shiva sharma

According to experts, the IPO of Tata Technologies will increase cash flow in Tata Motors Ltd.

The share price of Tata Motors is: Tata Motors shares have been rising in value in the two months after Tata Technologies Ltd, a part of the Tata group, filed the Draught Red Herring Prospectus (DRHP) for the launch of its initial public offering (IPO).

The Tata group stock has consistently reached 52-week highs. The India car major announced its fourth-quarter results on Friday, which were better than expected.

According to stock market experts, Tata Motors has surpassed Covid in terms of fundamentals, and the IPO of Tata Technologies will play a significant part in this.

They stated that one should begin accumulating Tata Motors shares ahead of the launch of the Tata Technologies IPO because the public issue is 100% OFS, which means that the net proceeds of the public issue will go into the balance sheets of shareholders selling their stake in Tata Technologies, and Tata Motors is one of the shareholders offloading its stake in the IT company through this upcoming IPO.

Tata Motors outcomes

Tata Motors reported a consolidated net profit of 5,407.79 crore in the fourth quarter of FY23, up from a net loss of 1,032.84 crore in the same quarter last fiscal.

EBITDA margins were mostly in line with our and the market’s expectations. Depreciation was greater than anticipated, whereas PAT benefited from the deferred tax benefit. Overall, the numbers are as expected.”

JLR product sales

“Investment spending is expected to rise to around GBP3 billion in FY24, with free cash flow exceeding GBP2 billion and net debt falling to less than GBP1 billion by FY24,” Prabhudas Lilladher, an analyst, predicted.

Himanshu of Prabhudas Lilladher went on to say that despite higher retail sales, the order book at 200K units remained solid. The book is 76 percent Range Rover, Range Rover Sport, and Defender.

Tata Technologies IPO

According to Avinash Gorakshkar, Head of Research at Profitmart Securities, “As per the DRHP filed by Tata Technologies Ltd at SEBI, Tata Motors input cost per share in Tata Technologies is 7.40 per share and if we look at the unlisted market hints, then we can assume that there will be a huge rise in the absolute value of Tata Motor’s investment in Tata Technologies.”

As a result, the IPO is projected to simplify cash flow in the Indian car giant, which is why Tata Motors’ share price is expected to rise further.”

The US dollar is falling in value.

“Even though the US dollar recovered from a one-month low last week, the outlook for the US dollar remains weak in the aftermath of the US debt ceiling, and FIIs are expected to continue buying in the Indian stock market.”

Now is the time to buy Tata Motors stock.

After good Q4 earnings and other developments, Himanshu Singh of Prabhudas Lilladher believes Tata Motors shares would rise to $590 per share in the short to medium term.

LT Foods shares increased 4.73% to Rs 113.95 today, from a previous close of Rs 108.80 on the BSE. The company’s market capitalization was Rs 3,911 crore.

In comparison, the Sensex has grown 97% throughout this time. LT Foods shares increased 4.73% today to Rs 113.95 on the BSE, from a previous closing of Rs 108.80. Previously, the shares opened lower on the BSE at Rs 107.70.

In terms of technicals, the stock’s relative strength index (RSI) is 58.6, indicating that it is neither overbought nor undersold. The beta of LT Foods is 0.9, indicating moderate volatility over the course of a year.

The stock has climbed 44% in a year and dropped 2.38% this year. On the BSE, 1.33 lakh shares of the company were traded, resulting in a turnover of Rs 1.49 crore. The firm’s market capitalization was Rs 3,911 crore.

LT Foods’ net profit increased 33.49% to Rs 95.27 crore in the December quarter of the fiscal year, compared to a profit of Rs 71.42 crore in the quarter ending December 2021.

The company reported a 6.62 percent increase in profit to Rs 292.18 crore, up from Rs 274.05 crore the previous year.

Sales increased 14.46% to Rs 5427.37 crore in the fiscal ended March 2022, compared to Rs 4741.92 crore in the fiscal ended March 2021. Sales for the fiscal year ending March 2020 totaled Rs 184.50 crore.

The Business

• LT Foods is a food firm that specialises in consumer food. Across the globe, the company is active in speciality rice and rice food items, organic food, and ingredient industry.

• The business is divided into three divisions: Basmati and Other Specialty Rice, Organic Food and Ingredient Business, and Convenience and Health.

Nexus Select Trust REIT IPO: Most brokerage firms have given it a’subscribe rating,’ citing excellent prices, best-in-class assets, and the fact that there are no public real estate investment trusts in India’s retail sector.

The Nexus Select Trust REIT IPO received bids for 29.16 crore units against an offer size of 18.52 crore shares, with the issue being subscribed to 1.57 times in the afternoon of May 11, the final day of bidding.

The offer consists of a new issuance of Rs 1,400 crore in shares and an offer for sale (OFS) of Rs 1,800 crore in shares.

On May 8, the REIT collected Rs 1,440 crore through its anchor book.

In addition to normal business purposes, the company will use the proceeds of the new issuance to repay loans to asset special purpose vehicles and the investment entity, as well as to acquire stakes in and redeem debt instruments in certain asset SPVs.

As of December 2022, Nexus Select Trust had a portfolio of 17 Grade A urban consumption centres totaling 9.2 million square feet (msf), two complementary hotel properties (354 keys), and three office assets (1.3 msf).

Its portfolio includes 1,044 domestic and foreign brands with 2,893 shops as of December 2022.

‘Subscribe’ is a brokerage term.

Following the IPO, the trust’s equity value will be Rs 15,150 crore, and the NAV per unit in relation to the offer price will be 0.78 at the upper price range.

According to the pricing, “investors would receive an ongoing return of 8.3 percent pre-tax and 7.1 percent post-tax in terms of distributions made by the REIT.”

It has given the IPO a “subscribe” rating, citing Nexus as having India’s largest platform of best-in-class assets, with a presence in 14 key consuming markets and strategically situated in prime in-fill sites with strong obstacles to entry.

As of December 2022, Nexus REIT’s portfolio has a 96.2 percent average committed occupancy.

“The company will also declare and distribute at least 90% of the Nexus Select Trust’s net distributable cash flows as distributions to unitholders,” BP Wealth stated.

Embassy Business Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust REIT are already publicly traded.

While Karwa sees robust passenger vehicle sales due to new product introductions, he anticipates a decrease in commercial vehicle sales.

Despite certain banks’ strong results and upbeat performance, earnings increases have been few and far between, according to Emkay Global’s managing director Krishna Kumar Karwa.

“Numbers have been very good for banks, and banks have recovered from their lows in the last 30-45 days, but in terms of valuation multiples, will we see further expansion of valuation multiples, or are most banks entering a territory of valuation multiples saturation?”

“I haven’t seen too many earnings upgrades across the board,” he noted.

In Q4FY23, HDFC Bank and ICICI Bank both reported positive results. HDFC Bank reported a 21% YoY increase in overall net profit to Rs 12,594.5 crore for the quarter ended March 31 on April 15.

When it comes to the car industry, Karwa believes that the’massive replacement cycle’ in the two-wheeler area is picking up, and that the segment will yield solid results.

While Karwa sees robust passenger vehicle sales due to new product introductions, he anticipates a decrease in commercial vehicle sales.

He also stated that the insurance industry has been in a state of stagnation for almost three to four years, but at good valuations, implying that one investor may look to invest in the market in the next two to three years.

The minister also stated that there are several business prospects in various sectors in India and assured full support to businessmen willing to invest in the country.

According to the MSME Minister, India is on track to become the third largest economy; he encourages industry to continue investing.

He made the statements at the Inventivepreneur Chamber of Commerce and Industry (ICCI) and Ministry of Micro, Small, and Medium Enterprises (MSME)-hosted ‘GIC 23 Intergovernmental Connect’ today.

“From being the tenth largest economy in 2014, India is now the fifth largest.” Only Japan and Germany are ahead of us. “As our prime minister has envisioned, we will become the third largest economy by 2030,” he stated to approximately 200 participants from around the world during the event.

The minister also stated that there are several business prospects in various sectors in India and assured full support to businessmen willing to invest in the country.

According to him, the country will witness many industrial parks in various areas, and investors can explore business potential in this field.

He also stated that the industry must identify areas where imports are occurring and begin creating similar products in order to control inbound shipments.

According to ICCI Vice Chairman Rishabh Malhotra, the overseas delegates comprised industry executives and diplomats from nations such as Spain, Belarus, Mexico, and Africa, among others.

Participants come from a variety of industries, including FMCG, automotive, logistics, electricity, solar, and telecom.

As authorised by the minister, “we will guide them (investors) on various business-friendly policies being offered by the government of India and that of various other countries.”

Over the previous five years, Shemaroo stock has lost 71.82 percent of its value. In comparison, the benchmark Nifty50 index has returned 68.77 percent over the same time period.

Shemaroo Entertainment Ltd has reported total income of Rs. 164.7 crores during the period ended March 31, 2023, as compared to Rs. 150.4 crores during the period ended December 31, 2022.

The company reported a net profit of Rs. 4.84 crores for the fiscal year ended March 31, 2023, compared to a net profit of Rs. 0.88 crores for the fiscal year ended December 31, 2022. The company recorded EPS of Rs. 1.78 for the fiscal year ended March 31, 2023, compared to Rs. 0.32 for the fiscal year ended December 31, 2022.

Recent company developments

She will report to Arghya Chakravarty, COO, Shemaroo. Trivedi moves from Disney Star, where she was executive director, content studio strategy head.

Her ability to create captivating content experiences for audiences and build creative methods meshes perfectly with our aim of providing excellent value to our consumers. We are convinced that Anuja will be critical to Shemaroo’s continuing success and expansion.”

Performance of Stocks

Over the previous five years, the stock of Shemaroo has lost 71.82 percent of its value. The benchmark Nifty50 index, on the other hand, has returned 68.77 percent over the same time period.

Aarti Industries’ profit increased by 2% year on year to Rs 149 crore for the quarter ending March 2023, while revenue increased by 15% to Rs 1,656 crore.

On May 10, Aarti Industries’ shares tumbled more than 8%, a day after the speciality chemical company’s Q4 earnings call, in which management emphasised a negative demand outlook in key regions and the discretionary category.

“Product offtake associated with the textile industry, such as dyes and pigments, remains subdued,” management stated.

The corporation also supplied certain discretionary products to ‘non-regular markets,’ such as China, resulting in lower than normal margins. Demand in the’regular market,’ such as North America and Europe, remained poor.

Aarti Industries’ profit increased by 2% year on year to Rs 149 crore for the quarter ending March 2023, while revenue increased by 15% to Rs 1,656 crore. However, revenue remained flat over time.

EBITDA margin fell to 15.2 percent from 17.3 percent QoQ and 18.2 percent year on year. The company’s net debt climbed to Rs 2700 crore from Rs 25o crore in September 2022.

Nuvama Institutional Equities is likewise rated Buy, with a target price of Rs 776. In a recent study, it stated, “Considering the revival in earnings and return ratios, we argue Aarti Industries offers a favourable risk-reward at 30x FY25E earnings per share.”

Meanwhile, Kotak Institutional Equities has a Neutral rating with a target price of Rs 557. It sees the comeback of Chinese competition in certain categories, such as agrochemicals, as an additional challenge.

HPL Electric and Power Limited increased by 9% after winning smart metre orders worth INR 204 crore, owing to government initiatives and widespread adoption of smart metering technologies.

According to the corporation, the orders would be filled at a faster rate in accordance with government-led smart metering initiatives.

It also indicated a pipeline of pending orders and an order book worth more than Rs 1500 crore.

“Government schemes have significantly aided the industry, and we are seeing tangible results.” Our solid pipeline of pending orders, along with our R&D and process automation initiatives, positions us well for ongoing growth and market leadership,” said Gautam Seth, Joint MD, HPL Electric and Power.

HPL Electric and Power Limited provides a variety of electric equipment items, including metering solutions, switchgear, lighting equipment, and wires and cables.

The company reported a 31.2 percent drop in overall net profit to Rs 6.36 crore in the third quarter of FY23, compared to Rs 9.3 crore in the same time the previous year.

Net sales increased 7.7 percent to Rs 301.59 crore, up from Rs 280 crore in Q3FY22. Earnings before interest, taxes, depreciation, and amortisation

The company’s market valuation has increased by more than 60% in the last year but has decreased by 7% in the last six months. As of 12:07 p.m., the scrip was trading 6.04 percent higher at INR 95.70, while the benchmark nifty was trading 0.029 percent higher at 18,270.45 points.

If the Nifty50 maintains firmly above 17,800, it can march towards former swing highs of 17,860 and 17,900-18,000, where some profit taking is possible, while 17,500-17,600 remain critical support levels, according to experts.

The pattern shows a tug of war between bulls and bears for further market direction, as the index has failed to close above the 17,800 level.

The index opened higher at 17,762 and fell to an intraday low of 17,717 before recouping losses near the conclusion of the first hour and trading upward for the remainder of the session. It closed 26 points higher at 17,769, continuing the rise and making higher highs and lower lows for the second consecutive session, which is a good sign.

As a result, if the index maintains firmly above 17,800, the Nifty50 can march towards the earlier swing highs of 17,860 and 17,900-18,000, where some profit taking is possible, although 17,500-17,600 remain critical support levels, according to experts.

If the index falls below 17,720 and retests the level of 17,670-17,625, a slight intraday correction is conceivable,” said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

On the other hand, a new uptrend wave is feasible only after the rejection of 17,820, and post-breakout, the odds of the index reaching 17,900-17,925 would improve, he said.

According to option data, the Nifty50 may trade in the 17,500 to 18,000 region in the next sessions.

which might provide immediate support for the Nifty, followed by the 17,600 strike, with Put writing at the 17,800 strike, then the 17,500 strike.

In the later half of the day, it remained consolidative in a narrow range of 150 points between 42,650 and 42,800 levels. Finally, it closed at 42,679, up 43 points, with a tiny body bearish candlestick pattern on the daily charts.

According to Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, it now has to hold above 42,500 levels to rise up to 43,000, then 43,200 levels, while on the downside, supports have gone higher to 42,250, then 42,000 levels.

According to Rahul Ghose, Founder & CEO of Hedged, a breakthrough in Bank Nifty above 43,200 would also confirm an Inverse Head and Shoulder pattern with a first objective of 44,000.

Bank of Baroda and ABB India were removed from the largecap portfolio. Devyani International has been withdrawn from the midcap portfolio.

Bank of Baroda, ABB India, and Devyani International have been removed from Kotak Institutional Equities’ largecap and midcap portfolios, while Canara Bank and Adani Ports & SEZ have been added.

The brokerage business said it withdrew Bank of Baroda, which had a weight of 160 basis points, from its largecap portfolio due to its exceptional performance over the last six and twelve months, when it climbed 27 percent and 73 percent, respectively.

Canara Bank has replaced Bank of Baroda with a weight of 150 basis points. Canara Bank was once part of its midcap portfolio. One basis point equals one tenth of a percentage point.

“The portfolio has a good exposure to PSU banks through SBI and Canara Bank.” SBI trades at 1.1X FY2024E BV after deducting the value of its partners and subsidiaries.

Canara Bank is now trading at 0.9X FY2024E BV.

Given similar return profiles and values, there is not much to choose amongst the main PSU banks (except SBI) at the moment,” Kotak stated in its analysis.

The brokerage company also withdrew ABB India, which had a 200-bps weight in its largecap portfolio, since it believed the stock had exceptionally rich values. It added Adani Port SEZ with a weight of 150 bps.

“We remain impressed with ABB’s fundamentals and remain optimistic about the investment cycle.”

ABB’s valuations assume long-term robust revenue growth and margins.

According to Kotak, Adani Port’s stock is trading at 12.3X FY2024E EBITDA and 10.2X FY2025E EBITDA. The stock is trading substantially below its fundamental worth (its 12-month Fair worth of Rs 810) and has down 10% since January 24, 2023, the day before the publication of a short-seller report on Adani Group.

“We remove Devyani International from the mid-cap model portfolio, given the stock’s 21% gain in the last month, which has pushed the stock price well above our 12-month Fair Value of Rs 160,” the company said of the KFC and Pizza Hut franchise.