M&M announces a dividend of Rs 8.75/share for FY21, highest ever dividend to commemorate the 75th year of the Company

*Jefferies: Reliance Industries (RIL IN): Petrochemicals: 50% Upside to Segment Ebitda if Current Spreads Sustain*

Maintain BUY with PT of Rs2580 (30% Upside)

Polymer spreads are at decade-highs on strong downstream demand. Polyester chain spreads, well below decade highs on large capacity addn, are recovering gradually. RIL's petchem portfolio spread is tracking 30% ahead of JEFe. Petchem Ebitda could be c50% ahead of JEFe if current spreads sustain in FY22E. This could drive 14% upside to our consol Ebitda est. Sustained strong performance increases the likelihood of the O2C transaction, in our view. Maintain Buy.

*Attractive post correction, increased likelihood of O2C stake sale*: At the current stock price, valuing the Energy business at long-term average multiples, we are left with Rs 1,150/share as imputed value of RIL’s stake in Jio and Retail. This is in line with the valuation offered by PE funds that bought stakes in Jio and Retail in 1QFY21. In our view, sustained strong petrochemical performance improves the likelihood of O2C stake sale in FY22. This could lead to a reversal of the 40% Nifty underperformance. Our PT (Rs 2,580) represents 30% upside.

🇮🇳 *India Daybook*

🔹 *Stocks in News*

*Metropolis:* Net Profit at Rs 61.0 crore from Rs 15.0 crore, revenue increased to Rs 291.0 crore from Rs 207.0 crore, YoY. (Positive)

*Dixon tech:* Net Profit at Rs 44.26 crore from Rs 27.6 crore, revenue increased to Rs 2110.0 crore from Rs 857.0 crore, YoY. (Positive)

*Honda Power:* Net profit jumped to Rs 15.3 crore from Rs 4.9 crore, while revenue increased to Rs 295.0 crore from Rs 195.0 crore, YoY. (Positive)

*Greenlam:* Net profit at Rs 31.3 crore from Rs 22.9 crore, while revenue seen at Rs 415.0 crore from Rs 324.0 crore, YoY (Positive)

*GSFC:* Net profit at Rs 149.8 crore from Rs 61.8 crore, while revenue seen at Rs 1740.0 crore from Rs 1862.0 crore, YoY. (Positive)

*Phoenix Mills:* Net profit at Rs 65.5 crore from Rs 46.7 crore, while revenue seen at Rs 385.0 crore from Rs 399.0 crore, YoY. (Positive)

*Mangalam Organics:* Net profit at Rs 44.6 crore from Rs 16.3 crore, while total income rose to Rs 96.0 crore from Rs 81.0 crore, YoY. (Positive)

*Redington:* Net profit at Rs 303.4 crore from Rs 126.7 crore, while total income rose to Rs 15503.0 crore from Rs 12666.0 crore, YoY. (Positive)

*GPPL:* Net profit at Rs 6.5 crore from Rs 4.8 crore, while total income rose to Rs 193.4 crore from Rs 161.9 crore, YoY. (Positive)

*Navneet:* Net profit at Rs 18.9 crore from loss of Rs 22.7 crore, while revenue rose to Rs 215.6 crore from Rs 123.0 crore, YoY (Positive)

*SH Kelkar:* Net profit at Rs 53.2 crore from Rs 18.1 crore, while revenue rose to Rs 375.9 crore from Rs 269.7 crore, YoY (Positive)

*Punjab Chemicals:* Net profit at Rs 10.5 crore from Rs 4.7 crore, while revenue rose to Rs 209.5 crore from Rs 106.8 crore, YoY (Positive)

*Siyaram:* Net profit at Rs 58.2 crore from Rs 23.3 crore, while revenue rose to Rs 507.0 crore from Rs 466.8 crore, YoY (Positive)

*Hawkins:* Net profit at Rs 24.0 crore from Rs 9.4 crore, while revenue rose to Rs 245.0 crore from Rs 146.0 crore, YoY (Positive)

*Solar Ind:* Net profit at Rs 95.0 crore from Rs 53.2 crore, while revenue rose to Rs 791.4 crore from Rs 547.5 crore, YoY (Positive)

*UCO Bank:* Net profit at Rs 80.0 crore from Rs 16.8 crore, while Interest Earned at Rs 3566.0 crore from Rs 3742.0 crore, YoY (Positive)

*Stylam Ind:* Net profit at Rs 23.5 crore from loss of Rs 9.2 crore, while revenue rose to Rs 166.5 crore from Rs 105.7 crore, YoY (Positive)

*Eicher Motors:* Net profit rose 72.9 percent to Rs 526.1 crore from Rs 304.3 crore, while revenue increased 33.2 percent to Rs 2,940.3 crore from Rs 2,208.2 crore, YoY. (Positive)

*NOCIL:* Net profit at Rs 37.33 crore in Q4FY21 as against Rs 21.87 crore, while revenue jumped to Rs 321.99 crore from Rs 212.66 crore, YoY (Positive)

*Apollo Hospital:* Company launches a drive-in vaccination programme in Ahmedabad. (Positive)

*Jubilant Pharma:* India Ratings has upgraded Long Term Issuer Rating to ‘IND AA+’ from ‘IND AA’. (Positive)

*TCS:* Recognized as a Leader in AWS Services in the US by ISG (Positive)

*TRIL*: Company receives export order of Transformers amounting to Rs. 84 Crores from GE T&D I. (Positive)

*Telecom Stocks:* Department of Telecom finally allotted 5G spectrum to Airtel, Vodafone Idea and Reliance Jio for 5G trials.. (Positive)

*NLC India:* The company has issued and allotted commercial papers worth Rs 300 crore. (Positive)

*Godrej Agrovet:* CRISIL has re-affirmed its "CRISIL A1+" rating on the Rs.1000 Crore. (Neutral)

*IRB Infra:* Net profit at Rs 98.0 crore from Rs 154.0 crore, while revenue increased to Rs 1606.0 crore from Rs 1584.0 crore, YoY (Neutral)

*Sun Pharma:* Net profit at Rs 894.0 crore versus poll of Rs 1443.0 crore, while revenue increased to Rs 8523.0 crore from Rs 8185.0 crore, YoY (Neutral)

*GIPCL:* Net profit at Rs 43.5 crore from Rs 61.9 crore, while revenue seen at Rs 332.0 crore from Rs 342.0 crore, YoY (Neutral)

*BBL:* Net profit at Rs 13.0 crore from Rs 14.2 crore, while revenue increased to Rs 290.0 crore from Rs 260.0 crore, YoY (Neutral)

*Suryoday Finance:* Net Loss at Rs 43.0 crore from loss of Rs 15.5 crore, while revenue fell to Rs 151.0 crore from Rs 203.0 crore, YoY. (Negative)

🔹 *Eyes 👀 on today*

• Paytm Is Said to Target $3 Billion IPO, Largest Yet in India
o Board plans to meet Friday to formally approve the IPO
• BPCL Privatization Expected Latest by March, CFO Says
o BPCL May Buy 2m Tons/Year of Iranian Oil if Price is Right: CFO
• Top India Drugmaker Misses Profit Estimate on One-Time Cost
o U.S. sales fell in the March qtr but India rose almost 13%
• Forex Trades Helped India RBI Pay Bumper Dividend to Government
• Cyclone Inflicts $2.1 Billion in Damage in India’s West Bengal
• India FY22 Housing Demand Seen Rising 5-10% on WFH Trend: Crisil
• Oil Demand Recovery in Virus-Ravaged India Tough to Predict
• U.S. LNG Exports to India Jump; Robust Deliveries to China
• Twitter Decries India Intimidation, Will Press for Changes
• Toll Collections Declined During 2nd Covid-19 Wave, Says ICRA: BQ
• Emerging Economies 2Q GDP Forecast Steady in Past Week
• Global Funds Sell Net INR6.61B of India Stocks on Thursday: NSE
o Domestic funds buy net 1.12b rupees of stocks
• Foreign Funds Buy Net INR14.95B of Indian Equities Over Two Days
• Foreigners Buy Net INR78.2B of India Equity Derivatives Thursday
• India’s Nifty Climbs to a Record as Businesses Prepare to Reopen
• Oil Erases Losses With Demand Hopes Weighing Against Iran Risk
• Ford Sets ‘No Production Days’ on May 28, 29 at India Plant: PTI
• RBI flags risk of bubble in Indian equity markets: PTI
• Sovereign gold bonds sales fetch INR257b till March end: PTI
• Eicher Motors (EIM): 4Q net income +73% y/y to 5.26b rupees, misses est. 5.66b; revenue +33% to 29.4b rupees
• Dixon Tech India (DIXON): 4Q net income 442.6m rupees vs. 615.9m rupees q/q
• HEG (HEG): 4Q net loss 160.8m rupees Vs. loss 3.8b y/y; revenue +3% to 3.8b
• IRB Infrastructure (IRB): 4Q net income -37% y/y to 974.6m rupees, beats est. 797.8m
• Metropolis Health (METROHL): 4Q net income 613.5m rupees vs. 154.9m y/y, beats est. 602.5m
• Redington India (REDI): 4Q net income 3.03b rupees vs. 1.19b y/y, beats est. 1.62b; revenue +39% to 2.92b
• Sun Pharmaceutical (SUNP): 4Q net income 8.94b rupees vs. 4b y/y, est. 13.7b; has 4Q exceptional loss 6.73b
• UCO Bank (UCO): 4Q net income 800.3m rupees vs. 167.8m y/y; Seeks to raise up to 30b rupees

🎯MARKET WIZARD🎯
📊 NEWSLETTER ISSUE 12


🎯Fundamental Stocks

▶️Nelcast Ltd
▶️D B Corp Ltd
▶️Reliance Industries Ltd
▶️ITC Industrial Ltd
▶️BCG Ltd


🎯Technical Stocks

▶️Arvind Fashion Ltd
▶️ BBTC Ltd - SPECIAL PICK
▶️ INTENSE TECH Ltd
▶️ KIRI INDUSTRIES Ltd
▶️ TOKYO PLAST Ltd

📍TEAM MARKET WIZARD 📍

*Bank of Baroda Ltd.* | *CMP* Rs. 84 | *M Cap* Rs. 43439 Cr | *52 W H/L* 100/36
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
Net Interest Income came at Rs. 7107 Cr vs expectation of Rs. 7684 Cr, YoY Rs. 6798 Cr, QoQ Rs. 7477 Cr
Non Interest Income came at Rs. 4848 Cr vs expectation of Rs. 2528 Cr, YoY Rs. 2835 Cr, QoQ Rs. 2896 Cr
PBP came at Rs. 6266 Cr vs expectation of Rs. 5343 Cr, YoY Rs. 5121 Cr, QoQ Rs. 5069 Cr
Provisions came at Rs. 3586 Cr vs expectation of Rs. 3961 Cr, YoY Rs. 6844 Cr, QoQ Rs. 3435 Cr
Adj. PAT came at Rs. -1047 Cr vs expectation of Rs. 1044 Cr, YoY Rs. 507 Cr, QoQ Rs. 1061 Cr
PAT is lower due to one off high tax rate of 140%
Gross NPA came at Rs. 66671 Cr vs QoQ (proforma) Rs. 71784 Cr at 8.87% vs QoQ 9.63%
Net NPA came at Rs. 21800 Cr vs QoQ (non-proforma)Rs. 16668 Cr at 3.09% vs QoQ 2.39%
Share is trading at P/E of 8.6x FY22E EPS & 0.8x trailing P/Adj. BV

*Camlin Fine Sciences Ltd.* | *CMP* Rs. 180 | *M Cap* Rs. 2297 Cr | *52 W H/L* 180/36
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
Revenue from Operations came at Rs. 326.6 Cr (9.6% QoQ, 11.5% YoY) vs expectation of Rs. 288.2 Cr, QoQ Rs. 297.9 Cr, YoY Rs. 292.9 Cr
EBIDTA came at Rs. 50.4 Cr (3.6% QoQ, 47.1% YoY) vs expectation of Rs. 49.7 Cr, QoQ Rs. 48.7 Cr, YoY Rs. 34.3 Cr
EBITDA Margin came at 15.4% vs expectation of 17.2%, QoQ 16.3%, YoY 11.7%
Adj. PAT came at Rs. 15.7 Cr vs expectation of Rs. 16.7 Cr, QoQ Rs. 15.4 Cr, YoY Rs. 2.7 Cr
Quarter EPS is Rs. 1.2
Share is trading at P/E of 22.3x FY22E EPS

*Sundaram Finance Ltd. -S* | *CMP* Rs. 2498 | *M Cap* Rs. 27754 Cr | *52 W H/L* 2884/1165
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
NII came at Rs. 482.7 Cr vs expectation of Rs. 536.9 Cr, YoY Rs. 426.3 Cr, QoQ Rs. 537.8 Cr
Other Income came at Rs. 50 Cr, YoY Rs. 6 Cr, QoQ Rs. 2 Cr
PBP came at Rs. 368.9 Cr vs expectation of Rs. 399.9 Cr, YoY Rs. 281.3 Cr, QoQ Rs. 389.8 Cr
Provision came at Rs. 105.5 Cr, YoY Rs. 115.7 Cr, QoQ Rs. 69.7 Cr
PAT came at Rs. 209.2 Cr vs expectation of Rs. 212.4 Cr, YoY Rs. 130.9 Cr, QoQ Rs. 242.2 Cr
PAT was supported by higher other income.
AUM came at Rs. 30882 Cr vs YoY Rs. 29936 Cr, QoQ Rs. 31226 Cr
Gross NPA (%) came at 1.84% vs QoQ 2.79%
Net NPA (%) came at 1.01% vs QoQ 2.09%
Restructured assets totaled Rs.1,307 Cr, about 4.4% of principal outstanding.
Quarter EPS is Rs. 18.8
Share is trading at P/E of 28.6x FY22E EPS & 4.5x trailing P/BV

*Divis Laboratories Ltd.* | *CMP* Rs. 4117 | *M Cap* Rs. 109293 Cr | *52 W H/L* 4205/2090
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 1788.2 Cr (5.1% QoQ, 28.7% YoY) vs expectation of Rs. 1700.5 Cr, QoQ Rs. 1701.4 Cr, YoY Rs. 1389.7 Cr
EBIDTA came at Rs. 716.3 Cr (3.6% QoQ, 61.2% YoY) vs expectation of Rs. 675 Cr, QoQ Rs. 691.2 Cr, YoY Rs. 444.5 Cr
EBITDA Margin came at 40.1% vs expectation of 39.7%, QoQ 40.6%, YoY 32%
Adj. PAT came at Rs. 502 Cr vs expectation of Rs. 469.9 Cr, QoQ Rs. 470.6 Cr, YoY Rs. 388.2 Cr
Quarter EPS is Rs. 18.9
Share is trading at P/E of 45.4x FY22E EPS

*Sudarshan Chemical Industries Ltd.* | *CMP* Rs. 653 | *M Cap* Rs. 4519 Cr | *52 W H/L* 730/356
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
Revenue from Operations came at Rs. 576.5 Cr (13.9% QoQ, 28.4% YoY) vs expectation of Rs. 536.1 Cr, QoQ Rs. 506.4 Cr, YoY Rs. 449.1 Cr
EBIDTA came at Rs. 87.5 Cr (9.8% QoQ, 45.2% YoY) vs expectation of Rs. 86.7 Cr, QoQ Rs. 79.6 Cr, YoY Rs. 60.2 Cr
EBITDA Margin came at 15.2% vs expectation of 16.2%, QoQ 15.7%, YoY 13.4%
Adj. PAT came at Rs. 53.4 Cr vs expectation of Rs. 41.9 Cr, QoQ Rs. 39.2 Cr, YoY Rs. 27.3 Cr
Quarter EPS is Rs. 7.7
Share is trading at P/E of 28.3x FY22E EPS

*Kaveri Seed Company Ltd.* | *CMP* Rs. 750 | *M Cap* Rs. 4523 Cr | *52 W H/L* 817/360
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 64.3 Cr (-45.8% QoQ, 1.8% YoY) vs expectation of Rs. 66.7 Cr, QoQ Rs. 118.5 Cr, YoY Rs. 63.1 Cr
EBIDTA came at Rs. -15.8 Cr (-254.7% QoQ, 24.8% YoY) vs expectation of Rs. -8.6 Cr, QoQ Rs. 10.2 Cr, YoY Rs. -12.7 Cr
EBITDA Margin came at -24.6% vs expectation of -12.8%, QoQ 8.6%, YoY -20.1%
Adj. PAT came at Rs. -17.8 Cr vs expectation of Rs. -6.4 Cr, QoQ Rs. 9.1 Cr, YoY Rs. 7.6 Cr
Quarter EPS is Rs. -2.9
Share is trading at P/E of 12.7x FY22E EPS

*Unichem Laboratories Ltd.* | *CMP* Rs. 329 | *M Cap* Rs. 2316 Cr | *52 W H/L* 361/121
(Nirmal Bang Retail Research)
*Result has declined*
Revenue from Operations came at Rs. 274.1 Cr (-16% QoQ, -14.4% YoY) vs QoQ Rs. 326.3 Cr, YoY Rs. 320.2 Cr
EBIDTA came at Rs. 19 Cr (-36.8% QoQ, 42.6% YoY) vs QoQ Rs. 30.1 Cr, YoY Rs. 13.4 Cr
EBITDA Margin came at 6.9% vs QoQ 9.2%, YoY 4.2%
Adj. PAT came at Rs. -0.4 Cr vs QoQ Rs. 23.6 Cr, YoY Rs. -17.2 Cr
Quarter EPS is Rs. -0.1
Share is trading at P/E of 67.5x TTM EPS

*Advanced Enzyme Technologies Ltd.* | *CMP* Rs. 458 | *M Cap* Rs. 5116 Cr | *52 W H/L* 504/149
(Nirmal Bang Retail Research)
*Result is below expectations*
Revenue from Operations came at Rs. 133.2 Cr (-3.3% QoQ, 20.8% YoY) vs expectation of Rs. 130.2 Cr, QoQ Rs. 137.7 Cr, YoY Rs. 110.3 Cr
EBIDTA came at Rs. 54.9 Cr (-17.3% QoQ, 12.7% YoY) vs expectation of Rs. 62.5 Cr, QoQ Rs. 66.4 Cr, YoY Rs. 48.7 Cr
EBITDA Margin came at 41.2% vs expectation of 48%, QoQ 48.2%, YoY 44.2%
Adj. PAT came at Rs. 31.7 Cr vs expectation of Rs. 40.3 Cr, QoQ Rs. 43.1 Cr, YoY Rs. 31.3 Cr
Quarter EPS is Rs. 2.8
Share is trading at P/E of 27x FY22E EPS

DIVIS LAB Q4 : Net Profit up 29 % to Rs 502 cr (YOY)

Revneue Up 28 % to Rs 1788 cr

Dividend Updates

👉🏻Kovilpatti Lakshmi Roller Flour Mills Ltd board recommends dividend of Rs. 1.50

👉🏻Lakshmi Electrical Control Systems Ltd board recommends dividend of Rs. 3.50

👉🏻NESCO Ltd board recommends final dividend of Rs. 3

👉🏻NCC Limited Board recommends Dividend of Rs. 0.80

👉🏻Dilip Buildcon Limited board recommends dividend of Rs. 1

👉🏻Indian Bank board recommends dividend of Rs. 2 for FY21

👉🏻Action Construction Equipment Ltd Board recommends Dividend of Rs. 0.50

👉🏻Deepak Fertilisers and Petrochemicals Corporation Limited Board approves Dividend of Rs. 7.50

👉🏻Permanent Magnets Ltd board recommends dividend of Rs. 1

👉🏻ITD CEMENTATION Rs. 0.12

👉🏻Rama Phosphates Ltd Board recommends Final Dividend of Rs. 1

👉🏻TV Today Network Ltd Board recommends Final Dividend of Rs. 2.50

👉🏻Mahindra & Mahindra Ltd Board approves dividend of Rs. 8.75

👉🏻Rajapalayam Mills Ltd Board approves dividend of Rs. 0.50

👉🏻Pudumjee Paper Products Ltd Board approves dividend of Rs. 0.30

Itc has announced the board meeting for considering the q4 21 and fy 21 results alongwith dividend on 1st  june 2021.  Grapewine says ITC will announce liberal bonus and tripple de merger on 1st june. De merger of cigg , hotel and fmcg is almost certain only timing was the concern snd now sources says this will be done on 1st june.

BAT has formally submitted a proposal to the Govt of India to buy out the SUUTII stake in ITC.  However wven though cig is not strategic for Govt they have not yet decided to sell this stake either to BAT or LIC but in order to meet the financial challenges  the stake sell will happen in this calender year. Govt already sold Axis. Only ITC and Larsen remained and both will happen in next 3 months as per sources.

Itc set to announce the best quarter nos i. Q. It will beat the estimste by margins. Itc will report  Rs 13770 ( estimate rs 13000 crs ) crs revenue as ag  Rs 12491 crs for qoq and  Rs 11300 yoy. The ibitda will be Rs  6000 crs ( estimates rs 5333 crs )as ag  Rs 5250 crs qoq and  Rs 4919 crs for yoy.
There is considerable amount of pessimishm from ITC and there is no expectation from  the company. However we raise the target of ITC to Rs 300 in june .
HOS

*Dhanlaxmi Bank Ltd.* | *CMP* Rs. 15 | *M Cap* Rs. 382 Cr | *52 W H/L* 18/9
(Nirmal Bang Retail Research)
*Result is declining*
Net Interest Income came at Rs. 71.3 Cr vs YoY Rs. 85.5 Cr, QoQ Rs. 90.7 Cr
Non Interest Income came at Rs. 29.4 Cr vs YoY Rs. 38.1 Cr, QoQ Rs. 48.9 Cr
PBP came at Rs. -4.1 Cr vs YoY Rs. 39.8 Cr, QoQ Rs. 32.2 Cr
Provisions came at Rs. -14.8 Cr vs YoY Rs. 56.9 Cr, QoQ Rs. 20.4 Cr
Adj. PAT came at Rs. 5.3 Cr vs YoY Rs. 2.6 Cr, QoQ Rs. 11.8 Cr
Gross NPA came at Rs. 657.2 Cr vs QoQ (non-proforma) Rs. 395 Cr at 9.23% vs QoQ 5.78%
Net NPA came at Rs. 322.9 Cr vs QoQ (non-proforma) Rs. 72.4 Cr at 4.76% vs QoQ 1.11%
Quarter EPS is Rs. 0.2
Share is trading at P/E of 0x FY22E EPS & 0.7x trailing P/Adj. BV