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.

GM jsk stock in news dodladairy,Marico,sequent,tinplate,lnttech,adanientp,caplin,cyient,sci,BEML,Westlife,arvind,sutlez,welspunndia,trident,gokuldas,NMDC,hdfcltd,lntfin,hdfcbk. Negative stocks craftsman. Nifty range 15725-15925.

#PlasticBan: Industry to take a hit of Rs 150 bn; 300,000 to lose jobs (link: https://mybs.in/2VnjBD9) mybs.in/2VnjBD9

Results Today: Angel Broking, Cyient, LTI, Tata Elxsi, Tata Steel LLP, Wipro

Infosys ADR ends up 1.6% vs normal share close of 2.1% yesterday
Revenue growth strong while margins and deal wins disappoint
Most brokerages cut EPS estimates marginally for Infosys

LTTS: Strong performance with all round beat and improved outlook
NB initiates coverage on Jamna Auto with 106 target
BOB Caital Markets: Initiate buy on Affle, India Mart and Sell on JD
Deals in media: RIL - JD, Barings - Hinduja Global
In Ban: Granules, Ibulls Housing, Idea, Nalco, NMDC, PNB, SAIL, Sun TV

PREVIEWS
L&T Infotech expected to report results on July 15. FIRST QUARTER
Net income estimate 4.82 billion rupees (range 4.50 billion rupees to 5.20 billion rupees) (Bloomberg Consensus)
Revenue estimate 34.33 billion rupees (range 34.03 billion rupees to 34.90 billion rupees)
Ebitda estimate 6.56 billion rupees (range 6.35 billion rupees to 6.79 billion rupees)

Cyient expected to report results on July 15. FIRST QUARTER
Net income estimate 1.08 billion rupees (range 1.02 billion rupees to 1.18 billion rupees) (Bloomberg Consensus)
Revenue estimate 10.62 billion rupees (range 10.51 billion rupees to 10.79 billion rupees)
Ebitda estimate 1.86 billion rupees (range 1.72 billion rupees to 2.26 billion rupees)

Wipro expected to report results on July 15. FIRST QUARTER
Net income estimate 28.28 billion rupees (range 26 billion rupees to 30.76 billion rupees) (Bloomberg Consensus)
Revenue estimate 176.30 billion rupees (range 168.08 billion rupees to 180.79 billion rupees)
Ebitda estimate 40.82 billion rupees (range 39.39 billion rupees to 42.28 billion rupees)

*SGX Nifty -13 pts (15845) from last trade 15858 ,*


Nikkei -240 pts ,
Hangseng +14 pts ,
Now @6.56am .


Dow +44.44 pts ,Nsdq -32.70 pts, S&P
+5.79 pts, Bovespa +238 pts , Ftse -33 pts  , Dax -0.66 pts , Cac -0.09 pts , Crude @ $72.82 brl (-0.31), Brent @ $74.76 brl (-0.00) , Gold @ 1827.10 (+2.10), Silver @ $26.30 (+0.02), Euro @ $1.1835, JPY @ $110.00,  INR @ 74.465







*Today's Corporate Action*
*15th  Jul Ex Date*



APOLLOTYRE
Final Dividend - Rs. - 3.5000
ATUL
Dividend - Rs. - 20.0000
BHARATFORG
Final Dividend - Rs. - 2.0000
BIMETAL
Dividend - Rs. - 8.0000
BSOFT
Final Dividend - Rs. - 2.5000
CHEVIOT
Special Dividend - Rs. - 175.0000
COROMANDEL
Final Dividend - Rs. - 6.0000
DHANUKA
Dividend - Rs. - 2.0000
ESCORTS
Final Dividend - Rs. - 5.0000
ESCORTS
Special Dividend - Rs. - 2.5000
IGPL
Final Dividend - Rs. - 7.5000
INFRATRUST
Income Distribution (InvIT)
KIRLFER
Final Dividend - Rs. - 3.0000
M&M
Dividend - Rs. - 8.7500
NEWGEN
Dividend - Rs. - 3.5000
NUCLEUS
Final Dividend - Rs. - 6.0000
PRAVEG
Final Dividend - Rs. - 2.0000
ROUTE
Final Dividend - Rs. - 2.0000
SASKEN
Final Dividend - Rs. - 15.0000
SMCGLOBAL
Final Dividend - Rs. - 0.8000
SURYAAMBA
Final Dividend - Rs. - 0.4000
TASTYBIT
Final Dividend - Rs. - 2.0000
TCS
Interim Dividend - Rs. - 7.0000





*Today's Key Results/Board Meetings*
*15-Jul-21*




ADHBHUTIN
Audited Results
ANGELBRKG
Interim Dividend;Quarterly Results
AVANTEL
Quarterly Results
BIRLAMONEY
Quarterly Results
CYIENT
Quarterly Results
GANESHHOUC
Quarterly Results
GEL
A.G.M.;General
HATHWAYB
Quarterly Results
ITHL
Quarterly Results
LORDSCHLO
Quarterly Results
LTI
Interim Dividend;Quarterly Results
MAHALXSE
A.G.M.;General
MANGTIMBER
Quarterly Results
NEWINFRA
Audited Results
OKPLA
Audited Results
ONWARDTEC
Quarterly Results
RAMAPPR-B
Audited Results
RASSIREF
Audited Results
ROLLT
Audited Results;Quarterly Results
SIPL
A.G.M.;General
STYLAMIND
Quarterly Results
TATAELXSI
Audited Results;Quarterly Results
TATASTLLP
Audited Results;Quarterly Results
WIPRO
Quarterly Results




*Stock under F&O ban on NSE*
*15-Jul-21*




1GRANULES

2IBULHSGFIN

3IDEA

4NATIONALUM

5NMDC

6PNB

7SAIL

8SUNTV

Who’s Meeting Whom

Somany Home Innovation: To meet MK Ventures on July 15.

Deepak Fertilisers and Petrochemicals Corp: To meet Nippon India Mutual Fund and Fidelity International Investment Management on July 15.

*Business News Headlines* 🇮🇳

*Economic Times*

Ø Adani Group ropes in former Vedanta exec Satish Kumar for copper business
Ø Maruti plans to invest up to Rs 18,000 crore for 10 lakh unit plant
Ø Bank of Maharashtra fixes floor price at Rs 24.89 per share for Rs 2,000 cr QIP
Ø Market capitalisation of BSE-listed firms touches record high; crosses Rs 233 lakh crore
Ø Sustained deal momentum, revised guidance hint at stronger FY22 show by Infosys
Ø Zomato IPO sails through on day 1, retail investors quota subscribed 2.65 times
Ø Market Movers: High margin plan lifts ITC as Zomato hype drives Info Edge
Ø ITC’s CMD Sanjiv Puri sees 47% jump in pay in pandemic year
Ø IPO financing market flush as NBFCs raise record Rs 1.2 lakh crore
Ø Mindtree's margin story remains intact: CEO
Ø Oil prices drop after Saudi-UAE reach output compromise

*Business Standard*

Ø Banks may encounter legal hurdles in invoking personal guarantees
Ø Zomato could get added to MSCI, FTSE indices by 2021-end: Analyst
Ø MFs go on a shopping spree in June as market hits new highs
Ø Tata Sons hires consultants for Air India due diligence
Ø Big banks expand share in corporate lending amid pandemic stress.
Ø ITC diversifies tobacco into nicotine and derivatives for US vaping market
Ø Rakesh Jhunjhunwala, wife settle Aptech insider trading case with Sebi
Ø Flex-fuel engines: Roadmap, benefits and challenges for Indian auto sector
Ø JSW Energy to seek shareholder approval to raise up to Rs 5,000 crore
Ø India's June WPI inflation eases to 12.07% despite rise in fuel prices

*Financial Express*

Ø Cabinet okays scheme to provide Rs 1,624 cr over 5 years as subsidy to Indian shipping companies
Ø CCEA clears realignment of Department of Animal Husbandry & Dairying schemes
Ø Modi Govt increases Dearness Allowance for Central Government Employees, DR for pensioners
Ø Indian EV industry welcomes incentives under new Maharashtra EV Policy 2021
Ø Rs 880 crore hidden money found: I-T department detects concealed income after survey on Quess Corp
Ø S&P retains India’s rating, says recovery to gain pace in H2
Ø 42% NBFCs expect over 15 pc growth in AUM in FY2022: Icra survey
Ø IL&FS expects to recover Rs 58,000 cr by March 2022
Ø Reliance Power gets shareholders' nod to issue of shares, warrants worth Rs 1,325 cr to RInfra
Ø Burger King India launches a campaign for its new Stunner Menu

*Mint*

Ø Puducherry hikes liquor prices by 20% from tomorrow
Ø Govt plans to introduce 17 bills in Monsoon session
Ø India's gems and jewellery exports spurt by 92.37% to ₹20,851 crore in June
Ø NMDC board approves demerger of NMDC Steel.
Ø Infosys beats TCS by a mile in Q1, but margin pressure rears its head
Ø RBI bars Mastercard from issuing new debit, credit cards in India from 22 July
Ø India IT spending expected to grow at 8% to $92.7 bn in 2021: Gartner report
Ø Power demand in India expected to grow 6% in FY22: Icra.
Ø Maharashtra government rolls out new EV policy.
Ø ITC to enter boutique lifestyle hotel segment with new brand Storii
Ø Indian aviation sector to touch 80% of pre-covid capacity in Q3: Morgan Stanley

AMCs who bought Zomato in the IPO

SBI, Axis, ABSL, Kotak, Nippon, Mirae, UTI, Motilal Oswal, Franklin, HDFC, ICICI, IIFL, IDF , Sundarum, Tata, Edelweiss, BNP, HSBC, Principal & Invesco

Stocks To Watch

Tata Consultancy Services: Announced plans to expand its operations in Arizona, by investing over $300 million by 2026 and hiring more than 220 employees by 2023.

KRBL: Informed that operations at its unit situated at Dhuri, Sangrur, Punjab will resume as normal as per Supreme Court’s July 13 order.

Apar Industries: Released its annual report. The company ended FY21 with revenues 14% lower at Rs 6,388 crore. Profit after tax, however, grew nearly 20% to Rs 161 crore. Chairman Kushal Desai said that despite multiple COVID-19 waves hitting plant operations, logistics and both domestic and global demand, the company’s return on equity for FY21 was up 106 bps year-on-year to 12.5%, driven by 42% reduction in finance cost.

Craftsman Automation: Company has terminated joint venture agreements signed in 2007 with Mitsubishi Corporation, Tokyo, MC Machinery Systems, USA, Mitsubishi Corporation India and Mitsubishi Corporation Technos, Japan. The joint venture was for selling electric discharge machines and laser cutting machines. Craftsman said the termination was to focus on the increasing needs of the primary business and it won’t have any impact on the company.

Rossari Biotech ICRA has assigned a long-term rating of AA- (stable) to its fund-based working capital facilities and unallocated limit facilities. A short-term rating of A1+ has been assigned to its non-fund based limit facilities.

SeQuent Scientific: Received EU’s good manufacturing practices approval for its tablets dosage manufacturing line in Turkey.

Amara Raja Batteries: High Court of Andhra Pradesh, at a hearing on July 12, 2021, has extended the interim suspension of closure orders from Andhra Pradesh Pollution Control Board for the company’s plants situated at Karakambadi, Tirupati and Nunegundlapalli Village, Chittoor District, Andhra Pradesh.

Tata Communications: Appointed Krishnakumar Natarajan as additional director (Independent) to the board for a term of five years.

Mrs Bectors Food Specialities: Released its annual report. The company said it recorded 16% growth in revenues and a 52% and 138% growth in Ebitda and profit after tax, respectively, for the year. It said this was a factor of both increased product volumes as well as strategic price realisation enhancements. It said the company focused on starting its cookies line at the Rajpura, Punjab factory in the first quarter with a capacity of 300 MT per month. It is also expanding a bakery line and bread line at our Greater Noida, Uttar Pradesh, facility which is due to start commercial operations in the third quarter of the current financial year.

Marico: Announced a strategic investment in Apcos Naturals Private Limited with an acquisition of 60% equity stake for an undisclosed consideration. This equity stake will be acquired over a period of two years.

Spandana Sphoorty Financial: Crisil assigned the company’s proposed long term bank loan facility of Rs 3,500 crore a rating of A (stable).

Pidilite: Released its annual report. The company's net sales reported flat growth, excluding Pidilite Adhesives which declined by 2.4%. Its Ebitda grew by 6.5% and profit after tax grew flat. The company said there remains an uncertainty around the duration of the pandemic and the resultant impact on consumer sentiment and demand. Input inflation may continue during the current year as well and it said it is taking necessary steps to mitigate the impact of inflation through appropriate pricing and cost control measures. It added that the slower growth of the Indian economy and stress in sectors, such as construction, could impact the performance of the company and that overseas subsidiaries, by virtue of their relatively smaller size, remain vulnerable to the political and economic uncertainties of their respective countries.

World Markets

Dow + 44
Nasdaq - 33
Dax - 1
Nikkei - 239
Hangseng + 88
Sgxnifty + 16 (15874)
Brent Crude 74.56
Dow Fut - 63
Dollar Index 92.37

Infosys ADR ends up 1.6% vs normal share close of 2.1% yesterday
Revenue growth strong while margins and deal wins disappoint
Most brokerages cut EPS estimates marginally for Infosys

JPM Infosys
On the front foot - strong commentary and guidance raise; limited scope for near
term margin expansion
Infosys delivered a mixed 1Q22 print with a strong revenue beat, misses on
margins/EPS and solid deal wins. Strongest 1Q QQ and YY organic growth in a decade
and a strong demand environment has inspired an increase in FY22 CC revenue growth
guidance by 200bps to 14-16%. FY22 margin guidance has been retained at 22-24% as
company sees incremental headwinds from retention, back filling attrition and
subcontractors, and while near term levers from pyramid optimization and automation
appear limited. We raise FY22-24 revenues by 1-2% but cut margins by 16-74bps over
FY22-24 leading to 0-3% cut to EPS and 1% cut to PT. Infosys remains our top pick in
the sector, as it benefits from growth acceleration and share gains while maintaining
margins.

Trading Tweaks

Record Date Final Dividend: Rane Engine Valve, Laxmi Organic Industries, Moksh Ornaments

Ex-Date Final Dividend: IGL Petrochemicals, APL Apollo Tubes, Dhanuka Agritech, Atul, Nucleus Software Exports, Mahindra & Mahindra, Bharat Forge, Cosmo Films, Coromandel International, Escorts, Tata Consultancy Services

Price Band Revised From 10% To 5%: Vascon Engineering

Price Band Revised From 20% to 10%: Aditya Birla Money, Goodluck India, Vardhman Holdings

Move Into Short-Term ASM Framework: Edelweiss Financial Services, Rane Brake Lining, Dolat Investments, Prime Securities

Move Into Long-Term ASM Framework: Expleo Solutions, Vardhman Holdings

Move Out Of Short-Term ASM Framework: Crisil, Heritage Foods, Apex Frozen Foods, Privi Speciality Chemicals, Univastu India

MPHASIS: MUTUAL FUNDS INCREASED 1.30% STAKE IN Q1

*Hatsun Agro Product Ltd.* | *CMP* Rs. 996 | *M Cap* Rs. 21474 Cr | *52 W H/L* 996/456
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 1544.7 Cr (-1.5% QoQ, 20.7% YoY) vs QoQ Rs. 1568.9 Cr, YoY Rs. 1279.3 Cr
EBIDTA came at Rs. 178 Cr (-5.9% QoQ, -5.8% YoY) vs QoQ Rs. 189.2 Cr, YoY Rs. 189 Cr
EBITDA Margin came at 11.5% vs QoQ 12.1%, YoY 14.8%
Adj. PAT came at Rs. 58.3 Cr vs QoQ Rs. 57.1 Cr, YoY Rs. 56.1 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 86.4x TTM EPS

Money Market Update

The rupee ended at 74.58 against the U.S. Dollar on Wednesday as compared to Tuesday’s closing of 74.49.

Pledge Share Details

Embassy Office Parks REIT: Promoter Embassy Property Developments Pvt. Ltd. revoked a pledge of 3.88 crore shares on March 30.

Gayatri Projects: Promoter T Indira Reddy invoked a pledge of 32.5 lakh shares on July 8.

Steel Strips Wheels: Promoter Dheeraj Garg revoked a pledge of 1.33 lakh shares on July 13.

Insider Trades

Transpek Industry: Promoter Kantisen Chaturbhurj Shroff sold 40,690 shares on July 8. Promoter Dipesh Kantisen Shroff acquired 81,380 shares on July 8.

DCW: Promoter Vibha Swarup acquired 65,750 shares between March 17 and April 16. Promoter Divyaa Kummar acquired 43,250 shares on May 10

J.B.CHEMICALS & PHARMACEUTICALS: HDFC SMALL CAP FUND SOLD 1.04% STAKE || INSURANCE COMPANIES KOTAK MAHINDRA LIFE INSURANCE COMPANY LTD SOLD 1.08% STAKE

CENTURY TEXTILES & INDUSTRIES: MUTUAL FUNDS INCREASED 1.20% STAKE ||ADITYA BIRLA SUN LIFE TRUSTEE PRIVATE LIMITED A/C ADITYA BIRLA SUN LIFE FLEXI CAP FUND INCREASED 1.30% STAKE ||
FOREIGN PORTFOLIO INVESTORS VANDERBILT UNIVERSITY - ATYANT CAPITAL MANAGEMENT LIMITED REDUCE 0.20% STAKE || INDIVIDUAL INVESTOR REDUCE 0.20% STAKE IN Q1