View on market: Stay Cautious, be with quality business:
Stocks and bonds fell in Asia Friday after Treasuries and Wall Street shares sank on a jump in U.S. inflation to a fresh four-decade high. U.S. equity futures, Australian shares and South Korean stocks slid. The tech-heavy Nasdaq 100 led declines as U.S. shares snapped a two-day winning run. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.93% to 17,443 as of 7 a.m. Elsewhere, oil headed for the first weekly loss since mid-December. The dollar climbed. Bitcoin slid below $43,000 amid risk aversion.
Economic Calendar:
- INR: CPI Inflation on 14th February, 2022.
- INR: WPI Inflation on 14th February 2022.
- USD: Federal Budget Balance on 11th February, 2022.
- USD: PPI on 15th February, 2022.
Earnings: Akzo Nobel India Allcargo Logistics Amrutanjan Health Care Anupam Rasayan India Apollo Hospitals Enterprises Arvind Fashions Ashok Leyland Bajaj Hindusthan Sugar Mrs. Bectors Food Specialities Bengal & Assam Company Brookfield India Real Estate Trust REIT Cholamandalam Financial Holdings Citurgia Biochemicals Divi’s Laboratories Everest Kanto Cylinder Fairchem Organics Fine Organic Industries Force Motors Fortis Healthcare Glenmark Pharmaceuticals Globus Spirits Godrej Industries Garden Reach Shipbuildings & Engineers Hemisphere Properties India HLE Glascoat Hindustan Foods Honeywell Automation India Himadri Speciality Chemical Housing & Urban Development Corporation IDFC IFCI India Cements India Glycols Indigo Paints
Results:
Hero MotoCorp: Q3FY22 (Standalone, YoY) Revenue down 19.36% at Rs 7,883.27 crore Vs Rs 9,775.77 crore (BBG estimate: Rs 7803.4 crore) Net profit down 36.73% at Rs 686.13 crore Vs Rs 1,084.47 crore (BBG estimate: Rs 682.5 crore) Ebitda down 32.09% at Rs 960.01 crore Vs Rs 1,413.63 crore Margin at 12.2% Vs 14.5%.
RCF: Q3FY22 (Consolidated, YoY) Revenue up 81% at Rs 3,699.21 crore Vs Rs 2,047.88 crore Net profit up 45% at Rs 143.15 crore Vs Rs 98.70 crore Ebitda up 10% at Rs 223.04 crore Vs Rs 202.72 crore Margin at 6% Vs 9.9%.
Tata Chemicals: Q3FY22 (Consolidated, YoY) Revenue up 21% at Rs 3,141.58 crore Vs Rs 2,606.08 crore Net profit up 93% at Rs 310.33 crore Vs Rs 160.85 crore Ebitda up 16% at Rs 545.14 crore Vs Rs 471.91 crore Margin at 17.4% Vs 18.1%.
Zomato: Q3FY22 (Consolidated, QoQ) Revenue up 9% at Rs 1,112 crore Vs Rs 1,024.2 crore Net loss at Rs 63.20 crore Vs Rs 429.6 crore Ebitda loss at Rs 488.80 crore Vs Rs 535.80 crore Gross order value grew by 1.7% to Rs 5,500 crore Number of orders grew 5% Average order value shrunk by 3%
Brokerage Radar:
JEFFERIES ON TREND: Hold, TP Raised to Rs 1150 vs Rs 1000 Mobility improvement, festive demand & improved customer sentiment drove highest-ever qtry revs Westside crossed Rs10bn rev milestone in 3Q Despite strong topline growth, margins muted.
CITI ON PIRAMAL ENTERPRISE: Buy, TP cut to Rs 3180 from Rs 3310 3Q: EBITDA Margin Recovers; Activating DHFL Infra Key to watch is de-merger of Pharma & Fin Services, can help in unlocking value Tweak earnings by -6%/-1% for FY22/23, largely on slower Pharma rev growth.
MORGAN STANLEY ON ZOMATO: OW, TP Rs 150 Believe a lack of growth in MTU QoQ and a slowdown in GOV (even after adjusting for lower delivery charges) more than offset the positive from lower burn rates QoQ and could limit the stock price in the near term
International Markets:
U.S & Europe
Particulars | 10th Feb | Chg | Chg(%) |
Nasdaq | 14,185.64 | -304.73 | -2.1 |
Dow | 35241.59 | -526.47 | -1.47 |
FTSE | 7,672.40 | 28.98 | 0.38 |
CAC | 7,101.55 | -29.33 | -0.41 |
DAX | 15,490.44 | 8.43 | 0.05 |
Dow Fut.* | 35115.4 | -127.7 | -0.36 |
Asian markets:
Particulars | 11th Feb | Chg. | Chg(%) |
SGX Nifty | 17,415.50 | -190.5 | -1.08 |
Nikkei | 27,696.08 | 116.21 | 0.42 |
Straits Times | 3,434.54 | 6.54 | 0.19 |
Hang Seng | 24,848.77 | -75.58 | -0.3 |
Shanghai | 3,478.71 | -7.2 | -0.21 |
ADR Watch:
Particulars | 10th Feb | Chg. | Chg.(%) |
Dr Reddy | 58.21 | 0.95 | 1.66 |
HDFC Bank | 69.47 | 2.1 | 3.12 |
ICICI Bank | 21.48 | 0.08 | 0.37 |
Infosys | 23.41 | 0.52 | 2.27 |
Tata Motor | 34.03 | 1.04 | 3.15 |
Wipro | 7.65 | 0.11 | 1.46 |
Commodities & Currency:
Particulars | Current Price | Chg(%) |
USD/INR | 74.94 | 0.17 |
Brent | 91.47 | 0.07 |
Gold | 1827.5 | -0.55 |
Silver | 23.150 | -1.58 |
FIIs & DII
Particulars | 10th Feb | 9th Feb |
FIIs | -1732.58 | -892.64 |
DIIs | 2727.23 | 1793.35 |
News Update:
Tata Steel Long Products: The company has approved fund raising from Tata Steel by way of issuance of unlisted Non-Convertible Redeemable Preference shares for Rs 13,300 crore to meet the financial requirements for acquisition of
Neelachal Ispat Bharat Forge: The company has entered into a power purchase agreement and share subscription and shareholders’ agreement with Avaada MHVidarbha to purchase solar power on a single captive user basis. The company will acquire 26% equity stake for Rs 11,37,50,000 in AMHVPL.
Burger King: The company launched its QIP issue on Thursday and approved the floor price of Rs 136.05 per share. The floor price is at a discount of 0.18% to Thursday’s closing price. The fund raising committee of the board will meet on Feb. 15 to determine the issue price.
Source: Moneycontrol, Livemint,, Bloomberg, 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