CLSA gives ‘outperform’ rating for Bandhan Bank; sets target price at Rs 390
Bokerage firm CLSA has given an ‘outperform’ rating for Bandhan Bank, stating that there is no mention of microfinance loan waivers in the Assam and West Bengal election manifestos. CLSA has set a price target of Rs 390 for the stock. The brokerage firm states that in the upcoming elections of Assam and West Bengal election manifestos largely refrained from promising microfinance loan waivers. In Assam, the manifesto refers only to enhancing income support to Rs 3,000 per month to a larger set of beneficiaries.
As highlighted by credit bureaus, Assam’s overdue loans at more than 40 percent were higher than average due to political uncertainty, which should abate now. But the West Bengal overdue at about 40 percent on a system-level has been surprisingly high despite reduced political noise; so, it will be required to monitor if the absence of manifesto waiver announcements will lead to improved microfinance collections in Bengal. Continue reading.
Motilal Oswal on Divi’s Laboratories
Divi’s Laboratories is well-placed to capitalize on the carotenoid opportunity too, with a 21 percents ales CAGR to Rs 8 billion expected over FY20–23, driven by healthy demand, integrated manufacturing, and doubled capacity. We value Divi’s Laboratories at 36x 12M forward earnings to arrive at target price of Rs 4,530. We reiterate Buy and see multiple growth levers –new product additions, strong chemistry skillset, efficient manufacturing capabilities, scale advantage in legacy molecules, minimal financial leverage, and sufficient cash available for new projects.
Positive on QSR, speciality chemicals; wary on Barbeque Nation: Nirmal Bang’s Girish Pai
Girish Pai, Head of Research at Nirmal Bang Institutional Equities, on Thursday said that he was wary on Barbeque Nation as they are not keen on casual dining side. “We are more inclined towards the QSR side where there is more delivery and that is going to lead to higher asset turnover. So, that is a space we have liked. So Jubilant Foodworks and Westlife we have an accumulate rating right now. We did put out a non-rated note on Barbeque Nation, but as things stand, we are not keen on the casual dining side because we think that the asset turn could be a little bit more challenged in that space going forward,” he said in an interview to CNBC-TV18. Watch here.
Market Watch: S Krishna Kumar, CIO Equity, Sundaram Mf
The markets definitely have been getting a little edgy seeing the rising cases in COVID infection and that is a bit of a worry. The markets were at all-time highs and valuations were getting fairer, so near-term looked pretty much capped and here we are probably 10 percent down. Markets are getting a lot more attractive to start nibbling in.
Our view is that the markets have priced in a little bit of uncertainty and also the valuations are getting more reasonable. The weakness in Q4 numbers that could come in relation to expectations has also been factored in now. Right now, we are in a zone where incrementally investors would get more comfortable to add to equities.
Ventura Securities bets on this stock to jump 120% in next 18 months
Brokerage house Ventura Securities believes Himachal Futuristic Communications (HFCL) will double its investor wealth in the next one year. The brokerage recently initiated a ‘buy call on the stock with an upside of 120 percent for an 18-month period. “We value HFCL at Rs 59 (15x FY23 earnings) and initiate coverage with a BUY. At the CMP of Rs 27, the price objective represents a potential upside of 119.5 percent over the next 18 months,” stated the brokerage.
HFCL is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development system integration and manufacture and supply of high-end telecom equipment and Optic Fiber Cable (OFC). Their manufacturing facilities are located at Solan in Himachal Pradesh Salcete in Goa and New Delhi.
As per Ventura, it is bullish on the confluence of several large medium to long-term opportunities including 4G expansion, 5G rollout, broadband penetration, potential in railways and defense opportunities. Read more.
Cadila Healthcare | Zydus Cadila has received tentative approval from the USFDA to market Emtricitabine and Tenofovir Disoproxil Fumarate Tablets 100 mg/150 mg, 133 mg/200 mg and 167 mg/250 mg. Emtricitabine and Tenofovir Disoproxil Fumarate Tablets are used with other HIV medications to help control HIV infection, the company said.
10% correction post-100% return healthy; sub-13600 Nifty would worry: Atul Suri
Veteran trader-investor Atul Suri is not too perturbed by the ongoing correction in the market. From the lows of March 2020, the market has delivered 100 percent returns, he reminded viewers. “After a 100 percent move over a year, if we see 10-12 percent kind of correction, it is good, healthy,” Suri, CEO, Marathon Trends said in an interview with CNBC-TV18.
The pre-Budget low is a key level that Suri has an eye out for. The Nifty had crashed to a low of 13596 on January 29. “It won’t bother me if we do not violate the pre-budget lows. In case, in spite of such a path-breaking budget, if we revisit those places or go below that, that is when I would be worried,” he added.
According to him, stocks that fall less in falling markets are leaders of the next bull market. Read more.
Welspun Enterprises | The company has agreed to take over a Hybrid Annuity Mode Project i.e. Six-Laning of Existing Kozhikode Bypass of NH-66 in the state of Kerala from Calicut Expressway Private Limited through the process of Harmonious Substitution of the National Highways Authority of India (NHAI). The current estimated bid project cost with price index escalation is over Rs 1,900 crore, and the first-year operations and maintenance is Rs 6.30 crore.
Jyoti Roy – DVP- Equity Strategist, Angel Broking
Laxmi Organics is the largest manufacturer of ethyl acetate with over 30% market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India with a diversified customer base. Given the strong growth prospects and reasonable valuations we had given a subscribe rating to the IPO. However at current levels the stock is trading at a P/E multiple of 51.3xFY20 EPS which is on the higher side as compared to peers. Hence we would recommend book profits at current levels.
Barbeque Nation IPO subscribed 1.63 times so far
The initial public offering (IPO) of causal dining restaurants chain Barbeque Nation Hospitality was subscribed 1.63 times on March 25, the second day of the bidding process. Investors have put in bids for 81.55 lakh equity shares against the offer size of 49.99 lakh shares, as per subscription data available on the exchanges.
The reserved portion for retail investors has been subscribed 7.79 times, while that of non-institutional investors is subscribed 8 percent at end of day. Employees’ portion is subscribed 47 percent, while qualified institutional buyers’ part was subscribed 37 percent. The company has reserved shares worth Rs 2 crore for its employees.
Market Watch: Ashish Kyal of Waves Strategy Advisors
“My first short is going to be on Ashok Leyland, today we can clearly see pressure emerging in the auto stock. It looks like Ashok Leyland can continue to falter from here. One can short at current price keeping a stop loss of Rs 112 for the target of Rs 100.”
“Next stock on the short side is PSU banking space, Canara Bank. Sell Canara Bank at the current levels. It has already formed lower high lower low, willing to move above its moving average of 151 and constantly falling from there. So one can sell Canara Bank keeping a stop loss above Rs 145 for the target of Rs 130 levels.”
Yellow metal trades flat; support seen at Rs 44,550 per 10 grams
Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Thursday amid a muted trend in the international spot prices as strength in US dollar weighed. At 10:50 am, gold futures for April delivery eased 0.02 percent to Rs 44,849 per 10 grams as against the previous close of Rs 44,860 and opening price of Rs 44,892 on the MCX. Silver futures traded 0.16 percent lower at Rs 65,138 per kg. The prices opened at Rs 65,159 as compared to the previous close of Rs 65,245 per kg. More here
DHFL shares hit 5% lower circuit after CBI books co over fictitious home-loan accounts
Shares of Dewan Housing Finance Corporation (DHFL) were locked in 5 percent lower circuit of Rs 16.65 on Thursday after CBI booked the company and its directors over fictitious home-loan accounts. The CBI has booked DHFL and its directors for allegedly creating over 2.60 lakh fictitious home-loan accounts, some of which were used to claim interest subsidies in the Pradhan Mantri Awas Yojna (PMAY), officials said on Wednesday. The irregularities were pointed out in the report of auditor Grant Thornton, appointed by the present board of the scam-hit DHFL, they said. More here
Dilip Buildcon | The company has been declared the lowest bidder for HAM project in Karnataka worth Rs 1,137 crore including 4-lanlng of Sannur to Bikarnakette section from existing 698.850 kilometers to existing 744.90 of NH- 169 under Bharathmala Pariyoiana on Hybrid Annuity Mode in the state of Karnataka.
Correction in market an opportunity to buy: Mehraboon Irani of Gini Gems Consultants
Mehraboon J Irani, MD and CEO at Gini Gems Consultants is expecting the markets to correct a little bit further. “In a market, which has gone up in a hurry, a correction of 5-10 percent will just be a correction while quite a few traders will call it a sharp move. I would say that correction is a great opportunity because this would be an intermediate bottom and we will see new highs coming,” he pointed out.
Irani believes the pharmaceutical sector will relatively outperform in a market where a correction is expected to come. “I would be buying pharmaceutical stocks. You can expect a 20-25 percent upside in quite a few frontline pharmaceutical stocks. So, I would go with pharma just because I would like to be a little bit defensive in the short-term,” he shared. Read more.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The break of 14,750 yesterday has proved fatal. The market has been on a single slope fall and should be headed to 14,300-14,350. The resistance on the upside is around 14,900 and hence any intraday up move can be used to short this market.
Jubilant FoodWorks shares gain over 3% as co signs agreement for Popeyes restaurants
The share price of Jubilant FoodWorks gained over 3 percent in early trade on Thursday after the company signed an agreement with PLK APAC for Popeyes restaurants. In a regulatory filing, the company announced that it has entered into a Master Franchise and Development Agreement with PLK APAC Pte. Ltd., a subsidiary of Restaurant Brands International Inc. (RBI), to develop, establish, own and operate Popeyes restaurants in India, Bangladesh, Nepal and Bhutan in the coming years. “Popeyes will be an exciting addition to the JFL portfolio and is expected to become one of the key drivers of growth for us in the coming years,” said Shyam Bhartia, Chairman and Hari Bhartia, Co-Chairman, Jubilant FoodWorks. More here
Craftsman Automation lists with 9.4% discount at Rs 1,350 per share on BSE
Shares of Craftsman Automation got listed at Rs 1,350 apiece, a discount of 9.4 percent to the issue price of Rs 1,490 on the BSE. The stock got listed at Rs 1,359 on the National Stock Exchange, a discount of 8.79 percent. The Rs 823.7-crore initial public offering (IPO) of auto component maker Craftsman Automation was subscribed 3.8 times during March 15-17.
Laxmi Organics makes decent market debut; lists at 19.6% premium to issue price
Shares of Laxmi Organics made a decent debut on the bourses on Wednesday despite the ongoing market volatility. The stock listed with a premium of 19.6 percent at Rs 155.5 per share on the NSE as against the issue price of Rs 130 per share. On BSE, it was listed at Rs 156.20 apiece, up 20 percent. The IPO of Laxmi Organics that was open between March 15-17, 2021, was a major hit as it was subscribed over 106 times. The offer consisted of a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by the promoter group Yellow Stone Trust. The price band was set at Rs 129-130.
Fitch revises India GDP growth to 12.8% for FY22
Fitch Ratings has revised India’s GDP growth estimate to 12.8 percent for the fiscal year beginning April 1 from its previous estimate of 11 percent, saying its recovery from the depths of the lockdown-induced recession has been swifter than expected. In its latest Global Economic Outlook (GEO), Fitch said the revision is on the back of ”a stronger carryover effect, a looser fiscal stance and better virus containment.” ”India’s second half of 2020 rebound also took GDP back above its pre-pandemic level and we have revised up our 2021-2022 forecast to 12.8 percent from 11.0 percent,” it said. ”Nevertheless, we expect the level of Indian GDP to remain well below our pre-pandemic forecast trajectory.” GDP surpassed its pre-pandemic level in the December quarter, growing 0.4 percent year-on-year, after contracting 7.3 percent in the previous quarter. More Here
Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“The uncertainty in the market continues with increasing risk arising from the second wave of Covid attack in India in the context of a third wave in parts of Europe. But the relief is that the second wave is less intense than the first. This and the fact that vaccination is accelerating is likely to support markets. In this race between Covid spread and vaccination, the latter will eventually succeed. The market knows that. So, volatility is here to stay for some time before stability emerges. A major trend in the market now is the comeback of pharma stocks in recent days and the weakness in banking stocks. Pharma may continue to find favour, but high quality banking stocks are unlikely to languish. Q4 results of IT, banking majors and top-rung FMCG would be good. Market response will happen before the results are announced”