HDFC Bank Q2 Business UpdateThe Bank’s advances aggregated to approximately Rs 14,800 billion as of September 30, 2022, a growth of around 23.5% over Rs 11,988 billion as of September 30, 2021 and a growth of around 6.1% over Rs 13,951 billion as of June 30, 2022.The Bank’s deposits aggregated to approximately Rs 16,735 billion as of September 30, 2022, a growth of around 19.0% over Rs 14,063 billion as of September 30, 2021 and a growth of around 4.3% over Rs 16,048 billion as of June 30, 2022.
L&T Construction wins orders
The Power Transmission & Distribution Business of L&T Construction has bagged multiple orders in India and abroad.
The Business has secured an order to establish a 765kV Transmission Line in Gujarat. The ‘available power transfer capacity’ from the inter-state transmission system will increase thanks to this network expansion
An order has been received to upgrade the distribution system in a state in North-East India. The scope of this project includes the strengthening of medium and low voltage distribution networks.
The Business has also won repeat orders to build new 132kV substations in the United Arab Emirates.
Further, an order has been secured to establish a 380kV overhead line in Saudi Arabia that will help strengthen the evacuation infrastructure and improve the reliability of the grid in the Western region of the Kingdom.
As the distribution system is being strengthened in the Dhaka and Narayanganj agglomerations of Bangladesh, the Business has bagged orders to establish two new 132kV and 33kV substations in these regions.
Larsen & Toubro was quoting at Rs 1,871.20, up Rs 51.90, or 2.85 percent on the BSE.
Natco Pharma launched two Chlorantraniliprole (CTPR) pesticide formulated combination products under the brand names:
a. NATVOL: Chlorantraniliprole 8.8% + Thiamethoxam 17.5% SC; and
b. NATLIGO: Chlorantraniliprole 9.3% + Lambda-cyhalothrin 4.6% ZC
Both products are broad-spectrum, foliar insecticides used across wide range of crops. Syngenta markets these combination products under brand names Voliam Flexi and Ampligo. We estimate the market size of the CTPR combination products to be around Rs 800 crore in India, said Natco Pharma.
Natco Pharma was quoting at Rs 619.40, up Rs 6.90, or 1.13 percent on the BSE.
KEC International bags orders worth Rs 1,407 crore across segmentsKEC International has secured new orders of Rs 1,407 crore across segments. The transmission and distribution segment received orders from Middle East, while the railways business has bagged an order for signaling & telecommunication works. Its year-to-date order intake now stands at Rs 8,400 crore.
Motilal Oswal View on Marico
After achieving a sales CAGR of ~6% over FY15-20, the sales momentum has been better now than that in the past, with double-digit sales CAGR expected over FY20-24. This is likely to sustain beyond FY24 as well, led by: a) the ongoing revenue growth momentum in each of MRCO’s core segments, b) significantly higher growth rates as well as targets in the Foods portfolio, and c) the INR4.5-5b targeted from its ‘digital first’ range of products.
The much-needed diversification can lead to higher multiples than that in the past. Valuations at 52x/42.3x FY23E/FY24E EPS appear inexpensive, given the potential of strong earnings growth (v/s earlier) and a healthy RoE in the late 30s. We maintain our Buy rating on the stock with a Target Price of Rs 620.
Gail India appoints Sanjay Kaushal as Chief Financial Officer
Shri Sandeep Kumar Gupta, Director (Finance) has ceased to be Director (Finance) of the Company w.e.f. 3 October 2022 consequent upon his appointment as Chairman & Managing Director (CMD) on the Board of GAIL (India) Limited.
It is further informed that, Shri Sanjay Kaushal has been appointed as Chief Financial Officer (CFO) of the Company w.e.f. 3 October 2022.
GAIL India was quoting at Rs 85.95, up Rs 0.70, or 0.82 percent on the BSE.
Easy Trip to consider bonus shares, stock split on Oct 10A meeting of the Board of Directors of the company is scheduled to be held on October 10, 2022, for considering the proposal for increase in Authorised Share Capital, issue of Bonus Shares and/or SubDivision/Split of Share.
BSE Capital Goods index gained 2 percent supported by the Schaeffler India, Praj Industries, Hindustan Aeronautics
Prabhudas Lilladher View on State Bank of India
We recently interacted with the management to understand 1) credit outlook, 2) changes in credit appraisal 3) asset quality view and 4) opex trajectory. The bank is optimistic on loan growth, as improving economic activity and tight liquidity may support its credit offtake.
New proposals and unavailed limits within corporate total to Rs 6trn, while retail momentum might continue. With cash flows normalizing for SMEs, the ECLGS/OTR pools are also performing well.
Underwriting has strengthened with induction of non-sales personnel in credit appraisal and robust credit research across 36 sectors.
Asset quality may remain under control and target is to keep credit costs below 1%. While we slightly tweak our estimates, we expect a core PAT CAGR of 20% over FY22-25E. Retaining the multiple at 1.4x, we roll forward to core Sep’24 ABV, raising SOTP based Target Price from Rs 620 to Rs 650. Maintain ‘BUY’.
Market at 10 AMIndian benchmark indices were trading at day’s high level with Nifty above 17200.The Sensex was up 1,236.32 points or 2.18% at 58025.13, and the Nifty was up 358.40 points or 2.12% at 17245.70. About 2357 shares have advanced, 513 shares declined, and 87 shares are unchanged.
Nifty Information Technology index rose 2 percent led by the L&T Technology Services, Coforge, TCS
Oktoberfest: 10-year trend shows market likely to see buying this month
Analysts say the Indian equity benchmarks, which have outperformed their global peers, so far, this year will likely continue the trend due to consistent domestic flows and better economic performance