Morning Update – 18th October 2022

SSL Research Morning Update 18th October 2022

Equity Market Update

Favourable global cues may help market to start on a positive note

Benchmark indices yesterday closed higher gaining nearly 0.8% after a subdued opening. The recovery was largely
helped by strong momentum in Banking, Auto and Energy stocks. Better than expected results from HDFC Bank
and Bajaj Auto too contributed in the recovery. The broader markets though outperformed with unfavourable
advance-decline ratio. FIIs net sold Rs 372.0 while DIIs net bought Rs 1582.2 cr in the cash market yesterday.

US market overnight closed higher as all benchmark indices rallied between 1.8% to 3.4% as focus is now shifted
towards earnings. Asian cues are largely positive and hence we expect a green start for our market today with stock
specific actions.

Key Actionables

 Anupam Rasayan: Signs 2 long term contracts with one of the leading European crop protection company
for supplying 2 new life science related speciality chemicals. Both of these products were being
manufactured in Europe and henceforth customer has decided to source these products exclusively from
Anupam. The company will supply these products for the next 3 years under the contract - Stock to react
positively in trade today; Positive in medium to long term for Anupam

 Zydus: Receives tentative approval from the USFDA for Valbenazine Capsules; Valbenazine Capsules had
annual sales of USD 781mn in the United States according to IQVIA data (IQVIA MAT Aug 2022) - Positive in
short to medium term for Zydus

 Royal Orchid & Regenta Hotels: Launch Regenta Central Imperial Candolim in Goa; Comprises 73 rooms -
Positive in long term for Royal Orchid

 KSB: The company bagged an approval for sale of intellectual property rights/drawings of Bharat Pumps and
Compressors Ltd., Naini, Prayagraj – Positive in short to medium term

 Ashiana Housing: The company acquired a piece of additional land admeasuring 2.26 acres on perpetual
basis from Mahindra Lifespaces within the township of Mahindra World City at Chennai, taking the total land
acquired by the company in the city to 17.90 acres - Positive in short to medium term

 SJVN: SJVN Green Energy Ltd., wholly owned subsidiary of the company, signed an MoU with Assam Power
Distribution Company Ltd. for developing 1,000 MW floating solar power projects in Assam by incorporating
a joint venture company - Positive in short to medium term

 Adani Transmission (Provisional operational update 2QFY23 YoY): Electricity units sold increased 13% YoY to
2,233 million units on the back of uptick in energy demand, supply reliability of more than 99.9, distribution
loss bridged to 6%, operated transmission lines upwards of 99.76% - Positive in short to medium term

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  Container Corporation of India (Business volume 2QFY23 YoY): Cargo volume increased 16.63% YoY to 11.44
lakh TEUs. Export-import vertical saw 18% YoY hike in cargo volume at 9.37 lakh units. Domestically, volumes
increased 10% YoY to 2.07 lakh units - Positive in short to medium term

Key 2QFY23 Result Today

L&T Technology Services, Tata Communications, ICICI Lombard General Insurance Company, HFCL, Sonata Software,
Gujarat Fluorochemicals, Schaeffler India, Polycab India, Praj Industries, Newgen Software Technologies, Network18
Media Investments, Mahindra CIE Automotive, TV18 Broadcast, Tinplate Company, Lloyd Metals, KPIT Technologies,
JSW Ispat Special Products, Gujarat Mineral Development Corporation

Key 2QFY23 Result Update

 Jindal Drilling: Total income of Rs 156 cr, up 43.5% YoY and PAT of Rs 32 cr, up 784% YoY - Strong set of results
from Jindal Drilling; Stock likely to react positively in trade today

 Tata Coffee: Total income of Rs 723 cr, up 30.4% YoY and PAT of Rs 142 cr, up 318.3% YoY led by exceptional
income of Rs 137 cr; Margins under pressure due to high raw material price - Neutral in short to medium
term for Tata Coffee

 Craftsman Auto: Total income of Rs 776 cr, up 35.9% YoY and PAT of Rs 62 cr, up 24% YoY; EBITDA margin of
22.2% in 2QFY23 v/s 25.2% in 2QFY22 - Decent set of results from Craftsman; Trading at expensive valuations
with P/E multiple above 35x

 Tata Metaliks: Revenue up 36% YoY at Rs 877 crore; EBITDA fell 59% YoY at Rs 40.92 crore; EBITDA margin
at 5% Vs 15% in 2QFY22; Net profit fell 74% YoY at Rs 14.29 crore – Stock may react negatively today

 Maharashtra Seamless: Revenue up 48% YoY at Rs 1,411 crore; EBITDA up 74% YoY at Rs 246.44 crore;
EBITDA margin at 17% Vs 15% in 2QFY22; Net profit up 94% YoY at Rs 176.58 crore. Recommended issue of
bonus shares in the ratio of 1:1 – Strong set of results; Positive in short term

 Can Fin Homes: Net interest income up 0.31% QoQ to Rs 251.2 crore; Profit after tax down 12.6% QoQ to Rs
141.7 crore; Gross NPA ratio at 0.62% vs 0.65%; Net NPA ratio at 0.35% vs 0.30% - Decent set of results; More
highlights will be provided in the company’s earnings concall today

Bulk Deals

 Electronics Mart: Nippon India Mutual Fund bought 24 lakh shares (0.62%) at Rs 89.42 per share.
 JTL Infra: Renu Swami sold 6.1 lakh shares (1.15%) at Rs 253.21 per share, Mithan Lal Singla sold 19.81 lakh
shares (3.74%) at Rs 248.10 per share.

Trading Tweaks / Corporate actions

 Price Band Revised From 10% To 5%: Rachana Infrastructure
 Ex-Date Bonus: Madhya Bharat Agro Products
 Ex-Date Face Value Split: HLE Glascoat
 Record-Date Interim Dividend: Tata Consultancy Services

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Pledge Share Details

 Emami: Promoter Groups Sneha Enclave created a pledge of 1.25 lakh shares and Suraj Finvest created a
pledge of 6.7 lakh shares on Oct. 12.

Fund Flows – Cash Market

 FII (Rs cr): -372.0

 DII (Rs cr): +1,582.2

Source: BSE/NSE/Economic Times/Bloomberg Quint/Business Line/Business Standard/Financial Express/Money

control

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