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January 03, 2025

Afloat Enterprises board meeting on January 7th will consider a preferential issuance of convertible warrants to raise funds.
Sybly Industries: Resignation of multiple directors including Managing Director.
CSL FINANCE: COO RESIGNED
JEFFERIES ON TRANSPORT AND LOGISTICS
2H2024 was a relatively weak year for logistics stocks
Rail and domestic truck volumes were weaker than expected
Expect volume recovery should be visible on a low base from 1QFY26E
Especially for rail container volumes as the impact of Indian Railways busy season surcharge is fully captured
Dedicated Freight Corridor (DFC) to JNPT by Dec 2025 will boost volumes further
Our top picks are JSW Infra, Concor, and TCI Express
JEFFERIES ON UTILITIES
Aug-Nov 2024 power demand has been weak at 1% YoY decline, and 8MFY24 is just 4.4% YoY rise
Believe this is a temporary blip as electrification drivers of residential demand, data centres and manufacturing are intact
2023 saw concerns emerging on power shortage in India
Peak deficit returning in summer months, accelerating capacity addition and higher merchant prices should be seen in 2025
Top picks: JSW Energy and NTPC
Retain Buy on Power Grid
STOCKS MOVED TO SHORT TERM ASM LIST
BN Rathi Securities
Eco Hotels And Resorts
GMR Power and Urban Infra
Graviss Hospitality
Promax Power Ltd
Prozone Realty Ltd*
Ramasigns
Toss The Coin Ltd
STOCKS OUT FROM SHORT TERM ASM LIST
Benara Bearings
CHL Ltd
Cochin Minerals & Rutiles Ltd
Cubical Financial Services Ltd
Dhani Services Ltd
Modi Naturals Ltd
Niyogin Fintech Ltd
Safa Systems
Sita Enterprises Ltd
INDIA
India PMI-Manufacturing hits 12-month low in December
Work demand under MGNREGS rises again in Dec
Revival in private capex not seen-RBI survey
ADANI PORTS: CO HANDLED 38.4 MMT OF TOTAL CARGO +8% (YOY), DRIVEN BY CONTAINERS +22% (YOY) AND LIQUIDS AND GAS +7% (YOY)
HSBC on PI Industries
Hold, TP cut to Rs 3800 from Rs 4000
Difficult times for pyroxasulfone which increases risks for PI’s export growth prospects
Exports already reflecting weakness
PI has entered zone of uncertainty as core biz remain muted while new biz take time to scale up
EMKAY ON REC , PFC
REC : BUY , TARGET PRICE 650
PFC ; BUY , TARGET, 600
₹33 lakh crore planned for FY23-32 in Generation, Transmission, and Distribution ensures long-term growth and visibility.
Central Government reforms, reduced risks (PPA/FSA, project gestation), and diversification by PFC/REC boost confidence in asset quality and profitability.
Copied from stockaajorkal telegram channel
P/B ratios (1.5x for REC, 1.14x for PFC) are above historical medians but justified by growth and profitability prospects.
PFC/REC AUM to grow at 13%/18% CAGR in FY24-27E, with 19%/20% ROE, driven by strong credit demand and low credit costs.
CITI on PNB
Sell, TP Rs 96
Reported gross advances growth of 15% yoy/4.7% qoq in 3Q vs 13% yoy/3.5% qoq in 2Q & CitiE of 13.8% yoy
Expect RAM segments to be primary growth driver
Mgmt. maintains NIM guidance of 2.9-3% &endeavor to not only sustain but also grow NII
UBS on Bandhan BK
Neutral, TP cut to Rs 185 from Rs 230
Earnings to remain under pressure
MFI stress to drive higher credit costs & lower NIMs
BK's MFI PAR 1-90 was at 3.3% in Q2; Industry at 5.4% in Nov
Cut EPS by c11% as raise credit costs & reduce NIMs
UBS ON DMART
BUY , TARGET 5500
CITI on Eicher Motors: Buy, TP Rs 5350
Reported robust vol in December at 79,466 units (+25%YoY; -3%MoM).
A strong December volume print indicates favorable inventory levels post festive season, something that mgmt. had alluded to in 2Q conference call
India Daybook – Stocks in News
Wockhardt: Indian Drug Regulator approves new generation oral antibiotic MiqnafR for the treatment of community-acquired bacterial Pneumonia. (Positive)
V2 Retail: Standalone Revenue Up 58% at ₹591 Cr Vs ₹373.8 Cr (YoY) (Positive)
NHPC: Company received Rs 250 crore as the second installment of gross payment under a mega insurance policy. (Positive)
Biocon: Company receives NMPA approval for Tacrolimus capsules in China (Positive)
Optiemus: Company partners with Germany’s LS Spectrum for drone-based spectrum solutions in India (Positive)
Procot Ind: India Ratings upgraded Company's credit rating, from 'IND BBB' to 'IND BBB+’, reflecting improved financial strength (Positive)
MOIL: Production of Manganese Ore at 4.6 Lakh Tonnes, sales Up 13% YoY at 3.88 Lakh Tonnes (Positive)
Deepak Builders: CRISIL upgraded the company's Long term rating to BBB+/Stable from BBB-/Stable. (Positive)
Capital Small Finance Bank: Provisional Total Deposits Up 12% (YoY) On Dec-end, Provisional Gross Advances Up 19.2% (YoY) On Dec-end. (Positive)
Divi's Laboratories: Company announces commencement of commercial operations at its Unit III Greenfield project in Kakinada, Andhra Pradesh. (Positive)
Signature/ Oberoi/ Macrotech: Mumbai real estate market sees highest property registrations in 13 years, says report (Positive)
Prataap Snacks: CCI approves the proposed combination involving acquisition of 72.8% voting share capital in Prataap Snacks Limited by Authum Investment and Ms. Mahi Madhusudan Kela (Positive)
JTL Industries: Company reports highest ever 9M sales volume at 297,082 MT, a 14.3% YoY increase (Positive)
Bank of Maharashtra: Gross advances jumped by 21.19% YoY to ₹228,652 crore. Total deposits by 13.54% YoY to ₹279,018 crore. (Positive)
IRFC: Company said it has entered into a Memorandum of Understanding (MoU) with Railway Energy Management Company Ltd (REMCL), a joint venture of the Ministry of Railways (MOR) and RITES. (Positive)
RITES: Company secured order worth of Rs 69.8 crore from Steel Authority of India Limited. (Positive)
Tirupati Tyres: Company announced the appointment of Ms. Pratiksha Soni as its new Company Secretary and Compliance Officer, effective January 2, 2025. (Neutral)
Allcargo Logistics: Company Unit Flamingo Line Del Peru SA, has been voluntarily liquidated and ceased to be a subsidiary (Neutral)
Hero MotoCorp: Company has received an additional tax demand of Rs 26.4 crore from the government (Neutral)
Zee Entertainment: Settlement applications by Zee and Punit Goenka rejected (Neutral)
DMART: Company reported Standalone Revenue from operations for the quarter at Rs 15,565.23 crores (Up 17.5 percent). (Neutral)
Varun Beverages: Company invested Rs 4128.04 Million in its Subsidiary, the beverage company proprietary Ltd, South Africa. (Neutral)
Honasa Consumer: Company announced the resignation of its Chief Business Officer, Mr. Master Zairus, and effective February 28, 2025. (Neutral)
Arihant Academy: Company opened its 22nd coaching center in Virar (West), Mumbai. (Neutral)
Pricol: Board approves divestment of wiping business division of the company to Auto Ignition on a slump sale basis (Neutral)
Hero Motocorp: Total Sales Down 17.5% At 3.24 Lk Units Vs 3.93 Lk Units (YoY) Estimates: 3.70 Lk Units (Neutral)
SSWL: India Ratings and Research affirmed SSWL's debt instruments rating at 'IND AA-' with a Stable outlook. (Neutral)
NLC India: Company announced the resignation of its Company Secretary & Compliance Officer, Shri R. Udhayashankar. (Neutral)
Axis Cades: Arun Krishnamurthi resigns as MD & CEO of Axiscades Technologies w.e.f. January 2, 2025. (Negative)
Hindustan Zinc: Mined metal output down 2% at 2.65 lakh tonne year-on-year. (Negative)
MS on Maruti
Maintain Overweight, TP 14124
Share price will rise relative to the country index over the next 30 day
Expect the stock to outperform incrementally as: 1. valuation at 22x FY26e P/E looks supportive vs 10- year median of 26x
Will showcase its first EV launch on Jan 17
Exports are performing better than expected, which should also support margins
Expect 13% EBITDA growth in Q3 with 11.5% EBITDA margin.
MS on Petronet
Maintain Equal-Weight TP-400
PLNG remains a high ROCE stock through cycles
See upside to utilisation rates for its terminals
LNG prices normalise and support demand by March 2025.
See competitive risks as less of an issue now
PLNG brings its own low-cost brownfield 5mntpa capacity to market in 1H25.
JPM on Petronet
Maintain Overweight, TP 377
Tariff Regulation seems low probability.
Upside from capacity and seasonal demand near term
PNGRB currently does not have authority to regulate these tariffs
Regas terminals are not necessarily monopoly assets with captive consumers.
PLNG can benefit from 5 MTPA capacity expansion by March, a seasonal uptick in power demand and the annual 5% tariff increase in Jan
CITI on Eicher Motors
Buy, TP Rs 5350
Reported robust vol in December at 79,466 units (+25%YoY; -3%MoM).
A strong December volume print indicates favorable inventory levels post festive season, something that mgmt. had alluded to in 2Q conference call.
Jefferies on Jubilant Foodworks
High Conviction Idea-Maintain Buy, TP 1000
Outlook is improving with likely pick-up in SSSG ahead
On the back of a low base and self-help measures.
SSSG should expand to mid-to-high-single-digit in coming qtrs
Ebitda margin already bottomed-out in early part of CY24 and should further improve
Mgmt. is prioritising growth over margins.
Jefferies on ONGC
Buy, TP cut to Rs 385 from Rs 410
Recent regulatory actions bode well for improved profitability.
Likely ramp-up in KG basin production in 4QFY25/1QFY26 a key trigger for stock
Stock trading at 6x fwd PE
UBS on Bandhan BK
Neutral, TP cut to Rs 185 from Rs 230
Earnings to remain under pressure
MFI stress to drive higher credit costs & lower NIMs
BK's MFI PAR 1-90 was at 3.3% in Q2; Industry at 5.4% in Nov
Cut EPS by c11% as raise credit costs & reduce NIMs
Citi on TVS Motors
Maintain Sell, target price at Rs 1700
Domestic 2Ws stay flat while exports see an uptick
Export 2W volumes saw strong 29%YoY growth (+11%MoM)
Scooter volumes rose a healthy 96097 30% YoY (-19%MoM)
E2W (iQube) volumes rose 79% YoY (weak base)
Citi on Eicher Motors
Maintain Buy, TP 5350
Royal Enfield reported robust volumes in December at 79,466 units (+25%YoY; -3%MoM).
A strong December volume print indicates favorable inventory levels post festive season,
Something that mgmt had alluded to in 2QFY25 post-results conference call
Bus volume growth higher than goods CV volume growth.
MS on DMART
Maintain Underweight, target price at Rs 3702
Weak growth trends continue
Standalone 3Q revenue of Rs 155.7bn was up 17.5% YoY, ~1% above expectations
Top-line growth was led by an average 12% increase in store count count
SSSG (implied) of ~5.5% vs. estimate of +4%
Five-year CAGR at 18.2% was lower than F2Q's 18.8% (SSSG)
Growth trend remains well below the historical 20% top-line growth algorithm for the business
Macquarie on DMART
Maintain Underperform TP 3700
General merchandise/apparel sales recovery aided the 3Q sales print
Worry that competitive headwinds from quick commerce is weighing on growth momentum
Sales growth recovers closer to 1QFY25 levels
At 10-store additions are in line with our estimate
Company guided for 3Q standalone sales of Rs15570cr, with a total store count of 387
Typically, 3Q sees a sequential pickup in gross margin given better product mix
CLSA on DMART
Maintain Outperform, TP 5360
Revenue growth in line with consensus
The implied sales per average store for DMart was at Rs407m for the quarter versus Rs376m in 2QFY25 and Rs391m in 3QFY24.
HSBC on PI Industries
Hold Call, Target Cut To Rs3,800/Sh From Rs4,000/Sh
Difficult Times For Pyroxasulfone Which Increases Risk For Export Growth Prospects
Exports Already Reflecting Weakness
Co Has Entered Uncertainty Zone As Core Biz Remain Muted While New Biz Is Taking Time To Scale
MS on PNB
Underweight Call, Target At Rs95/Sh
Q3F25 Initial Update Is A Positive Surprise
Volume Growth Was Much Stronger Than Expected
Domestic CD Ratio At 72% Stayed Lower Than The System
Brokerages take on ITC Hotels/ITC Price
Nomura: ITC Hotels to list at Rs200-300, market cap of Rs42,500-60,000 cr
Centrum Broking: TP of Rs583 on ITC, would adjust Rs17/share post demerger
Nuvama: Initial market price for ITC Hotels to range between Rs150-175; ITC’s price to be adjusted by Rs22-25 post demerger
SBI Securities: Implied fair value of ITC Hotels between Rs113-170; Adjusted price of ITC post demerger: Rs470-473
Equity:
Nifty closed @24189 (+446) and Sensex @79,944 (+1436) on Thursday GIFT Nifty was trading at 24 191 (as of 7:30 a.m.)
FIIs net bought equities in cash to the tune of Rs 1506 cr whereas DIIs bought equities in cash worth Rs 22 cr on January 2 2025
Mukesh Ambani is said to be preparing to get Reliance Jio listed to raise around Rs 35000-40000 cr marking one of the largest IPOs in Indian history, set for the second half of 2025
Can't take action unless there is clear proof Naidu on Adani deal
Hyundai to launch electric Creta with 2 battery options
Vodafone Idea is set to launch 5 G services as it has finalised 3 6 billion worth of contract to enhance 4G network and deploy 5 G infrastructure
Work demand under MGNREGS rises again in Dec
Over half the respondents in RBI's systemic risk survey do not expect a revival in private capex
Royal Enfield reported a 25% YoY rise in total sales at 79,466 units in December 2024 as compared to 63,387 units in Dec 2023
TVS Motor Company reported a 7% increase in total sales at 321,687 units in December 2024
Waaree Energies has secured an order to supply solar modules totalling a capacity of 150 MWp for a major renewable project in India
Infosys, TCS among top 5 global H1-B beneficiaries
Avenue Supermarts Q3FY25 revenue increases 17.5% YoY
Blinkit starts 10 min ambulance service in select areas of Gurugram
Ashok Leyland reported a 5% increase in total sales to 16,957 units in December 2024 compared to 16,154 units a year ago
Indian ADRs: Infosys (+3.2%), Wipro (+0.8%) and Dr Reddy's (-0.8%)
Debt:
India’s 10 yr G-sec yield rose by 1 bps to 6.79% on Thursday
India’s Manufacturing PMI fell to a 12-month low of 56.4 in Dec’ 24 from 56.5 in Nov’ 24
Banks have urged RBI to inject liquidity using forex swaps as short term currency financing costs surged to a 4 year high, reported Business Standard
ICRA has reduced its bank credit growth estimate to 10.5-11% for FY25 from its earlier forecast of 11.6-12.5% citing a reduction in industry’s exposure to unsecured retail and NBFC sectors
During a pre Budget consultation, Finance Industry Development Council (FIDC) has called for major reforms to ease operational burden and improve liquidity for NBFCs
Commodities
Brent crude was up by 1.8% to $75.95/barrel on Thursday as investors returned for the first trading day of 2025 with an optimistic eye on China's economy and fuel demand after a pledge by President Xi Jinping to promote growth
Gold futures settled higher fuelled by safe haven buying Spot gold was up by 1.3% to $2,658.49 oz on Thursday
Indian mills have produced 9 54 MMT of sugar since the season began on Oct 1 down 15.5% YoY, as cane yields fell in the three biggest producing states
China's iron ore imports are likely to hit a new high in 2025 as traders stockpile cheap ore despite a protracted property crisis continuing to weigh on Chinese steel demand
Currency:
Rupee fell by 11 paise and settled at all time low of 85.76 against the US dollar on Thursday, due to a widened arbitrage between the non deliverable and outright forwards market
US Dollar Index (DXY) appreciated by 0.77% to end at 109.32 on Thursday, after the US jobless claims data came in at 211K lower than expected 222K
EUR/USD fell by 0.95% to end at 1.0257 on Thursday, as the S&P Global Flash UK Manufacturing PMI fell to 47 in Dec’ 24 from 48 in the previous month
USD/JPY appreciated by 0.22% to end at 157.62 on Thursday, as the Fed is expected to reduce interest rates gradually this year
International Markets:
U S markets fell on Thursday with the Dow Jones, S&P 500 and Nasdaq down by 0.36%, 0.20% and 0.16% respectively U S futures are trading up by 14-31 bps at the time of writing the report
U S initial Jobless claims declined to an eight month low of 211,000 for the week ended 28 Dec from 220,000 the prior week Economists polled by Reuters had expected jobless claims to rise 222,000
Chinese Caixin China General manufacturing PMI, declined to 50.5 in Dec 24 from 51.5 in Nov 24 and below expectations of 51.5
Eurozone manufacturing PMI, declined to 45.1 in Dec 24 from 45.2 in Nov 24 and was marginally below expectations of 45.2
U S manufacturing PMI declined to 49.4 in Dec 24 from 49.7 in Nov 24 Economists polled by Reuters had expected the manufacturing PMI to decline to 48.3

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