May 21, 2024, 3:31 pm IST
Niva Bupa Plans To Launch Rs 3,000 Crore IPO
Niva Bupa General Insurance is gearing up for a stock exchange listing. In September 2023, True North divested a 20% stake in Niva Bupa Health Insurance to its overseas partner, Bupa, for Rs 2,700 crore. This deal placed a valuation of Rs 13,500 crore on Niva Bupa Health Insurance. Following the transaction, True North's ownership in Niva Bupa Health Insurance decreased to 28%, while Bupa Singapore Holdings' stake surged to 63%. Furthermore, selling shareholders in the IPO might raise between Rs 2,200-2,400 crore.
May 21, 2024, 3:15 pm IST
Balkrishna Industries Shares Hit All-Time High
Balkrishna Industries saw a jump of 15.7% revenue year-on-year, accompanied by a high 470 basis points expansion in EBITDA margin for the march quarter. They also flagged the stock's pricey valuations, standing at 32 times financial year 2025 consolidated Earnings Per Share estimates. However, they did not give any specific information as to offering guidance for the upcoming year due to prevailing geopolitical uncertainties, management hinted at an imminent price hike to counter rising raw material costs and elevated freight rates. While the timing and extent of the price increase are yet to be finalized, Kotak Institutional Equities maintained its "Sell" rating, citing potential shipment delays and a volatile near-term outlook driven by geopolitical tensions, with a price target of Rs.2,175. On a similar note, Citi upheld a "Sell" rating with a Rs.2,300 price target, anticipating further increases in average selling prices to mitigate cost pressures.
May 21, 2024, 2:51 pm IST
Hindustan Zinc Shares Rally 18%, Up 139% In 3-Months
Hindustan Zinc shares witnessed sharp rally of over 18% in trade today to 733.40 per share on Tuesday. Hindustan Zinc shares zoomed 85% in last 1-month only and 139% in last 3-months.
Earlier, as per BSE filing of the company dated May 7, 2024, “we wish to inform you that the Board of Directors of the Company through resolution passed by circulation on Tuesday, May 07, 2024, consented by majority of directors at 11:00 am, approved the Interim Dividend of Rs. 10/- per equity share i.e. 500% on face value of Rs. 2/- per equity share for the Financial Year 2024-25 amounting to Rs. 4,225.32 Crores.”
May 21, 2024, 2:47 pm IST
Biocon Biologics Gets US FDA Approval For Eye Treatment Drug
Biocon announced on Tuesday that its subsidiary, Biocon Biologics Ltd, obtained approval from the United States Food and Drug Administration (USFDA) for Yesafili, which is an interchangeable biosimilar of Aflibercept, destined for the American market. Yesafili, a VEGF inhibitor, serves in the treatment of various eye conditions and is a biosimilar to Eylea (aflibercept). Indicated for wet age-related macular degeneration, visual impairment from macular edema due to retinal vein occlusion, diabetic macular. Additionally, the company disclosed securing a launch date in Canada no later than July 1, 2025, pursuant to a settlement agreement.
May 21, 2024, 2:22 pm IST
Cheviot Corporation To Evaluate Third Share Buyback in Four Years on May 24th
Cheviot's shares witnessed a surge by 13.3%, reaching day's high of Rs 1,498.4. Despite the rally, the stock's performance for the year remains flat, with a 24% gain in 2023 and a 13.5% decline in 2022. Cheviot Co. Ltd. has announced that it is considering a buyback of equity shares at its upcoming board meeting which is scheduled for Friday, May 24, 2024, which was disclosed in an exchange filing. If this gets approved, this will mark the third buyback of equity shares by the company since 2020 and the fourth similar announcement since 2017. Following the buyback announcement, Previously, Cheviot conducted a share buyback of ₹43.1 crore between January 10 and January 21, 2022, utilizing the tender offer route for repurchasing shares. In 2020, the jute manufacturing company executed a buyback worth ₹18 crore, repurchasing up to 2 lakh shares via the tender offer route at Rs 900 per share. In terms of dividends, Cheviot declared a final dividend of Rs 27 per share in August 2023, following a dividend of ₹60 per share in August 2022. Additionally, in July 2021, it announced a special dividend of Rs 175 per share.
May 21, 2024, 2:19 pm IST
IRFC Shares Soar 5%: Railway PSU Stock Declares 0.70% Dividend, Stock Surges Following Q4 Earnings
On Tuesday, shares of the state-run Indian Railways Finance Corporation (IRFC) Ltd. surged by as much as 5% to touch Rs 182, nearing its all-time high of Rs 192 recorded earlier in January. This upward trajectory followed the announcement of the company's robust March quarter results and a final dividend declaration.
May 21, 2024, 1:32 pm IST
CG Power Share Drops 3% After Block Deal
Shares of CG Power and Industrial Solutions dropped by 3% on Tuesday following a significant block deal on the exchanges.
This deal involved the transfer of a 0.5% stake in the company. Market sources indicate that the block deal was likely executed at a floor price, offering a 2-3% discount to the stock's previous close.
Following the transaction, CG Power shares were trading at Rs 645.50 on the National Stock Exchange (NSE).
The block deal reportedly involved a foreign institutional investor (FII) as the seller, which contributed to the decline in share price. The nature of the seller and the discount applied to the block deal price likely added downward pressure on the stock.
May 21, 2024, 1:28 pm IST
RVNL Shares Hit 52-Week High On Order Win
Shares of Rail Vikas Nigam Ltd jumped more than 12% on May 21 after it bagged an order from South Eastern Railway. RVNL issued an exchange filing informing about the latest order win on Monday.
"Rail Vikas Nigam Limited has received letter of acceptance (LoA) from SER HQELECTRICAL/South Easter Railway for designing, supply, erection, testing and commissioning for upgradation of electric traction system from 1x25 KV to 2x25 KV traction system for Kharagpur section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target," said RVNL in the filing.
May 21, 2024, 12:40 pm IST
Gold Prices India, May 21: Yellow Metal Drops; Big Fall In Silver Prices; Buy?
Gold prices India today witnessed decline as the metal traded under pressure. Silver prices too declined sharply on May 21 in the country after witnessing sharp rally of Rs 10, 000 in last 6-days. Meanwhile, yellow metal prices scaled new peaks on May 20 amid renewed Middle East crisis. Also, the latest US inflation and retail sales data sparked bets that US Fed Reserve may go for two rate cuts in 2024.
22 carat gold prices today fell by Rs 600 to Rs 68,300/10 grams and 100 grams of 22K yellow metal prices fell by Rs 6000 to Rs 6,83,000 on Tuesday. 24K gold prices today fell by Rs 650 to Rs 74,510 and 100 grams of 24 carat precious metal prices declined by Rs 6500 to Rs 7,45,100.
18K gold prices got cheaper by Rs 490 to Rs 55,880 and 100 grams of 18 carat yellow metal prices today quoted at Rs 5,58,800 in the country.
Silver prices today recorded sharp decline. 1kg silver prices India got cheaper by Rs 1900 to Rs 94,600 and 100 grams of silver prices fell by Rs 190 to Rs 9,460.
May 21, 2024, 11:59 am IST
US FDA Issues Six Observations To Lupin's Somerset Facility
The US Food and Drug Administration (USFDA) has concluded a pre-approval inspection at Lupin's manufacturing facility in Somerset, New Jersey. Conducted between May 7 and May 17, 2024, the inspection resulted in the issuance of a Form-483 with six observations.
May 21, 2024, 10:46 am IST
Shriram Properties Inks Joint Development Deal For Prime 4-Acre Land In Bengaluru
Shriram Properties has entered into a Joint Development Agreement (JDA) for a prime 4-acre land parcel located in the sought-after Yelahanka micro market in Bengaluru. The upcoming project will feature 270 apartments, offering a total saleable area of approximately 3.8 lakh square feet. With an estimated revenue potential exceeding Rs 250 crores, the development is slated to be completed within the next three years. The company aims to launch the project in the first half of the current financial year (H1-FY25).
May 21, 2024, 9:55 am IST
JSW Steel Q4 Results Update By Ashutosh Somani of JM Financial Institutional Securities
JSW Steel reported 4Q consolidated EBITDA of INR61bn, in line with Jmfe. The EBITDA reduced by 15% QoQ, driven by lower sales realizations and higher coking coal cost. The Company registered Standalone Operating EBITDA at INR44bn for Q4FY24, lower by 23% QoQ and lower by 29% YoY. The EBITDA margin for the quarter was 12.6%. EBITDA was lower primarily due to higher coking coal prices and lower sales realizations. As a step towards backward integration for captive sourcing of coking coal, the Board approved acquisition of Minas de Revuboe Limitada (“MDR”). MDR owns a high quality and large scale pre-development stage premium hard coking coal mine project in the Moatize Basin of Tete Province in Mozambique. It is one of the largest pre-development stage premium hard coking coal projects globally and has JORC reserves in excess of 800 million tons. The company expects coking coal consumption cost to reduce by US-27 in 1QFY25, amidst rising steel prices – implying spread improvement. Consolidated capex for FY25 is expected to be INR200bn. The Company’s Net Gearing (Net Debt to Equity) stood at 0.93x at the end of the quarter, as against 1.02x at the end of Q3 FY24, and Net Debt to EBITDA stood at 2.62x, as against 2.64x at the end of Q3 FY24. Strong growth pipeline and increased focus on cost efficiency augurs well for the earnings trajectory. Maintain BUY.
May 21, 2024, 9:38 am IST
Zee Entertainment Q4 Results Update By Abhishek Kumar - Equity Research Analyst - JM Financial Ltd
ZEEL reported better than expected operational performance in 4Q. Core business did well with both Ad (+10% YoY) and subscription revenues (+12% YoY) surprising positively. Outlook was incrementally positive too. Pick-up in FMCG’s ad spend, improving rural sentiments, expectations of a normal monsoon and ZEEL’s own interventions underline management’s cautious optimism. Focus on cost optimisation has intensified. Management reiterated its 18-20% EBITDA margin target by FY26. With peak Zee5 losses behind and a frugal approach now towards content spend (across TV, digital and movies), margin target looks achievable. We however model a more conservative outlook – FY25/26E revenue growth below FY24’s and EBITDA margin of 17.5% by FY26, driving 10-20% cuts to FY25-26E EPS. Still, at 15x target PER (unchanged), our revised TP of INR 170 (INR 200 earlier) implies 25% upside. The question, however, is whether 15x is a fair multiple. We triangulate through two methods. First, reverse DCF (Exhibit 2) implies zero terminal growth to achieve our TP. Interestingly, CMP implies near zero terminal value itself – implying trough valuation. Second, SOTP method – with 1x TTM Price/Sales to Zee5 – implies 8x FY26E PER for core business, similar to Sun TV’s core multiple. We therefore find 15x PER reasonable. We upgrade ZEEL to BUY. A tangible progress towards multiple expansion will be a key trigger.
May 21, 2024, 9:11 am IST
Rupee Vs USD
The Rupee opened at 83.31 against the US dollar on Tuesday, having closed at 83.34 on Friday.
May 21, 2024, 8:49 am IST
Market Outlook Today By Aditya Gaggar, Director of Progressive Shares
Indian equities extended their gains within the Ascending Triangle Formation indicating a continuation of its uptrend to reach a previous peak of 22,790. BankNifty also oscillates in the rising channel with a higher top higher bottom pattern. We feel that its northward journey will continue to 48,740-49,000 zone while on the lower side, 47,800 will be considered as an immediate support. We have been bullish on the Auto (Amara Raja Energy & Mobility-Flag and Pole Breakout) and Metal sectors for the past couple of weeks and continue to hold our positive stance. From the Realty segment, one should keep an eye on Oberoi Realty and Sunteck Realty. The PSE segment was the star performer of the previous week and we have identified a few of them that will continue their uptrend (GRSE, Mazgaon Dock, IRFC). Some of MNC stocks sprang sharply and stood in an extremely overbought condition, indicating to book some part profits (ABB, Carborundum Universal, Cummins India, Schaeffler India, Siemens, SKF India, and Timken).
May 21, 2024, 8:32 am IST
IIFL Home Finance Shares In Focus
After surpassing Rs 35,000 crores in AUM and seeing a 32% YoY rise in PAT, IIFL Home Finance became India’s leading affordable housing finance company. IIFL Home Finance Limited (IIFL HFL) is now India's largest affordable home financing firm, with an average ticket size of Rs 14.26 lac. The company's Asset Under Management (AUM) jumped by 25% YoY, from Rs 28,512 cr in FY23 to Rs 35,499 cr in FY24.
May 21, 2024, 8:12 am IST
Market Outlook By Om Mehra, Technical Analyst, SAMCO Securities
In a special trading session held on Saturday, the Nifty ended at 22,502, marking a modest gain of 0.16%. In the shorter trading hours, the index oscillated within a narrow range, continuing the week's bullish momentum.
On the daily chart, the Nifty formed a small doji, indicating indecision among traders. Importantly, the index remained above the 20-Day EMA, suggesting ongoing strength in the market. Immediate support is seen at 22,380, while resistance is positioned at 22,650.
The Bank Nifty concluded the session at 48,199.50, rising by 0.17%. Notably, the index has held above the crucial 48,000 mark for the past two trading sessions, signalling positive momentum.
Additionally, the MACD indicator on the daily timeframe is turning upwards, indicating overall strength.
The immediate support is observed at 47,800, while resistance is positioned at 48,500 followed by 48,600.
May 21, 2024, 8:11 am IST
Market Outlook Today By Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities
Nifty traded sideways in the special trading session on Saturday and closed 36 points higher at 22,502.
The Long Short ratio improved to 28% on 17th May from 26% on 16th May as the foreign portfolio investors (FPIs) built more long positions compared to short positions in Index futures.
The 22,200 & 22,300 Strike saw call writers (Bears) exiting and put writing, which kept the Index steady throughout the day. Strong put writing was observed at the 22,400 Strike in Nifty. The call writers (Bears) still lead the put writers (Bulls) by a fair margin at the 22,500 Strike.
For Nifty to make a sharp upside move, call writers (Bears) need to exit from the 22,500 Strike.
Bank Nifty was range bound on the special trading day on Saturday and closed at 48,200, up 84 points.
The put writers (Bulls) dethroned the call writers (Bears) from the 48,000 Strike in Bank Nifty.
Strong put writing was also observed at the 47,800 Strike in the Index. The call writers (Bears) still have sizeable positions at the 48,000 Strike and the option activity at this strike will provide cues about Bank Nifty’s future direction.
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