Stock Market Live Updates 19 March 2024: Sensex sheds over 600 pts; Nifty around 21,850; IT, FMCG stocks top drags
Nomura on Tyre Cos
Remain Cautious On The Sector
Sharp Jump In Natural Rubber Prices Another Headwind To Tire Sector Margins
Weak Demand, Rising Commodity Price Could Normalise Margins Faster For The Sector
Natural Rubber Prices In The Domestic Market Have Jumped 23% QoQ
International Rubber Price Increase Has Been Even Steeper, Up 66% QoQ
Domestic Rubber Prices Usually Trade At A 10-15% Premium To Global Prices
There Can Be Further Uptick In The Domestic Rubber Prices
Cos Will Try To Take Price Hikes To Pass On A Part Of The Cost, But Will Be Difficult
Kotak Inst. on IndiGo
Maintain Buy
Target Raised To Rs 4,200 From 3,700
See Supply For Industry Growing At Or Below 12% Till FY30
Co May Add Capacity At A Pace Similar To Or Faster Than Market Over This Period
Current Demand Is Not Yet Fully Addressed By Today’s Supply
Pricing Would Likely Remain Healthy Over Time & Less Prone To Irrationality
Increase The Multiple To 20x
MS on Airlines
DGCA Decides To Not Extend June 1 Deadline For Revised FDTL Norms
FDTL Norms Norms Aim To Mitigate Pilot Fatigue
Expect IndiGo To Share Details On Impact, Co May Need Addl 10-15% Pilots
With Given Tight Capacity, As Some Airlines May Not Be Able To Get All Pilots
Maintain 6% FY25 Capacity Growth Target
MS on HAL
Overweight Call, Target Rs 3,636/Sh
Have Seen A Strong Pick-up In Order Inflows In March 2024
Near-term Prospect Pipeline Remains Strong
Jefferies on HDFC Bank
Buy Call, Target At Rs 1,800
Arvind Kapil Resigning, Is Tad Negative Given His Seniority
Retention & Smooth Transition Will Be Key
Strong Talent Base Is A Comfort
Kotak Inst. on Pidilite
Reiterate Add Call
Target Raised To Rs 3,075 From 2,825
Well Placed To Deliver DD Volume CAGR & Mid-teen EPS CAGR Over FY24-27
Rural Is Growing At 1.5x Urban For Co, Aided By Distribution Expansion
Growth/Pioneer Categories Growing Faster Than The Core Portfolio
Real Estate Upcycle Can Accelerate Growth Of The Core Adhesives Portfolio
Jefferies on Piramal Pharma
Maintain Buy
Target At Rs 170/Sh
Model 12.5% YoY Revenue Growth For FY25, But Co Can Better This Number
15% Revenue Growth Could Drive 45% EBITDA Growth For FY25
Trading At Attractive Valuations Of 14x/12x FY25/26 EV-EBITDA
Earnings Momentum In Place, Valuation Rerating Should Follow
