All You Need To Know Going Into Trade On August 4

Stocks To Watch

• Bandhan Bank: Bloomberg News reports that GIC has received approval from the Reserve Bank of India to increase its stake in the lender to 10%. MD & CEO Chandra Shekhar Ghosh said that the promoters may use the stake sale proceeds to start insurance, Mutual Fund units.
• Yes Bank: Moody's upgrades the long-term foreign currency issuer rating to B3 from Caa1, following the equity capital raise. The outlook has been revised to stable from positive. The capital raise has bolstered the lender's solvency and is the main driver for the upgrade, Moody's said in a note. The successful capital raise showcases the bank's regained access to the external market funds, which is a result of its improved financial strength and will support depositor confidence.
• Asian Paints: Re-opened nearly 95% of its sales offices while manufacturing facilities working at nearly 60-70% levels. Business has picked up progressively in tier 2/3/4 cities. Business was much slower in metros, some tier-1 cities. Business achieved about 80% of base volumes in May and improved to double-digit volume growth of over 14% in June 2020.
• Alembic Pharma: Launches QIP issue on August 3 at Rs 980.75 per share. The price is a 0.44% discount to Monday's close. The company may offer a discount of not more than 5% on the floor price, as per SEBI regulations. The indicative price for the same is Rs 932 per share which is a 5.4% discount to Monday's close. The board will meet on August 6 to consider the issue price. The issue size is tentatively Rs 650 crore with a green shoe option of an additional Rs 100 crore.
• Jubilant Lifesciences: Launches Remdesivir injection under the brand name ‘JUBI-R’ in the Indian market at a price of Rs 4,700 per vial of 100 mg (lyophilized injection).
• Biocon: Transaction documents have been executed between the company, Biocon Biologics, Active Pine LLP and Tata Capital Growth Fund. On July 31, the company announced that Tata Capital Growth fund will invest Rs 225 crore in Biocon Biologics for an equity stake of 0.85%.
• Infosys: National Bank of Bahrain selects the company's banking solution Finacle for its transaction banking business.
• Aditya Birla Fashion and Retail: Promoters increased their stake to 59.79% from 59.07%, through allotment of equity shares, pursuant to the rights issue on July 30.
• Bank of India: Has deferred capital raising for the next ensuing meeting.
• AU Small Finance Bank: Warburg Pincus reduced stake to 4.58% from 6.84% on July 30.
• KEC International: Secured new orders worth Rs 1,192 crore for transmission, distribution, infra and cables segments.
• Coffee Day Enterprises: New statutory auditors Sundaresha & Associates resigned within two weeks, due to technical reasons.
• Non-Nifty Earnings Today: Dixon Technologies, Godrej Consumer Products, Gujarat Gas, Narayana Hrudayalaya, PI Industries, SPARC, Tata Consumer Products, Varun Beverages.

Earnings Reported After Market Hours

BSE Q1FY21

• Revenue down 7.9% to Rs 103.2 crore
• Net profit down 19.6% to Rs 33.2 crore
• Ebitda loss of Rs 13.8 crore from Ebitda gain of Rs 1.7 crore
• Higher administration and other expenses impact operating performance
• Higher investment income narrows decline in bottomline numbers
• All numbers are consolidated and compared on a year-on-year basis

Exide Industries Q1FY21

• Revenue down 44.3% to Rs 1,547.6 crore
• Net profit down 80.4% to Rs 44 crore
• Ebitda down 63.6% to Rs 148.5 crore
• Ebitda margins at 9.6% from 14.7%
• Numbers below Bloomberg consensus estimates
• All numbers are standalone and compared on a year-on-year basis

KPIT Technologies Q1FY21

• Revenue down 11.4% to Rs 492.7 crore
• Net profit down 35.3% to Rs 24 crore
• Ebit down 35.9% to Rs 26.4 crore
• Ebitda margin at 5.4% from 7.4%
• Numbers in-line with Bloomberg consensus estimates
• All numbers are standalone and compared on a quarter-on-quarter basis

VST Industries Q1FY21

• Revenue down 19.4% to Rs 245.6 crore
• Net profit flat at Rs 75.7 crore
• Ebitda down 13.7% to Rs 99.3 crore
• Ebitda margin at 40.4% from 37.8%
• Higher excise duty payments offset by lower corporate taxes
• Lower raw material costs aid margin expansion
• All numbers are standalone and compared on a year-on-year basis

Brokerage Radar

Macquarie On Havells India

• Upgrade to outperform from underperform
• Price target of Rs 667
• Home appliances segment augments medium-term growth potential
• Premium valuation reflects strength of FMEG business and opportunity in home appliances
• Increasing presence in rural areas and widening retail presence adds to growth potential
• Worst is behind; factor in ~9% earnings decline for the rest of FY21
• Factor in 53% growth for FY22E driven by a low base in the core business
• Key Risks: Rising competitive intensity in FMEG, disappointment in Lloyds' performance and contraction in multiple with weak earnings

Macquarie On Crompton Greaves Consumer Electricals

• Outperform rating maintained
• Price target raised to Rs 286 from Rs 275
• Market leader in core categories with industry-leading margins and RoC
• Foray into new categories to support medium-term growth
• Branding, portfolio expansion and expanding distribution are core growth strategies
• Superior margins and lower working capital to drive healthy RoE
• Valuations are sustainable given business and earnings profile
• Key Risks: Higher dependence from fewer categories, PE classified as promoter may explore exit options and weaker-than-expected margins

UBS On Exide Industries

• Buy rating maintained
• Price target of Rs 220
• Raw material cost as a percentage of sales rose despite decline in Zinc prices due to potentially older high value inventory
• Stock remains attractive on compelling valuations
• High exposure to replacement battery demand likely to be more resilient

BofA Securities On Nestle India

• Upgrade to buy from neutral
• Price target raised to Rs 18,500 from Rs 17,500
• Healthy sales and profitability to support growth
• Surge in at-home food consumption likely to remain elevated in the medium-term
• See healthy sales momentum due to portfolio expansion, mix
• Demand surge, consolidation, new products to drive volumes
• Stable / lower raw material costs will support margins
• Expect 18% EPS CAGR over FY19-21E
• Premium valuations will be supported

Pledged Share Details

• Ajanta Pharma: Promoter Ravi Agrawal revoked pledge of 5 lakh shares on August 3
• Jyothy Labs: Promoter MP Ramachandran released pledge of 1.97 crore shares between July 27 - August 3

(As Reported On August 3)

Bulk Deals

Bandhan Bank's Bulk Deal On Monday

Promoter Bandhan Financial Holding sold 33.74 crore shares (20.95% stake) at an average price of Rs 313.35 per share.

Buyers:

• Caladium Investment - A GIC affiliate acquired 4 crore shares (2.49% stake) at Rs 313.1 per share.
• Credit Suisse acquired 2.56 crore shares (1.59% stake) at Rs 313.1 per share
• Camas Invesments - A Temasek affiliate acquired 2.46 crore shares (1.53% stake) at Rs 313.1 per share
• Societe Generale acquired 2.84 crore shares (1.76% stake) at Rs 313.1 per share
• Copthall Mauritius Investment - A Blackrock affiliate acquired 1.25 crore shares (0.78% stake) at Rs 313.1 per share
• Bandhan Employees Welfare Trust acquired 93 lakh shares (0.58% stake) at Rs 313.1 per share
• Morgan Stanley acquired 81.75 lakh shares (0.51% stake) at Rs 313.1 per share

• Xelpmoc Design and Tech: University of Notre Dam sold 77,025 shares (0.56%) at Rs 110.2 per share.
• Apollo Hospitals: Munchener Ruckversicherungs sold 23.97 lakh shares (1.72%) at Rs 1,600.43 per share.

Trading Tweaks

• AGM Date: Godrej Industries, Chalet Hotels, Page Industries, Punjab National Bank, Solara Active Pharma, Union Bank of India
• Ex-Date For Rights Issue: Satin Creditcare Network (Rights at 48:125, at premium of Rs 50 per share)
• Fund Raising: Mangalore Refinery & Petrochem
• Price Band Revised From 10% To 5%: Kopran, Alpa Laboratories, InfoBeans Technologies
• Price Band Revised From 20% To 10%: Laurus Labs, Mastek, Unichem Laboratories, Krebs Biochemicals and Industries.
• Move Into Short-Term ASM Framework: Weizmann, Krebs Biochemicals and Industries, MPS, Oriental Aromatics
• Move Into Short-Term ASM Framework: Heritage Foods, Shankara Building Products

Insider Trades

• JSW Steel: Promoters acquired 14 lakh shares between July 30-31
• Trident: Promoters acquired 18.78 lakh shares on July 31

(As Reported On August 3)

Money Market Update

• The currency ended at 75.01 against the U.S. Dollar on Monday as compared to Friday's close of 74.81.
• The rupee was the worst performer in Asia for Monday's session.

F&O Cues

• Nifty August futures end at 10,916.2; premium of 25 points from 31.5 points
• Nifty August futures shed 0.6% and 58,500 shares in Open Interest
• Nifty Bank August futures end at 21,192; premium widens to 110 points from 55 points
• Nifty Bank August futures add 14% and 1.94 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.55

Nifty: August 6 Expiry

• Maximum Open Interest on Call side at 11,200 strike (35.6 lakh shares)
• Maximum Open Interest on Put side at 10,800 strike (20.4 lakh shares)
• Active Options: 10,700 Put (+6.7 lakh shares) and 11,000 call (+20 lakh shares)

Nifty: August 27 Expiry

• Maximum Open Interest on Call side at 11,500 strike (21.4 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (33.8 lakh shares)

Active Stock Options & Fund Flows