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Mahindra CIE Automotive: Mahindra & Mahindra has sold 82,42,444 shares or 2.173% shareholding in associate company Mahindra CIE Automotive. The sale has been executed through a bulk deal window at a gross price of Rs 285 per share. After the sale, the shareholding of the company in Mahindra CIE has come down from 11.427% to 9.254%.
Bharat Heavy Electrical: The company has received order for setting up the 2x660 MW Talcher thermal power project Stage-III on EPC (engineering, procurement, and construction) basis from NTPC.
IFCI: The company said the board has approved the preferential issue of equity shares up to Rs 100 crore for FY23 to the Government of India. This is subject to the approval of the shareholders.
HG Infra Engineering: Subsidiary HG Khammam Devarapalle Pkg-1 Private Limited has received financial closure for the Greenfield highway project in Telangana, from the National Highways Authority of India.

Power Grid Corporation of India: The company has received board approval for the appointment of G Ravisankar, Director (Finance) as Chief Financial Officer (CFO).

Harsha Engineers makes a bumper listing with 36% premium

Harsha Engineers International clocked gains on listing as expected before rising further but most analysts advise booking profits amid market turmoil. The stock started off the first day's trade with a whopping 36 percent premium over issue price despite nervousness in equity markets. It climbed further six percent as the day progressed to take total gains to 43 percent over issue price.

Analysts said high premium at listing is justified with the IPO generating stronger than expected demand as qualified institutional investors' portion got subscribed over 178 times. Also, the ask price is fairly valued compared to industry peers.

"We recommend booking partial profits while remaining can be kept for the long term as the company is a comprehensive solution provider offering diversified suite of precision engineering products across geographies and end-user industries and has long-standing relationships with leading clientele," said Astha Jain, senior research analyst at Hem Securities.

Rajnath Yadav, research analyst at Choice Broking, urged investors to exit given the market volatility. Although Prashanth Tapse, senior vice president of research at Mehta Equities, sounded "very optimistic" on Harsha Engineers with its dominant position, he too advised booking profits in the current market scenario. "Risk takers can hold with a long-term perspective," he added.

Santosh Meena, head of research at Swastika Investmart, termed the company as a proxy play on India becoming a global manufacturing hub: "Those who applied for listing gains can maintain a stop loss at Rs 400. Our recommendation for investors is to hold the allotted shares and long-term investors can accumulate the stock on dips."

Harsha Engineers, which is the largest manufacturer of precision bearing cages in India, raised Rs 755 crore from the public issue with a strong 74.70 times subscription during September 14-16. Of the total issue size, Rs 455 crore was raised through fresh issuance which will be used in repayment of debts, capital expenditure towards the purchase of machinery, and existing production facilities.

Sensex was down 860.62 points or 1.48 percent at 57,238.30, and the Nifty down 285.50 points or 1.65 percent at 17041.80 following weak global cues. This is the fourth straight day of selling on Dalal Street.

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NIM to exhibit a positive bias- growth to go on

 Improving trend in asset quality; GNPA ratio to touch a decade low of 4%
-       Over the past few years, the aggressive cleanup by Banks has resulted in a sharp decline in stressed assets. The mix of PSU and AA and above assets has risen to 77% in FY22 v/s 59% in FY17, while the mix of sub-investment grade assets have almost halved to 7% v/s 17%.
-       Credit ratio witnessed an improvement in FY22 and is likely to continue its upward trajectory. However, rising inflation can impact cash flows of the corporates, primarily MSME, which remains a key monitorable.
-       Total restructuring book for the system stood ~2% of loans, while the same for MSME stands elevated at 6%, of which 25% is expected to slip into NPA. However, the impact on overall asset quality is likely to be limited.
-       Slippages are expected to moderate to 2% in FY23 v/s 2.5% in FY22. The GNPA ratio is expected to moderate to a decade low of sub-4% by FY24. The GNPA ratio for the Corporate/Retail/MSME/Agri segment is likely to moderate to sub-2%, 1.8-2%, 10-11%, and 9-10%.
 
Credit cost continues to trend lower; return ratios to improve to 1% in FY23
Banks have significantly increased their PCR to 73% in FY22, which, coupled with a lower expectation of slippages, will keep the provisioning requirement controlled. As a result, credit cost will witness a downward trajectory, thereby aiding profitability. CRISIL believes that treasury losses have peaked in 1QFY23, which will further aid profitability. Credit cost is expected to moderate to 0.7% in FY23, while RoA is likely to improve to 1% in FY23. RoA is likely to improve to 0.7%/1.6% for PSBs/Private Sector Banks (v/s 0.3%/1.2% in FY21).
 
Capitalization levels have improved; incremental requirement to be lower
-       Capitalization levels for the bank have improved significantly over the past few years and are well-paced at decade highs. As per CRISIL, all PSBs have a Tier I buffer of over 100bp v/s 24% in FY18. CAR currently stands at 15.6%, which has been the best in the past two decades.
-       While the government has infused majority of the capital in PSBs, many Banks have been able to raise capital from the market in the past one-year, which is likely to pick up gradually as the earnings profile of the PSBs improves further. Over the past five-years, PSBs have raised ~INR3.5t (including government infusion) and Private Banks INR1.4t. CRISIL feels the incremental requirement for capital is likely to be lower in the coming years, given the improved levels.

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key corporate actions taking place in the coming week

 "If we look at the F&O data, the short exposure of FIIs in index futures has jumped to 80 percent, which means sentiments are weak but the market is hedged. We are heading into the expiry week on a weaker note as the Nifty slipped below the Put base of 17,500, where 17,000 is the next base," Santosh Meena, Head of Research at Swastika Investmart, said.
Harsha Engineers International is going to make a debut on the bourses on Monday, following a healthy response to its initial public offering (IPO) that was oversubscribed 74.70 times the previous week. The final issue price has been fixed at Rs 330 per share.
A grey market premium of more than 50 percent and a healthy investor response, along with strong financials and robust growth outlook, indicates the listing may bring a big smile on the investor’s face come Monday, experts said.
On the economic data front, fiscal deficit and infrastructure output for the month of August, foreign exchange (forex) reserves for the week ended September 23, and current account numbers for Q2CY22 will be released on the coming Friday.
Apart from that, auto stocks may be in focus ahead of September sales data due over the next weekend.
In corporate action, Bharat Gears, Pondy Oxides & Chemicals, and Ram Ratna Wires will start trading ex-bonus, while Excel Realty N Infra will be quoting ex-bonus as well as ex-split next week.

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