The Daily

The Daily
August 10, 2022
 The Daily

DOMESTIC INDICES Indian markets could open flat to mildly lower, in line
with mostly lower Asian markets today and lower US
CLOSE POINTS % CHANGE
markets on Tuesday..…
SENSEX 58853 465 0.80
NIFTY 17525 128 0.73 The S&P 500 and Nasdaq Composite indexes failed to hold
onto earlier gains on Monday, while the Dow Jones
MIDCAP 24556 77 0.31
Industrial Average finished slightly higher, as investors
SMALL CAP 27682 77 0.28 await this week’s consumer-price index report for July,
which could lead to expectations for further Fed
SECTORAL INDICES tightening. Stocks failed to hold onto gains, with a gloomy
forecast from Nvidia Corp. weighing on technology shares
CLOSE POINTS % CHANGE and traders awaiting inflation data for clues on the pace of
CG 30291 593 2.00 Federal Reserve rate hikes.
POWER 4777 90 1.92
METAL 18588 234 1.27 U.S. consumers' expectations for where inflation will be in
a year and three years dropped sharply in July, a New York
AUTO 29674 309 1.05
Federal Reserve survey showed on Monday, a win for
Fi nance 8203 71 0.87
policy makers.
BANKEX 43852 301 0.69
CD 40341 230 0.57 U.S. stocks finished lower on Tuesday as anxieties about
Hea lthcare 23254 69 0.30 looming inflation data and a selloff in semiconductor
TECK 13867 28 0.20 stocks drove the S&P 500 to its fourth straight losing
session. Stocks fell as warnings from semiconductor
REALTY 3490 4 0.10
stalwarts Nvidia Corp and Micron Technology Inc. rattled
IT 30393 7 0.02 chip stocks even as President Joseph Biden signed the
OIL & GAS 19330 -6 -0.03 bipartisan Chips and Science Act into law. Meanwhile,
anxieties ahead of inflation reports due out Wednesday
and Thursday helped to put the market’s recent rally on
BSE 200 GAINERS/LOSERS
pause.
GAINERS % LOSERS %
JSWENERGY 9.06 HINDPETRO -4.65 Economists polled by FactSet expect headline CPI to slow
to 8.7% in July (vs 9.1% in June), but a hotter-than-
HAL 8.09 YESBANK -3.90
expected reading on either the headline number, or the
PAYTM 6.46 ALKEM -3.43 core number — which strips out volatile food and energy
SIEMENS 4.66 BPCL -3.14 prices — could rattle markets.
ADANITRANS 4.39 MFSL -3.07
Stocks dipped in Asia on Wednesday following a Wall
Street r etreat and caution ahead of US inflation data that
ADVANCE/DECLINES will shape investor expectations for further Federal
Reserve interest-rate hikes. Chinese shares wavered as
BSE % traders evaluated slower-than-anticipated consumer and
ADVANCES 1942 53 factory inflation in the world’s second-largest economy. In
DECLINES 1556 42 China, consumer price inflation accelerated in July to 2.7%,
the highest level in two years, but missed economists’
UNCHANGED 172 5
expectations. The producer price index climbed 4.2%,
below the median forecast and down from June.
INSTITUTIONAL ACTIVITY
Nifty picked up pace after a dull opening on Aug 08 to
Rs Cr 05-08-2022 08-08-2022 AUG TOTAL close near the intra day high formed at 1335 Hrs. At close,
FII 1606 1450 9488 Nifty was up 0.73% or 127.6 points at 17525.1.
DII -496 -141 -1907

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 The Daily

Nifty broke out upwards after sideways close for three

GLOBAL INDICES sessions. The continued rise in indices though perplexing in
CLOSE POINTS % CHANGE
the face of concerning macro developments globally has
improved sentiments on equity markets. Nifty could now
DOW JONES 32774 -58.13 -0.18 face resistance in the 17595-17651 band while 17408 could
S & P 500 4122 -17.59 -0.42 offer support.
NASDAQ 12494 -150.53 -1.19
FTSE 7488 5.78 0.08 JSW Steel crude steel output grows 14 pc to 15.69 LT in
July
CAC 6490 -34.44 -0.53
JSW Steel on Tuesday posted 14 per cent year-on-year
DAX 13535 -152.72 -1.12 growth in its crude steel output to 15.69 lakh tonne (LT) in
NIKKEI 27775 -225.46 -0.81 July 2022. The company had produced 13.82 LT crude steel
SHANGHAI 3234 -13.24 -0.41 in July 2021. The production of flat rolled products rose 15
per cent to 10.72 LT in July 2022, from 9.34 LT in the same
HANG SENG 19626 -377.44 -1.89
month last year. Its long rolled products output also
BOVESPA 108651 249.00 0.23 registered a 19 per cent rise to 3.65 LT against 3.06 LT a
year ago. the company will invest over Rs 48,700 crore over
the next thr ee years as part of its capex (capital
EXCHANGE RATES
expenditure) plan, of which Rs 20,000 crore has been
VALUE % CHANGE earmarked for 2022-23
USD/INR 79.6 0.20
NTPC seeks to raise Rs 12000cr via bonds; aims to achieve
EURO/USD 1.022 0.05 75 GW capacity by Aug 2023
USD/GBP 1.208 0.00 Government-owned NTPC is planning to raise funds
USD/JPY 135.1 -0.05 aggregating to Rs 12,000 crore through non-convertible
debentures on a private placement basis. The company
seeks in the upcoming annual general meeting (AGM). In
COMMODITIES the company's annual report, the chairman Gurdeep Singh
said NTPC is focused on strengthening its base of existing
VALUE % CHANGE businesses while building new business models. NTPC is also
GOLD ($ / Oz) 1810.2 -0.12 planning to achieve 75 GW capacity by August 15 next year.
SILVER ($ / Oz) 20.5 0.01
Tech Mahindra acquires its two South African joint
CRUDE OIL FUTURES 90.3 -0.28 ventures
BRENT OIL ($ / Tech Mahindra said it acquired entire stakes in its two South
96.1 -0.19
Ba rrel) African joint ventures -- Tech Mahindra South (Pty) Limited
and Tech Mahindra Holdco Pty Ltd -- for about Rs 30 crore.
BOND YIELD The company will acquire 49 per cent stake in Tech
Mahindra South (Pty) and 4 per cent in Mahindra Holdco
VALUE ABS CHANGE
Pty Ltd from its partner Falcorp Technologies which is
IND10 YEAR BOND exiting the joint venture. Tech Mahindra has acquired stake
7.348 +0.048
YIELD on immediate basis in these two companies in cash
transaction amounting to 62 million South African Rand or
about Rs 29.69 crore.
ADR
VALUE % CHANGE Reliance Retail invests Rs 30,000 cr in FY22, customer base
DR REDDY’S LAB 52.9 -0.49 climbs 193 mn
Reliance Retail made investments to the tune of Rs 30,000
HDFC BANK 63.1 0.00
crore in the FY22. The company built capabilities through
ICICI BANK 21.3 0.79
organic growth, acquisitions, and strategic partnerships in
TATA MOTORS 29.5 -0.17 the fiscal. Also, the Reliance Industries-backed company
WIPRO 5.37 -1.10 continued to invest in network and infrastructure expansion
VEDANTA LTD 16.50 0.00 as well as strengthening its Digital and New Commerce
INFOSYS 20.18 -0.44 capabilities.

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IOC to transport fuel to Tripura via Bangladesh

Indian Oil Corporation (IOC) will soon conduct a trial run for transporting fuel to Tripura through Bangladesh, an official
said on Tuesday. During the trial run, the IOC will transport three LPG tankers and seven tankers of petrol and diesel
through Bangladesh from Guwahati. Each LPG tanker can transport 17 mt of gas, while each oil tanker has the capacity
of carrying 12,000 liters. IOC has already signed an agreement with the Bangladeshi authorities in Dhaka on August 3.

GAIL to double share capital; add specialty chemicals, clean energy to business
GAIL (India) Ltd wants to double its share capital as well as add specialty chemicals and clean energy to its line of
business as it looks to diversify business beyond natural gas transmission and distribution. GAIL has sought shareholder
approval to increase the authorised share capital of the company to Rs 10,000 crore from the current Rs 5,000 crore to
help raise finance for its expansion plans over the next 3-4 years.

Bharti Airtel Ltd Q1FY23 results key takeaway

Bharti Airtel numbers were above expectations in Q1FY23 and the company has strong business momentum led by
leading operational indicators.

Reported numbers
• Consolidated revenue gr ew by 22.2% YoY to Rs 32,804 crore vs expectation of Rs 32,280 crore in Q1FY23, driven by
rapidly increasing demand for data, connectivity related solutions, tariff hike benefit and CPaaS (Communication
Platform as a Service).
• EBITDA was up by 27.3% YoY to Rs 16,529 crore.
• EBITDA margin ramped up by 210bps YoY to 50.4% in Q1FY23.
• Net Profit stood at Rs 2,469 crore in Q1FY23, supported by healthy operating profit vs. expectation of Rs 1400 crore.
Net profit was at Rs 941 crore in Q1FY22.
•PAT margin stood at 7.5% in Q1FY23 vs. 3.5% in Q1FY22.

Segment wise performance

• Mobile services from India revenues (contributed 53.5% of revenue) gr ew by 27.4% YoY on account of increase in 4G
customer base and increase in ARPU.
• Mobile Service from Africa (contributed 28.5% of r evenue) increased by 18.6% YoY, led by increase in ARPU and strong
4G customer additions.
• Mobile Service from South Asia (contributes 0.2% of revenue) decreased by 30% YoY in Q1FY23.
• Airtel Business (contributed 12.8% of revenue) increased by 4.4% YoY, on the back of robust demand for data portfolio
and emerging businesses.• Home Services (contributed 2.7% of revenue) increased by 5.7% YoY, led by strong customer
additions.
•While, Digital TV Services (contributed 2.2% of revenue) marginally declined by 1% YoY, Digital TV continued to hold its
strong market position.

Subcribers
• As of June 30, 2022, the company’s overall customer base stands at ~497 million across 16 countries with India having
~362 mn customers and Africa stands at 131.6 mn.
•4G customers up by 20.8 Mn YoY & 4.5 Mn QoQ, 63% of overall customer base,
• Homes business reported continued momentum, net additions of 1.4 Mn in Q1FY23 YoY.
• Mobile data consumption up by 16.6% YoY, consumption per mobile data customer at 19.5 GB per
Month in Q1FY23 vs. 18.8 GB per month in Q4FY22
•Digital TV customer base was at 17.4 Mn in Q1FY23 vs. 17.6 Mn in Q4FY22.
• Airtel Payments Bank continued to witness accelerated adoption leading to increase in monthly transacting users by
65% YoY.

ARPU
Average revenue per user (ARPU) continued to be best in industry as Q1FY23, ARPU came in at Rs 183 vs. Rs 178 in
Q4FY22, Rs 163 in Q3FY22, Rs 153 in Q2FY22 and Rs 146 in Q1FY22 on a comparable basis.

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Capex
• Consolidated capex spend in the quarter was Rs 6,398 crore out of which capex in India stood at Rs 5,288 crore while
Africa contributed the capex of Rs 1,088 crore in the quarter.

Key Development
•Airtel procured 19,867.8 MHz spectrum for Rs 43,040 crore in the recently concluded 5G spectrum.

Earnings and valuation

•Earnings per share was at Rs 2.8 in Q1FY23 and Rs 3.6 in Q4FY22. At a CMP of Rs 704, stock trades at 6x FY24E
EV/EBITDA.

Indraprastha Gas Ltd (IGL) Q1FY23 results key takeaway

IGL numbers were above expectations in Q1FY23, the company reported robust growth and reflects a strong recovery.
However, margin contraction could be a challenge over the medium term due to higher input cost.

Consolidated net revenue gr ew by almost two and half fold than same quarter previous year. Reported net revenue at
Rs 3194 crore in Q1FY23.

EBITDA was up by 62% YoY to Rs 618 crore in Q1FY23 and EBITDA margin slipped to 19.3% in Q1FY23 vs. 30.3% in in
Q1FY22. Net Profit increased by 73% YoY at Rs 481 crore in Q1FY23, supported by strong revenue growth. PAT margin
was at 15.1% in Q1FY23 vs. 22.1% in Q1FY22.

Overall sales volume was at 717.84 million standard cubic meters (mscm) in Q1FY23 vs. 483.77 mscm in Q1FY22. It
registered an average daily sale of 7.89 million standard cubic meters in the quarter as compared to 5.32 million
standard cubic meters per day sales in the year-ago period.

CNG registered sales volume at 539.8 million standard cubic meters in Q1FY23 vs. 331.78 million standard cubic meters
in Q1FY22, 63% YoY growth. PNG overall sales volume growth of 17% in the quarter on YoY basis at 178.04 million
standard cubic meters.

CNG registered sales (value) growth of 177% YoY and PNG 107% in the the quarter on YoY basis. CNG and PNG revenue
in value term contributed 74% and 26% respectively in Q1FY23.

The company’s EPS in Q1FY23 was at Rs 6.9, and Rs 6.2 in Q4FY22. At a CMP, stock trades at 18x FY24E EPS.

eClerx Ltd Q1FY23 results key takeaway

eClerx numbers were below expectations in Q1FY23. The company proposed bonus issue in the ratio of 1 new equity
share for every 2 equity shares held.

eClerx consolidated revenue gr ew by 4.4% QoQ and 27.1% YoY at Rs 726 crore in Rupee terms. Constant currency (CC)
growth by 3.9% QoQ and 25.2% on YoY basis. Revenue in US$, 3% QoQ and to US$ 79.5.
EBIT margin degrew by 23% QoQ to Rs 119 crore and it was up by 1% on YoY basis, EBIT Margin stood at 19.2% QoQ in
Q1FY23, vs. 26% in Q4FY22 and 24.2% in Q1FY22. Net Profit declined by 16% QoQ to Rs 100 crore in Q1FY23 and it
increased by 8% YoY. PAT margin stood at 16.1% in Q1FY23 vs. 20% in Q4FY22, and 18.9% in Q1FY22.

On geography front, North America, Europe and Asia contributed 70%, 22% and 8% in Q1FY23, respectively vs. North
America, Europe and Asia contributed 69%, 23% and 8% in Q4FY22, respectively.

eClerx added six new clients in the the US$ 500K -1 mn category in the quarter, top 10 clients contributed 60% to the
revenue in Q1FY23. The total delivery headcount as of June 30, 2022 stands at 16,067 – an increase of 26.1% YoY

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Total Cash and Cash Equivalents of Rs 763 crore as on June 30, 2022 vs. Rs 681 crore as on March 31, 2022, equivalent
to Rs 230.5 per share Q1FY23 vs Rs 205.6 for Q4FY22. Earnings per share was at Rs 29.4 in Q1FY23, and Rs 35.2 in
Q4FY22. At a CMP of Rs 2306, stock is trading at at 15.5x FY24E EPS.

NALCO Q1FY23 Result Update

Revenue for the quarter stood at Rs 3,783 cr, +53%/-12.8% YoY/QoQ. EBITDA for the quarter stood at Rs 848cr, +46%/-
47.6% YoY/ QoQ. EBITDA margin was at ~22%, -100bps/-1500bps YoY/QoQ. Repor ted PAT for the quarter stood at Rs
558cr, +60.8%/-45.6% YoY/QoQ. EPS for the quarter stood at Rs 3.04. The stock is currently trading at 3.76x F24E
EV/EBITDA. The board recommended final dividend of Rs 1.50/- per share for FY22.

Narayana Hrudayalaya Ltd Q1FY23 Result Update

Overall result was better than expectation. Revenue for the quarter stood at Rs 1033.4cr, +20.2%/9.9% YoY/QoQ .
EBITDA for the quarter was at Rs 191.9cr, +43.3%/9.7% YoY/QoQ. EBITDA Margin expanded 300bps/flat YoY/QoQ and
stood at 18.6%. PAT for the quarter stood at Rs 110.5cr, +45.1%/+60.4% YoY/QoQ . EPS for the quarter stood at Rs 5.45.
The stock is currently trading at 15.3x FY24E EV/EBITDA.

Amber Enterprises Ltd Q1FY23 Result Update

Revenue was above expectation, while margins came in below expectation. Revenue for the quarter stood at Rs
1825.7cr, +158%/-5.7% YoY/QoQ. Gross Margins stood at 14.4% (-240bps/ +58bps YoY/QoQ). EBITDA for the quarter
stood at Rs. 99.2cr, +135.3%/-20.8% YoY/QoQ. EBITDA Margin contracted 52bps/103bps YoY/QoQ and stood at 5.4%.
Adjusted PAT for the quarter stood at Rs 42.1cr, +238.5%/-26.4% YoY/QoQ. EPS for the quarter stood at Rs 12.48. The
stock is currently trading at 25x FY24E EPS.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) – Q1FY23 Result update
Revenue for Q1FY23 at Rs. 2696 Cr, up 93.4 % YoY and down 2.7 % QoQ . Gross Margins for Q1FY23 at 56.86% (-520 bps
YoY, 235 bps QoQ). EBITDA for Q1FY23 at Rs 762 Cr, up 94% YoY and down 14% QoQ and EBITDA Margins for Q1FY23 at
28.26% (8 bps YoY, -370 bps QoQ)

Reported PAT for Q1FY23 at Rs. 571 Cr, up 136% YoY and down 11% QoQ. While all business segments have witnessed
positive results, the key driver of profitability is chemical realisation buoyancy. The Q1FY23 Operating Revenue at Rs
2,696 Cr is historical highest which is 68% higher than previous highest ever first quarter revenue r ecorded in Q1FY19.
Although as compared to Q4FY22 volumes and operating margins are slightly lower due to some operating disturbances
mainly in urea production apart from market related issues in chemicals like Aniline and Formic Acid. In product like
methanol due to skewed trends of natural gas vs. methanol, buying methanol offered better opportunity to save on
costs as against in-house production.

Capex Update:
Formic Acid: Brown field expansion project is completed with commercial production as well as plant stabilisation phase
is over. This is adding capacity by 6,800 MTPA. The project cost of Rs 53 Cr.

Concentrated Nitric Acid: During FY23, Concentrated Nitric Acid plant with a capacity of 50,000 MTPA. is expected to be
commissioned by Q4.

Renewal Power Capex: In addition to 10 MW Solar Power Plant operationalised during last FY, additional 4 MW Solar
Power Plant with capex size of Rs 26 Crs is expected to be commissioned during current FY23.

Capacity adding brownfield projects: Ammonia capacity enhancement project with additional capacity of 50,000 MTPA
Weak Nitric Acid project with a capacity by 2,00,000 MTPA and Ammonium Nitrate Melt project with capacity of
1,63,000 MTPA are on track. The total capex size of these projects is around Rs1,350 Crs.

Others: Capex proposals for further foray into Green Hydrogen, Green Ammonia, Polycarbonate and other chemicals are
at active evaluation stage. Estimated capex on account of these projects is around Rs 2,900 Cr

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The company is hopeful of maintaining the momentum keeping its continuous focus on improving operating margins
with its focus on value accretive capex while keeping a sharp focus on current product mix.

Mirza International Ltd. – Q1FY23 Result update

Overall results were in-line with expectations. Revenue for Q1FY23 at Rs. 484 Cr, up 92.2% YoY and up 8.8% QoQ. Gross
Margins for Q1FY23 at 44.97% (-120 bps YoY, -277 bps QoQ). EBITDA for Q1FY23 at Rs 76 Cr, up 112.5% YoY and up
7.9% QoQ. EBITDA Margins for Q1FY23 at 15.71% (150 bps YoY, -13 bps QoQ) and Reported PAT for Q1FY23 at Rs. 41 Cr,
up 255% YoY and up 37% QoQ.

Granules India Q1 FY23 result update

Granules reported healthy performance for the quarter. Revenue grew 20% YoY at Rs 1019.5cr as compared to estimate
of Rs 1053cr. EBITDA margin slipped 300bps YoY at 20.7 % as against expectation of 21.5%. Gross margin dipped 460bps
YoY and at 49.6%. Net profit grew 6% YoY at Rs 127.6cr.

Pharmaceutical Formulation Intermediates (PFI) segment revenue grew 38% YoY at Rs 237cr, Active Pharmaceutical
Ingredients (API) revenue grew 5% YoY at Rs 234cr and Finished Dosage (FD) business increased 20.7% YoY at Rs 549cr.

During the quarter, the company filed 5 ANDAs, 2 US DMFs. R&D expenses stood at Rs 32cr or 3.1% of sales as against Rs
27cr or 3.2% of sales in Q1 FY22.

Granules derived 38% of revenue from Paracetamol, 25% from Metformin, 12.5% from Ibuprofen, and the balance from
others.

Board approved buyback of 62.5 lakh equity shares at Rs 400 per share. The total buyback size would be around Rs
250cr. It would be through tender offer route. Company has fixed record date as Aug 23, 2022 for the said buyback.

EPS for the quarter stood at Rs 5.1. Net debt stood at Rs 613cr as on Jun-2022. At CMP, the stock trades at 13x FY24E
EPS.

Natco Pharma Q1 FY23 result update

Revenue increased 115.6% YoY at Rs 884.6cr as against expectation of Rs 914cr. EBITDA margin surged to 44.7% as
compared to 26.8% in Q1 FY22 (estimate of 54%). Net profit increased 327% YoY at Rs 320.4cr.

It included Voluntary retirement scheme (VRS) expenses of Rs 29cr in the quarter.

API revenue stood at Rs 51cr. Export formulations business (incl. subsidiaries) registered significant growth at Rs 737cr.
Domestic formulation revenue stood at Rs 88.5cr.

During the quarter, export sales of gRevlimid to US was a major contributor to revenue and profitability of the business.
Domestic formulations business remained steady. On the expense side, there was a one-time cost associated with
retirement schemes during the quarter and higher than usual R&D costs for product development.

Board declared Rs 3.5 per share as interim dividend. EPS for the quarter stood at Rs 17.5. At CMP, the stock trades at
16x FY23E EPS.

Indoco Remedies Q1 FY23 result update

Revenue increased 5.5% YoY at Rs 408.2cr as against expectation of Rs 428cr. EBITDA margin contracted 490bps YoY to
17.5% as compared to estimate of 20%. Net profit declined 2.8% YoY at Rs 38.6cr. Gross margin contracted 460bps YoY
at 66.5%.

Domestic formulation revenue declined 7% YoY at Rs 200cr. Regulated market revenue grew 15% YoY at Rs 147.7cr.
Emerging Markets revenue gr ew 23% YoY at Rs 29.7cr. The growth in the domestic formulations business was muted
due to the Covid impact and de-growth in two segments, Respiratory and Anti-infectives (ATM & Karvol Plus).

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EPS for the quarter stood at Rs 4.2. At CMP, the stock trades at 17.5x FY24E EPS.

JK Tyre & Industries Q1 FY23 result update

JK Tyre reported strong numbers for the quarter. Revenue increased 39.7% YoY and 10% QoQ at Rs 3643cr. EBITDA
margin dipped 290bps YoY and improved 90bps QoQ at 7.8%. Gross margin slipped 580bps YoY at 29.6%.

PBT before exceptional items grew 136% YoY at Rs 91.6cr. Net profit declined 7.5% YoY at Rs 37.2cr. Other Income
declined 35% YoY at Rs 6.55cr.

India revenue increased 35% YoY at Rs 3059cr. Mexico business grew 43% YoY at Rs 673cr.

Company achieved its highest ever sales in the quarter. There has been a healthy pickup in demand in both for
passenger and for commercial tyres, both in the replacement and original equipment markets (OEM). Raw material and
other input costs witnessed an on-going uptrend, thus impacting margin and profitability. Company has undertaken
multiple price revisions though not to the full extent and will pursue further opportunities.

Cavendish Industries Ltd. and JK Tornel, Mexico, subsidiaries of the company have also seen strong growth in the
quarter.

Earlier, the company said that it will reduce its long-term borrowings significantly over the next 3 years. Board had
approved PCR capacity expansion of Rs 530cr at Banmore tyre plant, MP.

EPS for the quarter stood at Rs 1.51. At CMP, the stock trades at 8.5x FY24E EPS.

SeQuent Scientific Q1 FY23 result update

Revenue gr ew 6.5 % YoY at Rs 341.3cr and in constant currency terms it was up 12.8%. EBITDA margin slipped 550bps
YoY at 3.2%. Gross margin dipped 570bps YoY at 42.4 %. Adj. for ESOPs expenses EBITDA margin stood at 5.9%. Net loss
for the quarter stood at Rs 14cr as against net profit of Rs 1cr, a year ago.

Formulations business grew 19.5% on constant currency basis, driven by strong performance in LatAm within the overall
Emerging Markets region. API revenue was subdued owing to impact of a fire incident at Vizag plant in May 2022, as the
operations were hampered for a few days.

API business declined 2.5% YoY at Rs 88.8cr. Formulation business grew 8% YoY at Rs 244.8cr. India formulation business
registered 5% YoY at Rs 23.7cr.

Demand environment remains stable; input cost pressures and supply chain weaknesses continue to impact the
formulations business.

EPS stood at Rs 1.7 for FY22. Net debt stood at Rs 292cr as on Jun-2022. At CMP, the stock trades at 30x FY24E EPS.

Uno Minda Q1 FY23 result update

Revenue increased 59.5% YoY and 5.8% QoQ at Rs 2555cr as against expectation of Rs 2472cr. EBITDA margin improved
120bps YoY at 10.4% as against estimate of 11%. Net profit surged 801% YoY and declined 4% QoQ at Rs 138.8cr. Other
Income was up 57% YoY at Rs 9.7cr.

Minda derived 83% of revenue from domestic market and 17% from International markets.

Switch segment revenue contribution stood at 29%, Lighting at 23%, Castings at 19%, Seating at 10%, Acoustics at 7%
and the balance from others.

Company had won orders worth Rs 513cr from EV segment in FY22 and orders of Rs 470cr in Q1 FY23.

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EPS for the quarter stood at Rs 2.42. At CMP, the stock trades at 29.5x FY24E EPS.

TD Power Systems Q1 FY23 result update

Revenue grew 28 % YoY at Rs 209cr. EBITDA margin improved 600bps YoY at 15.4%. Net profit surged 107% YoY at Rs
21.5cr. Total order inflow in the quarter was at Rs 205cr. As on Jun-2022, the company has order book of Rs 1423cr.

S Chand Q1 FY23 result update

Revenue increased to Rs 107cr as against Rs 35.8cr in Q1 FY22. EBITDA came in at Rs 11.8cr as against loss of Rs 20.8cr.
Net profit stood at Rs 7cr as compared to net loss of Rs 30.5cr. Net working capital days improved significantly and stood
at 162 days and it was at 282 days in Q1 FY22. This was the lowest net working capital days in Q1 in the past 5 years. Net
debt stood at Rs 28cr.

Company guides for 25% revenue growth for FY23. Company would implement 15% price hike across portfolio to
counter higher raw material costs.

Delhivery Q1FY23 Result Update

Delhivery Ltd's consolidated net loss widened to Rs 399 crore during the first quarter ended June 2022 as compared to
loss of Rs 129.6 crore in the same quarter last year. The company's revenue rose by over 32% to Rs 1,745.7 crore from
Rs 1,317.7 crore year-on-year (YoY). The company incurred an Adjusted EBITDA loss of Rs 217 crore in Q1FY23 versus
adjusted EBITDA loss of Rs 58 crore(proforma) in QIFY22

Power Grid Q1FY23 Result Update

State-owned Power Grid registers a 36.63% decline in consolidated net profit to Rs 3,801.19 crore for the quarter
ending June 30, 2022 (Q1FY23) period compared to a profit of Rs 5,998.28 crore in the same quarter last year. Q1 PAT
dropped by 8.55% from Rs 4,156.44 crore in the preceding quarter. The top-line front grew at a slower pace and
recorded single-digit growth in Q1FY23. In percentage terms, the telecom and consultancy business saw strong
performance. Consolidated revenue from operations was at Rs 10,905.21 crore in Q1FY23 compared to Rs 10,218.58
crore - registering a growth of 6.71%. Revenue was up 2.04% from Rs 10,686.77 crore in Q4FY22.

On segment-wise performance, the company's transmission business revenue stood at Rs 10,702.98 crore in Q1FY23
rising by 5.90% yoy, while the consultancy and telecom business registered a revenue of Rs 235.39 crore and Rs 190.32
crore in Q1 of this fiscal with a growth of 50.61% and 60.18% year-on-year.

Adani Ports & SEZ Ltd Q1FY23 Result update

Adani Ports and SEZ Limited on August 8 reported a 16 percent decline in consolidated net profit at Rs 1,072 crore for
the first quarter of FY22-23 against Rs 1,278 crore in the year-ago period. On a sequential basis, the profit was 4.7
percent higher against Rs 1,024 crore earned during the January–March period.

Consolidated revenue of the Gautam Adani-owned company remained flat on-year at Rs 4,638 crore from Rs 4,671 crore
in the year-ago quarter. Sequentially, the revenue was 20.6 percent higher than Rs 3,845 crore recorded in the previous
quarter.

The cargo business generated revenues of Rs 4,090 crore at a YoY growth of 18 percent (this does not include revenues
from Ganagavaram port) while the logistics business generated revenues of Rs 360 crore at a YoY growth of 34 percent.
During the quarter the company handled a total cargo volume of 91 MMT (million metric tonnes) at a YoY growth of 8
percent. This includes 9.09 MMT at Gangavaram port which witnessed a YoY growth of ~8 percent.

The por t business witnessed an 8 percent YoY growth in volumes which aided in an 18 percent YoY growth in its EBITDA
(earnings before interest, tax, depreciation and amortization) at Rs 2,885 crore while the EBITDA for its logistics business
jumped 56 percent on year to Rs 96 crore.

9
 The Daily

HUDCO Q1FY23 Result update

HUDCO r eported net interest income of Rs 620 crore, down 1.8% YoY. Net Inter est Margin stood at 3.28% as compared
to 3.43% in Q1FY22. Pre provisioning operating profit was marginally down at Rs 552 crore. Net Profit increased by 1.8%
YoY to Rs 412 crore. GNPA deteriorated 5bps sequentially to 3.63% while NNPA was stable at 0.51%. Outstanding loan
book increased by 2.4% YoY to Rs 77276 crore. Disbursements during the quarter wer e muted at Rs 433 crore as
compared to 1266 crore in Q1FY22.

AIA Engineering Q1FY23 Result update

The company has reported operating income of Rs 1080 crores during the period ended June 30, 2022, growth of 45.9 %
YoY. Sales volume increased 12.6% to 67,898MT. EBITDA for the quarter stood at Rs 247 crore (+43.8% YoY) while
EBITDA margin contracted 34bps to 22.9%. The company has posted net profit of Rs 190 crores for Q1FY23 against Rs
149 crores in year ago period.

For F.Y. 2022-2023, Company estimates capex of Rs 300 crores which includes Mill Lining Project, Grinding Media
Expansion Project and Hybrid Power Project Wind and Solar Power in addition to general capex. Order book as at 1st
July 2022: Rs. 700 Crores.

Talbros Automotive Q1FY23 Result update

Company reported 11% increase in income from operations to Rs 155 crore. EBITDA increased by 9% to Rs 21 crore.
Profit after tax jumped by 20% to Rs 12 crores. Exports contributed to 26% of revenues.

VST Tillers Tractors Q1FY23 Result update

VST Tillers Tractors' net profit declined 58.1% to Rs 10.05 crore in Q1 FY23 as against Rs 24.01 crore posted in Q1 FY22,
impacted due to mark to market of investments. Net sales rose 21.9% year on year to Rs 235.98 crore in the quarter
ended 30 June 2022. The company's operational EBITDA stood at Rs 23.73 crore decrease of 3.06% YoY, due to
commodity pressure.

Oil India Q1FY23 result preview

Oil India is likely to report revenue growth by 90% YoY to Rs 5707 crore in Q1FY23 and the company could report net
profit at Rs 1910 crore in Q1FY23 vs. Rs 508 crore in Q1FY22. We expec t oil realisation could rise by 60-65% YoY, Oil
sales volume at 0.76 mmt and gas volume at 0.55 bcm in Q1FY23.

Radico Khaitan Ltd. - Q1FY23 Result preview

It is expected to repor t 48% YoY revenue growth led by 98/27/5% YoY growth in P&A/Regular/Non-IMFL with 41% YoY
volume growth (+78% P&A and +28% Popular). Three-year CAGR at 8%. Gross margin to dip by 555bps YoY (-709bps in
Q1FY22) and +71bps QoQ to 42%. The EBITDA margin is expected to contract by 503bps YoY to 10.2% (-325bps in
Q1FY22 and -490bps in Q4FY22). EBITDA is expected to decline by 1% YoY (+22% in Q1FY22, -21% in Q4FY22). Key
monitorables include industry demand trends, commentary on product launches, competitive intensity, pricing strategy
and commodity inflation outlook

Important news/developments to influence markets

 Japan's current account shifted to a deficit of JPY 132.4 billion in June 2022 from a surplus of JPY 739.6 billion in the
same month of the previous year and compared with market expectations of a gap of JPY 703.8 billion

 The Eurozone Sentix Investor Confidence index came in at -25.2 in August from -26.4 in May vs. -24.7 expected. The
index resumed its recovery but failed to ease off recession fears.

 The US Confer ence Board Employment Trends Index decreased in July 2022 to 117.63—down from a downwardly
revised 118.71 in June

10
 The Daily

Index Short term trend Target Reversal CMP S1-S2 R1-R2

Nifty Fut Up 17800 17363 17557.8 17505-17363 17691-17800

Bank Nifty Fut Up 39000 37751 38287.8 37751-37483 38462-39000

Daily Technical View on Nifty

Nifty – 15 min Timeframe chart
Market: Observation
 Markets surged higher on Monday after a shaky
opening. The Nifty rallied through the day. The
Nifty finally gained 15.5 points or 0.09% to close
at 17,397.5. Broad market indices like the BSE
Mid Cap and Small Cap indices gained less,
thereby under performing the Sensex/Nifty.
Market breadth was positive on the BSE/NSE.

Nifty: Short term uptrend still intact

 Zooming into 15 minute chart, we see Nifty
opened on a shaky note, but soon recovered
and rallied higher for the rest of the trading
session.

 While the short term uptrend remains intact, it

Nifty – Daily Timeframe chart is now matured as the 20 period and 50 period
MA on the 15 min chart have flattened.

 The current short term uptrend would reverse

with a move below 17348. Downside targets in
this scenario are at 17161-17061.

Nifty: Daily chart shows index could rise further

 On Daily chart, we can observe that Nifty has
broken out of a 5-day range on Monday.
Technical indicators too are giving positive
signals as the 20 day SMA is above the 50 day
SMA and both these MAs are rising.

 We therefore feel that the uptrend is likely to

continue. The index is however approaching a
strong downward sloping trend line around the
17850 levels which could act as a resistance and
halt the current uptrend, at least temporarily.
Immediate supports to watch for weakness are
at 17348-17215.
 The Daily

OPEN SHORT TERM TRADING CALLS

RECO
NO. RECO COMPANY NAME ENTRY CMP SL TARGET UPSIDE % VALID TILL
DT.
1 8-AUG-22 BUY NIFTY AUG FUT 17549.80-17485 17,560.00 17,450.0 17,780.0 1.3 11-AUG-22
NIFTY 11TH AUG 17600
2 8-AUG-22 BUY 72.85 73.3 44.0 130.0 77.4 15-AUG-22
AUG CALL OPTION
3 29-JUL-22 BUY HCL TECH AUG FUT 937-963.35 967.0 923.0 1,020.0 5.5 5-AUG-22
4 29-JUL-22 BUY AMBUJA CEMENT AUG FUT 376.05-371 382.0 366.0 399.0 4.5 5-AUG-22

5 5-AUG-22 BUY LTTS AUG FUT 3576-3500 3,590.2 3,448.0 3,755.0 4.6 12-AUG-22

6 8-AUG-22 BUY IRCTC AUG FUT 650-640 659.0 634.0 685.0 3.9 15-AUG-22

7 8-AUG-22 BUY LT AUG FUT 1822-1784 1,834.9 1,757.0 1,914.0 4.3 15-AUG-22
8 29-JUL-22 BUY CYIENT 815.15-790 829.9 774.0 875.0 5.4 12-AUG-22
9 2-AUG-22 BUY PTC INDIA 84.40-81.50 82.8 79.8 91.2 10.2 16-AUG-22
10 2-AUG-22 BUY BOMBAY DYEING 102.15-99 100.6 97.0 109.0 8.3 16-AUG-22
11 3-AUG-22 BUY STAR 348.40-336 341.0 330.0 375.0 10.0 17-AUG-22
12 4-AUG-22 BUY CIPLA 1042.50-1013 1,029.6 995.0 1,104.0 7.2 18-AUG-22
13 5-AUG-22 BUY PURVANKARA PROJECTS 95-98.20 99.7 93.0 106.0 6.4 19-AUG-22
14 8-AUG-22 BUY GPPL 83.60-81 83.0 79.5 89.5 7.9 22-AUG-22

OPEN CASH POSITIONAL CALLS

NO. RECO DT. RECO COMPANY NAME ENTRY CMP SL TARGET 1 TARGET 2 UPSIDE % VALID TILL

1 1-AUG-22 BUY AFFLE 1104.9 1106.4 1020.0 1215.0 1330.0 20 1-NOV-22

2 8-AUG-22 BUY TRIVENI TURBINE 192.7 192.6 177.0 210.0 230.0 19 8-NOV-22

*= 1st Target Achieved

12
 The Daily

OPEN E-MARGIN POSITIONAL CALLS

NO. RECO DT. RECO COMPANY NAME ENTRY CMP SL TARGET 1 TARGET 2 UPSIDE % VALID TILL

1 7-JUL-22 BUY GREAVES COTTON* 153.6 162.5 153.6 165.0 186.0 14 7-OCT-22
2 8-JUL-22 BUY FINOLEX CABLE 403.5 427.4 367.0 455.0 485.0 13 8-OCT-22
SAMAVARDHANA
3 19-JUL-22 BUY 125.8 128.6 125.8 134.6 149.0 16 19-OCT-22
MOTHERSON*
4 21-JUL-22 BUY BHARAT FORGE 682.9 712.5 629.0 760.0 790.0 11 21-OCT-22
5 25-JUL-22 BUY MPHASIS 2276.5 2391.2 2099.0 2542.0 2650.0 11 25-OCT-22
6 28-JUL-22 BUY AXIS BANK 719.0 745.6 675.0 764.0 790.0 6 28-OCT-22
7 28-JUL-22 BUY ALLCARGO 297.0 299.5 271.0 327.0 360.0 20 28-OCT-22
BHARAT
8 29-JUL-22 BUY 788.3 863.8 788.3 865.0 938.0 9 29-OCT-22
DYNAMICS*
9 29-JUL-22 BUY CENTURY TEXTILES 826.3 851.2 745.0 915.0 980.0 15 29-OCT-22
10 1-AUG-22 BUY CAPLIN POINT 808.0 813.4 743.0 890.0 980.0 20 1-NOV-22
11 1-AUG-22 BUY GSFC 161.3 163.4 147.0 182.0 197.0 21 1-NOV-22
12 1-AUG-22 BUY HEG LTD* 1180.8 1238.4 1180.8 1302.0 1431.0 16 1-NOV-22
13 2-AUG-22 BUY AVANTI FEEDS* 478.0 512.7 478.0 514.0 620.0 21 2-NOV-22
14 3-AUG-22 BUY IRCON 39.0 39.4 37.0 41.8 45.0 14 3-NOV-22
DEVYANI
15 3-AUG-22 BUY 180.7 188.7 180.7 193.0 205.0 9 3-NOV-22
INTERNATIONAL*
16 3-AUG-22 BUY INFOSYS 1559.4 1619.4 1440.0 1679.0 1800.0 11 3-NOV-22
17 8-AUG-22 BUY ASTRA MICRO 282.0 283.4 250.0 320.0 350.0 24 8-NOV-22

18 8-AUG-22 BUY EXIDE INDS 156.1 158.0 146.0 169.0 184.0 16 8-NOV-22
NIPPON LIFE ASSET
19 8-AUG-22 BUY 304.3 305.3 282.0 326.5 355.0 16 8-NOV-22
MANAGEMENT

*= 1st Target Achieved

13
 The Daily

QUARTERLY RESULTS ANNOUNCED

Q1FY23 YOY (%) QOQ (%)

COMPANY REMARK
SALES (RS CR) NP (RS CR) SALES NP SALES NP

GNFC 2696 571 93.4% 136.3% -2.7% -11.2% Above expectation

Mirza
484 41 92.2% 255.0% 8.8% 36.7% As per expectation
International Ltd.
Narayana
1,033.4 110.6 20.2 45.1 9.9 60.4 Above expectation
Hrudayalaya Ltd
Revenue above
Amber expectation,
1,825.73 42.08 157.9 238.5 -5.7 -26.4
Enterprises Ltd margins below
expectation.
Bharti Airtel 32804.6 2468.8 22.2 162.2 4.1 -33.5 Above Expectations

Indraprastha Gas 3193.9 481.2 154.0 73.1 32.7 11.7 Above Expectations

eClerx Services 617.8 99.5 27.1 8.1 4.4 -16.0 Below Expectations

HUDCO 619.6 411.7 -1.8 1.8 2.0 -44.9 As per expectations

AIA Engineering 1079.7 190.5 45.9 27.5 -1.2 -2.1 As per expectations
Talbros
153.0 11.9 11.9 19.5 3.3 -5.6 Below expectations
Automotive
VST Tillers &
236.0 10.1 21.9 -58.1 8.1 -54.5 Below expectations
Tractors
Operational
Granules India 1020 128 20.0 6.2 -1.0 15.0 performance lower
than estimates
In line with
Natco Pharma 885 320 115.6 327.2 48.2 -
expectations
Operational
Indoco Remedies 408 39 5.5 -2.8 -0.2 -4.7 performance lower
than estimates
In line with
JK Tyre 3643 37 39.7 -19.7 10.0 -7.5
expectations
In line with
Uno Minda 2555 139 59.5 801.0 5.8 -4.0
expectations
SeQuent Lower than
341 -14 6.5 - -11.0 -
Scientific estimates

*Standalone
LP= Loss to profit
 The Daily

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15