All You Need To Know Going Into Trade On August 11

Earnings Fineprint: Titan Q1FY21

• Revenue down 62.3% to Rs 1,862 crore
• Net loss of Rs 270 crore from net profit of Rs 371 crore
• Ebitda loss of Rs 246 crore from Ebitda gain of Rs 565 crore
• Revenue includes sale of bullion worth Rs 601 crore done to reduce inventory
• Jewellery division sales down 56% to Rs 1,783 crore
• Watches business revenue down 90% to Rs 75 crore
• Eyewear business revenue down 80% to Rs 30 crore
• All numbers are standalone and compared on a year-on-year basis

Earnings Fineprint: Shree Cement Q1FY21

• Revenue down 23.4% to Rs 2,325.8 crore
• Net profit up 2.1% to Rs 370.8 crore
• Ebitda down 22.3% to Rs 700.6 crore
• Ebitda margin at 30.1% from 29.7%
• Sales volume down 17.7% to Rs 4.79 MT
• Ebitda per tonne down 5.6% to Rs 1,462
• All numbers are standalone and compared on a year-on-year basis

Earnings Fineprint: Power Grid Q1FY21

• Revenue up 2.1% to Rs 8,988.7 crore
• Net profit down 18.5% to Rs 1,978.9 crore
• Ebitda flat at Rs 7,877.1 crore
• Ebitda margin at 87.6% from 89.7%
• One-time rebate of Rs 1,075 crore passed to discoms and power departments of state/union territories due to Covid-19, against the billings of April & June, impacts profit
• All numbers are standalone and compared on a year-on-year basis

Stocks To Watch

• ICICI Bank: Launches QIP issue at Rs 351.36 per share. As per SEBI guidelines, it may offer a discount of not more than 5% on the floor price. The floor price is a 3.4% discount to Monday's closing. As per the term sheet accessed by Bloomberg, the bank looks to raise as much as Rs 15,000 crore between Rs 355-358 per share. The price range is a 1.5-2.3% discount to Monday's closing.
• Kotak Mahindra Bank: Stated in a press release that it has achieved compliance with promoter shareholding reduction requirement as per RBI’s directives, and within the timeline prescribed by the RBI.
• Axis Bank: QIP issue closed at Rs 420.1 per share which is a 5% discount to the floor price of Rs 442.2 per share. The bank has raised Rs 10,000 crore from the QUP issue
• HDFC: Raises Rs 10,000 crore through its QIP issue. To issue 5.68 crore equity shares at Rs 1,760 per share. The price is a 4.3% discount to the floor price.
• Hexware Technologies: De-listing proposal gets nod from public institutional shareholders. For public institutional shareholders, 92.64% of equity shares were voted on, out of which 95.69% voted in favour of de-listing the company while for public non-institutional shareholders, 18.97% of shares were voted on for which 60.85% votes were in favour of de-listing.
• InterGlobe Aviation: Board approved raising up to Rs 4,000 crore through an issue of equity shares by way of a QIP. The fund raise is subject to shareholder and regulatory approval.
• Titan: Forms a commodity trading unit called Titan Commodity Trading. It will register as a member of the commodity exchanges.
• Bank of Baroda: Overnight MCLR lowered by 15 basis points to 7% from August 12.
• Cupid: Gets received U.S. FDA approval for four additional variants of the company’s male contraceptives to market them in the U.S. market.
• Triveni Engineering: Board approves buyback of 61.9 lakh shares or 2.5% of the total equity worth Rs 65 crore. The buyback price of Rs 105 per share is a 48% premium to Monday's close. August 28 is the record date for the buyback.
• Gufic Biosciences: Entered into a loan license agreement with Hetero Labs to manufacture and supply Remdesivir Lyophilised Powder for injection on loan license basis to Hetero for its sale in various countries including India. Both afore-mentioned entities have a combined capacity of 50 million vials per annum.
• Prestige Estates Projects: Clarified that it regularly evaluates various opportunities for restructuring, investments or divestments in the course of its business.
• CSB Bank: Appointed Madhavan Aravamuthan as part-time chairman of the bank till June 2022.
• Bank of India: Board to consider raising capital via issue of share and bonds on August 13.
• Nifty Earnings Today: Adani Ports & SEZ
• Non-Nifty Earnings Today: Bajaj Electricals, Bosch, KRBL, Metropolis Healthcare, Minda Industries, Motherson Sumi, Prataap Snacks, RITES, RCF, Symphony

Earnings Reported After Market Hours

Bank of Baroda Q1FY21

• Net Interest Income up 7.6% to Rs 6,816 crore
• Net loss of Rs 864 crore from net profit of Rs 719 crore
• Gross NPA at 9.39% from 9.4% last quarter
• Net NPA at 2.83% from 3.13% last quarter
• Provisions against standard accounts this quarter at Rs 1,811 crore
• Term loan moratorium at 21% of loan book
• All numbers are standalone and compared on a year-on-year basis

Sundaram Finance Q1FY21

• Net Interest Income down 2.1% to Rs 425 crore
• Net profit up 5.2% to Rs 165.7 crore
• AUM at Rs 29,580 crore from Rs 29,977 crore
• All numbers are standalone and compared on a year-on-year basis

Ujjivan Financial Services Q1FY21

• Net Interest Income up 2.5% to Rs 474.1 crore
• Net profit down 6.2% to Rs 77.8 crore
• Holding company for Ujjivan Small Finance Bank
• All numbers are standalone and compared on a year-on-year basis

Mangalam Drugs Q1FY21

• Revenue up 59.4% to Rs 103.6 crore
• Net profit up 11 times to Rs 8.3 crore
• Ebitda up 2.5 times to Rs 13.7 crore
• Ebitda margin at 13.2% from 8.4%
• All numbers are standalone and compared on a year-on-year basis

HEG Q1FY21

• Revenue down 71.4% to Rs 233.3 crore
• Net profit down 95.4% to Rs 10.8 crore
• Ebitda loss of Rs 11.2 crore from Ebitda gain of Rs 347.8 crore
• All numbers are standalone and compared on a year-on-year basis

Quick Heal Technologies Q1FY21

• Revenue up 27.6% to Rs 73.5 crore
• Net profit up 2.1 times to Rs 25 crore
• Ebitda up 2.5 times to Rs 32.2 crore
• Ebitda margin at 43.8% from 22.4%
• Lower other expenses, employee costs and higher revenue aid margins
• All numbers are consolidated and compared on a year-on-year basis

V-Mart Retail Q1FY21

• Revenue down 82.8% to Rs 78.1 crore
• Net loss of Rs 33.6 crore from net profit of Rs 17.5 crore
• Ebitda loss of Rs 5.8 crore from Ebitda gain of Rs 57.8 crore
• All numbers are standalone and compared on a year-on-year basis

Brokerage Radar

Antique Stock Broking On Shree Cement

• Hold rating maintained
• Price target raised to Rs 19,200 from Rs 18,220
• Operational performance below estimates unlike peers
• Continue to like company's leadership position in key markets
• Attractive unit costsand sturdy balance sheet
• Current valuations factor in strong fundamentals

CLSA On Shree Cement

• Sell rating maintained
• Price target of Rs 20,300
• Higher volumes offset weak realisations
• May have to forego pricing to maintain higher growth
• Better return profile is more than priced in at current levels
• Tweak FY21-23CL Ebitda estimates by -1% & +3% respectively
• See better opportunities elsewhere in the sector

JPMorgan On Shree Cement

• Neutral rating maintained
• Price target raised to Rs 19,250 from Rs 18,000
• In-line quarter unlikely to enthuse markets after a series of beats from peers
• Scope to cut costs meaningfully from current levels is limited
• Expect Ebitda per tonne to remain rangebound
• Remain neutral as we struggle to find upside at current demanding valuations

Antique Stock Broking On CONCOR

• Downgrade to hold from buy
• Price target of Rs 400
• Downgrade given the uncertain outlook on earnings
• Clarity on government's strategic stake sale, resolution of LLF claims are key near-term triggers
• Cut in haulage rates is a small positive
• Cut FY21/22 Ebitda estimates by 27% and 19% respectively

CLSA On Titan

• Sell rating maintained
• Price target raised to Rs 931 from Rs 855
• Expect margins to remain under pressure in the short-term
• To benefit from consolidation in the long-term
• Reinstate target multiple back to 50 times, though we would recommend a better entry point
• Higher exposure to impulse consumption, rise in competition and the need to support franchisees may lead to earnings downgrades

UBS On Titan

• Sell rating maintained
• Price target of Rs 850
• Sell rating on uncertain near-term demand outlook
• Key is whether July's recovery can be sustained
• On-ground jewellers facing multiple near-term headwinds on both supply & demand side
• Expect overall jewellery demand to be muted in FY21
• Can be a key beneficiary of potential regulatory changes in the medium-term
• Earnings uncertainty may impact the stock in the near-term

HSBC On Hindalco

• Buy rating maintained
• Price target of Rs 220
• U.S. re-imposed 10% tariffs on imports of primary aluminium from Canada
• Move should help widen scrap spread, benefiting Novelis
• Firming Aluminium prices pose an upside risk to our estimates

HSBC On Shree Cement

• Reduce rating maintained
• Price target of Rs 14,800
• Ebitda missed estimates due to lower than expected realisations
• Only major cement producer to report a YoY decline in Ebitda per tonne
• Find expensive valuations unjustified

Who’s Meeting Whom

• Dr Lal Pathlabs: To meet Batlivala & Karani Securities on August 11.
• BSE: To meet CPP Investment Board on August 11.
• Tata Communications: To meet Birla Sunlife, Capital World and other investors between August 12-14.
• Prince Pipes and Fittings: To meet GEM Group, Siddhartha AMC and Crescita Investment Management between August 11-12.
• CG Consumer Electricals: To meet Matthews International Capital Management on August 11.
• CRISIL: To meet Highclere International Investors on August 17.
• India Energy Exchange: To meet Centrum, Sageone Investments and other investors between August 11-13.
• Kilpest: To meet IDFC Securities on August 12

Bulk Deals

• Eveready Industries: IndusInd Bank (client account) sold 32.47 lakh shares (4.47%) at Rs 150.36 per share and Anirudh Damani acquired 7.75 lakh shares (1.07%) at Rs 150.05 per share. Anirudh Damani is managing partner at Artha Ventures
• Deccan Cements: UTI Mutual Fund sold 75,000 shares (0.54%) at Rs 245 per share
• Kilpest: Promoter Lenus Finvest acquired 40,000 shares (0.53%) at Rs 492.89 per share
• TVS Motor: BNP Paribas Arbitrage acquired 35.48 lakh shares (0.75%) at Rs 417.05 per share and Goldman Sachs (Singapore) sold 35.48 lakh shares (0.75%) at Rs 417.05 per share

Block Deals

• Axis Bank: BOFA Securities Europe acquired 35 lakh shares (0.12%) at Rs 429.5 per share and UBS Principal Capital Asia sold 35 lakh shares (0.12%) at Rs 429.5 per share.

Trading Tweaks

• AGM Date: Cipla, Tata Motors, Titan, Shriram Transport Finance, Agro Tech Foods, Bank of India, Chalet Hotels, Credit Access Grameen, ICICI Securities, JMC Projects, Kirloskar Industries, Quick Heal Tech, Sonata Software.
• Fund Raising: Minda Industries
• Price Band Revised From 20% To 10%: Bharat Gears, RattanIndia Power
• Move Into ASM Framework: Astec LifeSciences, JK Agri Genetics, Vanta Bioscience
• Move Into Short Term ASM Framework: Suven Life Sciences, Jubilant Industries, Anant Raj, Xchanging Solutions.
• Move Out Of Short Term ASM Framework: Anuh Pharma, Persistent Systems, Future Consumer, Capri Global Capital, Aimco Pesticides

Insider Trades

• JSW Steel: Promoter JTPM Metal Traders acquired 11.4 lakh shares between August 5-6.
• SBI Cards and Payment Services: Promoter SBI Life Insurance sold 25,000 shares on August 7.
• Kotak Mahindra Bank: Promoter Kotak Trustee sold 15,200 shares on August 10.

(As Reported On August 10)

Money Market Update

• The rupee ended little changed in today's session, continuing its rangebound moves over the last few days.
• The currency ended at 74.90 against the U.S. Dollar as compared to Friday's close of 74.93.
• The rupee was the joint best performing currency in Asia in today's session along with the Philippine Peso.

F&O Cues

• Nifty August futures closed at 11,294; premium of 24 points from 15 points
• Nifty August futures shed 0.3% and 35,000 shares in Open Interest
• Nifty Bank August futures closed at 21,972; premium of 72 points from 41 points
• Nifty Bank August futures shed 2% and 26,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.59
• Enters F&O Ban: Muthoot Finance
• Stocks In F&O Ban: Canara Bank, Century Textiles, Vodafone Idea, Muthoot Finance & Vedanta

Nifty Weekly Expiry: August 13

• Maximum Open Interest on Call side at 11,500 strike (25.5 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (27.6 lakh shares)
• Active Options: 11,300 Put (7.5 lakh shares) and 11,200 Call (-7.8 lakh shares)

Nifty Monthly Expiry: August 27

• Maximum Open Interest on Call side at 11,500 strike (21 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (29.9 lakh shares)