A man looks at a screen across a road displaying the Sensex on the facade of the Bombay Stock Exchange building in Mumbai.
5 years ago
May 28, 2021
Sun Pharma, Eicher Motors, Redington India, Metropolis, IRB Infra, HEG, Goodyear may react as the companies reported quarterly results after the market closed Thursday. Mahindra, Glenmark Pharma, Karur Vysya, IPCA Lab, City Union Bank, HeidelbergCement are among the companies scheduled to report earnings Friday.
Given the limited impact on overall economy and growth, we do believe that this rally in quality stocks in equity markets is here to stay. Overall shift will happen from Medium and Small enterprises to market leaders and hence even more of a reason to invest in quality names and market leaders. We do believe that financials, consumer discretionary names and chemicals are some of the sectors that should do well in the short to medium term.
Canara Bank plans to raise as much as Rs 2,500 crore by selling shares to institutional investors during the year to March 31, according to a statement to stock exchange.
The Indian state-run lender also plans to raise as much as Rs 4,000 crore via AT1 bonds and up to Rs 2,500 crore selling Tier 2 bonds
The bank’s board approved the capital raising plan Friday
Digital payments provider Paytm is mulling a $3-billion initial public offering, the largest ever in India, Bloomberg News reported on Thursday. The Vijay Shekhar Sharma-led startup may tap the Indian capital markets close to the festival season this year, the report said.
Just when the vaccine rollout and economic optimism left gold looking like last year’s metal, it staged a recovery.
Bullion is one of the best-performing commodities this month, erasing almost all of this year’s losses. Investors have been lured back by gold’s appeal as an inflation hedge, while the Federal Reserve maintains its monetary stimulus and says price pressures should prove temporary. Spot gold was little changed at $1,895.41 an ounce on Friday and is up more than 7% in May.
The broking firm removed Just Dial, Britannia, Indusind Bank, Bharat Electronics and Mahindra & Mahindra Financial Services to accommodate these additions.
Redington India climbs as much as 20% to its highest level since its debut in Feb. 2007 after fourth-quarter net income and revenue beat analysts’ estimates.
Best performer on S&P BSE SmallCap, S&P BSE 500, NSE Nifty 500 indexes
Trading volume >3.3x 3-month full-day average
Net income Rs 303 crore vs. Rs 119 crore YoY, estimate Rs 162 crore
At the current stock price, valuing the Energy business at long-term average multiples, we are left with Rs 1,150/share as imputed value of RIL’s stake in Jio and Retail. This is inline with the valuation offered by PE funds that bought stakes in Jio and Retail in Q1FY21. In our view, sustained strong petrochemical performance improves the likelihood of O2C stake sale in FY22. This could lead to a reversal of the 40% Nifty underperformance. Our price target (Rs 2,580) represents 30% upside.
Sun Pharma expects to grow in all segments — speciality, biosimilars and U.S. generics — in FY22.
With increasing face-to-face interactions and participation in conferences, Sun remains confident of growing its share in dry eye medicine Cequa (currently in low-single digits).
Sun has been more active in the second Covid-19 wave with launches like Remdesivir, Itolizumab, Favipiravir along with Molnupiravir and Baricitinib in the offing, which poses upside risk to our FY22 India growth forecast of 16% YoY.
We expect field force expansion and efforts to fortify brands to lead outperformance even post COVID-19.
After years of hesitancy, Sun will be developing biosimilars with an eye on the third wave. While it is too early to judge Sun's ability to be successful in biosimilars, being a late entrant, the going will not be easy.
Sun is also looking at products that have patent expiries beyond 2027, where it could be among the first companies to launch.
We increase our FY22/23 earnings per share target by 5-7% on higher domestic and specialty sales and raise the target price by 12% to Rs 782.
Investors are counting on a resumption of business activities as a steady decline in new coronavirus cases prompts key states to gradually lift strict curbs on movements. The daily caseload for the nation has more than halved compared with counts in excess of 400,000 at the start of the month.
