IndiGo CEO Ronojoy Dutta Steps Down
IndiGo CEO Ronojoy to step down on September 30.
Former KLM Royal Dutch Airlines CEO Pieter Elbers named new CEO.
Source: Exchange filing
Vedantu Lays Off 424 Employees
Edtech unicorn Vedantu lays off 424 employees, about 7% of the company's workforce.
“War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures with massive correction in stocks globally and in India as well. Given this environment, capital will be scarce for upcoming quarters,” CEO Vamsi Krishna said.
Source: Vedantu blog
India 10-Year Bond Yield Falls
10-year bond yield fell 3bps to 7.34% during the session.
The yield on the 10-year bond trimmed its losses to close at 7.35%.
Source: Bloomberg
Rupee Erases Gains Against Dollar
Indian currency appreciated 0.12% to 77.47 during the session.
Rupee pared all the gains to close little changed at 77.58
Source: Bloomberg
Closing Bell
India's stock benchmarks snapped two-day winning streak in a volatile session. The Sensex and Nifty reversed nearly 1% gains as fall in telecom, realty, metals and consumer durables offset the rise in fmcg and healthcare stocks.
The Sensex fell 0.20% to 54,208.53. The 30-stock gauge gained over 460 points to an intraday high of 54,786. The Nifty also declined by similar magnitude to 16,240.30.
The S&P BSE MidCap almost mirrored its larger peers while the S&P BSE SmallCap outperformed Sensex and Nifty, rising 0.33%. Sixteen of the 19 sectoral indices declined with S&P BSE Realty losing nearly 2% and S&P BSE Telecom falling 1%.
The market breadth is skewed in the favour of bulls. About 1,920 stocks advanced, 1,429 declined and 117 remained unchanged.
Bharti Airtel CEO Gopal Vittal Speaks At Earnings Webinar
Key Takeaways
Expect moderate 5G rollout in India in the coming year.
TRAI’s airwave auction reserve price was disappointing.
Mobile tariffs at current levels are very low.
Expect at least one round of tariff hike this year.
Source: Airtel Q4 earnings webinar
Sun Pharma Introduces Oral Lipid-Lowering Drug In India
Sun Pharmaceutical Industries announced the launch of Bempedoic Acid, its first-in-class oral drug to reduce low-density lipoprotein cholesterol in India.
The drug, launched by one of Sun Pharma's wholly owned subsidiaries, will be sold under the brand name "Brillo".
The drug is indicated for people who have an inherited genetic disorder that causes high cholesterol levels or established heart disease where cholesterol remains high.
Source: Exchange filing
Ethos IPO Subscribed 21% So Far On Day 1
Also Read: Ethos IPO Subscription Status: Day 1 Updates
Paradeep Phosphates IPO Subscribed 43% So Far On Day 2
Teamlease Erases 15% Gains On Q4 Miss
Shares of Teamlease Services pared nearly 15% gains after the company reported net income that missed the average analyst estimate, during market hours on Wednesday.
The staffing and human resources services provider reported net profit of Rs 30.86 crore compared to Bloomberg Consensus Estimate of Rs 34.83 crore.
Q4FY2021-22 (Consolidated, YoY)
Net income up 63% at Rs 30.86 crore Vs Rs 18.91 crore
Revenue up 36% at Rs 1,817.41 crore Vs Rs 1,340.53 crore
Ebitda up 58% at Rs 41.03 crore Vs Rs 26.11 crore
Ebitda margin at 2.26% Vs 1.95%
Company named Rituparna Chakraborty as its Executive Director.
Trading volume on the stock is 3.6 times the 30-day average. Of the 15 analysts tracking the company, 12 maintain 'buy', one suggests 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 37.4%.
Source: Exchange filing, Bloomberg
Aditya Birla Capital Trims Losses Post Q4 Results
Q4FY22 (Consolidated, YoY)
Revenue up 25% at Rs 2282.83 crore Vs Rs 1821.58 crore (BBG Estimate: Rs 2403.10 crore)
Net profit at Rs 31.9 crore Vs net loss of Rs 195.86 crore (BBG Estimate: Net loss of Rs 29 crore)
EBITDA up 59% to Rs 373.02 crore Vs Rs 235.91 crore (BBG Estimate: Rs 288.95 crore)
Margins at 16.3% Vs 12.9% (BBG Estimate: 12%)
Source: Exchange filing
Metropolis Healthcare Falls Most In Over Three Months To 52-Week Low
Shares of Metropolis fell over 9%, the steepest decline in over three months to a 52-week low.
Trading volume on the stock is 3.5 times the 30-day average. The relative strength index on the stock is 20, suggesting it may be oversold.
The healthcare services provider that offers pathology tests, imaging, clinical trials and home healthcare services was the top loser in S&P BSE Healthcare index.
Of the 16 analysts tracking the company, 11 maintain 'buy', two suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 37.3%.
The fall in diagnostics stocks like Metropolis comes amid a report by The Economic Times citing sources that it did not identify. According to the report, Goldman Sachs is in advanced talks to invest Rs 2,700 crore ($350 million) in API Holding, parent of online pharmacy PharmEasy, in a structured debt transaction.
Source: Bloomberg
India 10-Year Bond Yield Pares Gains
Yield on the 10-year bond rose 3bps to 7.34% during the session.
The 10-year bond yield trimmed the gains during the session to 7.36%.
Source: Bloomberg
Rupee Littlechanged Against The Dollar
Rupee Erases Gains Against The Dollar
The Indian currency rose 0.12% to 77.47 during the session.
Source: Bloomberg
European Markets Decline
European markets decline after U.K. inflation soared to a 40-year high in April.
Source: Bloomberg
Cabinet Grants More Autonomy To Board of Directors Of Parent CPSEs In The Disinvestment Process
The Cabinet has approved the proposal for the Board of Directors of the Holding / Parent Public Sector Enterprises to recommend and undertake the process for Disinvestment
This includes the strategic disinvestment and minority stake sale or closure of any of their subsidiaries / units / stake in Joint ventures which previously required approval from the cabinet and the CCEA.
The Cabinet has empowered Alternative to accord ‘in principle’ approval for disinvestment.
Source: Press Information Bureau
Sugar Stocks Rise As Cabinet Advances 20% Ethanol Blending Target In Petrol To 2025-26 From 2030
Cabinet Approves Amendments To The National Policy On Biofuels - 2018
Key Amendments
1. To allow more feedstocks for production of biofuels
2. To advance ethanol blending target of 20% blending of ethanol in petrol to 2025-26 from 2030
3. To promote production of biofuels in the country under Make in India programme
4. To add new members to NBCC
5. To grant permission for export of biofuels in specific cases and
6. To delete/amend some phrase in the policy in line with the decisions of National Biofuel Coordination Committee.
Source: Press Information Bureau
Talking Point: Shankar Sharma Discusses Plans To Make Money In The Current Scenario
Q4 Results: Growth Drivers Of Nazara Technologies For FY2022-23
Mid-Day Market Update: Sensex, Nifty Erase Gains; Power Grid, BPCL, Tata Motors Fall
India's stock benchmarks erased nearly 1% gains, as rise in fmcg, power and pharma stocks were offset by the fall in realty, metal and telecom stocks.
The S&P BSE Sensex was little changed at 54,275.33. The NSE Nifty 50 also erased all the intraday gains at 16,256.75.
The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, gaining 0.25%. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty index losing over 1.6%.
The market breadth was skewed in the favour of bulls. About 1,835 stocks advanced, 1,399 declined and 152 remained unchanged.
RHI Magnesita Rises On MSCI Index Inclusion
Shares of RHI Magnesita India Ltd. headed for a fourth day of gains following its inclusion in the MSCI India Small Cap Index.
Shares of the miner rose as much as 8.4%, the highest since April 28.
Trading volume is nearly twice the 30-day average. Share price crossed above 50-day simple moving average, suggesting potential upward price momentum.
Source: Bloomberg
Ruchi Soya To Acquire Food Retail Business Of Patanjali Ayurved For Rs 690 Crore
Ruchi Soya will acquire the food retail business of Patanjali Ayurved along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra.
The acquisition will be done at Rs 690 crore in three tranches.
Ruchi Soya to change its name to Patanjali Foods Ltd.
The acquisition is likely to be completed by July 15, 2022
Source: Exchange filing
Aurobindo Pharma Gains As U.S. FDA Concludes Assessment With 'No Remaining Deficiencies'
Aurobindo Pharma has said that the U.S. FDA has concluded its assessment at Unit - 5, one of the company's facilities, with 'no remaining deficiencies'. The U.S. drug regulator conducted its inspection at the plant between Feb. 8 and Feb. 22. The U.S. FDA had issued Form 483 with five observations following the inspection.
Shares of Aurobindo Pharma rose nearly 5%, the most in nearly two months. The relative strength index is 20, suggesting it may be oversold.
Of the 33 analysts tracking the company, 28 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 49.8%.
Source: Exchange filing, Bloomberg
PI Industries Climbs After Q4 Results
Shares of PI Industries rose nearly 5% in intraday trade after the company reported YoY growth in consolidated net profit, revenue and Ebitda for the quarter-ended March post market hours on Tuesday.
Ebitda margin expanded to 21.86% compared to 19% YoY. PI Industries has also recommended a final dividend of Rs 3 per share.
Analysts at Motilal Oswal noted that the operating performance in Q4 exceeded expectations and volume growth, price increase drove revenue growth. Motilal Oswal maintains 'buy' on the stock with target price unchanged at Rs 3,332.
Trading volume on the agri, fine chemicals maker is more than six times the 30-day average. Of the 28 analysts tracking the company, 21 maintain 'buy', four suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 22%.
Source: Exchange filing, Bloomberg, Motilal Oswal note
Nifty Pharma Rises, 16 Of The 20 Constituents Advance
NSE Nifty Pharma index rose over 1%, aided by gains in Biocon, Granules and Cipla.
Sixteen of the 20 constituents of the Pharma index advanced.
Source: Bloomberg
Indoco Remedies Jumps Over 10% In Two Days Since Q4 Results
Shares of specialty and generic pharma firm Indoco Remedies rose for the second day. The stock has risen over 10% in two days. The company reported growth in net profit, revenue and Ebitda for the quarter-ended March during market hours on Tuesday.
Q4FY2022-23 (Consolidated, YoY)
Net profit up 62% at Rs 40.45 crore Vs Rs 25 crore
Revenue up 36% at Rs 400.52 crore Vs Rs 295.1 crore
Ebitda up 47% at Rs 80.54 crore Vs Rs 54.72 crore
Ebitda margin at 20.11% Vs 18.54%
The company recommended a dividend of Rs 2.25 per share (including a special dividend of Rs 0.75) on face of Rs 2 each for FY2021-22, subject to shareholders' approval.
Analysts expect the growth momentum to sustain and cited performance in anti-infective, cardiac and respiratory segments to drive growth. Prabhudas Lilladher upgraded the stock to 'buy' from 'accumulate' and termed the valuations 'attractive' after the recent correction.
Trading volume is more than 14 times the 30-day average. Of the 10 analysts tracking the company, eight recommend 'buy' and two suggest 'hold'. The return potential of the stock is 30.2%.
Source: Exchange filing, Brokerage note, Bloomberg
DLF Rises As Analysts Expect Residential Sales Momentum To Remain Intact In FY23
Shares of DLF Ltd. rose over 3.2%, the most in two days, after the company reported YoY residential pre-sales growth of 158% in Q4.
Q4 FY22 (Consolidated, YoY)
Revenue fell 9.65% at Rs 1,547.26 crore
EBITDA fell 19% at Rs 367.54 crore
EBITDA margin at 23.75% vs 26.50%
Net profit fell 15.7% to Rs 405.33 crore
Recommended dividend of Rs 3 per share
Analysts expect the residential sales growth to witness steady momentum in FY23 as competition is low and demand remains strong.
Trading volume is more than quadruple the 30-day average. Of the 22 analysts tracking the company, 19 maintain 'buy', two suggest 'hold' and one recommends 'sell'. The return potential of the stock is 32.1%.
Source: Exchange filing, Bloomberg, Brokerage note
Bharat Rasayan Loses 4% After Reporting Fire Accident At Bharuch Plant In Gujarat
Shares of Bharat Rasayan fell over 4% after the company reported a fire accident at its Bharuch plant in Gujarat, post market hours Tuesday.
About 8-10 people have sustained injuries and are receiving treatment at the local hospital.
The cause of the fire is under investigation. Bharat Rasayan said that the company has full insurance coverage to cover the damages.
Trade volume on the pesticides and agrochemicals maker is more than twice the 30-day average.
Source: Exchange filing, Bloomberg
Nucleus Software Surges Most In 11 Months After Q4 Results
Shares of Nucleus Software Exports surged 16.72%, the most in over 11 months since June 11, 2021 after the company reported sequential growth in net income, revenue for the quarter-ended March, post market hours on Tuesday.
Q4FY22 (Consolidated, QoQ)
Revenues up 25.9% at Rs 153 crore vs Rs 121.6 crore
EBIT margins at 13% vs 3%
PAT up 127% at Rs 18.3 crore vs 8 crore
Net income more than doubled in Q4. The margin beat was due to higher operating leverage. The company also declared a final dividend of Rs 7 per equity share for FY2021-22, subject to shareholders' approval.
Trading volume is more than 23 times the 30-day average. Share price rose above 50-day simple moving average, indicating potential upward price momentum.
Source: Exchange filing, Bloomberg
Adani Wilmar Shares Hits 5% Upper Circuit For Second Day In A Row
Shares of Adani Wilmar hit 5% upper circuit for the second successive session.
ICICI Securities initiated coverage of the stock with a 'hold' recommendation. The price target is set at Rs 550, an implied downside of 4.75%.
ICICI Securities believes that Adani Wilmar has an edge over competition due to advantages like price-laddering, oil segments, scale, market intelligence in edible oil.
The brokerage believes that edible oil, packaged foods and industrial essentials segments have significant synergies for the company.
ICICI Securities says that while the long-term opportunity in Adani Wilmar is in tact, the higher valuation multiple restricts ability to have a positive stance on the stock.
Of the six analysts tracking the company, three maintain 'buy', two suggest 'hold' and one recommends 'sell'. The return potential of the stock is 1.5%.
Source: Brokerage note, Bloomberg
Dr. Lal Pathlabs Slips To 19-Month Low On Q4 Miss
Shares of Dr. Lal Pathlabs fell over 6.8%, the steepest intraday day decline in over nine months. The stock hit an intraday low of Rs 2,035.7, a 19-month low.
The decline comes after Dr. Lal Pathlabs reported net income and revenue for the quarter-ended March that missed the average analyst estimate, post market hour Tuesday.
Trading volume on the stock is nearly eight times to 30-day average. The return potential of the stock is 22, suggesting it may be oversold.
Of the 21 analysts tracking the company, nine maintain 'buy', four suggest 'hold' and eight recommend 'sell'. The return potential of the stock is 37.8%.
Source: Exchange filing, Bloomberg
NOCIL Jumps To Six-Month High After Q4 Results
Shares of NOCIL rose nearly 9%, the most since March 31 to a six month high. NOCIL reported 85% YoY rise in net profit in Q4 while Ebitda more than doubled.
Trading volume on the chemicals maker is nearly 14 times the 30-day average.
Share price crossed above the 200-day simple moving average, suggesting potential upward price momentum.
All nine analysts tracking the company suggest 'buy'. The return potential of the stock is 20.5%.
Source: Exchange filing, Bloomberg
India Bond Yield Falls
Yield on the 10-year bond lost 2bps to 7.34% during the session.
Source: Bloomberg
Rupee Rises Against The Dollar
Indian currency gained 0.10% to 77.49.
Source: Bloomberg
Indian Oil Falls Most In Over Three Weeks
Shares of Indian Oil Corp Ltd. fell 4%, the steepest intraday decline in over three weeks after the company reported net income for the quarter-ended March that missed the average analyst estimate, post market hours Tuesday.
Trading volume is nearly eight times the 30-day average.
Most analysts reiterated 'buy' on Indian Oil despite the Q4 miss on attractive valuations and potential benefits from uptick in refining margin.
Of the 35 analysts tracking the company, 27 maintain 'buy', six suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 24.2%
Source: Bloomberg, Exchange filing, Brokerage notes
Bharti Airtel Rises Most In Four Weeks
Shares of Bharti Airtel jumps over 2.8%, the most in four weeks, after the company reported net profit for quarter-ended March that beat average analyst estimate.
Airtel's net profit more than doubled, aided by tariff hikes and 4G customer addition.
Of the 34 analysts tracking the company, 30 maintain 'buy', three suggest 'hold' and one recommends 'sell'. The return potential of the stock is 24.1%.
Source: Exchange filing, Bloomberg
Opening Bell: Sensex, Nifty Open Higher; Bharti Airtel Gains
India's stock benchmarks rose, aided by gains in telecom and information technology stocks, amid a rebound in global equities.
The S&P BSE Sensex rose over 0.5% to 54,601.50. The NSE Nifty 50 also advanced by similar magnitude to 16,354.95.
The broader indices almost mirrored their larger peers. Sixteen of the 19 sectoral indices advanced with S&P BSE Telecom adding 1%.
The market breadth was skewed in the favour of bulls. About 1,758 stocks advanced, 483 declined and 73 remained unchanged.
Key Earnings On Wednesday
Trade Setup For Wednesday
Earnings Today
Aditya Birla Fashion and Retail
Barbecue Nation Hospitality
Arvind Ltd.
Brookfield India Real Estate Trust REIT
Finolex Industries
Gujarat Pipavav Port
Granules India
Indraprastha Gas
InterGlobe Aviation (IndiGo)
Indian Overseas Bank
ITC Ltd.
JK Lakshmi Cement
LIC Housing Finance
Lupin
Manappuram Finance
Navneet Education
Pidilite Industries
Route Mobile
Sandur Manganese & Iron Ores
Shyam Metalics and Energy
TeamLease Services
Westlife Development
Stocks To Watch
Motilal Oswal: The brokerage has approved buyback of 14.54 lakh shares at Rs 1,100 per share.
Jet Airways: The airline successfully conducted proving flights over two days. It expects to get the air operator certificate from DGCA.
Bharat Rasayan: A fire occurred at one block of the Dahej plant, and the cause of fire is under investigation. The company has full insurance coverage for the same.
TVS Motor: The company will divest its entire stake in Intellicar to Fabric IOT for Rs 45 crore. The divestment is part of the creation initiatives on its digital portfolio, said Rajesh Narasimhan, Director and CEO of TVS Digital.
Zydus Lifesciences: The company will consider buyback of shares on May 20.
EKI Energy: The company approved migration of from SME platform of BSE to Main Board of BSE.
Earnings Post Market Hours
Bharti Airtel Q4 FY22 (Consolidated, QoQ)
Revenue up 5.47% at Rs 31,500 crore
EBITDA up 9.1% at Rs 16,040 crore
EBITDA margin 50.92% vs 49.23%
Net profit up 142% at Rs 2,007.8 crore
ARPU up 7.2% at Rs 178 vs Rs 163
Appoints two new independent directors
Indian Oil Q4 FY22 (Consolidated, YoY)
Revenue up 26.14% at Rs 2,09,049.16 crore
EBITDA down 0.47% at Rs 14,272.63 crore
EBITDA margin 6.83% vs 8.65%
Net profit down 26.38% at Rs 6,645.72 crore
Recommended issue of bonus shares in the ratio of 1:2
Recommended final dividend of Rs 3.6 per share
Dr. Lal Pathlabs Q4 FY22 (Consolidated, YoY)
Revenue up 13% at Rs 486 crore
Net profit down 27% at Rs 61 crore
EBITDA fell 1% to Rs 121 crore
EBITDA margin at 24.9% vs 28.3%
EPS at Rs 7.41 per share Vs Rs 10.1
PI Industries Q4 FY22 (Consolidated, YoY)
Revenue up 16.5% at Rs 1,395.2 crore vs Rs 1,197.1 crore
EBITDA up 34.12% at Rs 305 crore vs Rs 227.4 crore
EBITDA margin at 21.86% vs 19%
Net profit up 13.68% at Rs 204.4 crore
Recommended final dividend of Rs 3 per share
DLF Q4 FY22 (Consolidated, YoY)
Revenue fell 9.65% at Rs 1,547.26 crore
EBITDA fell 19% at Rs 367.54 crore
EBITDA margin at 23.75% vs 26.50%
Net profit fell 15.7% to Rs 405.33 crore
Recommended dividend of Rs 3 per share
GMR Infrastructure Q4 FY22 (Consolidated, YoY)
Revenue fell 17.48% at Rs 1,283.6 crore
EBITDA fell 32% to Rs 534.15 crore
EBITDA margin at 41.61% vs 50.5%
Net loss at Rs 128.95 crore vs Rs 723.36 crore
EID Parry (India) Q4 FY22 (Consolidated, YoY)
Revenue up 46.19% at Rs 5,667.34 crore
EBITDA up 128.5% at Rs 619.04 crore
EBITDA margin at 10.92% vs 7%
Net profit at Rs 302.52 crore vs net loss of Rs 6.34 crore
IRB Infrastructure Developers Q4 FY22 (Consolidated, YoY)
Revenue fell 10.72% at Rs 1,433.62 crore Vs Rs 1,605.84 crore
EBITDA fell 15.6% at Rs 641.58 crore Vs Rs 760.08 crore
EBITDA margin 44.75% Vs 47.33%
Net profit fell 26.22% at Rs 162.07 crore Vs Rs 219.68 crore
Jubilant Ingrevia Q4 FY22 (Consolidated, YoY)
Revenue up 89.4% at Rs 1,295.75 crore
EBITDA up 12% at Rs 142.37 crore
EBITDA margin at 11% vs 18.58%
Net profit up 26.18% at Rs 68.59 crore
NOCIL Q4 FY22 (Consolidated, YoY)
Revenue up 43.7% at Rs 462.74 crore
EBITDA up 111.58% at Rs 114.93 crore
EBITDA margin at 24.84% vs 16.87%
Net profit up 84.62% at Rs 68.92 crore
Recommended dividend of Rs 3 per share
Minda Corp. Q4 FY22 (Consolidated, YoY)
Revenue up 19.35% at Rs 947.76 crore
EBITDA up 21.08% at Rs 107.74 crore
EBITDA margin 11.37% vs 11.21%
Net profit up 39% at Rs 75.86 crore
Recommended final dividend of Rs 0.7 per share
Sensex, Nifty Set To Fall; Bharti Airtel, Indian Oil, Dr. Lal Pathlabs, DLF, ITC In Focus
Asian stocks rose on Wednesday after a rally in U.S. stocks amid hopes of an easing crackdown on Chinese technology firms.
Treasuries fell after U.S. Federal Reserve Chair Jerome Powell said the central bank "won't hesitate" to tighten monetary policy beyond neutral to address inflation under control.
Equity advanced in Japan and Australia. U.S. futures gained after the S&P 500 and Nasdaq 100 added at least 2%. The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, fell 0.24% to 16,229.50 points as of 8:00 am.
Crude rose to $114 per barrel. Bitcoin hovered around $30,300.
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