Market View 15th February 2023

View on market: Stay Cautious, be with quality business:

Asian markets are primed for a cautious open after a choppy day on Wall Street ended flat as investors balanced hot inflation data with Federal Reserve commentary suggesting US interest rates may soon peak. The U.S. futures edged lower in early Asian trading. The S&P 500 ended Tuesday little changed while the tech-heavy Nasdaq 100, which is more sensitive to higher interest rates, rose 0.7%. Meanwhile, the yield on 10-year Treasuries advanced to 3.74%. Crude prices were trading around $85-mark, while Bitcoin trading below 22,000-level. At 6:01 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.13% at 17,950. Domestic benchmark indices held on to steady gains and advanced in trade on Tuesday after a day of decline on rise in consumer price inflation. Rupee further weakened against a stronger U.S. dollar, declining 3 paisa after losing the strong opening earlier in the day.

Economic Calendar:

• USD : Retail Sales (MoM) (Jan) on 15^th February, 2023
• USD : PPI (MoM) (Jan) on 16^th February, 2023
• INR : Exports (USD) on 15^th February, 2023
• INR : FX Reserves, USD on 17^th February, 2023

Brokerage Radar:

JEFFERIES ON GRASIM: Buy, TP Rs 2000; A large miss in 3Q Ebitda (48% YoY decline); Chemicals Ebitda dipped 8% YoY ; VSF Ebitda slid 84% YoY led by weak demand/price & cost pressure. Progress is on track for keenly watched paints segment; launch in 4QFY24

CITI ON BHARAT FORGE: Sell, TP Rs 690; 3Q ahead of est., supported by fx revaluation gains; Marginal revenue beat reflected slightly better export revenue; Overseas subsidiaries continued to disappoint as losses expanded QoQ

NOMURA ON SIEMENS: Neutral, TP Rs 3008; Execution inline & order inflows a modest beat; EBITDA margin at multiqtr high driven by exceptionally high digital industries (DI) EBIT margins

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

LT Foods: The Competition Commission of India approved acquisition of certain equity share capital of LT Foods Limited by Riyadh-based SALIC International Investment Corporation.

Reliance Industries: The Ahmedabad bench of NCLT approved the resolution plan jointly submitted by Reliance Industries and Assets Care & Reconstruction Enterprise for Sintex Industries.

Adani Enterprises: Repaid commercial paper worth Rs 15 crore, due on Feb. 14, in full.

Vodafone Idea: Appointed Murthy GVAS as interim chief financial officer, effective Feb. 15.

Biocon: Entered into an agreement with Kotak Strategic Situations Fund for a structured funding up to Rs 1,200 crore.

ONGC: Recorded a 26% YoY growth in standalone profit at Rs 11,045 crore for quarter ended December FY23. Revenue for the quarter at Rs 38,583.3 crore increased by 35.5% over a year-ago period, with crude oil price realisation growing 26%. The board members have declared second interim dividend of Rs 4 per share.

Prestige Estates Projects: Recorded a massive 47.6% YoY growth in consolidated profit at Rs 127.8 crore for quarter ended December FY23, supported by healthy topline and operating income. Revenue from operations grew significantly by 74.5% YoY to Rs 2,317 crore for the quarter. On the operating front, EBITDA jumped 57.5% YoY to Rs 574.2 crore in Q3FY23, but margin fell by 268 bps YoY to 24.78%.

Apollo Hospitals Enterprise: Registered a 33.3% YoY decline in consolidated profit at Rs 162.3 crore for third quarter of FY23, impacted by weak operating performance. The higher purchase of stock-in-trade and employee expenses impacted operating numbers. Revenue for the quarter at Rs 4,264 crore increased by 17.2% over a year-ago period. On the operating front, EBITDA fell 14% YoY to Rs 505.35 crore with margin down by 428 bps for the quarter. The board declared an interim dividend of Rs 6 per share.

 Source: Moneycontrol, Bloomberg Quint, Investing

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL