Market View 15th April 2024

View on market: Volatility Prevails, Market is searching for better value

Early trading on Monday saw a decline in markets throughout the Asia-Pacific area due to a risk-off attitude as geopolitical tension increased following Iran’s strike on Israel over the weekend. As of 06:28 a.m., the Nikkei 225 was 1.65% lower and the KOSPI was 1.06% lower. Investors move their money from risky assets like risky assets like gold, US Treasuries, and the currency to safe haven assets like these in the face of hazards like geopolitical wars. A spike in geopolitical risks rocked the world of finance, sending U.S. stocks down and causing investors to flee to the safest havens of gold and the dollar, as well as bonds. Similar to Friday, the S&P 500 index and Nasdaq Composite had declines of 1.46% and 1.62%, respectively.

Economic Calendar:

• USD : Retail Sales (MoM) (Mar) on 15^th April, 2024
• USD : Building Permits (Mar) on 16^th April, 2024
• INR : WPI Inflation (YoY) (Mar) on 15^th April, 2024
• INR : Trade Balance on 15^th April, 2024

Brokerage Radar:

JEFFERIES ON TCS: Hold, TP Rs 4030; 4Q beat estimates, but demand pressures persist. Despite strong deal bookings, management commentary was cautious. Continued headcount decline & sharp reduction in subcontractors do not offer comfort on growth.

MS ON EXIDE: OW, TP raised to Rs485 from Rs373

Share price could rise significantly over next 10 yrs, as it could become a leading player in battery cell localisation. Govt. support for “Made in India” EVs, strong auto & industrial customer tie-ups, tech tie-ups, all in its favor; Addressable TAM for Exide could rise sharply, as est. 150GWh/US $13bn TAM by 2030 for India’s lithium battery segment; Hyundai/Kia contract validates capabilities; Likely a multi-year contract

CLSA ON VEDANTA: Upgrade to Buy, TP Raised to Rs 390 from Rs 260; Co guided for group Ebitda to rise from US$5bn (VEDL: US$4.7bn) to US$6bn/US$7.5bn by FY25/27. While debt at parent Vedanta Resources (VRL) has now declined meaningfully, leverage at VEDL has increased

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Power Grid Corp: The company will consider raising up to Rs 12,000 crore via NCDs on a private placement basis in a board meeting on April 17.

Patanjali Foods: The company said segmental volume in Q4 experienced mid-single-digit growth (YoY) and revenue from the edible oil segment in Q4 showed modest single-digit growth compared to the previous quarter.

Reliance Power: The company has transferred its 45 MW wind power project located in Maharashtra to JSW Renewable Energy for a consideration of Rs 132.39 crore.

Ami Organics: The company approved the raising of funds up to Rs 500 crore through QIP.

Engineers India: The company signed an MoU with Detect Technologies for AI-based monitoring of construction sites.

ISMT: The company received two orders worth Rs 343.7 crore from ONDC for the supply of casing pipes.

Zuari Industries: NCLT gave the nod to merge Zuari Sugar and Power with the company.

Bharti Hexacom: Sanjeev Kumar and Surajit Mandol resigned from the board effective today.

Granules: U.S. FDA inspected at Andhra Pradesh facility between April 8-12 and ended with zero observations.

Rail Vikas Nigam: The company received a letter of acceptance for works in connection with new line project of Araria – Galgalia of N.F. Railway. The project cost is Rs 95 crore.

Zaggle Prepaid: The company signed an agreement with Eversub India to provide employee expense & benefits management platform Zaggle Save. 

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)

Kiran Tahlani, Elite Wealth Limited, kirantahlani@elitestock.com

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 e-mailing 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
2. 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

Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL has never been engaged in market making activity for the subject company;
(6) EWL shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.