Market-View-Feature-Image

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

Asian stocks rose early Tuesday as investors mulled corporate earnings as well as the prospect of tightening monetary policy to restrain inflation. Treasury yields and the dollar edged down. Shares had modest gains in Japan, Australia and South Korea, while U.S. futures fluctuated after the S&P 500 and Nasdaq 100 gained overnight, aided by optimism about corporate earnings. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.44% to 18,567.50 as of 8:05 a.m.

Economic Calender:

  • INR:  M3 Money Supply on 20th October, 2021.
  • INR:  Bank Loan & Deposit Growth on 22th October, 2021.
  • USD: Building Permits (MoM) (Sep) on 19th October, 2021.
  • USD: Crude Oil Inventories on 20th October, 2021.

Earnings: Nestle India, Hindustan Unilever, ICICI Prudential Life Insurance Company, L&T Technology Services, ICICI Securities, ACC, DCM Shriram, Tata Steel Bsl, Heidelbergcement India, Jubilant Ingrevia, JSW Ispat Special Products, Mastek, Navin Fluorine International, Nelco, Network18 Media & Investments, Rallis India, Tv18 Broadcast.

Results:

L&T Infotech Q2FY22 (Consolidated, QoQ): Revenue up 9% at Rs 3,767 crore Vs Rs 3,462.50 crore $ Revenue up 8.3% at $509 million Constant currency revenue growth of 8.9% Net profit up 11% at Rs 551.70 crore Vs Rs 496.80 crore Ebit up 14% at Rs 648.20 crore Vs Rs 568.2 crore Margin at 17.21% Vs 16.41% Declared an interim dividend of Rs 15 per share for FY22.

Route Mobile Q2FY22 (Consolidated, YoY): Revenue up 25% at Rs 435.67 crore Vs Rs 349.27 crore Net profit up 28% at Rs 42.17 crore Vs Rs 32.87 crore Ebitda up 34% at Rs 56 crore Vs Rs 41.81 crore Margin at 12.85% Vs 11.97%.

Brokerage Radar:

CLSA ON ULTRATECH: Maintain outperform at the price of Rs 7395 for the target price of Rs 8300. Q2 EBITDA largely in-line: company confident of passing on cost inflation. Remain positive on its demand outlook. Ability to implement price hikes to determine stock trajectory in near term.

CITI ON L&T INFOTECH: Maintain underweight at the price of Rs 5905 for the target price of Rs 5180. Strong Q2, revenue ahead of expectations. Growth broad-based & largely driven by small & mid-sized deals. EBIT margin improved QoQ despite higher attrition & supply- side concerns. Raise FY22/23/FY24 estimates by 5/3/2% and multiple to 35x.

International Markets:

U.S & Europe

Particulars 18th Oct Chg Chg(%)
Nasdaq 15,021.81 124.47 0.84
Dow 35,258.61 -36.15 -0.10
FTSE 7,203.83 -30.20 -0.42
CAC 6,673.10 -54.42 -0.81
DAX 15,474.47 -112.89 -0.72
Dow Fut.* 35,110.00 -23.00 -0.07

Asian markets:

Particulars 19th Oct Chg Chg(%)
SGX Nifty 18,567.50 81.50 0.44
Nikkei 29,213.25 187.79 0.65
Straits Times 3,191.37 17.55 0.55
Hang Seng 25,692.66 282.91 1.11
Shanghai 3,574.49 6.35 0.18

ADR Watch:

Particulars 18thOct Chg Chg(%)
Dr Reddy 64.65 -1.36 -2.06
HDFC Bank 76.30 0.54 0.71
ICICI Bank 19.90 0.45 2.31
Infosys 23.78 0.40 1.71
Tata Motor 33.79 -0.40 -1.17
Wipro 9.88 -0.03 -0.30

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 75.34 0.00
Brent 84.19 -0.17
Gold 1772.40 0.38
Silver 23.422 0.68

FIIs & DII

Particulars 18th Oct 14th Oct
FIIs 512.44 1681.60
DIIs -1703.87 -1750.59

News Update:

Edelweiss Financial Services: Edelweiss Group has announced divestment of its majority stake in Edelweiss Gallagher Insurance Brokers. IRDAI has approved the divestment. The business will transition to the Gallagher brand in the coming months. Edelweiss Group to focus on developing its life and non-life insurance businesses.

State Bank of India: RBI has imposed Rs 1 crore penalty on the bank. Penalty due to non-compliance with directions on fraud classification and reporting. Bank was found to have delayed reporting of fraud in a specific account. Further, the bank’s committee has accorded approval to allot 6,000 Basel lll compliant fully paid-up debt instruments in the nature of debentures qualifying as AT 1 Capital of the bank of face value of Rs 1 crore each, bearing a coupon of 7.72% per annum, aggregating to Rs 6,000 crore to bond subscribers.

Dixon Technologies (India): Padget Electronics, a subsidiary of the company, and Orbic, a U.S. based smartphone manufacturer have entered into an agreement for manufacturing of smartphones at Padget’s manufacturing facility situated at Noida.

Indian Energy Exchange: Board to meet on October 21 to consider the proposal of bonus issue of equity shares.

TTK Prestige: To consider sub-division of equity shares of FV of Rs 10 each on October 27.

HG Infra Engineering: The company has been declared as the L-1 bidder by the National Highways Authority of India for two hybrid annuity model projects.

Reliance/Future Retail: The NCLT has allowed the creditors and shareholders of Reliance Retail Ventures to hold meetings to seek approval for the company’s proposed ₹24,700 crore deal with the Future Group.

Telecom companies: The telecom department, in consultation with the finance ministry, has written to telecom companies, sharing the contours of the equity conversion formula.  The letter gives a 10-day deadline to reply on whether they will be opting for the AGR (spectrum) dues moratorium and whether they will be opting for the equity conversion scheme.

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

 

 

FILING COMPLAINTS ON SCORES - EASY & QUICK

a. Register on SCORES portal

b. Mandatory details for filing complaints on SCORES:
i. Name, PAN, Address, Mobile Number, E-mail ID

c. Benefits:
i. Effective communication
ii. Speedy redressal of the grievances

SEBI : https://www.scores.gov.in/scores/complaintRegister.html