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Strategy : Buy ideas in the FII sell-off by JM Financial Institutional Securities Limited Nifty 50 is down 11% from its recent peak in Sep’24. During the course of this correction, 21% of stocks in the JM Financial coverage universe have fallen > 30%, 55% of stocks have fallen > 20% and 72% of the stocks have fallen > 15%. We expect a pick-up in government capex and rural demand in 2HFY25. Further, with continued SIP flows and hopefully a slowdown in FII outflows in the near future, it might not be a bad time to start analysing JM Financial’s preferred list of...
Strategy : Buy ideas in the FII sell-off by JM Financial Institutional Securities Limited
Strategy : Buy ideas in the FII sell-off by JM Financial Institutional Securities Limited
Source: JM Financial Services Ltd
2024-11-18 04:57:53 pm
Indian hospital sector`s market cap surges 9X to Rs 3.5 trillion in FY24 The market cap of the Indian hospital sector surged 9 times from Rs 375 billion in FY20 to Rs 3.5 trillion in FY24 riding on improved pricing, higher insurance coverage, and dedicated shift towards complex surgeries such as transplants, a report showed on Monday.   Apart from the momentary Covid boost, there were many structural changes in the Indian healthcare space like increased health awareness, higher insurance coverage, growing acceptance towards modern hospital experience and p...
Indian hospital sector`s market cap surges 9X to Rs 3.5 trillion in FY24
Indian hospital sector`s market cap surges 9X to Rs 3.5 trillion in FY24
Source: IANS
2024-07-16 09:50:38 am
Life Insurance Sector Update : Monthly Life Insurance data from across India - JM Financial Services Mar’24 saw the life insurance industry contract by 13.3% in individual APE, on a strong base. Mar’23 had seen the industry grow 37.6% YoY on pre-buying of INR 500,000+ ticket-sized traditional policies, following taxation of these policies. On the back of strong sales in Mar’23, FY24 had begun softly for life insurers and, with the base of Mar’23, the industry reported a sub-par growth of 4.8% in individual APE and 4.1% in total APE terms, in FY24, against a 5-year CAG...
Life Insurance Sector Update : Monthly Life Insurance data from across India - JM Financial Services
Life Insurance Sector Update : Monthly Life Insurance data from across India - JM Financial Services
Source: JM Financial Services
2024-06-08 11:24:34 am
Buy Reliance Industries Ltd For Target Rs. 3,320 - JM Financial Institutional Securities RIL’s Cons 4QFY24 EBITDA was 1% above JMFe/consensus at INR 425bn (up 10.8% YoY and up 4.6% QoQ) due to stronger-than-expected O2C EBITDA partly offset by weaker Retail EBITDA, while Digital EBITDA was in line. O2C business EBITDA at INR 167.8bn was 6.7% above JMFe driven by strong GRMs while E&P EBITDA was also 3.6% above JMFe at INR 56bn. Digital EBITDA at INR 146.4bn was in line with JMFe; ARPU was flattish QoQ but subscriber growth continued to be robust, at 10.9mn. Retail busin...
Buy Reliance Industries Ltd For Target Rs. 3,320 - JM Financial Institutional Securities
Buy Reliance Industries Ltd For Target Rs. 3,320 - JM Financial Institutional Securities
Source: JM Financial Services
2024-06-08 11:19:57 am
Utilities Sector Update :Vaults of Power Unleashing battery energy storage By JM Financial Institutional Securities In the future, power systems are expected to increasingly rely on RE sources such as wind and solar. However, these sources present inherent challenges due to their variability and intermittency, which can pose obstacles to safe and reliable grid operations. India has been making significant strides in increasing RE into its generation mix, aiming to achieve 50% capacity from non-fossil fuel-based energy by 2030. To support this ambitious goal, the next phase of growth necessitates the integr...
Utilities Sector Update :Vaults of Power Unleashing battery energy storage By JM Financial Institutional Securities
Utilities Sector Update :Vaults of Power Unleashing battery energy storage By JM Financial Institutional Securities
Source: JM Financial Services
2024-05-19 11:53:50 am
Buy Tata Technologies Ltd For Target Rs. 1,370 - JM Financial Institutional Securities Tata Technologies (TATATECH IN; BUY) announced a JV with the BMW group. The JV entails building a software hub with 1,000+ resources offering automotive software and digital engineering services for the BMW group. Our back of the envelop calculation indicates the JV, at steady state, could add 4-5% to our current earnings estimates. Near-term earnings upside aside, the implications of the deal seem far reaching to us. It allays concerns that TATATECH’s parentage is a hurdle in getting b...
Buy Tata Technologies Ltd For Target Rs. 1,370 - JM Financial Institutional Securities
Buy Tata Technologies Ltd For Target Rs. 1,370 - JM Financial Institutional Securities
Source: JM Financial Services
2024-05-19 11:47:08 am
Sector Update : Weak imports aid trade balance; Disruption in Red sea adds upside risk - JM Financial Institutional Securities Seasonally strong month ensured strong sequential gains in trade activity in Dec’23. Imports were comparatively weaker despite seasonality, which aided narrowing in trade deficit to USD 19.8bn. Weakness in imports was mainly due to the price–led fall in crude oil imports, as crude prices declined 7.3% sequentially. The impact of the disruption in the Red sea is likely to reflect in the trade figures of Jan’24. India’s trade with Europe and Africa is substantial as expo...
Sector Update : Weak imports aid trade balance; Disruption in Red sea adds upside risk - JM Financial Institutional Securities
Sector Update : Weak imports aid trade balance; Disruption in Red sea adds upside risk - JM Financial Institutional Securities
Source: JM Financial Services
2024-04-26 12:55:31 pm
Sector Update : Ethanol blending Hitting a small bump on a long journey - JM Financial Institutional Securities The government’s Ethanol Blended Petrol (EBP) Programme, launched in 2002, went through several ups and down before a structural increase post 2017; it hit a record c.12% in ESY23 (Nov-Oct). However, the programme will encounter a modest hurdle (flat YoY vs. YoY improvement since 2017) in ESY24, in our opinion, on account of the government’s restriction on B-heavy/ sugar syrup-based ethanol production (constituted over 75% of supply in ESY23). While the government remains committe...
Sector Update : Ethanol blending Hitting a small bump on a long journey - JM Financial Institutional Securities
Sector Update : Ethanol blending Hitting a small bump on a long journey - JM Financial Institutional Securities
Source: JM Financial Services
2024-04-26 12:40:39 pm
MSCI India index rebalancing could see inclusion of 18 stocks with inflow of $2.7 bn MSCI India Standard Index rebalancing announcement scheduled on May 14 is expected to see one of the largest inclusions of 18 stocks with inflows of $2.7 billion. JM Financial Institutional Securities said the price cut-off date for the rebalancing is any of the last 10 business days in the month of April. “Based on the current price, we expect the following inclusions and exclusions. However, the list is subject to change, depending on the stock price prevailing during the cut-of...
MSCI India index rebalancing could see inclusion of 18 stocks with inflow of $2.7 bn
MSCI India index rebalancing could see inclusion of 18 stocks with inflow of $2.7 bn
Source: IANS
2024-04-09 12:33:35 pm
IT companies likely to report a muted quarter again Subpar growth should persist in Q4 for IT companies as muted demand trends continue on account of weak discretionary spending and cautious behaviour by clients, amid uncertain macros, Emkay Global Financial Services said. Margins should remain steady despite weak revenue growth, as companies optimise costs and tighten discretionary spending. The expectations of slower and shallower rate cuts may delay recovery for IT companies, the brokerage said. IT companies should report a muted quar...
IT companies likely to report a muted quarter again
IT companies likely to report a muted quarter again
Source: IANS
2024-04-01 02:14:40 pm
Sector Update : IPM Pulse: Growth recovers from weak Dec By JM Financial Institutional Securities IPM Pulse: Growth recovers from weak Dec * SUNP, CIPLA, TRP, IPCA and DRRD outperform: Based on Jan’24 MAT IPM data, Sun retained its top spot with ~8% market share (ms). For the same period, JB Pharma has improved its rank by 2 places to 22nd . For the month of Jan ’24, from our coverage, IPCA, Cipla, SUNP, TRP and DRRD outperformed the IPM, growing 14.3%/9.6%/8.9%/8.6%/8.3% YoY respectively. ZYDUSLIF and LPC underperformed the IPM due to mixed performance of top brands for...
Sector Update : IPM Pulse: Growth recovers from weak Dec By JM Financial Institutional Securities
Sector Update : IPM Pulse: Growth recovers from weak Dec By JM Financial Institutional Securities
Source: JM Financial Institutional Securities
2024-03-06 10:28:02 am
Buy R R Kabel Ltd For Target Rs. 1,790 - JM Financial * Healthy outlook for domestic W&C industry: The domestic wires and cables (W&C) industry is poised to grow at a healthy pace (typically 2x of real GDP growth rate) given a) rapid development of infrastructure such as metros, highways, railways by the government, b) policies like revamping power distribution from overhead to underground cables and affordable housing schemes, and c) robust real estate demand, driving growth for the industry. Further, with continuous product improvem...
Buy R R Kabel Ltd For Target Rs. 1,790 - JM Financial
Buy R R Kabel Ltd For Target Rs. 1,790 - JM Financial
Source: JM Financial Institutional Securities
2024-03-05 11:38:37 am
Buy State Bank of India Ltd For Target Rs. 860 - JM Financial Institutional Securities * Well positioned to deliver ~15% growth in FY25E: : SBI remains confident of delivering ~15% loan growth in FY25E. Given that SBI's domestic LDR ratio remains comfortable at ~67%; management believes that growth aspirations are realistic despite systemic pressure on deposits. Retail loans are expected to continue healthy growth momentum, (15% YoY in 3QFY24) while SME segment is likely to outperform other segments (17- 18% YoY growth). Within agri segments too, SBI intends to focus mor...
Buy State Bank of India Ltd For Target Rs. 860 - JM Financial Institutional Securities
Buy State Bank of India Ltd For Target Rs. 860 - JM Financial Institutional Securities
Source: JM Financial Institutional Securities
2024-03-05 11:34:14 am
India`s Zomato hits record high, bucking internet stocks` sluggishness Shares of Indian food delivery platform Zomato hit a record high on Friday, as improving profitability paves the way for future growth, triggering a turnaround in investor sentiment. Zomato is the most-valuable internet stock in Asia's third-largest economy, with a market capitalisation of more than 1.51 trillion rupees ($18 billion). On Friday, its shares rose nearly 5% to 173.5 rupees. India's several new-age internet companies that hit the markets during the IPO frenzy in 202...
India`s Zomato hits record high, bucking internet stocks` sluggishness
India`s Zomato hits record high, bucking internet stocks` sluggishness
Source: Reuters
2024-03-01 02:34:45 pm
Buy PCBL Ltd For Target Rs. 355 - JM Financial Institutional Securities PCBL’s 3QFY24 earnings print was significantly better than our and consensus expectations on account of a jump in per kg profitability amid higher-than-anticipated volumes. Despite lower specialty volumes, higher profitability could have been on account of i) higher export share, ii) positive operating leverage, iii) better product mix within non-specialty, and iv) some reversible gains owing to supply tightness. Hence, going forward, we build in slight moderation in per kg EBITDA albei...
Buy PCBL Ltd For Target Rs. 355 - JM Financial Institutional Securities
Buy PCBL Ltd For Target Rs. 355 - JM Financial Institutional Securities
Source: JM Financial Services Ltd
2024-02-29 02:44:05 pm
Buy PNC Infratech Ltd For Target Rs. 515 - JM Financial Institutional Securities PNC Infratech (PNC) has signed definitive agreement with Highways Infrastructure Trust (KKR) for sale of 12 road assets at Enterprise value of INR 90bn. Equity value of the deal stands at INR 29bn, implying P/B of 1.7x. Monetization proceeds will be used to fund pending equity commitment and for future growth. Details are mentioned below:- * PNC has entered into definitive agreement with Highways Investment Trust (KKR) for sale of 12 road assets. It includes 11 HAM assets and 1 BOT Toll as...
Buy PNC Infratech Ltd For Target Rs. 515 - JM Financial Institutional Securities
Buy PNC Infratech Ltd For Target Rs. 515 - JM Financial Institutional Securities
Source: JM Financial Services Ltd
2024-02-29 02:17:12 pm
Fall in share of food in rural consumption basket indirectly indicates uptick in rural income The fall in share of food below 50 per cent mark at 46.3 per cent in rural consumption basket would have far reaching implications for the upcoming decade, as this would open up scope for a pick-up in discretionary spending, JM Financial Institutional Securities said in a report. India’s latest household consumption survey for 2022- 23, paints an optimistic picture especially for the rural economy. Fall in share of food in the rural consumption basket indirectly indicates uptick in r...
Fall in share of food in rural consumption basket indirectly indicates uptick in rural income
Fall in share of food in rural consumption basket indirectly indicates uptick in rural income
Source: IANS
2024-02-28 03:29:24 pm
Global automakers scale back electric vehicles, turn towards hybrids Global electrification, previously driven by strong electric vehicle sales, is now showing signs of growth moderation despite supply chain normalisation and price reductions by OEMs, as per a report by JM Financial Institutional Securities. Global automakers like Mercedes, Ford, GM, VW are scaling back EV investments and turning towards hybrids due to shifting consumer preferences and challenges like inadequacy and slow pace of charging infrastructure expansion. We believe the situation is...
Global automakers scale back electric vehicles, turn towards hybrids
Global automakers scale back electric vehicles, turn towards hybrids
Source: IANS
2024-02-27 01:51:05 pm
Three months into the general election results, Nifty closed in the green on four occasions On a 3-month basis into the election results, the Nifty has closed in the green on four occasions with an average up-move of 10.7%, JM Financial Institutional Securities said in a research on markets movement post India’s general elections. The maximum positive move of 25% was observed in 2009 while a minimum positive move of 8% was observed in 2019. The index had closed in the red in 2004, down by 10%. However, it was followed by a massive recovery from Jun’04 onwards, the res...
Three months into the general election results, Nifty closed in the green on four occasions
Three months into the general election results, Nifty closed in the green on four occasions
Source: IANS
2024-02-26 01:02:29 pm
Sector Update: India Internet From Clicks to Cash Profitability Paradigm in Ecommerce By JM Financial Institutional Securities E-commerce penetration plateauing for big-ticket items and rising for long-tail products: In big-ticket categories such as large electronics and mobiles, 70%+ of our survey participants do shop online already. Predictably, 52% participants had 50%+ online wallet share for mobiles while the same was only 27% for large electronics. However, 55% / 50% of people shopping large electronics / mobiles online answered negatively when asked about their willingness to increase their online wallet ...
Sector Update: India Internet From Clicks to Cash Profitability Paradigm in Ecommerce By JM Financial Institutional Securities
Sector Update: India Internet From Clicks to Cash Profitability Paradigm in Ecommerce By JM Financial Institutional Securities
Source: JM Financial Institutional Securities
2024-02-24 04:26:29 pm
Buy NHPC Ltd For Target Rs . 85 - JM Financial Institutional Securities NHPC makes a splash NHPC Ltd is the largest hydropower-generating utility in the country with an aggregate installed capacity of 7,071MW (15% of India’s installed hydropower capacity). With 10,515MW of projects under construction (hydro + renewables), the company’s installed capacity with regulated return is set to grow by 3,420 MW by FY26, up by 50% after a gap of 3 years resulting in Revenue/EBITDA/PAT CAGR of 20%/24%/11% over FY23-26E. With a dividend yield of 2.5%, and nati...
Buy NHPC Ltd For Target Rs . 85 - JM Financial Institutional Securities
Buy NHPC Ltd For Target Rs . 85 - JM Financial Institutional Securities
Source: JM Financial Institutional Securities Ltd
2024-02-22 03:26:44 pm
Buy HDFC Bank Ltd For Target Rs. 2,010 - JM Financial Institutional Securities NIM pressures persist HDFC Bank's 3QFY24 core-PPOP at INR 222bn (2.4% QoQ), missed our estimates (of Rs233bn) as NIMs (3.4%) remained flat QoQ at the relatively suppressed levels seen in 2QFY24. This, despite a) the impact of ICRR (which was a drag on NIMs in 2Q), excess liquidity build-up due to merger management not being there and b) LCR run down from 121% to 110% during the quarter. We estimate core margins could have declined by >20bps QoQ for HDFC Bank which was a disappointme...
Buy HDFC Bank Ltd For Target Rs. 2,010 - JM Financial Institutional Securities
Buy HDFC Bank Ltd For Target Rs. 2,010 - JM Financial Institutional Securities
Source: JM Financial Institutional Securities Ltd
2024-02-22 01:50:14 pm
Buy PCBL Ltd For Target Rs . 355 - JM Financial Institutional Securities Ltd Robust exports, positive operating leverage drive earnings beat PCBL’s 3QFY24 earnings print was significantly better than our and consensus expectations on account of a jump in per kg profitability amid higher-than-anticipated volumes. Despite lower specialty volumes, higher profitability could have been on account of i) higher export share, ii) positive operating leverage, iii) better product mix within non-specialty, and iv) some reversible gains owing to supply tightness. Hence, ...
Buy PCBL Ltd For Target Rs . 355 - JM Financial Institutional Securities Ltd
Buy PCBL Ltd For Target Rs . 355 - JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities
2024-02-22 12:51:54 pm
FMCG stocks underperformed benchmark index in last one year  Corporate commentary in the quarter gone by lacked any concrete evidence of pickup in rural demand which reflected in the underperformance of the FMCG sector in every time frame in last one year, JM Financial Institutional Securities said in a report. Risk-on sentiments are still prevalent in 2024, as is evident from the small and mid caps outperformance over Nifty in last one month. However, we continue to believe that 2024 would be the year of large caps over SMID, as asset allocat...
FMCG stocks underperformed benchmark index in last one year
FMCG stocks underperformed benchmark index in last one year
Source: IANS
2024-02-21 01:45:23 pm
FIIs massively sold financial stocks worth $30bn in January FIIs massively sold financial stocks worth $30 billion while IT sector saw large buying of $4.5 billion in January 2024, JM Financial Institutional Securities said in a report. The sector-wise breakup of FII selling in January 2024, reveals that FIIs massively sold financials to the tune of $30 billion which was followed by FMCG ($2.7 billion). They lapped up the IT sector ($4.5 billion). Even on FYTD basis, FIIs are net sellers in financials, the report said. FII flows reverted to posi...
FIIs massively sold financial stocks worth $30bn in January
FIIs massively sold financial stocks worth $30bn in January
Source: IANS
2024-02-21 12:37:01 pm
Premium segment up but demand for mass products remains subdued Electrical Consumer Durable (ECD) companies’ revenue grew by 9% YoY (+12% 4-year CAGR) in 3QFY24, largely led by B2B segment (particularly cables, switchgears, professional lighting) while demand for most B2C segments remained muted as festive cheer was short-lived and significant weakness post November across most categories, JM Financial Institutional Securities said in a report. Within B2C, premium segment has fared well while entry/economy segments, particularly rural pockets, co...
Premium segment up but demand for mass products remains subdued
Premium segment up but demand for mass products remains subdued
Source: IANS
2024-02-20 04:01:13 pm
Hindalco shares slump 13 per cent after Novelis results Hindalco Industries shares slumped 13 per cent on Tuesday after its subsidiary, Novelis reported a project escalation cost for its Bay Minette plant. Hindalco shares were trading at Rs 501.75, down 13.84 per cent on BSE. JM Financial Institutional Securities said in a report that Novelis has revised its capex guidance for its Bay Minette plant from $2.7-2.8 billion to $4.1 billion (up 52%) of which $750 million to be incurred till March’24 – plant is likely to be commissione...
Hindalco shares slump 13 per cent after Novelis results
Hindalco shares slump 13 per cent after Novelis results
Source: IANS
2024-02-13 01:54:11 pm
Buy Maruti Suzuki India Ltd For Target Rs.12,250- JM Financial Institutional Securities Limited MSIL’s 3QFY24 EBITDA margin came in at 11.7% was in-line with JMFe. Sequential decline (120bps) was owing to negative operating leverage (seasonality) and higher discounts. Chip supplies have largely normalised, helping lower the order backlog (c.215k units). MSIL, with back-to-back SUV launches has strengthened its presence in the B-segment (regained leadership position with c.24% mkt. share). Healthy momentum in SUV/CNG portfolio is expected to drive vol. growth. Benefit of higher ope...
Buy Maruti Suzuki India Ltd For Target Rs.12,250- JM Financial Institutional Securities Limited
Buy Maruti Suzuki India Ltd For Target Rs.12,250- JM Financial Institutional Securities Limited
Source: JM Financial Institutional Securities Ltd
2024-02-11 02:19:15 pm
Buy Sun Pharmaceutical Industries Ltd Target Rs.1,580 - JM Financial Institutional Securities Ltd Sun surprised the Street positively, yet again. Excluding milestone income (USD 20mn) Global specialty sales came in at USD 276mn, up USD 36mn QoQ. This was primarily led by Ilumya, Cequa and Levulan. Among geographical segments, US grew ahead of estimates, India was in line and EM/RoW disappointed on account of weaker currency. EBITDA margin of ~28% was partly driven by milestone income and forex gain adjusting for this margin was 26.1%. Reported PAT was INR 25bn, up 17% YoY (6% beat). Notab...
Buy Sun Pharmaceutical Industries Ltd Target Rs.1,580 - JM Financial Institutional Securities Ltd
Buy Sun Pharmaceutical Industries Ltd Target Rs.1,580 - JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-02-11 02:08:11 pm
Buy Wipro Ltd For Target Rs.550 - JM Financial Institutional Securities Limited Wipro’s 3QFY24 performance suggests inflection. Revenues (-1.7% cc QoQ) came towards the upper end of the guided band, a first in past four quarters. Next quarter’s guide is incrementally better (-1.5% to + 0.5%) after three quarters of sequentially lower bands. CAPCO, its consulting business, saw double digit booking growth. That, we believe, is a first quantitative sign of rebound in discretionary spend. CAPCO’s exposure to discretionary budget plagued WPRO’s recent ...
Buy Wipro Ltd For Target Rs.550 - JM Financial Institutional Securities Limited
Buy Wipro Ltd For Target Rs.550 - JM Financial Institutional Securities Limited
Source: JM Financial Institutional Securities Ltd
2024-01-30 04:09:14 pm
Buy JSW Energy Ltd For Target Rs.4,505 - JM Financial Institutional Securities Limited DMart’s Dec-Q performance was broadly on expected lines after having built in the growth disappointment laid out in the revenue update provided by the company earlier. Sales per store that accelerated somewhat during 2Q seems to be softened a tad again during 3Q – weaker-than-warranted festive offtakes have impacted non-essential sales and salience with consequential impact on margin as well, in our view. Interestingly, however, management commentaries point to a silver-lining on ...
Buy JSW Energy Ltd For Target Rs.4,505 - JM Financial Institutional Securities Limited
Buy JSW Energy Ltd For Target Rs.4,505 - JM Financial Institutional Securities Limited
Source: JM Financial Institutional Securities Ltd
2024-01-30 03:47:12 pm
Buy JSW Energy Ltd For Target Rs.500 - JM Financial Institutional Securities Limited Stake sale in JSW Neo could raise USD 1bn Media reports suggest that JSW Energy plans to raise USD 1bn by monetising its stake in JSW Neo, which has an asset base of 5.9GW and is developing 3.4GWh energy storage, 1GW solar module manufacturing and a 3,800TPA green hydrogen manufacturing facility. With a vision of 20GW capacity by 2030, JSW Energy continues to pursue an opportunistic strategy; it acquired stressed but good-quality Mytrah Energy (1,331MW of wind and 422MW of solar) at an EV ...
Buy JSW Energy Ltd For Target Rs.500 - JM Financial Institutional Securities Limited
Buy JSW Energy Ltd For Target Rs.500 - JM Financial Institutional Securities Limited
Source: JM Financial Institutional Securities Ltd
2024-01-27 01:02:05 pm
Company Update: Tata Consumer Products Ltd - JM Financial Institutional Securities Limited Going aggressive on white spaces TCPL’s acquisitions of Capital Foods and Organic India signify aggression to tap white spaces with a clear intent to build a more comprehensive premium F&B portfolio with high growth potential. The acquisitions are at c.6.8x and c.5.2x FY24E sales of Capital Foods and Organic India vs TCPL’s own valuation at c.7x at CMP, c.5-5.5x at 3-6M ago prices, and add c.6% to TCPL’s Sales and EBITDA. Capital Foods has scaled well in the past (5-y...
Company Update: Tata Consumer Products Ltd - JM Financial Institutional Securities Limited
Company Update: Tata Consumer Products Ltd - JM Financial Institutional Securities Limited
Source: JM Financial Institutional Securities Ltd
2024-01-27 12:16:42 pm
Buy Just Dial Ltd For Target Rs.1,010 - JM Financial Institutional Securities Limited Margin drives EBITDA beat, subscription trends a concern Just Dial’s accelerated margin recovery towards pre-Covid levels continued as it reported the 7 th consecutive quarter of sequential margin expansion, a cumulative improvement of 26.5ppts. In 3QFY24, margin improved 4.1ppts QoQ (+10.5ppts YoY) to 22.8%, a beat on Cons/JMFe by c.250bps/280bps, on the back of strong cost control. Revenue growth was also decent at 19.7% YoY (1.7% QoQ), albeit it missed JMFe/Cons. by 1.3%/1.8%. How...
Buy Just Dial Ltd For Target Rs.1,010 - JM Financial Institutional Securities Limited
Buy Just Dial Ltd For Target Rs.1,010 - JM Financial Institutional Securities Limited
Source: JM Financial Institutional Securities Ltd
2024-01-27 12:06:03 pm
Healthcare Sector Update : 3QFY24 Preview: US growth to sustain, domestic steady By JM Financial Institutional Securities Ltd In 3QFY24, we expect double-digit domestic growth from IPCA, TRP, CIPLA and SUNP. We expect gRevlimid contribution of USD 95mn/ USD 54mn/ USD 20mn for DRRD, Cipla and SUNP, respectively. SUNP (specialty growth, gRevlimid, Mohali supply resumption) and LPC (gSpiriva, gPrezista) can potentially deliver positive earnings surprise. We expect sequential improvement in BIOS’ revenue driven by ramp-up in existing biosimilars, higher generics revenue and research contribution. Due to Unichem ac...
Healthcare Sector Update : 3QFY24 Preview: US growth to sustain, domestic steady By JM Financial Institutional Securities Ltd
Healthcare Sector Update : 3QFY24 Preview: US growth to sustain, domestic steady By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-19 05:01:45 pm
Brokerage shows discomfort at Ola Electric`s rush for IPO instead of first stabilizing internal operations Ola Electric Mobility (Ola Electric) has always been in limelight for various reasons (-ve as well as +ve), the current buzz is its upcoming IPO, says JM Financial Institutional Securities in a report. While the company has taken an early lead in the domestic E2W industry, product-related issues continue. Given the industry is still in a nascent stage, focusing on market share may be misleading. 1) Recent introduction of lower ASP models, 2) adjustments for higher R&D capitalisation, 3...
Brokerage shows discomfort at Ola Electric`s rush for IPO instead of first stabilizing internal operations
Brokerage shows discomfort at Ola Electric`s rush for IPO instead of first stabilizing internal operations
Source: IANS
2024-01-19 12:20:38 pm
Real Estate Sector Update : Outlook 2024 By JM Financial Institutional Securities Ltd India’s Real Estate sector continues to move from strength to strength, and we believe the sector will continue its upward march in CY24 as well. The residential segment remains buoyant (21% YoY growth), with absorption levels at a decadal high across the top 7 cities (687msf in CY23E; JMFe and Propequity). There has been a shift towards premiumisation, as growth was led by accelerating demand in the mid and premium segments (INR 10mn+). The demand-supply scenario is healthy directional...
Real Estate Sector Update : Outlook 2024 By JM Financial Institutional Securities Ltd
Real Estate Sector Update : Outlook 2024 By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-18 10:08:26 am
Utilities Sector Update : 3QFY24 Preview: Demand Seasonality to Mute Earnings By JM Financial Institutional Securities Ltd We expect utilities under our coverage to report 6% YoY revenue growth driven by 11% YoY growth in power demand. However, earnings to remain flat (EBITDA -2.6%, PAT -0.5% YoY). Key monitorables going forward are sustenance of power demand, trend in international coal prices, and the pace of transition to clean energy. Overall, we remain positive on the utilities space with likely stability in power demand, pickup in thermal capex and continued momentum in RE additions. * Power demand remai...
Utilities Sector Update : 3QFY24 Preview: Demand Seasonality to Mute Earnings By JM Financial Institutional Securities Ltd
Utilities Sector Update : 3QFY24 Preview: Demand Seasonality to Mute Earnings By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-16 02:28:39 pm
NBFC Sector Update :Steady Quarter By JM Financial Institutional Securities Ltd In 3QFY24, we expect our NBFC coverage universe to report 28% YoY earnings growth led by 21% YoY NII growth and 23% YoY PPOP growth and lower credit costs being the critical driver for earnings performance. Impact of CoFs on margins to be a key monitorable and we build mild compression across the coverage universe. As indicated earlier, growth is likely to be well rounded across most companies with commentary on unsecured loans (in aftermath of RBI recent changes) to be watched out for. Key d...
NBFC Sector Update :Steady Quarter By JM Financial Institutional Securities Ltd
NBFC Sector Update :Steady Quarter By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-16 11:14:57 am
OMCs downgraded as risk-reward turns unfavourable JM Financial Institutional Securities said in a report that in the absence of any valuation comfort post recent rally (OMCs trading at 10-30 per cent premium to historical P/B valuations), the risk-reward has turned unfavourable and therefore downgrade of HPCL, IOC, BPCL. Stock prices of OMCs (HPCL/BPCL/IOCL) have rallied by 30-70 per cent in the last two months driven by sharp jump in auto-fuel gross marketing margin (GMM) on account of moderation in crude price/product cracks; near-term ...
OMCs downgraded as risk-reward turns unfavourable
OMCs downgraded as risk-reward turns unfavourable
Source: IANS
2024-01-09 12:26:21 pm
Real Estate Sector Update :India`sweeklyreal estatenews&numbers By JM Financial Institutional Securities Ltd We highlight this week’s top real estate news: * Property registration in Mumbai rises 4% YoY to record 126,907 units in CY23: Property registration in Mumbai increased 4% YoY to an all-time high of 126,907 units in CY23 on the back of better demand, according to Knight Frank. The registration number hit a record in CY23, beating previous high of 122,035 units in CY22. The state government collected revenue of INR 108.7bn as stamp duty in CY23 (+22% YoY). In Dec’23, 12,255 unit...
Real Estate Sector Update :India`sweeklyreal estatenews&numbers By JM Financial Institutional Securities Ltd
Real Estate Sector Update :India`sweeklyreal estatenews&numbers By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-09 11:13:42 am
Economy Update: India GDP NSO paints an optimistic picture with upside risk to FD target By JM Financial Institutional Securities Ltd The first advance estimates pegs real GDP growth at 7.3% in FY24, which is even better than 7.2% in FY23. However improving inflationary scenario led to a lower deflator (1%), eventually implying a lower nominal GDP growth of 8.9 vs budgeted growth of 10.5. NSO’s growth estimates imply a sluggish H2, which is most notable in the performance of Industrial and agricultural activities even as Services performance is relatively robust. Government consumption is expected to remain weak while...
Economy Update: India GDP NSO paints an optimistic picture with upside risk to FD target By JM Financial Institutional Securities Ltd
Economy Update: India GDP NSO paints an optimistic picture with upside risk to FD target By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-08 05:18:00 pm
Banking Sector Update :2024 - Redux 2023 or any different? By JM Financial Institutional Securities Ltd Notwithstanding the strong fundamental performance by Indian banks in CY23 (reflected in decadal high return ratios, strong asset quality and healthy growth), the year ended with modest relative returns for the sector and underperforming the benchmark Nifty – Niftybank 12%, Nifty Pvt Bank 14% vs Nifty 20% (barring Nifty PSU Bank Index which was up 32% ). In our view, this modest show can be attributed to multiple reasons– doubts on FY25/CY24 revenue growth as NIMs moderate, emergi...
Banking Sector Update :2024 - Redux 2023 or any different? By JM Financial Institutional Securities Ltd
Banking Sector Update :2024 - Redux 2023 or any different? By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-08 03:38:55 pm
Economy Update: 2024 Outlook Monetary policy to set the tone; India on a strong footing By JM Financial Institutional Securities Ltd We expect central banks and their monetary policy actions to decide the path in 2024. We believe RBI could lag Fed’s rate cuts, at the start of H2. Although a recession is not our base case, we expect central banks to avoid premature decisions in 2024 as well. The revival in rural wages and absence of election hangover now sets a clearer direction for the markets. Our assessment of financials of ~4,000 companies reveals that fiscal positions are aligned for a pickup in private capex. La...
Economy Update: 2024 Outlook Monetary policy to set the tone; India on a strong footing By JM Financial Institutional Securities Ltd
Economy Update: 2024 Outlook Monetary policy to set the tone; India on a strong footing By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-08 02:26:25 pm
Buy Bharat Heavy Electricals Ltd Target Rs.225 - JM Financial Institutional Securities Ltd Behemoth to Live On JM Financial Institutional Securities Limited JM Financial Research is also available on: Bloomberg - JMFR , Thomson Publisher & Reuters, S&P Capital IQ, FactSet and Visible Alpha Please see Appendix I at the end of this report for Important Disclosures and Disclaimers and Research Analyst Certification. With the opening up of 60GW of opportunities amidst limited competition, BHEL is poised for the next cycle of growth and performance, a situation previously seen d...
Buy Bharat Heavy Electricals Ltd Target Rs.225 - JM Financial Institutional Securities Ltd
Buy Bharat Heavy Electricals Ltd Target Rs.225 - JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-05 05:08:08 pm
Aviation Sector Update :Festive cheers likely to boost sector profitability By JM Financial Institutional Securities Ltd Passenger traffic for Nov’23 registered a marginal growth MoM to 12.7mn. Dec’23 passenger traffic run rate implies ~13.9mn up 8% MoM. Industry PLF clocked 86.3% - up 170 bps MoM. Indigo’s PLF stood at ~85.6% (up 230bps MoM) while Air India’s PLF stood at ~84.8% (down 70bps MoM). Indigo lost market share during Nov’23, with its share at 61.8% (vs. 62.6% in Oct’23). Spicejet’s market share stood at 6.2% (vs. 5% in Oct’23). Airline fares witnessed ...
Aviation Sector Update :Festive cheers likely to boost sector profitability By JM Financial Institutional Securities Ltd
Aviation Sector Update :Festive cheers likely to boost sector profitability By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-05 04:46:37 pm
Aviation Sector Update :Festive cheers likely to boost sector profitability By JM Financial Institutional Securities Ltd Passenger traffic for Nov’23 registered a marginal growth MoM to 12.7mn. Dec’23 passenger traffic run rate implies ~13.9mn up 8% MoM. Industry PLF clocked 86.3% - up 170 bps MoM. Indigo’s PLF stood at ~85.6% (up 230bps MoM) while Air India’s PLF stood at ~84.8% (down 70bps MoM). Indigo lost market share during Nov’23, with its share at 61.8% (vs. 62.6% in Oct’23). Spicejet’s market share stood at 6.2% (vs. 5% in Oct’23). Airline fares witnessed ...
Aviation Sector Update :Festive cheers likely to boost sector profitability By JM Financial Institutional Securities Ltd
Aviation Sector Update :Festive cheers likely to boost sector profitability By JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-05 12:58:16 pm
Buy Sun Pharmaceutical Industries Ltd Target Rs.1,440 - JM Financial Institutional Securities Ltd Bolder and bigger bets ahead? Sun’s annual operating cash flows of USD 1bn+ and potential access to Taro’s rich cash reserves (if the offer sails through) creates room for bolder and bigger bets (such as Concert), in our view. The key focus area is derma and eye-care in the US. We expect Sun’s specialty sales to sustain double-digit growth momentum given Ilumya’s upward trajectory and Deuruxolitinib launch likely next fiscal. Regulatory headwinds dented US generic s...
Buy Sun Pharmaceutical Industries Ltd Target Rs.1,440 - JM Financial Institutional Securities Ltd
Buy Sun Pharmaceutical Industries Ltd Target Rs.1,440 - JM Financial Institutional Securities Ltd
Source: JM Financial Institutional Securities Ltd
2024-01-05 12:26:29 pm