Laurence Balanco of CLSA says:
Nifty: close above 15,375-15,524 could provide an upside target of 16,600-16,700

SBI offers significant upside as the stock continues to confirm the breakout from its 2010-2021 trading range supporting an ultimate upside target of Rs755-760

#TOP10 #StocksInFocus
1- SUN PHARMA
2- EICHER MOTORS
3- DIXON TECHNOLOGIES
4- METROPOLIS HEALTHCARE
5- CADILA HEALTHCARE
6- HESTER BIO
7- PANACEA BIOTECH
8- GLENMARK
9- REC
10- BPCL

MAHARASHTRA CMO UDDHAV THACKEREY WILL NOT OPEN MALLS AND THEATRES FOR 15 DAYS IN FIRST PHASE OF REOPNING: ABP NEWS
#PVR
#PHOENIXMILLS
#inoxtag

As per SEBI circular dated 20th July 2020
Phase 3 will be implemented from 01st June 2021 in both Cash & Derivative segments.Below are the changes applicable W.E.F. 1st June 2021

1) 75% of total Peak margin (Highest Margin utilization for the day)will be required upfront before placing any order across all segments.

2) Default Limit in all leverage products will be maximum 1.30 times

*Sun Pharma – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Near term margins hiccups however directionally Positive*
_Though management refrained from giving any guidance due to ongoing uncertainty, however the management sounded optimistic about the medium to long term prospects_

The stock is trading at 27.3x FY22E consensus earnings

• 1H was severely impacted due to pandemic. Second half witnessed gradual recovery as most countries given the lifting of the lockdown instructions in a phased manner. For Sun Pharma, sales in 2H was 8% higher than 1H
• R&D expenses are likely to remain between 8-9% of sales however during this year due to restrictions on clinical trials – the cost was lower
• *Global Specialty* - Rev in Q4 was $139mn across all markets (vs $148mn in Q3FY21 and $126mn in Q4FY20).
• Specialty R&D was 23% of total R&D
• FY21 – Illumya sales was $143mn up 51% yoy, recorded good growth despite lockdown of clinics in 1H

*US* – 32% of consol sales in Q4
• $370mn – Q4 – down 1% yoy due to Taro. Last year numbers had one-time sales; adjusting for same sales growth would have been higher
• Specialty revenues in US have grown over Q4 last year, mainly driven by Ilumya, Cequa and Absorica LD

*India branded formulations* business recorded sales growth of 32%. For Q4, while the chronic segment continued to show steady growth, the sub chronic segment witnessed a recovery
• Q4 saw normalisation of branding and travel cost
• Launched 31 products in the Indian market

Other Business
• Emerging (17% of total sales) - $192mn Q4 up 2.7% yoy, in cc 5.3% yoy
• FDs in ROW (excl US, Emg ) – 14% of total sales - $163 mn up 5.5% yoy
• API sales at Rs 435.7 cr, down 9.9% yoy
• R&D – Rs 557cr – 6.6% of sales – FY21 2149.9 cr 6.5% of sales
• Generic Pipeline – 94 ANDAs, 9 NDAs awaiting approvals
• Evaluating biosimilars for 3rd wave of biosimilars
• Guidance – refraining due to uncertainity;

*Cadila Healthcare – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*

The stock is trading at 30.6x FY22E consensus earnings

Cadila reported marginally above expectations results for Q4 led by India and Emerging markets. Management attributed strong India growth to healthy traction in specialty segment which they expect to continue in the coming quarters. US sales declined 6% yoy on the back of weak flu season, absence of meaningful launches, weak flu season and lower offtake in gAsacol HD (which is expected to normalise by Q2FY22)
Cadila is in the final stages of Zycov-D vaccine trials and will submit data by next month. The company currently has an in-house capacity of 10m doses a month and has also partnered with a third-party manufacturer and can ramp up capacity to 250-300m doses a month in 4-6 months. Currently, Zycov-D is a 3 dose regimen but additional trials for a 2- dose regimen are ongoing.
Cadila launched 30 products in the US market during FY21 and aspires to launch similar number i.e ~30 products in FY22 as well which also include a complex injectable product.

Dear All,

Nirmal Bang is inviting you to a Zoom webinar.
When: Tomorrow, 11:30 AM India
Topic: June Month Outlook

Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_rA3A3hfbR2a81KtKfRO6jg


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ASTRAZENECA PHARMA: CO AND SUN PHARMA DISCONTINUE DISTRIBUTION PACT || PACT FOR THE DISTRIBUTION OF DAPAGLIFLOZIN, AN INNOVATIVE TYPE 2 DIABETES MEDICINE, IN INDIA

https://youtu.be/2aIz2d6T7iM

For more such interesting market insights, please subscribe to Nirmal Bang's YouTube channel.

*Nocil – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
Demand outlook continue to remain buoyant. Volume/Sales/Realisations have improved sequentially by 3%/17%/14%. FY21 saw 14% volume growth despite Covid19 related disruptions in 1H

The stock is trading at 25x FY22E consensus earnings

Global rubber consumption de-grow by mere ~6.5% in CY20 v/s de-growth of ~15% in H1CY20, showing strong recovery in 2H. On similar lines, India rubber consumption de-grew by ~5% in 2020. Per management, monthly rubber consumption has reached early 2019 levels. Globally, *Tyre majors are witnessing momentum in operating levels, which is positive for medium term demand outlook*. The company has taken price hikes from jan’21 which has benefitted the realisations. Nocil has taken further price hikes in Q1FY22.
ADD investigation has been delayed due to 2nd wave of Covid
*Going Forward* - Q1FY22E volumes are expected to be better than Q1FY21. As the input price are stabilising, EBITDA margins will improve gradually

*3M India Ltd.* | *CMP* Rs. 26880 | *M Cap* Rs. 30374 Cr | *52 W H/L* 31000/16830
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 827.2 Cr (11.6% QoQ, 22.9% YoY) vs QoQ Rs. 741.4 Cr, YoY Rs. 673.2 Cr
EBIDTA came at Rs. 102.4 Cr (11.7% QoQ, 34.2% YoY) vs QoQ Rs. 91.7 Cr, YoY Rs. 76.3 Cr
EBITDA Margin came at 12.4% vs QoQ 12.4%, YoY 11.3%
Adj. PAT came at Rs. 70.5 Cr vs QoQ Rs. 59.4 Cr, YoY Rs. 60.1 Cr
Quarter EPS is Rs. 62.4
Share is trading at P/E of 187.1x TTM EPS

*Ipca Laboratories Ltd.* | *CMP* Rs. 2239 | *M Cap* Rs. 28391 Cr | *52 W H/L* 2460/1466
(Nirmal Bang Retail Research)
*Result below expectation*
Revenue from Operations came at Rs. 1114.6 Cr (-20.9% QoQ, 3.8% YoY) vs expectation of Rs. 1285.8 Cr, QoQ Rs. 1409.8 Cr, YoY Rs. 1073.8 Cr
EBIDTA came at Rs. 228.9 Cr (-37.6% QoQ, 35.9% YoY) vs expectation of Rs. 303.1 Cr, QoQ Rs. 366.9 Cr, YoY Rs. 168.5 Cr
EBITDA Margin came at 20.5% vs expectation of 23.6%, QoQ 26%, YoY 15.7%
Adj. PAT came at Rs. 161.3 Cr vs expectation of Rs. 210.3 Cr, QoQ Rs. 265.5 Cr, YoY Rs. 86 Cr
Quarter EPS is Rs. 12.7
Share is trading at P/E of 24.7x FY22E EPS

Dear All,

Nirmal Bang is inviting you to a Zoom webinar.
When: May 31, 2021 08:45 AM India
Topic: Morning Market Update

Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_JlV6LfMHTKOydkFgi83OSw


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*TV Today Network Ltd.* | *CMP* Rs. 333 | *M Cap* Rs. 1988 Cr | *52 W H/L* 333/168
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 214.3 Cr (-4.2% QoQ, 2.9% YoY) vs QoQ Rs. 223.6 Cr, YoY Rs. 208.3 Cr
EBIDTA came at Rs. 49.7 Cr (-35.9% QoQ, 6.2% YoY) vs QoQ Rs. 77.5 Cr, YoY Rs. 46.8 Cr
EBITDA Margin came at 23.2% vs QoQ 34.7%, YoY 22.5%
Adj. PAT came at Rs. 36.2 Cr vs QoQ Rs. 54.8 Cr, YoY Rs. 27.8 Cr
Quarter EPS is Rs. 6.1
Share is trading at P/E of 11.1x FY22E EPS

*Nesco Ltd.* | *CMP* Rs. 549 | *M Cap* Rs. 3870 Cr | *52 W H/L* 639/391
(Nirmal Bang Retail Research)
*Result has declined*
Revenue from Operations came at Rs. 75.1 Cr (-9% QoQ, -36.2% YoY) vs QoQ Rs. 82.5 Cr, YoY Rs. 117.8 Cr
EBIDTA came at Rs. 47.5 Cr (-10.1% QoQ, -33.3% YoY) vs QoQ Rs. 52.9 Cr, YoY Rs. 71.3 Cr
EBITDA Margin came at 63.3% vs QoQ 64.1%, YoY 60.5%
Adj. PAT came at Rs. 39.7 Cr vs QoQ Rs. 48.9 Cr, YoY Rs. 52.9 Cr
Quarter EPS is Rs. 5.6
Share is trading at P/E of 19.2x FY22E EPS

*Mahindra & Mahindra Ltd.* | *CMP* Rs. 826 | *M Cap* Rs. 102688 Cr | *52 W H/L* 952/380
(Nirmal Bang Retail Research)
No. of Vehicles Sold 202223 vs QoQ 223978,YoY 151713
*Result is marginally below expectations*
Revenue from Operations came at Rs. 13512.4 Cr (-4.9% QoQ, 47.8% YoY) vs expectation of Rs. 12795.1 Cr, QoQ Rs. 14215.9 Cr, YoY Rs. 9143.7 Cr
Gross Profit Margins came at 28.3% vs QoQ 29.4%, YoY 32.8%
EBIDTA came at Rs. 1789.3 Cr (-21.4% QoQ, 57.7% YoY) vs expectation of Rs. 1865.1 Cr, QoQ Rs. 2277.8 Cr, YoY Rs. 1134.8 Cr
EBITDA Margin came at 13.2% vs expectation of 14.6%, QoQ 16%, YoY 12.4%
Adj. PAT came at Rs. 935.1 Cr vs expectation of Rs. 1094.7 Cr, QoQ Rs. 1722.4 Cr, YoY Rs. 278.1 Cr
Quarter EPS is Rs. 7.5
Share is trading at P/E of 18.8x FY22E EPS

*Deepak Fertilisers & Petrochemicals Corporation Ltd.* | *CMP* Rs. 300 | *M Cap* Rs. 3081 Cr | *52 W H/L* 309/95
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 1575.1 Cr (8.8% QoQ, 21.8% YoY) vs QoQ Rs. 1447.1 Cr, YoY Rs. 1293 Cr
EBIDTA came at Rs. 273.1 Cr (26% QoQ, 128.4% YoY) vs QoQ Rs. 216.8 Cr, YoY Rs. 119.6 Cr
EBITDA Margin came at 17.3% vs QoQ 15%, YoY 9.2%
Adj. PAT came at Rs. 113.3 Cr vs QoQ Rs. 87.6 Cr, YoY Rs. 22.4 Cr
Quarter EPS is Rs. 11
Share is trading at P/E of 7.7x TTM EPS

*Karur Vysya Bank Ltd.* | *CMP* Rs. 59 | *M Cap* Rs. 4675 Cr | *52 W H/L* 65/23
(Nirmal Bang Retail Research)
*Result is above expectations* due to improved asset quality
Net Interest Income came at Rs. 613 Cr vs expectation of Rs. 588 Cr, YoY Rs. 590 Cr, QoQ Rs. 584 Cr
Non Interest Income came at Rs. 216 Cr vs expectation of Rs. 210 Cr, YoY Rs. 347 Cr, QoQ Rs. 251 Cr
PBP came at Rs. 250 Cr vs expectation of Rs. 375 Cr, YoY Rs. 500 Cr, QoQ Rs. 257 Cr
Provisions came at Rs. 71 Cr vs expectation of Rs. 240 Cr, YoY Rs. 429 Cr, QoQ Rs. 201 Cr
Adj. PAT came at Rs. 104 Cr vs expectation of Rs. 96 Cr, YoY Rs. 84 Cr, QoQ Rs. 35 Cr
Gross NPA came at Rs. 4143 Cr vs QoQ Rs. 4728 Cr at 7.85% vs QoQ 9.07%
Net NPA came at Rs. 1719 Cr vs QoQ Rs. 2015 Cr at 3.41% vs QoQ 4.08%
Quarter EPS is Rs. 1.3
Share is trading at P/E of 8.8x FY22E EPS & 0.9x trailing P/Adj. BV

*Max Healthcare Institute Ltd.* | *CMP* Rs. 224 | *M Cap* Rs. 21636 Cr | *52 W H/L* 224/
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 801.9 Cr (0.8% QoQ, 223.5% YoY) vs QoQ Rs. 795.6 Cr, YoY Rs. 247.9 Cr
EBIDTA came at Rs. 168.1 Cr (5% QoQ, 754.9% YoY) vs QoQ Rs. 160.1 Cr, YoY Rs. 19.7 Cr
EBITDA Margin came at 21% vs QoQ 20.1%, YoY 7.9%
Adj. PAT came at Rs. 69.7 Cr vs QoQ Rs. 90.4 Cr, YoY Rs. 53.2 Cr Lower PAT QoQ is on account of higher Tax
Quarter EPS is Rs. 0.7

*4.10 PM, 28th May 2021:*

*LATEST AFTER THE BELL: Nifty scales fresh record highs, Sensex at record closing high.*

*Nifty (+98, 15436).*

Positivity greeted Dalal Street on the 1st trading day of June series as Nifty ended higher for the 6th day in a row and most importantly scaled fresh record high. Index heavyweight Reliance Industries was the star performer, up 6% for the day followed by HDFC Bank.

*Yippee!*

The 3 positive catalysts driving sentiments were:

1. A sharp drop in Covid-19 cases in India.
2. Announcement of unlock in the national capital.
3. President Joe Biden plans to propose a $6 trillion budget for fiscal 2022.

*Happy Yipee Yehey!*

Broader markets, however, settled the day in the red on the back of profit-booking. The BSE Midcap index fell 0.12% and the BSE SmallCap index dropped 0.48%.

Amongst sectoral indices, Nifty PSU Bank index gained 0.7% followed by the Nifty Private Bank index, up 0.3% while Nifty Pharma index slipped 1.2% on the NSE. Except for the pharma and IT, all other sectoral indices ended in the green. BSE Midcap and Smallcap indices ended marginally lower.


*The other positive catalysts:*

1. Vaccine rollouts are also expected to get faster.
2. Good corporate results.
3. The remarkable strength of the U.S. economic recovery.
4. Any pick-up in inflation to be temporary.
5. Strong global cues.
6. Value buying backed with fear of missing out (FOMO) ruling traders’ mindset


*The other key highlights of today’s trade:*

• Nifty ends higher for 6th day in a row.
• Nifty ends at new closing peak at 15436 mark.
• Around 27 stocks of the Nifty 50 stocks ended the day in green.
• Top Index Gainers: RELIANCE INDUSTRIES (+5.99%), ADANI PORTS (+3.41%), GRASIM (+3.38%)
• Top Index Losers: SUN PHARMA (-3.84%), SHREE CEMENT (-1.66%), BAJA FINSERV (-1.31%).


*Our view for Monday’s trade:*

Positivity should greet Dalal Street in next week’s trade with all aggressive bullish eyes on Nifty’s psychological 15500 mark. We suspect another round of great fireworks display quite likely.

Technically speaking, Nifty’s make-or-break supports are placed at 15111 mark. As long as Nifty’s 15111 support holds, the benchmark will aim its all-time-high at 15500-15751 zone and then all bullish bets at magical 16000 mark.

Amongst stocks looking bullish are: EICHER MOTORS, MCDOWELL, GRASIM, SBI, AXIS BANK and INDUSIND BANK with interweek perspective.



*Stay Tuned.*

*Disclaimer:* Investment/Trading in equities is subject to market risks. Notwithstanding all the efforts to do best research, clients should understand that investing in equities, involves a risk of loss of both.