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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July 25, 2024

• *News Headlines from Business News Agencies:*
• *Business Standard*
• Credit rating agencies upbeat on India's fiscal consolidation plan
• BSNL losses narrow to Rs 5,371 crore in FY24, Ebitda at Rs 2,164 crore
• Hyundai ties up with Charge Zone for charging infrastructure for EV
• Bajaj Finserv Q1 results: Net profit increases 10% to Rs 2,138 crore
• Fighter jets to submarines: Budget 2024 aims at major defence acquisitions
• RBI revamps regulatory framework for domestic money transfer services
• Urban Company Q1 results: Loss narrows by 70%, revenue at Rs 827 cr
• India likely to amend rules to check hot flows on bond index entry
• White category industries may skip pollution permits: Environment Ministry
• Arunachal Pradesh Dy CM presents Rs 993 crore deficit budget for FY25
• Mobile makers cumulatively invest Rs 8,282 cr under PLI scheme till June
• DPIIT to create timelines for govt agencies for clearance of FDI proposals
• *Economic Times*
• Duty concessions in Budget 2024 to boost domestic consumer electronic manufacturing
• Federal Bank reports 18% jump in net profit on core income growth
• OrbiMed-backed Suraksha Diagnostic files IPO papers
• Abolition of angel tax will boost startup ecosystem: CBDT chairman
• Porsche India retail sales grow 40% in January-June period
• Kolkata-based Suraksha Diagnostic files IPO draft papers with Sebi
• Groww Mutual Fund launches ETF and FoF based on Nifty EV & New Age Automotive Fund
• Nissan-Renault firms up plans to launch half a dozen SUVs in India
• Sequoia Capital-backed Vanta raises funding at $2.45 billion valuation
• BIS sanctions 82 R&D projects to IITs, other tech institutes
• India raises US oil imports in June, cuts Russia, data shows
• Infra allocation, support to startups to boost innovation in steel sector, create jobs: ISA
• *Mint*
• KEC International wins order worth Rs 1422 crore from USA
• Multiples PE-backed insurer Acko acquires OneCare
• Axis Bank Q1 Results: Net profit rises 4% to ₹6,035 crore
• India's business activity at 3-month high in July, shows HSBC PMI
• CG Power to acquire 55% stake of GG Tronics for ₹319.4 crore
• SEBI reveals 7 out of 10 intraday trade in cash segment made losses in FY23
• V-Guard Q1 results: Net Profit up 54% at ₹99 crore, margin at 10.5%
• HUDCO signed MoU with Rajasthan Government for infra projects
• Apple under investigation in Spain over treatment of App Store developers
• Alembic Pharma gets US FDA and ANDA nod for Luphenazine Hydrochloride Tablets
• *Axis Bank Q1FY25 Concall Update*
• (Nirmal Bang Securities)
• *# Sluggish business growth; C/D ratio further increases*
• *# Marginal deterioration in asset quality*
• *Outlook: Neutral*
• • Credit Cost came at 0.8% vs YoY 0.5%, QoQ 0.5%.
• • Credit cost is higher due to certain timing difference. 55% of the increase in credit cost is due to lower recoveries and upgrades in the corporate book which should happen in Q2.
• • Bank expects the credit cost to trend lower hereon.
• • Covid provision remains at Rs. 5,012 Cr (0.6%) and will be used during ECL transition phase in future.
• • Slippages came at 2.0% vs QoQ 1.4%. GNPA came at 1.5% vs QoQ 1.4%. NNPA came at 0.34% vs QoQ 0.31%. PCR remains at 78%.
• • BB & Below book stood at Rs. 5692 Cr vs QoQ Rs. 5131 Cr at 0.58% vs QoQ 0.53%.
• • Advances came at Rs. 9.8 Lac Cr (+1.6% QoQ & +14% YoY).
• • SME advances grew by a healthy 21% and shall continue this trajectory.
• • Deposits came at Rs. 10.6 Cr (13% YoY, -0.6% QoQ)
• • C/D ratio thus further increased to 92.2% vs QoQ 90.3% (YoY 91.2%)
• • Bank expects industry advances growth to converge with deposits growth at 13%. Bank intends to grow at 300-400 bps above the industry.
• • NIM was stable at 4.05% vs QoQ 4.06% & YoY 4.10%. (Bank maintains that cross cycle margins will be maintained at 3.8% in the longer term)
• • Bank is confident of maintaining or improving the NIM.
• • NII grew by 13% YoY & 3% QoQ
• • PBP grew by 15% YoY & -4% QoQ.
• • ROA/ROE declined to 1.65%/15.4% vs QoQ 2.0%/20.4%
• Stock is trading at P/E of 12.2x FY26E EPS & 2.4x trailing P/Adj. BV (adjusted for subsidiary value of Rs. 80/share)
• *SRF Ltd Q1FY25 Concall Update*
• (Nirmal Bang Retail Research)
• Outlook: Near-term neutral, while structurally positive over the long-term
• *Management Guidance*
• • The management maintained its FY25 guidance for chemical segment where it expects around 20% revenue growth with operating margins in the range of 24% - 28%.
• • Overall capex guidance sustained at Rs. 18-19 bn which will be mainly towards fluoropolymers and select molecules from specialty chemicals.
• *Other Key Highlights*
• • Overall chemicals segment de-grew by 11% yoy. There was a pricing pressure observed in specialty chemicals due to global destocking continued and competition from Chinese players.
• • New AI molecules have been sent to customers and expects customers feedback over the next 3-4 months. This is positive in terms of new launches.
• • While global slowdown and destocking has impacted overall topline growth, the management is positive on domestic market. In Ref gas segment, US market volume has been lowered against previous year. In contrast, domestic market has observed strong growth with 60-70% volume growth.
• • Packaging film segment has delivered improved performance mainly led by BOPP.
• • New project commissioning has provided revenue growth to an extent and expects ramp up in the current year based on global demand dynamics.
• The stock is currently trading at 31x FY26E EPS
• Jefferies on Coforge
• U-P, TP Rs 5180
• 1Q rev/margins were in line but normalized profits missed est
• Deal ramp-ups supported growth in 1Q & will continue to do so in 2Q, as evident from pick-up in net hiring
• Mgmt. focus on margin expansion has intensified & Cigniti is on track
• MS on Coforge
• Overweight Call, Target Raised To Rs 7,180
• Q1 Results Show Signs Of Rev Growth Pickup With An Orderbook Upturn
• Co Has Strong Headcount Addition
• Constructive Demand Commentary, In-line With Peers
• Co’s Focus Is On Margin Both In The Core Business As Well As Cigniti
• Raise F25-F27 EPS Estimate By 5%
• Think Earnings Est Downgrade Cycle May Be Behind
• Expect Consensus Core Business Estimates To Inch Up
• MS on ICICI Pru Life
• EW, TP Rs 610
• VNB margin better than MSe
• VNB margin progression in FY24 was quite volatile; hence, maintain forecasts for now
• Stock has outperformed YTD & re-rated vs. peers despite sharper VNB downgrades both by us & consensus in recent qtrs
• Jefferies on M&M Fin
• Hold, TP Rs 305
• PAT grew 45% YoY to Rs5.1bn ahead of our Rs4.7bn est. due to lower provision.
• Loan growth moderated.
• Margins dipped QoQ due to lower yield.
• Stage 2 & stage 3 assets rose QoQ.
• CITI on M&M Fin
• Neutral, TP Rs 310
• Earnings growth of 45% yoy & RoA of 1.8% beat CitiE primarily led by lower-than-anticipated credit cost at 1.8%.
• Despite 130bps rise in GS-3/2 & write-offs of Rs3.2bn, provisions lower by Rs1.1bn
• Building in credit cost of 1.5% over FY25-27E
• Jefferies on ITC
• Upgrade to Buy, TP Rs 585
• No News is Great News
• A clear winner with gov't leaving tobacco taxes unchanged
• GST taxes are also likely to stay stable until Mar-26 until center settles state dues.
• Demand outlook for staples improving & should benefit Co
• MS on ITC
• OW, TP Rs 506
• Today's budget allays one of key concerns of tobacco tax hikes.
• In addition to relief from any near-term demand disruptions, this will be viewed as a reflection of future policy action
• ITC well placed & a re-rating play
• CLSA on Titan
• O-P, TP Rs 3948
• Customs duty on gold & silver cut to 6% from 15%
• Should lead to a reduction in gold prices, allaying investor concerns on gold prices.
• Believe this is positive for Titan & reiterate O-PF rating
• MS on Titan
• EW, TP Rs 3526
• The budget has proposed a 9ppt reduction in custom duty on gold (6-9% correction in gold price).
• This should help boost jewellery consumption and also reduce competitive pressures on discounting (inventory loss for local players)
• CLSA on Avenue Supermart
• O-P TP Rs 5535
• Believe budget offers several incentives for urban working class consumers from lower tax rates, direct benefit transfers to 1st time employees & incentives for employers of new employees
• Believe DMART beneficiary of each of these themes
• Nifty closed @24,413.50 (-65.55) and Sensex @80,148.88 (-280.160 on Wednesday GIFT Nifty was trading at 24,186 (as of 7:30 a.m)
• FIIs net sold equities in cash to the tune of Rs 5,131 cr whereas DIIs net bought Rs 3,137 cr on July 24 2024
• Net profit of L&T increased 10% 4 YoY to Rs 3 440 crore in Q1 FY25 according to an exchange filing
• Reliance gets US approval to resume crude imports from Venezuela
• SEBI Study: 7 of 10 individual intraday traders lost money; 76% of them under 30
• India's flash Composite PMI increased to 61 3 in Jul 24 from 60.6 in June 24
• Oracle Financial Services Software Ltd reported a 23.1% YoY increase in net profit at 616.7% crore for Q1FY25
• Jindal Steel and Power Ltd reported a 20 9 YoY decline in net profit at Rs. 1,337.9 crore for Q1FY25
• HUDCO shares gain on MoU with Rajasthan govt to provide Rs. 1 lakh crore financial assistance
• Axis Bank has reported a net profit of Rs.6,035 crore for the Q1 FY25 this represents a YoY growth of 4 compared to 5 797 1 crore
• Bajaj Finserv reported 10 increase in net profit to Rs.2,138 crore, up from Rs.1,943 crore in the same period last year
• KPIT Technologies Ltd reported a 24% QoQ rise in Q1 FY25 profit at Rs.204 crore The same was Rs.164 crore in the fourth quarter of last fiscal
• KEC International bags fresh orders worth Rs. 1,422 crore, order intake crosses Rs.7,500 crore this year, so far.
• Hitachi Energy India posted four fold jump in net profit to Rs 10.4 crore for June quarter FY25 mainly due to higher revenues.
• Indian ADRs: ICICI Bank (-1.7%), Wipro (-1.5%) and HDFC Bank (-1.4%)