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Market Outlook
April 20, 2021
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Market Cues
Indian markets are likely to open flat tracking global indices and SGX Nifty.
U.S. stocks closed weak on Monday, coming off historic highs hit in the previous
session, as investors largely stayed cautious amid a lack of triggers, and looked
ahead to more earnings news and economic data. TThe Dow ended down 0.4
percent at 34,078 and the Nasdaq ended down 1 percent at 13,915.
U.K. stocks edged up slightly on Monday as investors cheered the progress of
reopening of the economy amid rapid COVID vaccinations and corona curve
flattening. The benchmark FTSE 100 inched up 0.1 percent to 7,028.
Indian shares succumbed to heavy selling pressure on Monday, though positive
global cues helped markets cut some early losses. Surging Covid-19 cases across
the country amid shortage of essential medicines and oxygen fanned fears of
harsher restrictions and more economic pain affected the markets. The benchmark
BSE Sensex slumped by 1.8 percent to 47,949.
Investor’s Ready Reckoner
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg7 onwards
Top Picks
Company
Rating
CMP
(`)
Target
(`)
Upside
(%)
IDFC First Bank
Buy
51
77
51.9
Galaxy Surfactants
Accumulate
2,574
2,750
6.9
NRB Bearing
Buy
100
150
49.3
Escorts
Buy
1,222
1,573
28.7
More Top Picks on Pg3
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
-1.8
-883
47,949
Nifty 50
-1.8
-258
14,359
BSE MidCap
-1.9
-389
19,769
BSE SmallCap
-1.6
-344
20,674
BSE Bankex
-2.4
-887
35,400
Global Indices
Chg (%)
(Pts)
(Close)
Dow Jones
-0.4
-123
34,078
Nasdaq
-1
-138
13,915
FTSE
0.1
6
7,028
Nikkei
0.0
2
29,685
Hang Seng
0.5
136
29,106
Shang Com
1.5
51
3,478
Advances / Declines
BSE
NSE
Advances
742
379
Declines
2,243
1,595
Unchanged
187
68
Volumes (` Cr)
BSE
3,909
NSE
68,340
Net Inflows (` Cr)
Net
Mtd
Ytd
FII
3,307
22,020
36,837
*MFs
-1,118
-5,678
-18,659
Top Gainers
Price (₹)
Chg (%)
SUPPETRO
584
12.5
ELGIEQUIP
225
15.2
DCMSHRIRAM
695
5.4
MAGMA
116
4.9
HIKAL
189
5.5
Top Losers
Price (`)
Chg (%)
ABFRLPP
133
-8.0
MMTC
39
-7.8
PCJEWELLER
22
-7.4
BANKINDIA
65
-7.3
MAHABANK
24
-7.1
As on April 19, 2021
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Market Outlook
April 20, 2021
www.angelbroking.com
Economic News
RBI constitutes six-member panel headed by former ED to review ARCs
India to waive import duty on coronavirus vaccines
Corporate News
SC stays further proceedings in Amazon-Future-Reliance case before Delhi HC
ICICI Prudential profit falls 64% to Rs 64 cr on pandemic addl provision
Bajaj Consumer posts over two-fold jump in Q4 profit at Rs 55 cr
CC consolidated Q4 PAT up 74% to Rs 563 cr on highest ever revenue surge
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Market Outlook
April 20, 2021
www.angelbroking.com
Top Picks
Company
Market Cap
(` Cr)
CMP
(`)
Target
(`)
Upside
(%)
Rationale
IDFC First Bank
31,429
51
77
51.9
We believe efforts to built liability franchise, fresh
capital infusion and provision taken on wholesale
book will help to tide over this difficult time. The
IDFC First Bank is trading ( 0.7 x FY22ABV) at a
significant discount to historical average
valuations.
Galaxy Surfactants
9,125
2,574
2,750
6.9
Galaxy Surfactants is a market leader in oleo
chemical-based surfactants, which is used in
personal and home care products. The company
has been increasing its share of high margin
specialty care products in it’s portfolio which now
accounts for ~ 40% of it’s revenues while the
balance is accounted for by the performance
surfactant business. The company has a very strong
relationship with MNC clients like Unilever, P&G,
Henkel, Colgate-Palmolive and supplies raw
materials to them not only in India but also in US,
EU and MENA region.
NRB Bearings
974
100
150
49.3
NRB is one of the leading suppliers of bearings to
Auto companies. The company supplies bearings to
two wheelers, PV, CV, Three wheelers and tractors
OEMs and has a wide customer base. The
company has also been focusing on exports
markets in order to diversify its revenue base.
Escorts Ltd
16,481
1,222
1,573
28.7
Escorts is a prominent tractor player domestically
with market share in excess of 11%. With rural
India relatively less impacted due to Covid-19,
record food-grain procurement by government
agencies as well as better than expected Kharif
crop in 2020, we expect the tractor industry will
continue to outperform the larger automobile
space in FY21. The company has also reported a
strong growth of 25.7% YoY in Q3FY21 which is
expected to continue into the fourth quarter driven
by strong demand.
Federal Bank
14,352
72
110
53.0
Federal bank is one of India’s largest old
generation private sector banks with total assets of
Rs. 1.9 lakh cr. with deposits of Rs. 1.56 lakh cr.
and a loan book of Rs. 1.2 lakh cr in F21. NPA’s
have remained steady for the bank over the past
few years with GNPA for Q3FY21 at 3.38% while
NNPA ratio stood at 1.14%. PCR at the end
of Q3FY21 stood at ~67% which we believe is
adequate. Restructuring book is expected to be at
Rs. 1,500-1,600 crore out of which Rs. 1,067 crore
has already been restructured. This is against
earlier expectations of total restructuring of Rs.
3,000-3,500 crore
Carborundum
Universal
9,116
481
600
24.8
Carborundum Universal (CUMI) is part of the
Murugappa group and is a leading manufacturer
of abrasives, industrial ceramics, refractories, and
electro minerals in India having application across
diversified user industries. The company is expected
to benefit from improving demand scenarios across
its end user industries such as auto, auto
components, engineering and others. While
demand from the Auto sector has been robust we
expect demand from metal industry pick up, given
increased economic activity.
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Market Outlook
April 20, 2021
www.angelbroking.com
Continued....
Company
Market Cap
(` Cr)
CMP
(`)
Target
(`)
Upside
(%)
Rationale
Shriram City Union
9,364
1,419
1,800
26.9
Shriram City Union Finance is part of the Shriram group
and is in the high margin business of lending to small
businesses, which account for 57.3% of the loan book as
of end FY20. It reported a strong 50% sequential growth
in disbursement for the quarter which led to a 3.7% qoq
growth in AUM to ~ Rs. 28,500 crore. We are positive on
the company as we believe that the worst is over in terms
of asset quality, which along with growth momentum
should lead to a rerating for the company.
HCL Technologies
2,70,512
997
1,161
16.5
HCL Tech is amongst the top four It services companies
based out of India and provides a vast gamut of services
like ADM, Enterprise solutions, Infrastructure management
services etc. Management has highlighted that demand
and supply related issues are now over for the company
and the deal pipeline has improved significantly since
September led by cloud related services. Management has
guided for 2.0-3.0% qoq growth in revenue in constant
currency terms for the rest of the year providing visibility..
GNA Axles
770
359
500
39.4
GNA Axles is one of the leading suppliers of rear axles to
the Auto industry. GNA is expected to be one of the
biggest beneficiaries of strong growth outlook for truck
sales in US and Europe markets which are witnessing
strong recovery in demand. US which accounts for almost
40% of the company's revenues has been registering
strong class 8 truck sales. At current level the stock is
trading at a P/E multiple of 9xFY23E,given inexpensive
valuations we believe that the stock offers value at current
levels.
PVR
6,169
1,015
1,800
77.3
PVR is the largest multiplex chain in India with 800+
screens across India and multiplex screens are gaining
ground at the expense of single screen. Share prices have
corrected significantly as most of the theaters are
operating at very low capacity utilization due to the lack of
major releases due to the Covid-19 crisis.However, with a
significant decrease in Covid-19 cases over the past few
months we believe that it’s a matter of time before we see
new releases by production houses post April 2021 which
should lead to significant increase in business for the
companies.
Cromptongreaves
Consumer Electricals
23,388
373
480
28.8
CGCEL is of India’s leading fast moving electrical goods
(FMEG) company with a strong presence in the fan and
residential pump category. The company is leveraging its
strong distribution network to expand into other product
categories like water pump, lightings and small appliances
fan business up from 14% in FY17 and is expected to
improve further. Moreover the company has posted a
strong set of numbers for Q3FY21 with revenue growing
by 25.8% YoY to Rs. 1348 crore. PBT for the quarter was
up by 45.6% yoy at Rs. 202.5 crore.
Ashok Leyland
32,261
110
145
31.9
Ashok Leyland Ltd (ALL) is one of the leading players in
Indian CV industry with a 32% market share in the MHCV
segment and has strong presence in LCV segment also.
While demand for the LCV segment has been growing
smartly post the pandemic, demand for the MHCV
segment has also started to recover over the past few
months. We believe that the company is ideally placed to
capture the growth revival in the CV segment and will be
the biggest beneficiary of the Government’s voluntary
scrappage policy and hence rate the stock a BUY.
Metropolis Healthcare
12,730
2,490
2,850
14.4
Metropolis is a leading Pathology centre in India and has
an asset light model with a strong balance sheet.It has one
the largest pathology set up in India which gives it
economies of scale as compared to smaller regional
players.
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www.angelbroking.com
Market Outlook
April 20, 2021
www.angelbroking.com