All You Need To Know Going Into Trade On August 5

Stocks To Watch

• Axis Bank: Launches QIP issue at Rs 442.19 per share, a 3% premium to Tuesday's closing price. The lender may offer a discount of not more than 5% on the floor price as per SEBI regulations. The deal size is worth $1.33 billion, including a base size of $1.06 billion and an option to upsize by an additional $267 million as per the terms accessed by Bloomberg News. The board will meet on August 10 to consider the issue price.
• SAIL: Bloomberg News reports that July steel sales were up 50% at 1.58 million tonnes. The company has reduced its borrowings below Rs 50,000 crore due to better cash collections despite lower prices compared to last year, along with stringent financial measures.
• Maruti Suzuki: Chairman RC Bhargava said that sales in H2FY21 will be near last year’s levels. The overall market seems to be in favour of small hatchbacks and petrol and CNG cars.
• Info Edge: Launched a QIP issue at Rs 3,177.18 per share - a 0.3% discount to Tuesday's closing price. The board will meet on August 7 to consider the issue price and other details.
• Sun Pharma Advanced Research Company: As on June 30, the company’s current liabilities exceed current assets and it is in the process of raising funds for its operations. The company also received a financial support letter from its parent Sun Pharma which is valid till the time the company is able to raise funds from external sources.
• Adani Ports & SEZ: Has raised $750 million via unsecured notes.
• Dixon Technologies: Management stated in a concall that due to the announcement of moving to the import of television sets on restricted list, the company will further expand its capacity for LED TV’s to 5.5 million units (earlier expansion plan was for 4.4 million units) during the next 6 months. The company has also applied for PLI schemes for mobile manufacturing to the government.
• SRF: Has capitalized and commissioned its BOPET film line in Hungary for its European arm for 80 million Euros.
• Havells: To issue commercial papers worth Rs 300 crore to ICICI Bank and Rs 200 crore to ICICI Prudential Money Market Fund.
• HPCL: Issued NCDs worth Rs 1,200 crore on a private placement basis.
• SH Kelkar: Has initiated capex of 1.5 million Euros to enhance production capacity of its latest acquisition - Creative Flavours and Fragrance in Italy. The company had completed its acquisition on July 28.
• Hinduja Global Solutions: U.K. subsidiary acquired additional 14.3% equity stake in HGS Digital LLC, U.S.A, in accordance with the purchase agreement entered into in March 2018. The company holds 71.33% stake in HGS digital.
• Astral Poly Technik: Board appointed existing Managing Director, Sandeep Engineer as the new chairman from August 25.
• Non-Nifty Earnings Today: Adani Gas, Apollo Tyres, Cadila Healthcare, Canara Bank, DLF, Godrej Properties, INOX Leisure, JK Lakshmi Cement, Jyothy Labs, Strides Pharma.

Earnings Reported After Market Hours

Tata Consumer Products Q1FY21

• Revenue up 13.4% to Rs 2,173.9 crore
• Net profit up 88% to Rs 327.6 crore
• Ebitda up 37.6% to Rs 482.7 crore
• Ebitda margin at 17.8% from 14.7%
• Exceptional gain of Rs 63 crore this quarter due to conversion of a JV company into a wholly-owned subsidiary
• Indian Branded Tea business sees volume growth of 4%
• India food business sees volume growth of 8%
• All numbers are consolidated and compared on a year-on-year basis

PI Industries Q1FY21

• Revenue up 40.6% to Rs 1,060.1 crore
• Net profit up 43.2% to Rs 145.5 crore
• Ebitda up 50.3% to Rs 229.2 crore
• Ebitda margin at 21.6% from 20.2%
• All numbers are consolidated and compared on a year-on-year basis

Astral Poly Technik Q1FY21

• Revenue down 33% to Rs 403.9 crore
• Net profit down 57.7% to Rs 19.9 crore
• Ebitda down 41.7% to Rs 54.3 crore
• Ebitda margin at 13.4% from 15.3%
• Sales at 21,784 MT from 32,752 MT
• All numbers are consolidated and compared on a year-on-year basis

Gujarat Gas Q1FY21

• Revenue down 59.4% to Rs 1,083 crore
• Net profit down 76% to Rs 58.7 crore
• Ebitda down 56.5% to Rs 185.8 crore
• Ebitda margin at 17.2% from 16%
• Total volumes down 58% to 377 mmscm
• Ebitda/scm up 4.5% to Rs 4.09
• All numbers are standalone and compared on a quarter-on-quarter basis

Unichem Laboratories Q1FY21

• Revenue up 16.1% to Rs 317.3 crore
• Net profit of Rs 7 crore from net loss of Rs 13.7 crore
• Ebitda gain of Rs 12 crore from Ebitda loss of Rs 20.2 crore
• Higher other expenses impacted numbers in the base quarter
• All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

PhillipCapital On Godrej Consumer Products

• Upgrade to buy from neutral
• Price target raised to Rs 770 from Rs 510
• Showing initial signs of sustained growth
• Many new launches across price points should improve affordability
• Even if Africa business disappoints, it will not have an impact on aggregate level
• Renewed strategy shall start bearing fruit in the medium-term

UBS On Godrej Consumer Products

• Buy rating maintained
• Price target of Rs 850
• Solid performance in a disrupted quarter
• Management is hopeful of turnaround in its Africa business
• Likely to standout among peers in the near-term given strong hygiene portfolio and an improved outlook for household insecticides

Citi On HDFC Bank

• Buy rating maintained
• Price target of Rs 1,350
• Appointment of new MD & CEO ends period of uncertainty
• Bank in strong position with liabilit franchise and capital position
• Senior level management departures have not impacted performance

CLSA On Varun Beverages

• Buy rating maintained
• Price target raised to Rs 870 from Rs 745
• Cost reductions restrict disruptions during seasonally important quarter
• Impact of lockdown on profitability may be lesser than expected due to strong focus on cost reduction, improving demand trends
• Continue to see multiple growth drivers beyond 2020
• Target multiple of 14 times CY22 is still below five-year average by 15%

Investec On Dixon Technologies

• Buy rating maintained
• Price target raised to Rs 8,400 from Rs 8,000
• Post-tax RoIC to improve to nearly 30% from 26%
• Raise FY21-23E EPS estimates by 4-5%
• Earnings momentum to stay strong
• Outsourcing trend is picking pace with favourable government policy

Nomura On Aegis Logistics

• Initiate coverage with buy rating
• Price target of Rs 260
• Secular play on India's shift to cleaner LPG
• Sustainable growth story not only on environmental but also socio-economic investment considerations
• Thrust on LPG distribution should lead to strong growth over next two decades
• Key Risks: Sharp rise in LPG prices, development of cross-country natural gas pipeline infra

Pledged Share Details

• Emami: Promoter Raviraj Viniyog released pledge of 1.12 crore shares between July 31- August 3
• Surya Roshni: Promoters revoked pledge of 42 lakh shares on July 31
• JSW Energy: Promoter Danta Enterprises revoked pledge of 30.76 lakh shares on July 31

(As Reported On Aug. 4)

Bulk Deals

• Greenlam Industries: Westbridge Crossover Fund sold 19 lakh shares (7.88%) at Rs 585 per share while Jwalamukhi Investment Holdings sold 2.15 lakh shares (0.89%) at Rs 585 per share. Blue Diamond Properties acquired 16.88 lakh shares (6.99%) at Rs 585 per share, Winro Commercial acquired 2.75 lakh shares (1.14%) at Rs 585 per share and Madhusudan Kela acquired 1.52 lakh shares (0.63%) at Rs 585 per share.
• Aarti Surfactants: HDFC MF sold 6.93 lakh shares, DSP MF sold 77,894 shares and Smallcap World Fund sold 59,380 shares.

Who’s Meeting Whom

• Mahindra Logistics: To meet Steinberg AMC, Wellington Management and other investors between August 5-12
• MCX: To meet ASK Investment Managers on August 5

Trading Tweaks

• AGM Date: L&T, EIH, Greaves Cotton, Granules, Voltas, Transport Corporation of India, Asian Paints, ADF Foods, Hawkin Cookers, PNB Housing Finance, VIP Industries, Satin Creditcare Network.
• Record Date For Rights Issue: Satin Creditcare Network (Rights at 48:125, at premium of Rs 50 per share)
• Fund Raising: VIP Industries, GOCL Corporation, Kaya
• Price Band Revised From 10% To 5%: PG Electroplast, Wockhardt
• Price Band Revised From 20% To 10%: SMS Lifesciences
• Move Into Surveillance Measure For High Encumbrance List: Jindal Stainless (Hisar), GMR Infrastructure, Jindal Stainless, Shree Renuka Sugars
• Move Out Of Surveillance Measure For High Encumbrance List: Dilip Buildcon, Adani Ports and Special Economic Zone, NCC, Ahluwalia Contracts, JSW Steel
• Move Into ASM Framework: Oswal Agro Mills, Paisalo Digital, Krebs Biochemicals and Industries, Vikas EcoTech
• Move Into Short-Term ASM Framework: Dishman Carbogen Amcis, Eris Lifesciences, Unichem Laboratories
• Move Out Of Short-Term ASM Framework: Tanla Solutions, VA Tech Wabag, Pricol

Insider Trades

• Trident: Promoter Trident Industrial Corporation acquired 10 lakh shares on August 3
• Mindtree: Promoters sold 4.85 lakh shares between July 30-31

(As Reported On August 4)

Money Market Update

• The currency ended little changed at 75.05 against the U.S. Dollar on Tuesday, as compared to Monday's close of 75.01.
• Six other currencies managed to outperform the rupee on Tuesday.

F&O Cues

• Nifty August futures closed at 11,102; premium narrows to 7 points from 25 points
• Nifty August futures add 4.1% and 4.2 lakh shares in Open Interest
• Nifty Bank August futures end at 21,551; premium narrows to 61 points from 110 points
• Nifty Bank August futures shed 10.5% and 1.63 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.41 from 1.55 across all series

Nifty: August 6 Expiry

• Maximum Open Interest on Call side at 11,200 strike (29.8 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (32.9 lakh shares)
• Active Options: 11,100 Call (+7.7 lakh shares) and 11,000 Put (+6.6 lakh shares)