DoW TECH TRIO

✅Prakash Industries cmp 89.6 Super Breakout With huge Volumes. Tgt 120. Stop Loss~73 cl basis.
FUNDAMENTALS: Most undervalued steel stock. Life time Best financials coming. TP ₹ 150-175 in 6 months

✅Precot Ltd ( only NSE) Accumulate in the range 111/115 Add heavily abv 128 Tgt 160. Stop Loss~97 cl basis
FUNDAMENTALS~ Cotton yarn boom. Stock tdg @ 1.3xFY22E EBIDTA. TP~ ₹ 200 in 6 months

✅Dcm Nouvelle BSE 542729 cmp 85 Making base near 77 and all set to blast for Tgt 105/115. Stop Loss~75 cl basis
FUNDAMENTALS: 300 Acre surplus land bank in Hissar TP~ 250 next year

TP subject to broader mkt conditions. Personal due diligence advised

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*SGX Nifty +75 pts (14855) from last trade 14780*

Nikkei +99 pts,
Hangseng +84 pts,
Now @6.56am.

Dow +318.19 pts ,Nsdq +50.42 pts, S&P +34.03 pts, Bovespa +356 pts , Ftse +36 pts , Dax +25 pts , Cac +17 pts ,Crude @ $64.87 brl (+0.16), Brent @ $68.09 brl (+0.00) , Gold @ 1816.00 (+0.30), Silver @ $27.47 (-0.01), Euro @ $1.2065, JPY @ $109.05  INR @ 73.605

*Today's Corporate Action*
*7th May Ex Date*
SEZAL
Resolution Plan -Suspension

VAIBHAVGBL
Stock  Split From Rs.10/- to Rs.2/-

*Today's Key Results/Board Meetings*
*7-May-21*
ACGL
Audited Results; Final Dividend

CHOLAFIN
General; Audited Results; Final Dividend

DABUR
Audited Results; Final Dividend

DUNCANENG
Audited Results

EIHOTEL
Audited Results

EVERESTIND
Audited Results; Final Dividend

GESHIP
Audited Results; Final Dividend

GLANCE
General;Audited Results

GODREJAGRO
Audited Results; Final Dividend

GRINDWELL
Audited Results; Dividend

HDFC
General; Audited Results; A.G.M.; Dividend; Quarterly Results

INDOCITY
Audited Results

KANSAINER
Audited Results; Dividend

MADHUVEER
General

MRPL
Audited Results

NAVINFLUOR
Audited Results; Final Dividend

NITTAGELA
Audited Results;Dividend

NRINTER
General

OBCL
General

PIONDIST
Audited Results

PONNIERODE
General; Audited Results; Dividend

RELHOME
General;Audited Results

RSYSTEMINT
Audited Results; Quarterly Results

SACHEMT
Audited Results

SSWL
Audited Results; Final Dividend

SUTLEJTEX
Audited Results

TANFACIND
Audited Results

ULTRACEMCO
Audited Results; Dividend

*Stock under F&O ban on NSE*
*7-May-21*
1BHEL
2SUNTV
3TATACHEM

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SCREAMING BUY: Valuation 0.40 P/B, Tdg @ 1.05xFY22EEBIDTA , Mcap 0.15xFY22ESales

🎯Turnover 150 times of Equity. It means small rise in margin leads to disproportionately high rise in EPS. Nahar Spg ( 2nd largest spinner was quoting@ 180 when Sensex was 1/3rd of current level.

💰 *Nahar Spinning Mills Ltd - BUY TP 200* 💰
_Amazing Q3~A must in every Portfolio_

Amazing Q3
🚀🚀EBITDA 66cr vs 10cr _(+560% QoQ)_ vs 25cr _(+164% YoY)_

🚀🚀PAT 20cr vs 17cr Loss QoQ vs 10cr Loss YoY

🚀🚀EPS ₹ 5.61 vs (-4.81) QoQ vs (-2.68)YoY

Book Value: ₹ 228
Price/Book – 0.40
Promoter holding - 65.64%

*Rationale for Recommendation:*
💫 Nahar Spg only in Cotton yarn where boom is unprecedented, hence in a position to reap maximum profits
💫 FY19 Sales ₹ 2317cr, EBITDA ₹ 244cr PAT ₹ 65.72cr, EPS ₹ 18.22 and Cash EPS ₹ 41.50
💫 FY20 (Bad for entire industry due to 15% fall in realisations) Sales ₹ 2090cr, EBITDA ₹ 68cr and Loss ₹ 53cr
💫 H1FY21 (Bad due to lockdown) Sales ₹ 754cr, EBITDA ₹ 10crand Loss ₹ 26cr
💫 H2FY21E: Sales ₹ 1300cr, EBITDA ₹ 145cr NP 50 cr EPS ₹ 12 Cash EPS ₹ 31

✅ _*FY22E: Sales 2625cr, EBITDA 335cr, NP 138cr, EPS₹ 38.3 and Cash EPS₹ 62*_
💫 Stock is trading very cheap at just 0.15x FY22E Sales _*(Yes, Just 0.15x FY22E P/S)*_
💫 Stock is trading very cheap at just 1.05x FY22E EBITDA
💫 Nahar Spinning is most undervalued Textile stock as trading at just 2.5x FY22EEPS *whereas KPR @ 15x FY22EPS*
💫 Stock is trading very cheap at just 0.40x P/B _( *Yes, a mere 0.40x P/B)*_

*Huge Production Capacity~ Replacement Cost 2300-2400 Cr*
🔥5 Lakh Spindles for Cotton/Blended Yarn _(2nd biggest in India)_
🔥 Garment capacity of 1.2 Cr pieces
🔥 Total 7 plants
🔥 Exports near 60-65% of total revenue

*The textile industry had been battered and bruised by the impact of subdued demand for past 15-18 months. Covid further added to the woes of the industry making the sector look cheaper. Current trends indicate that there is a significant pickup in demand along with rising yarn prices. Nahar Spinning Mills looks extremely cheap given its strong fundamentals and top class performance in past. H1FY21 performance has been severely impacted due to lock down. Our channel checks suggest that there is an unprecedented boom in Cotton yarn along with rising demand. Nahar Spg trades extremely cheap at just 0.45x P/B and 2.5x FY22EEPS. Nahar Spg easily appears to be the cheapest Textile stock, hence we suggest a BUY with a TP of 200 in 12 months.*

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CUPID LIMITED: BUY TP 450
✅Stock tdg @ 8.4xFY21EEPS vs Peer group PERatio of 45

*Rationale for Recommendation*
🎯 Low Equity Base & DEBT FREE.

🎯 Liquid Cash of ₹72 crores incl. ₹67.26 crores in Funds (as on Dec 4) & ₹4.51 crores of Fixed Deposits. Equivalent to ₹54 per share. Effective stock price is ₹197.

🎯 More than 20 years’ experience. In-house R&D Center. Contract manufacturing (OEM).

🎯 First company in the World to have been prequalified by WHO-UNFPA for supply of both Male & Female condoms. Exported condoms to 80+ countries.

🎯 Cupid’s manufacturing facility is designed to facilitate world-class manufacturing of quality products with Hitech German Technology Dipping Line as per GMP guidelines.

🎯 *Cupid’s confirmed order book stands at approx. ₹120 crores as on Oct 1, 2020.*

🎯 Cupid’s board has considered and approved the Service Provider and License Agreement between Cupid Limited and Invex Health Private Limited for *manufacturing of Medical Devices including various testing kits/diagnosing kits by Cupid Limited.*

⭕ *Cheapest Medical Devices stock in peer group PE is 45+ whereas Cupid is trading at 8.4x (FY20), 7.63 (FY21E) and 6.32x (FY22E).*


_*“During 2019-20, Cupid commenced export of female condoms to Brazil and also exported male condoms to Tanzania and South Africa. The order from Brazil is by far the largest single order Cupid has received in its 27 years history. Our continued focus on penetrating new geographies enabled us to win exports orders from 8 new countries through UNFPA. Till date, the Company has sold its products to over 80 countries worldwide.*_

*Products & Capacity*
Cupid’s manufacturing facility is located at Sinnar near Nashik, about 200 km East of Mumbai.

♀️ *Male condoms*, _480 million pieces per annum._
♀️ *Female condoms*, _52 million pieces per annum._
♀️ *Water Based Lubricant Jelly*, _210 million sachets per annum._
♀️ *Clean & Safe Hand Sanitizer.*
♀️ *Clean & Safe Hair Remover.*

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Brokerages Raises Tata Steel Earnings Est & TP
JPM-OW,

TP Rs 1425 (Vs Rs 1250), Raise FY22E/23E adj. EBITDA by 28%/5%

CITI- Buy, TP to Rs 1375 (Vs Rs 1200),

Raise FY22-23E EBIDTA by 13%/12%

Jefferies-BUY, TP Rs 1500 (Vs Rs 1150),

Raise FY22-23 EBITDA by 28-48%

Morgan Stanley Raises Tata Steel TP To Rs 1630 from Rs 1000

Raise FY22/23 EBIDTA est by 33%/32%

@Nigel__DSouza @CNBCTV18News @CNBCTV18Live

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Nippon India Japan Equity Fund - Growth
Parag Parikh Flexi Cap Fund - Growth
SBI International Access - US Equity FoF -
Growth Franklin Asian Equity Fund - Growth
Some good funds to diversify your holdings in countries such as Japan, China and USA

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*New client Acquisition number for Mar-21*

Angel - 393500
Next Billion- 361000
Zerodha- 306000
Rksv- 196000
Motilal - 87000
5paisa - 82000
Paytm - 41000

*View: Positive for CDSL*

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*Tata Consumer Q4 Results: Net Profit Slumps 44%, Margin Contracts*

Consumer Products Ltd. saw a fall in quarterly profit and a contraction in margin over the preceding three months as expenses rose.

Net profit of Tata Tea and Tata Salt maker declined 44% sequentially to Rs 133.34 crore in the January-March period, according to an exchange filing. That compares with the Rs 186.9-crore consensus estimate of analysts tracked by Bloomberg.

*Q4 Highlights (Quarter-On-Quarter)*

Revenue fell 1% to Rs 3,037.22 crore, compared with the estimated Rs 2,856.4 crore.

Operating profit fell 17% to Rs 300.2 crore, against Rs 353.1-crore forecast.

Margin contracted to 9.% from 11.8%, dragged by higher employee benefit costs and other expenses.

Analysts had pegged the metric at 12.4%.

Employee benefit expense rose 12.02% to Rs 270.22 crore.

Other expenses rose 16.3% to Rs 404.40 crore.

During the year, Tata Salt gained market share with its value-added salts portfolio growing faster, which is in line with the company’s premiumisation strategy.

The company added five new products to its ready-to-cook category under the “Tata Sampann” brand. They include “haldi doodh” mix, “masala daliya khichdi” mix, dhokla mix, supergrain ragi idli and supergrain ragi dosa mixes.

In line with our strategic priority of exploring new opportunities, the health and wellness focused foods portfolio was further enhanced through acquisition of Kottaram Agro Foods Pvt (Soulfull brand)—now renamed as Tata Consumer Soulfull,” the company said in an exchange filing. “This opens significant opportunities in the fast growing ‘on the table’ and ‘on the go’ segments.”

The company said integration of its India foods and beverages businesses is now complete. “A redesigned sales and distribution system is in place with digitisation across channel partners, a new integrated business planning system covering demand and supply planning is now live.”

We delivered yet another quarter of strong revenue growth, driven by double-digit volume growth (year-on-year) in India business,” Sunil D’Souza, managing director and chief executive of Tata Consumer Products, was quoted as saying. “During the year, we have stepped up our distribution reach, invested behind our brands, and focused on premiumisation in our core portfolio.”

He said the company “continued the momentum in driving the digital agenda with digitalisation of channel partners”.

While the consumer goods sector continued to recover from the pandemic-driven disruptions, Tata Consumer’s peers Hindustan Unilever Ltd., Britannia Industries Ltd. and Nestle India Ltd. flagged raw material price pressures in the reported quarter.

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*Hero MotoCorp Q4 Results: Profit Beats Estimates Despite A Decline*

Hero MotoCorp Ltd.’s quarterly profit fell as higher ownership cost hurt two-wheeler demand. Net profit of India’s largest two-wheeler maker fell 17% sequentially to Rs 865 crore in the quarter ended March, according to an exchange filing. That, however, surpassed Rs 799-crore consensus estimate of analysts tracked by Bloomberg.

The Pawan Munjal-led company’s revenue fell 11% over the preceding three months to Rs 8,686 crore, against the Rs 8,416-crore forecast.

*Key Highlights (QoQ)

Earnings before interest, tax, depreciation and amortisation fell 14% to Rs 1,211 crore.

Ebitda margin stood at 13.9% against 14.5%

Hero MotoCorp said in the statement that while a late recovery towards the second half of the FY21 saw the company gain strong volumes, the broader market continues to suffer in view of the recent escalations in Covid-19 cases.

The New Delhi-based motorcycle maker sold 15% fewer units than the preceding quarter at 15.68 lakh in the January-March period. The decline came as demand in rural India, which was expected drive two-wheeler sales buoyed by a good monsoon, a bumper crop, increased government spending and less severe Covid-19 restrictions, failed to take off. Costly fuel, a series of price hikes prior to the pandemic and then again recently to counter the surge in commodity costs also caused sales to tumble. Hero MotoCorp’s peer Bajaj Auto Ltd. also acknowledged the sharp increase in input costs in the fourth quarter, and expects it rise in the ongoing three-month period ending June. Bajaj Auto reported a fall in net profit and revenue over the preceding quarter.

BloombergQuint’s survey of dealers across the country indicates pressure on two-wheeler demand, which is causing a pile-up in inventory. Hero MotoCorp has already extended the plant shutdown across its plant until May 9.

Niranjan Gupta, chief financial officer at Hero MotoCorp, said the firm is prepared to address any eventuality in order to stabilise its business in the remaining months of the quarter. He, however, expects normalcy to kick in from the second quarter.

A healthy monsoon, harvest season and a rebound in GDP to aid the industry’s recovery from Q2 onwards," he said, adding that it also expects significant growth in its global business, and aims to work on developing the key overseas markets.


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*ArcelorMittal Expects 2021 Steel Consumption To Rise The Most In India*

ArcelorMittal SA expects steel consumption to grow at the fastest pace in India during the calendar year 2021. The steelmaker estimates apparent steel consumption, or total domestic production and net imports, to rise 16-18%, according to its statement. That’s about twice the estimated pace for the rest of the world (excluding China) where it sees demand growing 8.5-9.5%.

According to ArcelorMittal, apparent steel consumption is expected to: Grow 10 to 12% in the U.S., with stronger demand for flat products—particularly automotive—while construction demand (non-residential) remains weak. Rise 7.5-9.5% In Europe.

Grow 6.0-8.0% in Brazil, supported by ongoing construction demand and recovery in the end markets for flat steel. Rise 4-6% In the Commonwealth of Independent States. Grow 1-3% in China, supported by ongoing stimulus.

*January-March Numbers*

ArcelorMittal Nippon Steel India Ltd.’s crude steel production stood at 1.8 million tonne in January-March compared with 1.9 MT in the preceding quarter.

Ebitda stood at $0.4 billion vs $0.3 billion.

Demand and utilisation have improved after the economy reopened following the lockdown last year.

*Expansion Plans*

ArcelorMittal and Nippon Steel India Ltd. signed a memorandum of understanding with the government of Odisha to set up an integrated steel plant with a capacity of 12 million tonnes per annum in Kendrapara.

The joint venture plans to debottleneck operations (steel shop and rolling parts) and achieve capacity of 8.6 MT a year and plans to expand it to 14 MTPA in the medium term.


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Morgan Stanley Raises Tata Steel TP To Rs 1630 from Rs 1000
Raise FY22/23 EBIDTA est by 33%/32%

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▪️INFO EDGE : Food delivery app Zomato is in talks to invest around $100 million in egrocer Grofers, after discussions of a possible merger between the two fell through.

▪️Zomato’s investment may value the Gurugram-based online grocery firm at around $1 billion. (Possitive)

▪️MACRO TECH DEV. : Lodha Group, India’s largest realestate developer in terms of property sales, is aiming to turn a zero-debt company over the next three years with focus on affordable housing, MD & CEO Abhishek Lodha said. (Possitive)

▪️ANGEL BROKING : Board Approves Co. plan to enter in AMC biz (Possitive)

▪️SBI LIFE : Today Caryle To Sell 3.5 % stake via Block deal .

Do note : In March Pnb Paribas sold 5 % stake

▪️METALS STOCK: Steel Future trading at Record highs in China Backed by strong demand.

Aluminium prices at 11 year s high in Shanghai.

Price of Rebar, HRC at new highs (super possitive)


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🌟Good Morning All🌟

☀️ BSC Exclusive Morning Market News & Update☀️

🔹M&M: To open an advanced design centre for mobility products in the U.K. The company will set up Mahindra Advanced Design Europe in the West Midlands, U.K. The new Centre of Excellence will be a part of the Mahindra Global Design Network that includes the Mahindra Design Studio in Mumbai, India, and Pininfarina Design in Turin, Italy. This renews the
company's commitment to design and develop dynamic and authentic products with global appeal.

🔹Zensar Technologies: U.K.-based fintech company, Infinity Circle, has selected Zensar for end-to-end development of its next-gen wealth management platform.

🔹Sadbhav Infrastructure Project: Has entered into the Debenture Trust Deed to raise Rs 700 crore from the investors led by Allianz Global Investors and AMP Capital out of which a sum of Rs 550 crore has already been funded by the investors. Further SIPL has sold 7% of units in IndInfravit Trust to CPP Investments for a total consideration of Rs 441 crore. The above long
term funding and sale of units will help the company to inter alia meet repayment of all its existing short term debt obligations and to fund the ongoing portfolio of Hybrid Annuity Model road assets of the company

🔹Aurionpro Solutions: To exit the cybersecurity business with the sale of its investment to Forcepoint LLC., USA. The deal, for the divestment of all stake held by Aurionpro in its cybersecurity business, is valued at a consideration of $9.6 million (approximately Rs 71 crore).
Out of the total consideration, Rs 45 crore will be received upfront and the remaining amount to be received in tranches over a year upon fulfilment of contractual warranties and earn out.

🔹NLC India: Has allotted 13,000 Commercial Papers of the face value of Rs 5 lakh each, aggregating to Rs 650 crore.

🔹Nifty Earnings: HDFC, Ultratech Cement

🔹Non-Nifty Earnings: Cholamandalam Investment and Finance Company, Dabur India, EIH, Great Eastern Shipping Co, Godrej Agrovet, Grindwell Norton, Kansai Nerolac Paints, Mangalore Refinery & Petrochemicals, Navin Fluorine International, R Systems International, Steel Strips Wheels, Sutlej Textiles & Industries

Pledge Share Details

🌟Adani Enterprises: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 12 lakh shares on May 5.

🌟Adani Ports And Special Economic Zone: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 8.50 lakh shares on May 5.

Trading Tweaks

📌Ex-Date Stock Split: Vaibhav Global

📌Record Date Interim Dividend: Aptech, Allsec Technologies

📌Record Date Income Distribution: Embassy Office Parks REIT

📌Record Date Buyback: InfoBeans Technologies

📌Price Band Revised From 10% To 5%: Hikal, Angel Broking

📌Move Into Short-Term ASM Framework: Best Agrolife, The Great Eastern Shipping Company

📌Move Out Of Short-Term ASM Framework: Macrotech Developers, Panacea Biotec, Lemon Tree Hotels, Everest Kanto Cylinder, Rajratan Global Wire, Jay Bharat Maruti

Money Market Update

🎯The rupee ended at 73.77 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 73.91.


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*Solara Active Pharma – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
The company is looking to scale up newly launched products in Q2 and Q3 as well as Vizag facility is likely to ramp up further. Integration with Aurore would further boost the earnings as the acquisition is EPS accretive from year 1.

The stock is trading at 20.5x FY22E consensus earnings

• Adjusted for Ranitidine, revenues growth for FY21 is 30% vs reported 22%
• In FY21, the company has filed 8 US DMFs, which is double of last year and 3 EU DMFs
• *_CRAMS_* - there was a one-off delay in offtake by couple of customers which is likely to normalise going forward. *Solara continues to have good revenue visibility*
• *_Vizag Facility_* - the commercialisation of the Vizag facility is going on in a calibrated manner. The company has doubled its utilization rate from Q3 to Q4. The validation and commercialisation of multi-purpose facility would happen by Q1FY22
o Vizag facility had utilisation of 1/3rd in FY20 which was improved to 2/3rd in FY21. It is further likely to improve to full ramp up in next 3 months
• Vizag facility has capacity to produce covid related drug, Favipiravir. Between Aurore and Vizag, Solara would have largest capacity for Favipiravir API.
• *A couple of new products that were launched in FY21 are expected to scale up in Q2, Q3 of FY22. The company has confirmed orders for the entire year already for these product*
• The company has more exciting products in its pipeline which are likely to move into validation phase in FY22
• Capex for FY21 was Rs 174 cr with ATR of 1.8x including Vizag which is likely to scale up in FY22. Excluding this the ATR was 2.1x
• Net debt – Rs 408 cr
• *FY22 – likely to continue with same momentum of growth as FY21 with 23-25% EBITDA margins*
• Growth in semi-regulated market was higher which led to reduction in gross margins however it is likely to normalise in coming quarters
• Aims to file 10-12 products every year
• Added 4 new global pharma customers in FY21
• Capex FY22 – Rs 200-250 cr
• Looking for inorganic opportunities for CRAMS business – mainly lab/assets


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*ICRA Ltd.* | *CMP* Rs. 3383 | *M Cap* Rs. 3265 Cr | *52 W H/L* 3985/2109
(Nirmal Bang Retail Research)
*Result has declined*
Revenue from Operations came at Rs. 82.1 Cr (6.1% QoQ, -5.7% YoY) vs QoQ Rs. 77.3 Cr, YoY Rs. 87.1 Cr. Decline was mainly led by lower rating revenue at Rs. 50 Cr vs YoY Rs. 54 Cr.
EBIDTA came at Rs. 23.8 Cr (-1.6% QoQ, -26.9% YoY) vs QoQ Rs. 24.2 Cr, YoY Rs. 32.6 Cr
EBITDA Margin came at 29.1% vs QoQ 31.4%, YoY 37.5%
Adj. PAT came at Rs. 22.2 Cr vs QoQ Rs. 24.2 Cr, YoY Rs. 34.6 Cr
Quarter EPS is Rs. 23
Share is trading at P/E of 40x TTM EPS.

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*Craftsman Automation Q4FY21 Concall Update*

*Outlook: Neutral in near term; Positive in long term*

• Co is engaged in three business segments - Automotive Powertrain (52% of FY21 revenue), Automotive Aluminium Products segment (21%) and Industrial and Engineering segment (27%).
• Debt reduced to 704 cr in FY21 (reduction of 336 cr via (i) IPO proceeds (136 cr) and (ii) internal accruals (200 cr)). Co intends to reduce it by 200 cr in FY22. Interest cost should reduce in FY22 by 25 cr.
• Exports were at 10% of revenue in FY21.
• Capex run rate will continue to be around 100 cr as has been the case in last two years.
• Co has created good capacities and so there will be operating leverage once demand picks up.
• MHCV Industry mix is shifting towards higher tonnage, thus power train segment is doing better than the overall volume growth in MHCV industry.
• Machining sales were 121 cr n Q3 & 140 cr in Q4 (374 cr in FY21 i.e. 46% of powertrain sales of 811 cr)
• Aluminum content per vehicle will continue to increase which will drive the auto aluminum segment.
• Storage business had sales of 104 cr in FY21 against engineering segment sales of 400 cr, so a 25% mix.
• RM does not impact the power train segment as the RM here is a pass through (RM is provided by OEMs).
• RM inflation in steel & aluminum hurt gross margins during the qtr in other segments of auto aluminum products and engineering; co has increased prices which should support margins in next qtr.

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