All You Need To Know Going Into Trade On August 6

Stocks To Watch

• HDFC: Launches QIP issue at a floor price of Rs 1,838.94 per share. The floor price is a 4% premium to Wednesday's closing. The company intends to raise Rs 14,000 crore through issue of equity and Rs 9,000 crore through NCDs. The board will meet on August 10 to consider the issue price for the sale. The company can offer a discount of not more than 5% on the floor price as per SEBI regulations.
• Inox Leisure: Board approves the enabling resolution for fund raising up to Rs 250 crore through the issuance of equity shares / other methods.
• Canara Bank: 22.7% loan book under moratorium post its Q1 results.
• Bharti Airtel: Bloomberg News reports that Telecom Kenya has opted out of the company's proposed network merger.
• National Fertilizers: Sales up 20% to 18.79 lakh MT while Urea sales up 17% to 15.87 lakh MT during the June quarter.
• VIP Industries: Board approved issue of NCDs worth Rs 50 crore on a private placement basis.
• Punjab and Sind Bank: NPA account worth Rs 32.84 crore of SEW LSY Highways has been declared a fraud and reported to RBI.
• Cera Sanitaryware: To discontinue the business operations of its Dubai arm. Expected date of closure is February 2021. This entity contributed 0.2% to the total turnover of the company.
• Alkem Laboratories: Launches Favipiravir under the brand name ‘Alfluenza.’
• Apollo Tyres: Board approved issue of NCDs worth Rs 1,000 crore. To issue convertible preference shares up to Rs 540 crore to Emerald Sage Investment.
• Adani Gas: CEO Suresh Manglani said during a conference call that the Total-Adani Gas venture will apply for fuel retail licensing in India.
• GOCL Corporation: Board approved seeking shareholder nod for raising of further capital / resources in the form of debt, convertible debt or equity by way of various means such as QIPs, issue of ADRs / GDRs and others up to $150 million.
• South Indian Bank: RBI has given in-principle approval for setting up of a wholly-owned non-financial arm for undertaking activities permitted by RBI.
• Eveready Industries: India Ratings and Research has upgraded the company’s long term credit ratings to ‘IND BB+’ from ‘IND BB’. The outlook has been changed to positive.
• InterGlobe Aviation: To consider raising funds on August 10.
• Xchanging Solutions: To meet on August 13 to consider delisting offer. Company received letter of intention to delist shares on the exchanges by promoter DXC Technologies. Promoters intend to acquire the remaining 25% stake in the company. They currently hold 75% stake. Company had a market capitalization of Rs 605 crore as on August 5, and belongs to the business outsourcing and processing industry.
• Welspun Enterprises: Can provisionally commence operations for four-laning of Chutmalpur-Ganeshpur section in Uttar Pradesh from August 5. The completion cost f this HAM project is over Rs 1,070 crore. The company is now entitled to receive annuity payment from the NHAI every six months, in accordance with provisions of the HAM concession.
• Future Enterprises: CARE Ratings revises the rating of the company's commercial paper to IVR A1+ from IVR A2 / credit watch with negative implications.
• Non-Nifty Earnings Today: Lupin, Pidilite, HPCL, Vodafone Idea, Whirlpool, Adani Enterprises, Adani Power, Blue Star, Can Fin Homes, Dalmia Bharat, Deepak Nitrite, Jamna Auto, JK Tyre, KEI Industries, Indian Hotels.

Earnings Reported After Market Hours

Apollo Tyres Q1FY21

• Revenue down 33.7% to Rs 2,873.4 crore
• Net loss of Rs 134.6 crore from net profit of Rs 141.6 crore
• Ebitda down 50.1% to Rs 237.2 crore
• Ebitda margin at 8.26% from 11%
• All numbers are ahead of consensus estimates
• Numbers are consolidated and compared on a year-on-year basis

DLF Q1FY21

• Revenue down 58.8% to Rs 548.6 crore
• Net loss of Rs 70.7 crore from net profit of Rs 414.7 crore
• Ebitda down 99.3% to Rs 1.7 crore
• Ebitda margin at 0.3% from 18%
• Base quarter had an exceptional gain of Rs 297 crore
• All numbers are consolidated and compared on a year-on-year basis

JK Lakshmi Cement Q1FY21

• Revenue down 20.8% to Rs 825.2 crore
• Net profit up 12.7% to Rs 44.4 crore
• Ebitda down 15.6% to Rs 143.4 crore
• Ebitda margin at 17.4% from 16.3%
• Exceptional loss of Rs 30 crore in the base quarter
• Lower power, fuel and freight costs aid margins
• All numbers are standalone and compared on a year-on-year basis

Inox Leisure Q1FY21

• Revenue down 99.9% to Rs 0.25 crore
• Net loss of Rs 73.6 crore from net profit of Rs 27 crore
• Ebitda down 77.7% to Rs 33.45 crore
• Group has invoked the force majeure clause under various lease agreements for its multiplex premises, contending that rent and CAM charges for the shutdown period on account of Covid-19 are not payable.
• The group has recognised Rs 69.3 crore towards reduction of such rentals and has also not recognised expenses of Rs 20.9 crore towards CAM charges.
• All numbers are consolidated and compared on a year-on-year basis

Hawkins Cooker Q1FY21

• Revenue down 29.1% to Rs 100.8 crore
• Net profit down 52.6% to Rs 6.5 crore
• Ebitda down 54.8% to Rs 10 crore
• Ebitda margin at 9.9% from 15.6%
• All numbers are standalone and compared on a year-on-year basis

Birlasoft Q1FY21

• Revenue in U.S. Dollar terms down 3.4% to $121.2 million
• Revenue up 1% to Rs 914.6 crore
• Net profit down 18.4% to Rs 56.3 crore
• Ebitda down 3.3% to Rs 112.9 crore
• Ebitda margin at 12.3% from 12.9%
• All numbers are consolidated and compared on a quarter-on-quarter basis

Adani Gas Q1FY21

• Revenue down 57.3% to Rs 197.2 crore
• Net profit down 68% to Rs 38.9 crore
• Ebitda down 53.9% to Rs 77.4 crore
• Ebitda margin at 39.2% from 36.3%
• Sales volumes at 64 mmscm from 145 mmscm
• All numbers are consolidated and compared on a quarter-on-quarter basis

Brokerage Radar

Morgan Stanley On Asian Paints

• Initiate Coverage with equalweight rating
• Price target of Rs 1,810
• Near-term slow demand and full valuations keep us equalweight
• Structural beneficiary of the consumption story
• Top class franchise from a long-term perspective
• Near-term challenges do not change our long-term positive outlook
• See limited upside from current levels given near-term demand weakness
• Upside Risks: Faster-than expected demand recovery, lower competitive intensity leads to significant market share gains
• Downside Risks: Market share loss, volume slowdown, sudden rise in input cost inflation

Antique On Cadila Healthcare

• Hold rating maintained
• Price target raised to Rs 375 from Rs 320
• U.S. business looks stable in the near future
• Weaker anti-infective season may prolong the recovery in the domestic business
• There could be a prolonged period of earnings pressure
• Raise FY22 earnings estimates by 7% as we see some cost rationalisation ahead

CLSA On Cadila Healthcare

• Buy rating maintained
• Price target raised to Rs 475 from Rs 440
• Lower opex drives beat in the June quarter
• Improving profitability in its India prescription and consumer businesses to be margin drivers in the near-term
• Novel research, biologics, vaccines and complex generics to drive long-term growth
• Raise FY21-22 net profit estimates by 4%-8% respectively

CLSA On Godrej Properties

• Outperform rating maintained
• Price target raised to Rs 990 from Rs 955
• Strong pre-sales despite the lockdown
• Continue to like the company due to its ability to thrive during the crisis
• Reduce our FY21 earnings estimates due to delay in execution but raise pre-sales estimates
• Industry consolidation will accelerate in 2-3 years and company is well placed to capitalise on the same

UBS On DLF

• Buy rating maintained
• Price target of Rs 195
• Strength continued in office annuity business
• Camellias cancellations have been fully absorbed
• Reduction in overheads by ~30% QoQ was a big positive
• Market implies negligible value to company's development business and its land bank
• Is the top pick within the Indian property space

Jefferies On Godrej Properties

• Buy rating maintained
• Price target of Rs 1,040
• Maintaining sales momentum will need timely pick-up in execution and new launches
• Low gearing to support market share gains
• Balance sheet a key differentiating factor in unorganised sector

Prabhudas Lilladher On Avenue Supermarts

• Upgrade to hold from reduce
• Price target raised to Rs 2,055 from Rs 1,695
• Assume addition of 20/40 stores in FY21/22
• Shift of demand to e-commerce, slow pick-up in apparel are some of the key risks
• Estimate 22% PAT CAGR over FY20-23

Pledged Share Details

• Suzlon Energy: Promoter Tanti Holding created pledge of 49 crore shares on August 4.
• Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 35.6 lakh shares between August 1-3.
• Jamna Auto: Promoter Map Auto created pledge of 2.61 lakh shares between August 3-4.
• Parag Milk Foods: Promoters revoked pledge of 27 lakh shares between July 30 -August 4
• Future Enterprises: Promoter Central Department Stores invoked pledge of 41.3 lakh shares on August 4

(As Reported On August 5)

Bulk Deals

• DCB Bank: Oman Joint Investment Fund acquired 50.7 lakh shares (1.63%) at Rs 81.9 per share and Motilal Oswal AMC sold 50 lakh shares (1.61%) at Rs 81.9 per share.
• NIIT: Massachusetts Institute Of Technology acquired 30 lakh shares (2.12%) at Rs 96.75 per share. Massachusetts Institute of Technology already has 1.87% stake in the company as on June 30. Thus its holdings has increased to 3.99%.
• Max Financial Services: Promoter Max Ventures Investment Holdings sold 61 lakh shares (2.26%) at Rs 535.18 per share.

Who’s Meeting Whom

• Dr Lal PathLabs: To meet AXA Investment Managers U.K. on August 6.
• CG Consumer Electricals: To meet DSP MF, First State Investments and other investors between August 6-13

Trading Tweaks

• AGM Date: CreditAccess Grameen, Whirlpool, Alkyl Amines Chemicals, Delta Corp, Somany Ceramics, Rane Holdings, BASF, Bata, Blue Star, Essel Propack, GM Breweries, Matrimony.com, Tasty Bite Eatables, Torrent Power, Trent, Zensar Tech
• Price Band Revised From 10% To 5%: Accord Synergy
• Price Band Revised From 20% To 10%: Caplin Point Laboratories
• Move Into ASM Framework: Rossel, Chaman Lal Setia Exports
• Move Into Short-Term ASM Framework: SMS Lifesciences, PG Electroplast, The Great Eastern Shipping, Firstsource Solutions, Essel Propack, Jaiprakash Associates
• Move Out Of Short-Term ASM Framework: INEOS Styrolution

Insider Trades

• Apollo Tyres: Promoter Osiatic Consultants and Investments acquired 50.76 lakh shares on August 4.
• Trident: Promoters acquired 49.2 lakh shares on August 4
• Mindtree: Promoters sold 4.5 lakh shares on August 3

(As Reported On August 5)

Money Market Update

• The rupee ended at 74.94 against the U.S. Dollar on Wednesday as compared to Tuesday's close of 75.04.
• The rupee was the fourth worst performing currency in Asia on Tuesday.

F&O Cues

• Nifty August futures closed at 11,132; premium widens to 30 points from 7 points
• Nifty August futures shed 6% and 6.7 lakh shares in Open Interest
• Nifty Bank August futures closed at 21,608; premium widens to 98 points from 61 points
• Nifty Bank August futures shed 8% and 1.15 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.54 from 1.41

Nifty Weekly Expiry: August 6

• Maximum Open Interest on Call side at 11,200 strike (46 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (37 lakh shares)
• Active Options: 10,400 Put (-13.6 lakh shares) and 11,200 Call (+16 lakh shares)

Nifty Monthly Expiry: August 27

• Maximum Open Interest on Call side at 11,500 strike (22.4 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (29.7 lakh shares)