All You Need To Know Going Into Trade On February 11
U.S. stock futures are steady this morning after benchmark indices ended nearly flat overnight. U.S. core consumer prices reported on Wednesday signaled scant inflation.
A gauge of Asian stocks was steady. Benchmark indices in China, Japan and South Korea are shut for trading today. Futures on the Dow Jones are trading lower by 20 points.
The U.S. Dollar held losses, oil prices fell while treasuries will not trade until London open.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.4% 15,072 as of 7:05 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Let’s take a look at the factors that may influence equities in today’s session:
- Despite a muted CPI print in January, investors expect price pressures to intensify in the U.S. going forward as President Joe Biden pushes for stimulus and more vaccinations allow restrictions to be eased.
- Federal Reserve Chair Jerome Powell said that the U.S. job market remains a long way from full recovery calling on both lawmakers and private sector to support workers.
- Yield on the 10-year treasuries fell to 1.12% on Wednesday.
- West Texas Intermediate crude fell 0.6% to $58.36 per barrel.
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Titan Q3FY21 (Consolidated, YoY)
- Revenue up 17% at Rs 7,287 crore Vs Rs 6,202 crore (Bloomberg Estimate: Rs 7,233.9 crore)
- Net profit down 11% at Rs 419 crore Vs Rs 470 crore (Bloomberg Estimate: Rs 535.4 crore)
- Ebitda up 17% at Rs 858 crore Vs Rs 731 crore (Bloomberg Estimate: Rs 787.8 crore)
- Ebitda margin flat at Margins 11.8% (Bloomberg Estimate: 10.9%)
- Jewellery business grew by 16%
- Watches and wearables witnessed a recovery rate of 88% for the quarter
- Eyewear recovery rate was at 93%
Stocks To Watch
- Magma Fincorp: Adar Poonawalla-controlled Rising Sun Holdings has agreed to take over majority shareholding in Magma Fincorp. The transaction will be concluded through a preferential share allotment worth Rs 3,456 crore. The lender would be renamed to Poonawalla Finance. Magma Fincorp proposes to allot 45.8 crore shares to Rising Sun Holdings, and 3.57 crore shares to Sanjay Chamria and Mayank Poddar, the existing promoters. Rinsing Sun Holdings will hold 60% stake in the non-bank lender after the transaction is completed, while the current promoter shareholding will come down to 13.3%. The net worth for the non-bank lender will rise to Rs 6,300 crore.
- Eicher Motors: Royal Enfield CEO Vinod Dasari said that it may have to hike prices again owing to higher commodity costs. Dasari said on the company's analyst call that Royal Enfield has already taken a price hike of 3-5% in the last six months to partially offset the impact of commodity pressure.
- BPCL: Has finalised commercial terms in connection with the purchase of the 88.86 crore shares of Bharat Oman Refineries Limited, constituting 36.62% of the share capital of BORL from OQ S.A.O.C. for a consideration of approximately Rs 2,399.26 crore and is in the process of agreeing to definitive documentation with OQ. Upon completion of the purchase, BPCL will hold 100% of the share capital in BORL.
- Max India: Approves further investment of Rs 168 crore in its direct / step-down Wholly-owned subsidiary companies through acquisition of new equity / preference shares under the rights issue or through Inter-Corporate deposits in one or more tranches to meet their business and funding requirements.
- TCS: Announces further deepening of ties with Amazon Web Service (AWS). Launches AWS Business Unit to help customers accelerate innovation and unlock business value. The new unit will help enterprises leverage AWS to build resilience and enhance customer experience.
- Shriram City Union Finance: Banking and Securities Management Committee to consider the issue and allotment of Redeemable, Secured, NCDs of face value of Rs 10 lakh each for an amount of Rs 30 crore with a greenshoe option of Rs 95 crore, aggregating up to 1,250 SNCDs, amounting to Rs 125 crore in one or more tranches on February 15.
- Aster DM Healthcare: Aster Pharmacies Group and Aster Al Shafar Pharmacies Group - subsidiaries of the company, have consolidated pharmacies in the UAE after securing all regulatory approvals from the authorities. The merger of Al Raffah Medical Centre and Al Raffah Hospital has been carried out to consolidate the operations of the clinics in Oman. This is done as a part of the company's effort to reduce the number of subsidiaries and to consolidate pharmacies operating in the UAE.
- Suprajit Engineering: Approved buyback of 15 lakh shares of Re 1 each for an aggregate amount not exceeding Rs 48 crore. The buyback price of Rs 320 per share is a 31% premium to Wednesday's closing price. The record date for the same is February 22.
- Shree Renuka Sugars: Has approved the capacity expansion for ethanol production from 720 KLPD to 970 KLPD. The addition of the new capacity is supposed to be completed by October 2022. The capex requirement of Rs 204 crore for the same is likely to be done through borrowings. The company sees a huge untapped demand for ethanol for the ethanol blending program of the government, which can benefit the company in the future.
- Himadri Speciality Chemical: Has decided to permanently close the manufacturing unit, taken on lease at Vapi in Gujarat from February 10, 2021. The tenure of the said lease expires on February 26, 2021.
- KRBL: The custody of Joint Managing Director, Anoop Kumar Gupta, who was cooperating with the investigation in the Augusta Westland case has further been extended till February 12, 2021, pursuant to the order of Special Judge, Rouse Avenue Courts. Gupta was earlier sent to the custody of Enforcement Directorate till February 10, 2021.
- InterGlobe Aviation: The SEBI has accepted the company’s application for settlement of the adjudication proceeding initiated against it by the capital markets regulator pursuant to the show cause notice and issued the settlement order. The company has paid Rs 2.10 crore towards settlement of the adjudication proceeding.
- HCL Infosystems: Has approved, subject to shareholder’s approval and statutory authorities, the sale of HCL Infotech, a wholly-owned subsidiary to Novezo Consulting. The transaction is expected to be completed within five months of the date of execution of the share purchase agreement. The consideration to be received from the sale is Rs 147 crore.
- NLC India: Has decided to raise Rs 1,175 crore (with a base issue size of Rs. 250 crore and Green Shoe Option to retain oversubscription upto Rs. 925 crore) through private placement of Unsecured Taxable Bonds (Series of 2021) in the nature of debentures at a coupon of 6.05% per annum.
- Laurus Labs: Has purchased 10,483 equity shares of Rs 10 each from the promoters of Richcore Lifesciences. Further, 7,765 share warrants, which will be convertible into equal number of equity shares within a period of 3 years, have been issued by the Board of Directors of Richcore in its meeting held on February 10. Pursuant to the above changes, the stake of the company in Richcore Lifesciences stands at 74.37% on fully diluted basis.
- AU Small Finance Bank: Has terminated the Corporate Agency Agreement with Acko General Insurance.
- Surya Roshni: CARE Ratings has upgraded the ratings of Short-term Bank Facilities of Rs 1,113.32 crore and Commercial Paper of Rs 200 crore to A1+. Further the rating agency has reaffirmed A+ rating to Long-term Bank Facilities of Rs 1,057.01 crore.
- Nifty Earnings Today: Coal India, ITC, Power Grid
- Non-Nifty Earnings Today: ACC, Allcargo Logistics, Ashok Leyland, Balaji Telefilms, Birla Tyres, Bosch, CAMS, Capacite Infra, CRISIL, Graphite India, Greenply Industries, HUDCO, Indian Hume Pipe, MRF, Natco Pharma, NCC, NHPC, Piramal Enterprises, Petronet LNG, Power Finance Corporation, Presicion Camshaft, Prestige Estates Projects, Repco Home Finance, Spencer Retail, TVS Srichakra, VA Tech Wabag, Waterbase
Earnings Post Market Hours
Indraprastha Gas Q3FY21 (Consolidated, YoY)
- Net sales down 13% at Rs 1,446.1 crore Vs Rs 1,664.2 crore
- Net profit up 28% at Rs 381.8 crore Vs Rs 297.4 crore
- Ebitda up 28% at Rs 500.6 crore Vs Rs 391.8 crore
- Ebitda margin at 31.4% Vs 21.3%
- Overall volumes down 6% at 6.26 mmscmd Vs 6.7 mmscmd
Metropolis Healthcare Q3FY21 (Consolidated, YoY)
- Revenue up 23% at Rs 274.8 crore Vs Rs 222.8 crore
- Net profit up 40% at Rs 58.6 crore Vs Rs 42 crore
- Ebitda up 37% at Rs 86.7 crore Vs Rs 63.5 crore
- Ebitda margin at 31.6% Vs 28.5%
- 61% revenue share of B2C in focus cities
- Strategy to increase B2C contribution in focus cities for both COVID and Non-Covid revenues is on track
- Declared payment of interim dividend of Rs 8 per share
Aurobindo Pharma Q3FY21 (Consolidated, YoY)
- Revenue up 8% at Rs 6,364.9 crore Vs Rs 5,895 crore
- Net profit of Rs 2,946.3 crore Vs Rs 705.3 crore
- Ebitda up 9% at Rs 1,307.7 crore Vs Rs 1,199 crore
- Ebitda margin at 20.6% Vs 20.3%
- Exceptional gain of Rs 2,813.9 crore. This includes a gain of Rs 3,093.4 crore on disposal of business assets of a wholly-owned step-down subsidiary, Natrol in the U.S. It also includes gain of Rs 152.4 crore on account of remeasurement of equity interest in Eugia Pharma - a JV company. It also took impairment charge of Rs 431.9 crore due to the continued impact of Covid-19 in certain markets towards product-related intangibles and goodwill.
Bata India Q3FY21 (Standalone, YoY)
- Revenue down 26% at Rs 614.7 crore Vs Rs 829.6 crore
- Net profit down 78% at Rs 25.8 crore Vs Rs 117.2 crore
- Ebitda down 55% at Rs 117.1 crore Vs Rs 262.5 crore
- Ebitda margin at 19% Vs 31.6%
- Sales through digitally enabled platforms now make up 15% of the total sales, growing by 3 times in the last one year.
IOL Chemicals & Pharma Q3FY21 (Standalone, YoY)
- Revenue flat at Rs 513 crore Vs Rs 511.2 crore
- Net profit up 17% at Rs 114.8 crore Vs Rs 98 crore
- Ebitda flat at Rs 157.3 crore Vs Rs 159.6 crore
- Ebitda margin at 30.7% Vs 31.2%
- Chemicals business revenue up 13% at Rs 219.8 crore Vs Rs 193.9 crore
- Drugs segment revenue down 7% at Rs 303.7 crore Vs Rs 326.5 crore
Ujjivan Financial Services Q3FY21 (Consolidated, YoY)
- NII up 3% at Rs 457.95 crore Vs Rs 445.9 crore
- Net loss of Rs 408.8 crore Vs Net profit of Rs 71.99 crore
UBS On GAIL
- Maintains buy rating
- Price target raised to Rs 175 from Rs 160
- Timely completion of some of the key gas pipelines will boost gas transmission / trading earnings
- Higher brent prices will improve realisations across petchem, LPG and gas trading segments
- Petchem earnings also seeing traction from higher plant utilisation and domestic demand/supply balance
- Raise FY22-25 earnings estimates by 13-20%
- Factoring in future expansion, higher capex, volume growth and stable margins
Macquarie On Eicher Motors
- Downgrade to underperform from neutral
- Price target raised to Rs 2,400 from Rs 2,100
- Downgrade on weaker volume growth, margin underperformance and weaker CV cycle
- Royal Enfield consistently underperforming peers on both volume growth and margins since FY18
- The stock still trades at a significant premium to two-wheeler OEM peers which is unjustified
- Raise EPS forecast by 8-13% over FY21-23E to reflect better VECV performance
CLSA On Titan
- Maintains sell rating
- Price target of Rs 1,370
- Q3 results were better than expectations
- Positively surprised with marginal delivery across segments
- Raise FY21 earnings estimates by 36% on Q3 recovery and better near-term prospects
- Expensive valuations keep us on the edge
- Sustaining margin expansion key to valuations
Pledge Share Details
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 1.07 crore shares between February 8-9.
- Adani Ports & SEZ: Promoters Gautam Adani and Rajesh Adani revoked pledge of 56.25 lakh shares on February 9.
- Adani Transmission: Promoters Gautam Adani, Rajesh Adani and Adani Tradeline LLP revoked pledge of 1.46 crore share between February 8-9.
- JSW Energy: Promoters JSW Investments and Indusglobe Multiventures created a pledge of 1.42 crore shares between February 5-8.
As Reported On February 10.
- Apollo Tricoat Tubes: Promoter Saket Agarwal sold 1.60 lakh shares (0.53%) at Rs 880 per share.
- Indiabulls Housing Finance: Graviton Research Capital LLP bought 24.46 lakh shares (0.53%) at Rs 223.96 per share and sold 21.42 lakh shares (0.46%) at Rs 223.26 per share. Pole-Ads Advertising bought 27.74 lakh shares (0.60%) at Rs 222.66 per share and sold 25.91 lakh shares (0.56%) at Rs 222.46 per share.
Who’s Meeting Whom
- INOX Leisure: To meet Premji Invest on February 12.
- eClerx Services: To meet HDFC Asset Management Company on February 11.
- UTI AMC: To meet Pari Washington Co. Advisors on February 16.
- KCP: Promoter VL Indira Dutt acquired 1 lakh shares on February 9.
- Aarti Industries: Promoter Jaya Chandrakant Gogri sold 40,000 shares on February 9.
As Reported On February 10.
- Ex-Date Interim Dividend: PNB Gilts, BLS International Services, Alkem Laboratories, Equitas Holdings, HIL, Gillette India, PI Industries, NTPC, Apcotex Industries, Carborundum Universal, Dhampur Sugar Mills, Bajaj Consumer Care, Balrampur Chini Mills, Control Print, IIFL Wealth Management, Indo Amines, Modison Metals, NTPC, PI Industries
- Record Date Interim Dividend: Coromandel International, Subex, Manappuram Finance, K.P.R. Mill, Transport Corporation of India, Procter & Gamble Hygiene and Health Care
- Move Into Short-term ASM Framework: Neuland Laboratories, TeamLease Services
- Move Into ASM Framework: Share India Securities, HIL
Money Market Update
- The currency ended at 72.83 against the U.S. Dollar as compared to Tuesday's close of 72.89.
- Nifty February futures ended at 15,161; premium of 56 points
- Nifty February futures shed 1% and 1.1 lakh shares in Open Interest
- Nifty Bank February futures ended at 36,004; premium of 220 points
- Nifty Bank February futures shed 4% and 63,825 shares in Open Interest
- Nifty Put-Call Ratio at 1.5
- Enters F&O Ban: SAIL
- Stocks In F&O Ban: BHEL, SAIL, Sun TV