PremiumRBI MPC meeting, which began today and will go on until Feb 8, will be the focus for the next few days. It is expected that the RBI will increase the interest rates by 25 bps. Meanwhile, Adani Enterprises shares dragged in the morning session but settled in the flat territory. Adani Ports on the other hand gained 8%.
Indian benchmark indices tracked their peers as they dragged in today's session and closed 0.5% lower. Most Adani stocks remained stable for the second session in a row. Indices tracked other Asian hares after the latest US jobs report renewed concerns about more rate hikes from the Federal Reserve.
Sensex lost 335 points to close just above 60500, at 60506. Meanwhile, Nifty also fell 90 points to close the day at 17,763.
Adani Ports gained more than 8% in today's session followed by IndusInd Bank and BPCL which climbed 2% each. Divi's Lab shed 3.5%, JSW Steel around 3%. Hindalco, Tata Steel and Infosys dropped more than 2% each. Adani Enterprises fell 10% intraday but ended the day flat.
Among sectoral indices, Metal continues to remain under pressure as the sector closed 2% down. Energy and IT also had a rough day. Bank indices remained volatile but the PSU Bank index closed in green along with Media and FMCG.
Asian indices mostly dropped on Monday after strong US jobs data caused a rethink of expectations that the Federal Reserve will soon suspend its rate hikes.
Tokyo remained an exception as stocks ended higher on Monday after a report about the Bank of Japan's next governor fuelled speculation that the institution would stick to its ultra-loose monetary policies. The benchmark Nikkei 225 index climbed 0.67%, while the broader Topix index added 0.45%.
Hong Kong stocks closed at a one-month low and China shares fell on Monday, as elevated Sino-U.S. geopolitical tensions over a suspected spy balloon dented investor sentiment.
China's CSI 300 Index closed down 1.3%, while Hong Kong's Hang Seng benchmark ended 2% lower. A U.S. military fighter jet shot down a suspected Chinese spy balloon on Saturday, a week after it first entered U.S. airspace and triggered a dramatic spying saga that has clouded already strained Sino-U.S. relations.
The Stoxx Europe 600 index retreated after closing Friday in a bull market, as investors showed their concern about a hawkish Fed. Markets retreated on profit-taking after London had raced to a record high ahead of the weekend break.
London's benchmark FTSE 100 index fell in the morning session points as traders feared further US interest rate hikes for a while longer following strong American jobs data. The FTSE on Friday struck an all-time peak above 7,906 points, in the wake of record profits from British energy giant Shell.
Foodtech platform Swiggy has appointed three independent directors to its board as it gears for an initial public offering (IPO).
The directors are tractor-maker TAFE’s Mallika Srinivasan, logistics firm Delhivery’s Salil Barua, and Shailesh Haribhakti & Associates’ Shailesh Haribhakti, the company on Monday said.
“They have very rich and diverse experiences in building sustainable businesses at scale," said Sriharsha Majety, chief executive officer(CEO) of Swiggy. “Getting these new and powerful perspectives and strengthening our governance will immensely benefit us."
With the latest appointments, Softbank-backed Swiggy has added its first independent set of directors. The Bengaluru-based firm had reportedly started preparing for an $800 million-IPO last year, intending to go public in 2023.
Hong Kong stocks closed at a one-month low and China shares fell on Monday, as elevated Sino-U.S. geopolitical tensions over a suspected spy balloon dented investor sentiment.
The market also tracked other Asian shares lower, after the latest U.S. jobs report renewed concerns about more rate hikes from the Federal Reserve.
China's CSI 300 Index closed down 1.3%, while Hong Kong's Hang Seng benchmark ended 2% lower.
A U.S. military fighter jet shot down a suspected Chinese spy balloon on Saturday, a week after it first entered U.S. airspace and triggered a dramatic spying saga that has clouded already strained Sino-U.S. relations.
China strongly condemned the military strike on the balloon that it says was used for meteorological and other scientific purposes.
"Undoubtedly, the incident is a negative headline for the market," said Yuan Yuwei, hedge fund manager at Water Wisdom Asset Management. "The strong U.S. jobs report also cooled the fever of 'rate pivot' perceptions, leading to a surging dollar and a declining yuan." (Reuters)
The boards of France-based Renault and Japan-based Nissan have approved the redesigned alliance between the two. Earlier this month, the automakers announced that Renault will slash its stake in partner Nissan to 15% from the current 43% as part of a rebalancing act. Revealing the details today, the Japanese car maker said that it will buy a stake of up to 15% in Renault's electric vehicles unit Ampere.
"Nissan's intention is to invest up to 15% in Ampere, Renault Group's EV & Software entity in Europe, with the aim to become a strategic investor," the statement said ahead of a presentation in London. (Read More)
On February 6, Varun Beverages announced a quarterly profit that was higher than anticipated. The Pepsi bottler profited from price increases and increased demand for its more expensive beverages, including the Sting energy drink. On average, analysts projected a profit of ₹593.40 million, according to Refinitiv IBES.
Profit for the fourth quarter that ended on December 31 more than doubled to ₹747.5 million from a year earlier, according to the company. To ₹22.57 billion, operating revenue increased by over 28%. For thirty years, PepsiCo-branded beverages have been produced and packaged by Varun Beverages. (Read More)
Elon-Musk owned Twitter rolled out Gold, Grey and Blue check marks to identify different kinds of users on the social media platform. For individuals, Twitter Blue check mark costs $8 per month on Android and $11 per month on iOS. As per a report, it has started rolling out $1,000 a month for gold check marks to business organizations. The update was shared by social media consultant Matt Navarra and tech news site The Information has confirmed the details. (Read More)
InterGlobe Aviation - Robust yields; lower crude provides relief (Buy, TP: Rs2,450)
IndiGo’s PAT at Rs14.2bn in Q3FY23 significantly beat our estimate of Rs4.9bn due to stronger yields. RASK grew 28.9%YoY to Rs5.26 (highest ever; est Rs4.9) aided by 22%YoY increase in ticket yields and increase in load factor to 85.1% from 79.7% PY. Yields were also supported by receipt of certain compensation from OEMs/vendors for aircraft groundings (we estimate it could be ~9ps impact). ASK/RPK grew 25.3%/33.8% YoY to 28.8bn/24.5bn. Recurring EBITDA (ex Fx MTM) at Rs39.8bn was sharply above estimate of Rs30bn. IndiGo has guided for capacity growth of 45% YoY in Q4FY23 (implies 3% QoQ growth) and ~15% growth in FY24. We expect RASK to soften QoQ in Q4FY23 (on a relatively high base) due to seasonal weakness in traffic/fares, lower load factor and also pass-through of lower fuel costs. Strong growth outlook, improved fare discipline and lower fuel costs are key catalysts. Stock trades at 10.9x/9.3x FY24E/25E EBITDAR. Maintain BUY.
Earnings beat estimates due to stronger yields
ITC Limited - Another stellar quarter, cigarette volumes up 15% (Buy, TP: Rs470)
ITC’s Q3FY23 delivered stable performance (though impacted by lower agri exports); revenue/ EBITDA/ PAT grew 2.5%/23.3%/21.0%. Cigarette saw strong volume/EBIT growth of 15.0%/ 16.9%. More importantly, the volume recovery from illicit trade on the back of stable taxation and product innovation to continue. FMCG revenue/EBIT grew 18.4%/43.9%, led by staples and convenience foods with rapid growth in MT/E-com. Hotels/Paper segment revenue/EBIT grew 50.5%/29.0% & 12.7%/26.3%. Agri business cut by 37.1%. Gross margin improved to 58.5% (+773bp). FMCG EBITDA margin surged at 10.0% led by price increases and ~7% volume growth. We expect FMCG to deliver strong EBITDA with better operating leverage and improved product-mix. Further, increase in NCCD tax by 16.0% would have limited impact on cigarette margins. With higher FMCG/Cigarette revenues, we tweak earnings and maintain strong BUY, with a revised DCF-based TP of Rs470 (implying 28.5x avg. FY24/FY25E EPS).
All segments firing well excluding Agri; Strong execution delivered 184% growth in FMCG
Muthoot Finance Ltd will raise ₹500 crore via secured redeemable non-convertible debentures (NCDs) of face value of ₹1,000 each. The base issue size is ₹75 crore with an option to retain oversubscription of up to ₹400 crore, aggregating up to tranche limit of ₹500 crore. The issue will open on 8 February and will close on 3 March.
The NCDs have been rated AA+ by ICRA Ratings, and the outlook on long-term rating is stable. There are seven investment options for the NCDs, with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payment with coupon ranging from 7.75% p.a to 8.6% p.a. (Read More)
Rachit Chawla, CEO Finway FSC: It is not certain that the Reserve Bank of India (RBI) will increase the lending rate by 25 basis points. Most importantly, if the inflation is still not easing, and everything is getting expensive, the central bank will have to bring in hikes on the repo rates to maintain financial stability. It is a hands down fact that with the hike in the repo rates, the non-banking financial companies (NBFCs) will also have to increase their subsequent lending rate and the burden will be on the consumers. It will be challenging to grow the loan book for NBFCs if the lending rate has increased any further, but I think that is a bold measure that the RBI needs to take in terms of controlling inlation.
Mahesh Shukla CEO & Founder PayMe: While retail inflation is slightly softening, for India to navigate through the global economic disruptions by maintaining a steady economy, the Reserve Bank of India (RBI)’s might once again impose a hike in the repo rate; but it is expected to settle for a smaller 25 basis points hike. The central bank has increased the short-term lending rate by 225 basis points to tide over the concerns of inflation can mostly be accredited to the supply chain disruptions caused due to geo-political factors. The hike in the lending rates by RBI will certainly have an impact on the non-banking financial companies (NBFCs) and Fintechs, and might eventually have an impact on the customers, but it should also be noted these are short-term disruptions to ward off bigger financial crises. While the downside of the global economy still continues, the domestic economy is showing an uptick and resilience, mostly because of the strict moves of repo rate hikes taken by the apex financial regulatory body. The RBI is now expected to ease the hike in the repo rate by 25 basis points, viewing gradual financial stability and maintaining a prolonged wait-and-watch approach.
After getting relief from the Government of India (GoI) on AGR dues payment, Vodafone Idea share price has been in an uptrend since morning. Vodafone Idea's share price today opened upside and went on to hit an intraday high of ₹8.55 apiece levels, logging to the tune of 25 per cent rise on Monday morning deals.
According to stock market experts, this Vodafone Idea share rally is completely short-term sentiment as the decision of the company to convert the NPV of the interest related to the deferment of spectrum auction instalments and AGR Dues into equity shares to be issued to the Government of India. They said that the rise is completely speculation as the company's equity share value would balloon by near 50 per cent after this debt conversion into equity shareholding. They also said that the company has been making losses on a continuous basis and hence such steps are short-lived as it won't change health of the company's fundamentals. (Read More)
Leasing activity in industrial and logistics sector grew 8% year-on-year (YoY) to touch 31.6 mn sq ft in 2022 despite global headwinds, a slowdown in e-commerce demand and dissipation of the post-pandemic need to hold additional inventories, according to a report by real estate consultant CBRE.
This is the second-highest leasing activity recorded in the sector after the 2019 peak of 32 mn sq. ft. Total supply in 2022 touched 20.9 mn sq. ft.
Delhi-NCR led the absorption with 7.3 mn sq. ft., followed by Mumbai and Bangalore with 6.1 mn sq. ft and 5.2 mn sq. ft in 2022, respectively. The three cities accounted for almost 60% of the leasing activity during the year. All cities recorded stable or increased annual space take-up except Bangalore and Pune. (Read More)
Agrochemical company India Pesticides (IPL) on Monday posted a 19.39 per cent decline in net profit to ₹34.8 crore for the quarter ended December 2022, against ₹43.17 crore during the previous quarter ended December 2021.
According to a company statement shared with the exchanges on Monday, sales rose 14.53 per cent to ₹217.64 crore in the quarter ended December 2022, against ₹190.03 crore during the previous quarter ended December 2021.
The company said its revenue went up 16 per cent year-on-year (YoY) to ₹2,22.2 crore while its earnings before interest, taxes, depreciation, and amortization (Ebitda) was at ₹51.1 crore in the reviewed quarter.
Anand S Agarwal, Chairman, IPL, said, "Despite the inflationary pressure, our margins saw an improvement on QoQ (quarter-on-quarter) basis due to improved operational efficiencies and cost pass-through. The company performed well with a 16.1 pc YoY revenue growth, driven by higher demand for existing products and new launches."
The company posted a jump of 27.2 per cent YoY in its revenue to ₹697 crore while its Ebitda was at ₹165 crore during the reviewed quarter. (ANI)
The December quarter (Q3FY23) earnings of non-banking gold loan company Manappuram Finance Ltd was dull. For the second consecutive quarter, asset under management (AUM) under its core gold loan business declined, falling 3% sequentially and 9% year-on-year in the quarter.
The company's customer acquisition and gold holdings also reduced on a sequential basis in Q3. High competitive intensity and pricing pressure in its crucial gold loans business continue to play a spoilsport. (Read More)
Adani group, led by Gautam Adani, is looking to prepay its debt of ₹7,000-8,000 crore from its loans against shares (LAS) portfolio to allay fears. The conglomerate aims to reduce its LAS exposure with effect immediately and bring it to zero in 30-45 days, report Economic Times quoting sources. According to the report, the a formal decision may be taken as early as today. (Read More)
M&M Finance shares: After strong Q3FY23 results announcement on Friday last week, M&M Financial Services stocks remained in focus of market bulls as the scrip attracted huge buying interest in early morning deals. M&M Finance share price today opened upside and hit intraday high of ₹267.95 per share on NSE, which turned out its new 52-week high as well. While climbing to its 52-week high, the financial stock logged to the tune 10 per cent rise in Monday morning deals.
On Friday, M&M Financial Services Ltd declared its quarterly results for recently ended December 2022 quarter. Total Income of the financial company increased by 12% to ₹3,353 Crores during the quarter ended December 31, 2022, as against ₹2,986 Crores during the corresponding quarter last year. The Profit After Tax (PAT) stood at ₹664 Crores during the quarter ended December 31, 2022, as against PAT of ₹992 Crores during the corresponding quarter last year. (Read More)
Billionaire Mukesh Ambani's Reliance Industries on Monday showcased a truck that runs on hydrogen, the cleanest known fuel whose tail emissions are only water and oxygen, at the India Energy Week here.
The Ashok Leyland manufactured truck with two large hydrogen cylinders was put up at a hall adjacent to the main venue where Prime Minister Narendra Modi inaugurated the three-day event that is themed around 'Growth, Collaboration, Transition'.
A display near the truck said this was "India's 1st H2ICE technology truck on road."
The truck has "near-zero emissions" when it uses hydrogen as fuel in place of conventional diesel or even recently introduced liquefied natural gas (LNG).
"H2ICE vehicle performance on-par with diesel ICE," it said.
H2 is the formula for hydrogen and ICE stands for internal combustion engine.
India is fast pushing for use of hydrogen, which can be produced by splitting water using electricity. Use of electricity generated from renewable sources such as solar and wind qualifies it to be green hydrogen. (PTI)
Shares of Tata Power surged more than 2% to ₹209 apiece on the BSE in Monday's early deals after its Q3 net profit nearly doubled to ₹1,052 crore while its total income rose to ₹14,402 crore in the quarter from ₹11,018.7 crore in the same quarter a year ago.
“Tata Power Company (TPWR) reported strong results. Note, in 3QFY23, share of profits from associates was INR 10 bn, up 52% YoY, led by coal windfall gains. Consolidated revenue for the quarter was up 30% YoY on account of strong PAF in Mundra, higher sales across DISCOMs, and capacity addition in RE space. We retain BUY recommendation for the stock with a target price of ₹272," said Antique Stock Broking. (Read More)
KPIT Technologies shares have been in an uptrend since theannouncement of Q3FY23 results last week. However, it seems that the stock still has some steam left for an upside swing. KPIT Technologies' share price today opened upside and hit fresh life-time high of ₹819.55 apiece on NSE in early morning deals. However, stock market experts believe that the stock may go up to ₹850 apiece levels in next two to three months as the stock has given sideways channel breakout above ₹760 per share levels. They said that the IT major has given better quarterly results and looks better positioned in comparison to its peers. (Read More)
New Delhi-based Federation of Automobile Dealers Association (FADA) has released vehicle retail data for January 2023. According to it, the total vehicle retail data for January 23 grew by 14% on a year-on-year (YoY) basis. Sales of two-wheeler, three-wheeler, passenger vehicle, tractor as well as commercial vehicles increased by 10%, 59%, 8% and 16%, respectively.
Although there is a YoY rise in sales. But, when compared to the pre-pandemic level of January 20, the overall sale was still down by 8%. For example, the two-wheeler segment showed 10% growth from January 2022. But it fell by 13% when compared to pre-covid level of January, 2020, indicating that rural India is still facing post-pandemic challenges. (Read More)
Pre- Monetary Policy View (Feb 2023) by Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company: Central banks of the world are in admiration of the way RBI has navigated the growth and inflation dynamic. The RBI has the luxury of raising rates or deferring it as inflation is cooling off and growth is stable. The market will be looking forward to the guidance on the borrowing program of FY 24.
The sell-off in India's Adani Group's seven listed companies, where more than $110 billion in market value has already evaporated, continued on Monday as a U.S. short-seller's report critical of the group's finances now led to credit warnings.
Ratings agency Moody's warned on Friday that the group may struggle to raise capital and S&P cut its outlook on two group companies, the latest fallout of Hindenburg Research's Jan. 24 report that questioned the conglomerate's debt levels and use of tax havens.
Shares of Adani Enterprises Ltd sank 9.6% on Monday, taking the group's flagship company's losses to nearly $28 billion since the report.
Adani Transmission Ltd dropped 10%, while Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Power, and Adani Wilmar fell roughly 5%.
Adani Ports and Special Economic Zone was the only stock in green, with a 1.2% rise. (Reuters)
Shah Rukh Khan’s Pathaan seems to be in no mood to pause its victorious journey at the box office as it inching closer to ₹850-crore worldwide collection. Trade analyst Ramesh Bal tweeted the numbers while informing that the early estimates for Pathaan’s all India net second Sunday collection was a “whopping" ₹28 crore. He also mentioned earlier that Pathaan had cleared ₹500-crore gross in India and ₹800 crore globally at the end of the second Sunday. (Read More)
Mahanagar Gas (MAHGL IN) – Avishek Datta – Research Analyst, Prabhudas Lilladher Pvt Ltd: Rating: BUY | CMP: Rs850 | TP: Rs1,103
Q3FY23 Result Update - Strong show, better times ahead
Quick Pointers:
§ Q3 EBIDTA/scm at Rs8.2 despite 57%YoY increase in gas cost.
§ Company has received MSRTC order to convert 600diesel bus to CNG over next one year.
We leave our FY23/24E estimates unchanged. Mahanagar Gas (MAHGL) Q3 results came higher, due to higher than expected margins at Rs8.2/scm vs Rs6.7/scm. MAHGL will benefit from lower gas prices in the near term given 1) implementation of Mr Kirit Parekh committee report which has suggested price cap of USD6.5/mmbtu (USD8.5 currently) for domestic gas used for priority sectors like CGD and fertilizer and 2) drop in spot LNG prices to ~USD20/mmbtu from Q3 average of over USD30. (Spot LNG accounts for ~10% of MAHGL’s gas requirement). MAHGL remains a play on increased gas usage from rising vehicles and PNG penetration. We like the business because of its dominating share in growing markets of Mumbai and its suburbs. Reiterate ‘BUY’ with a TP of Rs1,103 (unchanged).
Shares of One 97 Communications Ltd (Paytm) rose more than 7% on the BSE to ₹563 apiece in Monday's opening deals after the fintech company posted its first-ever quarterly operating profit as a listed firm and the company's losses also narrowed during the third quarter of the current fiscal (Q3 FY23).
Paytm's net loss in the quarter through December narrowed to ₹392 crore as compared to ₹779 crore a year earlier whereas the leading digital payments brand's revenue from operations rose 42% to ₹2,062 crore. (Read More)
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: After the Adani crisis broke out, the market has been on a twin track - crash in Adani stocks and stability in the rest of the market. The banking segment, which also came under pressure on fears of the crisis impacting banks, has recovered. The crisis is unlikely to pose any systemic risk to the Indian banking system. It appears that the Adani crisis’ impact on the market is slowly dying down. Excellent results from ITC and SBI are likely to support the market.
Globally, the surprise element is the robust job numbers in the US which came at 517000 in January. This tight labour market in the US indicates continuing strength in the U.S. economy and the possibility of US recession receding. At the same time the Fed will be forced to remain hawkish for an extended period of time. The US CPI data to be published on 14th February will be keenly watched by the market.
BSE-listed Deep Diamond India shares are one of the multibagger stocks that Dalal Street has produced in the last one year. The small-cap stock with a market cap of ₹118 crore has delivered almost multibagger return in year-to-date (YTD) time. However, for long-term investors, the recent stock split in a 1:10 ratio was like icing on the cake as their shareholding surged 10 times in the stock. Now, Re 1 appreciation in the scrip is ₹10 ascendance in the absolute investment of the stock split beneficiary investors. (Read More)
The Indian rupee was headed lower against the dollar on Monday after a better-than-expected U.S. jobs report prompted investors to bet on more Federal Reserve rate increases.
The 1-month non-deliverable forward suggested that the rupee would open at 82.35-82.40 to the dollar compared with 81.8275 in the previous session.
The dollar index and Treasury yields soared on Friday after the U.S. economy added more than two-and-a-half times the number of jobs than what economists had expected. The unemployment rate declined to a more than 50-tyear low.
The data made it almost certain that the Fed would raise interest rates again at its March meeting, according to CME futures, while the probability of a hike at the May meeting almost doubled. The Fed's terminal rate expectations rose slightly above 5%, according to futures.
The jobs report provided evidence of continued economic expansion in January, Goldman Sachs said in a note. (Reuters)
After a positive surprise in the budget earlier this week, ITC reported a strong quarter with robust all-round performance, as per analysts, with cigarettes business growing by 18% year-on-year (YoY) aided by strong volume recovery. The FMCG major reported a 21% increase in its net profit for the third quarter ended December 2022 to ₹5,031 crore.
“3Y cigarette volume CAGR at 6%+ was a key positive and a benign tax environment should maintain the momentum. FMCG growth was industry-leading, with a positive surprise on margins. EBITDA growth remained strong at >20% as the company continues to recover from the pandemic. We boost EPS by 4-6% and raise our PT to ₹450. Reiterate Buy on ITC shares," said global brokerage Jefferies. (Read More)
STOCK IN FOCUS
Blue Star (CMP 1,358): With the higher earnings growth, better margin profile and improved business visibility over the medium term, we have our BUY rating on BLSTR, with a Target Price of Rs1,685.
Intraday Picks
SBICARD (PREVIOUS CLOSE: 754) BUY
For today’s trade, long position can be initiated in the range of Rs747-
742 for the target of Rs772 with a strict stop loss of Rs733.
ASIANPAINT (PREVIOUS CLOSE: 2,760) BUY
For today’s trade, long position can be initiated in the range of Rs2,755-
2,735 for the target of Rs2,835 with a strict stop loss of Rs2,695.
PFC (PREVIOUS CLOSE: 142) BUY
For today’s trade, long position can be initiated in the range of Rs140-
138 for the target of Rs148 with a strict stop loss of Rs135.
Fuelled by robust travel demand, InterGlobe Aviation on Friday reported a steep rise in profit at ₹1,422.6 crore in the three months ended December 2022.
The parent of the country's largest airline IndiGo had a Profit After Tax (PAT) of ₹129.8 crore in the same period a year ago.
IndiGo's total income jumped to ₹15,410.2 crore in the third quarter of the current fiscal from ₹9,480.1 crore in the year-ago period, according to a release.
Excluding foreign exchange loss, the airline reported a profit of ₹2,009.1 crore in the latest December quarter compared to ₹125.2 crore in the year-ago period.
In a reflection of strong travel demand, the budget carrier ferried 2.23 crore passengers in the third quarter, an increase of nearly 26 per cent compared to the same period a year ago when it stood at 1.78 crore.
The load factor, a measure of seat occupancy, rose to 85.1 per cent in the December quarter as against 79.7 per cent a year ago. (PTI)
Only one stock, which is part of the Adani Group, has been put under the ban for trade on Monday, February 6, 2023 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The stock has been put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Read More)
Adani Transmission, Tata Steel, Easy Trip Planners, LIC Housing Finance, and Muthoot Finance will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Paytm, India’s leading digital payments brand, posted a narrower third-quarter loss after its drive to add customers boosted revenue.
The net loss in the quarter through December shrank to 3.9 billion rupees ($48 million) from 7.8 billion rupees a year earlier, the company said in a statement on Friday. Revenue from operations rose 42% to 20.6 billion rupees, while total costs climbed at a slower pace.
Paytm is growing its product offering to attract more customers, seeking to convince investors of its earnings potential. Its shares have plunged 76% since its high-profile $2.5 billion initial public offering in late 2021, on concerns over mounting losses and intensifying competition from Alphabet Inc.’s Google Pay, Amazon.com Inc.’s Amazon Pay and Walmart Inc.’s PhonePe, and several smaller fintech startups.
In a July interview, Paytm founder Vijay Shekhar Sharma pledged a shift in focus from growth toward profitability.
“We will soon achieve our next milestone of becoming a free cash flow generating company," Sharma said in a letter to shareholders Friday. (Blooomberg)
The three-day deliberations of the Reserve Bank of India's(RBI's) rate-setting panel -Monetary Policy Committee (MPC) meeting of the Reserve Bank of India is set to commence today. The decision will be announced on 8 February. With retail inflation showing signs of softening and the US Fed moderating the pace of increase in its benchmark interest rate, the Reserve Bank is likely to settle for a smaller 25 basis points repo rate hike according to the experts. (Read More)
CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED - Q3 FY23 Result Update
Crompton continues to focus on product innovation (differentiated and premium products), GTM (improved reach) and branding (omni channel branding) as also on cost optimisation (Unnati program, better sourcing, etc) will reap benefits. We believe these initiatives will likely bode well with steady market share gains and margin improvement over the medium term. We have pruned down our estimates and target price accordingly due to the weakness during the quarter but remain positive on the upcoming summer season and improving operating performance along with recovery in B2C demand and shrinking unorganized market. Hence, we maintain our Buy stance with a revised PT of ₹394.
STATE BANK OF INDIA - Q3 FY23 Result Update
State Bank of India (SBIN) has delivered a strong result on operating and assets quality front. Reported gross slippages stood at ₹24bn v/s ₹97bn in the previous quarter. It’s reported GNPA (3.52% v/s 3.91% in 1QFY23) and NNPA (0.8% v/s 1.0% in 1QFY23) holds steady with stable PCR (incl. AUCA) of 92%. Furthermore SMA2 (7bps v/s 6bps) increased marginally. The bank has witnessed better than expected advance growth (21% YoY & 5% QoQ) led by growth across segments and steady deposit base (10.6% YoY & 3.4% QoQ) sequentially with better liquidity position. Moreover the bank has reported highest ever quarterly PAT of ₹132bn (v/s ₹62bn in 1QFY23) on the back of healthy NII (Domestic NIMs: 3.55%) and lower provision (credit cost: 28bps). The 2QFY23 calculated ROA and ROE stood at 1.04% and 17.4% respectively; surpassing the ROE target of 15%. The bank has established total standard asset and contingent provision of ~ ₹298bn (101bps of net advances) as on 2QFY23. With improving operating environment, ample contingent buffer and strong growth outlook, we believe the annual ROE target of 15% is achievable in FY23-24E. Therefore, we recommend BUY with target price of ₹663.
Foreign portfolio investors (FPIs) pulled out ₹28,852 crore from Indian equities in January, making it the worst outflow in the last seven months. This came following a net investment of ₹11,119 crore in December and ₹36,238 crore in November, data showed.
FPI flows are expected to remain volatile going ahead as Indian equities continued their large underperformance compared to global markets, Shrikant Chouhan, Head of Equity Research(Retail), Kotak Securities, said. (Read More)
ITC Ltd on Friday reported a 23.09 per cent increase in consolidated net profit at ₹5,070.09 crore for the third quarter ended December 2022, helped by growth momentum across its operating segments.
The diversified company had posted a net profit of ₹4,118.80 crore during the October-December quarter of the previous fiscal, ITC said in a regulatory filing.
Its revenue from operations was up 3.56 per cent to ₹19,020.65 crore during the quarter under review, as against ₹18,365.80 crore in the corresponding period of the previous fiscal.
"The company sustained its strong growth momentum across all operating segments during the quarter driven by focus on accelerated digital adoption, customer centricity, execution excellence and agility," ITC said in its earnings statement.
Economic activity in India continued to gather momentum with "sequential moderation in commodity inflation" even as core inflation remained elevated.
"Rural demand continued to be relatively subdued while improving sequentially. Consumer sentiments improved during the quarter but remained below pre-pandemic levels," said the Kolkata-headquartered company. (PTI)
One of the leading steel manufacturing companies of India, Tata Steel is likely to witness yet another weak quarter for the period ending December 31, 2022 (Q3FY23). The Tata Group-backed steelmaker's net profit may decline more than half on a quarter-on-quarter basis. The year-on-year drop is likely to be massive. Its European operations are also seen to post EBITDA loss.
Overall, Tata Steel may record a decline across parameters such as revenue, EBITDA, and profit after tax (PAT) during Q3. Steel sales volumes may perform on a mixed note. (Read More)
The country's largest lender SBI on Friday reported a 62 per cent rise in its net profit to ₹15,477 crore for the December 2022 quarter, helped by core income growth and improvement in asset quality.
On a standalone basis, State Bank of India's post-tax profit grew to ₹14,205 crore during the October-December 2022 period from ₹8,432 crore in the year-ago period and ₹13,265 crore in the preceding July-September quarter.
Amid the controversy triggered by a slew of allegations against the Adani Group, the government-owned lender disclosed that its overall exposure to the Gauram Adani-led embattled conglomerate is ₹27,000 crore and it does not see any difficulties in loan repayments.
For the quarter under review, the core net interest income rose 24.05 per cent to ₹38,069 crore on the back of a 0.35 per cent expansion in the net interest margin to 3.50 per cent and 18.61 per cent growth in net advances.
Amid the 'war for deposits' in the system, the bank posted a slower deposit growth at over 8 per cent, and chairman Dinesh Khara said it has already activated multiple measures to push up the number. (PTI)
Vaishali Parekh has recommended three stocks to buy today, here we list out full details in regard to those day trading stocks:
1] Axis Bank: Buy at ₹882, target ₹910, stop loss ₹870;
2] Mahindra & Mahindra (M&M): Buy at ₹1388, target ₹1485, stop loss ₹1370; and
3] Pidilite Industries: Buy at ₹2341, target ₹2395, stop loss ₹2315. (Read More)
Standard Chartered Plc. has stopped accepting bonds of Adani Group firms as collateral on margin loans, ET Now television channel reported, without saying where it got the information.
The lender has asked its private clients to top up their collateral for any shortfall, the report said.
A Standard Chartered India spokesperson declined to comment on the report.
The move follows similar actions by Citigroup Inc.’s wealth arm and Credit Suisse Group AG, as the Adani securities were roiled by allegations of fraud from US-based Hindenburg Research. The Adani group has repeatedly denied the short seller’s allegations. (Read More)
Wall Street stocks declined Friday after a blowout January jobs report raised fresh questions about the outlook for monetary policy as markets digested disappointing earnings.
The United States added 517,000 jobs in January, nearly double the December figure, after a five-month slowdown in hiring, according to the data.
The report also showed unemployment edging down to 3.4%, the lowest level since 1969.
The data calls into question investor assumptions that the Federal Reserve will soon pivot from a policy of aggressively hiking interest rates, an expectation that boosted stocks in January.
"It was a hot number," said Angelo Kourkafas, an investment strategist at Edward Jones, who added that some of the losses may have been due to profit taking.
The Dow Jones Industrial Average ended down 0.4% at 33,926.01.
The broad-based S&P 500 dropped 0.8% to 4,136.48, while the tech-rich Nasdaq Composite Index tumbled 1.6% to 12,006.95.
Stocks were further pressured by a trove of mostly disappointing earnings.
Of the three tech giants that reported Thursday afternoon, both Amazon (-8.4%) and Google parent Alphabet (-3.3%) retreated, while Apple notched a 2.4%t gain. (AFP)
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