All You Need To Know Going Into Trade On August 13

Asian shares wavered Friday as the spread of the delta Covid-19 variant and China’s regulatory curbs restrained sentiment despite another record high close on Wall Street.

Stocks fluctuated in Japan but slid in South Korea as virus cases climb and chip-sector prospects deteriorate. U.S. contracts were steady after the S&P 500 hit a fresh peak and the tech-heavy Nasdaq 100 rose.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.24% to 16,339.50 as of 7:05 a.m.

U.S. Treasury 10-year yields were near a one-month high amid a tepid 30-year auction and data highlighting price pressures and a labor market recovery. A gauge of the dollar advanced.

The focus in China remains on Beijing’s push to exert more control over a range of industries. In real estate, the nation is suspending private equity funds from raising money to invest in residential property development. Separately, a partial shutdown of a major Chinese port due to a virus outbreak stoked concerns about a repeat of last year’s pandemic shipping woes.

Oil dipped as traders grappled with the impact of the delta variant on demand. In agricultural commodities, a prospective squeeze on global grain supplies is reigniting a rally in crop prices. Bitcoin was around $44,600.

Data To Watch

08/13-08/15: India July trade balance, est. -$11.2 billion, prior -$9.37 billion

• India July exports YoY, no est., prior 48.3%

• India July imports YoY, no est., prior 98.3%

Earnings Post Market Hours

Tata Steel's Q1FY22 (Consolidated, QoQ)

• Revenue up 6.79% at Rs 53,371.8 crore Vs Rs 49,977.4 crore (Bloomberg estimate: Rs 52,304.5 crore)

• Ebitda up 13.6% at Rs 16,110.5 crore Vs Rs 14,184.1 crore (Bloomberg estimate: Rs 16,051.1 crore)

• Margin at 30.2% Vs 28.4%

• PAT up 34.1% at Rs 8,906.95 crore Vs Rs 6,644.2 crore (Bloomberg estimate: Rs 8,518.05 crore)

• Spent Rs 2,011 crores on capex

• Work on the Pellet plant, the Cold Roll Mill complex and the 5 MTPA expansion at Kalinganagar is ongoing

• Gross debt decreased to Rs 84,237 crore

• Net debt declined to Rs 73,973 crores

• Expects to bring down debt significantly by end of current of financial year

• Net debt to Ebitda improved to 1.59x1

• Net debt to equity improved to 0.91x

• Steel deliveries at Tata Steel Europe increased by 17.4% YoY to 2.33 million tons

Hero MotoCorp Q1FY22 (Standalone, QoQ)

• Revenue down 37% at Rs 5,487 crore Vs Rs 8,686 crore (Bloomberg estimate: Rs 5,847.4 crore)

• Net Profit down 58% at Rs 365.44 crore Vs Rs 865 crore (Bloomberg estimate: Rs 463 crore)

• Ebitda down 57% at Rs 515 crore Vs 1211 crore (Bloomberg estimate: Rs 617 crore)

• Margin at 9.4% Vs 13.9% (Bloomberg estimate: 10.6%)

Aurobindo Pharma Ltd Q1FY22 (Consolidated, QoQ)

• Revenue down 5% at Rs 5,701.98 crore Vs Rs 6,001.50 crore (Bloomberg estimate: Rs 6,158.83 crore)

• Net profit down 4% at Rs 769.97 crore Vs Rs 801.58 crore (Bloomberg estimate: Rs 825.29 crore)

• Ebitda down 5% at Rs 1,209.38 crore Vs Rs 1,274.67 crore (Bloomberg estimate: Rs 1,313.75 crore)

• Margins constant at 21.2% (Bloomberg estimate: 21.3%)

• Declared an interim dividend of Rs 1.50 per share

• Approved scheme of amalgamation between Auronext Pharma, Mviyes Pharma Venture and Aurobindo Pharma

• The company will subscribe to Rs 420 crore of fresh shares in Cronus Pharma. Aurobindo will own 51% of Cronus after the investment.

Eicher Motors Q1FY22 (Consolidated, QoQ)

• Revenue down 33% at Rs 1,974 crore Vs Rs 2,940 crore (Bloomberg estimate: Rs 1,833.6 crore)

• Profit down 55% at Rs 237 crore Vs Rs 526 crore (Bloomberg estimate: Rs 233 crore)

• Ebitda down 43% at Rs 363 crore Vs Rs 634 crore (Bloomberg estimate: Rs 358 crore)

• Margin at 18.4% Vs 21.6% (Bloomberg estimate: 19.5%)

• Vinod K Dasari has stepped down as the chief executive officer of Royal Enfield

• B Govindarajan, chief operating officer at Royal Enfield since 2013, will take on the responsibility of leading the two-wheeler brand effective August 18.

• Chip shortage may hamper production for ongoing quarter and possible through the rest of the year as well: Siddhartha Lal

• Royal Enfield total exports stood at 17,493 units

• Announced local motorcycle assembly unit in Colombia

Ashok Leyland Q1FY22 (Standalone, QoQ)

• Revenue down 58% at Rs 2,934.59 crore Vs Rs 7,000.49 crore (Bloomberg estimate: Rs 2,830.8 crore)

• Net loss at Rs 282.29 crore Vs Net profit of Rs 241.17 crore (Bloomberg estimate: Net loss of Rs 212.9 crore)

• Ebitda loss at Rs 156.5 crore Vs Ebidta profit at Rs 534.16 crore (Bloomberg estimate: Ebitda loss of Rs 14.47 crore)

Redington (India) Q1FY22 (Consolidated, QoQ)

• Revenue down 13% at Rs 13,454.05 crore Vs Rs 15,503.94 crore

• Net profit down 22% at Rs 236.67 crore Vs Rs 302.51 crore

• Ebitda down 19% at Rs 344.28 crore Vs Rs 425.10 crore

• Margin at 2.6% Vs 2.7%

Rashtriya Chemicals and Fertilizers Q1FY22 (Consolidated, QoQ)

• Revenue up 4% at Rs 2,390.70 crore Vs Rs 2,295.31 crore

• Net profit up 35% at Rs 207.48 crore Vs Rs 153.51 crore

• Ebitda down 12% at Rs 206.67 crore Vs Rs 234.08 crore

• Margin at 8.6% Vs 10.2%

• Approved issue of secured/unsecured NCDs aggregating up to Rs 1000 crore in next twelve months through private placement basis

Ujjivan Financial Services Q1FY22 (Consolidated, YoY)

• Net Interest Income down 11% at Rs 434.57 crore Vs Rs 489.59 crore

• Net loss at Rs 82.68 crore Vs Net profit of Rs 65.05 crore

• Appointed Carol Furtado as the Chief Executive Officer effective August 13

Dish TV India Q1FY22 (Consolidated, QoQ)

• Revenue down 3% at Rs 730.97 crore Vs Rs 751.75 crore

• Net profit at Rs 50.24 Vs Net loss of Rs 1,408.65 crore

• Ebitda up 3% at Rs 438.77 crore Vs Rs 426.04 crore

• Margin at 60% Vs 56.7%

Housing And Urban Development Corporation Q1FY22 (Consolidated, QoQ)

• Revenue up 2% at Rs 1,790.31 crore Vs Rs 1,759.38 crore

• Net profit down 23% at Rs 404.57 crore Vs Rs 526.28 crore

• Ebitda down 12% at Rs 1,681.98 crore Vs Rs 1,905.71 crore

• Margin at 93.9% Vs 108.3%

Thyrocare Technologies Q1FY22 (Consolidated, QoQ)

• Revenue up 12% at Rs 164.65 crore Vs Rs 146.84 crore (Bloomberg estimate: Rs 157.9 crore)

• Net profit up 47% to Rs 55.58 crore Vs Rs 37.75 crore (Bloomberg estimate: Rs 42.33 crore)

• Ebitda up 38% at Rs 71.23 crore Vs Rs 51.53 crore (Bloomberg estimate: Rs 62.13 crore)

• Margin at 43.3% Vs 35.1% (Bloomberg estimate: 39.3%)

Stocks To Watch

• Coal India: Plans to increase prices of the fuel sold through long-term contracts. The company is in talks with stakeholders, including the government, and all are on board with the plan, considering costs have risen, Chairman Pramod Agrawal said. Costs are rising due to higher diesel prices and the company will start making provisions for a workers’ wage increase from the quarter that began in July. The company saw 30% premiums over notified prices in e-auction sales. Premiums could rise in coming months due to huge demand for coal and the surge in international prices, Agrawal added. Expects production of about 640 million tons versus target of 670 million tons in the current fiscal year ending March. Shipments seen at about 700 million tons versus 740 million tons target.

• Tata Power: Tata Power Solar Systems, a wholly owned subsidiary of the company, has bagged an order worth Rs 386 crore. The subsidiary will construct 50MWp Solar PV Plant with 50MWh Battery Energy Storage System project at Phyang village in Leh, Ladakh. The commercial operation date for this project is set for March 2023. With this project, the order pipeline of Tata Power Solar now stands at approximately 4GWp with approximate order value of Rs 12,414 crore.

• Future Group stocks: Future Coupons Pvt. has filed a fresh petition in Supreme Court challenging a high court ruling that ordered a complete halt to selling its assets to Reliance Industries Ltd. The firm has challenged the high court’s March 18 order to enforce a Singapore tribunal’s halt to the sale. The Supreme Court has not allotted a date for hearing the new case as yet, according to a Bloomberg report.

• SRF: Gujarat Pollution Control Board has issued directions to suspend operations in P2 and two other allied plants in Dahej Chemicals Complex. The company sees no material effect on operations from GPCB directions.

• Earnings: Oil and Natural Gas Corporation, Grasim Industries, Apollo Hospitals Enterprise, Indian Railway Finance Corporation, Indraprastha Gas, Star Cement, AIA Engineering, Petronet LNG, Akzo Nobel India, Bharat Dynamics, Mindspace Business Parks REIT, Borosil, Burger King India, Fine Organic Industries, Tube Investments of India, Forbes & Company, Glenmark Pharmaceuticals, Astra Microwave Products, Bajaj Hindusthan Sugar, Bayer Cropscience, Ingersoll-Rand (India), Jammu & Kashmir Bank, KRBL, Kaveri Seed Company, MOIL, Mahanagar Telephone Nigam LTD., NBCC (India), NCL Industries, NHPC, Nirlon, Seamec, Sun Tv Network, Tide Water Oil (India), Westlife Development

Pledge Share Details

• Emami: Promoters (Sneha Enclave and Suraj Finvest) revoked pledge of 9.61 lakh shares between August 10-11.

  As reported on August 12.

Bulk Deals

• Stovec Industries: Plutus Wealth Management LLP sold 16,214 shares (0.78%) at Rs 2,601.07 per share.

• Gufic Biosciences: Financial Investors Trust bought 5 lakh shares (0.52%) at Rs 205.89 per share.

Block Deals

• Globus Spirits: Ram Bagh Facility Services LLP bought 1.62 lakh shares (0.56%) at Rs 862.05 per share. Long Term Equity Fund bought 1.75 lakh shares (0.61%) at Rs 862.05 per share. International Asset Reconstruction Company sold 3.37 lakh shares (1.17%) at Rs 862.05 per share.

Insider Trades

• Adani Green Energy: Promoter Infinite Trade and Investments bought 38.25 lakh shares between August 9-11.

• Dixon Technologies (India): Promoter Geeta Vaswani sold 1,000 shares between August 9-10.

• Grindwell Norton: Promoter KM Narang sold 4,124 shares on August 11.

• Jindal Stainless (Hisar): Promoter JSL Overseas bought 2.77 lakh shares on August 11.

• JTL Infra: Promoter Jagan Industries sold 75,000 shares on August 11.

• KEI Industries: Promoter Anil Gupta sold 1.37 lakh shares between August 10-11.

• Karda Constructions: Promoter Karamchand Karda sold 5.25 lakh shares on August 11.

• Mold-Tek Packaging: Promoters (Venkateswara Pattabhi, Adivishnu Mythri and Golukonda Satyavati) sold 2.98 lakh shares on August 6.

• SVP Global Ventures: Promoters (Prafulla Gattani and Shubhankar Gattani) sold 1.04 lakh shares on August 9.

IPO Watch

• Chemplast Sanmar Ltd.'s Rs 3,850-crore initial public offering has become the third least subscribed issue so far this year. The IPO was subscribed 2.17 times on August 12.

• Aptus Value Housing Finance’s IPO subscribed 17.2 times on day 3.

• Government plans to sell up to 25% in National Seeds Corporation via IPO

Trading Tweaks

• Ex-Date AGM: Suven Pharmaceuticals, Fine Organic Industries, Indo Rama Synthetics (India)

• Ex-Date Final Dividend: Fine Organic Industries, Suven Pharmaceuticals

• Ex-Date Special Dividend: Fine Organic Industries

• Ex-Date Interim Dividend: Pitti Engineering, REC

• Ex-Date Dividend: RPG Life Sciences, Rubfila International

• Record Date Final Dividend: Karda Constructions

• Record Date Interim Dividend: NACL Industries

• Record Date Stock Split: Karda Constructions

• Record Date Bonus Issue: Karda Constructions

• Price Band Revised From 10% To 5%: NELCO

• Move Out Of Short-Term ASM Framework: Vidhi Specialty Food Ingredients, Emami Paper Mills, Gravita India, Welspun India

Money Market Update

• The rupee ended at 74.25 against the U.S. dollar on Thursday as compared to Wednesday's closing of 74.44.

F&O Cues

• Nifty August futures ended at 16,365, a premium of 0.6 points

• Nifty August futures added 6.26%, and 15,297 shares in Open Interest

• Nifty Bank August futures ended at 36,128, a premium of 190.95 points

• Nifty Bank August futures shed 6.84%, and 5,603 shares in Open Interest

• Securities that continue to be on the ban list: Canara Bank, Indiabulls Housing Finance, Punjab National Bank, RBL Bank, Sun TV

• Securities removed from the ban list: Nalco