Dipan Mehta, Director, Elixir Equities

On Hospitals

• End of the day, it’s a nice secular growth sector because healthcare spends are continuously going up for the entire country, for families as well. And that’s reflected in the valuations also of these companies.
• So end of the day, after a particular blip, again, you may see a revival of the industry per se if at all this move was to take place, so I’m not too perturbed right now. Let us see how the actual framework emerges and what the impact is.
• Apollo Hospitals – great set of numbers, and phenomenal value unlocking also going to take place from a shareholder’s perspective. They’re going to split the company, so that way there’ll be two entities: one is the hospital business, and another is the healthcare business, which has got the drugstores, as well as some of the allied businesses.
• So, it’s been a steady performer, and it’s given a phenomenal set of numbers. We like their capital allocation policy, where they’re going step-by-step when it comes to expansion.
• But now, next 3-4 years, you should see them almost 60-70% increase in their capacity in terms of new hospitals, so that may depress the EBITDA margins for some time. But I think great for long term. Only thing is that all these hospital companies, Apollo included, are very expensive. I was hearing Dr. Agarwal, and it’s a company I have been tracking for so long trying to find an entry into buying it.
• But look, it’s always traded at 100 P/E, and Apollo Hospital is trading at about 60-70 P/E. All the other companies in the industry are anywhere from 50 to 70-80 P/E multiples, and at the end of the day, the growth rate cannot exceed more than 15-20%. It’ll grow steadily. For 10 years, it will grow at 15-20%.
• But, buying a business at 70-80 times 100 times P/E multiple, I don’t know whether that will give great returns. So that’s the issue with the hospital industry as well. That it’s very expensive in terms of valuations.

Railtel | Bags Order Worth ₹63 Cr From Deendayal Port Authority

Sudarshan Sukhani, Proprietor, Technical Trends

• Buy Glenmark Pharma with a stop loss of ₹2,200
• Buy Bharat Dynamics with a stop loss of ₹1,250
• Sell PNB with a stop loss of ₹117

• Shares of Astral Ltd witnessed strong momentum in morning trade today
• Shares advanced nearly 8% amid strong buying
• The stock opened at ₹1,499.00 against its previous close of ₹1,464.00.
• During the morning session, it touched an intraday high of ₹1,598.70
• Stock has gained 7.92% (+₹116.00) from the previous close of ₹1,464.00.
• Shares have gained ~10.2% over the past month (30 days).
• Shares are trading 10.67% below the 52-week high of ₹1,768.70.
• Shares are trading 24.90% above the 52-week low of ₹1,263.70.
• Morning trading volume stands at 39.59 lakh shares
• The stock has closed in the green in 7 out of the last 10 trading sessions.
• Biggest single-day rise in August

• Shares of Astral Ltd witnessed strong momentum in morning trade today
• Shares advanced nearly 8% amid strong buying
• The stock opened at ₹1,499.00 against its previous close of ₹1,464.00.
• During the morning session, it touched an intraday high of ₹1,598.70
• Stock has gained 7.92% (+₹116.00) from the previous close of ₹1,464.00.
• Shares have gained ~10.2% over the past month (30 days).
• Shares are trading 10.67% below the 52-week high of ₹1,768.70.
• Shares are trading 24.90% above the 52-week low of ₹1,263.70.
• Morning trading volume stands at 39.59 lakh shares
• The stock has closed in the green in 7 out of the last 10 trading sessions.
• Biggest single-day rise in August

The shares of Astral surged by close to 8% in the early hours of the day’s trade.

Mitessh Thakkar, Bonanza Portfolio

• Buy Force Motors with a stop loss of ₹18,700 and a target of ₹20,500
• Buy AU SFB with a stop loss of ₹1,070 and a target of ₹1,130
• Buy Indus Towers with a stop loss of ₹376 and a target of ₹398
• Sell Tata Consumer with a stop loss of ₹1,081 and a target of ₹1,020

Tata Motors PV to announce its Q1 earnings today: India biz healthy, JLR remains a drag

India’s biz took price hike of 0.5% in April & another 1.5% in July

Gujarat Pipavav up over 5% on Q1 results impact

Urban Company up over 2%, Thyrocare down nearly 3% on large trade impact

• BEL Can Participate In Sub-Systems For MTA
• HAL To Partner With Either A French Or A Russian Co For The MTA Programme
• Generally, It Takes 2-3 Years To Convert An Order After The RFI
• Astra Micro Is One Of The Biggest Beneficiaries For The Uttam Radars
• Expect H2 To Be Much Better For Defence Cos, See Tendering Activity Picking Up

Lenskart & Tata Motors CV shares rise over 6% & 3% each on strong Q1, while Arvind shares decline by over 4% on Q1 results impact

Market opens flat, Nifty below 24,450

UltraTech Large Trade | 25 Lk Shares (0.8% Eq) Change Hands In Block Deal Window

Rupee Check | Rupee Opens At 95.36/$ Vs Wednesday’s Close Of 95.33/$

Urban Co Large Trade | 3.15 Cr (2% Eq) Shares Worth ₹428 Cr Change Hands At ₹136/sh In Block Deal Window

• India’s Defence Ministry has issued a global Request for Proposal (RFP) for 60 multirole transport aircraft for the Indian Air Force (IAF), in a programme estimated to cost around ₹1 lakh crore, or about $10 billion.
• The acquisition is aimed at replacing the IAF’s ageing Soviet-era Antonov An-32 fleet and supporting some roles currently handled by the larger Ilyushin Il-76 aircraft.
• The tender has been issued to multiple Indian companies, including Hindustan Aeronautics Limited (HAL), Tata and Mahindra.
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Block Deal In Tenneco Clean Air

• Tenneco Mauritius Sells 3.03 Cr Shs (7.5% Stake) In Tenneco Clean Air On BSE For ₹1,589 Cr
• Tenneco Mauritius Holdings Sells 3.03 Cr Shs (7.5% Stake) In Tenneco Clean Air On NSE For `1,591 Cr
• Tenneco Sells 15% Stake In Co For ₹3,180 Cr
• SBI MF Buys 1.45 Cr Shares (3.6% Stake) For `761 Cr
• HDFC MF Buys 20.2 Lk Shares (0.5% Stake) For `106 Cr
• Shares Were Bought At An Avg Price Of `525/Sh

Thyrocare’s 1.12 crore shares, or over 7% of the equity, worth ₹700 crore, change hands in a large trade.

Here’s a list of stocks in focus going into trade today

Here’s a list of stocks in focus going into trade today

Dr Adil Agarwal, CEO, Dr Agarwal’s Health On CNBC-TV18

• Expect Temasek & TPG To Hold On To Remaining Shares As They Are Long Term Investors
• Promoters Would Like To Increase Stake
• Would Like To Be North Of 40% Promoter Holding
• Did Not Buy Stake In This Round, Negotiations Were Between Bankers, TPG & Temasek
• Parliamentary Committee Recommendations Won’t Impact Co As Dr Agarwal’s Is A Day-Care Operation
• Co Undertakes Certain Number Of Surgeries Free Of Cost

• SEBI revises the stress-testing framework for the commodity derivatives segment, lowering the Z-score threshold used to determine extreme historical price movements.
• Price movements corresponding to a Z-score of 5 will replace extreme price movements beyond that threshold when calculating peak historical returns for commodities.
• The change takes immediate effect.
• The move modifies the existing provisions under the Core Settlement Guarantee Fund (SGF) framework for commodity derivatives.
• Earlier, price movements corresponding to a Z-score of 10 replaced extreme price movements beyond that level. SEBI has now reduced this threshold to 5.
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Here’s a list of stocks in focus going into trade today

• Shares of Bharti Airtel in focus on today, after the telecom operator discontinued four prepaid plans across India, including its ₹299 smartphone plan.
• The company has withdrawn the ₹299, ₹579, ₹619 and ₹649 prepaid packs nationwide.
• Following the rationalisation, the cheapest 28-day plan offering daily data is now priced at ₹349, implying a ₹50, or 16.7%, increase from the earlier entry-level plan.
• Brokerages see the move as positive for Airtel’s average revenue per user (ARPU), although it does not amount to a formal tariff hike.
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• Fed Is Unlikely To Hike Rates, AI Story Is Making A Come Back
• Less Concerned About Chipflation, Forms 0.7% Of Inflation Basket, Wont Influence US CPI
• Strong Chance Japan Will Hike Its Interest Rates

Here’s how the global market cues are placed this morning

Here’s how the global market cues are placed this morning

Black Box | Bags Order Worth ₹1,240 Cr From A US-based Hyperscaler For Data Center Proj In The US

• Shares of VIP Industries are in focus as the stock will be reacting to the company reporting positive sales growth after seven quarters.
• Revenue increased by 3% to ₹578.36 crore in the June quarter from ₹561.43 crore in the previous fiscal.
• The company said over 80 new product launches drove 50% of its revenue.
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