All You Need To Know Going Into Trade On August 7

Stocks To Watch

• Lupin: Signs an exclusive distribution pact with Fordoz Pharma for exclusive rights to market and distribute two complex injectable assets. The assets - in the oncology and anti-infective therapeutic areas are in advanced stages of development in the U.S. and its territories.
• Jubilant FoodWorks: Announces foray into the FMCG space with a range of ready-to-cook sauces, gravies and pastes. The company has launched eight products across Indian & Chinese cuisines and will be initially available for consumers across e-commerce platforms. It plans to expand the product availability by adding more e-commerce platforms as well as retailing through supermarkets and hypermarkets going ahead.
• Welspun Corp: Board approves the listing of Welspun Middle East Pipes on the local exchanges of Saudi Arabia. The process of listing will involve divestment of a maximum 15% stake of WMEPL held by Welspun Corp through its overseas subsidiary. The total consideration will be $30 million along with proportionate shares to be divested by local partners. Post the proposed listing, the company's share in WEMPL will fall below 35% from the existing 50%.
• Wipro: Collaborates with Intel to enable Wipro’s digital workspace solution with the Intel platform. This joint collaboration will help customers drive business continuity by enabling remote I.T. support and solutions.
• NIIT: SBI Mutual Fund decreased stake to 3.81% from 5.94% in the company on August 5.
• Shriram Transport Finance: Board approved allotment of 2.62 crore shares at an issue price of Rs 570 per share, which is at a discount of 14% to Thursday’s closing.
• Deepak Nitrite: Arm Deepak Phenolics is expanding its capacity of production of lsopropyl Alcohol at its Dahej unit from 30,000 to to 60,000 tons per annum. Investment cost will be Rs 50 crore and the new capacity is expected to be commissioned in the first quarter of FY22.
• PNB Housing Finance: Appoints Hardayal Prasad as MD and CEO till August 2023. Prasad was earlier MD & CEO of SBI Cards and Payments Services.
• Minda Industries: Board to meet on August 11 to discuss details about the rights issue. The board had approved raising Rs 250 crore by way of rights issue on June 20.
• MCX: Clarified that it has not entered into any discussion with 63 Moons Technologies for development of any direct market access system.
• Prince Pipes and Fittings: Has entered into a technical collaboration with Tooling Holland BV, a global player in the international plastic injection moulding industry based in The Netherlands.
• Alembic Pharma: Board closed the QIP issue at a price of Rs 932 per share, which was at a discount of 4.97% to the floor price and discount of 14% to the closing price on Thursday.
• Nifty Earnings Today: Cipla, Mahindra & Mahindra
• Non-Nifty Earnings Today: Abbott India, Amara Raja Batteries, Amber Enterprises, Balrampur Chini, Bata, BEML, CONCOR, Emami, ENIL, MGL, REC, Shipping Corporation, Siemens, Sobha, Ramco Cements

Earnings Reported After Market Hours

HPCL Q1FY21

• Revenue down 43% to Rs 37,720.8 crore
• Net profit of Rs 2,813.8 crore from Rs 26.8 crore
• Ebitda gain of Rs 4,354.2 crore from Ebitda loss of Rs 706.7 crore
• GRM at $0.04 per barrel from negative GRM of $1.22 per barrel
• Inventory gains aid profit despite weak GRMs
• Better marketing margins partly make up for lower volumes
• Forex gains aid higher other income, contributing to profit
• Exceptional loss of Rs 1,000 crore and tax reversal of RS 2,578 crore in the base quarter
• All numbers are standalone and compared on a quarter-on-quarter basis

Vodafone Idea Q1FY21

• Revenue down 9.3% to Rs 10,659.3 crore
• Net loss widens to Rs 25,640 crore from Rs 11,643.5 crore
• Ebitda down 6.4% to Rs 4,098.4 crore
• Ebitda margin at 38.4% from 37.3%
• ARPU at Rs 114 from Rs 121
• Exceptional loss of Rs 19,923.2 crore due to additional charges made on AGR dues
• Company in a statement said that networth has turned negative
• All numbers are consolidated and compared on a quarter-on-quarter basis

Lupin Q1FY21

• Revenue down 9% to Rs 3,527.9 crore
• Net profit down 52% to Rs 181 crore
• Ebitda down 34.6% to Rs 488.1 crore
• Ebitda margin at 13.8% from 19.2%
• All numbers are consolidated and compared on a year-on-year basis

Novartis Q1FY21

• Revenue down 15.4% to Rs 92.5 crore
• Net profit up 5.5 times to Rs 4.4 crore
• Ebitda gain of Rs 4.3 crore from Ebitda loss of Rs 5.2 crore
• All numbers are standalone and compared on a year-on-year basis

Adani Enterprises Q1FY21

• Revenue down 50.1% to Rs 5,265.2 crore
• Net profit down 95% to Rs 29.8 crore
• Ebitda down 88% to Rs 102.9 crore
• Ebitda margin at 1.9% from 8%
• All numbers are consolidated and compared on a year-on-year basis

Indian Hotels Q1FY21

• Revenue down 86% to Rs 144 crore
• Net loss of Rs 313 crore from net profit of Rs 4.98 crore
• Ebitda loss of Rs 266 crore from Ebitda gain of Rs 173 crore
• Exceptional gain of Rs 86 crore on account of gains from acquiring a controlling stake in JV IHMS Hotels
• All numbers are consolidated and compared on a year-on-year basis

Sumitomo Chemicals Q1FY21

• Revenue up 4% to Rs 648 crore
• Net profit up 49% to Rs 79 crore
• Ebitda up 40% to Rs 119 crore
• Ebitda margin at 18% from 14%
• All numbers are consolidated and compared on a year-on-year basis

Deepak Nitrite Q1FY21

• Revenue down 35.8% to Rs 674.5 crore
• Net profit down 24.8% to Rs 99 crore
• Ebitda down 28.5% to Rs 181.6 crore
• Ebitda margin at 26.9% from 24.2%
• All numbers are consolidated and compared on a year-on-year basis

Pidilite Industries Q1FY21

• Revenue down 56.5% to Rs 877.8 crore
• Net profit down 91% to Rs 26.8 crore
• Ebitda down 85% to Rs 66.4 crore
• Ebitda margin at 7.5% from 22%
• All numbers are consolidated and compared on a year-on-year basis

KEI Industries Q1FY21

• Revenue down 31.1% to Rs 745.3 crore
• Net profit down 21% to Rs 36.2 crore
• Ebitda down 36.6% to Rs 72.3 crore
• Ebitda margin at 9.7% from 10.6%
• All numbers are standalone and compared on a year-on-year basis

Gujarat State Petronet Q1FY21

• Revenue down 22% to Rs 464.3 crore
• Net profit down 11.6% to Rs 199.4 crore
• Ebitda down 2.7% to Rs 346.2 crore
• Ebitda margin at 74.6% from 59.8%
• Transmission volumes at 33.25 mmscmd from 36.8 mmscmd
• Lower gas transmission expenses aid margins
• All numbers are standalone and compared on a year-on-year basis

JK Tyre Q1FY21

• Revenue down 56.1% to Rs 1,130.8 crore
• Net loss of Rs 198.9 crore from net profit of Rs 16.9 crore
• Ebitda loss of Rs 3.7 crore from Ebitda gain of Rs 239.6 crore
• All numbers are consolidated and compared on a year-on-year basis

Dalmia Bharat Q1FY21

• Revenue down 22.2% to Rs 1,974 crore
• Net profit up 29.3% to Rs 190 crore
• Ebitda down 5.4% to Rs 625 crore
• Ebitda margin at 31.7% from 26.1%
• All numbers are consolidated and compared on a year-on-year basis

Lemon Tree Hotels Q1FY21

• Revenue down 71.1% to Rs 40.7 crore
• Net loss widens to Rs 41.8 crore from Rs 1.7 crore
• Ebitda down 90% to Rs 4.4 crore
• Ebitda margin at 10.8% from 31.7%
• All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

CLSA On Vodafone Idea

• Underperform rating maintained
• Price target cut to Rs 8.4 from Rs 9.2
• Voice traffic declined but data traffic growth encouraging
• Cut FY21-22CL estimates by 1-5%
• Factor in additional cost savings of Rs 4,000 crore
• See potential upside to ARPU but AGR burden is enormous

HSBC On PI Industries

• Buy rating maintained
• Price target raised to Rs 2,200 from Rs 1,800
• Cost savings lead to margin improvement in Q1
• Set for expansion with the fund raising now complete
• Expect growth in domestic and export markets to continue
• Growth momentum may continue driven by market share gains and a strong product pipeline
• Initiatives in pharma and fine chemicals may multiply the target market by 7-8 times
• Normal monsoon augurs well for domestic portfolio
• Raise FY21-FY23E EPS estimates by 4%/9% respectively

Antique On Bayer Cropsciences

• Buy rating maintained
• Price target raised to Rs 6,810 from Rs 6,120
• Merger with Monsanto India to reap benefits and be positive in the long-term
• Raise FY21/FY22 EPS estimates by 7%/11% to factor in buoyant growth momentum
• Remain positive on business model, comprehensive distribution network, innovative product pipeline and post-merger synergies

UBS On BHEL

• Sell rating maintained
• Price target cut to Rs 17 from Rs 19
• Hopes of a recovery in FY21 appear far-fetched
• Order inflows unlikely to pick-up in FY21
• Delays in finalising orders are only adding to execution woes
• Diversification efforts unlikely to support revenue growth in the near-term
• Cut execution forecasts for FY21/FY22, leading to a 24% cut in revenue estimates
• Revised earnings estimates for FY21-22 are 24-25% lower
• Risks to estimates are skewed to the downside
• See few signs of upside surprises

Citi On Hindustan Petroleum

• Buy rating maintained
• Price target of Rs 295
• Marketing performance was well ahead of expectations
• Continue to remain positive on OMCs
• Stocks have corrected recently after extension of timeline for BPCL's divestment
• Underlying fundamentals improving as evident from Q1 performance
• Worst of the earnings are likely behind us
• HPCL, BPCL are preferred OMC picks

HSBC On Castrol

• Buy rating maintained
• Price target cut to Rs 145 from Rs 180
• Volumes have nearly halved due to the lockdown
• Discounts, forex impact hit margins
• Outlook improving as lockdowns ease
• Strategic alliance with RIL-BP a medium-term positive
• Valuations are attractive

Pledged Share Details

• Uflex: Promoter Anshika Consultants released pledge of 2.6 lakh shares on August 5
• JSW Steel: Promoters revoked pledge of 1.5 crore shares between July 31 - August 4
• Emami: Promoters revoked pledge of 1.6 crore shares from July 31 - August 4
• Jindal Steel & Power: Promoter Danta Enterprises revoked pledge of 5 lakh shares on July 31
• Future Consumer: Promoter Future Capital Investment invoked pledge of 45.65 lakh shares on August 4

(As Reported On August 6)

Bulk Deals

• Yes Bank: Adani Electricity Mumbai sold 15 crore shares (1.2%) at Rs 13.45 per share
• Aarti Surfactants: Abu Dhabi Investment Authority sold 39,537 shares at Rs 270.5 per share

Trading Tweaks

• AGM Date: IDBI Bank, Somany Ceramics, Delta Corp, Alembic, Sobha, Orient Electric, Novartis, Mahindra & Mahindra, KEC International, Jyothy Labs, Deepak Nitrite, ICICI Pru Life, Cosmo Films, Central Bank of India, Bayer Cropscience, Bata, Amara Raja Batteries, Alembic
• Fund Raising: Renuka Sugar, CG Power and Industrial Solutions, REC, Info Edge
• Price Band Revised From 10% To 20%: Aavas Financiers, Arvind, Asian Granito, Astron Paper & Board Mill, Atul Auto, Balaji Telefilms, Bharat Dynamics, Birla Corporation, Aditya Birla Money, Chalet Hotels, Dhanlaxmi Bank, Avenue Supermarts, Fineotex Chemical, Eros International Media, General Insurance Corporation, Himatsingka Seide, IIFL Finance, IOL Chemicals and Pharmaceuticals, IRB Infrastructure Developers, Jubilant Industries, ITI, Mahindra Logistics, Manali Petrochemicals, NACL Industries, Orient Cement, Panacea Biotec, Panama Petrochem, Parag Milk Foods, Prism Johnson, Shalimar Paints, Sanghi Industries, Shoppers Stop, SpiceJet, Suven Pharmaceuticals, Tata Steel Long Products, TCPL Packaging, TRF, Trident, TV18 Broadcast, Zee Learn.
• Price Band Revised From 10% To 5%: Godawari Power And Ispat, Neogen Chemicals
• Price Band Revised From 5% To 10%: Adani Green Energy, Adani Transmission, Affle (India), Aries Agro, Dish TV India, Entertainment Network (India) , Federal-Mogul Goetze , Globus Spirits, Graphite India, GVK Power & Infrastructure, Heritage Foods, Indiabulls Real Estate, IDBI Bank, IFB Agro Industries, Indian Overseas Bank, ITDC, Kakatiya Cement Sugar & Industries, Lakshmi Vilas Bank, Lemon Tree Hotels, Magma Fincorp, Mahindra CIE Automotive, MT Educare, Munjal Showa, Punjab & Sind Bank, Quess Corp, Religare Enterprises, Reliance Power, Satin Creditcare Network, Suven Life Sciences, Tube Investments of India, Titagarh Wagons, V2 Retail.
• Price Band Revised From 5% To 20%: Anant Raj, AU Small Finance Bank ,Credit Access Grameen, Delta Corp, Eveready Industries, Gujarat Fluorochemicals , Future Retail , GTPL Hathway, Hindustan Oil Exploration, HFCL, IG Petrochemicals, KPIT Technologies, Nath Bio-Genes, PNB Housing Finance, Prince Pipes And Fittings, Sadbhav Infrastructure Project, Sharda Cropchem , South Indian Bank, Spandana Sphoorty Financial, Surya Roshni, Sterling And Wilson Solar, Take Solutions, Thirumalai Chemicals, Varroc Engineering, VA Tech Wabag.
• Move Into ASM Framework: Camlin Fine Sciences, Intense Technologies
• Move Into Short-Term ASM Framework: Vaibhav Global, Pricol

Insider Trades

• JSW Steel: Promoter JTPM Metal Traders acquired 28.5 lakh shares between August 3-4
• Trident: Promoter Trident Capital acquired 7 lakh shares on August 5
• Birlasoft: Promoter National Engineering acquired 27 lakh shares on August 4
• Dr. Lal Pathlabs: Promoter Dr. Vandana Lal sold 1.76 lakh shares between August 4-6

(As Reported On August 6)

Money Market Update

• The currency ended little changed at 74.93 against the U.S. Dollar as compared to Wednesday's close of 74.94.
• The rupee ended as the third best performing currency in Asia on Thursday.

F&O Cues

• Nifty August futures closed at 11,212; premium of 12 points from 30 points
• Nifty August futures add 2.5% and 2.5 lakh shares in Open Interest
• Nifty Bank August futures closed at 21,670; premium of 27 points from 98 points
• Nifty Bank August futures add 0.4% and 4.5 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.58 from 1.54
• Enters F&O Ban: Canara Bank

Nifty Weekly Expiry: August 13

• Maximum Open Interest on Call side at 11,200 strike (11.2 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (15.6 lakh shares)
• Active Options: 11,200 Put (8.2 lakh shares) and 11,600 Call (6.2 lakh shares)

Nifty Monthly Expiry: August 27

• Maximum Open Interest on Call side at 11,500 strike (21 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (30.6 lakh shares)