Market Highlights

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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October 18, 2024

• News Headlines from Business News Agencies:
• Business Standard
• Veteran oil and gas exec Naresh Nayyar appointed to board of EET Fuels
• Infosys boosts headcount by 2,456 in Q2, reversing earlier staff cuts
• Secondary long steel makers likely to see 7% rise in FY25 revenues: CRISIL
• Indian CDMOs could account for up to 10% of global outsourced work by 2033
• Nokia cuts 2,000 jobs in China, 350 in Europe as part of restructuring
• Hyundai submits PFR to take up modernisation of TN plant for Rs 1,500cr
• RBI bars four non-bank lenders from issuing loans for breaching norms
• LIC Housing Finance accepts bids worth Rs 1,300 cr for 5-year bonds: Report
• J&K's 5.9 mn tonne lithium reserve to be re-explored after failed auction
• NFRA chairman Pandey stresses the need to adopt global audit standards
• Borosil urges govt on imposing anti-dumping duty on Chinese solar glass
• Mumbai property registrations grow 13% during Navratri: Knight Frank
• Economic Times
• Cargo volume at 12 major ports rises 5% to 413.747 MMT in September: Ports ministry
• Axis Bank issues over 1 million credit cards in Q2 FY25 as trend picks up with festive season
• Zomato board to consider fundraising via QIP on October 22
• CIEL HR Services acquires talent assessment firm Thomas Assessment
• Tata Communications Q2 results: Cons PAT rises 3% YoY to Rs 227 crore but declines 32% QoQ
• Trend towards mass casualization to fuel growth of Foot Locker in India, says global chief
• ITC Limited launches 9.45 MW solar plant in Karnataka to boost renewable energy goals
• Mutual Fund AUM at all-time high of Rs 67.90 lakh crore in September: AMFI
• Slice raises $8.5 million from founder Rajan Bajaj
• Ampin Energy Transition gets Rs 742 cr loan from Standard Chartered Bank
• Maruti Suzuki's Manesar plant becomes fastest to hit 1 crore production milestone globally
• Mint
• Pushed by finance ministry, ONGC to reduce arbitration, use IIAC services
• Indian Overseas Bank Q2 results: Profit rises 24% to ₹777 crore
• Infinix Zero Flip launched in India with MediaTek Dimensity 8020 chipset
• Nestle India says it will soon launch Cerelac variants with no refined sugar
• Central Bank Q2 Results: Net profit surges 51% to ₹913 crore, NII up 13% YoY
• Quantum computers may soon outclass traditional ones, says IBM fellow
• IRCTC booking: Advance reservation period for railway tickets reduced to 60 days
• Havells Q2 results: Net profit rises 7.5% to ₹268 crore, revenue up 16% YoY
• Consumers must get incentives to buy energy-efficient cooling appliances: Godrej
• Warner Music India eyes position in top 3 by next year
• Zomato board to consider raising funds via QIP on October 22
• Integrum Energy Infrastructure files draft papers with BSE for SME IPO
• China announces fresh round of measures to boost property sector
• Infosys Review
• MS
• OW, TP Rs 2150
• With a slight miss in 2Q revenue & weak deal wins, see a slight stock correction as possible in near term
• See support at five-year average FCF multiple (24x) – i.e., at Rs1780
• Build positions on any potential correction
• CITI
• Neutral, TP Rs 1960
• Decent Q2 – cc +3.1% qoq, flattish margins; revenue guidance upper end raise – better than peers.
• Forward looking indicators –
• a) Large deal TCV – down 7.4% TTM yoy
• b) Headcount -3% yoy
• c) Guidance implies no growth in 3Q/4Q at mid-point
• Wipro Review
• Jefferies
• U-P, TP Rs 465
• 2Q beat est
• Margins performance supported by one-offs ex. of which they would be down 90bps QoQ.
• While management reiterated green shoots in Capco/BFSI, broad-based revenue pressures, disappointing 3Q guidance suggest a weak growth outlook
• CITI
• Sell, TP Rs 500
• Decent 2Q with both revenues & margins slightly above expectations
• However, forward looking indicators still look weak–
• a)Revguidance implying 1% qoq decline in 3Q at midpoint
• b)Headcount decline of 4.4% yoy
• c)Overall TTM TCV decline of 11% yoy
• Nomura
• Buy, TP Rs 680
• Strong large deal win momentum in 2Q
• 3Qguidance reflects weak seasonality
• 2QFY25 beat across all parameters
• Discretionary demand showing early signs of a recovery
• Stock is trading at 19.2x FY27F EPS
• LTMindtree Review
• CITI
• Sell, TP Rs 5710
• Reported an inline Q2, on growth & margins.
• Forward looking indicators –
• (a) Deal TCV steady at $1.3b, +5% yoy on LTM basis;
• (b) Headcount +1% yoy;
• (c) Management commentary “cautious optimistic”.
• MS
• OW, TP Rs 7050
• A lack of +ve surprises in 2Q & softer than expected commentary on 3Q could drive near-term stock weakness
• However, broader recovery trends are intact with BFSI momentum sustaining, a large deal pipeline, & strong headcount additions
• Axis BK Review
• MS
• OW, TP Rs 1445
• 2Q: Asset quality improves
• Stock has underperformed Bankex since 1QF25 owing to asset quality concerns
• 2Q better, with credit cost much lower QoQ
• Bank used one-off gains to lift contingency provisions
• Core rev growth stays muted
• Nomura
• Buy, TP Rs 1380
• 2Q: Steady qtr amid muted expectations
• Loan/deposit growth soft q-q but in-line; higher write-offs, lower net slippages aid GNPLs
• Treasury gains offset softer core PPOP; one-off tax gains used to shore up provision buffers
• MS on Manappuram Fin
• Downgrade to EW, TP cut to Rs 170
• RBI's embargo on new biz by Asirvad could hurt profits materially & for longer
• Cut consol earnings forecasts 20% for F25 & 30% across F26-27
• Standalone val remains cheap
• Think investor interest could take long to return
• Jefferies on Manappuram Fin
• Downgrade to hold, TP cut to Rs 167
• RBI's ban on disbursement of loans by cos subsidiary Asirvad (27% of consol AUM
• Cut FY25-27E EPS by 11-19%
• Shares may be under pressure, but at 0.9x FY26E BV, downside should be ltd.
• CLSA on Tata Com
• O-P, TP Rs 2220
• 2Q consol. rev of Rs57.7bn, up 18% YoY/2% QoQ, was above est.
• Data revenue up 21% YoY/3% QoQ, driven by digital services (46% of data rev) with 52% YoY/4% QoQ growth.
• Consol. Ebitda of Rs11.2bn, up 10% YoY/-1% QoQ, in line
• MS on Tata Chem
• UW, TP Rs 880
• Q2 broadly in-line
• India margins impacted by adverse weather
• US inline & Kenya surprised+vely
• While Co cited balanced market & bottoming in price trends, Chinese capacity ramp up <d. evidence of supply rationalisation limits near-term margin uplift
• Jefferies on Polycab
• Buy, TP Rs 8315
• Q2 PAT in-line
• Co posted its highest-ever Q2 sales
• But OPM was impacted (-290bps YoY) by higher competition and mix change i.e. lower share of higher-margin domestic distribution.
• Exports revived by +36%QoQ
• FMEG loss continues
• CITI on Havells
• Neutral, TP Rs 1950
• Compared to revenue growth of 16% YoY EBITDA/PAT growth weak at 2%/9% YoY (missed Citi est by 19%/17%) due to
• (a) higher ad spends (+70bps YoY);
• (b) volatile RM price (impacting Cables & Wires);
• (c) investment in manpower (+47bps YoY).
• Jefferies on City Gas Co
• With dependence on market-linked gas 50% & rising, CGD players would be forced to defend margins at expense of vol growth
• This could trigger a derating of sector
• Will revisit est after pricing changes by players in coming days
• Emkay on M&M Fin
• Upgrade to buy, TP raised to Rs 360 from Rs 280
• Inflection point around the corner; valuation palatable
• See inflection point in terms of growth, asset quality, & profitability