Market View 2nd August 2022

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

Stocks in Asia retreated Tuesday amid rising US-China tension over Taiwan and worries about a global economic slowdown. Shares dropped in Japan, South Korea and Australia after S&P 500 and Nasdaq 100 futures fell after July’s global stock market rebound stumbled into August. US House Speaker Nancy Pelosi is expected to visit Taiwan on Tuesday. She would become the highest-ranking American politician to visit the island in 25 years. At 7:00 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — traded 0.20% higher at 17,200 points.

Economic Calendar:

• USD : JOLTs Job Openings (Jun) 02^nd Aug, 2022
• USD : ISM Non-Manufacturing PMI (Jul) 03^rd Aug, 2022
• INR : Trade Balance 02^nd Aug, 2022
• INR : Interest Rate Decision 05^th Aug, 2022

Q1FY23 Result Today: Adani Green, Bank of India, Bosch Ltd., Shyam Metalics & Energy Ltd., Siemens, Star Cements, Voltas, Zee Learn, Lemon Tree Hotels, Godrej Properties, Indus Towers

Q1FY23 Result:

ITC Q1 FY23 (Consolidated, YoY) recorded a 38.3% YoY growth in standalone profit at Rs 4,169.4 crore for the quarter ended June 2022, on strong topline and operating performance. Revenue grew by 41.4% YoY to Rs 18,320 crore during the June FY23 quarter with growth across segments. EBITDA surged 41.5% YoY to Rs 5,647.2 crore in Q1FY23.

Escorts Kubota Q1 FY23 (Consolidated, YoY) recorded 21.2% YoY decline in consolidated profit at Rs 140.6 crore for the quarter ended June 2022, dented by higher input cost. Revenue grew by 19% to Rs 2,032 crore during the same period.

Kansai Nerolac Paints Q1 FY23 (Consolidated, YoY) reported a 36.5% YoY growth in consolidated profit at Rs 152 crore in the quarter ended June 2022 despite sharp increase in input cost, supported by operating performance and topline. Revenue grew by 46% YoY to Rs 2,051.40 crore during the same period.

Zomato Q1 FY23 (Consolidated, YoY) posted consolidated loss at Rs 186 crore for the quarter ended June 2022, which narrowed compared to loss of Rs 360.7 crore in Q1FY22 and loss of Rs 360 crore in Q4FY22. It was backed by other income that more than doubled to Rs 168.1 crore from Rs 72.2 crore YoY. Revenue grew by 67.4% YoY and 16.67% QoQ to Rs 1,413.9 crore.

Brokerage Radar:

JPM ON ESCORTS: JPM on Escorts; Downgrade to Neutral, TP cut to Rs 1565 from Rs 1800; Weak margins & continued market share pressures; Cut FY23E-25E EPS by 4-13%; Co likely to present its mid-term plan in Sept/Oct; Stk could find support due to its strong cash position (c20% of M Cap).

JPM ON ITC: OW, TP Raised to Rs 350; 1Q beat; firing on all cylinders; Cig EBIT growth at 29% y/y led by vol recovery, share gains, & improved market mix; Non-FMCG divisions– Paper, Hotel & Agri– clocked highest ever qtrly rev along with healthy EBIT growth

CLSA ON UPL: Buy, TP cut to Rs 1000 from Rs 1100; 1Q ahead of est.; All geographies reported rev above forecasts, except India; FY23 rev/Ebitda growth guidance raised; reduction in net debt key; Tangible debt reduction most important lever to stock rerating

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

Pfizer: has received Rs 180.48 crore from Mylan after it has transferred Upjohn business comprising of six brands which included Lyrica, Viagra, Celebrex, Amlogard, Daxid and Dilantin along with related business assets and liabilities to Mylan.

Eicher Motors: sold 5,982 units in the commercial vehicle segment in July 2022, up 40.1% compared to 4,271 units sold in same month last year, with domestic sales increasing 51% to 5,360 units but exports fell 22% to 501 units in the same period.

TVS Motors: registered a growth of 13% in July 2022 with sales of 3.14 lakh units as against 2.78 lakh units sold in July 2021, with two-wheeler sales growing 14% to 2.62 lakh units and total exports rising 9% to 1.12 lakh units during the same period.

 Source: Moneyontrol, 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