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Monthly Auto Sector Update - Robust PV/CV demand; Tractor momentum continues; Entry-level 2W picks up; supply normalization – a key By JM Financial Services Robust PV/CV demand; Tractor momentum continues; Entry-level 2W picks up; supply normalization – a key In May’22, all major OEMs witnessed sequential improvement in volumes supported by positive sentiments and marginal improvement in component supplies. PV OEMs' volume improved on robust demand. MSIL reported marginal improvement in wholesale volumes (+2%MoM) in domestic PV. Based on our channel checks (PV demand remains robust; Entry-level 2Ws gaining momentum), we found u...
Monthly Auto Sector Update - Robust PV/CV demand; Tractor momentum continues; Entry-level 2W picks up; supply normalization – a key By JM Financial Services
Monthly Auto Sector Update - Robust PV/CV demand; Tractor momentum continues; Entry-level 2W picks up; supply normalization – a key By JM Financial Services
Source: JM Financial Services Ltd
7/06/2022 3:42:29 PM
Buy FSN E-Commerce Ventures Ltd For Target Rs.1,730 - JM Financial Services Seasonality dents growth and bottom-line FSN E-Commerce Ventures (Nykaa) reported sequential revenue de-growth as well as decline in margins driven by 17% QoQ decline in BPC GMV. The company saw overall GMV growing by 49% YoY driven by 32%/88% YoY growth in BPC/Fashion with Others GMV (includes Nykaa Man, eB2B etc) growing 371% YoY to reach INR 1.8bn in FY22. The sharp uplift in gross margin to 46.3% in Q3FY22 proved temporary with Q4FY22 gross margin deteriorating to 43.7% due to lower mi...
Buy FSN E-Commerce Ventures Ltd For Target Rs.1,730 - JM Financial Services
Buy FSN E-Commerce Ventures Ltd For Target Rs.1,730 - JM Financial Services
Source: JM Financial Services Ltd
31/05/2022 11:15:24 AM
Buy Coal India Ltd For Target Rs.210 - JM Financial Services E-Auction realisations + FSA volumes raise profits Coal India (CIL) reported PAT (Ex OBR) at INR 101bn (+76% YoY / +25% beat on JMFe) led by a) E-auction realisations rising +38% YoY with peak imported coal prices of $200-290/T Mar-April’22 and b) 40% YoY rise in other income. We anticipate the benefit of higher international coal prices in April’22 ($250-280/T) to benefit e-auction deliveries in 1Q FY22 (2-3 month lag between auction and deliveries). However as global coal ind...
Buy Coal India Ltd For Target Rs.210 - JM Financial Services
Buy Coal India Ltd For Target Rs.210 - JM Financial Services
Source: JM Financial Services Ltd
31/05/2022 11:09:57 AM
Buy MTAR Technologies Ltd For Target Rs.1800 - JM Financial Services In line results; management ups growth guidance MTAR Technologies 4Q22 results were in line with estimates. Revenue grew by 43% YoY, while EBITDA was down 8% YoY (high base effect), both in line with JMFe. Growth was led by 56% growth in clean energy segment, driven by robust volumes of SOFC volumes, while ex-clean energy vertical reported a growth of 43%, largely driven by growth in space and defence (+73% YoY) and new product launches, even as nuclear energy segment declined by 9% YoY. M...
Buy MTAR Technologies Ltd For Target Rs.1800 - JM Financial Services
Buy MTAR Technologies Ltd For Target Rs.1800 - JM Financial Services
Source: JM Financial Services Ltd
26/05/2022 11:24:00 AM
Buy Balrampur Chini Mills Ltd For Target Rs.510 - JM Financial Services In a sweet spot; Reiterate BUY Balrampur Chini’s (BRCM) 4QFY22 revenue grew by 26% YoY to INR 12.8bn (16% above JMFe) led by 26% YoY/ 8% YoY growth in sugar volume/ realisation while EBITDA was flat YoY (margin declined by 670bps YoY) due to higher cane cost, lower recovery rates and unabsorbed fixed cost due to a fall in crushing volume. PAT declined 1% YoY to INR 2.4bn (3% below JMFe). While SS22 volumes were impacted due to adverse weather conditions, the management expects cane v...
Buy Balrampur Chini Mills Ltd For Target Rs.510 - JM Financial Services
Buy Balrampur Chini Mills Ltd For Target Rs.510 - JM Financial Services
Source: JM Financial Services Ltd
26/05/2022 11:16:47 AM
Metal and Mining Sector Update - Export duty on steel far outweighs raw mat. duty benefits By JM Financial Services Export duty on steel far outweighs raw mat. duty benefits  The Government of India on 21st May 2022, imposed hefty export duties on steel / raw materials to curb higher exports / inflation. The Government has imposed export duty of 50% on iron ore of all grades, 45% on pellets and 15% duty on a host of steel products (refer exhi. 1). This move clearly hints at Government’s intention to control exports / inflation and ensure higher domestic supplies. GOI has also cut the import d...
Metal and Mining Sector Update - Export duty on steel far outweighs raw mat. duty benefits By JM Financial Services
Metal and Mining Sector Update - Export duty on steel far outweighs raw mat. duty benefits By JM Financial Services
Source: JM Financial Services Ltd
25/05/2022 12:55:08 PM
Buy Data Patterns India Ltd For Target Rs.830 - JM Financial Services In-line results; growth guidance maintained Data Patterns reported 9% YoY growth in revenue (in-line with JMFe), while EBITDA decline was restricted to just -1.4% (12% ahead of JMFe), as gross margins surprised positively on a favourable mix. PAT was 5% higher than estimate at INR616mn, -7% YoY. Management maintained its revenue growth guidance 25-30% YoY with EBITDA margins of 40%+, despite increase in share of development contracts in the order book. We believe rising share of electronic...
Buy Data Patterns India Ltd For Target Rs.830 - JM Financial Services
Buy Data Patterns India Ltd For Target Rs.830 - JM Financial Services
Source: JM Financial Services Ltd
25/05/2022 11:26:34 AM
Buy Zomato Ltd For Target Rs.115 - JM Financial Services Strong comeback Zomato reported significant sequential improvement in all key operating and financial metrics in 4QFY22. What was even more impressive were the disclosures and management willingness to address street concerns both through a shareholders letter as well as post results conf. call. With a dual focus on growth and profitability, management guided for sequential top line growth to accelerate to double digits in 1QFY23 (despite supply side challenges in some cities) while Adj. E...
Buy Zomato Ltd For Target Rs.115 - JM Financial Services
Buy Zomato Ltd For Target Rs.115 - JM Financial Services
Source: JM Financial Services Ltd
25/05/2022 11:19:52 AM
Buy Kirloskar Oil Engines Ltd For Target Rs.225 - JM Financial Services Volume growth coupled with price hikes drive performance Kirloskar Oil Engines (KOEL) 4QFY22 results came in ahead of estimates on all fronts. Standalone net sales were 7% above JMFe (INR9.9bn; +8% YoY), while EBITDA and PAT saw sharp bounce back sequentially. On 3-year CAGR basis, sales/EBITDA/PAT grew by 7.5%/6.1%/5.1%. KOEL took aggressive price hikes in 4Q which helped resuscitate gross margins, while management highlighted they have been able fill all the vacant spots post exit of 3 b...
Buy Kirloskar Oil Engines Ltd For Target Rs.225 - JM Financial Services
Buy Kirloskar Oil Engines Ltd For Target Rs.225 - JM Financial Services
Source: JM Financial Services Ltd
24/05/2022 11:17:55 AM
Buy NTPC Ltd For The Target Rs.180 - JM Financial Services 4Q Adj. PAT +19% YoY; RE capex to pick up from FY25 NTPC 4Q FY22 adj PAT came in at INR 45.6 bn (v/s INR 38.3bn, +19% YoY) beating JMFe by 13%, led by , i) capacity addition of 3.8 GW led 7% growth in regulated equity and ii) Lower fixed cost under-recoveries (-25% YoY) in FY22. Also NTPC‘s investment of c. INR 280bn in its JV/subs are now contributing to operational income in FY22 (dividends have grown +77% YoY). The FY22 standalone regulated equity at INR 708 bn is expected to grow...
Buy NTPC Ltd For The Target Rs.180 - JM Financial Services
Buy NTPC Ltd For The Target Rs.180 - JM Financial Services
Source: JM Financial Services Ltd
24/05/2022 11:12:31 AM
Buy Godrej Consumer Products Ltd For Target Rs.1030 - JM Financial Services Quite a lot of work still needs to be done GCPL’s Mar-Q report was weak with the entire disappointment vs our expectation emanating from a very weak margin profile in the Africa geo that had otherwise been remarkably steady so far. Indonesia remains a work-in-progress and management expects that 3QFY23 is when signs of recovery would be visible - this perhaps is a sign of the extent of the problem out there; the region appears to have totally ignored trade-related discipline (channel...
Buy Godrej Consumer Products Ltd For Target Rs.1030 - JM Financial Services
Buy Godrej Consumer Products Ltd For Target Rs.1030 - JM Financial Services
Source: JM Financial Services Ltd
23/05/2022 11:39:59 AM
Buy GMR Infrastructure Ltd For Target Rs.42 - JM Financial Services Domestic PAX recovers to 92-96% of Pre-Covid normal GMR Infra (GMRI) reported FY22 adj. loss of INR 6.35bn, cutting losses by 77% YoY on recovery in PAX vs. low base of FY21 (Covid impact). The 4QFY22 adj. loss at INR 1.3bn is optically negative compared with 4Q FY21 profit of INR 584mn last year due to a) higher base of 4Q which had IND AS related one offs, b) INR1bn increase in other expenses on post Covid mobilisation / prior year items. The DIAL 4QFY22 EBITDA fell 31% YoY on higher bas...
Buy GMR Infrastructure Ltd For Target Rs.42 - JM Financial Services
Buy GMR Infrastructure Ltd For Target Rs.42 - JM Financial Services
Source: JM Financial Services Ltd
23/05/2022 11:33:13 AM
Buy ITC Ltd For Target Rs.315 - JM Financial Services Well-positioned for value-creation; we cite three key drivers We see potential for ITC to reverse the long period of lacklustre performance. We cite government’s increasingly logical stance on tobacco taxation to be one key value driver for the stock going forward. To us, it’s not so much about tax-hike being skipped for one more year, but more about how the government is likely now able to better appreciate the legal industry’s logic that a punitive taxation regime on le...
Buy ITC Ltd For Target Rs.315 - JM Financial Services
Buy ITC Ltd For Target Rs.315 - JM Financial Services
Source: JM Financial Services Ltd
21/05/2022 10:44:59 AM
Buy Bharti Airtel Ltd For Target Rs.940 - JM Financial Services 4G upgrades recovering as sim consolidation abates; maintain BUY Bharti Airtel’s 4QFY22 consolidated EBITDA was INR 160.6bn (+ 7.8% QoQ), ~2% higher than JMFe (in line with consensus) due to better 4G upgrades/ higher post-paid subs addition and lower network/other opex. India mobile services EBITDA improved to 50.6% (from 49.4% in 3QFY22) due to the Nov’21 tariff hike. ARPU at INR 178 was up 9.2% QoQ (vs. INR 163 in 3QFY22) due to the Nov’21 tariff hike and partly due to...
Buy Bharti Airtel Ltd For Target Rs.940 - JM Financial Services
Buy Bharti Airtel Ltd For Target Rs.940 - JM Financial Services
Source: JM Financial Services Ltd
21/05/2022 9:58:18 AM
India Multiplex Sector Update - Out of the woods; best ahead By JM Financial Services Out of the woods; best ahead PVR and Inox Leisure have withstood the worst of the pandemic and are now slated to post best ever FY23 on account of bunched up movie releases, new screen additions and higher ticketing and F&B spends. Both have already reported a very strong recovery (admits / box office collections) in the month of Mar’22 when most of the Covid-19 restrictions were removed and theatrical releases followed. Revenue growth was led by sharp increases in average ticket...
India Multiplex Sector Update - Out of the woods; best ahead By JM Financial Services
India Multiplex Sector Update - Out of the woods; best ahead By JM Financial Services
Source: JM Financial Services Ltd
19/05/2022 12:23:03 PM
Buy Kajaria Ceramics Ltd For Target Rs.1,200 - JM Financial Services Muted quarter; guidance intact Kajaria Ceramics (KJC) delivered muted earnings in 4QFY22 as tile volume grew 2% YoY (+ 1% QoQ, +5% 3-year CAGR), 3% below JMFe, and EBITDA margin contracted 500bps YoY (-200bps QoQ, 120bps below JMFe) on account of rising input costs and delay in price hikes. EBITDA/PAT were11%/22% below JMFe (12%/20% below BBRG consensus). The management continues with its bullish guidance of c.15-20% volume growth and 20-25% overall revenue growth on the back of market sha...
Buy Kajaria Ceramics Ltd For Target Rs.1,200 - JM Financial Services
Buy Kajaria Ceramics Ltd For Target Rs.1,200 - JM Financial Services
Source: JM Financial Services Ltd
19/05/2022 11:22:24 AM
Buy Zensar Technologies Ltd For Target Rs.400 - JM Financial Services On the Mend While there is increasing concern on macro challenges for Indian techs due to slowing Global Economy (and a potential US recession), we find the improvement in internals for Zensar encouraging as is reflected in (1) much stronger exit for FY22 (and thereby should aid FY23 revenue growth , (2) Investments in sales and delivery leadership across key verticals like Financial Services and Retail (which is showing up in terms of improving client metrics performance) and (3) improvin...
Buy Zensar Technologies Ltd For Target Rs.400 - JM Financial Services
Buy Zensar Technologies Ltd For Target Rs.400 - JM Financial Services
Source: JM Financial Services Ltd
19/05/2022 11:12:01 AM
India Real Estate Update - Mindspace Business Parks REIT announces results for 4QFY22 and FY22 By JM Financial Services HIGHLIGHTS Macrotech announces US$1bn Green Digital Infrastructure Partnership with lvanhoe Cambridge and Bain Capital Mindspace Business Parks REIT announces results for 4QFY22 and FY22 Brigade Enterprises reports highest ever pre-sales Bain Capital invests INR 13.3bn in TARC Limited Credberg to invest over INR 10bn in Indian income-producing assets WeWork India leases 0.66msf space from Bhutani Group in Noida Embassy Office Parks REIT launches two office towers in Pune ...
India Real Estate Update - Mindspace Business Parks REIT announces results for 4QFY22 and FY22 By JM Financial Services
India Real Estate Update - Mindspace Business Parks REIT announces results for 4QFY22 and FY22 By JM Financial Services
Source: JM Financial Services Ltd
16/05/2022 12:51:15 PM
Buy Amber Enterprises Ltd For Target Rs.3,700 - JM Financial Services Subdued performance given industry level challenges Amber 4QFY22 results were missed estimates. Net sales were 13% below estimates (INR 19.4n; +21% YoY), while EBITDA was 30% below estimates (INR 1.2bn; -11% YoY). Management highlighted that miss in volumes and realisations were on account of supply chain disruption, adverse product mix and lag in passing on price hike to customers. Going forward, company intends to further gain market share (26.5% share in RAC and components) given a) ram...
Buy Amber Enterprises Ltd For Target Rs.3,700 - JM Financial Services
Buy Amber Enterprises Ltd For Target Rs.3,700 - JM Financial Services
Source: JM Financial Services Ltd
16/05/2022 12:41:13 PM
Buy Anupam Rasayan Ltd For Target Rs.1,125 - JM Financial Services On a strong growth path; maintain BUY Anupam Rasayan’s (ARIL) 4QFY22 EBITDA was 12%/18% ahead of JMFe/consensus primarily on account of expansion in gross margin, which was aided by favourable inventories. The company expects inventory levels to come down significantly over the next few quarters, which should also reduce working capital debt (around INR 2.0bn). For the next leg of growth, its INR 2.5bn capex will take one year for asset creation and ramping up to peak production will...
Buy Anupam Rasayan Ltd For Target Rs.1,125 - JM Financial Services
Buy Anupam Rasayan Ltd For Target Rs.1,125 - JM Financial Services
Source: JM Financial Services Ltd
16/05/2022 12:33:40 PM
Buy TVS Motor Ltd For Target Rs. 850 - JM Financial Services Resilient performance; cost optimisation to drive profitability In 4QFY22, TVS Motor (TVSL) reported EBITDA margin of 10% (flat YoY, +10bps QoQ), inline with JMFe. Management expects the demand to bounce back in domestic market driven by improving rural sentiment and new product launches. Demand traction in export continues to remain strong. The management remains confident on maintaining double-digit margin trajectory. We expect TVSL’s outperformance will continue on the volume fron...
Buy TVS Motor Ltd For Target Rs. 850 - JM Financial Services
Buy TVS Motor Ltd For Target Rs. 850 - JM Financial Services
Source: JM Financial Services Ltd
14/05/2022 10:25:26 AM
Buy Marico Ltd For Target Rs. 560 - JM Financial Services FY23 margin picture not scary unlike peers’ The street’s perception of Marico being one of the very few companies in the sector that would escape the current chaos caused by severe commodity-costs inflation might just play out in FY23, as per our calculations, even though the same did not hold out as far as 2HFY22 was concerned. The two key management expectations of Parachute volumes uplift and overall margin trajectory improving sequentially in Mar’22-Q were foiled by t...
Buy Marico Ltd For Target Rs. 560 - JM Financial Services
Buy Marico Ltd For Target Rs. 560 - JM Financial Services
Source: JM Financial Services Ltd
14/05/2022 10:05:47 AM
Update on Inox Leisure Ltd by JM Financial Services Encouraging signs; gearing up for a blockbuster FY23  Inox Leisure results indicate momentum is coming back into multiplexes sector backed by a strong movie pipeline and improving trajectory of ticketing and non ticketing revenues. In Mar’22, Inox reported highest ever monthly collection (box office + F&B) of INR 1.98bn (Jan’20 was INR 1.67bn; higher than pre-Covid) as restrictions have been lifted and movies releases are bunched up from previous years. Intrinsic EBITD...
Update on Inox Leisure Ltd by JM Financial Services
Update on Inox Leisure Ltd by JM Financial Services
Source: JM Financial Services Ltd
14/05/2022 10:00:36 AM
Buy Gokaldas Exports Ltd For Target Rs. 610 - JM Financial Services Strong order book, capacity expansion to drive earnings Gokaldas Exports reported a revenue increase of 12.4% QoQ to INR5.9bn, driven by increased exports, deep engagement with key customers and augmentation of capacity. EBITDA increased 29.1% QoQ to INR766mn, with margins at 13.1% during the quarter on account of increased volume, efficient utilisation and improvement in operating levers. The Company reported an adj. PAT of INR491mn in 4Q. FY22 revenue increased 48% YoY on account of a gr...
Buy Gokaldas Exports Ltd For Target Rs. 610 - JM Financial Services
Buy Gokaldas Exports Ltd For Target Rs. 610 - JM Financial Services
Source: JM Financial Services Ltd
7/05/2022 12:00:45 PM
Buy L&T Finance Holdings Ltd For Target Rs.90 - JM Financial Services Soft operating performance In 4QFY22, L&T Finance Holdings (LTFH) generated PAT of INR 3.4bn (+28% YoY/ +5% QoQ) impacted by soft operating performance with PPOP at INR 11.4bn (-23% YoY/ -2% QoQ). CIR climbed to 36% (vs. 25% YoY/ 34% QoQ) as the company is: i) building digital capabilities, ii) normalizing operations which were reduced in the wake of Covid – employee strength increased (still below pre-Covid levels) and MFI meeting centres expanded (around pre-Covid levels). Othe...
Buy L&T Finance Holdings Ltd For Target Rs.90 - JM Financial Services
Buy L&T Finance Holdings Ltd For Target Rs.90 - JM Financial Services
Source: JM Financial Services Ltd
7/05/2022 11:41:46 AM
Buy Mahindra & Mahindra Financial Services Ltd For Target Rs.220 - JM Financial Services 2025 targets contingent on flawless execution In 4QFY22, M&M Financial (MMFS) generated PAT of INR 6bn (4x YoY/ -33% QoQ), helped by reversal of provisions. Operational performance was weak (PPOP declined 15% YoY/ 15% QoQ) due to: i) tepid interest income on account of provision for excess interest refund (INR 1.4bn or 6% of interest income), ii) high opex (cost to asset: 3.4% vs. 2.5% YoY/ 2.9% YoY). Disbursement was strong (+54% YoY/ +15% QoQ) though higher repayment resulted in decl...
Buy Mahindra & Mahindra Financial Services Ltd For Target Rs.220 - JM Financial Services
Buy Mahindra & Mahindra Financial Services Ltd For Target Rs.220 - JM Financial Services
Source: JM Financial Services Ltd
7/05/2022 9:31:43 AM
Buy Britannia Industries Ltd Target Rs.3850 - JM Financial Services Positive surprise on both margin and volumes Britannia 4QFY22 report was a positive surprise on margin as well as on volumes front. Volumes grew c.4% despite a double-digit cumulative price-hikes (c.10-11%), and is more so commendable given that the company needed to effect two-thirds of pricing through grammage reduction. The bigger surprise to us was on margin with slight sequential uptick in gross and operating margins despite commodity costs behaving the way they did (our workings sugg...
Buy Britannia Industries Ltd Target Rs.3850 - JM Financial Services
Buy Britannia Industries Ltd Target Rs.3850 - JM Financial Services
Source: JM Financial Services Ltd
7/05/2022 9:24:32 AM
Buy Bajaj Finserv Ltd For Target Rs. 17,000 - JM Financial Services Finance and life insurance businesses put up strong performance In 4QFY22, Bajaj FinServ (BJFIN) reported consol PAT of INR 13.5bn, up 7% QoQ / 38% YoY, with the finance arm, BAF, contributing 95% of the same as the insurance businesses were impacted by higher new business strain and claims. General insurance business, BAGIC, generated a PAT of INR2.5bn in 4QFY22, down 18% QoQ / down 9% YoY, impacted by i) crop claims, ii) higher claims severity of non COVID health claims and iii) lower ca...
Buy Bajaj Finserv Ltd For Target Rs. 17,000 - JM Financial Services
Buy Bajaj Finserv Ltd For Target Rs. 17,000 - JM Financial Services
Source: JM Financial Services Ltd
7/05/2022 9:16:49 AM
Automobile Sector Update - Sequential decline across segments; strong rural sentiments drive tractor demand By JM Financial Services Sequential decline across segments; strong rural sentiments drive tractor demand n Apr’22, all major OEMs have witnessed ‘April Phenomena’ where April sales are generally lower than March year-end sales push. PV OEMs' volumes remained impacted by semiconductor shortage. MSIL reported decline in wholesales (-9%MoM, -10%YoY) volumes in domestic PV. However, underlying demand remains strong along with high outstanding bookings and lean inventory. In case of 2Ws, increase...
Automobile Sector Update - Sequential decline across segments; strong rural sentiments drive tractor demand By JM Financial Services
Automobile Sector Update - Sequential decline across segments; strong rural sentiments drive tractor demand By JM Financial Services
Source: JM Financial Services Ltd
6/05/2022 2:47:52 PM
Buy Nippon Life India Asset Management Ltd For Target Rs. 435 - JM Financial Services Steady operational performance driven by muted opex NAM reported an operating PBT of INR 2bn (+27% YoY, -3% QoQ) driven by moderation in opex (-4% YoY, +3% QoQ) and operating revenue growth of +12% YoY/flat QoQ. While lower other income resulted into a PAT of INR 1.75bn (+5% YoY/+0.5% QoQ). Opex/QAAUM has improved to 19bps (-6bps YoY) and management indicated that headroom for further improvement remains limited. Overall MF QAAUM growth was moderate at +1% QoQ (+24% YoY) as equity and debt...
Buy Nippon Life India Asset Management Ltd For Target Rs. 435 - JM Financial Services
Buy Nippon Life India Asset Management Ltd For Target Rs. 435 - JM Financial Services
Source: JM Financial Services Ltd
4/05/2022 10:41:58 AM
IT Services Sector Update - Good for now; Margin commentary needs watching By JM Financial Services Good for now; Margin commentary needs watching Sequential revenue growth across the sector is likely to moderate in 4QFY22 (2.7-5.3%QoQ c/c revenue growth) with TechM and Wipro leading amongst Tier I techs.Tier II techs will outperform Tier I techs on growth yet again. EBIT margins will be down by 110-340 bps on a YoY basis across Tier I techs. While demand remains robust, we reckon downside risks to margins (current consensus expectations of ‘flat to higher’ margins in FY23 on...
IT Services Sector Update - Good for now; Margin commentary needs watching By JM Financial Services
IT Services Sector Update - Good for now; Margin commentary needs watching By JM Financial Services
Source: JM Financial Services Ltd
3/05/2022 2:22:14 PM
Techincal Quote on Market by Mr. Rahul Sharma, JM Financial Services Ltd Techincal Quote on Market by Mr. Rahul Sharma ,Director, Head- Technical & Derivatives Research, JM Financial Services Ltd.  "The current triangle consolidation is expected to break down if we close below 16,950 on the spot. Nifty needs to close above 17,200 for any chance of reversal in current trend. Traders will be keeping a close eye on the post policy press conference from Jerome Powell & Bank of England meet scheduled this week."   Above view...
Techincal Quote on Market by Mr. Rahul Sharma, JM Financial Services Ltd
Techincal Quote on Market by Mr. Rahul Sharma, JM Financial Services Ltd
Source: JM Financial Services Ltd
2/05/2022 2:26:57 PM
Cement Sector Update - Strong volumes to benefit in 4Q; Price hikes are still awaited By JM Financial Services Strong volumes to benefit in 4Q; Price hikes are still awaited  Cement demand picked up sharply in Dec’21 following a significant slowdown in Nov’21 and continued in Jan’22. However, demand witnessed modeation in in Feb’22, owing to unavailability of labour and elections in five major states, disrupting the construction activity in these regions, which was reversed quickly with strong uptick in Mar’22. We are factoring in a sequential volume change of +4%...
Cement Sector Update - Strong volumes to benefit in 4Q; Price hikes are still awaited By JM Financial Services
Cement Sector Update - Strong volumes to benefit in 4Q; Price hikes are still awaited By JM Financial Services
Source: JM Financial Services Ltd
30/04/2022 12:02:13 PM
JM Financial announces the elevation of Sonia Dasgupta as Chief Executive Officer, Investment Banking JM Financial Limited, India’s leading diversified financial services group has announced the elevation of Sonia Dasgupta as Chief Executive Officer, Investment Banking. In the new role, she will lead the strategic initiatives and accelerate growth for the business   Mr. Vishal Kampani, Non-Executive Vice Chairman, JM Financial Limited, said, “Sonia is a seasoned investment banking professional with a remarkable trackrecord. She brings the required leadership skills, ...
JM Financial announces the elevation of Sonia Dasgupta as Chief Executive Officer, Investment Banking
JM Financial announces the elevation of Sonia Dasgupta as Chief Executive Officer, Investment Banking
Source: JM Financial Services Ltd
30/04/2022 9:53:30 AM
Buy Bajaj Finance Ltd For Target Rs.9,000 - JM Financial Services Strong quarter; pushing the pedal on tech investments In 4QFY22, Bajaj Finance (BAF) delivered a strong PAT of INR 24.2bn (up, 14% QoQ / 80% YoY) aided by lower credit costs (as % of avg. loans: 153bps vs. 251bps QoQ / 346bps YoY). Opex continued to be at elevated levels (up, 1% QoQ / 30% YoY) and CIR was at c.35% (largely unchanged QoQ and YoY), given investments in teams and technology for business transformation. Other highlights of the quarter are: a) customer franchise inched-up to 57...
Buy Bajaj Finance Ltd For Target Rs.9,000 - JM Financial Services
Buy Bajaj Finance Ltd For Target Rs.9,000 - JM Financial Services
Source: JM Financial Services Ltd
28/04/2022 12:42:43 PM
Buy CMS Info Systems Ltd For Target Rs.350 - JM Financial Services ‘Best in Class’ at attractive valuation CMS Info Systems (CMS), India’s largest cash management player and one of the biggest managed services providers, will be a major beneficiary of emerging industry tailwinds such as a) increase in number of ATMs (replacement/new), b) ongoing industry consolidation (top 2 players enjoy c.72% market share vs c.60%% in FY18), and c) increasing compliance requirement and, hence, better pricing scenario (price hike ~30-40%). On top of ...
Buy CMS Info Systems Ltd For Target Rs.350 - JM Financial Services
Buy CMS Info Systems Ltd For Target Rs.350 - JM Financial Services
Source: JM Financial Services Ltd
28/04/2022 12:23:06 PM
India Industrials & Infrastructure Sector Update - Capex momentum on track By JM Financial Services Capex momentum on track We put down a list of industrial indicators that represents capex spends for FY22. Centre’s capex is up 20% YoY on YTD basis (Apr-Feb’22), giving the economy an initial push to lift sentiment and boost consumption volumes. Large CPSEs sustained pace of capex to INR 5.8 tn in FY22, attaining c.97% of the capital expenditure target for FY22. State capex stood at INR 3.3 tn on YTD basis (Apr-Feb’22), recording robust growth of 34% YoY (+18% o...
India Industrials & Infrastructure Sector Update - Capex momentum on track By JM Financial Services
India Industrials & Infrastructure Sector Update - Capex momentum on track By JM Financial Services
Source: JM Financial Services Ltd
27/04/2022 11:58:02 AM
Buy ICICI Lombard General Insurance Company For Target Rs.1,530 - JM Financial Services ROEs impacted by higher claims and investment into distribution n 4QFY22, ICICI Lombard (ICICIGI) delivered a strong topline recovery with GDPI up 32.9% YoY to INR46.7bn, however concurrent increase in claims and expenses resulted in reported PAT declining 9.6% vs pre-merger 4QFY21 to INR3.13bn. QoQ, PAT was down 1.5%. The underwriting loss in 4QFY22 increased 14.8% QoQ to INR3.09bn driven by i) continued tepid new car and 2W sales, ii) reserve strengthening in motor TP line, and iii) high...
Buy ICICI Lombard General Insurance Company For Target Rs.1,530 - JM Financial Services
Buy ICICI Lombard General Insurance Company For Target Rs.1,530 - JM Financial Services
Source: JM Financial Services Ltd
27/04/2022 10:10:25 AM
Buy Hindustan Zinc Ltd For Target Rs.355 - JM Financial Services In-line performance; dividend play Hindustan Zinc reported 4Q EBITDA of INR49.6bn, in line with JMfe. Key takeaways from the result - a) volume guidance for FY23 remains muted at 1,000-1,025 ktons / 700-725tons for refined metal and silver respectively b) CoP (without royalty) guidance for FY23 stands at USD1,125-1,175 as against 4Q CoP (without royalty) of USD1,136 c) 15% volumes have been hedged above ~USD4k d) consent to establish obtained by Hindustan Zinc Alloys to establish 30 kt pla...
Buy Hindustan Zinc Ltd For Target Rs.355 - JM Financial Services
Buy Hindustan Zinc Ltd For Target Rs.355 - JM Financial Services
Source: JM Financial Services Ltd
27/04/2022 10:00:59 AM
Buy ICICI Bank Ltd For Target Rs.1,010 - JM Financial Services Best-in-class ICICI Bank delivered RoA/RoE of 2.0%/16.8% in 4QFY22 – ahead of our and street estimates led by a strong overall performance on margins, credit costs and growth. NIMs inched up sequentially as share of high yielding credit card/personal loan products inched up (c.10% QoQ growth in both products) even as cost of deposits remained stable. Domestic wholesale loans grew at a relatively soft pace of 9.7% YoY (retail loans +19.7% YoY, SME loans +34% YoY). Overall core revenue...
Buy ICICI Bank Ltd For Target Rs.1,010 - JM Financial Services
Buy ICICI Bank Ltd For Target Rs.1,010 - JM Financial Services
Source: JM Financial Services Ltd
27/04/2022 9:54:48 AM
Textile Sector Update - Cotton price inflation to impact margins; long term prospects intact By JM Financial Services Cotton price inflation to impact margins; long term prospects intact Indian cotton sheet / terry towel exports to US increased 4.9%/9.3% YoY during Feb’22. India’s market share during Feb’22 improved MoM as Jan’22 was impacted due to the emergence of third wave. Market share across a) cotton sheet stood at 54% vs 44% in Jan’22 – China’s market share decreased by 540bps b) terry towel stood at 44% vs 35% in Jan’22 – China’s market ...
Textile Sector Update - Cotton price inflation to impact margins; long term prospects intact By JM Financial Services
Textile Sector Update - Cotton price inflation to impact margins; long term prospects intact By JM Financial Services
Source: JM Financial Services Ltd
21/04/2022 11:26:17 AM
Buy Navin Fluorine Ltd For Target Rs.4,440 - JM Financial Services CRAMS business poised for strong growth; maintain BUY We believe Navin’s existing CRAMS molecules are likely to scale up meaningfully over the next 3-4 years. As per our analysis, Navin’s CRAMS molecules are key intermediates of several patented pharmaceutical drugs. Some of these drugs have been launched recently and their end usage has been growing significantly. As per industry estimates, sales of these patented drugs are likely to peak by CY25-26. Hence, in our view, with t...
Buy Navin Fluorine Ltd For Target Rs.4,440 - JM Financial Services
Buy Navin Fluorine Ltd For Target Rs.4,440 - JM Financial Services
Source: JM Financial Services Ltd
21/04/2022 11:09:27 AM
Power Infra Sector Update - March 2022 power generation 3yr CAGR at 6%; Apr’22 (1-4 th) 3 year CAGR slows to 3% By JM Financial Services Mar’22 power generation 3yr CAGR at 6%; Apr’22 (1-4 th) 3 year CAGR slows to 3% On a 3 year CAGR basis (since FY20/21 have low base on Covid impact), power demand grew 6% from Mar’19-Mar’22 (Exhibit 1-2) vs 3% growth in Jan’22 / Feb’22 - due to rising air conditioning demand from heat waves in North/West India in Mar’22 (media article), coupled with 100% industrial /commercial activity (relaxation of Covid restrictions). The 1 st - 4 th Apr’2...
Power Infra Sector Update - March 2022 power generation 3yr CAGR at 6%; Apr’22 (1-4 th) 3 year CAGR slows to 3% By JM Financial Services
Power Infra Sector Update - March 2022 power generation 3yr CAGR at 6%; Apr’22 (1-4 th) 3 year CAGR slows to 3% By JM Financial Services
Source: JM Financial Services Ltd
13/04/2022 2:06:50 PM
Telecom Sector Update - 4Q Preview: Tariff hike to boost earnings despite muted subs addition By JM Financial Services 4Q Preview: Tariff hike to boost earnings despite muted subs addition We expect 4QFY22 to be a strong quarter for telecom companies with likely revenue and EBITDA growth of 6-11% QoQ due to the impact of ~20% tariff hike undertaken by the industry in Nov’21. However, the industry is witnessing outsized churn in the lower ARPU segments given the entry level prepaid tariff hike in Jul’21, followed by another sharp hike in Nov’21. Hence, it is likely to continue to witness m...
Telecom Sector Update - 4Q Preview: Tariff hike to boost earnings despite muted subs addition By JM Financial Services
Telecom Sector Update - 4Q Preview: Tariff hike to boost earnings despite muted subs addition By JM Financial Services
Source: JM Financial Services Ltd
11/04/2022 3:28:11 PM
RBI’s normalisation path a risk for lending business margins By JM Financial Services RBI’s normalisation path a risk for lending business margins RBI’s unease with the shift in monetary policy conduct is a trade-off between global headwinds and responding to the still-weak domestic recovery. The combination of global spillover of high inflation, elevated commodity prices, and slowdown in global trade, along with a decline in the post-pandemic potential GDP trajectory reflects in GDP growth being scaled down and inflation being scaled up. RBI’s strategy of...
RBI’s normalisation path a risk for lending business margins By JM Financial Services
RBI’s normalisation path a risk for lending business margins By JM Financial Services
Source: JM Financial Services Ltd
11/04/2022 11:11:11 AM
Buy PI Industries Ltd For Target Rs.3,460 - JM Financial Services CSM pipeline remains strong; maintain BUY We believe PI’s CSM molecules pipeline is likely to offer a big market opportunity, on top of its existing portfolio. We understand that PI has recently been granted registration by CIBRC to manufacture several patented molecules. One of these molecules has been jointly developed by IsAgro and FMC. This molecule provides PI long-term revenue growth visibility with peak estimated annual sales of USD 200-250mn (for PI) and patent validity beyon...
Buy PI Industries Ltd For Target Rs.3,460 - JM Financial Services
Buy PI Industries Ltd For Target Rs.3,460 - JM Financial Services
Source: JM Financial Services
8/04/2022 1:15:33 PM
Automobiles Sector Update - PV/CV segments improve sequentially; weak rural sentiment impacts 2W/tractor demand By JM Financial Services PV/CV segments improve sequentially; weak rural sentiment impacts 2W/tractor demand In Mar’22, PV OEMs' volumes increased sequentially indicating improvement in the chip situation. MSIL reported flat MoM (-7%YoY) volumes in domestic PV. Underlying demand in PVs remains strong with huge order backlog and lean inventory. In 2Ws, domestic sales continued to be weak due to muted demand. 2W export demand remained robust. TVSL premium 2W volumes were impacted owing to supply chain cons...
Automobiles Sector Update - PV/CV segments improve sequentially; weak rural sentiment impacts 2W/tractor demand By JM Financial Services
Automobiles Sector Update - PV/CV segments improve sequentially; weak rural sentiment impacts 2W/tractor demand By JM Financial Services
Source: JM Financial Services Ltd
5/04/2022 3:15:56 PM
Buy Gateway Distriparks Ltd For Target Rs.90 - JM Financial Services On a steady path; maintain BUY We recently interacted with the management of Gateway Distriparks (GDL) to take business update, post re-listing on 22 March 2022. GDL’s rail business continue to perform well with a) strong volume growth (significantly better than for market leader), and b) strong profitability, aided by concessions from Indian Railways (IR) as well as improved efficiency, especially post partial commissioning of Dedicated Freight Corridor (DFC). CFS business continue ...
Buy Gateway Distriparks Ltd For Target Rs.90 - JM Financial Services
Buy Gateway Distriparks Ltd For Target Rs.90 - JM Financial Services
Source: JM Financial Services Ltd
4/04/2022 2:49:41 PM