General Meeting (AGM) of the Company held today, September 26, 2024, the Members have approved the Sub-division/Split of 1 Equity Share of the Company having a face value of Rs. 10/- each fully paid up into 10 Equity Shares having a face value of Rs. 1/- each fully paid up.
Mayur Uniquoters: Mayur Uniquoters Corp.(“MUC”), USA Wholly Owned Subsidiary (“WOS”) of the Company has acquired new Wholly Owned Subsidiary Company in Lithuania, Europe by the name of UAB Futura Textiles Europe.
NEW LIGHT Apparels : the Company has fixed Thursday, 10th October, 2024 as the Record Date, for the purpose of ascertaining the eligibility of the shareholders entitled for the following matter, in accordance with the approval of shareholders obtained on Monday, 23rd September, 2024 at the 29" Annual General Meeting of the company
Torrent Pharma : the Company has incorporated Wholly owned subsidiary (“WOS”) namely Torrent Pharmaceuticals Chile SpA on 25th September, 2024 in Chile. Also the company refutes claims of Shelcal 500 allegedly failing CDSCO quality test
Ganesha Ecosphere : the Company has been allotted 4,55,000 equity shares of face value of Rs. 10/- each by RACE ECO CHAIN LIMITED on September 26, 2024 on preferential basis
Artefact Projects : The company bags projects assignment with consultancy services for Authority Engineer for construction of shohratgarh Bypass to two lane with paved shoulder on NH-730 under EPC mode in the state of UP
Vaswani Industries Limited: The company has signed and executed an EPC Contract dated 26.09.2024 for the development of 36.25 MWp Solar Power plant with SR Corporate Consultant Private Limited.
RITES Ltd : RITES Consortium emerges as the lowest bidder (L-1) in the tender floated by Delhi Metro Rail Corporation Limited for “Retrofit Work in RS-1 Trains of DMRC”. The order is subject to award after the due process of Delhi Metro Rail Corporation Limited scrutiny/ evaluation as per the requisite requirements mentioned in the tender documents. The estimated value of the bid is Rs. 87.58 Crore (approx.) including GST, wherein RITES share is 49% i.e. Rs. 42.91 Crore (approx.) including GST
Bright Brothers Ltd: the wholly»owned subsidiary of Bright Brothers Limited i.e. Bright Brothers LLC (“Buyer") has entered into an agreement dated 26th September, 2024 with Sintex Holdings B.V. ("Seller") for purchase of membership interest in Sintex Logistics LLC ("Target Entity”). As per the agreement, the Buyer has agreed to acquire 100% membership interest in the Target Entity.
ADF Foods Ltd: the Company holds 70% stake in its US based step-down subsidiary Vibrant Foods New Jersey LLC (‘Vibrant Foods’). The Board of Directors of the Company at its meeting held today i.e. Thursday, 26th September, 2024 has approved acquisition of remaining 30% stake from the minority members of Vibrant Foods.
International Conveyors Limited :the Company has acquired the Equity shares of “IIFL Finance Ltd.
Indian Terrain Fashions Limited :the Company has received the In-principal approval vide letter dated 26th September 2024 from BSE Limited and vide letter dated 26th September 2024 from National Stock Exchange of India Limited for issuance of 14,27,145 Equity Shares of Rs. 2/- each at a price not less than Rs. 70.07/- per equity Share through Preferential Allotment to be issued to Promoter & Executive Chairman and Managing Director & CEO of the Company.
Uno Minda Limited: The company has acquired 24769500 equity shares i.e., 49% stake of Minda Nabtesco Automotive Private Limited ("MNAPL") from M/s. Nabtesco Automotive Corporation, Japan, for a total consideration of INR 1,30,00,000
Infosys: The company announces Strategic Collaboration with Sally Beauty to Bring Enterprise-scale IT Efficiencies from Hyper-automation
Shivalik Bimetal Controls Ltd. : The company Announces Leadership Transition and Strategic Shareholding Changes
AASAAN Loans : Akme Fintrade Partners with MAS Financial Services for CoLending in MSME Sector.”
PC Jewellers : The Company had opted for OTS to settle the outstanding dues. The terms and conditions of OTS include cash and equity components payable under settlement, release of securities and mortgaged properties etc. With this approval, all the fourteen consortium member banks have approved the OTS proposal submitted earlier by the Company.
Tejas Netwrok : Union Minister Shri Jyotiraditya Scindia inaugurates Wireless Center of Excellence at Tejas Networks and launches its indigenous Massive MIMO Radio
Lemon Tree Hotels : the Company has signed a License Agreement viz Lemon Tree Hotel, Sasan Gir, Gujarat. The property shall be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited and is expected to open in FY 2026.
RailTel Corporation of India Ltd. : the Company has received the work order from Rural Development Department, Mantralaya, Maharashtra for operationalization of ASSK-GP project in Konkan, Pune, Nashik Regions amounting to Rs. 1,55,71,67,040
Anuh Pharma : The Company has received approval from EDQM for CEP of Allopurinol API which is used to treat Gout and High Uric Acid Levels.
Delta Manufacturing Limited : Company has approved the incorporation of “DML Ferrites Private Limited”, a company proposed to be incorporated as a wholly owned subsidiary.
Sun Pharma: The company Presents New Clinical Efficacy and Safety Data in Severe Dermatological Conditions at the 2024 European Academy of Dermatology and Venereology (EADV) Congress
Indian Bank: the Board of Directors of the Bank in its meeting held on date i.e. 26 th September 2024, inter alia, approved for raising additional Long Term Infrastructure Bonds aggregating upto Rs.5000 Crore over and above Rs.5000 crore already raised by the Bank in current FY 2024-25, in one or more tranches
OLA Electric : ‘Ola Electric launches ‘Network Partner Program’, onboards over 600 partners to accelerate EV adoption and #EndICEAge PAN India
Firstsource: The company positioned as a ‘Leader’ in Lending Services Operations PEAK Matrix ® Assessment 2024 by Everest Group
Financial Services Limited : the Board of Directors of Interactive Financial Services Limited (“the Company”) has been held on Thursday, September 26, 2024, at 04:00 P.M. and Board has approved the Draft Letter of Offer in regards to the Rights Issue of Equity Shares
Aditya Birla Capital Limited : the Company has made investments on rights basis, in the equity shares of Aditya Birla Finance Limited (“ABFL”) of Rs. 499,99,99,926
MARSONS Ltd : company has received a Letter of In tent from NACOF OORJA to develop a lSO MW(AC) Grid-Interactive Ground-Mounted Solar PV Power Generation Plant.
Netweb Technologies India Limited: The company wins outstanding growth - Data Centre & AI Group Award from Intel Corporation.
Jubilant Pharmova : The company announces completion of USFDA audit of Allergy Immunotherapy facility & Contract manufacturing facility Located at Spokane, Washington (USA)
Biocon Limited : The company partners with Tabuk Pharmaceuticals to commercialize its Glucagon-like peptide-1 (GLP -1) products in the Middle East region
Ahasolar Technologies Limited : The company has received a Work Order for Technical Assistance for IT support for the development of National Portal under PM Surya Ghar: Muft Bijli Scheme including grievance management support. The work order is received from REC Limited, a Maharatna Company, and is the National Programme Implementation Agency (NPIA) of the PM Surya Ghar: Muft Bijli Yojana. The whole Consultancy Service is priced at around ₹ 65 lacs
ELGI Equipments : the Company’s wholly owned subsidiary Elgi Compressors USA Inc (Elgi USA), in its Board Meeting held on September 25, 2024, at 7.30 AM EST decided to divest its entire stake held in its Joint Venture - Compressed Air Solutions of Texas LLC (CAST), USA, to the existing joint venture partner
Krsnaa Diagnostics : Ranchi Institute of Neuro-Psychiatry & Allied Services (“RINPAS”) (“the Authority”) has awarded a letter of Intent (“LOI”) to Krsnaa Diagnostics Limited (“the Company”) for Supply, Install, Commission, Operate and Maintain the Radiology Center (CT & MRI) and Pathology Laboratory Services on Public Private Partnership basis at Ranchi Institute of NeuroPsychiatry & Allied Sciences, Government of Jharkhand, India.
Trent and Bharat Electronics: The stocks will be in focus as they prepare to enter the benchmark Nifty 50 Index following their inclusion which was announced in August.
Divi's Laboratories and LTIMindtree: The two stocks are set to be removed from Nifty 50 Index following the revision by NSE.
Punjab National Bank: The company closed its QIP with an issue price at Rs 103.75 per share, a discount of 5% to the floor price.
KEC International: The company raised Rs 870 crore via QIP and issued 91.1 lakh shares at Rs 955 per share.
InterGlobe Aviation: The company appointed Isidro Pablo Porqueras Orea as chief operating officer effective Nov. 1
Escorts Kubota: Unit Escorts Kubota Finance received RBI certification to begin NBFC business
Piramal Enterprises: The company sold a Mumbai property to Shoquba Realty for Rs 187 crore.
Adani Green Energy: The company completed 1,150 MWac join venture with France's TotalEnergies. As part of the JV, TotalEnergies invested $444 million in AGEL subsidiary, for acquiring 50% stake in AGEL’s solar projects located at the world’s largest renewable energy plant in Khavda, Gujarat
INTERESTING READINGS FOR TODAY
1. Ola Electric plans to expand sales, service infra to 10k outlets by 2025-end
https://economictimes.indiatimes.com/industry/renewables/ola-electric-plans-to-expand-sales-service-infra-to-10k-outlets-by-2025-end/articleshow/113696888.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
2. CDSL announces uniform tariff of Rs 3.50 per transaction effective October 1st
https://economictimes.indiatimes.com/industry/banking/finance/cdsl-announce-uniform-tariff-of-rs-3-50-per-transaction-effective-october-1st/articleshow/113694068.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
3. Banks see over 15% growth in new credit card addition: RBI data
https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-see-over-15-growth-in-new-credit-card-addition-rbi-data/articleshow/113693195.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
4. Headroom to cut petrol, diesel prices by Rs 2-3 per litre: Icra
https://economictimes.indiatimes.com/industry/energy/oil-gas/headroom-to-cut-petrol-diesel-prices-by-rs-2-3-per-litre-icra/articleshow/113694164.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
5. Indian steelmakers seek higher tariffs as Chinese imports surge
https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/indian-steelmakers-seek-higher-tariffs-as-chinese-imports-surge/articleshow/113694477.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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