Market View 31st May 2022

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

Stocks in Asia fell Tuesday amid concerns on the impact on growth due to interest rate hikes by central banks and the surge in crude oil prices to $118 per barrel after the European Union backed a push to ban some Russian oil. Equities in Japan, Korea and Australia declined while Hong Kong futures fell. U.S. contracts rose. American markets were shut Monday for the Memorial Day holiday.
The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell 0.14% to 16,623 points as of 6:20 am. India’s GDP data for quarter-ended March and estimate for FY22, fiscal deficit data and core output data for April are scheduled to be released today. European bonds fell as German inflation hit a record. The dollar rose slightly. U.S. President Joe Biden will hold a rare Oval office meeting on Tuesday with Fed Chair Jerome Powell amid rising inflation and ahead of US payroll numbers later this week. Elsewhere, Bitcoin was back above $31,000.

Economic Calendar:

• INR: Trade Balance on 2^nd June 2022.
• 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: PTC India

Q4Fy22 Earning:

LIC Q4 FY22 (Consolidated, YoY) Revenue up 12% at Rs 2,12,230 crore Vs 1,90,099 crore EBITDA at Rs 2,396 crore Vs Rs 2,921 crore, down 18% EBITDA margins at 1.13% vs 1.54% Net profit down 17% of Rs 2,409 crore Vs Rs 2,917 crore EPS at Rs 3.81 vs Rs 4.61 Recommended dividend of Rs 1.5 per share of face value Rs 10 each

Sun Pharmaceuticals Q4 FY22 (Consolidated, YoY) Revenue up 11% at Rs 9,447 crore Vs Rs 8,523 crore (Bloomberg estimate: Rs 9,576 crore) EBITDA up 6% to Rs 2,179 crore from Rs 2,059 crore (Bloomberg estimate: Rs 2,544 crore) EBITDA margins at 23.1% Vs 24.2% (Bloomberg estimate: 26.6%) Net loss of Rs 2,277 crore.

Aurobindo Pharma Q4 FY22 (Consolidated, YoY) Revenue down 3% at Rs 5,809 crore Vs Rs 6,002 crore (Bloomberg estimate: Rs 5,901 crore) EBITDA down 24% to Rs 974 crore from Rs 1,275 crore (Bloomberg estimate: Rs 1,029 crore) EBITDA margins at 16.8% Vs 21.2% (Bloomberg estimate: 17.4%) Net profit down 28% to Rs 576 crore.

Jindal Steel and Power Q4 FY22 (Consolidated, YoY) Revenue up 35% at Rs 14,339.49 crore Vs Rs 10,593.72 crore (Bloomberg estimate: Rs 14,900.9 crore) EBITDA fell 38% at Rs 3,070.2 crore Vs Rs 4,963.61 crore (Bloomberg estimate: Rs 3,854.4 crore) EBITDA margin 21.41% Vs 46.85% (Bloomberg estimate: 25.86%) Net profit up 3% at Rs 2,206.97 crore.

Delhivery Q4 FY22 (Consolidated, QoQ) Revenue up 4% at Rs 2,071.75 crore Vs Rs 1,995.04 crore EBIT fell 20% at negative Rs 159.32 crore Vs negative Rs 132.38 crore EBIT margin -7.69% Vs -6.64% Net loss fell 5% at Rs 119.86 crore Vs Rs 126.51 crore

Brokerage Radar:

CLSA ON JUBILANT FOODWORKS: Sell, TP Rs 500 4Q: better top-line but earnings in-line Aggressive store expansion plans Competition in pizza space is rising Rising mobility & competition could cause its gross margin to revert to its pre-Covid level of 75%.

MORGAN STANLEY ON GLENMARK PHARMA: UW, TP Cut to Rs 422 GNP’s core business is stabilizing with steady sales growth & margin consolidation. It is investing in its NCE portfolio, which is at a relatively nascent stage.

MORGAN STANLEY ON M&M: OW, TP raised to Rs 1198 Increases to tractor vol est drive F23 & F24 EPS upgrades With auto turnaround on track & group ROE improving, core biz at 13x F24 P/E looks attractive Capital allocation strategy working well – next focus on accelerating growth

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

Mahindra & Mahindra: The company sold 2.76% stake in TVS Automobile Solutions for Rs 45 crore.

MPS: The company completed acquisition of EI Designs through MPS Interactive Systems, its wholly owned subsidiary for Rs 40 crore.

Lemon Tree Hotels: The company has signed a license agreement for a 40 room hotel at Chirang, Assam under its brand ‘Keys Select, by Lemon Tree Hotels.’ The hotel is expected to be operational by June, 2026.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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