Sensex Today Live | Share Market updates: Indices flat; RIL, Airtel dip

Kalyani Rafael Advanced Systems Pvt Ltd has got an order worth ₹287.51 crore from the defence ministry for missile systems delivery.

The firm is a collaboration between Kalyani Strategic Systems Ltd (a full defence subsidiary of Bharat Forge Ltd) and Israel’s Rafael Advanced Systems Ltd.

Bharat Forge said the order is slated for completion in the upcoming 12 months. 

Stock markets around the world sustained the rally momentum on Tuesday, in anticipation of crucial US economic data that may influence the Federal Reserve’s stance on interest rates.

Hong Kong’s market surged over one percent, propelled by the tech sector’s robust performance. Other major Asian cities, including Tokyo, Sydney, Seoul, Singapore, Taipei, and Jakarta, also reported positive market trends.

Visual effects (VFX) studio Digikore Studios Limited (Digikore) plans to enter the primary market with an initial public offering (IPO) of 17,82,400 shares, comprising a fresh issue of 12,60,800 equities and an offer for sale (OFS) of 5,21,600 shares. Digikore has filed its draft red herring prospectus (DRHP) with NSE Emerge in preparation for the SME IPO segment.

Let’s look at the companies that spent the most in capex in FY23 and are also investing heavily for the years to come. (Read here)

The company’s arm SJVN Green Energy Limited (SGEL) has secured the Letter of Awards for three solar power projects, totaling 320 MW, from Assam Power Development Corporation Limited. The tentative cost of construction/development of the 320 MW projects is around ₹1900 crores.

We increase our FY25E EPS estimates by 21% as NCF implementation would make second hand books market redundant and result-in significant volume delta. Further, given the overhaul in curriculum, we expect new SKUs to get launched providing additional volume kicker. Substantial yield advantage is also expected, as repricing at higher level becomes easier post curriculum revamp.

We introduce FY26E projections, as we expect adoption of new curriculum to gather pace in a phased manner. We expect sales/EBITDA CAGR of 17%/26% over FY23-FY26E, as policy change is likely to result in secular growth for next 2-3 years. S Chand has a net cash BS and trades at attractive valuations of 9.5x/8.2x on our FY25E/FY26E EPS. We maintain ‘BUY’ with a revised TP of Rs338 (earlier Rs260), as we roll forward to Sep-25E (target P/E multiple intact at 12x).

NCF revision benefits to accrue over next 2-3 years: Last NCF revision happened in 2005 and back then new syllabus was rolled out over a period of 3 years. We believe new NCF adoption this time will also be staggered (like last time). Revised NCF for K-2 was already announced in October-22 and the final draft for school education was released on 23rd August 2023. With final draft being released, we expect phased NCF implementation over next 2-3 years’ period resulting in strong top-line growth for S Chand.

Second hand books to become redundant post NCF implementation: Post formal induction of NCF, entire curriculum will get re-designed and new books will be published rendering the second hand books market completely redundant. In addition, new SKUs will also get launched further aiding volume growth. Pricing benefit will also accrue amid flurry of new launches and absence of any previous benchmark. In light of these factors, we have increased our FY25E sales estimate by 10% and expect top-line CAGR of 17% over FY23-FY26E.

~86% of S Chand’s topline is subject to NCF delta: K-12 revenue (excluding higher education and digital business) formed ~86% of S Chand’s top-line in FY23. The K-2 segment forms ~15-20% of school education sales, while remaining 3 segments K3-K5, K6-K8 and K9-K12 constitute ~20-30% each.

Net debt free with OCF of Rs1bn+ over next 3 years: Subsequent to improvement in working capital cycle (reduced from 318 days in FY19 to 188 days in FY23) S Chand has turned net debt free (Rs546mn of net cash as of June 2023). We expect working capital cycle to improve from 188 days in FY23 to 170 days in FY26E, led by better inventory management. Improved working capital management is likely to result in operating cash flow of ~Rs1bn/Rs1bn/Rs1.3bn in FY24E/FY25E/FY26E respectively.

Hindustan Zinc Ltd. is setting its sights on a significant rise in production and faster implementation of carbon-neutral measures with Chairwoman Priya Agarwal Hebbar at the helm.

Priya, the daughter of billionaire Anil Agarwal, founder of the parent company Vedanta Resources Ltd., is poised to lead Hindustan Zinc during its growth phase. This expansion is aligned with India’s surge in infrastructure development and Prime Minister Narendra Modi’s environmental initiatives.

We believe RIL provides a good investment opportunity given 1) its transition towards new age technologies and 2) cash flow for growth serviced from traditional refining and petrochemical segment. The company is trading at 12.8x FY24 consolidated EV/EBITDA and 22.7x FY24 consolidated PE. We estimate consolidated EPS CAGR of 10.7% for FY23-FY25E and value Refining and petrochemical segment at 7.5x FY25 EV/EBITDA, Digital services at 15x FY25 EV/EBITDA and Retail at 37x FY25 EV/EBITDA. Maintain ‘Buy’ at SOTP based TP of Rs2898. Key risks are project execution and technology risk in new energy.

Jio Financial Services Ltd (JFSL) is set to launch a slew of insurance products, possibly in partnership with global companies, Reliance Industries Ltd (RIL) chairman and managing director Mukesh Ambani said on Monday. (Read more) 

Gold prices witnessed an upswing on Tuesday as the US dollar and Treasury yields pulled back from their recent peaks. This shift comes in anticipation of key U.S. economic data on inflation and employment slated for release this week, which may influence future interest rate decisions.

Spot gold had climbed 0.1% to reach $1,921.69 per ounce, marking its highest jump since August 10 as noted on Monday. US gold futures also ascended by 0.1%, settling at $1,949.30. Meanwhile, the US dollar’s strength waned when measured against other major currencies. Moreover, benchmark U.S. 10-year Treasury yields have receded from their highest point since 2007, recorded last week.

“Nifty, witnessing a decent pullback near the previous day’s low level, which is around the 19,230 zone, closed above the 19,300 zone for the day and has now consolidated in the range of the 19,200 to 19,400 zone for quite some time. As said earlier, a decisive move past the 19,400 levels would once again strengthen the trend and carry on the momentum to the upside. On the downside, support is at around 19,200 to 19,230, and a decisive breach below that would turn the bias weak.”

Oil prices remained stable, hovering around $80 a barrel as traders are on the lookout for indications about the future demand for crude, particularly from major consumers like the US and China.

West Texas Intermediate has been trading around the $80 mark, recording a 1.5% increase over the previous three days, its most extended upward streak since the end of July. 

Besides Zomato, Sun Pharma, ONGC, LTI Mindtree, Adani group companies, and SJVN, Reliance group shares will also be in focus after it made several key announcements on Monday on succession plan, and its telecom, financial services and insurance businesses

Following an uptick in US equities, most Asian stocks experienced a boost, as traders keenly anticipate a slew of economic data in the coming days that could hint at future global central bank policies.

Hong Kong, Japan, and Australia were in the green but shares in mainland China opened with a dip and quickly transitioned to gains. Meanwhile, US futures remained stable after the S&P 500 recorded its first consecutive increase this August.