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Shares of Adani group companies were among the worst performing stocks on the bourses.
Adani Total Gas - down 5%, hits lower circuit for sixth straight day.
Adani Transmission - down 5%, sixth session of loss.
Adani Power - down 2.6%, second day of loss.
Adani Enterprises - down 1.1%, second day of loss.
Adani Ports & SEZ - down 1.2%, second day of loss.
Adani Green Energy - up 0.6%, second day of gains.
Promoters of Macrotech Developers have repaid an entire debt of 15.96 billion rupees owed to the company as of March 31 this year, the Mumbai-based developer said in a stock exchange filling.
The repayment, combined with funds raised via an IPO and continued organic free cash flow generation are helping the Mumbai-based company to progress further in its deleveraging plans, it said
The developer targets significant reduction in net debt to Rs 10,000 crore by the end of FY22
NOTE: On May 14, Macrotech said the company will become net cash positive in 3 years
It will continue to focus on capital-light growth strategy around affordable and mid-income housing, and digital infrastructure such as warehousing, data centers and industrial parks
Promoters raised debt-repayment funds by means of a long-term instrument having tenure greater than 3 years with no repayment obligation prior to that
Promoters plans to deleverage themselves by bringing their holding in the company down to a maximum of 75% over a period of three years
Shares of Cummins India Ltd. jumped the most in three months after Kotak Institutional Equities increased its fair value for the stock citing business benefits of CPCB-IV norms and acceleration envisaged in the data center market.
Cummins India's stock gained as much as 6.3%, the most since March 03, to Rs 904.30. It has risen nearly 58% year-to-date versus the 11.3% for the S&P BSE Sensex Index.
Of the 16 analysts tracking the stock, 17 have a ‘buy’ rating, eight suggest a ‘hold’ and eight recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies an downside of 11.3%.
Shares of Manappuram Finance Ltd. gained as much as 3.53% after BofA Global Research initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 225.
In a note, it said that the NBFC’s existing valuation “grossly undervalues its gold loans business” and that a re-rating would be on the cards once its microfinance institution credit costs improve. “We look past the near-term stress in its MFI share, which is 22% of its portfolio and see a business well-placed to deliver 20% earnings-per-share growth and 24% return on equity through FY24.”
It added that it expects the impact of the second Covid-19 wave to wear down by second quarter of FY22 and gold loans to resume their “steady state growth of 12-15% per annum” as branches reopen by then. “A renewed focus on adding customers, the latest loan-to-value ratio at 63% and scope for a sustained increase in ticket size allows for a positive surprise on asset growth,” it said.
In the long-term, BofA said it thinks Manappuram’s MFI arm Asirvad can deliver cross-cycle RoEs in “high-teens”, with strict caps on state and district exposures acting as prudent risk mitigation strategy.
It listed hikes in gold price, lower than expected credit costs and value-unlocking from its potential Asirvad spin-off as upside catalysts, while significant decline in gold price, Covid 3.0 and asset quality cycles in Asirvas as downside risks.
Shares of Manappuram Finance Ltd. gained as much as 3.53%, the most since May 31 this year, to Rs 168.5. Of the 16 analysts tracking the stock, 13 have a ‘buy’ rating, three suggest a ‘hold’ and none recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies an upside of 24.2%.
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We think premium multiples will be supported by better revenue growth visibility, improved capital allocation and return ratio profile and uplift in global tech multiples.Morgan Stanley
Shares of the packaging materials company jumped as much as 19.4%, the most since April 28 last year, to a record high of Rs 570.05 apiece.
The company reported a two-fold jump in consolidated net profit at Rs 264.95 crore for the fourth quarter ended March 2021. Total income rose 45.05% to Rs 2,571.77 crore as against Rs 1,773 crore in the corresponding period of the previous fiscal.
The company expects higher volumes during the current financial year from newly set-up capacities; it will also strive to maintain Ebitda margin of 20%, Group CFO Rajesh Bhatia says in a statement
India’s rupee and sovereign bonds may be pressured amid a rise in crude prices, which will weigh on inflation and finances of the net oil-importing nation. Traders will also await the current-account deficit data for the March-quarter which is expected to sharply widen. The rupee is headed for its worst month since March last year.
USD/INR up 0.1% to 74.2312 on Tuesday; pair is up 2.2% this month, headed for the biggest gain since March 2020
Implied opening from forwards suggest spot may start trading around 74.30
10-year yields fell 2bps to 6.04% on Tuesday; 5.63% 2026 bond yield drops 5bps to 5.68%
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