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Nifty Outlook

Market started the week on a buoyant note and gained nearly a percent, tracking supportive global cues. After the gap up start, the benchmark hovered in a range till the end however movement on the stock-specific front kept the participants busy till the end. Finally, the Nifty index ended with gains of 0.8% to close at 18,472 levels. The broader markets too performed largely in line with the benchmark wherein midcap and smallcap ended higher by 1.2% and 0.6% respectively. Amongst the sectoral indices, except all the indices, barring healthcare and telecom, ended in green wherein metal, IT and power were the top gainers.

In absence of any major event, earnings will remain in focus and we have a long list of index majors announcing their results this week.Participants are closely eyeing the management commentaries for the future growth outlook. Apart from this, global cues would also be on investors' radar. We reiterate our bullish view on the market and suggest using intermediate dips to add quality stocks.

News

* Mahindra CIE Automotive announced its results wherein revenue jumped to Rs 2,090.7 cr from Rs 1,694.3 cr YoY. Its consolidated profit came in at Rs 166.42 cr in Q2FY22 against Rs 60.8 cr in Q2FY21.

* Granules India announced that the US FDA has approved the Abbreviated New Drug Application filed by Granules Pharmaceuticals, Inc. (GPI), a wholly owned foreign subsidiary of the Company, for Dofetilide Capsules, 125 meg, 250 meg, and 500 meg used to treat certain types of irregular heartbeat.

* Ultratech Cement announced its numbers wherein revenue was up 15.7% YoY at Rs 12,017 cr against Rs 10,387.1 cr. EBITDA gained 0.6% at Rs 2,714.4 cr against Rs 2,697.7 cr. Net profit was up 12.6% at Rs 1,313.5 cr against Rs 1,166.4 cr.

Derivative Ideas 

ESCORTS FUT has added around 30% in open interest as fresh long build up was seen in it. Current chart pattern also indicates further upmove in its price. We suggest buying in cash market per below levels.

Strategy:- Buy ESCORTS@1538-1540, SLOSS AT 1514, TRGT 1585.

Investment Pick - The Ramco Cements Ltd

Ramco Cements Ltd (TRCL) is the fifth-largest cement producer in India and the most popular cement brand in South India. The company is six decades old and manufactures ready mix concrete, dry mortar products and various grades of cement. It has a presence across ten states of India with four integrated plants and six grinding units. Apart from South India, it is growing its presence in East India, Sri Lanka and the Maldives.

We have a positive outlook given its strong brand name, leadership position in South India and product portfolio. In addition, its focus on expanding capacity, increasing utilization levels and cost-saving initiatives would further help in improving profitability. We estimate its Revenue/EBITDA/PAT to grow at a CAGR of 12%/13.5%/15.5% respectively over FY21-24E and have initiated a Buy on the stock with a target price of Rs 1,237.

Buy - The Ramco Cements Ltd @ 9-12 Months CMP 1,022 TGT 1,237

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