Market this week 30-9-2022

MARKET THIS WEEK 30-9-2022

Goldman Sachs maintains its “buy” rating following the transaction, boosting KPIT Technologies shares by 5%.

On September 22, KPIT Technologies’ share price increased 5% intraday as global research company Goldman Sachs maintained its “buy” rating on the company with a target price of Rs 900 per share.

Research firm estimates that Technica’s CY21 revenue/EBITDA equals 16–17% of the company’s FY22 revenue/EBITDA, while on an EV/EBITDA basis, Technica’s cash consideration implies a 10–26% premium over KPIT.

On September 21, the board of directors of KPIT Technologies approved the acquisition of Technica Engineering Gmbh, Germany, Technica Electronics Barcelona SL, Spain and Technica Engineering Spain SL, Spain through KPIT Technologies GmbH, a wholly owned step-down subsidiary of the company of 100 percent shareholding and Technica Engineering Inc, USA through KPIT Technologies Inc, another similar subsidiary.

After normal closing conditions have been met, the transaction is anticipated to occur by the end of October, at which point KPIT Technologies will control 100% of Technica Group. A total of €80 million in fixed consideration will be paid over the next six months, and a maximum of €30 million in variable consideration, which will be paid over the following 2.5 years dependent on the attainment of revenue and profit milestones, will be due.

After the board approves the big merger scheme, Tata Steel stock rises while TRF experiences a decline.

On September 23, when the business announced that its board had approved the plan of amalgamation between seven of its group companies and itself, shares of Tata Steel opened 3 percent higher. These seven businesses include Indian Steel & Wire Products, Tata Steel Mining, Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF Limited, Tata Steel Long Products, and S&T Mining Company.

On the NSE, the scrip was trading at Rs. 107 as of September 23. The benchmark Sensex ended the previous session 337.06 points or 0.57 percent lower at 59,119.72, while Tata Steel shares ended at Rs 103.65 per share on the BSE, down 0.81 percent. In the meantime, TRF stock struck lower circuit after opening 5% lower. At 9:20 am, the NSE was pricing the stock at Rs 356. The share price of Tata Metaliks fell by 2.5% to Rs. 781, and Tata Steel Long Products fell by roughly 7% to Rs. 690.

The proposed plan would increase operational integration and facility utilization, customer satisfaction and services, working capital and cash flow management efficiency, pipeline project execution speed, and logistics cost rationalization.

Following the CFO’s resignation, Sterlite Tech shares is under pressure.

Early trades on September 26 saw pressure on Sterlite Tech shares as the business announced the resignation of its chief financial officer.

Mr. Mihir Modi, the company’s chief financial officer and a key managerial employee, has offered his resignation and will be released from his obligations as of Friday, October 14, 2022, at the close of business.

On September 26, the benchmark Sensex was down 805.31 points or 1.39 percent at 57,293.61 while the stock was trading 5.39 percent lower at Rs 163.30 per share on the BSE.

According to the business, Modi will pursue chances outside of it. The Board has acknowledged his resignation and expressed gratitude for his services during the course of his employment. The exchanges will be informed when the Company names a new Chief Financial Officer, which is already in progress.

As a subsidiary’s client lowers the expectation, Hindalco declines.

On September 26, shares of Hindalco plunged when one of Novelis Corporation’s largest clients lowered its profitability forecast owing to the continuous slowdown in the world economy.

One of the biggest US beverage can manufacturers, Ball Corporation, reduced its five-year volume growth estimate for North America due to weak demand circumstances. The company also noted that the upcoming US recession and declining aluminium prices could weaken beverage can volume in the short run.

Ball Corporation is Novelis’ biggest client, according to brokerage company Jefferies. The reduction in Ball Corporation’s volume forecast might significantly harm Novelis’s chances of posting profitable future quarters. For Hindalco’s shares traded on the National Stock Exchange, Jefferies has kept its “hold” rating and Rs 390 price objective (NSE).

Ball Corporation has decreased its volume growth forecast for the North American market from four to six percent to two to four percent, and for the Southern American market from five to eight percent to four to seven percent.

Is the carnival over for the investors in Wonderla Holidays after rising 60% in six months?

The Wonderla Holidays stock has been rising significantly. The share price has increased by 62% over the last six months and 83% so far this year. At this time, it is trading on the National Stock Exchange close to the Rs 390 mark. It was Rs 208 when the year began.

Three theme parks are run by Wonderla Holidays in Kochi, Bengaluru, and Hyderabad. In addition, it manages a resort in Bengaluru. The surge in demand for leisure activities in recent years has been a significant catalyst for the organisation. That’s not all, though.

For the construction of an amusement park in the state’s capital, Bhubaneswar, the company and the government of Odisha have signed a memorandum of understanding (MoU). The company intends to construct the park with an investment of less than Rs 125 crore on a 90-year lease of the site.

The park in Odisha will be an asset-light model, and our ticket price would also likely be about 60% of what we charge in our larger parks, so maybe between Rs 600-Rs 700, according to managing director Arun Chittilappilly on the Q1FY23 earnings call.

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