Market-View-Feature-Image

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

Asian stocks climbed early Friday after technology companies led a Wall Street rebound on economic optimism and easing concern about the possibility of reduced U.S. stimulus. Shares rose in Japan, South Korea and Australia. A drop in U.S. initial jobless claims put the focus back on the economic recovery and away from fears that price pressures imperil loose financial conditions. Oil trimmed a drop but remains around the lowest in nearly a month. Traders were assessing the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports.

The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.8% to 15,062.50 as of 7:15 a.m.

Key Data/ Action, Result, and Board meeting to watch

Major economic Data:

  • INR: Deposit Growth YoY MAY on 21st May, 2021
  • INR: Bank Loan Growth YoY MAY on 21st May, 2021
  • USD: Existing Home Sales (Apr) on 21st May, 2021

International Markets:

U.S & Europe

Particulars    20th May. Chg Chg(%)
Nasdaq 13,535.74 236 1.77
Dow 34084.15 188.11 0.55
FTSE 7,019.79 69.59 1
CAC 6,343.58 81.03 1.29
DAX 15,370.26 256.7 1.7
Dow Fut.* 34,055.00 25 0.07

Asian markets:

Particulars    21st May. Chg Chg(%)
SGX Nifty 14,992.00 54 0.36
Nikkei 28,222.94 124.69 0.44
Straits Times 3,107.51 -2.3 -0.07
Hang Seng 28,337.23 -113.06 -0.4
Shanghai 3,487.48 -19.46 -0.55

ADR Watch:

Particulars       20th May. Chg Chg(%)
Dr Reddy 72.56 0.36 0.5
HDFC Bank 73.39 -0.16 -0.22
ICICI Bank 17.22 -0.02 -0.12
Infosys 18.65 0.21 1.14
Tata Motor 21.17 0.32 1.53
Wipro 7.56 0.09 1.2

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR        73.10 -0.09
Brent 64.92    -0.31
Gold 1871.15 -0.57
Silver 27.70 -1.29

FIIs & DII

Particulars   20th May.      19th May.
FIIs 71.04       -697.75
DIIs -876.0    -852.52

Earnings  to Watch:

Nifty Earnings: Hindalco Industries, JSW Steel, SBI, Shree Cement,

Non-Nifty Earnings: Aarti Surfactants, Anuh Pharma, Birlasoft, CCL Products (India), Container

Corporation of India, Crompton Greaves Consumer Electricals, DCW, Dhanuka Agritech, Dharamsi Morarji Chemical Co., Elgi Equipments, ESAB India, Godrej Industries, Dr. Lal PathLabs, Seacoast Shipping Services, Shoppers Stop, South Indian Bank, United Spirits

Results:

HPCL Q4FY21 (Standalone, QoQ) Revenues up 9% at Rs 74,843.42 crore Vs Rs 68,659.21 crore (Bloomberg estimate: Rs 82,441 crore) Net profit up 28.2% at Rs 3,017.96 crore Vs Rs 2,354.64 crore (estimate: Rs 1,498 crore) Ebitda up 41.3% at Rs Rs 4,666.38 crore Vs Rs 3,301.52 crore (estimate: Rs 2,566 crore) Ebitda margin at 6.2% Vs 4.8% (estimate: 3.1%) Recommended a final dividend of Rs 22.75 per share

Torrent Power Q4FY21 (Consolidated, QoQ) Revenue up 4% at Rs 3,084.13 crore Vs Rs 2,952.75 crore Net profit up 24% at Rs 396.93 crore Vs Rs 320.50 crore Ebitda up 5% at Rs 914.45 crore Vs Rs 870.28 crore Ebitda margin at 29.7% Vs 29.5% Recommended a final dividend of Rs 5.50 per share Approved issuance of NCDs up to Rs 2,000 crore

Havells India Q4FY21 (Standalone, QoQ) Revenue up 5% at Rs 3,331.19 crore Vs Rs 3,165.85 crore (Bloomberg estimate: Rs 3,122.4 crore) Net profit down 13% at Rs 302.27 crore Vs Rs 349.13 crore (estimate: Rs 301.2 crore) Ebitda at Rs 505.65 crore Vs Rs 508.07 crore (estimate: Rs 464.4 crore) Ebitda margin at 15.2% Vs 16% (estimate: 14.87%) Recommend a final dividend of Rs 3.50 per share for FY21

Brokerage Radar:

CLSA on Zee Entertainment:

Maintain Buy at the Target Price of 306. Q4 Ahead of Estimates and Ad Revenue up 9% YoY Co Sees Rapid Recovery in Ad Revenue if Lockdown Not Extended Balance Sheet Cash has increased to Rs. 1860 Cr from Rs.1000 Cr. In FY20 Risk Reward Attractive at Current Valuation

JP Morgan on HPCL:

Maintain Overweight at the Target Price of 330 Reported A Large Beat Driven by Inventory Gains See a Sharp Improvement in Underlying Operating Performance Increase FY22- 23 EPS Estimates by 14% & 8%

Jefferies on HPCL:

Maintain Buy at the Target Price of 370 Reported Significant EBITDA Beat on Much Higher Inventory Gains in Refining & Marketing.

News Update:

L&T:

Transferred its digital transformation business undertaking, incubated and conducted as L&T-NxT to Mindtree, a listed a subsidiary of the company, for Rs 198 crore. The sale is expected to be completed by July 31, subject to satisfaction of conditions precedent indentified under the business transfer agreement.

Apollo Tyres:

To resume operations at Perambra plant in Kerala from today. The company had suspended operations at the plant pursuant to directives issued by the District Government Authority.

City Union Bank:

RBI has imposed a penalty of Rs 1 crore on the bank for non-compliance with certain provisions of the directions contained in RBI (Lending to MSME Sector) Directions 2017 and the circulars on Educational Loan Scheme and Credit Flow to Agriculture.

Cipla:

The company’s Abbreviated New Drug Application for Dolutegravir Sodium has been approved by FDA.

Source: Moneycontrol, Livemint,, Bloomberg, Investing, Business Standard

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 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, advisory 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 Advisory 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 Advisory or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL Advisory 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 Advisory 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 Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL Advisory or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL Advisory 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 Advisory 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 Advisory 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 Advisory 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 Advisory
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 Advisory or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL Advisory has never been engaged in market making activity for the subject company;
(6) EWL Advisory shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.

.