View on market: Stay Cautious, be with quality business:
Stocks rose Wednesday bringing some relief for markets from the concerns about tightening monetary policy. Shares climbed in Japan, South Korea and Australia, while U.S. equity futures advanced. The S&P 500 closed near session highs. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.25% to 17,302.50 as of 7:05 a.m. Elsewhere, oil trimmed a sharp drop amid geopolitical tensions. Bitcoin was trading around $44,000.
Economic Calendar:
- INR: RBI Credit Policy on 10th February, 2022.
- INR: M3 Money Market Supply on 10th February 2022.
- USD: Federal Budget Balance on 11th February, 2022.
- USD: API weekly crude on 9th February, 2022.
Earnings: Power Grid Corporation Of India FSN E-Commerce Ventures Tata Power Co. Steel Authority of India Berger Paints India ACC Bosch Aurobindo Pharma Abbott India GMR Infrastructure BASF India Nuvoco Vistas Corporation Indiabulls Housing Finance Petronet LNG SKF India Procter & Gamble Health Rail Vikas Nigam Shyam Metalics and Energy Engineers India HEG EPL DCB Bank Solara Active Pharma Sciences Hitachi Energy India GOCL Corporation Gufic Biosciences Gulf Oil Lubricants India Ingersoll-Rand (India) Jindal Stainless (Hisar) Kirloskar Oil Engines Nirlon Prestige Estates
Results:
Bharti Airtel: (Consolidated, QoQ) Revenues up 5.4% at Rs 29,866.6 crore Vs Rs 28,326.4 crore Net profit down 26.8% at Rs 829.6 crore Vs Rs 1,134 crore EBITDA up 6.3% at Rs 14,905 crore Vs Rs 14,018 crore EBITDA margins at 49.9% vs 49.5% (Bloomberg Estimate: 49.6% )
Jindal Steel & Power: Q3FY22 (Consolidated, QoQ) Revenue down 8% at Rs 12,524.86 crore Vs Rs 13,611.71 crore (Bloomberg estimate: Rs 11,974.6 crore) Net profit down 37% at Rs 1,621.68 crore Vs Rs 2,583.90 crore (Bloomberg estimate: Rs 1,791.7 crore) Ebitda down 28% at Rs 3,310.18 crore Vs Rs 4,594.12 crore (Bloomberg estimate: Rs 3,594.8 crore) Margin at 26.4% Vs 33.8%.
NMDC: Q3FY22 (Standalone, QoQ) Revenue down 13.5% at Rs 5,873.77 crore Vs Rs 6,793.51 crore Net profit down 12.4% at Rs 2,049.67 crore Vs Rs 2,340.92 crore Ebitda down 16.1% at Rs 2,612.4 crore Vs Rs 3,114.57 crore Margin at 44.5% Vs 45.8%
IRCTC Q3FY22 (YoY) Revenue at Rs 540.21 crore Vs Rs 224.37 crore (Bloomberg estimate: Rs 518 crore) Net profit at Rs 208.80 crore Vs Rs 78.08 crore (Bloomberg estimate: Rs 194.3 crore) Ebitda at Rs 279.18 crore Vs Rs 94.63 crore (Bloomberg estimate: Rs 248.1 crore) Margin at 51.7% Vs 42.2% (Bloomberg estimate: Rs 47.89 crore) Declared an interim dividend of Rs 2 per share
Brokerage Radar:
INVESTEC ON REDINGTON: Buy, TP cut to Rs 185 from Rs 190 Q3 a defining qtr on many counts i) marks a significant leadership transition ii) Co’s scale & dominance continues to aid margins iii) Q3 appears to be start of working capital normalization.
CREDIT SUISSE ON GUJARAT GAS: Review CS Neutral, TP Rs 635 Toughest qtr behind & margins looking strong in 4Q22 Despite a 3Q miss, increase FY22 EPS by 9% GGAS has capped Morbi vol to 5.5mmscmd & non-Morbi to 2mmscmd & with reduction in spot LNG prices, margins have shot up in 4Q.
NOMURA ON BHARTI AIRTEL: Buy, TP Rs 855 Good 3Q; higher ARPU drives market share gains; better show from Homes & Africa Among 3 prvt telcos, co’s rev & subscriber market share inched up by 65bp and 45bp q-q, respectively Subscriber mix continues to improve
International Markets:
U.S & Europe
| Particulars | 8th Feb | Chg | Chg(%) |
| Nasdaq | 14,194.46 | 178.79 | 1.28 |
| Dow | 35462.78 | 371.65 | 1.06 |
| FTSE | 7,567.07 | -6.4 | -0.08 |
| CAC | 7,028.41 | 19.16 | 0.27 |
| DAX | 15,242.38 | 35.74 | 0.24 |
| Dow Fut.* | 35529.2 | 66.4 | 0.19 |
Asian markets:
| Particulars | 9th Feb | Chg. | Chg(%) |
| SGX Nifty | 17,326.50 | 67 | 0.39 |
| Nikkei | 27,530.82 | 246.3 | 0.9 |
| Straits Times | 3,405.69 | 3.95 | 0.12 |
| Hang Seng | 24,770.56 | 441.07 | 1.81 |
| Shanghai | 3,460.20 | 7.57 | 0.22 |
ADR Watch:
| Particulars | 8th Feb | Chg. | Chg.(%) |
| Dr Reddy | 57.26 | -0.26 | -0.45 |
| HDFC Bank | 67.37 | -0.01 | -0.01 |
| ICICI Bank | 21.4 | 0.22 | 1.04 |
| Infosys | 22.89 | 0.42 | 1.87 |
| Tata Motor | 32.99 | 0.19 | 0.58 |
| Wipro | 7.54 | 0.1 | 1.34 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.70 | -0.03 |
| Brent | 90.96 | 0.20 |
| Gold | 1829.05 | 0.06 |
| Silver | 23.288 | 0.38 |
FIIs & DII
| Particulars | 8th Feb | 7th Feb |
| FIIs | -1967.89 | -1157.23 |
| DIIs | 1115.00 | -1376.49 |
News Update:
Bharti Airtel: The company has approved issuance of debentures, bonds etc. up to Rs 7,500 crore in one or more tranches.
Vedanta: The company concluded review of current corporate structure and said that the current structure is optimal. Company won’t undertake any corporate restructure including spin offs.
Thermax: The company has agreed to make an investment in Exactspace Technologies for Rs 9,99,84,208 by subscribing to 1,921 Cumulative Convertible Preference Shares. It will hold o 15.17% stake in Exactspace Technologies.
Lupin: The company has eceived approval from the United States Food and Drug Administration (FDA) for itsvAbbreviated New Drug Application (ANDA), Arformoterol Tartrate Inhalation
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