The domestic benchmark indices opened on a firm note on Monday amid buying in private lenders and select IT heavyweights. Sectorally, barring media all others were witnessing strong demand. Shares of Tega Industries listed at nearly 70% premium. Meanwhile, IPO mart was buzzing as three issues ran simultaneously, with MedPlus opening today.
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Emkay initiates coverage on Star Health with BUY
- We initiate coverage on STAR HEALTH with a Buy rating and a Mar’23 TP of Rs 1,135 (+25% upside). Our TP implies a valuation multiple of 47x FY25E EPS and a FY25 P/GWP of 2.9x. Our high-conviction Buy on Star Health is underpinned by three factors:
- Health insurance industry is still in its infancy – we expect heady growth rates of ~20% in the next decade
- Star Health’s dominant market share (3x nearest competitor) in the sticky retail sector offers network effects – trio of hospitals, customers and agents feed off each other in a virtuous cycle. Sub-scale competitors will struggle to outdo this moat
- We expect margin gains with scale. We estimate Star Health’s GWP to see a 25% CAGR through FY25. Unit economics are extremely favorable – we expect ROE of 18%+ as claims normalize in a 66-67% band (after Covid-19 hump), capping combined ratio at 94-95%.
- We apply a DCF model to arrive at our Mar’23E TP of Rs1,135. We are of the view that investors should not be deterred by high valuations, which are rightfully anchored to STARHEALTH’s nearly unassailable position in a high-growth industry.
TVS Motor Company joins Zoho Corporation to invest in Ultraviolette
Ultraviolette Automotive Pvt. Ltd., an innovator in sustainable mobility, today announced that it has raised a new round of capital in its Series C funding, led by TVS Motor Company. Zoho Corporation has joined this round along with TVS Motor, to support Ultraviolette’s vision of developing high performance mobility solutions for India and global markets. TVS Motor Company, which has been an early backer of the company, has led the investment in this roun. Investment to be deployed for production and commercial launch of the F77.
Nifty Media tanks over 1.5%
Shares of cigarette maker ITC continued to climb higher for the fifth consecutive session on Monday ahead of its much awaited first-ever analyst and institutional investor meet scheduled during the week. The stock added about a per cent to Rs 238 on BSE. It has advanced nearly 9 per cent in the last five sessions, data shows.
MARKET CHECK: Sensex off day’s high, slips below 59K
Digital payments and financial services firm Paytm on Monday reported over two-fold rise in its gross merchandise value to about Rs 1,66,600 crore in the first two months of the third quarter of this fiscal, driven by sharp uptick in loan disbursals.
Top 10 gainers in late morning session
Price as on 13 Dec, 2021 11:30 AM, Click on company names for their live prices.
India VIX eases over 2% to below 16 level
IPO Update: MapmyIndia subscribed over 8x so far; issue closes today
Network18 Media sees profitbooking after surging over 50% last week
Price as on 13 Dec, 2021 10:36 AM, Click on company names for their live prices.
Rupee gains 15 paise to 75.63 against US dollar in early trade
The rupee appreciated 15 paise to 75.63 against the US dollar in opening trade on Monday, tracking a positive trend in domestic equities. However, surging crude prices in the international market and unabated foreign capital outflows capped the appreciation bias in the local unit, traders said.
Medplus, with its clustered store presence, was well suited to leverage on an omnichannel platform with a hyperlocal delivery model, said ICICIDirect. “At the upper price band, it is valued at ~43.9x EV/EBITDA and ~3.1x EV/Sales for FY21. We assign a subscribe rating given its unique model and decent valuation,” it added. The company is predominantly a brick-and-mortar retail pharmacy with a relatively smaller presence on omnichannel.
Gravita today announced operationalization of its new Battery recycling unit. In Phase-I, 19,500 MTPA plant is strategically located at the Mundra Port and is equipped with state-of-the-art facilities.
Price as on 13 Dec, 2021 10:31 AM, Click on company names for their live prices.
Venky’s (India) is setting up a new project for manufacture of Veterinary Medicine Products under its Animal Health Product Segment. Total cost of the project is estimated at Rs 30 crore which will be funded from internal accruals.
Price as on 13 Dec, 2021 10:23 AM, Click on company names for their live prices.
Tega industry is debuting the secondary market on expected line as the grey market was indicating a listing gain of 65-70%. The fundamentals of the company are very sound and the outlook for the industry is also bullish therefore long-term investors should hold this company into their portfolio while those who applied for listing gain can keep a stop loss at Rs 690.
– Santosh Meena, Head of Research, Swastika Investmart
Friday’s close was just at the brink of 17,500 which was a positive sign. If we can keep above this level today, the markets are heading higher to levels closer to 18,200. This is also a point where the Nifty may resist and if that happens there could be a knee jerk reaction on the reverse side. Hence, today’s closing is imperative.
– Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Re-entry opportunity in Reliance Industries
Zydus to begin Phase II (a) clinical trial of ZYIL1, a novel oral NLRP3 inflammasome inhibitor in patients with Cryopyrin-Associated Periodic Syndrome (CAPS) in Australia
Price as on 13 Dec, 2021 10:00 AM, Click on company names for their live prices.
Board of Directors of the company is scheduled to be held on Thursday, December 16 for considering the purchase of technology and brand name.
Price as on 13 Dec, 2021 09:44 AM, Click on company names for their live prices.
Paytm released update on November biz growth
Tega industry is likely to debut secondary market on a strong note despite being a complete OFS. The fundamentals of the company are very sound whereas valuations are also attractive. It witnessed strong top-line and bottom-line growth with a rise in margins in recent years and it has healthy cash flows. The outlook for the industry is also bullish therefore long-term investors should hold this company into their portfolio. Grey market premium is suggesting a listing gain of around 60-70%.
– Aayush Agrawal, Sr. Research Analyst – Merchant Banking, Swastika Investmart Ltd.
Its material subsidiary, AG Enviro Infra Projects has received letter of intent for contract namely ‘door to door collection and transportation of municipal solid waste to disposal site and operation & maintenance of equipment/machineries’ from city – Sadar Paharganj Zone of North Delhi Municipal Corporation.
Price as on 13 Dec, 2021 09:25 AM, Click on company names for their live prices.
The recently listed lender has witnessed good growth across key parameters during the first half of the current fiscal year and is expecting to grow at about 30-35 per cent in terms of revenue on a long-term basis.
Price as on 13 Dec, 2021 09:25 AM, Click on company names for their live prices.
The company has approved second interim dividend of Rs 13.50 per equity share on face value of Re 1 per share for FY22, amounting to Rs 5,019 crore.
Price as on 13 Dec, 2021 09:24 AM, Click on company names for their live prices.
Listen In: Why MedPlus IPO appears to be a pricey affair
Most active stocks on NSE in early trade
Price as on 13 Dec, 2021 09:20 AM, Click on company names for their live prices.
OPENING BELL: Sensex jumps 400 points, tops 59K; Nifty above 17,600; Vedanta, Axis Bank rise 2% each
SGX Nifty signals a positive start
SGX Nifty signals a negative startDomestic equity markets are set to kick off the new week on a strong note, following the global trends. Nifty futures on the Singapore Exchange traded 128.5 point, or 0.73 per cent, higher at 17,673.50, signaling that Dalal Street was headed for a positive start on Monday.
Asian shares trade higher
Asian stocks opened higher on Monday as investors took heart from US rallies and digested the Bank of Japan’s key business confidence survey. MSCI’s index of Asia-Pacific shares outside Japan was up by 0.95 per cent.Japan’s Nikkei rallied 0.99%South Korea’s Kospi gained 0.80%Australia’s ASX 200 added 0.55%China’s Shanghai surged 1.05%Hong Kong’s Hang Seng surged 1.62%
Tega Industries listing
Shares of Tega Industries will make a its Dalal Street debut on Monday. The IPO was open for subscription between December 1-3 in the price range of Rs 443-453 per share as the company raised Rs 619.23 crore from the issue. Ahead of its listing, it was commanding a premium of Rs 300-320 per share in the grey market.
Under pressure from weak global markets, NSE Nifty50 index formed an indecisive Doji pattern on daily charts, that would likely keep traders on their toes in the upcoming sessions.
India VIX eases
The fear gauge eased over 3 per cent to 16.06 level on Friday over its close at 16.60 level on Thursday.
US Stocks rises despite surge in consumer prices
Wall Street stocks capped a strong week with a fresh record on Friday despite the latest spike in US consumer prices that has bolstered expectations the Federal Reserve will accelerate plans to lift interest rates.Dow Jones gained 0.60% at 35,970.99S&P 500 rallied 0.95% to 4,712.02Nasdaq advanced 0.73% to 15,630.60
Dollar held steady
The dollar was quiet at the start of a week in which central bank meetings, including by the Federal Reserve, will likely drive currency markets, while sterling fell slightly after Boris Johnson warned about the impact of the new COVID-19 variant.Dollar Index…