Sensex, Nifty Make A Strong Comeback After Three-Day Fall

Shares of the cement maker reversed the day’s losses and rose 1.4 percent intraday to Rs 4,254.90 apiece.

Review (Q4, YoY)

• Total income rose 18 percent to Rs 10,500.3 crore
• Ebitda rose 21 percent to Rs 2,213.3 crore.
• Profit after tax doubled to Rs 1,017.50 crore.
• Ebitda margin expanded 70 basis points to 21 percent.
• A dividend of Rs 11.50 per share was declared.

The stock traded 38 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the state-owned lender rose 12.7 percent to Rs 18.25 apiece. The stock was the top gainer on Nifty 500 Index.

The trading volume was more than 11 times the 20-day average for this time of the day, according to Bloomberg data. The relative strength index on the stock was over 70, indicating it may be overbought.

Here’s what the brokerages had to say on the stock:

CLSA

• Maintained ‘Buy’ with target price of Rs 2,000.
• Failed to impress with a miss in Q1 results.
• Volumes inline, but miss on cost and realisation.
• Management is fairly optimistic on cement demand outlook.

JP Morgan

• Maintained ‘Neutral’ with target price of Rs 1,700.
• Operating earnings miss on adverse sales mix and higher costs.
• Miss seems more due to company specific challenges.
• Any price correction in other cement companies to offer buying opportunity.

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Shares of the drugmaker fell 3.8 percent intraday, the biggest slide in over a month, to Rs 835 apiece.

Lupin, in an exchange filing, said the U.S. health regulator had cautioned that the firm's Pithampur facility may be subject to regulatory or administrative action. Also, the regulator may withhold approval of any pending applications or supplements in which this facility is listed, the filing said. Read more here.

The stock traded 38 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the telecom equipment manufacturer rose as much as 4.7 percent, its biggest intraday gain in three weeks, to Rs 217 apiece. The company announced its fourth quarter results on Tuesday.

Review (Q4 Consolidated, YoY)

• Revenue up 111.6 percent to Rs 1791.2 crore.
• Net profit up 47 percent to Rs 165.2 crore.
• Ebitda up 43 percent to Rs 315.1 crore.
• Margin at 17.6 percent versus 26 percent.
• Board approves raising capital NCD issue worth Rs 1000 crore.
• Declares dividend of Rs 3.5 per share.
  

Here’s What Equirus Securities had to say on the stock:

• Maintained ‘Long’; Cut target price to Rs 340 from Rs 350.
• Pressure on optic fibre realisations to continue in near term.
• Services business ramping up much faster than expected.
• Lower valuation multiple to factor moderation in earnings growth.

The trading volume was more than 11 times the 20-day average for this time of the day, Bloomberg data showed.

Indian equity benchmarks opened higher, tracking gains in their Asian peers.

The S&P BSE Sensex rose as much as 0.29 percent to 38,674.10 and the NSE Nifty 50 rose as much as 0.29 percent to 11,608.10. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.27 percent higher.

The market breadth was tilted in favour of buyers. About 968 stocks advanced and 386 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Media Index’s 0.72 percent gain. On the flipside, the NSE Nifty FMCG Index was the only sectoral loser, down 0.10 percent.

On ACC

CLSA

• Maintained ‘Buy’ with target price of Rs 2,000.
• Failed to impress with a miss in Q1 results.
• Volumes inline, but miss on cost and realisation.
• Management is fairly optimistic on cement demand outlook.

JP Morgan

• Maintained ‘Neutral’ with target price of Rs 1,700.
• Operating earnings miss on adverse sales mix and higher costs.
• Miss seems more due to company specific challenges.
• Any price correction in other cement companies to offer buying opportunity.

CLSA on ICICI Securities

• Maintained ‘Buy’; Cut target price to Rs 310 from Rs 360.
• Weak core profits; lower earnings estimates.
• Revenue sharing with ICICI Bank can lift growth at higher cost.
• Uptick in capital market activity and client mining key to growth.

Morgan Stanley on Tata Global Beverages

• Maintained ‘Underweight’ with target price of Rs 165.
• Q4 overall Ebitda below estimates due to decline in domestic tea business
• Strong volume growth and international business were positive
• Volume growth of 12 percent is the highest in 5 years

BofAML on CG Consumer Electricals

• Initiated ‘Buy’ with target price of Rs 267.
• Well placed in lighting and fans; expect 12 percent revenue growth for next 3 years.
• Cost cutting initiatives and supplier consolidation to improve EBIT margins by 100 basis points.
• Current valuation attractive given 20 percent EPS compounded annual growth rate over FY19-21 and 36 percent return on equity.

Equirus Securities on Sterlite Tech

• Maintained ‘Long’; Cut target price to Rs 340 from Rs 350.
• Pressure on optic fibre realisations to continue in near term.
• Services business ramping up much faster than expected.
• Lower valuation multiple to factor moderation in earnings growth.

Investec on Lupin

• Maintained ‘Sell’ with target price of Rs 690
• More FDA action as Pithampur gets OAI; all eyes on Goa classification now.
• Both Goa/Pithampur Unit-2 are critical plants; see no impact on estimates.
• Worry more about product pipeline and slower ramp up in Solosec.

Jefferies on NTPC

• Maintained ‘Buy’; Cut target price to Rs 160 from Rs 171.
• See twin benefits of operational improvement and capacity addition in next 5 years.
• Potential earnings upside of 5-6 percent from power demand driven PLF recovery.
• Favourable regulation largely offset impact of delayed capacity addition.

Morgan Stanley on Oil Retailers

• Retail fuel prices remained largely unchanged, despite 10 percent rise in oil prices.
• Believe OMC marketing margins are similar to earlier state election periods.
• OMCs will recover losses over time, recent sanc

Earnings Reaction To Watch

ACC (Q1CY19 Standalone, YoY)

• Revenue up 8.1 percent to Rs 3919.1 crore.
• Net profit up 38.1 percent to Rs 338.4 crore.
• Ebitda up 8.1 percent to Rs 531 crore.
• Margins flat at 13.5 percent versus 13.8 percent.
• Other Income up 3.3 times to Rs 152.5 crore.
• Realisations/ton up 2.5 percent to Rs 5133.
• Ebitda/ton up 2.3 percent to Rs 708.

ICICI Securities (Q4 Consolidated, YoY)

• Revenue down 20.1 percent to Rs 408.1 crore.
• Net profit down 19.6 percent to Rs 121.5 crore.
• Broking and commission revenue down 19 percent to Rs 383.4 crore.
• Declares dividend of Rs 5.7 per share.

Sterlite Tech (Q4 Consolidated, YoY)

• Revenue up 111.6 percent to Rs 1791.2 crore.
• Net profit up 47 percent to Rs 165.2 crore.
• Ebitda up 43 percent to Rs 315.1 crore.
• Margins at 17.6 percent versus 26 percent.
• Board approves raising capital NCD issue worth Rs 1000 crore.
• Declares dividend of Rs 3.5 per share.

Tata Global Beverages (Q4 Consolidated, YoY)

• Revenue up 4 percent to Rs 1,755.5 crore.
• Net profit down 61.5 percent to Rs 22.9 crore.
• Ebitda up 6 percent to Rs 154.3 crore.
• Margins at 8.8 percent versus 8.6 percent.
• Tax Expense of Rs 58.8 crore.
• Exceptional loss of Rs 8.4 crore.
• Declares dividend of Rs 2.5 per share.
• Tea segment revenue up 6 percent to Rs 1251 crore.
• Coffee Segment Revenue down 2 percent to Rs 282 crore.

Sasken Technologies (Q4 Consolidated, QoQ)

• Revenue up 11.6 percent to Rs 135.5 crore.
• Net profit up 51.9 percent to Rs 27.5 crore.
• Ebit up 2.1 times to Rs 22.6 crore.
• Margins at 16.7 percent versus 9.1 percent.
• Declares Dividend of Rs 7.5 per share.

Nucleus Software Technologies (Q4 Consolidated, QoQ)

• Revenue up 3.3 percent to Rs 127 crore.
• Net profit down 17.4 percent to Rs 17.1 crore.
• Ebit down 2.9 percent at Rs 20 crore.
• Margins at 15.7 percent versus 16.8 percent.
• Declares Dividend of Rs 9 per share.

SORIL Infra Resources (Q4 Consolidated, YoY)

• Revenue down 7.9 percent to Rs 45.6 crore.
• Net profit down 47.2 percent to Rs 4.7 crore.
• Ebitda down 41.8 percent to Rs 6.4 crore.
• Margins at 14 percent versus 22.2 percent.

Indiabulls Integrated Services (Q4 Consolidated, YoY)

• Revenue down 50.7 percent to Rs 50.4 crore.
• Net profit up 57.9 percent to Rs 71.2 crore.
• Other income of Rs 115.7 crore.

Indiabulls Real Estate (Q4, Consolidated; YoY)

• Revenue down 43 percent to Rs 1821.5 crore.
• EBITDA down 94 percent to Rs 165.8 crore.
• EBITDA margin at 9.1 percent vs 82.7 percent.
• Net profit down 95 percent to Rs 108.6 crore.

Coromandel International (Q4 Consolidated, YoY)

• Revenue up 9.4 percent to Rs 2638.1 crore.
• Net profit up 23.2 percent to Rs 110.4 crore.
• Ebitda up 40 percent to Rs 258.8 crore.
• Margins at 9.8 percent versus 7.7 percent.
• Declares dividend of Rs 3.5 per share.
• Inventory loss of Rs 72.7 crore.
• RM as percent of sales 67 percent versus 61 percent.

• Lupin: U.S. FDA classified inspection of company’s Indore Unit 2 Facility as Official Action Initiated. The regulatory body stated that this facility may be subject to regulatory or administrative action and that it may withhold approval of any pending applications or supplements in which this facility is listed. The inspection was conducted by U.S. FDA in the month of January.
• Tata Global Beverages entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries for an aggregate consideration of up to Rs 101 crore. This branded tea business of the target company is carried out under brands ‘Lalghoda’ and ‘Kalaghoda’ in Rajasthan.
• HDFC received the Reserve Bank of India’s nod to acquire up to 9.9 percent stake in Bandhan Bank upon the effective date of the scheme for the amalgamation of its arm Gruh Finance into Bandhan Bank. The Corporation says that the scheme remains subject to approvals from NCLT and shareholders and creditors of both the entities.
• Embassy Office Parks REIT: Board approved raising Rs 3,650 crore via NCDs in two tranches.
• Sasken Technologies: Board approved buyback of 20 lakh shares, representing 11.7 percent of the equity shares of the company at Rs 850 per share aggregating to Rs 170 crore. The buyback price is at a premium of 20 percent as compared to the market prices. Company is sitting on a cash balance of Rs 14.7 crore and Rs 81.1 crore worth of current assets, as on March 31.
• Tata Power arm sold 32MW operating wind assets in Maharashtra. The company said the parties are currently executing conditions for the agreement. The power from these assets are currently tied up with Tata Power Company (Distribution) under a long-term power purchase agreement.
• Allahabad Bank increased its authorized capital from Rs 3,000 crore to Rs 8,000 crore.
• NBCC signs agreement with Mauritius Government for consultancy on construction of three public buildings. These projects are being funded by Exim Bank of India and the cost of these projects stand at $44 million.
• Future Retail received initial warrant subscription price of Rs 500 crore equivalent to 25 percent of the warrant issue price. Board has allotted four crore equity warrants at Rs 505 per share to promoter group Future Coupons on a preferential basis. The company says that the allotment has been made post the approval of Competition Commission of India.
• Dilip Buildcon arm received appointed date (April 22) by NHAI for HAM project in Maharashtra. The project had received financial closure on March 26 and the project stands at Rs 1029.4 crore.
• UCO Bank increases its authorized capital from Rs 6,000 crore to Rs 10,000 crore. Allots 175 crore shares at Rs 19.01 per share to Government of India against capital contribution of Rs 3,330 crore received by the Bank on Feb. 21.
• India Tribunal reserved order on JSW’s offer for Bhushan Power. (Bloomberg News)
• Maruti Suzuki launched New Alto. The company says that the product comes with BSVI compliant engine.
• Birla Corporation to consider raising capital via NCDs on May 3.