Market View 27th May 2022

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

Stocks in Asia advanced on Friday after a recovery on Wall Street. Japanese, Korean and Australian stocks gained. US futures were steady after S&P 500 rose from its lowest level in more than a year. The Nasdaq 100 added over 2%. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, rose nearly 0.50% to 16,257 points as of 6:50 am. Elsewhere, West Texas Intermediate was at $113.85 a barrel. Bitcoin hovered around $29,000.

Economic Calendar:

• INR: FX Reserve on 27^thMay
• INR: GDP Quartely on 31^st May 2022.
• USD: CB Consumer confidence 31^st May, 2022.
• USD: ADP Non Payroll Job Data 1^st June, 2022.

Earnings Today: GAIL India, Godrej Industries, JSW Steel, Jindal Steel & Power, PB Fintech, United Spirits, TCI Express, Unichem Laboratories, VRL Logistics, Sadbhav Infrastructure Projects, India Cements, Ircon International, Lemon Tree Hotels, GR Infraprojects, Glenmark Pharma, Fine Organics, Akzo Nobel India, Arvind Fashions, Astral, Crompton Greaves Consumer Electrical, BEML, Engineers India

Q4Fy22 Earning:

Hindalco Industries Q4 FY22 (Consolidated, QoQ) Revenue up 10.9% at Rs 55,764 crore Vs Rs 50,272 crore (Bloomberg estimate: Rs 53,387.4 crore) EBITDA down 0.4% to Rs 7,597 crore from Rs 7,624 crore (Bloomberg estimate: Rs 5,898.5 crore) EBITDA margins at 13.6% Vs 15.2% (Bloomberg estimate: 11%) Net profit up 4.8% to Rs 3,851 crore Vs Rs 3,675 crore

Zee Entertainment Q4 FY22 (Consolidated, QoQ) Revenue up 10% at Rs 2322.90 crore Vs Rs 2112.64 crore EBIT up 6% at Rs 439.15 crore Vs Rs 414.56 crore EBIT margin 18.91% Vs 19.62% Net profit fell 39% at Rs 181.93 crore Vs Rs 298.73 crore

Berger Paints Q4 FY22 (Consolidated, YoY) Revenue up 8% at Rs 2,187.51 crore Vs Rs 2,026.09 crore EBITDA up 3.2% at Rs 346.44 crore Vs Rs 335.57 crore EBITDA margin 15.84% Vs 16.56% Net profit up 5.6% at Rs 220.29 crore Vs Rs 208.60 crore

Piramal Enterprises Q4 FY22 (Consolidated, YoY) Revenue up 16% at Rs 573.64 crore Vs Rs 493.59 crore EBITDA fell 21% at Rs 232.35 crore Vs Rs 294.50 crore EBITDA margin 40.5% Vs 59.6% Net profit up 302% at Rs 316.23 crore Vs Rs 78.71 crore Recommended final dividend of Rs 33 per share of face value of Rs 2 each

NMDC Q4 FY22 (Consolidated, YoY) Revenue fell 2% at Rs 6,702.24 crore Vs Rs 6,847.57 crore EBITDA fell 37% at Rs 2,682.57 crore Vs Rs 4,240.27 crore EBITDA margin 40% Vs 62% Net profit fell 36% at Rs 1,812.98 crore Vs Rs 2,835.54 crore

Bharat Dynamics Q4 FY22 (Consolidated, YoY) Revenue up 21.5% at Rs 1,381.07 crore Vs Rs 1,136.86 crore EBITDA up 17.4% at Rs 404.08 crore Vs Rs 344.3 crore EBITDA margin 29.3% Vs 30.3 Net profit up 1.5% at Rs 264.36 crore Vs 260.36 crore Recommended dividend of Rs 1 per share of face value of Rs 10 each

Brokerage Radar:

BANK OF AMERICA ON KOTAK MAHINDRA BANK: Neutral, TP Rs 2200 Kotak 811 – taking a disruptor approach in digital retail Were +vely surprised by extent of cross-sell & increase in engagement that has already been achieved But execution & competition are key risks

CLSA ON COLGATE: Sell, TP Rs 1490 4Q: Overall result flat YoY; Volume declined 3% (in-line) Focus should be on top line (share gain in core and diversification) Weak rural growth and inflationary pressure near-term concerns Appointment of new CEO effective 1 Sep a key catalyst

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII

News Update

BPCL: The government called off EoI process for divestment of its 52.98% stake. Owing to prevailing conditions in the global energy market, the majority of QIPs have expressed their inability to continue in the current process of disinvestment of BPCL, the government said.
Tata Motors: The company incorporated a wholly owned subsidiary, TML Smart City Mobility Solutions for undertaking urban mass mobility business. It intends to bring specific focus to its Electric Vehicles segment as a service offering across its portfolio of commercial vehicles.

ONGC: The company has allocated capital expenditure of Rs 31,000 crore in the next three fiscals (FY 2022-25) for exploration.

Union Bank of India: The bank approved raising Rs 3,800 crore through Public Issue/Rights issue/private placement including QIP and Rs 4,300 crore via green/foreign currency denominated AT1 /Tier 2 bonds.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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