Motilal Oswal on Alembic Pharma Given that the recent investments in oncology, derma andopthal filings are expected to fetch returns only from FY20 and beyond, high R&D expense, depreciation and pricing pressure in the US will keep growth under check in the near term. We have cut our FY20E EPS by ~6% on the back of slower margin revival. We cut out target multiple (in-line with industry) led by the weak macro outlook and the challenging pricing environment. Maintain Neutral with a target price of Rs 500 at 18x FY20E EPS Emkay on TVS Motor Company We reduce FY19E EPS estimate by 6% to Rs20.3 due to lower margin assumption while our FY20E EPS estimate remains unchanged. Our target price stands at Rs670 (unchanged), based on 25x FY20E earnings. Led by strong earnings prospects and ~25% fall in the stock price over the last 4 months, we upgrade rating to Accumulate from Reduce ADAG Stocks gain COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME REL. COMM. 14.20 10.55 3.65 34.60 20741419 RELIANCE NAV.ENG 15.55 12.70 2.85 22.44 4399962 RELIANCE POWER 36.20 33.35 2.85 8.55 1464383 RELIANCE HOME 57.65 54.30 3.35 6.17 84626 RELIANCE CAPITAL 392.50 374.85 17.65 4.71 332659 RELIANCE INFRA. 400.50 384.40 16.10 4.19 165552 IFL Promoters matter: Sebi slaps Rs 16.8 million fine on promoter, 7 others Markets regulator Sebi has slapped a fine of Rs 1.68 crore on a promoter and seven others for "illegal" off-market transactions in the shares of IFL Promoters. Heena Developers is the promoter while the seven others are Bibhas Bhubaneswar Jha (HUF), Mahender Singh, Sham Sunder Gupta, Shark Communications, Veena Gupta, DMC International and Ours Trading and Holdings. READ MORE Manali Petrochemical zooms 20% on robust Q4 results Manali Petrochemical is locked in upper circuit of 20% at Rs 41.55 on the BSE with only buyers were seen on the counter in otherwise subdued market after the company reported a record quarterly net profit in March quarter (Q4FY18). The petrochemicals company posted four-fold jump in its standalone net profit at Rs 266 million in Q4FY18, on back of strong operational performance. The company had profit of Rs 67 million in the corresponding quarter of previous fiscal. READ MORE RBI to the rescue with likely $15 billion bond-purchase to cap yields Embattled investors in India’s government bond market are hoping to see the light at the end of the tunnel as the central bank comes to their rescue. Benchmark yields have likely peaked for 2018 after hitting a three-year high this week, and the Reserve Bank of India’s debt purchases will keep a lid on them even as higher inflation boosts the odds of monetary tightening, according to a survey of traders and fund managers. READ MORE
The markets are trading lower on Thursday even as Bharatiya Janata Party (BJP) leader B S Yeddyurappa took oath as the 23rd chief minister of Karnataka earlier in the day.
Among sectoral indices, the Nifty Metal index has slipped around 1% led by a fall in shares of Hindalco Industries and Tata Steel.
Meanwhile, global cues and corporate earnings are likely to impact investor sentiment as the day progresses.
In the global markets, Asian shares held steady on Thursday, while the euro struggled near five-month lows set a day earlier following a report that Italian populist parties trying to form a coalition could ask the European Central Bank to forgive 250 billion euros of debt.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed, while Japan’s Nikkei gained 0.4 per cent and South Korea’s KOSPI rose 0.4 per cent.
(with Reuters inputs)
