Should you buy, sell or hold Titan Company? Here’s what brokerages say
The share price of Titan Company declined over 2 percent after the company reported its earnings for the fourth quarter of fiscal 2021 with operating performance missing estimates. Titan’s Q4FY21 standalone net profit rose 48.2 percent driven by jewellery business to Rs 529 crore from Rs 357 crore, while revenue from operations grew by 61.1 percent to Rs 7,135 from Rs 4,429 crore, YoY. EBITDA rose 31.6 percent YoY to Rs 795 crore, while EBITDA margin contracted by 250 bps to 11.1 percent, YoY.
A negative sales mix led to margin contraction, which saw its Ebitda margin contract 250 bps YoY to 11 percent, said CLSA. “Amid near-term uncertainty, our estimates and target price of Rs 1,370 remain unchanged. We also maintain our Sell rating on an expensive valuation, based on 50x Mar 2023 earnings,” CLSA said. Read here.
Maruti Suzuki | The company said that all variants of Super Carry have been upgraded to new version of RPAS system. The revised Ex-showroom price applicable in Delhi shall vary from Rs 4,48,000 to Rs 5,46,000.
Market Watch: Manas Jaiswal of manasjaiswal.com
– Buy ONGC with a stop loss below Rs 106 and target of Rs 118.
– Buy Federal Bank with a stop loss below Rs 78 and target of Rs 84.
HUL Q4 takeaways: Second wave impact won’t be as adverse as last year, says management
Even as India is amidst the second wave of the COVID-19 pandemic that brings further uncertainty, Hindustan Unilever Ltd (HUL) is confident about its growth prospects for the coming quarter. The management believes that even though the second wave is a cause of concern and brings about great uncertainty, the impact this year will not be as adverse as last year. Addressing the media on its Q4 earnings, HUL’s chief financial officer (CFO) Srinivas Phatak said, “While it is difficult to predict consumer demand with certainty, on the back of capabilities, we have built over the last year, we are confident about dealing with challenges in the short term and maintain competitive growth.” Read more.
Yes Securities on Hindustan Unilever
Despite inflation in prices of palm oil, tea, crude oil and increased competition, margins improved due to a 2% sequential pricing increase, increased cost savings and GSK nutrition business synergies. We model in revenue/EBITDA/PAT CAGR of 11%/13%/14% over FY21-23E and assume coverage with a REDUCE rating with a target price of Rs 2,503 based on 55x FY23E earnings, a 10% premium to its 5-yr average multiple.
‘We are in the midst of a bull market. Do not think there is much risk to this bull market,’ Desai adds. pic.twitter.com/OgtOpfKFWt
— CNBC-TV18 (@CNBCTV18Live) April 30, 2021
Rupee Opens | The Indian rupee opened 18 paise lower at 74.22 per dollar as against the previous close of 74.04, amid selling in the domestic equity market.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty seems a little lost in its direction this morning. However, the current trend continues to remain bullish, and dips like these can be utilized to trickle in buy positions for a higher target of 15,100. Strong support lies at 14,400 and since that is a steep stop to maintain, a buy-on-dips approach would be most advisable.
Wipro raises Q1 revenue growth guidance after Capco acquisition; Shares zoom 4%
Shares of Wipro rallied 4.5 percent in early trade to a 52-week high of Rs 511.95 apiece as the company raised its revenue growth guidance for the first quarter of fiscal 2022 after the completion of Capco’s acquisition. Wipro said it now expects Q1FY21 revenue from its IT services business to be in the range of $2,324 million to $2,367 million. Wipro revised its Q1FY22 IT services revenue growth guidance to $2,324-2,367 million from $2,195-2,238 million earlier.
“This translates to a sequential growth of 8.0 percent to 10.0 percent,” Wipro said in a regulatory filing. The company had earlier guided for 2-4 percent revenue growth.
Market Watch: Chandan Taparia, Motilal Oswal Financial Services
– Buy Ambuja Cements at Rs 314.3 with a stop loss at Rs 306 for a target of Rs 330.
– Buy Apollo Hospitals at Rs 3,250.95 with a stop loss at Rs 3,150 for a target of Rs 3,400.
Opening Bell | Indian equity benchmark indices opened lower on Friday following mixed cues from global peers. At 9:15 am, the Sensex opened 0.81 percent, or 405.05 points, lower at 49,360.89, while the Nifty50 index opened at 14,747.35, down 147.55 points, or 0.99 percent. Midcap and smallcap indices declined over half a percent each. Among sectoral indices, banks, metals, financial services and auto fell, while gains were seen in Nifty IT and Nifty Pharma.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
So far the positive global cues and strong quarterly earnings season has been supportive to the market. While the market undertone is positive, the extension of lockdowns and the continuous rise in cases could cap the upside. The progress on the vaccination front from next week as it gets opened for all will be eagerly tracked. On the global front, market participants will keep an eye on the US Q1 GDP data and weekly jobless claims.
Market Watch: Gurmeet Chadha, Co-Founder & CEO, Complete Circle Consultants
The economy facing sectors are seeing stress, so clear avoids are the aviation, multiplexes, the hope trades as the economy opens. Also NBFCs in particular one exposed to MSMEs and the informal sector are avoid. Stick with a City Union Bank kind of a bank, decades of cash credit and working capital experience. Stick where there is earning growth, stick where the impact in minimal. Stick to maybe IT, it has given a decent correction post the numbers. Stick to pharma, some of the consumption names and be a little defensive at this point of time.
. @Wipro revises Q1FY22 revenue growth guidance after completing Capco acquisition. Q1FY22 $ revenue now seen at $2,324-2,367 m Vs $2,195-2,238 m eEarlier & growth seen at 8-10% Vs guidance of 2-4% Earlier pic.twitter.com/RRR3yksaCG
— CNBC-TV18 (@CNBCTV18Live) April 30, 2021
Asian shares slip but economic optimism keeps world shares near record high
Asian shares slipped on Friday but world stocks held near a record high after strong US economic data and the Federal Reserve’s commitment to continue supporting the economy fuelled investors’ appetite for risk. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5% with both Japan and China falling ahead of a long weekend. Both markets will be closed through Wednesday. Japan’s Nikkei fell 0.4% while China’s CSI 300 lost 0.5% in early trade. MSCI’s broadest gauge of world stocks covering 50 markets, ACWI, was little changed, a day after it hit a historic high, extending its monthly gains to 5.1%.
Dollar set for 4th weekly drop on dovish Fed; loonie at 3-year high
The US dollar skidded toward a fourth straight weekly decline against a basket of major peers on Friday, as the Federal Reserve stuck to its message of ultra-low interest rates for longer. The dollar index was on course to end the week 0.2 percent lower, bringing its losses for April to 2.8 percent. A four-week losing streak would be the longest since the six-week slide to the end of July, and the monthly loss would also be the biggest since July’s 4 percent slump.
Titan Company Q4 profit rises 48% to Rs 529 crore, revenue up 61% YoY
Titan Company reported 48.2 percent year-on-year (YoY) growth in standalone profit for the quarter ended March 2021 at Rs 529 crore, driven by jewellery business. The company had earned a profit of Rs 357 crore in the year-ago quarter. The standalone revenue from operations in Q4FY21 grew by 61.1 percent YoY to Rs 7,135 crore. The jewellery segment registered a revenue growth of 71.1 percent YoY at Rs 6,422 crore, while its EBIT rose 31.6 percent YoY to Rs 703 crore.
𝐌𝐚𝐫𝐤𝐞𝐭 𝐀𝐜𝐭𝐢𝐨𝐧 𝐎𝐯𝐞𝐫𝐧𝐢𝐠𝐡𝐭
– Equities saw an afternoon rally, S&P-500 +0.68%
– US 10y yield jumped 4 bps to 1.6850% at one point, pared back to 1.6340% by close
– USD mostly bid against both G10 & EM
– Positioning & month-end dynamics at play
— Prashant Nair (@_prashantnair) April 30, 2021
SGX Nifty | The SGX Nifty was trading 183.50 points, or 1.23 percent, lower at 14,747.50, indicating a negative start for the broader index in India.
China’s factory activity growth slows on supply bottlenecks, soft demand
China’s factory activity expanded at a slower-than-expected pace in April as supply and transport bottlenecks weighed on production and overseas demand lost momentum. The official manufacturing Purchasing Manager’s Index (PMI) fell to 51.1 in April from 51.9 in March, data from the National Bureau of Statistics (NBS) showed on Friday. It remained above the 50-point mark that separates growth from contraction on a monthly basis but was below the 51.7 in a Reuters poll of analysts.