Market-View-Feature-Image

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

Stocks in Asia started the week steady as investors keep watch on how price pressures impact the pace of economic recovery. Treasury yields pared a slide. Equities edged up in Japan, fluctuated in Australia and fell in South Korea. U.S. futures dipped after all major U.S. equity benchmarks climbed to records Friday, with the S&P 500 posting its fifth consecutive weekly rally. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.38% to 18,008, as of 8:05 a.m.

Economic Calender:

  • INR: CPI (YoY) (Oct) on 12th November, 2021.
  • INR: Manufacturing Output (MoM) (Sep) on 12th November, 2021.
  • USD: PPI (MoM) (Oct) on 9th November, 2021.
  • USD: Core CPI (MoM) (Oct) on 10th November, 2021.

Earnings: 3i Infotech, Aurobindo Pharma, Balrampur Chini Mills, Britannia Industries, HG Infra Engineering, KRBL, Shyam Metalics and Energy, Sobha, Ujjivan Small Finance Bank, Wockhardt, Vijaya Diagnostic Centre.

Results:

Divi’s Laboratories (Consolidated, QoQ): Revenue up 1% at Rs 1,987.5 crore. Net profit up 9% to Rs 606.5 crore. Ebitda down 4% at Rs 818.1 crore. Margin at 41.2% vs 43.5%. EPS at Rs 22.84 per share vs Rs 20.99.

Sun TV Network (Consolidated, QoQ): Revenue up 3.6% at Rs 848.6 crore Ebitda down 3.2% at Rs 528.3 crore Profit after tax up 8.3% at Rs 395.5 crore Dividend of Rs 2.5 per equity share.

Brokerage Radar:

CLSA ON SBI: Maintain buy at the price of Rs 530 for the target price of Rs 750. Surprise continues, RoEs now +15% with potential upsides. Q2 performance a beat on most counts with core margin improving 15 bps QoQ. 13% ROE despite upfronting a family pension impact, adjusted for all one- offs. Asset quality of SBI & large private peers indicate undershooting of credit costs from H2. Increase their EPS estimates by 3-5% for FY23-24 & now expect 1% ROA & +15% ROE.

GS ON DIVIS LABS: Maintain buy at the price of Rs 5208 for the target price of Rs 5840. Q2 Miss, COVID oral anti-viral opportunity in focus. Generic API biz drove miss as customers destocked inventory from high base of last yr. API miss partially offset by CMO product opportunities announced in mid-FY21. Margin came off but remained buoyant at 41%.

International Markets:

U.S & Europe

Particulars 5th Nov Chg Chg(%)
Nasdaq 15,971.59 31.28 0.20
Dow 36,327.95 203.72 0.56
FTSE 7,303.96 24.05 0.33
CAC 7,040.79 53.00 0.76
DAX 16,054.36 24.71 0.15
Dow Fut.* 36,196.00 19.00 -0.05

Asian markets:

Particulars 8th Nov Chg Chg(%)
SGX Nifty 18,008.00 67.50 0.38
Nikkei 29,583.39 -28.18 -0.10
Straits Times 3,263.36 21.02 0.65
Hang Seng 24,754.67 -115.84 -0.47
Shanghai 3,496.06 4.49 0.13

ADR Watch:

Particulars 5th Nov Chg Chg(%)
Dr Reddy 63.78 -0.18 -0.28
HDFC Bank 71.44 -0.88 -1.22
ICICI Bank 20.62 -0.08 -0.39
Infosys 22.80 0.09 0.40
Tata Motor 32.50 -0.38 -1.16
Wipro 9.02 -0.01 -0.11

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.46 0.00
Brent 83.83 1.81
Gold 1820.90 0.23
Silver 24.317 0.66

FIIs & DII

Particulars 4th Nov 3rd Nov
FIIs -328.11 -401.48
DIIs 38.25 195.56

News Update:

Dish TV, Yes Bank: Office of Crime Branch, Gautam Buddh Nagar has issued a notice to Yes Bank, restricting it from dealing in or exercising any rights over its 44.5 crore equity shares in Dish TV till completion of the investigation or till further orders.

Vedanta: Company has exclusive rights over the brand name ‘Cairn’. Cairn Energy PLC, the Scottish oil and gas exploration company that is also commonly referred to as Cairn Energy, will discontinue the use of the term by December 2021.

Dr Reddy’s Laboratories: In an earnings call, CEO Erez Israeli said the company will focus on spending on its generic portfolio in each one of the markets, mainly in United States, China, Europe, emerging markets, biosimilars and recently, also on the Covid products as well as vaccines, specifically for India, Russia.

Sun Pharmaceuticals: Its U.S. subsidiaries have signed settlement agreements with the Direct Purchaser Plaintiffs in the Generic Pharmaceuticals Pricing Antitrust Litigation. The subsidiaries will make a payment of $85 million in exchange for a full release of all claims.

Grasim Industries: Company has successfully commissioned chloromethane project at Vilayat, Gujarat having capacity of 50,000 ton per annum. This will result into an additional annualised revenue of Rs 400 crore.

SJVN: The company has bagged 100 MW grid-connected solar PV power project from Punjab State Power Corporation Ltd through tariff-based competitive bidding process, on ‘Build, Own and Operate’ model.

GAIL (India): National Company Law Tribunal has granted approval for acquisition of 26 percent equity stake of Infrastructure Leasing & Financial Services (IL&FS) Group by GAIL (India) in ONGC Tripura Power Company.

Grasim Industries: The company has successfully commissioned Chloromethane project at Vilayat Unit, Gujarat, having capacity of 150t per day or 50,000t per annum. This will lead to an additional annualised revenue of around Rs 400 crore

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