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September 03, 2024

News Headlines from Business News Agencies:
Business Standard
Govt approves Kaynes' Rs 3,307 cr semiconductor unit at Gujarat's Sanand
Coal production increases by 6.48% to 384.08 mn tonnes in April-August
TikTok parent ByteDance eyes $9.5 bn in record Asia dollar corporate loan
Rs 80,000 crore 'Digital Bharat Nidhi' fund to boost urban telecom services
Concor to resume coastal cargo transport, enhance last-mile connectivity
Tata Motors launches new Curvv SUV Coupe; priced at Rs 9.99 lakh
Govt receives about Rs 2,413 cr as dividend tranche from BPCL: Dipam secy
Gala Precision Engineering IPO fully subscribed within minutes of opening
Street positive on cement stocks despite pricing pressures, demand woes
VFX company Identical Brains files draft IPO papers with NSE Emerge
Long term projects should be funded through debt market: Sanjiv Bajaj
Economic Times
Omaxe group to invest Rs 2,500 crore in developing a sport centric project in Delhi’s Dwarka
Personal loan sees 14% growth; cards, gold major factors behind surge
India's coal production rises 6 percent in April-August
Vedanta board approves third interim dividend of Rs 20/share. Company payout at Rs 7,821 crore
Manmad-Indore railway line, key to Pithampura Industrial Area, approved by Cabinet for Rs 18,000 cr
Cabinet announces Rs 14,000 cr for seven farmers' welfare schemes
Saudi Arabia may cut crude oil prices for Asia in October
Landmark Group to invest Rs 4,200 crore in two years in real estate projects
Mahindra Auto sales up 9 pc in August at 76,755 units
Power consumption cools 5% in August amid falling mercury
Bharath Sesha is Philips MD for Indian subcontinent
Mint
India to clock 7% GDP growth in FY25, says HSBC Global Research
Signature Global to invest ₹1,500 cr in buying land this year
Zee appoints Shiva Chinnasamy as chief technology and product officer
Cabinet approves ₹3,300 crore Kaynes ATMP chipmaking plant in Gujarat
Mobile retailers say Samsung's online-focused strategy fuels grey market: Report
Nvidia takes an added role amid AI craze: Data-center designer
Smart industrial cities can propel India towards its export targets
Union Minister Nitin Gadkari urges states to reduce GST on flex-engine vehicles
TVS Motor Company's sales grow by 13 per cent in August 2024
No inflation targeting framework is sacrosanct: India’s chief economic adviser
China property slump spurs local governments’ quest for cash
India Daybook – Stocks in News
HAL: Cabinet Committee on Security approves procurement of 240 aero-engines for IAF’s Su-30 MKI aircraft from HAL worth ₹26,000 crore (Positive)
Matrimony .com: Company to consider proposal for buy back on September 5 (Positive)
G R Infraprojects: Company to divest 100% equity stake/investment held in unit GE Aligarh Kanpur Highway, co approved acquisition of 100% stake in unit tumkur-ii rez power transmission (Positive)
Adani Green: Board approved the joint venture agreement subsidiary and Total Energies pursuant to which, Total Energies will make further investment of approx. USD 444 Mn to form a new 50:50 JV to house a 1,150 MWac portfolio. (Positive)
Welspun Corp: Company’s board approves investment of $100 million by arm Welspun Pipes. (Positive)
Vedanta: Company declares dividend of Rs 20 per share. (Positive)
Lemon Tree: Company signs license pact for 80-room hotel in Gir, Gujarat. (Positive)
CIE Automotive: Company to subscribe up to 27% of equity of IJYA renewables India and invest an amount up to Rs 25.5 million towards subscription of its equity shares (Positive)
GPT Infra: Company declared lowest bidder for a project worth Rs 204 cr from South East Railways Kolkata. (Positive)
Maruti: August production at 168,953 vs 165,402 (YoY) (Positive)
Kanoria Chemicals: Company completed expansion of formaldehyde production capacity at ankleshwar, production of additional capacity of 345 MT per day to start SEPT 6. (Positive)
Triveni Engineering: Company eyes margin expansion after govt revises ethanol production norms (Positive)
Muthoot Finance: Company's Microfinance arm Belstar Microfinance gets SEBI’s approval to launch its IPO (Positive)
Gensol Engineering: Consortium emerges lowest bidder for green hydrogen project worth ₹164 crore (Positive)
IEX: Subsidiary has entered into an "issuer agreement" with the International Tracking Standard Foundation and Evident EV Ltd (Positive)
Bajaj Finance/Finserve: Bajaj Housing FInance sets IPO price band at Rs 66-70/share. (Positive)
Medi Assist: Bessemer India likely to sell stock worth up to $64 m of Medi Assist at ₹570/sh (7.7% discount to CMP). (Neutral)
Hindustan Composites: Company to buy 1.5 lakh Swiggy shares for Rs 5 crore. (Neutral)
Zee Entertainment: Shiva chinnasamy appointed as chief technology & product officer. (Neutral)
Piramal enterprises: Company approved issue of non-convertible debentures up to Rs 1 billion. (Neutral)
MIRC Electronics: Company approved raising of funds via issuance of shares worth Rs 500 million, Company says raising of funds through right issue basis. (Neutral)
Concord Control: Company approved preferential issue of shares worth up to Rs 500 million (Neutral)
Adani Power: Supreme Court seeks response from Himachal Pradesh on Adani Power’s ₹280 crore refund claim. (Neutral)
RITES: Company received an order from the SGST with a tax demand totalling ₹38.3 crore. (Neutral)
IREDA: Company aims to complete fundraise process within two-three months. (Neutral)
Vodafone Idea: Company receives Rs 73 crore demand orders from GST offices for tax dues, penalties, and interest. (Neutral)
Brigade Enterprises: Company approves floor price of QIP at Rs 1,164.7/share. (Neutral)
Brainbees: Approves further invests Rs 105 crore in Frootle India & Rs 1.05 crore in Wellspire India. (Neutral)
HDFC Bank: Copthall Mauritius Investment offloaded 10.2 lakh shares at Rs 1,636.9 each. (Neutral)
Sterlite Tech: Company settles Singapore dispute with Data Management Centre for $467,400. (Neutral)
NMDC: Production Down 10% At 3.07 mt Vs 3.41 mt (YoY) (Negative)
MOIL: Company cuts prices of Ferro-Grade Manganese Ores with Manganese content of Mn-44% and above by 20%. (Negative)
Citi on Vedanta
Buy Call, Target Rs 430
Co Announced 3rd Interim Dividend Of Rs 20/Sh
Total Outflow On Account Of Dividend Would Be Rs 7,800 Cr (Promoters Own 56.4%)
Co’s Net Debt Excluding HZL Was Rs 61,000 Cr As Of Jun’24
Post Jun’24, Vedanta Has Raised Nearly Rs 8,500 Cr On July 20, Issue Of 193.2 m Shrs Via QIP
Citi on Tech Mahindra
Sell Call, Target Rs 1,260
Growth Is Still Difficult In The Current Environment
BFSI Is Improving But It Is Slow & Gradual
There Are 10-15 Actions In Play To Drive Margin
Focus Is On Costs To Drive Margins Initially Followed By Pyramid Optimisation
Some Part Of The Margin Improvement Will Be Invested Back
Wage Hikes To Be Reviewed In October
BOFA Sec on Infosys
Buy, TP Rs 1975
Management meet takeaways
1) Early days of recovery but uncertainty on 2 of 3 aspects is reducing
2) Approach to AI is same as for cloud which had seen good market share success
3) Project Maximus is already at work on margins
JPM on Gujarat Gas
UW, TP Rs 475
STK was up c.12% after restructuring announcement
Reorganization, however, significantly increases Co’s exposure to commodity prices, which might currently be viewed favorably as gas prices are expected to remain soft
This also however brings valuations (c.28x 1yr Fwd P/E and 17.5x Fwd EBITDA prior to the announcement) into sharp contrast, which appear too high for commodity exposure
BOFA Sec on Pharma
IQVIA indicates +ve US gx trends with stable price erosion
Reiterate Buy- DRL, Aurobindo, BIOS, GLAND
GLAND partners gain share across drugs
Cipla in Lanreotide & Albuterol; Eyes on comp impact in Albuterol/ Asacol HD
SUNP specialty trends mixed
Kotak Inst Eqt on Aadhar Housing
Initiate Buy, TP Rs 550
Large affordable HFC with long track-record, well-diversified geographical presence & customer profile
Its multipronged expansion & appraisal strategy will drive 21% AUM CAGR(FY2024-27E)with low credit costs
B&K on GMR Power
Initiate Buy, TP Rs 184
Triggers
Energy assets consolidated
Thermal assets have shown improved Plant Load Successfully restructured b/sh
Conversion of $ 275 mn subordinated FCCBs into equity
Presence in smart metering
CITI On 360 One
Buy, TP Rs 1250
Open 90D +ve catalyst watch based on
1) likely elevated transactional rev in 2Q
2) strong momentum in wealth management fresh inflows
3) revival in AMC flows
4) any +ve commentary supporting pickup in new HNI segment
Disc to peers unwarranted
CLSA On Consumer Sector
Overweight Call On Zomato, Target Rs 353
Underperform Call On Marico, Target Rs 470
Underperform Call On HUL, Target Rs 2,161
Quick Commerce Is Reshaping India's Retail Supply Chain By Flattening Distribution
Quick Commerce Giving New Brands Increased Visibility & Price Competitiveness
Zomato Will Be Largest Listed Beneficiary
Staples Marketers Marico & HUL Face Risks As Their Distribution Advantage Erodes
Unlisted Co Zepto Is An Upand-Comer With Much To Offer Its Customers
For Blinkit, See EBITDA & Net Profit Turning Positive By FY25
Blinkit Will Contribute Up To 37% Of Our FY26 EPS For Zomato
Antique On HAL
Buy Call, Target Rs 6,145
Cabinet Clears Procurement Of Rs 26,000 Cr Order For 240 Aero Engines Of SU-30 MKI Aircraft
Order Will Further Bolster Cos Already Strong Order Backlog Of Rs 94,000 Cr (FY24 End) To Rs 1.2 Lk Cr
Strong Order Backlog Will Lead To Strong Revenue Visibility Of 3.8x Its TTM Revenue
Near-term Financials May Seem A Bit Volatile
Co Has Been Facing Challenges To Execute The Large Tejas MK I A Orders
Believe That Stock Is Attractively Valued With Multi-yr Double-digit Earnings Growth Potential
Stock Looks Attractively Valued With Robust Return Ratio Profile Of +20%
Jefferies on Alkem Labs
Underperform Call, Target Rs 5,080
Mgmt Said That Boosting Operational Margin Will Be The Top Priority In Near-term
Investments In New Areas Will Take 2-3 Years To Bear Results
Co Aims To Be More Active In M&A And In-Licensing Going Forward
New Mgmt Plans To Pursue Profitable Growth Which Will Be Realised Via India, EM & CDMO Biz
JPM on Alkem Labs
Neutral, TP Rs 5870
Management meet key takeaways:
a) increased focus on driving profitable growth with re-allocation of resources towards relevant segments
b) margin improvement likely to be visible from FY27
c) domestic/EM business continue to be priority markets
d) Pen G forms 10% of COGS - has seen some firming up of prices
HSBC on Rallis India
Reduce Call, Target Rs 251
Tuning Biz Model To Play On Strengths, A Well Executed Plan Can Bolster Competitive Position
Planning To Double Domestic CP Market Share
Co Plans To Seed Revenue Over Next 4-5 Years; Turning Selective On Exports
Maintain Reduce Given Industry Headwinds
MS on Kaynes Tech
Overweight Call, Target Rs 3,845
Government Approval For Kaynes Semicon Semiconductor Plant In Gujarat Is Positive
The Pending Government Approval Remained An Area Of Investor Concern
Co Had Earlier Indicated That Its OSAT Venture Could Garner Incremental Potential Revenue
Kotak Inst Eqt on Kaynes
ADD, TP Rs 4950
Receiving approval to set up an OSAT facility paves way for co to enter into semiconductor value chain.
Near term Focus would be to ramp up execution; however, over medium term, focus would be on shifting rev toward advance packaging sol
Jefferies on Telecom
In Q1FY25, Sector Revenue Growth Moderated To 7% YoY
Bharti/Jio Revenues In Q1 Up 9-10.5% YoY Respectively
Bharti/Jio Gained 35 bps/70 bps Market Share In Q1FY25
Voda Idea’s Market Share Declined To An All-time Low, With Market Share Loss In 16/22 Circles
Mkt Sh Gains Toward Bharti/Jio Likely To Continue Till Voda Idea Completes Network Invst
Expect Sector Revenues To Grow At A 15% CAGR To $38 Bn Over FY24-26
Nifty closed @25,278.70 (+42.80%) and Sensex @82,559.84 (+194.07%) on Monday GIFT Nifty was trading at 25,363 (as of 7:30 am)
FIIs net bought equities in cash to the tune of Rs 1735 cr whereas DIIs net bought Rs 356 cr on 2nd September 2024
Buch accused of corruption, bias by Zee Promoter
Hack hit WazirX’s customers to lose 43% of their funds
Adani Green approves pacts for TotalEnergies $444 mn investment in JV
Vedanta approves third interim dividend worth Rs 7,821 crore for FY25
Godrej Properties to develop two group housing plots with Rs.3,400 crore revenue potential
Green power finds 30 GW hard to sell projects yet to tie up deals as industry awaits uniform tariffs
Government approved procurement of 240 aero engines (AL 31 FP) for the Indian Air Force's Su 30 MKI aircraft from HAL at a cost of over Rs 26,000 cr
Government approved a proposal of Kaynes Technology to set up a semiconductor unit in Gujarat with 6.3 million chips per day capacity, entailing an investment of Rs 3,307 cr
NMDC reports 9.9% drop in iron ore production for August
India's coal production rises 6% in Apr Aug
Dr Reddy's shares fall after Chinese authority suspends import, sale and use of ADHD treatment drug
Discount brokers may raise rates by 10-30% as per industry sources
Yatra acquires Globe Travels for Rs.128 crore in cash
JSW Cement’s Rs 4,000 cr IPO put on hold
Welspun Corp to invest $100 million in US arm to upgrade pipe portfolio
L&T carves out renewables business as a vertical to enhance visibility
Xander Group Founding Partner Acquires Shares Worth Rs 718 Crore in Trent
Indian ADRs: US markets were closed on 2nd Sept on account of Labour Day
Debt:
10 yr G sec yield rose by 2 bps to 6 88 on Monday
RBI accepted Rs 38,965 cr against notified amount of Rs 1.5 lakh cr in 4 day variable rate reverse repo (VRRR) auction
Nomura expects RBI to cut repo rate by 100 bps from Oct’ 24 to mid 2025 amid weakening growth
India’s Manufacturing PMI eased to a 3 month low of 57.5 in Aug’ 24 from 58.1 in Jul’ 24
Government has approved 7 projects with a total outlay of Rs 14,000 cr to boost farm related activities and enhance food security across the nation
Commodities
Brent crude was up by 1.27% to $77.29 /barrel recovering some losses from late last week, as Libyan oil exports remained halted and concerns about higher OPEC+ production from October eased
Gold futures settled lower as the U S dollar strengthened and as traders looked forward to crucial US jobs data to bolster their bets on the size of the Federal Reserve's interest rate cut expected to take place later in September Spot gold was down by 0.23% to $2,497.26/ oz on Monday
The turnover of commodity derivatives on Indian exchanges surged nearly 23% in July from the previous month, reaching Rs 45.8 lakh cr according to the monthly bulletin of SEBI
India’s iron ore production rose 8.9% to 98 mn MT in the April July of current fiscal as against 90 mn MT in the same period of previous fiscal, the government said
Currency:
Rupee depreciated by 6 paise and settled at 83.93 against the US dollar on Monday, despite FII inflows into equities and softening crude oil prices overseas
US Dollar Index ( fell by 0.09% to end at 101.67 on Monday, as traders await key labor market data for clues of potential Federal Reserve interest rate cuts
CHF/USD fell by 0.09% to end at 1.174 on Monday, as Middle East geopolitical tensions might lift the Swiss Franc against the US Dollar
USD/JPY increased by 0.20% to end at 146.74 on Monday, as Japanese Yen extends losses despite a hawkish sentiment surrounding BoJ
International Markets
U S markets were closed on Monday on account of Labor day
According to Caixin /S&P Global, China's manufacturing PMI increased to 50.4 in August 2024 up from 49.8 in July This was higher than the 50.0 forecast from a Reuters poll However, according to the National Bureau of Statistics ( China's official manufacturing PMI fell to 49.1 in August, down from 49.4 in July The NBS Non Manufacturing PMI rose to 50.3 in August versus July’s 50.2 figure and the estimates of 50.0
Eurozone Manufacturing PMI continued to remain in the contraction zone at 45.8 in Aug 24 vs 45.6 in Jul 24 and as compared to consensus estimates of 45.6
German Manufacturing PMI increased marginally to 42.4 in Aug 24 vs 42.1 in Jul 24 and as compared to consensus estimates of 42.1
German carmaker Volkswagen on Monday warned it will no longer be able to rule out plant closures in the country, citing the specter of major cost cutting measures in order to “future proof” the company

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