Category: Stocks

Neogen Chemicals shares can rally another 32.5%, says Kotak; Stock rallies most in a year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Neogen Chemicals Ltd. zoomed 12% on Thursday, marking their biggest single-day gain since April 2023. This was after domestic brokerage firm Kotak Institutional Equities initiated coverage on the stock with a ‘Buy’ rating and a price target of ₹1,840 per share.

Kotak sees Neogen as a credible growth story in India’s specialty chemicals industry, thanks to its esteemed promoters led by PI’s former executive director Anurag Surana. Additionally, it said the company’s track record of rapid growth is driven by innovation and enterprise, and its partnerships with Mitsubishi and global customers.

Kotak in a note said that Neogen is on track to become the first mover in the battery chemicals segment in India owing to the work it has done in this space over the past few years—further validated by the technology partnership it has managed to strike with MUIS (Japan).

The company is targeting a market share of more than 30% within battery electrolytes in India by 2030 — a large opportunity. Additionally, in its base business, the company continues to invest in new product development and is seeing traction in the CSM business.

Neogen expects a revenue of ₹900-1,050 crore from its base business by FY26 and another ₹2,500-2,950 crore from the battery chemicals business by FY29. “Our estimates are closer to the lower end of the guidance range,” the brokerage noted.

Kotak expects Neogen to sustain 18-20% EBITDA margins once its new capacities for battery chemicals are optimally utilised by FY29. The return of capital employed (RoCE) is likely to remain under pressure for the next few years until utilization ramps up, but should thereafter recover toward 20%, given healthy underlying economics.

The brokerage estimates 34% revenue and 40% EPS CAGRs for Neogen over FY23 to FY29, led by commencement of battery chemical revenues and supported by continued healthy growth in the base business of bromine and lithium derivatives.

The company’s balance sheet leverage has been an area of concern, given its long working capital cycle and aggressive growth plans.

While management has been guiding to reduce the net working capital cycle to 120 days from 170-180 at present, progress has been slow amid industry challenges.

The aggressive capex plan will exert further pressure on the balance sheet, highlighted Kotak in its note.

The brokerage added that dilution to equity-holders is a real possibility at some point, but the attractiveness of the growth story more than compensates.

The stock settled 11.26% higher at ₹1,544 apiece on the NSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Inox Wind shareholders will get 3 more shares for every one held

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shareholders of the Noida-based Inox Wind will get three bonus shares for every one that they already own, thanks to the approval from the board of directors on April 25.

“The issuance of bonus shares will not only bolster the capital base of the Company without any cash outflow but will also enhance the liquidity of Inox Wind’s shares, broadening participation of a wider set of investors,” the company said in a filing to the stock exchanges.

The stock of the wind power producer with a capacity of 2.5 gigawatts (GW) of electricity have been on a tear with a rally of over 26% in the last one month and a over a six-fold increase in share price in the last one year.

In comparison, shares of Suzlon, which has a capacity of 14 GW, have gained over 5 times in the last one year. 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HUL analysts expect a gradual recovery in volume growth in FY25; Stock falls over 2%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Hindustan Unilever Ltd. (HUL) fell up to 2% in Thursday’s trade even after the company’s March quarter numbers came in line with the Street expectations. HUL reported a decline in revenue and profit while domestic volume grew about 2% for the fourth quarter.

The commentary by a couple of brokerages was uninspiring for investors with HSBC and Jefferies reiterating ‘Hold’ recommendations, while Nuvama trimmed earnings per share (EPS) estimates even as it retained a ‘Buy’ stance on the HUL stock.

Nuvama analysts have slashed their FY25 and FY26 EPS estimates by 7% and 5.5%, respectively, and said that they will watch out for a gradual rural recovery and a likely good monsoon.

However, Motilal Oswal said there is no material change in its EPS estimates for FY25 and FY26.

“The valuation at <45 times FY26E EPS is reasonable given its last five-year average P/E (price-earnings) of 60 times on one-year forward earnings,” the brokerage said while reiterating a ‘Buy’ rating and a target price of ₹2,900 per share, considering favourable risk-reward.

In the transition phase of the last 12 months, volume growth was weak and value growth was affected by price cuts, Motilal noted.

The brokerage expects a gradual recovery in volume growth in the current financial year, driven by its own initiatives and gradual improvement in demand.

The impact of price cuts is expected to persist in the first half of FY25, but the volume print should improve during this phase and the full revenue recovery will be visible in H2FY25, as highlighted by Motilal in its report.

According to Amnish Aggarwal of Prabhudas Lilladher, risk-reward looks favourable after little returns in the last four years; however, significant re-rating looks unlikely given valuations at 44.6 times FY26 and market momentum in favour of cyclicals.

The brokerage has upgraded the stock to ‘Accumulate’ from ‘Hold’ earlier for moderate returns over the next 12-15 months.

Analysts at Emkay Global said HUL’s struggle to revive growth and recoup margin from 23% is reflected in the stock’s valuation, which has seen a steady de-rating.

The management commentary in the earnings call suggests actions are in place, though with a lag, which is where it continues to see hiccups.

Going ahead, the brokerage said it remains concerned about the demand slum, its inability to drive in-time innovation, competitive stress, and weak business mix.

HUL posted a net profit of ₹2,406 crore, which was in line with the CNBC-TV18’s poll of ₹2,438 crore. The company’s revenue also stood in line with expectations for the quarter.

EBITDA or Earnings before Interest, Tax, Depreciation and Amortisation came in at ₹3,435 crore, which was also in line with expectations of ₹3,430 crore. EBITDA margin stood at 23.1%, also meeting estimates.

The management expects FMCG demand to continue to improve gradually. They also remain optimistic about the mid-term impact of better monsoons and improving macro-economic conditions.

In case commodity prices remain where they are, HUL expects price growth to be a negative low-single digit.

At 11:24 am, the scrip was trading 1.77% lower at ₹2,220.30 apiece on the NSE. The stock has declined more than 16% so far this year and is down 10% over the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LTIMindtree among top three Nifty 50 losers after Q4 results miss estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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LTIMindtree shares were in focus on April 25, a day after the IT services firm posted its quarterly earnings that did not meet CNBC-TV18 poll projections across parameters. The stock was among the top three Nifty 50 laggards in early trade.

Following a quarter-on-quarter decline in revenue, profit, margin as well as EBITDA (earnings before interest, taxes, depreciation, and amortisation), at least two global brokerages have cut their target prices on the IT stock.

Morgan Stanley cut the target price on LTIMindtree shares to ₹4,600, implying an almost 3% downside from the closing price of April 24. The brokerage, with an equal-weight stance, believes the IT services’ margin may have to face more headwinds than tailwinds. It asserted that to ensure a material uptick in growth for the company in FY25 compared to FY24 will require superior execution.

It, however, said that continued strong net income conversion to free cash flow (FCF) is positive and that there is an expectation of growth returning from the first quarter of FY25.

Nomura, meanwhile has a ‘reduce’ rating on the stock with a target price of ₹4,170, which implies a potential downside of 11% from the previous close.

According to the brokerage, no meaningful recovery is in sight for LTIMindtree. There shall be sequential growth from Q1FY25, however, growth acceleration is unlikely in FY25.

It pointed out that the firm’s margin disappointed again in Q4, the third quarter in a row.  It also lowered the FY24-26 earning per share (EPS) estimate by nearly 4-8%.

Also Read: LTIMindtree declares 4500% final dividend

HSBC, meanwhile, with a hold call has cut the target on the stock to ₹5,380. Despite the cut, this still means a potential upside of almost 14%. The brokerage noted that the company’s management was slightly more positive on FY25 growth but stayed negative on the margin outlook.

LTIMindtree shares traded almost 2% lower at ₹4,640.15 on NSE at 9:32 am. So far in 2024 (year-to-date), the stock has erased a quarter of investors’ wealth. It has declined more than 25% YTD as against the benchmark Nifty 50 which has risen 3% during the period.

Track latest market updates on CNBCTV18.com’s blog updates

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cements, Hindalco, ACC, Torrent Pharma, Dr Lal Pathlabs, HAL, CONCOR are today’s top picks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technical analysts Mitessh Thakkar of earningwaves.com and Sudarshan Sukhani, along with Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal Financial Services share their top stock picks for the day.

From Mitessh Thakkar

Mitessh Thakkar’s first buy call of the day is on Ambuja Cements. He recommends this with a stop loss of ₹634 for an upside target of ₹670. Shares have gained more than 8% in the last month.

He recommends a buy call on Hindalco with a stop loss of ₹620 for an upside target ₹670. The stock is up more than 12% over the last month.

Among the sell recommendations, Thakkar has one on Adani Enterprises with a stop loss of ₹3,085 for a downside target of ₹2,950. Shares have declined more than 2% over the last month.

Bosch is another sell call from Mitessh Thakkar. His recommendation comes with a target of ₹29,150 and a stop loss of ₹28,200. The stock has declined more than 5% in the last month.

From Sudarshan Sukhani

Sukhani finds a buying opportunity in ACC. He advises traders to keep a stop loss of ₹2,370. Shares have gained more than 4% over the last month.

Sukhani’s only intraday short is on Bajaj Auto. For this, he advises a stop loss of ₹9,200. Shares are down more than 3% over the last month.

Torrent Pharmaceuticals is another buy call from Sudarshan Sukhani. Stop loss is to be placed at ₹2,540. The stock has gained more than 4% in the last month.

Lastly, Sukhani recommends a buy on Dr Lal Pathlabs. He advises a stop loss of ₹2,160. Shares are up more than 2% over the last month.

From Chandan Taparia

Chandan Taparia has a buy call on Hindalco with a stop loss of ₹622 and a price target of ₹658 on the upside.

He also has a buy recommendation on HAL with a stop loss of ₹3,860 for an upside target of ₹4,120. Shares are up more than 20% over the last month.

Additionally, he also recommends buying CONCOR with a stop loss of ₹950 and a target of ₹1,010-1,020. The stock was up more than 12% in the past month.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Marketbuzz Podcast with Kanishka Sarkar: Sensex, Nifty 50 likely to open lower, Kotak Mahindra Bank in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Welcome to CNBC-TV18’s Marketbuzz Podcast. Here are all the important cues ahead of the trading session of April 25

-Asia-Pacific markets took a breather this morning after two straight days of rallies, mirroring moves on Wall Street ahead of first-quarter gross domestic product figures from the U.S. due later in the day.

-The Bank of Japan kicks off its monetary policy meeting Thursday as investors monitor for action against yen weakness. The yen slid past the 155 mark against the U.S. dollar on Wednesday, hitting a fresh 34-year low.

-Overnight in the US, all three major indexes were largely range bound as interest rate fears dampened the enthusiasm stemming from a strong slate of corporate earnings. The S&P 500 eked out a 0.02% gain, while the Dow Jones Industrial Average fell 0.11%. The Nasdaq Composite edged 0.1% higher.

-Shares of Meta, the parent company of Facebook, plunged as much as 19% in extended trading on Wednesday after its second quarter revenue guidance missed analyst expectations.

– Oil prices eased in early trade on Thursday as concerns about a potential slowdown in the U.S. economy amid prospects for delayed interest rate cuts outweighed worries over the risk of expanding conflict in the Middle East.

-GIFT Nifty was trading with a discount of nearly 50 points from Nifty Futures’ Wednesday close, indicating a start in the Red for the Indian market

-Stocks to track: Kotak Mahindra Bank, Hindustan Unilever, Axis Bank, LTIMindtree, Dalmia Bharat, Syngene, AU Small Finance Bank, Indian Hotels, Rail Vikas Nigam, ITC, Motilal Oswal

-Earnings today: Nestle India, Tech Mahindra, L&T Technology Services, IndusInd Bank, ACC, Bajaj Finance

Tune in to Marketbuzz Podcast for more cues

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Supreme Petrochem Q4 Results | Profit dips 18% to ₹132 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Supreme Petrochem Ltd, engaged in the plastic and petrochemical business, on Wednesday (April 24) reported a 17.5% year-on-year (YoY) dip in net profit at ₹131.5 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Supreme Petrochem posted a net profit of ₹159.3 crore, the company said in a regulatory filing. The company’s revenue from operations increased 12.7% to ₹1,562.8 crore as against ₹1,386.9 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA dipped 15.9% to ₹175.2 crore in the fourth quarter of this fiscal over ₹208.3 crore in the corresponding period in the previous fiscal.

Also Read: Dalmia Bharat Q4 results: Net profit clocks in at ₹315 crore, revenue ₹4,307 crore

EBITDA margin stood at 11.2% in the reporting quarter as compared to 15% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The board of directors recommended a final dividend of ₹7 per equity share for the financial year ended March 31, 2024, subject to approval of members in the ensuing Annual General Meeting of the company.

The payment of the final dividend will be paid on or after, Wednesday, July 24, 2024, if approved by the members at the AGM. Supreme Petrochem remains debt-free with an investible surplus of ₹1,073 crore at the end of March 2024.

Also Read: Syngene International Q4 | Profit up 6%, company to pay dividend of ₹1.25 per share

Supreme Petrochem’s sales volume of manufactured products increased by 17.6% in Q4 of FY24 on a year-on-year basis and by 13.7% in FY24 on a year-on-year basis. Domestic volumes increased by 15.5% in Q4 of FY24 on a year-on-year basis and by 7.5% in FY24 on a year-on-year basis.

Export volumes increased by 44% in Q4 of FY24 on a year-on-year basis and by 82% in FY24 on a year-on-year basis. The capacity utilisation for the year for all products based on expanded capacity was 75%.

The results came after the close of the market hours. Shares of Supreme Petrochem Ltd ended at ₹642.55, down by ₹0.20, or 0.031% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Syngene International Q4 | Profit up 6%, company to pay dividend of ₹1.25 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Contract research and manufacturing services firm Syngene International Ltd on Wednesday (April 24) reported a 5.5% year-on-year (YoY) increase in net profit at ₹188.6 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Syngene International posted a net profit of ₹178.7 crore, the company said in a regulatory filing. The company’s revenue from operations dipped 7.8% to ₹916.9 crore against ₹994.4 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA rose 0.9% to ₹316.9 crore in the fourth quarter of this fiscal over ₹314.1 crore in the corresponding period in the previous fiscal. The EBITDA margin stood at 34.6% in the reporting quarter compared to 31.6% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Also Read: LTIMindtree Q4 results: Profit slips to ₹1,100 crore, revenue declines sequentially to ₹8,892 crore

The board of directors has recommended a final dividend of ₹1.25 per share for the fiscal year 2024, an increase of 150% over last year’s core dividend of 50 paise per share. The final dividend is subject to shareholders’ approval at the annual general meeting of the company.

Jonathan Hunt, managing director and chief executive officer of Syngene International, said, “While the fourth quarter performance came in lower than expected, the underlying driver – reduced demand for research and development services within US biotech stemming from a difficult funding environment – is well understood and already showing positive signs of recovery.”

Sibaji Biswas, chief financial officer and executive director of Syngene International, said, “Our net cashflow generated from operating activities for the year was strong at ₹1,042 crore, which fully funded the capex and the acquisition of the biologics manufacturing plant.”

Also Read: Syngene International Q4 | Profit up 6%, company to pay dividend of ₹1.25 per share

The results came after the close of the market hours. Shares of Syngene International Ltd ended at ₹694.20, down by ₹7, or 1%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Motilal Oswal AMC appoints Prateek Agrawal as MD and CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Motilal Oswal Asset Management Company (MOAMC) Ltd on Wednesday (April 24) said it has appointed Prateek Agrawal as managing director (MD) and chief executive officer (CEO) of the company, effective from April 26, 2024, subject to necessary approvals.

Agrawal has close to 30 years of experience in the asset management business. He joined MOAMC in October 2022.

Also, Akhil Chaturvedi, currently Chief Business Officer of MOAMC, has been elevated to the position of executive director. Chaturvedi has been associated with MOAMC for over 11 years and has been leading the entire sales and operations functions.

Also Read: RIL’s pre-tax income beats revenues of over 50% Nifty companies

He has 25 years of experience in multiple functional roles, including sales, distribution, client advisory and business development across leading asset management companies.

Niket Shah, MF — Fund Manager of designated schemes of Motilal Oswal Mutual Fund, has been promoted to Chief Investment Officer. Shah has been associated with the Motilal Oswal Group for over 11 years.

He has more than 14 years of experience as a fund manager and research analyst, notably overseeing the Motilal Oswal Flexicap Fund and Motilal Oswal Midcap Fund with AUM exceeding ₹18,000 crore.

Motilal Oswal Asset Management Company is a material subsidiary of Motilal Oswal Financial Services Ltd. All of them will start in their new roles effective from April 26, 2024.

Also Read: PayU receives RBI’s in-principle approval to operate as a payment aggregator

Raamdeo Agrawal, Chairman of Motilal Oswal Asset Management Company, said, “This leadership transition not only recognises their efforts but also demonstrates our focused progression towards attaining market-leading positions across our businesses.”

Shares of Motilal Oswal Financial Services Ltd ended at ₹2,359.75, up by ₹47.75, or 2.07%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow