Market-View-Feature-Image

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

Asian stocks Friday recovered some of the losses sparked by the Federal Reserve’s pivot to tighter monetary policy, while U.S. equity futures climbed after strong Apple Inc. earnings aided sentiment. Shares rose in Japan and Australia but South Korea fluctuated. Contracts on the tech-heavy Nasdaq 100 outperformed S&P 500 futures following a rally in Apple Inc. in extended trading on record sales. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.08% to 17,153.50 as of 7:15 a.m. Treasuries were steady and the yield curve flatter. Oil advanced and gold struggled.

Economic Calendar:

  • INR: Bank Loan Growth on 28st January, 2022.
  • INR: Bank Deposit Growth on 28st January 2022.
  • USD: Core Price Index on 28th January, 2022.
  • USD: Manufacturing PMI on 1st February, 2022.

Earnings: Dr Reddys,,Atul, Britannia, Tata Coffee, Vedanta, MRPL, Larsen& Turbo, Chambal Fertilizers, Marico, UTI AMC  Ltd

Results:

Indus Towers: Q3FY22 (Consolidated, YoY) Revenue up 71% at Rs 6,927.4 crore Vs Rs 4,060.7 crore Net profit up 60% at Rs 1,570.8 crore Vs Rs 979.10 crore Ebitda up 77% at Rs 3,694.10 crore Vs Rs 2,082.7 crore Margins at 53.3% Vs 51.3%.

Bharat Heavy Electricals: Ltd Q3FY22 (Consolidated, YoY) Revenue up 15% at Rs 5,135.9 crore Vs Rs 4,451.36 crore Net profit at Rs 27.02 crore Vs Net loss of Rs 217.44 Ebitda gain of Rs 89.21 crore Vs Ebitda loss of Rs 180.41 crore.

Punjab National Bank: Q3FY22 (Standalone) NII down 7% at Rs 7,803.24 crore Vs Rs 8,345.75 (YoY) Net profit at Rs 1,126.78 crore Vs Rs 506.03 crore (YoY) Provision up 3% QoQ at Rs 3,353.55 crore GNPA at 12.88% Vs 13.63% (QoQ) NNPA at 4.90% Vs 5.49% (QoQ).

Dalmia Bharat: Q3FY22 (Consolidated, QoQ) Revenue at Rs 2,731 crore Vs Rs 2,737 crore Net profit down 48% at Rs 95 crore Vs Rs 182 crore Ebitda down 40% at Rs 411 crore Vs Rs 685 crore Margins at 15% Vs 25%.

RBL Bank: Q3FY22 Net profit up 6.1% at Rs 156 crore Vs Rs 147 crore (YoY) (Bloomberg estimate: Rs 75.7 crore) NII up 11.2% at Rs 1,010.42 crore Vs Rs 908.15 crore (YoY) Gross NPA ratio at 4.84% Vs 5.40% (QoQ) Net NPA ratio at 1.85% Vs 2.14% (QoQ).

Brokerage Radar:

UBS on SRF: Buy, TP Raised to Rs 3100 Management expects 4Q to be better than 3Q which was best qtr in terms of profitability In 3Q, revenue grew by 56% YoY, ahead of expectations, driven by strong performance across segments. Expect SRF to continue to perform well across segments, & think growth & margin upsides are not fully priced in Increase FY22-24 EPS estimates by 4-7%.

CLSA ON L&T: Buy, TP raised to Rs 2450 Begun well in this capex cycle by winning marque projects & on divesting assets, but it will be key to return excess cash to enhance ROE Its twin themes of turning around loss-making biz & reallocating capital to improve ROE still has steam.

MORGAN STANLEY ON PNB: EW, TP Rs 53 PBT 5% below MSe owing to higher-than-expected credit costs (driving higher coverage QoQ) Slippages moderated QoQ Core PPoP did well, & 34% above MSe due to sharp improvement in margins/lower costs Loan book grew 3% QoQ.

GOLDMAN SACHS ON BHEL: Sell, TP Rs 27 Reported PAT at Rs 143mn vs Gse of Rs-478mn With management noting that the Rs300bn revenue level is necessary for BHEL to break-even, see downside risk to FY23-24 est

International Markets:

U.S & Europe

Particulars 27th Jan Chg Chg(%)
Nasdaq 13,352.78 -189.34 -1.4
Dow 34160.78 -7.31 -0.02
FTSE 7,554.31 84.53 1.13
CAC 7,023.80 41.84 0.6
DAX 15,524.27 64.88 0.42
Dow Fut.* 34401.5 240.2 0.70

Asian markets:

Particulars   28th Jan    Chg. Chg(%)
SGX Nifty 17,153.00 -14.5 -0.08
Nikkei 26,720.06 549.76 2.1
Straits Times 3,268.01 7.98 0.24
Hang Seng 23,529.61 -277.39 -1.17
Shanghai 3,361.43 -32.82 -0.97

ADR Watch:

Particulars 28th Jan Chg. Chg.(%)
Dr Reddy 55.33 -2.76 -4.75
HDFC Bank 64.78 -1.21 -1.83
ICICI Bank 20.88 0.01 0.05
Infosys 21.81 -0.58 -2.59
Tata Motor 32.7 0.95 2.99
Wipro 7.08 -0.23 -3.15

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 75.07      0.39
Brent 88.65 -0.05
Gold 1797.25 0.23
Silver 22.782 0.47

FIIs & DII

Particulars 25th Jan 25th Jan
FIIs -6266.75 -7094.48
DIIs 2881.32   4534.53  

News Update:

TVS Motor: The company has acquired 75% stake in the Swiss E-Mobility Group through 1.15 lakh equity shares acquired at 525.58 CHF (Swiss Franc) on cash consideration. It plans to acquire the balance 25% stake in SEMG by next year.

Centrum: The company.y’s step down subsidiary Unity Small Finance Bank took charge of 110 branches of PMC Bank. Unity Small Finance Bank will immediately repay 96% of PMC Bank’s depositors who have deposits worth Rs 5 lakh or less. The banks’ shareholders have committed capital of over Rs 3,000 crore through cash and warrants.

Lupin: The company has entered a promotional agreement with Exeltis USA Inc.to promote SOLOSEC along with Exeltis’ existing line of Women’s Health products.

Motilal Oswal: The company declared interim dividend of Rs 7 per share.

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