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Motilal Oswal view on Cyient:
“We continue to see strong rebound in ER&D spending led by increased outsourcing and larger deal sizes. The management’s strategy to leverage these spends, led by a refreshed GTM strategy and increased focus on large deal wins should bode well for growth performance.
“We expect the company to deliver 13% dollar revenue compound annual growth rate (CAGR) over FY22-24.
“Although near-term growth may be soft, a better margin will compensate for the growth. We expect 11% profit after tax CAGR over FY22-24.
“We maintain our buy rating on attractive valuations. Our target multiple of 17x FY24 EPS implies a target price of Rs 1,000 per share, implying an upside of 20%.”
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Tata Communications Q4FY22 profit up 23.2% YoY to Rs 369 crore
Tata Communications profit in Q4FY22 grew by 23.2 percent YoY to Rs 369 crore on higher other income.
Revenue grew by 4.6 percent to Rs 4,263 crore in same period driven by data services segment, which contributed the maximum to revenue.
The board has recommended a dividend of Rs 20.7 per share for the year, as a result of the company reporting strong profitability.
Tata Communications was quoting at Rs 1,264.40, down Rs 17.00, or 1.33 percent on the BSE.
Asian Markets Securities view on Cyient
“We expect revenue to grow 12.5% in FY23 and similar growth in FY24 and services is expected to grow 13% and 12% while DLM is expected to grow 8% and 14% respectively.
“We have revised down our margins assumptions and now build in margins of 13.3% and 13.8% for FY23 and FY24.
“Maintain buy with a revised target price of Rs 1,030, valuing the stock at 18xFY24 EPS.”
Cyient was quoting at Rs 883.45, up Rs 52.30, or 6.29 percent on the BSE.
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Prabhudas Lilladher view on Nestle India
We expect near term margin pressure to sustain given inflation in Coffee, Palm oil, Milk and SMP. We factor in EBIDTA margin decline of 140bps in CY22 (40bps over CY21-23) as scale efficiencies, mix and pricing actions won’t be able to neutralize 10-year high inflation.
We estimate 12.4% PAT CAGR over CY21-23.
We expect back ended returns given near term margin pressures and rich valuations of 62.3x CY23 EPS. We maintain Accumulate with a target price of Rs 19,426 on DCF basis (Rs 19,626 earlier).
Nestle India was quoting at Rs 17,953.75, down Rs 252.05, or 1.38 percent on the BSE.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
This excessively volatile market without any clear direction is being influenced on a daily basis by two factors- one, external and two, internal. The external factor is the erratic movement in the mother market US where the S&P 500 and Nasdaq go up by around 2% one day and go down by around 2% the next day.
The internal factor influencing the market is the see-saw tussle between FIIs and DIIs. Both these external and internal factors are erratic now and that’s why the market is volatile without any direction.
Yesterday’s comment by the Fed chief that a 50 bp rate hike is possible in May and that control of inflation has become absolutely essential has pushed the 10-year bond yield above 2.9% and consequently impacted equity markets. But this impact, too, is likely to be temporary since the market has already discounted this known hawkishness of the Fed.
What investors should do in this time of high uncertainty is to buy high quality stocks on steep market corrections and wait with patience.
HDFC Life Insurance Company board to consider fund raising
A meeting of board of directors of HDFC Life Insurance Company scheduled to be held on April 26, 2022. At the said meeting, the Board to consider and approve the audited standalone and consolidated financial results for the quarter and year ended March 31, 2022, and recommendation of final dividend, if any, to the shareholders for FY 2021-22.
The board also consider raising of funds by way of issuance of Non-Convertible debentures in the nature of subordinated debt as per IRDAI (Other Forms of Capital) Regulations, 2015. These funds are proposed to be raised to further strengthen the cash reserves of the Company post cash payout as part-consideration for acquisition of Exide Life Insurance Company Limited, company said in its release.
HDFC Life Insurance Company was quoting at Rs 559.35, down Rs 10.70, or 1.88 percent on the BSE.