Closing Bell
Indian equity benchmarks snapped their seven-day losing streak, the longest in over four months, led by Infosys, HDFC, State Bank of India and Sun Pharma.
The S&P BSE Sensex rose 0.97 percent or 330 points to 34,413 and the NSE Nifty 50 Index gained 0.96 percent or 100 points to 10,576.
The mid-cap and small-cap shares outperformed their large-cap counterparts as the S&P BSE MidCap Index gained 1.8 percent and the S&P BSE SmallCap Index surged 2.2 percent.
All sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Pharma index's 3.6 percent gain.
Countdown
ACC Surges Most In 10 Months On Strong Q3 Earnings
Shares of the Mumbai-based cement maker rose as much as 7.55 percent, the most in nearly 10 months, to Rs 1,707 after it reported strong earnings in October-December quarter.
Key earnings highlights:
- Standalone margin at 12.7 percent versus 10.6 percent (YoY)
- Standalone EBITDA at Rs 442.2 crore versus Rs 285.8 crore (YoY)
- Standalone revenue at Rs 3494 crore versus Rs 2697.3 crore (YoY)
- Standalone net profit at Rs 204.5 crore versus Rs 80.5 crore (YoY)
- Standalone margin at 12.7 percent versus Bloomberg estimate of 11 percent
- Standalone EBITDA at Rs 442.2 crore versus Bloomberg estimate of Rs 352 crore
BHEL's December Quarter Profit Rises 64%
Shares of the Delhi-based electrical power equipment maker rose 1.4 percent to Rs 95.6 after it reported December quarter earnings.
Key earnings highlights:
- Revenue up 5 percent at Rs 6,626 crore versus Rs 6,321 crore
- Net profit up 64 percent at Rs 153 crore versus Rs 93 crore
- EBITDA up 32 percent at Rs 295 crore versus Rs 224 crore
- Margins at 4.4 percent versus 3.5 percent
Page Industries Surges On Q3 Profit Beat
Shares of the Bangalore-based innerwear maker rose as much as 5.6 percent, the most in a month, to Rs 20,438 after its profit beat consensus earnings estimates compiled by Bloomberg.
Key earnings highlights:
- Net profit up 32.6 percent at Rs 83.4 crore versus Rs 62.9 crore (YoY)
- Net profit at Rs 83.4 crore versus Bloomberg estimate of Rs 77.9 crore
- Revenue up 17.6 percent at Rs 621 crore versus Rs 528 crore (YoY)
- EBITDA up 30 percent at Rs 128.8 crore versus Rs 99.1 crore (YoY)
Market Check
- Indian equity benchmarks extended gains led by Infosys, Reliance Industries, HDFC and HDFC Bank.
- The S&P BSE Sensex rose 1.5 percent or 521 points to 34,602 and the NSE Nifty 50 Index climbed 151 points or 1.5 percent to 10,628.
- All sector gauges compiled by BSE were trading higher led by the S&P BSE Realty Index's 3.2 percent surge.
- The broader markets were also trading higher as the S&P BSE MidCap Index rose 1.9 percent and the S&P BSE SmallCap Index gained 2.5 percent.
Power Lunch
Block Deal Alert
- Triveni Turbine has 1.45 crore shares (4.4 percent equity) change hands in a single block.
Buyers and sellers were not immediately known
Source: Bloomberg
#Ask BQ
CESC Rises On Meeting Estimates In Q3
Shares of the Kolkata-based electricity supplier rose as much as 3 percent to Rs 1,007.95 after its net profit in December quarter met earnings Estimates compiled by Bloomberg.
Key earnings highlights:
- Net Profit at Rs 154 crore versus Bloomberg estimate of Rs 151.9 crore (YoY)
- Net Profit up 1.3 percent at Rs 154 crore versus Rs 152 crore (YoY)
- Other Income Rs 43 crore versus Rs 30 crore (YoY)
- Revenue at Rs 1,706 crore versus Bloomberg estimate of Rs 1691.9 crore (YoY)
- Revenue up 5.3 percent at Rs 1,706 crore versus Rs 1,620 crore (YoY)
Hot Money
Cadila Healthcare Gains On Profit Beat In Q3
Shares of the Ahmedabad-based drug maker rose as much as 5.4 percent, the most in nearly six months, to Rs 417.60 after its net profit beat consensus earnings estimates compiled by Bloomberg.
Key earnings highlights:
- Consolidated net profit at Rs 543 crore versus Bloomberg estimate of Rs 538 crore
- Consolidated revenue at Rs 3259.6 crore versus Bloomberg estimate of Rs 3151 crore
- Consolidated EBITDA at Rs 841 crore versus Bloomberg estimate of Rs 836 crore
- Consolidated margin at 25.8 percent versus Bloomberg estimate of 26.5 percent
- Consolidated net profit at Rs 543 crore versus Rs 324 crore (YoY)
- Consolidated revenue up 41 percent at Rs 3259.6 crore versus Rs 2311 crore (YoY)
- Consolidated other income up 1.47 times at Rs 41.1 crore versus 16.6 crore (YoY)
- Consolidated EBITDA up 1.08 times at Rs 841 crore versus Rs 404 crore (YoY)
- Consolidated margin at 25.8 percent versus 17.5 percent (YoY)
Bharat Forge Q3 Net Profit Beats Estimates
Shares of the Pune-based auto component maker rose as much as 4.7 percent to Rs 740 after its net profit beat consensus earnings estimates compiled by Bloomberg.
Key earnings highlights:
- Net revenue up 47 percent at Rs 1,390.55 crore versus Rs 943.7 crore (YoY)
- Net profit up 77.4 percent at Rs 228 crore versus Rs 128.62 crore (YoY)
- Net profit at Rs 228 crore versus Bloomberg estimate of Rs 208 crore
- EBITDA up 60 percent at Rs 416.33 crore versus Rs 260.59 crore (YoY)
- Margin at 29.93 percent versus 27.61 percent
Galaxy Surfactants To BloombergQuint
- Good amount of headroom available going by our capacity utlisation
- We are capacity ready now
- Capacity utilisation is close to 60 percent
- Total capacity is more than 3,50,000 tonnes
- Looking to increase share in all products and categories
Advance Decline Ratio Extremely Positive
Market breadth was extremely bullish as 2,070 shares were advancing while 446 were declining on the BSE.
Trend Spotting
Market Check
- Indian equity benchmarks were witnessing good buying interest after falling for seven days in a row led by Infosys, HDFC, HDFC Bank and TCS.
- The S&P BSE Sensex rose 415 points to 34,495 and the NSE Nifty 50 Index climbed 118 points to 10,595.
- The mid-cap and small-cap indices were outperforming their large cap counterparts as the S&P BSE MidCap Index rose 1.5 percent and the S&P BSE SmallCap Index gained 2.2 percent.
- All sector gauges were tradi ng higher led by the S&P BSE Realty Index's 2.8 percent gain.
FDC Gains On Strong Q3 Earnings, Share Buyback Approval
Shares of the Mumbai-based specialty pharma company rose as much as 10 percent to record high of Rs 280 after it reported strong October-December quarter earnings and its board approved a proposal to buyback of 34.30 lakh shares at Rs 350 apiece.
Key earnings highlights:
- Net profit rose 93 percent to Rs 42.65 crore versus Rs 22.03 crore (YoY)
- Revenue rose 7.6 percent to Rs 248.76 crore versus Rs 231.19 crore (YoY)
Galaxy Surfactants Rises 13.1% Over IPO Price
Galaxy Surfactants Ltd. listed at a premium of 13 percent at Rs 1,525 per share on the NSE Ltd., compared to its issue price of Rs 1,480 apiece. The stock rose as much as 13.1 percent to Rs 1,674 thereafter.
The speciality chemicals manufacturer’s Rs 937 crore initial public offer was subscribed 20 times. The IPO was an offer for sale by existing shareholders and the company is not raising capital.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 54.27 times, non-institutional investors 6.96 times and retail investors 6.01 times, as per NSE data.
Monte Carlo Fashions Rises On Strong December Quarter
Shares of the Ludhiana-based winter wear maker rose as much as 7.14 percent, the most since Jan. 23, to Rs 601 after it reported strong December quarter earnings.
Key earnings highlights:
- Net profit rose 207 percent to Rs 47.78 crore versus Rs 15.56 crore (QoQ)
- Revenue rose 158 percent to Rs 356 crore versus Rs 137.68 crore (QoQ)
#Q3 With BQ
Vedanta Falls After Top Court Quashes Iron Ore Mining Permits In Goa
Shares of billionaire Anil Agarwal-led group fell as much as 3.34 percent to Rs 305.15 after the Supreme Court cancelled all the 88 iron ore mining leases renewed by the Goa government.
The apex court yesterday ordered that no mining activity will continue in the state post March 15, and the government will have to grant fresh leases through auctions. Vedanta stands to lose Rs 1,000 crore revenue following the ban, reported BloombergQuint yesterday.
Cipla Surges On Morgan Stanley Rating Upgrade
Shares of the Mumbai-based drug maker rose as much as 6.85 percent, the most in three months, to Rs 608.25 after Morgan Stanley upgraded its stock to ‘Overweight’ from ‘Underweight’ and raised its target price to Rs 716 from Rs 555.
Elantas Beck Gains As Angel Broking Initiates Coverage
Shares of the Pune-based specialty chemical maker rose as much as 3.89 percent to Rs 2,240 after Angel Broking initiated coverage on the stock with a buy for target price of Rs 2,500 per share.
Angel Broking in a report said:
- Market leader in liquid insulation used in electrical equipment
- Liquid insulation forms small but critical part
- Demand from user industries likely to be robust
- Deleveraged company generates healthy free cash flow
- Has liquid investments worth more than Rs 128 crore
- Company shares this wealth in every 2-3 years in form of rich dividends
- Expect company to soon announce a lumpy dividend
- Calendar year 2017 to be subdued due to GST woes and poor off take
- Demand to pick up from the present calendar year: Earnings to grow at a compounded annual growth rate of 17 percent over three calendar years up to 2020
- Current valuations look attractive considering growth potential and high return ratios
The F&O Show
Uflex Falls As Net Profit Declined In December Quarter
Shares of the Delhi-based flexible packaging company fell as much as 7.4 percent to Rs 365 after its net profit declined in October-December quarter due to commissioning of Sanand plant.
Key earnings highlights:
- Consolidated margin at 11.6 percent versus 14 percent
- Consolidated EBITDA 7.2 percent at Rs 194.43 crore versus Rs 209.6 crore
- Consolidated revenue 6 percent at Rs 1,674.4 crore versus Rs 1,580.8 crore
- Consolidated net profit down 29.5 percent at Rs 52 crore versus Rs 73.8 crore
Samir Arora To BloombergQuint
- Will look at larger mid-caps or large caps for investing
- Uncertainty in U.S. persists, 15 percent will be a good return in such a scenario
- Elections won't worry me as market is expecting BJP to win
- Not betting on cryptocurrencies, makes no sense
- 15 percent return should be reasonable this year
- Line saying if we cut tax, shareholders benefit, is absolutely wrong
- India is 10 percent expensive than other countries
- Domestic fund managers saying it does not matter to tax 10 percent, but it matters as it is the investor who is actually paying
- India is now charging 10 percent more tax than other countries
- 10 percent fall matters, we are trying to escape by saying it is a global issue
IndianOpen
Opening Bell
Indian equity benchmarks edged higher led by gains in Infosys, Hero MotoCorp, ONGC and Axis Bank. However, the gains were capped as ICICI Bank, Sun Pharma and NTPC were among the laggards.
The S&P BSE Sensex rose 0.26 percent to 34,170 and the NSE Nifty 50 Index rose 0.15 percent to 10,493.
The mid-cap and small-cap were outperforming their large cap counterparts as the S&P BSE MidCap Index rose 0.4 percent and the S&P BSE SmallCap Index advanced 0.7 percent.
Seventeen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Realty Index's 1.8 percent gain. On the other hand, the S&P BSE Metal index was the top sectoral loser, down 0.6 percent.
IndianOpen
Rupee Opens Marginally Lower Against Dollar
Rupee opens at 64.35 per dollar against yesterday's close of 64.28.
F&O Setup
- Nifty February futures trade at 10,465, discount of 10 points from a premium of 15 point
- February series: Nifty open interest unchanged; Bank Nifty open interest up 8 percent
- India VIX ended at 19.4, down 2.7 percent
- Max open interest for February series at 11,500 call strike (open interest at 57 lakh, down 1 percent)
- Max open interest for February series at 10,000 put (open interest at 56.7 lakh, up 14 percent)
F&O Ban
- In ban: Fortis Healthcare, GMR Infrastructure, HDIL, Jain Irrigation
- New in ban: GMR Infra
Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these positions.
Brokerage Radar
Nomura on Eicher
- Maintain neutral with target price of Rs 33,049
- EBITDA marginally ahead of estimates in the third quarter
- Expansion of standalone gross margins is a positive
- Sharp jump in other expenses led by new product launch
- Expect Royal Enfield volumes growth to normalise to 15 percent/12 percent in the next fiscal
Jefferies on Eicher
- Maintain hold; cut target price to Rs 31,227 from Rs 31,447
- In-line for Royal Enfield in the third quarter
- VECV delivered strong performance
- Better gross margin, helped partly by inventory build-up
- Believe Royal Enfield is going through a reset
- Seeing waiting periods disappear, growth moderates and margins stabilize
Deutsche Bank on Indraprastha Gas
- Maintain buy with target price of Rs 320
- Marginally below estimates in the December-ended quarter
- Strong volume growth offsets weaker margin impact
- IGL on track to deliver robust earnings growth
- IGL looks well placed to benefit from expansion in new areas
Angel Broking on Elantas Beck India
- Initiate Buy with target price of Rs 2,500
- Market leader in liquid insulation used in electrical equipment
- Liquid insulation forms small but critical part
- Demand from user industries likely to be robust
- Deleveraged company generates healthy free cash flow
- Has liquid investments worth more than Rs 128 crore
- Company shares this wealth in every 2-3 years in form of rich dividends
- Expect company to soon announce a lumpy dividend
- Calendar year 2017 to be subdued due to GST woes and poor off take
- Demand to pick up from the present calendar year: Earnings to grow at a compounded annual growth rate of 17 percent over three calendar years up to 2020
- Current valuations looks attractive considering growth potential and high return ratios
Prabhudas Lilladher on Indraprastha Gas
- Maintain Buy; Cut target price to Rs 333 from Rs 342
- Net profit and EBITDA lower than estimates in the September to December quarter
- Higher gas costs and other expenses drag margins
- CNG, PNG volume traction remains strong
- IGL remains a play on rising pollution concerns
- Natural gas if included in GST will further boost gas demand
Macquarie on Cipla
- Upgrade to Outperform from Neutral; Raised target price to Rs 670 from Rs 632
- EBITDA was tad above estimate in the third quarter
- Impairment charge in Invagen acquisition was a key negative
- India, Europe and SA shine; U.S. growth yet to pick up
- Expect U.S. sales to pick up starting in the fourth quarter
- US to deliver decent 12 percent revenue CAGR over financial years 2017 to 2020
- Cipla is best placed amongst large-cap pharma stocks
Credit Suisse on Cipla
- Maintain Outperform with a target price of Rs 700
- Beat EBITDA estimates in the third quarter due to strong India growth better gross margins and cost control
- Ex-U.S.: Strong growth in India and Europe
- Margin expansion to continue as the second quarter was partially benefitted from high margin launches
- Benefit of key U.S. launches to be visible in the fourth quarter
Jefferies on Voltas
- Maintain Buy with a target price of Rs 660
- Strong operational beat; Profits came in-line in the December-ended quarter
- Cooling products surprised on both revenue and margins
- MEP profitability surprises
- Cooling products maintain market leadership at 23.7 percent share
Macquarie on Hexaware
- Maintain Outperform; Raised target price to Rs 444 from Rs 380
- Revenue were marginally better in the last quarter of the previous calendar year
- New deal wins remain solid; Validates articulated strategy
- Guidance may be conservative
- Expect Hexaware to post industry leading dollar revenue growth of 12.4 percent in the current calendar year
- Aiming to reduce U.S. revenues to 70 percent in medium term
- Continue to rate L&T Infotech and Hexaware as top midcap picks in Indian IT space
IDFC Securities on SpiceJet
- Maintain Outperformer; Raised target price to Rs 181
- Stellar earnings led by higher volumes and better yields in the third quarter
- Capacity additions lagging demand; Load factors continue to remain robust
- Continues to reap benefits of its increased non-metro/regional focus
- Expect impact of recent surge in crude prices to be passed on in tariffs by the first quarter of the next fiscal
- With strong cash generation balance sheet to strengthen further
Elara Capital on SpiceJet
- Maintain Buy; Raised target price to Rs 203 from Rs 188
- Strong pricing power driving earnings
- Strong passenger volume growth; Strong yield growth
- Spicejet is top pick among aviation space
- Company to benefit from regional market growth
Earnings To Watch
- ABB India
- ACC
- BHEL
- Bharat Forge
- Cadila Healthcare
- CESC
- Dr Lal Path Labs
- Glenmark Pharmaceuticals
- Granules India
- Manappuram Finance
- Page Industries
- Parag Milk Foods
- Petronet LNG
- Reliance Capital
- SAIL
- Torrent Pharmaceuticals
Trading Tweaks
- Omkar Speciality Chemicals circuit filter revised to 10 percent
- BharatElectronics, Savita Oil Technologies Special Tubes ex-date to determine buyback eligibility
- Pidilite last trading day to determine buyback eligibility
- Indiabulls Ventures last trading day before going ex-rights
Bulk Deals
Shankara Building Products
- Amansa Holding Pvt Ltd bought 3.97 lakh shares (1.7 percent) at Rs 1,675 each
- Smaller Cap World Fund Inc sold 4.17 lakh shares (1.8 percent) at Rs 1,675 each
Stocks To Watch
- Shriram Transport transfers 1.66 crore shares of Shriram Automall India worth Rs 156.37 crore to MXC Solutions India.
- Mahindra, Piramal express interest in buying Sahara's Aamby Valley.
- Karnataka Bank raises interest rates on domestic term deposits.
- Southern Petrochemicals board approves proposal of TFL for conversion of unsecured loans and outstanding dues into equity.
- Gitanjali Gems said managing director Mehul Chooksi named among accused in Rs 280 crore cheating case.
- 3i Infotech allots 1.46 crore shares and 2.56 crore non-convertible class B preferential shares to Oriental Bank of Commerce pursuant to scheme of restructuring.
- FDC Ltd. board approves buyback of 34.30 lakh shares at Rs 350 apiece. Promoters will participate.
- Dilip Buildcon incorporates a new SPV for the rehabilitation and upgradation of National Highway 5.
- Piramal Enterprises says Bain capital will acquire 50 percent stake in subsidiary India Resurgence Asset Management Business.
- Union Bank of India to allot shares worth Rs 4,524 crore to the government on a preferential basis.
For a complete list of stocks, click here!
Talking Points
- Bitcoin Above $8,000 After Regulators Spare Toughest Reprisals
- MPC Set To Hike Rates Soon? Unlikely, Say Economists
- Aurobindo Pharma’s Q3 Profit Misses Estimates On One-Time Tax Charge
- Wall Street Sours on Cboe After Collapse of VIX-Linked Funds
Commodity Cues
- The Bloomberg Commodity Index fell 1.2 percent, its biggest tumble in 12 weeks.
- West Texas Intermediate crude was little changed at $61.69 a barrel after falling 2.6 percent.
- Gold fell 0.2 percent to $1,315.49 an ounce.
Here are some events scheduled for the remainder of this week:
- The U.K.’s monetary policy decision Thursday. The Bank of England may see Governor Mark Carney emphasize that continuing appreciation of the pound, which has strengthened almost 3 percent since the beginning of 2018, would help to contain inflation. This would stand in sharp contrast to the Reserve Bank of New Zealand which earlier Thursday said it expects its exchange rate to ease.
- Earnings season continues with reports from Philip Morris, L’Oreal and Twitter.
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.6 percent to 10,518 as of 7:00 a.m.
Asian stocks pushed higher Thursday, while U.S. equity-index futures slipped as investors assessed the implications of the recent market turmoil that has elevated volatility.
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