View on market: Stay Cautious, be with quality business:
Asian stocks on Tuesday rose, aided by spillover effects from the technology-led rally in the U.S. spurred by dip buyers. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose nearly 1% to 17,517.50 as of 6:20 a.m. Shares advanced in Japan and Australia. Several Asian markets including China and South Korea are shut for the Lunar New Year holiday. U.S. futures fell after S&P 500 and Nasdaq 100 logged the best two-day jump since April and November 2020, respectively. Elsewhere, oil extended a climb having posted its biggest January gain in at least 30 years. Bitcoin traded in the vicinity of $38,300. Finance Minister Nirmala Sitharaman will present the federal budget in parliament at 11 a.m.
Economic Calendar:
- INR: GDP Annual on 31st January, 2022.
- INR: Trade Balance on 2nd February 2022.
- USD: OPEC Monthly Report on 2nd February, 2022.
- USD: Manufacturing PMI on 1st February, 2022.
Earnings: Adani Ports And Special Economic Zone Tech Mahindra Procter & Gamble Hygiene & Health Care Cholamandalam Investment and Finance Company Poonawalla Fincorp Sona BLW Precision Forgings Kansai Nerolac Paints Laxmi Organic Industries Elecon Engineering Co Gujarat Ambuja Exports Prism Johnson Cantabil Retail India Goodyear India IFB Industries Indian Hotels Co Indoco Remedies Jubilant Ingrevia Mangalore Chemicals & Fertilizers TTK Prestige VIP Industries Neuland Laboratories Oriental Carbon & Chemicals Sutlej Textiles & Industries Triveni Turbine
Results:
Tata Motors: Q3FY22 (Consolidated, YoY) Revenue down 5% at Rs 72,229.29 crore Vs Rs 75,653.79 crore Net loss of Rs 1,516.14 crore Vs Net profit of Rs 2,906.45 crore Ebitda down 42% at Rs 7,078 crore Vs Rs 12,132.7 crore Margin at 9.8% Vs 16%.
Hindustan Petroleum Corporation Ltd: Q3FY22 Revenues up 40.7% at Rs 96,602.37 crore Vs Rs 68,659.21 crore Net profit down 63.1% at Rs 868.86 crore Vs Rs 2,354.64 crore Ebitda down 43.3% at Rs 1,870.72 crore Vs Rs 3,301.52 crore Margin at 1.9% Vs 4.8%.
Indian Oil Corporation Ltd: Q3FY22 Revenues up 57% at Rs 1,66,788.16 crore Vs Rs 1,06,202.27 crore Net profit up 19.2% at Rs 5,860.8 crore Vs Rs 4,916.59 crore Ebitda up 2.6% at Rs 9,862.11 crore Vs Rs 9,613.7 crore Margin at 5.9% Vs 9.1%
DLF: Q3FY22 (Consolidated, YoY) Revenue at Rs 1,549.70 crore Vs Rs 1,543.03 crore Net profit down 16% at Rs 379.48 crore Vs Rs 451.18 crore Ebitda up 4% at Rs 521.32 crore Vs Rs 499.08 crore Margin at 33.6% Vs 32.3%.
Brokerage Radar:
CLSA ON TATA MOTORS: Review CLSA Sell, TP Rs 408 Consol Ebitda better than expected Domestic (CV)& (PV) biz Ebitda margin disappointed due to higher than-expected commodity costs Believe valuation is expensive.
MORGAN STANLEY ON SUN PHARMA: Overweight, TP raised to Rs 1002 Continues to deliver earnings growth driven by operating leverage & global specialty rollout See more to come B/S being bolstered by high cash conversion M&A premium should become built into valuations.
CITI ON HPCL: Buy. TP Rs 400 One-off Factors in Mkt’g Impact Overall Performance; Refining Ahead 9M standalone EPS stood at Rs32/sh; consol EPS was higher at Rs37/sh boosted by strong performance in Bhatinda refinery Preferred OMC pick
JPM ON BPCL: Overweight, TP Rs 550 Strong operating qtr Consol earnings highlight benefit from BORL consolidation Headline PAT a miss likely bcz of consensus under estimating inventory losses on marketing fuels post excise duty cut Stk performance dependent on privatization
International Markets:
U.S & Europe
| Particulars | 31st Jan | Chg | Chg(%) |
| Nasdaq | 14,239.88 | 469.31 | 3.41 |
| Dow | 35131.86 | 406.39 | 1.17 |
| FTSE | 7,464.37 | -1.7 | -0.02 |
| CAC | 6,999.20 | 33.32 | 0.48 |
| DAX | 15,471.20 | 152.25 | 0.99 |
| Dow Fut.* | 34993.7 | -138.20 | -0.39 |
Asian markets:
| Particulars | 1st Feb | Chg. | Chg(%) |
| SGX Nifty | 17,490.50 | 142 | 0.82 |
| Nikkei | 27,194.66 | 192.68 | 0.71 |
| Straits Times | 3,249.59 | 3.26 | 0.1 |
| Hang Seng | 23,802.26 | 252.18 | 1.07 |
| Shanghai | 3,361.44 | -32.81 | -0.97 |
ADR Watch:
| Particulars | 31st Jan | Chg. | Chg.(%) |
| Dr Reddy | 57.5 | 1.55 | 2.77 |
| HDFC Bank | 68.63 | 3.17 | 4.84 |
| ICICI Bank | 21.73 | 0.71 | 3.38 |
| Infosys | 23.57 | 0.91 | 4.02 |
| Tata Motor | 33.76 | 0.99 | 3.02 |
| Wipro | 7.69 | 0.28 | 3.78 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.61 | -0.57 |
| Brent | 89.41 | 0.17 |
| Gold | 1797.20 | 0.12 |
| Silver | 22.462 | 0.31 |
FIIs & DII
| Particulars | 31st Jan | 28th Jan |
| FIIs | -3624.48 | -5045.34 |
| DIIs | 3648.65 | 3358.67 |
News Update:
Gail: The company commenced India’s first-of-it’s-kind project of mixing hydrogen into natural gas system at Indore, Madhya Pradesh.
BPCL: The company declared second interim dividend of Rs 5 per share.
SBI: The company entered into an agreement with Tata Power Solar Systems for financing solar projects to launch a centralized processing cell – ‘Surya Shakti Cell.’ It will process all the loan applications for Solar Projects (capacity up to 1 MW) sourced from across India, for installation by business entities and households.
Tata Steel Long Products: The company won the bid to acquire a 93.71% equity stake in the Neelachal Ispat Nigam Limited for a total consideration of Rs 12,100 crore.
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