All You Need To Know Going Into Trade On August 2
Asian stocks and U.S. equity futures rose early Monday as some of the concerns over Covid-19 reopening disruption and China’s regulatory crackdown eased.
Equities climbed in Japan, South Korea and Australia, where Afterpay Ltd. surged after digital-payments platform Square Inc. agreed to buy the buy-now, pay-later company. Futures on the S&P 500 and Nasdaq 100 pushed higher. Wall Street retreated Friday, including a slide in Amazon.com Inc., amid concern earnings growth at technology companies has peaked.
Hang Seng contracts earlier signalled a steady open. China is pushing ahead with a crackdown on everything from technology to private education and property, leading the U.S. Securities and Exchange Commission to halt initial public offerings of Chinese firms pending better risk disclosures. Its Chinese counterpart called for more communication to find a resolution.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.74% at 15,890.50 as of 7:10 a.m.
Crude oil traded near $74 a barrel as concerns about the delta variant’s impact on fuel demand eased amid tight global supplies. Bitcoin slipped back below $40,000.
Data to watch:
10:30am: Markit India Manufacturing PMI for July, prior 48.1
Earnings Post Market Hours
Britannia Industries Q1FY22 (Consolidated, QoQ)
Revenue up 8.7% at Rs 3,403.46 crore Vs Rs 3,130.75 crore (Bloomberg estimate: Rs 3,171.1 crore)
Profit up 6.9% at Rs 389.55 crore Vs Rs 364.32 crore (Bloomberg estimate: Rs 412.1 crore)
Ebitda up 9.6% at Rs 553.78 crore Vs Rs 505.39 crore (Bloomberg estimate: Rs 545.4 crore)
Margin at 16.3% Vs 16.1% (Bloomberg Est: 17.2%)
UPL Q1FY22 (Consolidated, QoQ)
Revenue down 33% at Rs 8,515 crore Vs Rs 12,796 crore (Bloomberg estimate: Rs 8,554.9 crore)
Net profit down 36% at Rs 677 crore Vs Rs 1,063 crore (Bloomberg estimate: Rs 680.7 crore)
Ebitda down 33% at Rs 1,774 crore Vs Rs 2,651 crore (Bloomberg estimate: Rs 1,937.3 crore)
Margins at 20.8% Vs 20.7% (Bloomberg estimate: 22.64%)
Bandhan Bank Q1FY22
Net Profit down 32% at Rs 373 crore Vs Rs 549.8 crore (YoY) (Bloomberg estimates: Rs 275 crore)
NII up 16.7% at Rs 2,114 crore Vs Rs 1,811 crore (YoY) (Bloomberg estimate: Rs 1,977 crore)
GNPA at 8.2% vs 6.8% (QoQ)
NNPA at 3.3% vs 3.5% (QoQ)
Provisions up 62% at Rs 1,375 crore Vs Rs 849.06 crore (YoY)
NIM at 8.5% Vs 8.2% (YoY)
Total deposits rose 27.6% to Rs 77,335.5 crore (YoY)
Total advances rose 8.1% to Rs 80,356.9 crore (YoY)
Added 0.5 million customers during the quarter with total customer base reaching to 23.5 million
IDFC First Bank Q1FY22 (Standalone)
Net Loss at Rs 630 crore Vs Net Profit of Rs 94 crore (YoY) (Bloomberg estimates: Rs 61.7 crore)
NII up 25% at Rs 2,185 crore Vs Rs 1,744 crore (YoY) (Bloomberg estimates: NII: Rs 2,053 crore)
GNPA at 4.61% Vs 4.15% (QoQ)
NNPA at 2.32% Vs 1.86% (QoQ)
Asset quality worsens due to a Mumbai-based toll road project
Single account worth Rs 854 crore was classified as NPA during the quarter, due to disruption caused by Covid-19
Bharat Heavy Electricals Limited Q1FY22 (Consolidated, QoQ)
Revenue down 60% at Rs 2,901.32 crore Vs Rs 7,170.47 crore
Net loss at Rs 447.48 crore Vs Rs 1,034.82 crore
Ebitda loss of Rs 475.57 crore Vs Rs 1,268.4 crore
Macrotech Developers Q1FY22 (Consolidated, QoQ)
Revenue down 37% at Rs 1,605.37 crore Vs Rs 2,533.56 crore
Net profit down 48% at Rs 160.91 crore Vs Rs 310.56 crore
Ebitda down 54% at Rs 375.66 crore Vs Rs 808.39 crore
Margins at 23.4% Vs 31.9%
Shriram Transport Finance Q1FY22 (Consolidated, QoQ)
NII down 3% at Rs 2,150.02 crore Vs Rs 2,206.12 crore
Net profit down 77% at Rs 169.94 crore Vs Rs 754.93 crore
Gross stage 3 assets at 8.18% Vs 7.06%
Net stage 3 assets at 4.74% Vs 4.22%
Total AUM stood at Rs 1.19 lakh crore Vs Rs 1.17 lakh crore (QoQ)
Approved Resource Mobilisation Plan
Fund raising via bonds issues August 1-October 31
Cholamandalam Investment and Finance Company Q1FY22 (Consolidated, QoQ)
NII up 1% at Rs 1,378.09 crore Vs Rs 1,359.82 crore
Net Profit up 34% at Rs 328.55 crore Vs Rs 245.13 crore
Impairments stood at Rs 551.93 crore Vs Rs 503.66 crore
Total restructuring stood at 5.44% of the book
Aggregate disbursements at Rs 3,635 crore
Total AUM at Rs 75,763 crore
Approved issue of secured/unsecured NCDs of face value of Rs 10 lakh each at par aggregating to Rs 28,000 crore in tranches
Equitas Small Finance Bank Q1FY22 (Consolidated, QoQ)
NII up 3% at Rs 461.03 crore Vs Rs 448.57 crore
Net profit down 89% at Rs 11.92 crore Vs RS 112.86 crore
GNPA at 4.76% Vs 3.73%
NNPA at 2.38% Vs 1.58%
Provisions up 55% at Rs 150.19 crore Vs Rs 96.98 crore
Blue Dart Express Q1FY22 (Consolidated, QoQ)
Revenue down 11% at Rs 866.22 crore Vs Rs 968.28 crore
Net profit down 65% at Rs 31.27 crore Vs Rs 90 crore
Ebitda down 36% at Rs 159.08 crore Vs Rs 248.32 crore
Margins at 18.4% Vs 25.6%
JK Paper Q1FY22 (Consolidated, QoQ)
Revenue down 26% at Rs 660.75 crore Vs Rs 898.16 crore
Net profit down 23% at Rs 104.22 crore Vs Rs 136.07 crore
Ebitda down 17% at Rs 190.30 crore Vs Rs 228.43 crore
Margins 28.8% Vs 25.4%
Finolex Industries Q1FY22 (Consolidated, QoQ)
Revenue down 23% at Rs 965.72 crore Vs Rs 1,249.34 crore
Net profit down 51% at Rs 145.52 crore Vs Rs 298.84 crore
Ebitda down 49% at Rs 209.51 crore Vs Rs 410.05 crore
Margins at 21.7% Vs 32.8%
Stocks To Watch
Tata Motors: Plans to increase the share of electric vehicles from 2% of the portfolio to 25% in the medium to long term, said Chairman N Chandrasekaran at the AGM. The company plans to launch 10 EV models before 2025. Further, the supply issues emerging from the semiconductor crunch and pandemic will hit the company’s production volumes, sales, cash flow and margins in the near-term, said Chandrasekaran. Expect the situation to improve in the second half of the ongoing financial year. The company is also on path to wiping out its debt by FY24. In FY21 we were able to reduce debt by over Rs 7,500 crore, he added.
Coforge: Approved raising up to Rs 375 crore via share issue. It has also approved issuance of depository receipts in one or more tranches.
Azure Power Global: CCI gets notice of acquisition in Azure by Omers
Dr. Reddy’s and Lupin: Novartis files three suits to block copies of Rydapt Cancer Drug
Torrent Power: Entered into a Securities Purchase Agreement for acquisition of 100% of the share capital and all securities of LREHL Renewables India SPV 1 from Lightsource India and Lightsource Renewable Energy. The acquisition will cost company approximately Rs 317 crore and is expected to be completed in 2 months.
Vedanta: Commenced winding-off operations at oxygen plant in Thoothukudi on July 30 to allow enough time for the defrosting process before the date indicated by the Supreme Court. As per the apex court's order on April 27, Vedanta has completed the three-month duration granted by the court to operate the oxygen plant until July 31. The company’s application for extension of the facility for a period of 6 months, is listed to be heard by the Supreme Court on August 6. The company said it is optimistic of further orders from the Supreme Court on resuming production.
Info Edge (India): Invested Rs 7 crore in 4B Networks, through its wholly owned subsidiary, to increase its shareholding in the company to 19.9% from 12.3%. The company has agreed to acquire additional 1,358 Compulsorily Convertible Preference Shares of 4B Networks.
Den Networks: The company and its wholly owned subsidiary, Futuristic Media and Entertainment, have sold their entire holding of 1.57 crore equity shares in CCN DEN Network, representing 51% of the equity share capital, to Virender Gaur and Mayank Gaur (the remaining shareholders) for Rs 8.67 crore.
Hero MotoCorp: Commenced retail sales in Mexico. The company has introduced an extensive portfolio of products, including motorcycles and a scooter, thereby catering to the diverse segments of customers. The product portfolio will be available across the country through the retail arm of the distributor, agencies, and dealers, and will have attractive financing options, the company said.
Atul Auto: Received approval from RBI for acquisition of equity shares of Khushbu Auto Finance.
Titagarh Wagons: Says Italy unit has flagged off the first train for Pune Metro coach, out of the 34 trains order
ITC: Wimco has become a wholly owned subsidiary of the company with effect from July 29, consequent to reduction of equity share capital of that company becoming effective upon receipt of necessary approvals, the company said.
Reliance Power: Defaults on Rs 14.47 crore of debt repayments on June 30
Earnings: HDFC, Punjab National Bank, Emami, Castrol India, RBL Bank, Carborundum Universal, CG Power and Industrial Solutions, Orient Cement, Varun Beverages, Ajmera Realty & Infra India, Shree Renuka Sugars, Avadh Sugar & Energy, Balaji Amines, Capri Global Capital, JMC Projects (India), IFB Agro Industries, Kalyani Steels, Mangalore Chemicals & Fertilizers, Nahar Capital & Financial Services, Nahar Polyfilms, Nahar Spinning Mills, Asian Star Co
Billionaire Agarwal’s Sterlite Power said to hire banks for IPO
Rolex Rings’ $98 million India IPO gets 130 times demand for shares offer
Devyani International sets Rs 86-90/share price band for $248 million IPO, offer to open Aug. 4-6
Exxaro Tiles sets Rs 118-120/shares price band for Rs 160 crore IPO, offer to open Aug. 4-6
Krsnaa Diagnostics sets Rs 933-954/share price band for Rs 1,210 crore IPO, offer to open Aug. 4-6
Fino Payments, Cartrade Tech to hit capital market amid IPO boom
IndusInd Bank raised to Buy at KR Choksey; price target Rs 1,160
TVS Motor cut to Hold at Arihant Capital; price target Rs 598
Bandhan Bank raised to Buy at Nirmal Bang; price target Rs 336
UPL cut to Accumulate at Nirmal Bang; price target Rs 813
Canara Bank raised to Buy at Quantum Secs; price target Rs 195
Firstsource Solutions raised to Accumulate at Dolat Capital
JK Lakshmi cut to Sell at Dolat Capital; price target Rs 640
Jyothy Labs rated New Buy at YES Research; price target Rs 211
LIC Housing cut to Reduce at Prabhudas Lilladher; price target Rs 390
LIC Housing cut to Hold at HSBC; price target Rs 400
Marico raised to Buy at Dolat Capital; price target Rs 625
SBI Life cut to Accumulate at KR Choksey; price target Rs 1,240
Tech Mahindra raised to Neutral at Phillip Secs; price target Rs 1,180
Torrent Pharma cut to Hold at ICICIdirect.com; price target Rs 3,250
July Auto Sales
Maruti Suzuki: Total sales up 10.24% at 1.62 lakh units Vs 1.47 lakh units. Exports up 23.13% at 21,224 units Vs 17,237 units. Mini and compact vehicle segment sales fell 8.2% to 89,953 units. Utility vehicle sales rose 26.6% to 32,272 units.
Tata Motors: Total passenger vehicle sales up 25.19% at 30,185 units Vs 24,110 units. Total domestic sales up 18.93% at 51,981 units Vs 43,704 units. Total domestic commercial vehicle sales up 7.90% at 23,848 units Vs 22,100 units.
Escorts: Tractor sales down 47.62% at 6,564 units Vs 12,533 units. Exports down 11.78% at 509 units Vs 577 units.
Eicher Motors: Total Royal Enfield sales up 2.29% at 44,038 units Vs 43,048 units. Exports down 34.35% at 4,748 units Vs 7,233 units. Volvo Eicher Commercial Vehicles sales up 75% at 4,271 units Vs 2,438 units. Domestic sales up 101.87% at 3,553 units Vs 1,760 units. Total exports up 4.91% at 640 units Vs 610 units.
Comparison made on a month-on-month basis.
Pledge Share Details
Adani Ports and SEZ: Promoter group (Gautam Adani and Rajesh Adani) created a pledge of 23 lakh shares on July 28.
Adani Transmission: Promoter group (Gautam Adani and Rajesh Adani) created a pledge of 24 lakh shares on July 28.
Ajanta Pharma: Promoter Aayush Agrawal revoked pledge of 6.45 lakh shares between May 10-12.
As reported on July 30.
Tejas Networks: Panatone Finvest bought 1.56 crore shares (16.77%) at Rs 257.99 per share. Cascade Capital Management Mauritius sold 1.45 crore shares (15.49%) at Rs 258 per share.
Cera Sanitaryware: India 2020 II Investors sold 3 lakh shares (2.31%) at Rs 4,450.01 per share. Government of Singapore bought 2.63 lakh shares (2.03%) at Rs 4,450.02 per share.
Himadri Speciality Chemical: BC India Investments sold 25 lakh shares (0.60%) at Rs 52.50 per share.
Who’s Meeting Whom
IIFL Finance: To meet Fiera Capital on August 3.
UTI Asset Management Company: To meet SBI Investec on August 2 and White Oak Capital on August 3.
5Paisa Capital: To meet Motilal Oswal on August 5.
Ex-Date AGM: IDBI Bank, Take Solutions, Suven Life Sciences, Union Bank of India, UltraTech Cement
Ex-Date Final Dividend: Brigade Enterprises, Centum Electronics, ICICI Lombard General Insurance Company, Kirloskar Industries, Motilal Oswal Financial Services, Nesco, SH Kelkar and Company
Ex-Date Dividend: GE Power India, Ultratech Cement
Record Date Special Dividend: Larsen & Toubro Infotech
Price Band Revised From 10% To 5%: Khaitan Chemicals & Fertilizers
Price Band Revised From 10% To 20%: Pearl Global Industries
Price Band Revised From 20% To 10%: Indian Metals & Ferro Alloys
Move Into Short-Term ASM Framework: GHCL
Move Into ASM Framework: Nitin Spinners, Jai Balaji Industries, Pearl Global Industries, Parsvnath Developers
Move Out Of ASM Framework: Steel Exchange India, Sonata Software, Saksoft, Kajaria Ceramics, Jet Airways (India)
Money Market Update
The rupee ended at 74.41 against the U.S. Dollar on Friday as compared to Thursday's closing of 74.28.
Nifty August futures ended at 15,785, a premium of 21.95 points.
Nifty August futures added 6.75% and 11,912 shares in Open Interest
Nifty Bank August futures ended at 34,690.50; a premium of 106.15 points
Nifty Bank August futures added 6.92% and 5,431 shares in Open Interest
Securities added to the ban list: Sun TV