Market View 12th May 2022

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

Asian stocks declined on Thursday after U.S.’s inflation surged above expectations at 8.3%, strengthening the case for aggressive monetary tightening. Shares fell in Japan, Australia and South Korea. U.S. futures slid after the S&P 500 fell to a 15-month low and the Nasdaq 100 shed over 3%.The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell over 1% to 15,991 points as of 6:40 a.m. Russia’s war in Ukraine and China’s Covid lockdowns are adding to supply shortages and soaring costs. Nymex crude halted slide to $105 per barrel. Elsewhere Bitcoin tumbled below $30,000 mark.

Economic Calendar:

• INR: Trade balance on 13^thMay
• INR: CPI Inflation on 12^th May 2022.
• USD: Industrial Production 18^th May, 2022.
• USD: Retail Inventory 18^th May, 2022.

Earnings Today: L&T, Tata Motors, Siemens, Tube Investments, Apollo Tyres, CreditAccess Grameen, Anupam Rasayan, Caplin Point, Greaves Cotton, Honeywell Automation, Mindspace Business Parks REIT, Gujarat State Petronet, Orchid Pharma, RBL Bank, Ujjivan Small Finance Bank, Welspun Enterprises

Q4Fy22 Earning:

Punjab National Bank Q4 FY22 (Standalone) Net interest income up 5% at Rs 7,304.13 crore Net profit fell 66% at Rs 201.57 crore GNPA 11.78% Vs 12.88% (QoQ) NNPA 4.8% Vs 4.9% (QoQ)
Indian Bank Q4 FY22 (Standalone) Net interest income up 28% at Rs 4,255.16 crore Net profit fell 42% at Rs 984.25 crore GNPA 8.47% Vs 9.13% (QoQ) NNPA 2.27% Vs 2.72% (QoQ) Recommended dividend of Rs 6.5 per share of face value of Rs 10 each
Cholamandalam Financial Q4 FY22 (Consolidated, QoQ) Revenue up 0.43% at Rs 3742.57 crore EBIT up 12.32% at Rs 1,985.52 crore EBIT margin at 53.05% vs 47.44% Net profit up 26.36% at Rs 686.73 crore Recommended dividend of Rs 0.55 per share
Birla Corporation Q4 FY22 (Consolidated, YoY) Revenue up 6.17% at Rs 2,264.21 crore EBITDA fell 29.5% at Rs 276.68 crore EBITDA margin 12.22% vs 18.38% Net profit fell 55.45% at Rs 111.08 crore Recommended dividend of Rs 10 per share
SKF India Q4 FY22 (Consolidated, YoY) Revenue up 22.6% at Rs 1039.01 crore EBITDA up 7.55% at Rs 159.44 crore EBITDA margin 15.35% vs 17.5% Net profit up 4.45% at Rs 109.48 crore Recommended final dividend of Rs 14.5 per share

Brokerage Radar:

MORGAN STANLEY ON PNB: EW, TP Rs 41 PAT 81% below MSe despite a big beat on costs (21% below MSe) This was owing to muted rev & a sharp increase in credit costs CET 1 ratio progression was weak, & declined 100bps QoQ Stay EW on valuation (0.3x F23 book).

CLSA ONHINDALCO: Upgrade to buy, TP cut to Rs 580 from Rs 695 Novelis: 1-offs drive miss Guidance: back to $500/t+ profitability Greenfield facility to generate $800/t+ profitability & debt to remain stable Est is pricing-in aluminium LME below $2000 (spot: $2800

International Markets:

U.S. & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

Adani Enterprises: The company has incorporated a wholly owned subsidiary Kutch Fertilizers to carry out business of manufacturing and trading of fertilizers of all kinds and other allied items required for agricultural.

Hindalco Industries: The company’s wholly owned subsidiary Novelis Inc. will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA. The facility will have an initial 600 kilotonnes of finished aluminum goods capacity per year.

Macrotech Developers: The company announced partnership with Bain Capital and Ivanhoé Cambridge to develop a green digital infra platform. The platform will jointly invest $1 billion to create 30 million square feet of operating assets in India. Each of the partners have 33% equity interest in the entity.

Power Grid: The company has acquired Khetri-Narela Transmission for Rs 22.5 crore.

KRBL: The company has been granted relief for income tax demand of Rs 97.88 crore and dismissed all the appeals for income tax demand of Rs. 1,170.36 crores.

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