All You Need To Know Going Into Trade On February 12

Stock markets across Asia are little changed this morning as most peers are shut on account of the Lunar New Year Holiday.

Benchmark indices in Japan ticked higher while those in Australia declined. Futures on the Dow Jones are flat - just the way the index ended overnight. The S&P 500 eked out gains to end at an all-time high.

Treasuries held overnight losses, the U.S. Dollar was steady while oil prices fell post the International Energy Agency's bleaker outlook for global demand.

West Texas Intermediate crude fell 0.6% to $57.9 per barrel. The IEA said that the global oil market remains fragile as the pandemic continues to limit travel and economic activity.

Elsewhere, Bitcoin too hit a new high, now trading past the $48,000 mark after Mastercard and BNY Mellon Corp. made it easier for customers to use cryptocurrencies.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 15,185 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.

Nifty Earnings

ITC Q3FY21

• Revenue up 5% at Rs 12,580.4 crore Vs Rs 12,013 crore (Bloomberg Estimate: Rs 11,935.7 crore)
• Net profit down 12% at Rs 3,662.8 crore Vs Rs 4,141.9 crore (Bloomberg Estimate: Rs 3,613.5 crore)
• Ebitda down 7% at Rs 4,281.3 crore Vs Rs 4,612.7 crore (Bloomberg Estimate: Rs 4,356.7 crore)
• Margins at 34% Vs 38.4% (Bloomberg Estimate: 30.3%)
• Has declared interim dividend of Rs 5 per share

Power Grid Corporation Q3FY21 (Standalone, YoY)

• Revenue up 8% at Rs 9,676.5 crore Vs Rs 8,992 crore (Bloomberg Estimate: Rs 9,419 crore)
• Net profit up 24% at Rs 3,323.8 crore Vs Rs 2,673.5 crore (Bloomberg Estimate: Rs 2,930.9 crore)
• Ebitda up 7% at Rs 8,460.4 crore Vs Rs 7,876.2 crore (Bloomberg Estimate: Rs 8,317.1 crore)
• Ebitda margin at 87.4% Vs 87.6%
• Higher other income contributes to net profit
• Other income up 26% at Rs 634.8 crore Vs Rs 504.9 crore

Stocks To Watch

• TCS: Has strengthened its partnership with Snowflake, with the launch of a curated version of its TCS DAEzMo™ suite of solutions that enables businesses to accelerate their data landscape modernisation and migration to Snowflake’s data cloud.
• Vedanta: Has approved issue of upto 5,000 secured NCDs of face value Rs 10 lakh each aggregating up to Rs 500 crore on a private placement basis.
• RITES: Has in consortium, emerged as L-1 bidder for a General Consultancy work of Rs 61 crore from Haryana Rail Infrastructure Development Corporation for their Haryana Orbital Rail Corridor.
• Fineotex Chemical: Maharashtra's Food & Drugs Administration department has granted approval to the company's plant. The license has been granted for production of disinfectant/antimicrobial hygiene and cleaning products for the HPC division to be launched by the company.
• APL Apollo Tubes: CRISIL Ratings has revised the rating on the long-term bank facilities of the company to AA/Stable from AA-/Stable and reaffirmed A1+ rating to short-term bank facilities.
• The Karur Vysya Bank: India Ratings & Research has affirmed the credit rating of Basel-III Tier-II Bonds as A+/Stable.
• Dishman Carbogen Amcis: A joint inspection was carried out during the quarter ending March 2020 by Swissmedic and EDQM, post which certain audit observations were issued for the company's Bavla site. The implementation of the corrective action plan submitted to the EDQM is underway.
• Nifty Earnings Today: Grasim
• Non-Nifty Earnings Today: Advanced Enzymes, Apollo Hospitals, Bharat Forge, Chemcon Specialty Chemicals, Cochin Shipyard, Delta Corp, Embassy Office Parks REIT, Finolex Cables, Forbes & Company, Force Motors, GIC Housing Finance, Glenmark, GMR Infra, Hindustan Aeronautics, Indiabulls Housing Finance, Inox Wind, ITI, Mazagon Dock Shipbuilders, MIDHANI, MOIL, Motherson Sumi, NALCO, Info Edge (India), Phoenix Mills, Siemens, Sobha, Voltas, Zuari Agro
  

Earnings Post Market Hours

ACC Q4CY20 (Consolidated, YoY)

• Revenue up 2% at Rs 4,144.7 crore Vs Rs 4,060.3 crore
• Net profit up 73% at Rs 472.4 crore Vs Rs 273.3 crore
• Ebitda up 6% at Rs 571.8 crore Vs Rs 541 crore
• Ebitda Margins at 13.8% Vs 13.3%
• Has recommended payment of a dividend of Rs 14 per share

Ashok Leyland Q3FY21 (Standalone, YoY)

• Revenue up 20% at Rs 4,813.5 crore Vs Rs 4,015.6 crore
• Net loss of Rs 19.4 crore Vs net profit of Rs 27.7 crore
• Ebitda up 13% at Rs 253.7 crore Vs Rs 225.2 crore
• Ebitda margin at 5.3% Vs 5.6%
• Exceptional loss of Rs 46 crore during the quarter

Petronet LNG Q3FY21 (Consolidated, YoY)

• Revenue down 18% at Rs 7,328.2 crore Vs Rs 8,910.2 crore
• Net profit up 30% at Rs 882 crore Vs Rs 679.2 crore
• Ebitda up 21% at Rs 1,335 crore Vs Rs 1,107 crore
• Ebitda Margins at 18.2% Vs 12.4%
• Higher other income contributes to net profit
• Other income up 32% to Rs 111.06 crore from Rs 84.16 crore

Brokerage Radar

Morgan Stanley On Mindspace Business Parks REIT

• Maintains equalweight rating
• Price target of Rs 333
• Occupancy likely to drop further before improving
• Strong sponsorship, campus-style grade-A office assets and strong balance sheet
• Near-term weak leasing environment and potential interest rate up-cycle keep us equalweight

Investec On Eicher Motors

• Maintains sell rating
• Price target raised to Rs 2,070 from Rs 1,410
• Despite price hikes of 2-3%, the company has not managed to fully pass on commodity cost pressure which can weigh on margins
• Continues to trade at a premium valuation to peers even though the gap between Royal Enfield's growth, margin and RoEs is narrowing
• Rising competition, slowdown in growth rate can drive valuation de-rating

Emkay On ITC

• Maintains buy rating
• Price target raised to Rs 265 from Rs 250
• Expect full recovery in Cigarette business by Q4
• FMCG comparable growth at 11%; performance of other divisions mixed
• Keep estimates unchanged but further recovery in cigarettes / other divisions can lead to an upgrade in FY22/23 forecasts
• Increased aggression on innovations and cost efficiencies are encouraging
• Valuations provide attractive upsides

Motilal Oswal On Whirlpool of India

• Initiate coverage with buy rating
• Price target of Rs 3,020
• Pure play in the underpenetrated white goods space
• High RoE/RoIC despite investing in capex, employee expansion, ad spends makes it an attractive long-term investment
• Expect revenue/Ebitda/PAT growth of 21%/35%/42% over FY21-23E
• Valuations are cheaper than peers like Blue Star, Voltas and other electricals
• Deserves to command a premium as its portfolio provides the best revenue growth potential

Pledge Share Details

• JSW Steel: Promoters Sahyog Holdings, Vividh Finvest and Siddeshwari Tradex created a pledge of 6.37 crore shares between February 5-10.
• Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 17.18 lakh shares on February 10.
• Aurobindo Pharma: Promoter RPR Sons Advisors created a pledge of 23 lakh shares on February 9.
• Crompton Greaves Consumer Electricals: Promoter Amalfiaco created a pledge of 1.20 crore shares on February 9.
• Future Retail: Promoter Future Corporate Resources invoked pledge of 69.30 lakh shares on February 9.

As Reported On February 11.

Who’s Meeting Whom

• Dixon Technologies (India): To meet EFG Asset Management (HK) and Taiyo Pacific on February 17 and Fidelity International on February 18.
• KEC International: To meet Edelweiss Securities on February 12.

Insider Trades

• Adani Green Energy: Promoter Harmonia Trade and Investment acquired 45 lakh shares between February 9-10.
• The Ramco Cements: Promoter Sri Vishnu Shankar Mill sold 1.54 lakh shares on February 10.
• Aarti Industries: Promoter Jaya Chandrakant Gogri sold 10,000 shares on February 10.
• APL Apollo Tubes: Promoter Veera Gupta sold 15,000 shares on February 5.
• Vardhman Special Steels: Promoter Sachit Jain acquired 10,000 shares between February 9-10.

As Reported On February 11.

Trading Tweaks

• Price Band Revised From 10% To 5%: Affle (India), Magma Fincorp
• Ex-Date Stock Split: Bannari Amman Spinning Mills
• Ex-Date Interim Dividend: Alkyl Amines Chemicals, Cantabil Retail India, Saurashtra Cement.
• Record Date Interim Dividend: Balrampur Chini Mills, Dhampur Sugar Mills, Carborundum Universal, Apcotex Industries, NTPC, PI Industries, Gillette India, HIL, BLS International Services, Control Print, Iifl Wealth Management, PNB Gilts, HIL.
• Move Into Short-term ASM Framework: Magma Fincorp, Graphite India, Savita Oil Technologies
• Move Out Of Short-term ASM Framework: MPS

Money Market Update

• The rupee ended little changed at 72.85 against the U.S. Dollar as compared to Wednesday's close of 72.83.

F&O Cues

• Nifty February futures ended at 15,195; premium of 22 points
• Nifty February futures add 1.2% and 1,745 shares in Open Interest
• Nifty Bank February futures ended at 35,854; premium of 102 points
• Nifty Bank February futures add 4.3% and 2,621 shares in Open Interest
• Nifty Put-Call Ratio at 1.48
• Out of F&O Ban: Sun TV
• Stocks In F&O Ban: BHEL, SAIL