View on market: Stay Cautious, be with quality business:
Asian stocks rose Tuesday after U.S. equities extended a winning streak on optimism that the economic recovery can weather inflation risks. The dollar and Treasuries held declines. Shares advanced modestly in Japan, South Korea and Australia. U.S. futures slipped after the S&P 500 eked out a gain to cement its longest winning run since 2017. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, was little changed at 18,122, 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: Mahindra & Mahindra, Power Grid Corporation of India, Bharat Heavy Electricals Ltd, Indraprastha Gas, MRF, Bosch, Max Financial Services, IDFC, Petronet LNG, Astrazeneca Pharma India, Procter & Gamble Health, Godrej Agrovet, CreditAccess Grameen, HEG, Hindustan Copper, Jet Airways (India), Powergrid Infrastructure Investment Trust, Amrutanjan Health Care, Greenply Industries, Kennametal India, Kesoram Industries, Gulshan Polyols, Mangalore Chemicals & Fertilizers, Manali Petrochemical, Mishra Dhatu Nigam, Nava Bharat Ventures, NCC, Nirlon, Olectra Greentech, OnMobile Global, PDS Multinational Fashions, Redington (India), Sharda Motor Industries, Somany Home Innovation, Tata Investment Corporation, VST Tillers Tractors
Results:
Britannia Q2FY22 (Consolidated, QoQ): Revenue up 6% at Rs 3,607.37 crore Vs Rs 3,403.46 crore Net profit down 1% at Rs 384.22 crore Vs Rs 389.55 crore Ebitda up 1% at Rs 558.33 crore Vs Rs 553.78 crore Margins at 15.5% Vs 16.3%.
Aurobindo Pharma Q2FY22 (Consolidated, QoQ): Revenue up 4% at Rs 5,941.92 crore Vs Rs 5,702 crore. Net profit down 9% at Rs 697 crore Vs Rs 770 crore. Ebitda down 2% at Rs 1,186.7 crore Vs Rs 1,209.4 crore. Margins at 20% Vs 21.2%. EPS at Rs 11.89 per share Vs Rs 13.14. Approved second interim dividend of Rs 1.50 per equity share
Brokerage Radar:
CLSA ON SBI: Maintain buy at the price of Rs 576 for the target price of Rs 700. Ad revenue up 40% YoY, subscriptions lagged & an attractive valuation. Co does not see any major impact from NTO-2. Co is guiding for double-digit subscription growth and & pay out 50% of its profit.
JPMORGAN ON BRITANNIA: Maintain overweight at the price of Rs 3717 for the target price of Rs 4000. Earnings miss on significant COGS inflation. Revenue growth supported by continued market share gains steep raw material inflation weighs on margin. Price hikes & cost measures in place to support profitability ahead.
International Markets:
U.S & Europe
| Particulars | 8th Nov | Chg | Chg(%) |
| Nasdaq | 15,982.36 | 10.77 | 0.07 |
| Dow | 36,432.22 | 104.27 | 0.29 |
| FTSE | 7,300.40 | -3.56 | -0.05 |
| CAC | 7,047.48 | 6.69 | 0.10 |
| DAX | 16,046.52 | -7.84 | -0.05 |
| Dow Fut.* | 36,249.00 | -64.00 | -0.17 |
Asian markets:
| Particulars | 9th Nov | Chg | Chg(%) |
| SGX Nifty | 18,122.00 | -15.50 | -0.09 |
| Nikkei | 29,533.32 | 26.27 | 0.09 |
| Straits Times | 3,262.75 | -1.15 | -0.04 |
| Hang Seng | 24,848.94 | 85.17 | 0.34 |
| Shanghai | 3,499.89 | 1.26 | 0.04 |
ADR Watch:
| Particulars | 8th Nov | Chg | Chg(%) |
| Dr Reddy | 64.83 | 1.43 | 2.26 |
| HDFC Bank | 71.98 | 0.96 | 1.35 |
| ICICI Bank | 21.04 | 0.40 | 1.94 |
| Infosys | 23.44 | 0.65 | 2.85 |
| Tata Motor | 34.08 | 1.32 | 4.03 |
| Wipro | 9.20 | 0.23 | 2.56 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.02 | -0.59 |
| Brent | 83.52 | -0.20 |
| Gold | 1825.30 | -0.15 |
| Silver | 24.488 | -0.22 |
FIIs & DII
| Particulars | 8th Nov | 4th Nov |
| FIIs | -860.65 | -328.11 |
| DIIs | 1911.77 | 38.25 |
News Update:
Reliance Industries: Reliance Eagleford Upstream Holding LP has signed agreements with Ensign Operating III LLC to divest interest in certain upstream assets in the Eagle Ford Shale play in Texas, U.S. The sale is at a consideration higher than the current carrying value of the assets. With this transaction, the company has divested all its shale gas assets and has exited from the shale gas business in North America.
Cadila Healthcare: Zydus Cadila has received an order to supply one crore doses of ZyCoV-D, a Plasmid DNA vaccine, to the Government of India at Rs 265 per dose and the needle-free applicator being offered at Rs 93 per dose, excluding GST.
Future Retail: NCLT Mumbai has granted a stay on the meeting of the company’s creditors and shareholders. Future Retail had approached NCLT seeking to defer the meetings between November 26-30. The company’s creditors and shareholders were scheduled to meet on November 9-10 to approve the scheme of arrangement with Reliance Retail Ventures, Reliance Retail and Fashion Lifestyle.
Route Mobile: The company launched its QIP issue on Monday and approved the floor price of Rs 1,949.24 per share. The floor price is at a discount of 1.93% to Monday’s closing price.
Vedanta: Delisting of American Depositary Shares, representing equity shares, from New York Stock Exchange will become effective close of trading on NYSE on November 8, 2021.
JBM Auto: The company has received prestigious order for supply, operation and maintenance of 200 air-conditioned fully built low floor electric buses.
Motherson Sumi Systems:The company’s board of directors gave approval to raise up to Rs 1,000 crore through the issuance of Non-Convertible Debentures.
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