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PL Stock Report: Dr. Reddy’s Laboratories (DRRD IN) – Q2FY24 Result Update – In line EBITDA aided by gRevlimid and PLI incentives – REDUCE
Sensex Today: Param Desai – Research Analyst, Prabhudas Lilladher Pvt Ltd. views on Dr. Reddy’s Laboratories (DRRD IN): Rating: REDUCE | CMP: Rs5,397 | TP: Rs5,300
Q2FY24 Result Update – In line EBITDA aided by gRevlimid and PLI incentives
Quick Pointers:
§ Margins came in at 26.6%; down 270 bps QoQ adjusted for PLI incentives.
§ India formulation grew in high single digit, adj for divestment and NLEM.
We increase our FY24/25E EPS estimates by 13.5%/7.6% aided by higher gRevlimid sales, however base business profitability continues to remain moderate. Dr. Reddy’s (DRRD) Q2FY24 EBITDA was largely in-line with our estimate, while base business margins ex of Revlimid and PLI incentives continued to remain muted below ~19-20%. Further thin US pipeline in near term remains a key risk. At CMP, DRRD is trading at expensive valuations of 24x P/E on FY25E adjusted for gRevlimid. We maintain our ‘Reduce’ rating with revised TP of Rs5,300/share (Rs5,150 earlier) as we roll forward; valuing at 23x Sept 2025E EPS for base business. Any big ticket ANDA approvals and sharp recovery in base business margins are key risks to our call.
Sensex Today Live: RIL stock surges almost 2% after a strong quarterly earning report
Sensex Today: HSBC Q3 pre-tax profit more than doubles but misses estimates
HSBC Holdings reported a 240 percent increase in third-quarter pre-tax profit on Monday as higher interest rates boosted profitability, although it missed market estimates.
Europe’s largest bank with a market value of $118.6 billion posted a pre-tax profit of $7.7 billion for the July to September quarter, versus $3.2 billion a year earlier, trailing the $8.1 billion mean average estimate of brokers compiled by HSBC. (Read More)
Sensex Today Live: PSU Bank trades in the red as it sheds almost a per cent with all stocks coming under pressure on Monday
Sensex Today Live | Share Market Updates: Maruti Suzuki shares flat after robust Q2 results
Maruti Suzuki’s share price displayed a neutral opening during Monday’s trading session, reflecting the company’s strong Q2 performance. Maruti Suzuki India disclosed a standalone net profit of ₹3,716.5 crore for the quarter ending September 2023, denoting an impressive 80.28% surge in comparison to ₹2,061.5 crore during the same quarter the previous year.
The opening price of Maruti Suzuki shares today stood at an intraday high of ₹10,741.30 on the BSE, with the stock touching an intraday low of ₹10,491.80. Technical analysts suggest a positive overall trend for the stock, with the 50-day exponential moving average (DEMA) serving as a support during declines, currently positioned around ₹10,300. (Read More)
Sensex Today: China Evergrande’s court hearing deferred to Dec 4; judge gives last chance for resolution plan
Hong Kong High Court judge Linda Chan has deferred today’s hearing of China Evergrande Group to December 4, Reuters reported. Justice Chan warned this is the “final” such opportunity for the troubled real estate company.
Evergande was scheduled for a hearing today on October 30 in regards to a possible winding-up of business. The adjournment now allows the developer to present its restructuring plan to avoid potential liquidation, it added. (Read More)
Sensex Today Live: SBI Card share price drops over 7% as brokerages cut target price after Q2 results
SBI Cards and Payments Services witnessed a sharp decline of over 7% in its share price during early trading on Monday, following the release of its financial results for the second quarter of FY24. SBI Cards shares dropped by 7.45% to ₹732.05 each on the BSE.
The company reported a 15% rise in net profit for Q2FY24, amounting to ₹603 crore compared to ₹526 crore in the corresponding quarter last year. Additionally, its revenues experienced a 22% surge, reaching ₹4,221 crore from ₹3,453 crore, year-on-year.
According to brokerage firm Motilal Oswal Financial Services, SBI Cards and Payments Services reported a muted quarter characterized by elevated provisions and further compression in margins. (Read More)
Sensex Today: Geojit Financial Services views on today’s market: Watch out for the Fed’s message on November 1st even while it holds the rate as the market expects
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The oversold position in the market facilitated the 190-point bounce back in the Nifty on Friday. But the conditions are not favourable for the continuation of this uptrend since the risk-off mood persists in the market. The risk of the Middle East geopolitical crisis spreading is high and since the ground war has begun in Gaza there can be lots of uncertainty and unexpected developments. The other major factor impacting the markets -the elevated US bond yields- also will remain a short-term concern since the Fed is likely to continue its hawkish stance in the light of the resilience of the US economy and inflation (3.7%) remaining above the Fed’s target. So watch out for the Fed’s message on November 1st even while it holds the rate as the market expects. Investors may remain cautious in this time of high uncertainty and risk. Nibbling at high-quality large caps will be a smart move.
Sensex Today Live: ESAF Small Finance Bank IPO worth ₹463 crore to open on November 3
ESAF Small Finance Bank, a Kerala-based lender, is scheduled to kick off its initial public offering (IPO) on November 3, with the IPO slated to conclude on November 7. The company aims to raise ₹463 crore through this offering, although the IPO price band has yet to be disclosed. The public issue is a combination of both a fresh issuance of equity shares, valued at ₹390.7 crore, and an offer-for-sale (OFS) of equity shares, amounting to ₹72.3 crore, by three shareholders. (Read More)
Sensex Today Live | Share Market Updates: Tata Motors comes under pressure in early trading as it sheds more than 1.5%
Sensex Today: Dividend stocks: Happiest Minds, Ramkrishna Forgings to trade ex-dividend today
Shares of Happiest Minds Technologies Ltd and Ramkrishna Forgings are likely to draw attention today as both stocks are trading ex-dividend. The board of directors of Happiest Minds Technologies Ltd has announced an interim dividend of ₹2.50 per share for FY24. Similarly, Ramkrishna Forgings Ltd’s board has declared an interim dividend of Re 1 per share for FY 2023-24.
Both companies have set October 30, 2023, as the record date to determine the eligible shareholders for the payment of the interim dividend for the financial year 2023-24. Happiest Minds Technologies and Ramkrishna Forgings have already notified Indian exchanges about the interim dividend and the dividend record date. (Read More)
Sensex Today Live: Sensex and Nifty remain around the previous close at the start as RIL and Tech Mahindra jump, while Bajaj Finserv sheds
Sensex Today Live | Share Market Updates: Cello World IPO opens today: GMP, review, other details
Today marks the commencement of the initial public offering (IPO) of Cello World, which will continue to accept bids from investors until November 1, 2023. The book build issue is priced in the range of ₹617 to ₹648 per equity share. The IPO, entirely an offer for sale (OFS), is intended for listing on both the NSE and BSE. The promoters aspire to raise ₹1,900 crore through this public offering. Meanwhile, Cello World shares have initiated trading in the unlisted stock market, with market observers noting a premium of ₹90 in the grey market today. (Read More)
Sensex Today Live: Sensex starts in the green at the preopen session; RIL, Maruti Suzuki, and AU SFB to be in focus in today’s session
Sensex Today: Govt wants India’s telecom service to remain most affordable in entire world: Telecom Minister
The government wants India’s telecom service to remain the most affordable in the entire world, union telecom minister Ashwini Vaishnaw said.
According to the telecom sector industry body Cellular Operators Association of India, telecom operators have not been able to monetise 5G service since its launch last year.
“From the government side we are very clear. We would like telecom service to continue to remain the most affordable in the entire world and today among all large economies India’s telecom sector is the most affordable telecom sector,” Vaishnaw told PTI in an interview at India Mobile Congress 2023.
According to analysts, telecom operators need an average revenue per user (ARPU) in the range of ₹270-300 over next three years to realise the investments they are making in building 5G networks. (PTI)
Sensex Today Live: Q2 Results today: Marico, TVS Motor, UPL, others to announce earnings
Today, a handful of major companies will be releasing their Q2 results, including Marico Ltd, TVS Motor Company, UPL Ltd, Blue Star Ltd, and Strides Pharma Science Ltd. Approximately 95 companies will release their September quarter results today. (Read More)
Sensex Today Live | Share Market Updates: Adani group stocks: FPIs cut stake in 8 out of 10 Adani companies in Q2
During the July-September quarter, Foreign Portfolio Investors (FPIs) notably reduced their holdings in the majority of Adani Group companies. According to the quarterly shareholding data of all ten Adani Group stocks on the stock exchanges, FPIs trimmed their stake in 8 companies over the past quarter.
Adani Enterprises, the leading company of the Gautam Adani-led conglomerate, experienced the most substantial sequential decrease, with FPI shareholding dropping to 18.19% at the end of September 2023 from 23.01% at the end of June 2023. (Read More)
Sensex Today: Stocks to Watch: RIL, Maruti Suzuki, Ultratech, AU SFB, Cipla, IDFC First Bank, IDFC, Bharti Airtel, Adani Enterprises, and Union Bank of India
- Reliance Industries: Reported a 27% surge in consolidated net profit to ₹17,394 crore in Q2 FY 2023-24, with shares rising by 1.75%.
- Maruti Suzuki: Delivered over 310,000 units, a 19% increase, amid improved chip availability and festive demand.
- UltraTech Cement: Approved a ₹13,000 crore investment for a capacity expansion of 21.9 MTPA through multiple projects.
- AU Small Finance Bank: Announced a merger with Fincare Small Finance Bank, pending regulatory approvals.
- Cipla: Recorded a 43.4% rise in consolidated net profit to ₹1,130.91 crore and a 14.6% increase in revenue.
- IDFC First Bank: Noted a 35% rise in net profit to ₹751.3 crore and a 31.6% growth in net interest income (NII) to ₹3,950.2 crore.
- NTPC: Posted a 16.6% increase in consolidated net profit to ₹3,885 crore and reported consolidated revenue from operations of ₹40,875 crore.
- Bharti Airtel: Collaborated with Microsoft to provide Indian businesses calling services via Airtel IQ integrated with Microsoft Teams.
- Adani Enterprises: Introduced ‘general aviation charges’ for private jet operators at six airports despite warnings from the airport tariff regulator.
- Union Bank of India: Noted a 90% surge in net standalone profit to ₹3,511 crore in Q2 FY 2023-24, with net NPA decreasing to 1.30%. (Read More)
Sensex Today Live: Tata Technologies IPO: Why you should expect upcoming IPO’s launch next month
After an interval of nearly two decades, the Tata group is gearing up to introduce its initial public offering (IPO) in the primary market. Tata Technologies Ltd, one of the Tata group’s subsidiaries, has submitted an addendum for its public issue subsequent to receiving approval from SEBI for the launch of its initial offer. The market is eagerly anticipating the release of the upcoming IPO.
As per market analysts, the wait for the impending IPO is expected to conclude in November 2023, which is next month. They have indicated that Tata Motors, a listed entity and one of the promoters offloading its stake in Tata Technologies Ltd, is likely to announce its Q2FY24 results. Consequently, the launch of the Tata Technologies IPO could possibly occur within a fortnight of the Tata Motors earnings announcement. (Read More)
Sensex Today Live | Share Market Updates: Oil, Bonds Fall as Investors Temper Mideast Hedges
Oil slipped with gold and government bonds as demand for haven assets eased after Israel’s military action in Gaza proceeded more cautiously than had been anticipated.
Brent crude dropped below $90 a barrel, after rising by almost 3% on Friday, while WTI fell toward $84. S&P 500 futures contracts rose 0.3% after the gauge fell 0.5% on Friday, with risk appetite dented over worries including a persistently hawkish Federal Reserve and underwhelming corporate earnings.
The dollar was little changed against major peers, while the 10-year Treasury yield rose about three basis points. Gold slipped but remained above $2,000 an ounce, while US and Australian bond yields edged higher. (Bloomberg)
Sensex Today Live: UAW and Ford finalize $8.1 billion contract agreement
On Sunday, October 29, United Auto Workers (UAW) union leaders greenlit a fresh tentative contract agreement with Ford Motor, entailing a significant $8.1 billion infusion into company manufacturing. Conversely, negotiations persist at General Motors (GM) without a finalized agreement.
Per the UAW-Ford contract terms, employees might secure up to $70,000 in supplementary compensation over the contract’s 4-1/2-year span, not including augmented profit-sharing benefits and retirement contributions. (Read More)
Sensex Today: Buy or sell: Vaishali Parekh recommends three stocks to buy today
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends these stocks for day trading:
1] HCL Technologies: Buy at ₹1270, target ₹1330, stop loss ₹1230;
2] GNFC: Buy at ₹663.50, target ₹680, stop loss ₹650; and
3] Zen Tech: Buy at ₹742, target ₹800, stop loss ₹710. (Read More)
Sensex Today Live: UltraTech Cement to spend another ₹13,000 crore to increase capacity
UltraTech Cement Limited has approved a fresh investment of ₹13,000 crore to increase its capacity by another 21.9 million tonnes per annum (MTPA) with a mix of brownfield and greenfield projects, the company wrote in an exchange filing on Saturday.
This new investment, which has been approved by the board, will help the firm achieve a capacity of 182 MTPA in India by setting up four greenfield and four brownfield plants, apart from four greenfield bulk terminals, UltraTech added. (Read More)
Sensex Today Live | Share Market Updates: Maruti’s festive-time growth at 19%; expects sales of 450K
Maruti Suzuki India Ltd, the country’s largest carmaker, is seeing a surge in deliveries as it fulfils long-standing orders for new models amid easing chip availability and high consumer interest during the ongoing festive season.
The carmaker delivered over 310,000 units, a growth of 19% year-on-year in the 70-day period between 17 August, the start of the Chingam month, which kicks off Onam festivities in Kerala, and the end of the Navratri period on 24 October, a top company executive said. (Read More)
Sensex Today: AU Small Finance Bank to merge with Fincare Small Finance Bank
AU Small Finance Bank Ltd on Sunday said it will take into its fold peer lender Fincare Small Finance Bank in the first such merger between two such institutions.
Under the amalgamation plan, shareholders of Fincare Small Finance Bank will get 579 equity shares of AU Small Finance Bank Ltd for every 2,000 fully paid-up equity shares they own.
Set up to push financial inclusion by providing an outlet for savings and by providing access to credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, these banks were set up under an RBI policy from 2014. (Read More)
Sensex Today Live: Reliance shares in focus as experts give ‘buy’ tag after Q2 results 2023
Following the disclosure of its Q2FY24 results last Friday, the Indian stock market is anticipated to respond to the quarterly figures during Monday’s trading session. Stock market analysts suggest that Reliance Industries’ Q2 results for the financial year 2023-24 have aligned with expectations, signaling a potential increase in the share price of Reliance on Monday. (Read More)
Sensex Today Live | Share Market Updates: Wall Street falls, bringing the S&P 500 index 10% below its July peak
tocks stumbled on Wall Street, bringing the S&P 500 10% below the peak it reached in July and putting the benchmark index into what’s called a “correction.”
The S&P 500 fell 0.5%, or 19.86 points, to close at 4,117.37 Friday and is now 10.3% below its July 31 high of 4,588.96. That marks its 10th loss in the last 12 days.
Stocks have fallen the past three months as investors face the reality of higher interest rates, with Federal Reserve officials talking about keeping rates “higher for longer” and the yield on the 10-year Treasury reaching levels not seen since 2007. Analysts say investors are also concerned near-term about an escalation of tensions in the Middle East and the strength of company earnings.
The Dow Jones Industrial Average fell 366.71 points, or 1.1%, to 32,417.59. The Russell 2000 index of smaller-company stocks slipped 20.07 points, or 1.2% to 1,636.94, its lowest level in about four years.
The Nasdaq was the bright spot in the market, gaining ground on the strength of several big technology and communications companies that reported solid earnings. The index rose 47.41 points, or 0.4%, to 12,643.01. (AP)
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