12 Best Stock Market News: Asian stocks were mixed Friday as traders evaluated risks from the omicron virus strain, while Treasury yields pared a climb spurred by Federal Reserve comments about a quicker reduction in stimulus.
Equities fluctuated in Japan, fell in South Korea and rose in Australia. China and Hong Kong face headwinds: Chinese shares traded in the U.S. slid over the risk of delisting for flouting disclosure rules.
The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, shed 0.46% to 17,364.50 as of 7:20 a.m.
Treasury yields dipped, retracing some of their jump in the U.S. on Thursday. Fed officials laid out the case for a faster removal of policy support amid high inflation. The dollar was steady.
Crude was higher after OPEC+ proceeded with an output hike but left room for quick adjustments.
- 1 Ashoka Buildcon Emerges As Lowest Bidder For Goa Six Lane Link Road Construction Project
- 2 Larsen & Toubro Advances After Announcing Tie Up With ReNew Power For India Green Hydrogen Projects
- 3 Hindustan Zinc Climbs The Most In Six Weeks After Announcing It Will Consider Interim Dividend On December 7
- 4 3i Infotech Has 1.07 Million Shares Change Hands In A Bunched Trade
- 5 Top Research Reports By Neal Bhai
- 6 Offerings
- 7 Stock Market News & Pledge Share Details
- 8 Insider Bulk Deals
- 9 Insider Trades
- 10 Who’s Meeting Whom
- 11 Trading Tweaks Stock Market News
- 12 Money Market Updates By Neal Bhai
- 13 Gujarat Fluorochemicals Up 25% In Three Sessions
- 14 KEC Shares Edge Higher After Company Secures Orders Worth Rs 1,065 Crore
- 15 IEX Jumps Nearly 15% In Intraday Trade As Stock Turns Ex-Date For 2:1 Bonus Shares
- 16 Tega Industries IPO Subscription Status: Day 3 Live Updates
Ashoka Buildcon Emerges As Lowest Bidder For Goa Six Lane Link Road Construction Project
Shares of Ashoka Buildcon Ltd. rose nearly 5%, the biggest intraday gain in six weeks, to Rs 101.3 apiece after the company emerged as the lowest bidder for the construction of six lane link road in Goa on EPC mode. The quoted bid price of the project is Rs 769.41 crore, the company said in an exchange filing.
Of the 18 analysts tracking the company, 17 maintained ‘buy’ and one maintained ‘hold’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 61%.
Larsen & Toubro Advances After Announcing Tie Up With ReNew Power For India Green Hydrogen Projects
Shares of Larsen & Toubro Ltd. rose over 3%, the biggest single day gain in a month, to Rs 1,844.8 apiece after announcing partnership with ReNew Power to jointly develop, own, execute and operate green hydrogen projects in India.
- In an exchange filing, the company said that green hydrogen demand would grow up to 2 MMTPA by 2030 for applications like refineries, fertilisers and city gas grids.
- L&T and ReNew Power would bid jointly from green hydrogen projects by industries. The two companies would float separate SPVs for individual projects.
- L&T’s managing director SN Subrahmanyan said that the company is mulling entry into manufacturing of electrolyzers and grid scale stationary batteries.
- Of the 42 analysts tracking the company, 40 maintained ‘buy’, one maintained ‘hold’ and one maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.5%. Trading volume on the stock was 1.7 times the 30-day average volume, for this time of the day.
Hindustan Zinc Climbs The Most In Six Weeks After Announcing It Will Consider Interim Dividend On December 7
Shares of Hindustan Zinc Ltd. rose over 4%, the biggest intraday gain in over 6 weeks to Rs 346.95 apiece after the company said that its board of directors will consider and approve dividend on equity shares on December 7.
- In an exchange filing, the company said that the record for eligibility for interim dividend will be December 15.
- Of the 20 analysts tracking the company, four maintained ‘buy’, eight maintained ‘hold’ and eight maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9.2%.
- 3i Infotech has 1.07 million shares change hands in a bunched trade.
- Details of buyers and sellers are not immediately known.
Top Research Reports By Neal Bhai
- Reliance Capital: RBI has initiated insolvency proceedings against the company. The central bank has filed insolvency application at Mumbai bench of NCLT. Interim moratorium will commence from date of filing till admission/rejection.
- Biocon: Biocon Pharma, a subsidiary of the company, received approval of its ANDA for Mycophenolic Acid from the U.S. FDA.
- Unichem Laboratories: The company has received ANDA approval for its Aripiprazole Tablets USP from the U.S. FDA.
- Bharti Airtel: The company has given a clarification on report of talks to buy stake in Dish TV. As a matter of policy, we do not comment on media speculation or reports, Bharti Airtel said. The company evaluates various opportunities of restructurings, alliances or acquisitions and other similar avenues as per its requirements in the ordinary course of business.
- NHPC: To consider the proposal regarding monetisation of Return on Equity of one power station of the company through securitisation for suitable tenure on December 7.
- Apollo Pipes: Crisil Ratings has upgraded the long-term credit rating of bank loan facilities– of Rs 180.2 crore– of the company to A/stable and short-term rating to A1.
- India Tourism Development Corporation: Ministry of Tourism has appointed Sambit Patra as part time non-executive director and chairman of the company for three years.
- Sona BLW Precision Forgings: India Ratings & Research has upgraded the company’s long-term issuer rating to AA from AA- and the outlook is stable.
- Delta Corp: Waterways Shipyard, an associate company of Delta Corp, to acquire 50% stake in WSPL Containers for Rs 5 crore. The acquisition is expected to be completed by December 31.
- DCB Bank: The bank has revised Marginal Cost of Funds based Lending Rate across tenors. It has also revised its Base Rate to 10.50% per annum from the earlier Base Rate of 10.64% p.a. The revised rates will be applicable with effect from December 6, 2021.
- Hindustan Zinc Board: To consider interim dividend on December 7; the record date for eligibility for interim dividend will be December 15.
Offerings
- Star Health and Allied Insurance Co.’s IPO was subscribed 79% on the final day.
- The Rs 619-crore initial public offering of Tega Industries was subscribed 13.87 times on the second day.
- Anand Rathi Wealth IPO was subscribed 1.6 times on the first day.
- Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 5.60 lakh shares between November 29-30.
- Cholamandalam Financial Holdings: Promoter Lakshmi Ramaswamy Family Trust created a pledge of 1.25 lakh shares on November 29.
- Emami: Promoter Sneha Enclave created a pledge of 1.76 lakh shares on November 30.
- Swan Energy: Promoter Dave Impex created a pledge of 51 lakh shares on November 30.
- Wockhardt: Promoter Themisto Trustee Company created a pledge of 4 lakh shares on November 30.As reported on December 2.
Insider Bulk Deals
- Redington (India): Marina IV (Singapore) Pte sold 54.40 lakh shares at Rs 150.42 per share.
- Kirloskar Oil Engines: Franklin Templeton Mutual Fund India Taxshield Open bought 10 lakh shares (0.69%) at Rs 180 per share. Franklin Templeton Mutual Fund India Prima Plus bought 30 lakh shares (2.07%) at Rs 180 per share. Nalanda India Fund sold 52 lakh shares (3.60%) at Rs 180.92 per share.
- Karda Constructions: Societe Generale bought 36 lakh shares (0.59%) at Rs 16.65 per share.
Insider Trades
- Aditya Birla Capital: Promoter Birla Group Holdings bought 3.87 lakh shares on November 26.
- Bajaj Holdings & Investment: Promoters (Bachhraj & Company and Bachhraj Factories) bought 1.14 lakh shares between November 29-December 1.
Bajaj Auto: Promoter Maharashtra Scooters bought 30,000 shares on December 1. - DB Realty: Promoter Vinod Goenka HUF bought 10,000 shares on December 1.
- Grasim Industries: Promoter IGH Holdings bought 3 lakh shares between November 26-30.
- Lincoln Pharmaceuticals: Promoters (Ashish Patel, Jigar Patel and Aniruddh Patel) bought 70,500 shares between November 30-December 1.
- Meghmani Finechem: Promoters (Maulik Patel, Ashishbhai Soparkar, Patel Karana and Meghjibhai Patel) bought 41,309 shares on December 1.
- Shoppers Stop: Promoter Neel Raheja bought 20,000 shares on November 30.
- Star Cement: Promoter Prem Bhajanka bought 42,560 shares on November 29.
Who’s Meeting Whom
- Nuvoco Vistas Corporation: To meet Principal Mutual Fund and DAM Capital on December 3.
- Puravankara: To meet India Capital Fund, Old Bridge Capital Management, Premji Invest, Tata Mutual Fund and Value Quest Investment Advisors on December 3.
- Kalyan Jewellers India: To meet Rare Enterprises on December 6.
- Adani Green Energy: To meet equity research analyst on December 6-7.
- Accelya Solutions India: To meet Nirmal Bang Securities on December 7.
- IIFL Finance: To meet Motilal Oswal AMC on December 7.
Trading Tweaks Stock Market News
- Ex-Date Bonus Issue: Indian Energy Exchange
- Move Into Short-Term ASM Framework: PNB Housing Finance, Aurionpro Solutions
Money Market Updates By Neal Bhai
- The rupee ended at 74.99 against the U.S. Dollar on Thursday as compared to Wednesday’s closing of 74.91.
F&O Cues
- Nifty December futures ended at 17,439.90; a premium of 38.25 points.
- Nifty December futures added 0.51% and 1,206 shares in Open Interest.
- Nifty Bank December futures ended at 36,655; a premium of 146.75 points.
- Nifty Bank December futures shed 4.09% and 4,048 shares in Open Interest.
- Securities in the ban list: Indiabulls Housing Finance
- Securities added to the ban list: Vodafone Idea
Gujarat Fluorochemicals Up 25% In Three Sessions
Shares of Gujarat Fluorochemicals Ltd. climbed nearly 10% to a record Rs 2,539.7 apiece. Over the past three sessions, the company’s stock has risen 25%. On December 1, brokerage firm ICICI Securities initiated coverage on the stock with a ‘buy’ recommendation, with a price target of Rs 3,086, an implied return of 49.81%.
ICICI Securities
- Gujarat Fluorochemicals is in a sweet spot as rising demand for fluoropolymers driven by battery, solar panel and green hydrogen verticals.
- Expansion into other fluorine derivatives provides an avenue for sustained growth as it expands the company’s addressable market.
- Company’s bold capex plan of Rs 2,500 crore over the next three years likely to lead to earnings growth of 45.9% CAGR over FY21-24E (on low base).
- Expect RoCE (post-tax) to improve from 6.7%-18% over FY21-24E.
- High entry barriers in fluoropolymers augur well for the company as the requirement of expertise in managing the reactive chemistry of fluorine, specifics of loading, storage and transport of the material, restriction in the supply of R-22 (for TFE monomer) and R-142B (for VDF monomer) and long gestation period in the business lends an advantageous position.
- Company remains the sole manufacturer of fluoropolymers in India and is among the very few players outside China with a large fluoropolymer portfolio.
- Gujarat Fluorochemicals has an edge in specialty fluoropolymers segment as well in which China has limited global presence.
- Expect fluoropolymer revenue to grow at 32.9% CAGR over FY21-24E
- Battery chemicals and other new-age verticals to offer the company a huge option value.
- Efforts to reduce working capital to 100 days from 164 days in FY21 along with utilisation of advances should aid free cash flow.
- Expect the company to have very little net debt at the end of the forecast period.
- Stock is trading at P/E multiple of 20xFY24 which is reasonable compared to peers like 42.1x for Navin Fluorine and 27.5x for SRF.
Of the five analysts tracking the company, four maintained ‘buy’ and one maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of over 10%.
Shares of KEC International Ltd. rose 4%, the biggest intraday gain in two weeks, to Rs 449.8 apiece, after the company bagged new orders worth Rs 1,065 crore across various businesses, including transmission and distribution, railways, civil, oil and gas pipelines and cables.
The company’s YTD order stood at Rs 11,000 crore, up 2.5 times YoY.
Of the 32 analysts tracking the company, 24 maintained ‘buy’, seven maintained ‘hold’ and one maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.8%
Shares of Indian Energy Exchange Ltd. rose nearly 15%, the biggest intraday gain in six weeks, to Rs 278.7 apiece on the BSE, as the stock turned ex-date for 2:1 bonus shares.
The company has fixed December 6 as the ‘record date’ to ascertain the eligibility of shareholders entitled for the issuance of bonus equity shares of the company.
Of the 16 analysts tracking the company, seven maintained ‘buy’, five maintained ‘hold’ and four maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12.6%. Trading volume on the stock was 7.3 times the 30-day average volume, for this time of the day.
Tega Industries IPO Subscription Status: Day 3 Live Updates
Retail investors continued to piled in on the third day of the Rs 619-crore initial public offering of Tega Industries.
Subscription Details: Day 3
The IPO was subscribed 17.25 times as of 11 a.m. on Dec. 3.
- Institutional investors: 4.15 times.
- Non-institutional investors: 27.99 times.
- Retail investors: 20.14 times.
Analyst Actions: BPCL, Indian Oil
- BPCL raised to ‘buy’ from ‘accumulate’ at Elara Securities; price target: Rs 493
- Indian Oil raised to ‘buy’ from ‘accumulate’ at Elara Securities; price target: Rs 148
Vodafone Idea Jumps To Highest In Two Years; RSI Above 70
Shares of Vodafone Idea added 15% in intraday trade to Rs 14.7 apiece to the highest in two years (higher than any close since May 13, 2019).
- Trading volume on the stock was triple the 20-day average volume, for this time of the day.
- Relative strength index on the stock was above 70, indicating it may be overbought.
- Analysts have no ‘buy’, six ‘hold’ and 15 ‘sell’ recommendations on the stock.
SPARC Enters Into Licensing Agreement With Biomodifying To Acquire Exclusive Rights For Antibody Against Unique Oncology Target
Sun Pharma Advanced Research Company Ltd. (SPARC) announced an agreement with Biomodifying LLC to exclusively license Biomodifying’s intellectual property, including patents and patent applications.
Under the agreement, Biomodifying is eligible for an up-front payment, milestone payments on pre-specified clinical, regulatory and commercialised milestones, as well as royalties on sales, the company said in an exchange filing.
SPARC will also pay Biomodifying a percentage of payments received for sublicenses of the licenses IP.
Source: Bloomberg
