Market View 19th May 2022

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

Asian equities and U.S. futures fell after fears of an economic downturn spurred a flight to havens in the Wall Street. Equities declined in Japan, Australia and South Korea after S&P 500 lost 4% — the steepest one-day fall in almost two years. Nasdaq 100 index shed over 5%. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell nearly 2% to 15,930 points as of 6:45 am. Oil fell to less than $109 a barrel on concerns about demand. Bitcoin lost nearly 5% to less than $29,000.

Economic Calendar:

• INR: Bank Loan Growth on 20^thMay
• INR: FX Reserve on 20^th May 2022.
• USD: US oil Count 20^th May, 2022.
• USD: Manufacturing PMI 24^th May, 2022.

Earnings Today: Godrej Consumer Products, Dr. Reddy’s, Gland Pharma, Hindustan Petroleum Corporation, Krishna Institute of Medical Sciences, Endurance Technologies, CONCOR, Chambal Fertilizers and Chemicals, Bosch, Ashok Leyland, Alkyl Amines Chemicals, Rossari Biotech, Prince Pipes and Fittings, Man Infraconstruction

Q4Fy22 Earning:

ITC Q4 FY22 (Consolidated, YoY) Revenue up 15% at Rs 17,754.02 crore EBITDA up 15% to Rs 5,599.3 crore EBITDA margins at 31.5% vs 31.6% Net profit up 12% to Rs 4,195.69 crore

Lupin Q4 FY22 (Consolidated, YoY) Revenue up 3% at Rs 3,883 crore Net loss at Rs 518 crore vs net profit of Rs 460 crore EBITDA fell 68% to Rs 228 crore vs Rs 708 crore EBITDA margin at 5.9% vs 18.7% EPS at Rs -11.4 per share vs Rs 10.15

Pidilite Industries Q4 FY22 (Consolidated, YoY) Revenue up 12.15% at Rs 2,507.1 crore EBITDA down 12.96% at Rs 401.08 crore EBITDA margin at 16% vs 20.61% Net profit down 16.93% at Rs 254.35 crore Recommended dividend of Rs 10 per share

Indraprastha Gas Q4 FY22 (Consolidated, YoY) Revenue up 8.66% at Rs 2,649.77 crore EBITDA up 6.57% at Rs 500.46 crore EBITDA margin 18.89% vs 19.26% Net profit up 15% at Rs 430.93 crore

LIC Housing Finance Q4 FY22 (Consolidated, QoQ) Revenue up 5.2% at Rs 5,327.87 crore EBIT up 7.95% at Rs 4,856.57 crore EBIT margin at 91.15% vs 88.83% Net profit up 44.4% at Rs 1,113.68 crore Recommended dividend of Rs 8.5 per share.

Shyam Metalics Q4 FY22 (Consolidated, YoY) Revenue up 21.5% at Rs 2,856.77 crore EBITDA up 5.8% at Rs 663.12 crore EBITDA margin at 23.2% vs 26.6% Net profit up 11.19% at Rs 430.86 crore Recommended final dividend of Rs 2.7 per share Approved fundraising of Rs 3,000 crore

Brokerage Radar:

CLSA ON LIC HOUSING FINANCE: Buy, TP Rs 525 Asset quality recovery continues; home loan growth healthy Core home loan growth healthy; share of LAP/builder loans declining Asset quality improvement in line with peers Upgraded FY23/24 PPOP est by 3-5% & PAT by 8-23%.

JP MORGAN ON PIDILITE: UW, TP Rs 2068 Earnings miss driven by subdued vol & unabated cost inflation Management noted caution over near term amidst sustained COGS inflation & its impact on demand.

MORGAN STANLEY ON ITC: OW, TP raised to Rs 293 from Rs 276 Earnings largely in-line with MSe & consensus Cigarettes & FMCG EBIT ahead of MSe, while hotels & agri biz weaker Strong results & +ve near-term earnings drivers augur well for stock performance

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

InterGlobe Aviation: Chief Executive Officer Ronojoy Dutta to step down on Sept. 30. KLM’s Pieter Elbers to replace him.

Power Grid: The company won bid for Intra State transmission system of Uttar Pradesh.

Adani Enterprises: The company has incorporated a wholly owned subsidiary Adani Health Ventures for its healthcare vertical.

Ruchi Soya: The edible oils maker has approved acquisition of food retail business of Patanjali Ayurved.

UCO Bank: The bank appointed Sujoy Dutta as the Chief Financial Officer

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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