View on market: Stay Cautious, be with quality business:
Stocks and U.S. futures dipped Monday amid intensifying bets on Federal Reserve interest-rate hikes that are also weighing on bonds. Australian debt slid and Treasuries remained lower. Shares in Japan, Australia and South Korea retreated, while S&P 500 and Nasdaq 100 futures edged lower. China resumed trading later after a weeklong holiday. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.11% to 17,470.50 as of 6:30 a.m. Oil’s ongoing rally paused at around $92 a barrel. Bitcoin climbed above $42,000 to the highest level in over two weeks.
Economic Calendar:
- INR: RBI Credit Policy on 10th February, 2022.
- INR: M3 Money Market Supply on 10th February 2022.
- USD: Trade Balance on 8th February, 2022.
- USD: API weekly crude on 9th February, 2022.
Earnings: National Aluminium Co. PB Fintech Minda Industries Indian Bank Jindal Stainless The Phoenix Mills TVS Motor Company Clean Science and Technology Glaxosmithkline Pharmaceuticals Castrol India Borosil Union Bank Of India JM Financial KPR Mill Tube Investments of India Indo Count Industries Camlin Fine Sciences Ami Organics NGL Fine-Chem Paisalo Digital Punjab & Sind Bank Bannari Amman Sugars Authum Investment & Infrastructure Sansera Engineering Chemcon Speciality Chemicals Butterfly Gandhimathi Appliances Gabriel India Gujarat Industries Power Co. MM Forgings Nucleus Software Exports Precision Wires India Quint Digital Media.
Results:
Tata Steel : Q3FY22Revenue up 0.65% at Rs 60,783.11 crore Vs Rs 60,387.13 crore Net profit down 19.67% at Rs 9,572.67 crore Vs Rs 11,918.11 crore Ebitda down 3.4% at Rs 15,893.67 crore Vs Rs 16,456.12 crore Margins at 26.14% Vs 27.25%
State Bank of India: Q3FY22 Net profit at Rs 8,432 crore Vs Rs 5,196 crore (YoY) NII at Rs 30,687.4 crore Vs Rs 28,820 crore (YoY) GNPA at 4.5% Vs 4.9% (QoQ) NNPA at 1.34% Vs 1.52% (QoQ)
InterGlobe Aviation Q3FY22 (Standalone, YoY) Revenue up 89% at Rs 9,294.76 crore Vs Rs 4,909.98 crore Net profit at Rs 128.45 crore Vs Net loss of Rs 626.58 crore (Bloomberg estimate: Rs 415.3 crore Net Loss) Ebitdar at Rs 1,905.24 crore Vs Rs 903.01 crore Margin at 20.5% Vs 18.4% Earnings per share was Rs 3.33 for the quarter.
Brokerage Radar:
JEFFERIES ON THERMAX: Upgrade to Buy from U-P, TP raised to Rs 2575 from Rs 790 Upgrade FY23E-24E EPS by 11-36% to reflect revenue recovery on +ve capex outlook & co’s waste to heat recovery opportunity Believe management is focused on taking a step forward in 1) Leveraging its brand to deepen existing relations through new products 2) Improving capital allocation 3) Margin improvement 4) Seeking new RE growth avenues with global tie-ups.
CLSA ON TATA STEEL: Buy, TP Rs 1820 3Q Ebitda largely in line; India profitability surprises positively Europe profitability impacted by higher energy costs Debt declines further, despite working capital build-up.
JEFFERIES ON LUPIN: U-P, TP Cut to Rs 737 from Rs 825 In-line rev driven by US beat, but still reported an EBITDA miss of 14% with EBITDA margins at 13.6%. Management guided to continued pain for next few qtrs Cut FY23/FY24 EPS est by 15%/4%.
GOLDMAN SACHS ON PAYTM: Upgrade to buy, TP Rs 1460 Strong growth outlook; risk reward attractive CMP implying multiple headwinds including MDR caps, a decline in market share for Paytm, & significantly slower ramp-up of co’s financial services, which view as unlikely Strong topline growth of 89% YoY in 3Q (11% of ahead of GSe) will help allay investor concerns around declining payments take rate in recent yrs In addition, co continues to gain market share across both UPI & non-UPI
International Markets:
U.S & Europe
| Particulars | 4th Feb | Chg | Chg(%) |
| Nasdaq | 14,098.01 | 219.19 | 1.58 |
| Dow | 35089.74 | -21.42 | 0.06 |
| FTSE | 7,516.40 | -12.44 | -0.17 |
| CAC | 6,951.38 | -54.25 | -0.77 |
| DAX | 15,099.56 | -268.91 | -1.75 |
| Dow Fut.* | 34974.5 | -115.7 | -0.33 |
Asian markets:
| Particulars | 7th Feb | Chg. | Chg(%) |
| SGX Nifty | 17,424.00 | -66 | -0.38 |
| Nikkei | 27,203.66 | -236.33 | -0.86 |
| Straits Times | 3,337.92 | 6.51 | 0.2 |
| Hang Seng | 24,409.06 | -164.23 | -0.67 |
| Shanghai | 3,415.83 | 54.39 | 1.62 |
ADR Watch:
| Particulars | 4th Feb | Chg. | Chg.(%) |
| Dr Reddy | 58.14 | -0.43 | -0.73 |
| HDFC Bank | 68.72 | -0.96 | -1.38 |
| ICICI Bank | 21.47 | -0.42 | -1.92 |
| Infosys | 22.76 | -1.01 | -4.25 |
| Tata Motor | 33.11 | -0.55 | -1.63 |
| Wipro | 7.55 | -0.28 | -3.58 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.70 | -0.22 |
| Brent | 93.16 | 0.41 |
| Gold | 1810.55 | 0.15 |
| Silver | 22.767 | 1.28 |
FIIs & DII
| Particulars | 4th Feb | 3rd Feb |
| FIIs | -2267.86 | -1597.54 |
| DIIs | 621.98 | -370.58 |
News Update:
Reliance I: The company’s subsidiary Jio Platforms announced an investment of $15 million in Two Platforms Inc. for a 25% equity stake on a fully diluted basis.
Cipla: The company has entered into Share Subscription and Shareholder’s Agreement and Power Purchase agreement to acquire up to 32.49% stake on a fully diluted basis in AMP Energy Green Eleven, for setting up a captive solar power project in Maharashtra.
Godrej Properties: The company decided to cancel the proposed deal of Rs 400 crore to buy around 10% stake in DB Realty and invest Rs 300 crore for slum redevelopment, following feedback from its stakeholders and minority shareholders.
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