View on market: Stay Cautious, be with quality business:
Stocks and bonds fell Friday after Federal Reserve Chair Jerome Powell hinted a two or more half percentage-point interest-rate increases in the upcoming policy meeting. Powell said a 50bps rake hike will be on the table for the May Bank at an IMF-hosted panel on Thursday. A possible three consecutive half-point Fed interest-rate hikes would represent the sharpest tightening in 40 years. Shares declined in Japan, Australia and South Korea, while U.S. futures fell, after Wall Street logged losses, dragged by energy and technology stocks. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell over 1% to 17,203.50 points as of 8:05 a.m. The dollar held a rally and Nymex crude remained above $103 a barrel. Bitcoin hovered around $40,500.
Economic Calendar:
- INR: RBI MPC Meeting Minutes on 22nd April 2022.
- INR: Bank Loan Growth on 22nd April 2022.
- USD: Jobless claims 22nd April, 2022.
- USD: US Lending Index 22nd April, 2022.
Earnings: Hindustan Zinc, MMTC, Tata Metaliks, Tejas Networks
Q4Fy22 Earning:
HCL Technologies: Q4 FY22 (Consolidated, QoQ) Revenue up 1.19% at Rs 22,597 crore Vs Rs 22,331 crore (Bloomberg Estimate: Rs 22,669.9 crore) EBIT fell Rs 4.42% at Rs 4,069 crore Vs Rs 4,257 crore (Bloomberg Estimate: Rs 4,128.7 crore) EBIT margin 18% Vs 19.1% (Bloomberg Estimate: 18.21%) Net profit up 4.39% at Rs 3,593 crore Vs Rs 3,442 crore (Bloomberg Estimate: 3,354.3 crore) Approved dividend of Rs 18 per share
ICICI Lombard: Q4 FY22 (Consolidated, YoY) Revenue up 33% at Rs 4,636 crore Vs Rs 3,489 crore Net premiums up 27% at Rs 3,318 crore Vs Rs 2,616 crore EBITDA up 29% at Rs 1,010 crore Vs Rs 782 crore EBITDA margin at 21.8% Vs 22.4% Solvency ratio at 2.46 Vs 2.9 Proposed dividend of Rs 5 per share of face value of Rs 10.
Tata Communications: Q4 FY22 (Consolidated, QoQ) Revenue up 4.8% at Rs 1,725.28 crore Vs Rs 1,657.7 crore EBITDA fell 12.3% at Rs 443.58 crore Vs Rs 505.74 crore EBITDA margin 25.71% Vs 30.51% Net profit up 58% at Rs 356.5 crore Vs Rs 225.51 crore Approved final dividend of Rs 20.7 per share.
L&T Technology Services: Q4 FY22 (Consolidated, QoQ) Revenue up 4.07% at Rs 1,756.1 crore Vs Rs 1,687.5 crore EBIT up 4.13% at Rs 327.4 crore Vs Rs 314.4 crore EBIT Margin 18.64% Vs 18.63% Net profit up 5.31% at Rs 262 crore Vs Rs 248.8 crore Approved final dividend of Rs 15.
Brokerage Radar:
MORGAN STANLEY ON NESTLE: UW, TP Rs 15712 1Q in-line with est, but below consensus. Weak growth in the largest category, margin pressure from inflation headwinds and likely mix deterioration (higher rural focus), & relative valuation keep us UW.
MORGAN STANLEY ON ICICI LOMBARD: Review MS OW, TP Rs 1700 Profits missed forecast by 9% on both underwriting results & investment gains. Loss ratios improved across most product segments Management sounded confident of strong top-line growth in F2023.
NOMURA ON HCL TECH: Nomura Buy, TP Rs 1370 Product biz drags performance in 4QFY22 FY23F revenue guidance reasonable, margin disappoints Strong growth in services offset by weakness in products & platforms Margin miss was led again by product & platform.
International Markets:
U.S. & Europe:
| Particulars | 21st Apr | Chg | Chg(%) |
| Nasdaq | 13,174.65 | -278.42 | -2.07 |
| Dow | 34792.76 | -368.03 | -1.05 |
| FTSE | 7,627.95 | -1.27 | -0.02 |
| CAC | 6,715.10 | 90.19 | 1.36 |
| DAX | 14,502.41 | 140.38 | 0.98 |
| Dow Fut.* | 34650.1 | 144 | -0.42 |
Asian markets:
| Particulars | 22nd Apr | Chg. | Chg(%) |
| SGX Nifty | 17,210.00 | -197 | -1.13 |
| Nikkei | 27,033.33 | -519.73 | -1.89 |
| Straits Times | 3,343.17 | -5.29 | -0.16 |
| Hang Seng | 20,464.10 | -218.12 | -1.05 |
| Shanghai | 3,076.51 | -3.3 | -0.11 |
ADR Watch:
| Particulars | 21stApr | Chg. | Chg.(%) |
| Dr Reddy | 55.72 | -1.05 | -1.85 |
| HDFC Bank | 55.44 | -0.41 | -0.73 |
| ICICI Bank | 19.64 | -0.07 | -0.36 |
| Infosys | 20.68 | 0.11 | 0.53 |
| Tata Motor | 28.91 | 0.08 | 0.28 |
| Wipro | 6.87 | -0.12 | -1.72 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 76.15 | -0.09 |
| Brent | 107.22 | -1.11 |
| Gold | 1949.65 | 0.07 |
| Silver | 24.543 | -0.32 |
FIIs & DII:
| Particulars | 21st Apr | 20th Apr |
| FIIs | -713.69 | -3009.26 |
| DIIs | 2823.43 | 2645.82 |
News Update
Cyient Q4 FY22 (Consolidated, QoQ) Revenue fell 0.19% at Rs 1,181.2 crore Vs Rs 1,183.4 crore EBIT Margin up 3.86% at Rs 169.5 crore Vs Rs 163.2 crore EBIT Margin 14.35% Vs 13.79% Net profit up 17% at Rs 154.2 crore Vs Rs 131.8 crore.
Jindal Steel and Power: The company said that its offices in in Delhi and Gurugram were visited by officials from Enforcement Directorate for seeking business related information.
JSW Energy: The company’s subsidiary JSW Neo Energy has signed a memorandum of understanding with Government of Telangana for setting up 1,500 MW capacity of Hydro Pumped Storage Project.
RailTel: The company has received a work order from National Informatics Centre Services Incorporated in relation to assignment of work of immigration visa and foreigner registration and tracking at a total cost of Rs. 29.75 crore.
TVS Motor: The company will invest an addition £100 million in Norton Motorcycle, which was acquired in 2020.
L&T Technology Services: The company was awarded over $100 million electric air mobility deal from Jaunt Air Mobility.
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