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Rupee ends at four-month low of 86.82/$ as dollar gains, FPI outflows weigh
SI Reporter Mumbai
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Time of India
2 hours ago
- Time of India
Vedanta continues winning street confidence: Brokerages forecast strong earnings ahead
New Delhi: Major global and Indian brokerages remain optimistic on Vedanta Ltd's performance for FY26, citing stronger LME pricing trends, cost discipline, deleveraging, and a resilient aluminium business among the key growth drivers. These firms have also taken note of the several growth projects scheduled for commissioning or completion in the next few quarters. JP Morgan noted that Vedanta's first quarter consolidated EBITDA was largely in line with estimates, with key segments such as aluminium, oil and gas, and power faring better than its expectations, leading to an overall segmental EBITDA beat. On the earnings trajectory for the current and next fiscal, the firm expects various ongoing initiatives at Vedanta to aid growth. "Vedanta's capacity expansion journey in the aluminium business as well as vertical integration should bring cost advantages. LME prices have also bottomed out and should continue to move higher into FY26-27, likely aiding earnings growth." Echoing similar views on LME prices and its potential benefit, Citi Research cited that Vedanta's parent (Vedanta Resources) leverage is at comfortable levels. It listed potential upside in medium-term aluminium LME prices, lower cost, and the demerger as another positive for Vedanta, while adding that aluminium globally has a limited supply growth. Mumbai-based Nuvama Institutional Equities expects Vedanta to deliver quarter-on-quarter EBITDA growth in Q2. "Q2FY26 EBITDA is likely to increase 10 per cent-plus quarter-on-quarter on the back of higher prices and lower aluminium cost of production. Major aluminium projects are likely to be commissioned in Q2FY26. We reckon net debt/EBITDA ex-Hindustan Zinc shall fall to 1.7x by FY26-end, compared to 2.7x in FY25. Demerger of the business is likely to be concluded in Q4FY26," the firm said in its report. The brokerage expects Vedanta's all major projects except coal blocks to be likely commissioned in the current fiscal, providing volume growth and cost reduction visibility for the company. UK-based Investec stated in its post-earnings report that Vedanta is a key beneficiary of depreciation in the Indian Rupee. Other near-term positives listed by the firm include declining alumina prices and the company offering attractive yields. The firm has retained its buy recommendation on Vedanta. Research firms like Kotak Institutional Equities and IIFL have cited factors like cost efficiencies and deleveraging at both Vedanta Ltd and its parent Vedanta Resources as beneficial factors. Vedanta's adjusted profit after tax jumped 13 per cent year-on-year to Rs 5,000 crore. The company clocked its highest-ever first-quarter EBITDA of Rs 10,746 crore, which was up 5 per cent year-on-year. PTI>
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Business Standard
5 hours ago
- Business Standard
Rupee closes lower as tariff tensions weigh; ends at 87.80/$
The Indian Rupee ended lower on Tuesday, extending early losses, as fresh pressure emerged following US President Donald Trump 's escalation of tensions with India over its continued oil imports from Russia. The domestic currency closed 14 paise lower at 87.80 against the dollar on Tuesday, according to Bloomberg. The rupee has declined 2.6 per cent so far in the calendar year and recorded its worst monthly fall in July since September 2023. The domestic currency remained under pressure and is likely to stay weak this week after Trump signalled the possibility of higher tariffs, analysts said. Trump, in the social media platform Truth Social, threatened to 'substantially' raise tariffs on Indian goods, accusing the country of profiting from the resale of Russian oil and ignoring the human toll in Ukraine. Rupee traded weakly as panic gripped markets following a late-evening post by Trump hinting at higher tariffs on India, according to Jateen Trivedi, VP Research Analyst - commodity and currency at LKP Securities. "Additionally, expectations that the US may pressure India to reduce Russian oil imports sparked fears of a higher import bill, pushing the rupee briefly below the 88 mark overnight." "The rupee is expected to trade in the 87.40-88.25 range," Trivedi said. The currency has also faced sustained pressure from foreign portfolio investors (FPIs) who extended their selling streak in equities. FPIs remained net sellers for the 11th straight session on Monday, selling equities worth ₹2,403 crore in the previous session. In this calendar year so far, global funds have sold stocks worth ₹1.03 trillion, as per NSDL data. Meanwhile, the focus will be on RBI Governor Sanjay Malhotra as the Monetary Policy Committee (MPC) begins its meeting yesterday, August 4, to decide on key interest rates. The RBI is likely to remain status quo as per a Business Standard poll, with all analysts expecting a further reduction in the 2025-26 (FY26) inflation forecast. The dollar index, the measure of the greenback against a basket of six major currencies, was up 0.17 per cent at 98.94. In commodities, crude oil prices extended their three-day fall amid looming trade tensions between India and the US. Brent crude price was down 1.12 per cent at 67.99 per barrel, while WTI crude prices were lower by 1.30 per cent at 65.43, as of 3:30 PM IST.
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Business Standard
10 hours ago
- Business Standard
JK Cement hits new high in weak market, zooms 58% in 5 months; here's why
In the past five months, the stock price of JK Cement has outperformed the market by zooming 58 per cent SI Reporter Mumbai JK Cement share price today: Shares of JK Cement hit a new high of ₹7,060, rallying 4 per cent on the BSE in Tuesday's intra-day trade in an otherwise weak market on a healthy outlook. In comparison, the BSE Sensex was down 0.5 per cent at 80,641 at 10:04 AM. In the past month, JK Cement has surged 13 per cent, as compared to a 3.3 per cent decline in the benchmark index. In the past five months, the stock price of JK Cement has outperformed the market by zooming 58 per cent. The stock had hit a 52-week low of ₹3,893.80 on November 18, 2024. Track LIVE Stock Market Updates Here JK Cement Q1 results In the April to June quarter (Q1FY26), JK Cement's standalone Ebitda grew 41 per cent year-on-year (Y-o-Y), but declined 8 per cent quarter-on-quarter (Q-o-Q) to ₹688 crore, driven mainly by higher other operating income. Blended Ebitda per tonne rose 23 per cent Y-o-Y, and declined 1 per cent Q-o-Q to ₹1,247. In Q1, JK Cement increased grey cement capacity by 0.5 metric tons (Mt); it also announced a 0.6 Mt wall putty expansion at a capex of ₹200 crore to be commissioned by FY27. JK Cement's Q1FY26 grey cement volume grew by ~16 per cent Y-o-Y to 5.06 Mt, and the overall combined volume was ~8 per cent above expectation as it continues to gain market share in central India (~50 per cent Y-o-Y) and incremental volume in South India (teen growth). The company highlighted that it has recorded a decline in the northern region due to market conditions; however, it has maintained market share in all other regions. JK Cement is aiming to have ~1 Mt sales from Bihar by the end of FY26. The rise in South India prices helped in improving grey cement realisation by 1 per cent Q-o-Q, despite flat prices in other markets. White cement realisation declined due to lower prices and a shift in product mix, with the prices likely to have bottomed out, InCred Equities said in JK Cement's annual report analysis. Brokerages' view on JK Cement Analysts at InCred Equities like JK Cement's presence and also expansion into regions having favourable dynamics, but the brokerage firm feels the current EV/t limits a further upside in the stock price. The downside risks are weak demand, pricing pressure, and delay in commissioning. Upside risks: Strong demand & pricing, sharp deleveraging, and cost control. JK Cement remains on track to expand its grey cement capacity to 30 Mt by FY26 and 50 Mt by FY30, supporting strong volume growth and market share gains in the coming years. With structural cost-saving levers of ₹150-200 per tonne, and despite factoring in capex of ₹5,800 crore through FY28, analysts at JM Financial Institutional Securities expect net debt to remain contained at ₹3,000 crore-3,500 crore, supported by healthy cash flow generation. Incorporating the Q1 outperformance, positive pricing outlook and expansion in the wall putty segment, the brokerage firm raises FY26–28 Ebitda estimates by 3-4 per cent. The brokerage firm maintains 'Buy' with a revised September 2026 target price of ₹7,050 per share. JK Cement remains the top pick in the mid-cap cement space, it added.
