Sensex, Nifty Surge For Sixth Day Powered By Auto, Energy Stocks; FPIs Stay Net Buyers

Rakesh Jhunjhunwala’s Rare Enterprises backed Concord Biotech has sought SEBI’s approval to go public.

• Concord’s IPO will be a pure offer-for-sale, selling 2.09 crore shares.

• IT hardware maker Balaji Solutions’ IPO will be a combination of an offer-for-sale and fresh issue.

• The owner of Foxin brand will sell up to 75 lakh existing shares and issue shares worth up to Rs 120 crore.

Source: DRHPs

• July Wholesale Prices rise 13.93% YoY (Bloomberg Estimate: 13.7%)

• Primary article prices rise 15.04% YoY

• Wholesale food prices rise 10.77% YoY

• Fuel, power, lighting prices rise 43.75% YoY

• Manufactured product prices rise 8.16% YoY

Source: Ministry of Commerce & Industry

The broader indices outperformed their larger peers rising over 0.75%. Barring telecom and metal gauges, all the other 17 sectoral measures gained.

The market breadth is skewed in the favour of bulls. About 1,873 stocks rose, 1,542 fell and 182 remained unchanged.

Of the 19 analysts tracking the company, 14 maintain 'buy', four suggest 'hold' and one recommends 'sell'. The return potential of the stock is 13.9%.

Analysts believe that recovery in movie business, improvement in viewership share and high valuations of its IPL team in the recently concluded auctions as positive triggers for the company.

Here's a gist of the brokerages' view of the company's earnings.

Motilal Oswal

• Reiterates 'buy' and hikes target to Rs 550 from Rs 500, an implied upside of 15.26%

• Believes that Q1 performance was healthy despite weakness in ad revenue growth.

• Higher contribution from movie business is a positive factor.

• Loss in market share and delayed OTT investments remain key concerns.

• Believes that upbeat valuation in the auction of new IPL teams makes the stock's valuation compelling.

• Expects Sun TV to maintain growth momentum in viewership.

• Raises FY2022-23 EPS estimate by 4% and factors in 6% CAGR over FY22-24.

Emkay

• Reiterates 'hold' and maintains target price at Rs 470, an implied downside of 1.51%.

• Believes that Sun TV's ad revenue print was better than Zee Entertainment due to improved ad spends by regional advertisers, improvement in viewership share in Tamil and lack of FTA channel-linked impact.

• Strong theatrical revenue from Tamil movie 'Beast' aided movie production segment while weak performance by its IPL team weighed on revenue.

• Expects sustained recovery in ad revenue due to improved spends and stable market share in Tamil.

ICICI Direct

• Reiterates 'hold' and maintains target price at Rs 460.

• Q1 performance was strong from earnings/margin front.

• Believes that overall viewership share improvement is a positive trigger.

• Expects recovery in Tamil/Telugu/Kannada markets in the upcoming quarters.

• See the ramp up in SunNXT content is a positive as the company lags in spending on OTT.

Source: Exchange filing, Brokerage notes, Bloomberg

• Senior Advocate Mukul Rohatgi said some issues between the two sides have been settled.

• Maran and Spicejet are in a dispute related to share transfers since 2017.

• The bench presided by Chief Justice of India Justice NV Ramana adjourned the hearing for four weeks.

Prem Watsa’s Fairfax and Virat Kohi-backed Go Digit has filed its draft prospectus for an IPO.

• The IPO will be a combination of fresh issue of shares and an offer for sale.

• The firm will issue equity shares of up to Rs 1,250 crore and sell 10.94 crore shares.

Source: DRHP

Here's a gist of the brokerages' view of the company's earnings and growth prospects.

Motilal Oswal

• Downgrades the stock to 'neutral' from 'buy' and raised the target to Rs 1,250 from Rs 1,240, an implied upside of 5.27%.

• Believes that the growth visibility is lacking and cites NIM compression as the reason for Q1 miss.

• Sequential decline in gold AUM, elevated advertising costs, aggressive brand campaigns characterised the June Quarter which saw an extension in trade-off between loan growth and margin.

• Aggression of banks and gold loan fintechs could leave Muthoot Finance vulnerable as customers can choose banks and gold fintechs as they offer gold loans at relatively lower interest rates.

• Cuts FY23/24 estimates by 16%/4% to account for elevated costs and moderation in spreads.

• Believes that there are limited triggers for further upside in the stock as there is a lack of loan growth visibility and structural changes in gold loan NBFC business.

• Believes that demand for gold loans is not very buoyant.

Nirmal Bang

• Reiterates 'buy' and slashes target to Rs 1,443 from Rs 1,493, still an implied upside of 21.53%.

• Weakening trends in core gold loan business and spread compression dragged net income in Q1.

• Total customer base fell 1.4% YoY as well as sequentially due to price-led competition by banks .

• Reduces full-year growth estimates to account for the sequential decline in Q1.

• Believes that new customer acquisition is a key monitorable for the company in the upcoming quarters.

Prabhudas Lilladher

• Reiterates 'buy' and maintains target price at Rs 1431 apiece.

• Maintains EPS estimates for FY23 and FY24 on hopes of improvement in yields in the coming quarters as teaser loans are repriced.

• Company expects AUM on gold loans to rise in the next two to three quarters and also anticipates vehicle finance business to show marked improvement.

The broader indices almost mirrored their larger peers. Barring Basic Materials, Healthcare and Metal gauges, all the other 16 sectoral indices compiled by BSE Ltd. advanced with Auto index adding 1%.

The market breadth is skewed in the favour of bulls. About 1,699 stocks rose, 886 fell and 165 remained unchanged.

Infrastructure firm KEC International bagged new orders worth Rs 1,313 crore across its various businesses, Transmission & Distribution (T&D), Railways, Civil, Oil & Gas pipelines and Cables.

Source: Exchange Filing

• U.S. Dollar Index at 106.5

• U.S. 10-year bond yield at 2.77% on Monday

• Brent crude down 1.2% to $93.9 per barrel

• Nymex crude at $88.3 per barrel

• SGX Nifty up 0.28% to 17,834.50 as of 8:35 a.m

• Bitcoin up 0.06% to $24,088

Source: Bloomberg

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.

SpiceJet entered into settlement agreement with aircraft lessor Goshawk Aviation and its affiliated leasing entities Wilmington Trust SP Services (Dublin), Sabarmati Aviation and Falgu Aviation.

• The agreement is related to two Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft.

• The parties have agreed to settlement all disputes related to aircraft lease agreement.

• All proceedings, before UK court and Execution Proceedings before the Delhi High Court will be withdrawn.

• The move will allow the entry of two more Boeing 737 MAX aircraft into SpiceJet's fleet.

Source: Exchange filing

GST may go in for another round of rate changes to fix instances of inverted duty and withdraw some exemptions, reported The Economic Times citing people aware of the matter.

• A group of Ministers headed by Basavaraj Bommai, the Chief Minister of Karnataka is working on the rate changes.

• Inverted duty structures (rate of tax on input is greater than rate of tax on outward supplies, which discourage value addition) prevail in automobiles, some electronic items, urea and other fertiliser inputs.

Source: The Economic Times

Rakesh Jhunjhunwala's $4-Billion Portfolio In Focus After Death

• Ambuja Cements: The Competition Commission of India approved Gautam Adani’s the acquisition of Holcim Group’s stake in Ambuja Cements and ACC.

• Jindal Steel & Power: The company appointed Bimlendra Jha as Managing Director with effect from Aug. 14. Jha will replace Vidya Rattan Sharma after the completion of his term on Aug. 13.

• HDFC/HDFC Bank: The merger between the two companies received the approval of CCI.

• Indiabulls Real Estate: The company’s joint Managing Director Gurbans Singh and Chief Financial Officer resigned with effect from Aug. 12.

• DFM Foods: Promoters AI Global (Cyprus) Investments and AI Darwin (Cayman) to acquire all shares held by public shareholders and voluntarily delist the shares from BSE, NSE. JM Financial has bee appointed as the manager to the delisting proposal.

Hero Motocorp Q1 FY23 (Standalone, QoQ)

• Revenue up 13% to Rs 8,392.5 crore Vs Rs 7,422 crore (Bloomberg estimates: Rs 8,709 crore)

• EBITDA up 14% at Rs 941 crore Vs Rs 828 crore (Bloomberg estimates: Rs 1,087 crore)

• EBITDA margin unchanged at 11.2% (Bloomberg estimates: 12.5%)

• Net profit flat at Rs 624.5 crore compared with Rs 627 crore (Bloomberg estimates: Rs 766 crore)

Life Insurance Corporation of India Q1 FY23 (Consolidated, QoQ)

• Revenue down 20% at Rs 1,69,601 crore Vs 2,12,230 crore

• Net profit down 75% to Rs 603 crore Vs Rs 2,409 crore

• Solvency at 1.88 Vs 1.85

• VNB at Rs 1,861 crore

• VNB margin at 13.6%

Oil and Natural Gas Corporation (Consolidated, QoQ)

• Revenue up 17% at Rs 1,82,894 crore Vs Rs 155,920 crore (Bloomberg estimate: Rs 45,530.7)

• EBITDA fell 23% at Rs 18,855.01 crore Vs Rs 24,411.23 crore (Bloomberg estimate: Rs 28,379.8 crore)

• EBITDA margin 10% Vs 16%

• Net profit up 13% at Rs 11,936.64 crore Vs Rs 10,550.29 crore

Aegis Logistics Q1 FY23 (Consolidated, QoQ)

• Revenue up 6% at Rs 2,235 crore Vs Rs 2,104 crore

• EBITDA fell 41% at Rs 84.52 crore Vs Rs 143.08 crore

• EBITDA margin 4% Vs 7%

• Net profit up 9% at Rs 103.37 crore Vs Rs 94.75 crore

Apollo Tyres Q1 FY23 (Consolidated, YoY)

• Revenue up 30% at Rs 5,942 crore Vs Rs 4,584 crore

• EBITDA up 22% at Rs 689.80 crore Vs Rs 566.7 crore

• EBITDA margin 11.6% Vs 12.3%

• Net profit up 49% at Rs 190.68 crore Vs Rs 127.78 crore

Astral Q1 FY23 (Consolidated, YoY)

• Revenue up 73% at Rs 1,213 crore Vs Rs 701 crore

• EBITDA up 33% at Rs 171.70 crore Vs Rs 129.4 crore

• EBITDA margin 14% Vs 18%

• Net profit up 20% at Rs 88.9 crore Vs Rs 73.9 crore

Eureka Forbes (Consolidated, QoQ)

• Revenue up 41% at Rs 526 crore Vs Rs 374 crore

• EBITDA up 2x at Rs 46.05 crore Vs Rs 20.07 crore

• EBITDA margin 9% Vs 5%

• Net profit up 4x at Rs 19.8 crore Vs Rs 4.62 crore

Restaurant Brands Asia Q1 FY23 (Consolidated, QoQ)

• Revenue up 22% at Rs 489 crore Vs Rs 400 crore

• EBITDA up 44% at Rs 29.22 crore Vs Rs 20.23 crore

• EBITDA margin 6% VS 5%

• Net loss narrowed to Rs 50.88 crore Vs Rs 81.53 crore

Zee Entertainment Enterprises Q1 FY23 (Consolidated, QoQ)

• Revenue fell 21% at Rs 1,846 crore Vs Rs 2,323 crore

• EBITDA fell 53% at Rs 235.76 crore Vs Rs 506.8 crore

• EBITDA margin 13% Vs 22%

• Net profit fell 41% at Rs 106.6 crore Vs Rs 181.93 crore

Asian equities are set for a cautious open on Tuesday amid rising concerns over economic slowdown, dollar strengthening and a commodity slide.

Japanese, Australian and Hong Kong equities are set for a muted start after technology firms such as Tesla Inc. and Apple Inc. powered the S&P 500 index to close higher on Monday.

At 5:55 a.m., the Singapore-traded SGX Nifty--an early barometer of India's benchmark Nifty 50--traded 0.34% higher at 17,846 points.

Oil fell below $89 a barrel on demand concerns and the possible return of Iranian supplies.