*Breaking News:*
*Piyush Goyal Appointed As Leader Of Rajya Sabha*
Expect path breaking reform bills to be tabled in both LS and RS as BJP inches closer to majority in Rajya Sabha !
*Positive news for markets.*
*Piyush Goyal Appointed As Leader Of Rajya Sabha*
Expect path breaking reform bills to be tabled in both LS and RS as BJP inches closer to majority in Rajya Sabha !
*Positive news for markets.*
Despite decline in crude oil inventories prices fell due to Bipartisan group of senators in the U.S. introduced bill aim to increase ethanol blending.
News in negative for crude oil but positive for Sugar Sector.
Lower crude oil prices are also positive for rupee and domestic equities.
News in negative for crude oil but positive for Sugar Sector.
Lower crude oil prices are also positive for rupee and domestic equities.
*Good Morning*
India Increases Inflation-Linked Allowance for Govt Employees
Approves plan to give subsidy to Indian shipping companies
India Offers to Work Closely With Oil Producers to Calm Market
Infosys Earnings Trail Estimates as Labor Costs Hurt Margins
Co raises revenue growth guidance for the year to 14%-16%
Mastercard Third U.S. Firm Punished for Flouting India Data Rule
Barred from adding new customers in India from July 22
ICICI Prudential Fund Raises Record $1.3 Billion in New Offer
Billionaire Adani to Control Mumbai Airport in Rebound Bet
India Top Court Upholds Regulator’s Powers in Franklin Case
India’s Sugar Output Seen Steady at 31M Tons in 2021-22: ISMA
India Cumulative Monsoon Rainfall 5% Below Normal as of July 14
BRICS Q3 CPI Forecast Steady in Past Week; India Up to 5.5%
Global Funds Sell Net INR13B of India Stocks on Wednesday: NSE
Domestic funds Buy net 13.4b rupees of stocks
Foreign Investors Buy Net INR699.1M of India Equities on July 13
Foreigners Buy Net INR2.01B Indian Equity Derivatives Wednesday
India’s Sensex Index Rises to Near Record, Led Higher by Infosys
India Foreign Minister Jaishankar Holds bilateral meeting with Chinese Counterpart: PTI
Piyush Goyal appointed Leader of House in upper house of parliament: PTI
5pm: India June trade balance, est. -$9.4b, prior -$6.28b
India June Exports YoY, no est., prior 69.3%
India June Imports YoY, no est., prior 73.6%
Adani Ports (ADSEZ): Says forms a unit Adani Gangavaram Port
Amara Raja Batteries (AMRJ): Says court extends interim suspension of closer order of Andhra Pollution Control
Axis Bank (AXSB): Says information in Madanlal Dhariya’s tweet factually incorrect; Tweet posted to damage the reputation of bank
Dilip Buildcon (DBL): Reports accident at Andhra Pradesh project site; says casualties, injuries reported
Infosys (INFO): 1Q net income +23% y/y to 52b rupees, misses est. 53.78b; revenue +18% y/y to 279b
JSW Energy (JSW): Plans to spend $10 billion on clean power by 2030
L&T Technology (LTTS): 1Q net income +85% y/y to 2.16b rupees, beats est. 1.98b; revenue +18% y/y to 15.2b
Lupin (LPC): Vertex Sues Lupin to Block Copies of Cystic Fibrosis Drug
Marico (MRCO): To make strategic investment in Apcos Naturals, to take a 60% stake
Sterlite Technologies (SOTL): To consider raising funds via shares, securities on July 22
India Increases Inflation-Linked Allowance for Govt Employees
Approves plan to give subsidy to Indian shipping companies
India Offers to Work Closely With Oil Producers to Calm Market
Infosys Earnings Trail Estimates as Labor Costs Hurt Margins
Co raises revenue growth guidance for the year to 14%-16%
Mastercard Third U.S. Firm Punished for Flouting India Data Rule
Barred from adding new customers in India from July 22
ICICI Prudential Fund Raises Record $1.3 Billion in New Offer
Billionaire Adani to Control Mumbai Airport in Rebound Bet
India Top Court Upholds Regulator’s Powers in Franklin Case
India’s Sugar Output Seen Steady at 31M Tons in 2021-22: ISMA
India Cumulative Monsoon Rainfall 5% Below Normal as of July 14
BRICS Q3 CPI Forecast Steady in Past Week; India Up to 5.5%
Global Funds Sell Net INR13B of India Stocks on Wednesday: NSE
Domestic funds Buy net 13.4b rupees of stocks
Foreign Investors Buy Net INR699.1M of India Equities on July 13
Foreigners Buy Net INR2.01B Indian Equity Derivatives Wednesday
India’s Sensex Index Rises to Near Record, Led Higher by Infosys
India Foreign Minister Jaishankar Holds bilateral meeting with Chinese Counterpart: PTI
Piyush Goyal appointed Leader of House in upper house of parliament: PTI
5pm: India June trade balance, est. -$9.4b, prior -$6.28b
India June Exports YoY, no est., prior 69.3%
India June Imports YoY, no est., prior 73.6%
Adani Ports (ADSEZ): Says forms a unit Adani Gangavaram Port
Amara Raja Batteries (AMRJ): Says court extends interim suspension of closer order of Andhra Pollution Control
Axis Bank (AXSB): Says information in Madanlal Dhariya’s tweet factually incorrect; Tweet posted to damage the reputation of bank
Dilip Buildcon (DBL): Reports accident at Andhra Pradesh project site; says casualties, injuries reported
Infosys (INFO): 1Q net income +23% y/y to 52b rupees, misses est. 53.78b; revenue +18% y/y to 279b
JSW Energy (JSW): Plans to spend $10 billion on clean power by 2030
L&T Technology (LTTS): 1Q net income +85% y/y to 2.16b rupees, beats est. 1.98b; revenue +18% y/y to 15.2b
Lupin (LPC): Vertex Sues Lupin to Block Copies of Cystic Fibrosis Drug
Marico (MRCO): To make strategic investment in Apcos Naturals, to take a 60% stake
Sterlite Technologies (SOTL): To consider raising funds via shares, securities on July 22
Initiating Coverage (Nirmal Bang IE)
Jamna Auto Industries
BUY
CMP: Rs87
Target Price: Rs106
Upside: 22%
Play on multi-year CV cycle; further re-rating potential
We initiate coverage on Jamna Auto Industries (JAI) with a Buy rating and a target price (TP) of Rs106. We have assigned 22x FY23E EPS, as we expect it to report a strong 49% earnings CAGR over FY21-FY24E, driven by: (1) A multi-year upcycle in the domestic Commercial Vehicles (CV) industry, which will directly benefit JAI due to its leadership position in the OEM market (2) Rising share of value-added products due to a structural shift from conventional springs to parabolic springs amid continued modernization (3) Opportunity to increase content per vehicle on the back of new launches (4) Focused efforts to increase the share of the replacement market to further diversify its sales mix. JAI, the largest leaf spring manufacturer in India, is an ideal play on the ongoing upturn in the CV cycle given its ~68% domestic OEM market share. Higher operating leverage going forward (as the utilization level accelerates) and an improved product mix (driven by value-added products & aftermarket revenues) will result in ~290bps margin expansion, driving a strong earnings growth over FY21-24E. We expect limited capex and strong FCF generation over the next 2-3 years. JAI has turned net debt free in FY21. Strong margin expansion and higher asset turns will be the key drivers of improvement in RoE/RoCE, which we expect to reach 31%/40% by FY24E. We assign Buy rating on JAI with a TP of Rs106 (22x FY23E EPS), with an upside of 22% from CMP.
Jamna Auto Industries
BUY
CMP: Rs87
Target Price: Rs106
Upside: 22%
Play on multi-year CV cycle; further re-rating potential
We initiate coverage on Jamna Auto Industries (JAI) with a Buy rating and a target price (TP) of Rs106. We have assigned 22x FY23E EPS, as we expect it to report a strong 49% earnings CAGR over FY21-FY24E, driven by: (1) A multi-year upcycle in the domestic Commercial Vehicles (CV) industry, which will directly benefit JAI due to its leadership position in the OEM market (2) Rising share of value-added products due to a structural shift from conventional springs to parabolic springs amid continued modernization (3) Opportunity to increase content per vehicle on the back of new launches (4) Focused efforts to increase the share of the replacement market to further diversify its sales mix. JAI, the largest leaf spring manufacturer in India, is an ideal play on the ongoing upturn in the CV cycle given its ~68% domestic OEM market share. Higher operating leverage going forward (as the utilization level accelerates) and an improved product mix (driven by value-added products & aftermarket revenues) will result in ~290bps margin expansion, driving a strong earnings growth over FY21-24E. We expect limited capex and strong FCF generation over the next 2-3 years. JAI has turned net debt free in FY21. Strong margin expansion and higher asset turns will be the key drivers of improvement in RoE/RoCE, which we expect to reach 31%/40% by FY24E. We assign Buy rating on JAI with a TP of Rs106 (22x FY23E EPS), with an upside of 22% from CMP.