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SI Reporter | New Delhi Last Updated at February 15, 2018 09:34 IST
IPO watch: Aster DM At the upper end of the price band of Rs180‐190, the post money valuation of Aster is Rs97.98bn at the higher end of the band. With 81% revenue contributions from GCC countries, Aster is looking forward to expand its Indian business and increase revenue contribution from India to 30‐35% in the next 2‐3 years. We believe the IPO is fairly priced at current risk‐return matrix. With plan of strong capex for owned hospitals, increasing opex with setting up of new hospitals on lease model and longer gestation period, investment in Aster will be beneficial in long‐term outlook. We recommend “Subscribe”, with a long term investment horizon. (Source: Prabhudas Lilladher) Centrum on Mayur Uniquoters We maintain our Buy rating on Mayur Uniquoters and revise our target price to Rs650 as the company’s footwear business is well on its way to recovery and its high margin profile remains intact. We expect good performance to be maintained in the coming quarters, aided by i) continued recovery in the footwear segment, and ii) higher traction in exports. The company’s foray into the PU business and its new plant in Mysore will also add to its growth momentum, albeit in the medium term. ICICI Securities on NTPC We maintain BUY on NTPC with an unchanged target price of Rs200/share. Our target price is based on a P/E of 11x FY20E EPS discounted to Sep’19, using cost of equity at 11%. The stock is currently trading at FY20E P/BV of 1.16x (P/E of 9x), which we find attractive given our expectations of an earnings CAGR of 14% over FY17-FY20E (driven by the company’s strong capacity-addition pipeline and impending improvement in its capital efficiency, as a larger proportion of its BV is set to earn returns). Sun Pharma eclipsed by 75% fall in Q3 net profit on weak US business A 16% decline in revenue and a one-off tax expense of Rs 5.13 billion resulted in a 75% fall in Sun Pharmaceutical Industries’ consolidated net profit in the third quarter of 2017-18. India’s largest drug maker by revenue reported a net profit of Rs 3.65 billion in the quarter, against Rs 14.71 billion in the year-ago period. READ MORE Earnings Impact: Sun Pharma Nifty PSU Bank Index at open Sectoral Trend
The benchmark indices opened slightly higher on Thursday, taking cues from its key Asian counterparts.
On Wednesday, Punjab National Bank (PNB) had declined 10% on BSE after the state-owned bank said that it had detected some fraudulent and unauthorised transactions worth about Rs 1.13 trillion ($1,771.69 million) at one of its branches in Mumbai. The development triggered a fall in most other banking stocks, with the Nifty Bank index slipping around 5%.
The country’s second-largest public sector bank (PSB) said two of its employees were involved in the scam, where the bank’s core banking system was bypassed to raise payment notes to overseas branches of other Indian banks, including Allahabad Bank, Axis Bank, and Union Bank of India, using the international financial communication system, SWIFT.
The development is likely to keep banking stocks subdued and the overall market sentiment in check on Wednesday.
In global markets, Asian stocks gained on Thursday after Wall Street brushed aside strong US inflation data and surged, a counterintuitive move that also saw the dollar pinned at two-week lows even as Treasury yields jumped in anticipation of a quicker pace of US interest rate hikes.
Chinese and South Korean markets are closed starting Thursday, joining Taiwan. Hong Kong, Singapore and Malaysia will see only a half-day of trading.
Japanese stocks were higher despite fresh gains for the yen, which had sent the Nikkei Stock Average to four-month lows on both Tuesday and Wednesday. The index was up 1.6% after having fallen in 12 of the prior 15 sessions.
Financials were among the big gainers as US Treasury yields hit fresh multiyear highs Wednesday. That included Dai-ichi Life, which jumped 3.7% to erase the week’s decline.
(with wire inputs)
First Published: Thu, February 15 2018. 09:15 IST