MARKET WRAP: Sensex ends 64 pts lower at 35,593, DHFL dips 6%; BoI jumps 8%

The S&P BSE Sensex lost 64 points or 0.18 per cent to close at 35,593 while NSE's Nifty50 index ended above 10,650 level at 10,652, down 9 points or 0.088 per cent.

3:46 PM

Index watch

3:45 PM

Markets at close

3:40 PM

Closing Bell

The S&P BSE Sensex lost 64 points, or 0.18 per cent, to close at 35,593 while NSE's Nifty50 index ended at 10,652, down 9 points

3:05 PM

ICICIdirect on Escorts

Escorts has a near debt free balance sheet with marginal short-term debt amounting to ~Rs 150 crore as of FY19E with consequent debt: equity at 0.05x. It has also successfully got transformed into a capital efficient player with resultant RoCE in excess of 20% in FY18-20E. Going forward, however, given the higher base we expect growth to taper in FY20E. Consequent net sales & PAT growth in FY20E are expected at ~8.5%. We build in ~40 bps improvement in EBITDA margins. We value Escorts at Rs 700 i.e. 16.0x P/E on FY20E EPS of Rs 44.1 with a HOLD rating on the stock.

2:48 PM

YES Bank extends fall; stock down 11% in two days

The stock has erased its almost entire 12 per cent gain recorded in two days after the private sector lender on Thursday, January 24, 2019 said that it has received the Reserve Bank of India (RBI) approval to select Ravneet Singh Gill as its new managing director and chief executive officer (MD & CEO). He is set to join on or before March 1, 2019. READ MORE

2:33 PM

Bajaj Fin stock falls over 1% post Q3 results announcement

2:31 PM

Bajaj Finance Q3 results

• Consolidated net profit jumps 53.5 per cent YoY to Rs 1,059.56 crore. 
• Revenue from operations came in at Rs 4,974.70 crore, up 47.5 per cent YoY.
• Basic earnings per share (EPS) at Rs 18.38 against Rs 12 3QFY18. 

2:24 PM

ICICIdirect on Pfizer

Buying Range: Rs 2,850-2,885

 

Target: Rs 3,280.00

 

Stop loss: Rs 2,610.00

 

Upside: 14%

 

Time Frame: 6 months

2:12 PM

Mid, small-cap indices tank 7% in January; analysts see more pain ahead

The underperformance comes amid liquidity concerns in the non-banking finance companies (NBFC) space and Essel Group default news. Despite the sharp fall, analysts say there more pain in store for these two segments over the next few months and suggest investors remain selective while investing. READ MORE

2:06 PM

HDFC PAT comes in at Rs 2113.80 cr against Rs 5,300 cr in the year-ago period; stock down 1%

1:57 PM

Housing Finance companies under pressure

1:46 PM

NEWS ALERT

SBI said to own 15% of Jet Airways post debt switch, CNBC-TV18 reports citing sources. 

1:30 PM

As many as 237 securities hit 52-week low so far in trade

Symbol	Security	New 52W/L	Prev. Low	Prev. Low Date	LTP	Prev. Close	Chng	% Chng
ABAN	Aban Offshore Limited	64.60	65.25	28-Jan-2019	65.20	66.80	-1.60	-2.40
ABCAPITAL	Aditya Birla Capital Limited	81.60	82.80	28-Jan-2019	83.00	83.85	-0.85	-1.01
ABGSHIP	ABG Shipyard Limited	1.75	1.80	28-Jan-2019	1.80	1.80	0.00	0.00
ADHUNIK	Adhunik Metaliks Limited	2.05	2.05	28-Dec-2018	2.05	2.15	-0.10	-4.65
AIFL	Ashapura Intimates Fashion Limited	17.40	18.30	28-Jan-2019	17.40	18.30	-0.90	-4.92

Source: NSE


Click here for the full list

1:25 PM

IIFL on Godrej Properties

GPL reported a strong rebound in new bookings, driven by new launches and steady sustenance sales. The actual deal additions for 9MFY19 are significantly lower YoY and missed expectations; however, during the concall, management stressed that current outlook is the best ever in the history of the company, with a number of deals on the threshold of being announced. Operating cash flow contracted during the quarter, resulting in net debt rising Rs2.6bn QoQ. GPL stock has been up >50% in the last 4 months, since the tightening of liquidity, and premium valuations build-in a strong outlook on business development.

1:21 PM

Geojit on PVR

·         Reduction in GST rates on movie tickets expected to drive consumption and improve margins.

 

·         Q3FY19 revenue grew at a rate of ~51% on a YoY basis owing to higher box office collections while PAT witnessed 79% YoY growth.

 

·         Average Ticket Prices (ATP) witnessed a muted growth of 3.8% YoY while Food & Beverages spend per head de-grew by ~2% YoY.

 

·         Other income rose by 344% in Q3FY19 while ad revenue saw a healthy growth rate of 16% YoY.

 

·         We revise upward our FY19E & FY20E PAT estimates by 14% & 15% respectively, to factor synergy benefits from SPI acquisition and margin improvement from GST rate cut.

 

·         We value PVR at 30x FY21E EPS and upgrade our rating to Accumulate from Hold with a revised TP of Rs1,742.

1:11 PM

Anand Rathi Research on Persistent Systems

Persistent’s Q3 revenuewas $120.8m (up 2.2% q/q, down 1.4% y/y). Its services business (75% of revenue) was up 3.1% q/q, 1.1% y/y, showingrecovery in the q/q growth rate. Its Digital business turned around with 6.4%Q3growth q/q (Q1 down 6%, Q2 down 1.7% q/q); Acceleritemoved up 8% q/q. IP revenues were the only drag, flat q/q in a seasonally strong quarter, sliding 8% y/y. 

EBITDA margin touched a new high (19.7%, up 234bps y/y, reaching back to pre-IoT levels. We retain our FY20e/FY21e EBITDA estimates but cut PAT due to forex losses/higher taxes. We retaina Buy with a revised target of Rs 760 (14x FY21e PE vs. 15xearlier)

1:07 PM

Market Check

12:47 PM

FACT tumbles post Q3 results announcement

12:39 PM

Nomura on Ceat

12:37 PM

BUDGET EXPECTATIONS

Why BofA-ML expert sees Budget 2019 surprising market on fiscal front

The concerns about the health of India's finances have coincided with a rebound in prices of oil -- India's top import -- and below-average revenue from goods and services tax and asset sales READ MORE HERE

12:25 PM

Elara Capital on Chennai Petroleum

We reiterate Accumulate on MRL with a revised TP of Rs 287 from Rs 312. We reduces our TP due to lower FY21E EBITDA at Rs 146/share (from Rs 158/share) as we lower FY21 earnings estimate. Our TP is based on 5.5x FY21E EBITDA.

12:22 PM

Top sectoral gainers and losers on NSE

12:14 PM

The IL&FS soap opera has now created more drama; this time for Zee

Subhash Chandra, the founder who controls 41 per cent of Zee Entertainment Enterprises Ltd., is putting half his shares on the block after making wrong-way leveraged bets in unrelated industries such as infrastructure, a mistake the tycoon acknowledged in an open letter on Friday evening. Although the stake-sale plan has been known for a while, the official explanation so far was that Zee wanted a partner to become a “global media-tech player.” READ MORE

12:01 PM

NEWS ALERT

Equitas Board to consider scheme of arrangement between Equitas Holdings & Equitas Small Fin Bank for listing the latter, on February 1, as per CNBC TV18 report. 

11:51 AM

Elara Capital on Persistent Systems

We lower our revenue estimates slightly and increase our EBITDA margin estimate by 34bp, 113bp and 99bp over FY19, FY20 and FY21 respectively to arrive at a new TP of INR 710 from INR 690 on 12x (unchanged) FY20 P/E. We revise our rating to Buy from Accumulate, given a 10.6% drop in the share price since 2 January 2019. Key risks remain any significant decline in IBM IP revenue or loss of any of the top clients. Management commentary indicates a broader customer base is forming in the enterprise segment, and we believe this is the key to accelerating growth.

11:43 AM

CHALET HOTELS IPO UPDATE: Issue subscribed 4% so far on Day 1

11:31 AM

Buzzing Stock

 

11:25 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,562.61	-94.09	-0.26
S&P BSE SENSEX 50	11,127.02	-24.20	-0.22
S&P BSE SENSEX Next 50	31,100.58	+28.71	+0.09
S&P BSE 100	10,867.14	-18.97	-0.17
S&P BSE Bharat 22 Index	3,333.60	+1.64	+0.05

11:06 AM

Nomura on Zee Entertainment

Zee promoters address near-term concerns

We believe this will allay the near-term concerns and curtail any further correction in the stock price. However, any stock price recovery is contingent upon how soon the promoter asset sale concludes with cash being received by the lenders and the deal valuation for the promoter stake sale in Zee. The stock trades at ~16.5x FY20F EPS of INR19, much lower than its past 10-year average trading multiple of 25x.

11:05 AM

Nomura on Shriram Transport Finance

We continue to like retail asset financiers over HFCs and wholesale NBFCs given the current liquidity environment. We think current valuations at 1.2x FY21F book for a 16-17% ROEs is undemanding and already reflects lower growth expectations.

We think funding availability will not be challenging for names like SHTF and q/q increase in bond funding reaffirms our belief. In addition to that, improving asset quality cycle will net off any margin pressures, supporting our ROE expectations of 16-17% for FY19-21F. Our target price of Rs 1,425/share implies 1.6x FY21F book.