Prabhudas Lilladher View on Titan Company
We are increasing FY23/24 EPS estimates by 16.6% and 13.4% following strong performance by company in 1Q23, first normal 1Q after FY20.
The company’s growth strategy is playing out in Jewellery with 1) aggressive store expansion (19 in 1Q) 2) Increased focus on wedding segment 3) focus on lighter Jewellery and 4) designs and campaigns to cater to regional tastes and preferences.
Eyewear business is gaining scale and growth prospects in this large but highly organized segment look encouraging. Watches and wearables growth will be led by significant revamp of WOT distribution and emerging wearables segment.
We believe new businesses like Wearables, Taneria (Distribution and product range led), Carat lane will continue to gain traction.
We estimate 1Q sales and PAT growth of 166% and 1137% although these numbers can’t be extrapolated. We estimate 34.4% PAT CAGR over FY22-24 and arrive at a DCF based target price of Rs 2520 (Rs 2701 earlier, impacted by higher Risk free rate). Although structural story remains intact, expect back ended returns given rich valuations of 59.8xFY24 EPS. Retain Buy
Lupin’s Somerset manufacturing plant gets EIR from USFDALupin has received the Establishment Inspection Report (EIR) from United States Food and Drug Administration (US FDA) for its Somerset, NJ manufacturing facility, after the inspection of the facility in March 2022. The US FDA has determined that the inspection classification of the facility is Voluntary Action Indicated (VAI).
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened on strong note on July 7 with Nifty above 16100.
At 09:15 IST, the Sensex was up 462.58 points or 0.86% at 54213.55, and the Nifty was up 134.60 points or 0.84% at 16124.40. About 1375 shares have advanced, 278 shares declined, and 62 shares are unchanged.
Titan Company, Asian Paints, Kotak Mahindra Bank, Power Grid Corporation and ICICI Bank were among major gainers on the Nifty, while losers were Britannia Industries, Bharti Airtel and HUL.
Prashanth Tapse, Vice President (Research), Mehta Equities
After yesterday’s positive close, markets could extend gains in early Thursday trades on the back of a strong buoyancy in world equity indices, even as FOMC Meeting Minutes showed US policymakers anticipate a 50 or 75 basis points hike in the next meeting.
The US growth forecast was revised downward for this and next year, while the US treasury yields inching higher, with the 10-year yield curve remaining inverted, indicating a key recession warning.
However, oil prices slipped to $98 a barrel, which could act as a respite to the market. Meanwhile, the technical indicators can accelerate towards south only if Nifty slips below the 15521 mark.
ICICI Direct
Indian markets are likely to open on a positive note today on the back of strong global cues. Globally, investors are keeping track of US Fed’s June policy meet and the IMF chief’s statement on possibility of a global recession next year.
US markets ended higher amid release of minutes by Fed, which showed bank was committed to bring inflation down.
ICICI Direct
The rupee is expected to depreciate further today amid strong dollar. Furthermore, market participants fear elevated inflation has pushed major central banks across globe to tighten monetary policy, prompting foreign investors to pump out liquidity from emerging markets.
US FOMC meeting minutes showed policymakers are of the view that they would have to raise interest rates faster and to levels high enough to slow economic growth because of worsening inflation. US$INR (July) is expected to trade in a range of 79.00-79.45.
Kalyan Jewellers quarterly update
The company witnessed consolidated revenue growth of over 105% in Q1 FY 2023 as compared to the same period in the previous financial year, company said in its release.
It witnessed revenue growth of over 115% for our India operations during the recently concluded quarter, as compared to Q1 FY 2022, it added.
Escorts Kubota to hike price of tractors
Agri Machinery, division of Escorts Kubota Limited, shall be increasing the prices of its tractors effective 10th July 2022, company said in its release.
There has been a steady rise in commodity prices necessitating a price hike to partially offset the rise in input cost due to continuing inflation. The increase in prices would vary across models and variants, it added.
Rupee Opens:
Indian rupee opened 23 paise higher at 79.07 per dollar on Thursday against previous close of 79.30.
Market at pre-open: Benchmark indices are trading higher in the pre-opening session.
At 09:02 IST, the Sensex was up 246.32 points or 0.46% at 53997.29, and the Nifty was up 76.90 points or 0.48% at 16066.70.
TVS Motor drives in new bike ‘Ronin’
TVS Motor Company on Wednesday forayed into the premium lifestyle segment with the launch of 225-cc bike Ronin priced at Rs 1.49 lakh (ex-showroom). The bike comes in three trims tagged at Rs 1.49 lakh, Rs 1.56 lakh and Rs 1.69 lakh, respectively.
