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BSE Fast Moving Consumer Goods index fell nearly 1 percent dragged by the Godrej Consumer Products, Gujarat Ambuja Exports, Venky’s
ICRA cuts aviation recovery estimates amid third COVID-19 wave
Rating agency ICRA on January 19 cut its estimates for recovery in the domestic aviation market to 52 percent of pre-pandemic levels from 62 percent earlier due to the outbreak of the third wave of COVID-19 in the country. The outbreak of a new wave of COVID-19 due to the emergence of the Omicron variant of COVID-19 will result in a 40-42 percent fall in domestic passenger traffic in January, ICRA said in its report.
“Overall, passenger traffic is expected to be lower by 40-45 per cent in Q4 FY2022 and the traffic recovery for FY2022 is moderated to 52 per cent of pre-Covid level as against our earlier estimates of 62 per cent of pre-Covid level,” Rajeshwar Burla, Group Head of Corporate Ratings at ICRA said in a press release.
Century Textiles Q3
The company December quarter net profit declined 56 percent at Rs 14.1 crore versus Rs 32.1 crore, while revenue was up 38.3 percent versus Rs 1,065 crore versus Rs 770 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 33.1 percent at Rs 100.3 crore and margin was at 9.4 percent versus 9.8 percent, YoY.
Century Textiles and Industries was quoting at Rs 941.55, down Rs 21.80, or 2.26 percent on the BSE.
UK consumer prices rise at fastest pace in almost 30 years
Consumer prices in the UK have risen at the fastest pace in almost 30 years as higher costs for energy, transportation, food and furniture squeezed household incomes.
Inflation measured by the consumer price index accelerated to 5.4 percent in the 12 months through December, the Office for National Statistics said on Wednesday. That is the highest rate since March 1992, when inflation stood at 7.1 percent, and above the 5.1 percent seen a month earlier.
Market at 1 PMBenchmark indices continued to trade negative with Nifty hovering around 17800 and Sensex down 500 points.The Sensex was down 571.23 points or 0.95% at 59527.59, and the Nifty was down 154.80 points or 0.86% at 17783.60.
Buzzing
Shares of Bajaj Auto fell over 3 percent after the company’s weak commentary for motorcycle demand. Bajaj Auto’s management told investors in a post-earnings conference call said that motorcycle sales in January were under pressure on a year-on-year basis.
The company had on Wednesday reported a 22 percent on-year decline in net profit to Rs. 1,214 crore but was above analysts estimate. Similarly, the company’s revenues of Rs. 9,022 crore was also above analysts’ expectations.
Nifty metal index added 1 percent supported by the Hindustan Copper, Jindal Steel, Welspun Corp
UPL & other shareholders in Sinagro announced agreement with Bunge:
UPL and other shareholders in Sinagro Produtos Agropecuarios SA., Brazil, have announced an agreement in which Bunge will acquire a 33% stake in Sinagro to strengthen its grain orientation strategy in Brazil, company said in its press release.
The deal is subject to approval by Brazil’s antitrust body, Conselho Administrativo de Defesa Econômica.
UPL was quoting at Rs 812.75, down Rs 0.10, or 0.01 percent on the BSE.
Fed to raise rates three times this year to tame unruly inflation: Reuters poll
The US Federal Reserve will tighten monetary policy at a much faster pace than thought a month ago to tame persistently high inflation, now viewed by economists polled by Reuters as the biggest threat to the US economy over the coming year.
Encouraged by apparent lower severity of the Omicron variant, governments and central banks around the world are attempting to push their economies back into some version of normality. Fed Chair Jerome Powell said recently he sees an economy that “functions right through these waves of COVID-19”.
KRChoksey view on ICICI Prudential Life Insurance:
ICICI Prudential Life Insurance in Q3FY22 has shown a decent performance. The company is focused on the Non- Linked/ Annuity segment which has the potential to deliver higher margins and help to attain its objective of doubling its VNB.
The company is witnessing improvement in market share in every quarter better than its peers and is well-positioned to grab the upcoming opportunity in structural long-term story.
We expect GWP to grow at CAGR 15% over FY21-24E and margins at ~28.8% on a diversified mix with increased contribution from the high-margin product segment.
We assign a 2.5x P/EV on FY24E EVPS of Rs 304.2 and a VNB multiple of 27.8x to arrive at a weighted average target price (unchanged) of Rs 772 per share (50:50 weights on the P/EV and appraisal value methodology); indicating a 34.4% upside from the CMP. Accordingly, we re-iterate our buy rating on the shares of ICICI Prudential Life Insurance.
