Stock Market Essentials For January 13

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Stock Market Essentials For January 13

Photo : BCCL

Global Cues on January 13, 2023:

US Dec. Monthly Budget Statement

US University of Michigan consumer sentiment

UK GDP

UK Industrial Production

China Trade Balance

Global Earnings:

BlackRock

Citigroup

Wells Fargo

Bank of America

India Inc. Earnings:

Nifty: Wipro

Others: Choice International Ltd, Ganesh Housing Corporation Ltd, Just Dial Ltd, L&T Finance Holdings Ltd, Rajnish Wellness Ltd, Raghav Productivity Enhancers Ltd

Corporate Action:

Bharti Airtel: Listing of 83.5 lakh new shares pursuant to conversion of Foreign Currency Convertible Bonds (FCCBs)

Heritage Foods: Board meet to consider and approve the final letter of offer for the proposed rights issue of the company

Last day to buy TCS to be eligible for dividend

Last day to buy Aarti Surfactants to be eligible for right issue of equity shares

BLOCK DEAL ALERT

Shriram Finance

Apax Partners to sell Shriram Finance stake via its arm

Floor price of `1300/sh at a discount of 1% to CMP

Offer size is 5.30% to equity with green shoe

Total offer size at $316 mn with green shoe, base size at $150 mn

Deal size including green shoes likely at $275-300 mn

IIFL and others likely to be book runners of the deal

Other Events:

PM Modi to flag off ‘world’s longest river cruise’ on January 13: Agencies

PM Modi to inaugurate Kashi tent city virtually: Hindustan Times

Japan, US arranging summit meeting in Washington on January 13: Agencies

Oil & Gas Updates

Brent Crude at $84/bbl Vs $82.7/bbl

Singapore GRM at $9.1/bbl Vs $9.6/bbl

Asia Spot Gas prices at $26.8/mmBtu Vs $26.9/mmBtu

FII/DII Data:

FIIs net sold Rs 1662.63 cr worth shares on Jan 12 (prov)

DIIs net bought Rs 2127.65 cr worth shares on Jan 12

FII F&O Cash Data:

Index futures net sell Rs 556 cr

Index options net buy Rs 11889 cr

Stock futures net sell Rs 1416 cr

Stock options net sell Rs 75 cr

Total FII net buy Rs 9842 cr in F&O

F&O Ban:

GNFC & Indiabulls Hsg fin

Bulk/Block Deal

Paytm

ALIBABA sold 1.92 cr shares @ 536.95

GHISALLO MASTER bought 49.8 lakh shares @ 534.80

MORGAN STANLEY ASIA bought 54.95 lakh shares @ 534.80

RESULTS

INFOSYS

OVERALL-GOOD (REVENUE, PAT-BEAT; MARGINS-SLIGHT MISS)

Q3 FY23 Consol QoQ

$Revenue at 4659 mn vs 4555mn (Est $4600mn), up 2.2%

Re Revenue at 38318 cr vs 36538 cr (Est Rs 37965cr), Up 4.9%

CC Growth at 2.4% vs 4% (Est 1.2%)

EBIT Margin at 21.5% vs 21.5% (Est 21.9%)

PAT at Rs 6586cr vs 6021 cr (Est Rs 6550cr), Up 9.4%

EBIT at Rs 8242 cr vs Rs 7873cr (Est Rs 8314cr), Up 4.7%

FY23 Guidance

FY23 revenue guidance revised to 16.0%-16.5%. (Earlier 15-16%)

FY23 operating margin guidance retained at 21%-22%

Voluntary Attrition at 24.3% vs 27.1% QoQ

Large deal TCV for the quarter was the strongest in the last 8 quarters at $3.3 billion

Appointment of Mr Govind Iyer as Independent Director of the company w.e.f. January 12, 2023.

HCL TECH (GOOD SET- BEAT ON ALL FRONTS)

Cons rev 26700 cr vs 24686 cr; up 8.2% QoQ

EBIT 5228 cr vs 4427 cr; up 18.1% QoQ

EBIT Margin at 19.6% vs 17.9% up 165 bps QoQ

Constant Currency Revenue up 5.0% QoQ (vs 3.2% expected)

PAT at vs 4096 exp 3680 cr; up 17.4%

Declared Interim Dividend of 10 per equity share.

Record date for the purpose of Dividend is 20-Jan-2023.

Attrition at 21.7% vs 23.8%

TCV at $2.3 bn

FY Guidance narrowed (Might imply slower growth in Q4)

FY23 CC rev growth seen at 13.5% – 14.0% YoY vs 13.5-14.5% earlier

EBIT margin guidance narrowed to 18.0% – 18.5% vs 18-19% earlier

ANAND RATHI WEALTH

Q3FY23 vs Q3FY22:

Rev `138cr vs `106cr up 30% YoY

PAT `43cr vs `32cr, up 34% YoY

AUM `35,517cr vs `32,171cr up 20% YoY

Other Internals

Private Wealth (YoY basis)

Total Revenue increased by 33% to Rs 397 Cr

PAT grew by 37% to Rs 125 Cr

Net flows grew by 94% to Rs 3,715 Cr

AUM increased by 20% to Rs 37,500Cr

Share of Equity Mutual Funds in AUM increased to 48% (PY 45%)

Trail Revenue grew by 27%

No of Active client families increased by 19% to over 8,200

CYIENT (Results came during market hours but Guidance post 3:30)

Guidance:

Q4 organic revenue in constant currency will be higher than Q3

Q4 normalized EPS will be in the range of ₹15-16 vs earlier guidance of INR 14 – 15

Will add 14-15% in FY23 revenue due to acquisitions in constant currency

Expect FY23 normalized EBIT margins for the organic business to be in the range of 13-14%

FY24 EPS will be ‘at least’ ₹60 vs ‘around’ ₹60 earlier

GTPL Hathway

Cons Rev 685 Cr vs 599 cr YoY; up 14.3%

Cons EBITDA 112 cr vs 133 cr YoY; down 16%

Cons Margins 16.3% vs 22.3% YoY; down 600 bps

Cons PAT 39.8 cr vs 58.6 cr YoY; down 32%

Den Networks

Cons YoY

Rev 277 cr vs 294 cr; cown 6% YoY

EBITDA 37 cr vs 50 cr; down 26% YoY

Margins 14% vs 17%; down 300 bps YoY

PAT 49 cr vs 44 cr; up 12% YoY

CORPORATE ANNOUNCEMENT

PVR INOX

Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, has allowed the Proposed Scheme of amalgamation between PVR & INOX

Shyam Metaliks

12 lakh TPA capacity commissioned and ready for commerical production at Co’s Odisha Plant (Pellet Plant)

This expansion at Sambalpur was slated to be completed by September 2023, has come through Eight (8) months ahead of schedule.

This has resulted 40% additional capacity in the plant for producing Pellets.

In its growth plans, the company had envisaged a capex of Rs. 360 Crores

to increase the capacity of iron pellet production from 3.6 MTPA to 6 MTPA.

The CTO will boost the existing capacity at Sambalpur plant by 1.2 MT,

bringing the total capacity at Sambalpur to 3 MTPA and overall Pellet Capacity for the Company at 4.8 MTPA.

ITI Limited

ITI Limited bags Rs. 25 Crores worth Laptop Orders from Kerala Infrastructure and Technology for Education (KITE)

ASIAN PAINTS

FORMS UNIT ASIAN PAINTS POLYMERS

INCORPORATES Rs 100cr UNIT FOR VAE, VAM INDIA PLANT

Rail Vikas Nigam

Wins orders for Provision of Automatic Block Signaling in Chennai; project cost at 389.74m rupees

VGuard

Completed the acquisition of 100% shareholding of Sunflame Enterprises Private Limited today

for an aggregate consideration of 680.33 crores

Sunflame Enterprises Private Limited has become a Wholly Owned Subsidiary of the Company with effect from January 12, 2023.

Linde India

Linde Commences Construction of its New Air Separation Plant at Ludhiana, Punjab

This will be Linde’s second plant in northern region of India, the other one being at Selaqui, Uttarakhand

This 250 TPD new ASU is expected to start up towards the end of 2023

Rama Steel

“RAMA STEET TUBES LTD. SIGNED ‘MOU’ WITH GOVERNMENT OF UTTAR PRADESH

TO SET UP A STEET PROCESSING UNIT

INCLUDING MS PIPES, STP POLES, GI PIPES, CR COILS, GP COILS, COTOUR COATED COILS

PROPOSED INVESTMENT : Rs.600 Cr

PTC India (News Item Clarification)

PTC is not aware of any such developments of stake sale by the promotor companies.

Alert:

News item: Gautam Adani races for PTC India stake.

LTTS

L&T Technology Services agrees to acquire Smart World & Communication business of L&T

Acquisition is a continuation of LTTS’ 6 Big Bets strategy in 5G, Sustainability and Digital Products & AI

Consideration + Funding

Transaction consideration of Rs 800 Cr

LTTS to fund transaction using internal cash reserves

Closing is expected to be achieved within 3 months

Objective

Acquisition will enhance LTTS’ end-to-end offerings playbook across Next-Gen Communications, Sustainable Spaces & Cybersecurity

Jyoti Structures

Board Enabled resolution for raising funds upto Rs. 200 crores

through issue of Equity shares or any other equity linked instruments or securities,

including convertible preference shares / convertible debentures or by way of Rights Issue or by way of a Private Placement or by way of Preferential Issue

Websol Energy System Limited (392 cr MCAP)

Proposal to raise resources by way of fresh issue of Equity Shares /Convertible Debentures/Equity Share Warrants etc. or any combination thereof

to Promoters, Domestic Investors, Institutional Buyers, FIIs, NRIs & Corporate Bodies etc. on Preferential Allotment basis

IFGL Refractories Limited (991 cr MCAP)

Co has informed the Exchange that Securities Appellate Tribunal by passing an Order on 6th January, 2023

has quashed, on payment of cost of Rs 50,000/- , Adjudication Order dated 18th October, 2022

whereby penalty of Rs. 5 lakhs was levied on the Company. ”

FROM AGENCIES

SEBI Allows Bourses to Launch Multiple Contracts on a Commodity

India’s December Consumer Prices Rise 5.72% Y/y; Est. 5.9%

Industrial production rose 7.1% y/y (estimate +2.8%) in November; Estimates range +0.1% to +5.1%, 28 economists

Navi Mumbai Airport to Be Operational by Original Target 2024