All You Need To Know Going Into Trade On February 15

Nifty Earnings

ONGC Q3FY21 (Standalone, QoQ)

• Revenue up 0.6% at Rs 17,023.8 crore Vs Rs 16,917.1 crore (Bloomberg Estimate: Rs 16,958.9 crore)
• Net profit down 52.1% at Rs 1,378.2 crore Vs Rs 2,877.8 crore (Bloomberg Estimate Rs 2291.6 crore)
• Ebitda down 6.9% at Rs 6,507.6 crore Vs Rs 6,989.4 crore (Bloomberg Estimate Rs 7,671 crore)
• Ebitda margin at 38.2% Vs 41.3% (Bloomberg Estimate 45.2%)
• Realisations down 24.6% to $43.91/bbl Vs $58.24/bbl (YoY)

Stocks To Watch

• Tata Motors: Has appointed Marc Llistosella as Chief Executive Officer and Managing Director of the company effective July 1, 2021.
• Godrej Industries: The Board of Directors has granted approval for engaging in financial services business. To pursue the opportunity in housing finance business, the Board has approved the proposal of acquiring shares of Godrej Housing Finance -- which recently obtained a license to operate as a Housing Finance Company from Anamudi. Further the company will pursue non-retail lending opportunities through another subsidiary i.e., Ensemble Holdings and Finance, a non-banking finance company. Accordingly, the Board has approved acquiring 95% stake in GHFL through a subsidiary of the company, i.e., Pyxis, Further, Pyxis will also acquire shares of EHFL. The Board of Directors have also approved increase in borrowing powers of the company from Rs 2,000 crore to Rs 4,500 crore.
• PNC Infratech: PNC Gomti Highways, a wholly-owned subsidiary of the company, has received communication from National Highways Authority of India confirming the achievement of Financial Closure for a highway project in Uttar Pradesh. The bid project cost is Rs 1,530 crore and the construction period is 730 days.
• Havells India: Is planning to set-up a new facility to manufacture washing machines in Ghiloth in Rajasthan with an estimated investment of Rs 65 crore and an annual capacity of 3 lakh units. Further the company is also planning to set-up a new facility to manufacture air conditioners at Sri City in Andhra Pradesh with an estimated investment of Rs 250 crore and an annual capacity of 5.6 lakh units. The new capacity is proposed to be added within the next 12-18 months and will be funded through internal accruals and term loans.
• ONGC: Board approves formation of a new wholly-owned subsidiary to focus on the Gas & LNG business value chain. It has also approved acquisition of 5% stake in Indian Gas Exchange as a strategic investment.
• Amara Raja Batteries: To set up 50 MW solar power plant in Chittoor District of Andhra Pradesh for a total outlay of Rs 220 crore. This will further reduce the cost of power and simultaneously bring down the company's carbon footprint. To also set up a greenfield lead recycling unit with a capacity of 1 lakh tonnes. The total capital outlay for the project is expected to be Rs 280 crore to be spent over the next 18 months.
• Sterling & Wilson Solar: Signs order worth $127.5 million (Rs 930 crore) in the Kom Ombo region of Egypt. Order received from Saudi Arabia's leading renewable energy company and is scheduled to be commissioned by the first quarter of 2022.
• Finolex Cables: Has approved launch of Conduit Pipe and Accessories for construction Industry. These products will be manufactured at the company's newly set up plant at its Goa facility.
• Info Edge (India): Has entered into an agreement through its wholly-owned subsidiary, to invest about Rs 9 crore, in 4B Networks. The company will acquire 1,747 Compulsorily Convertible Preference Shares of 4B Networks. The aggregate shareholding of the company, post this investment, in the said entity would be 12.3% on a fully converted & diluted basis.
• Varroc Engineering: Executed a sale deed on February 11, 2021, effecting the sale of the company’s land & building admeasuring 28,327 square meters situated in Pune, for a consideration of Rs 36 crore.
• NHPC: Has raised Rs 1,500 crore through private placement of secured non-convertible 6.86% NHPC AC Series Bonds.
• Jindal Poly Films: Has appointed Vinod Kumar Gupta as Chief Executive Officer of the company.
• Power Grid Corporation of India: Has approved acquisition of 74% shareholding of the JV Partner i.e. Jaiprakash Power Ventures in Jaypee POWERGRID (a Joint Venture Company of Power Grid and Jaiprakash Power Ventures).
• Kalpataru Power: Board withdraws proposal for capital expenditure for construction of the company's corporate office.
• CDSL: Becomes first depository to open 3 crore plus active demat accounts.
• Magma Fincorp: To hold Extraordinary General Meeting on March 9 to consider preferential allotment of equity shares of the company.
• Ruchira Paper: Board approves preferential issue of 28.8 lakh warrants, convertible into equivalent number of equity shares of Rs 10 each to the promoter and promoter group. The conversion can be exercised at any time within a period of 18 months from the date of allotment.
• Bata India: Rajeev Gopalakrishnan re-appointed as the company's managing director up to September 30, 2021.

Earnings Post Market Hours

Vodafone Idea Q3FY21 (Consolidated, YoY)

• Revenue up 1% at Rs 10,894.1 crore Vs Rs 10,786.1 crore
• Net loss narrows to Rs 4,532.1 crore Vs Rs 7,218.5 crore
• Ebitda up 4% at Rs 4,304.2 crore Vs Rs 4,147.3 crore
• Ebitda margin at 39.5% Vs 38.5%
• Average Revenue per User (ARPU) at Rs 121 Vs Rs 119

Deepak Nitrite Q3FY21 (Consolidated, YoY)

• Revenue up 10% at Rs 1,234.7 crore Vs Rs 1,119.9 crore
• Net profit up 38% at Rs 216.6 crore Vs Rs 156.7 crore
• Ebitda up 30% at Rs 335 crore Vs Rs 258.3 crore
• Ebitda margin at 27.1% Vs 23.1%
• Basic Chemicals revenue down 22% at Rs 196.2 crore Vs Rs 252.6 crore
• Film and Specialty Chemicals revenue up 22% at Rs 210.9 crore Vs Rs 173.2 crore
• Phenolics revenue up 40% at Rs 747 crore Vs Rs 535 crore

Amara Raja Batteries Q3FY21 (Consolidated, YoY)

• Revenue up 12% at Rs 1,960.4 crore Vs Rs 1,747.5 crore
• Net profit up 18% at Rs 193.7 crore Vs Rs 164.1 crore
• Ebitda up 8% at Rs 306.9 crore Vs Rs 283.6 crore
• Ebitda margin at 15.7% Vs 16.2%
• Declares interim dividend of Rs 5 per share
• Revenue growth aided by consistent growth in OEM and aftermarket segment
• Robust growth in the export segment

Sunteck Realty Q3FY21 (Consolidated, YoY)

• Revenue up 20% at Rs 204.8 crore Vs Rs 171.1 crore
• Net profit down 15% at Rs 22.1 crore Vs Rs 26.1 crore
• Ebitda down 8% at Rs 45 crore Vs Rs 48.8 crore
• Ebitda margin at 22% Vs 28.5%
• Pre-sales up 75% QoQ to Rs 349 crore
• Collections up 79% QoQ to Rs 252 crore
• Strong operating cash flow aids debt reduction

Phoenix Mills Q3FY21 (Consolidated, YoY)

• Revenue down 34% at Rs 337.8 crore Vs Rs 511.8 crore
• Net profit down 29% at Rs 65.4 crore Vs Rs 91.8 crore
• Ebitda down 39% at Rs 158.7 crore Vs Rs 259.3 crore
• Ebitda margin at 47% Vs 50.7%

Godfrey Phillips Q3FY21 (Consolidated, YoY)

• Revenue up 5% at Rs 828.2 crore Vs Rs 787.4 crore
• Net profit up 8% at Rs 123.1 crore Vs Rs 113.9 crore
• Ebitda down 2% at Rs 154.6 crore Vs Rs 157.4 crore
• Ebitda margin at 18.7% Vs 20%
• Board approves voluntary winding up of its wholly-owned subsidiary Flavors ^ More Inc. based in the U.S.

Delta Corp Q3FY21 (Consolidated, YoY)

• Revenue down 41% at Rs 120.82 crore Vs 205.13 crore
• Net profit down 98% at Rs 1.28 crore Vs Rs 55.07 crore
• Ebitda down 85% at Rs 11.74 crore Vs Rs 79.06 crore
• Ebitda Margins at 9.7% Vs 38.5%

Mazagon Dock Shipbuilders (Consolidated, YoY)

• Revenue down 19% at Rs 1,461.09 crore Vs Rs 1,810.93 crore
• Net profit down 32% at Rs 141.37 crore Vs Rs 208.72 crore
• Ebitda down 37% at Rs 92.25 crore Vs Rs 146.37 crore
• Ebitda Margins at 6.3% Vs 8.1%
• Has approved interim dividend of Rs 5.41 per share for financial year 2020-21.
  
  

Dilip Buildcon Q3FY21 (Consolidated, YoY)

• Revenue up 7% at Rs 2746.2 crore Vs Rs 2564.4 crore
• Net profit up 79% at Rs 107.2 crore Vs Rs 59.9 crore
• Ebitda up 16% at Rs 630.5 crore Vs Rs 541.6 crore
• Ebitda Margins at 23% Vs 21.1%
• Net order book as on December 31, 2020 is Rs 26,141 crore
• 43.7% of the order book is from roads and highways projects
• 66.6% of the order book is from the Central government

Sobha Q3FY21 (Consolidated, YoY)

• Revenue down 23% at Rs 684.4 crore Vs Rs 883.2 crore
• Net profit down 70% at Rs 21.6 crore Vs Rs 73.2 crore
• Ebitda down 38% at Rs 178.60 crore Vs Rs 286.6 crore
• Ebitda Margins at 26.1% Vs 32.5%
• Best ever quarterly sales volume of 1.13 million square feet
• Price realisation of Rs 7,830 per square feet is the highest in the last six quarters
• Net cash flow is the highest in the last 10 quarters

Indiabulls Housing Finance Q3FY21 (Consolidated, YoY)

• NII down 39% at Rs 807.21 crore Vs Rs 1,313.27 crore
• Net profit down 40% at Rs 329.32 crore Vs Rs 546.87 crore
• Gross NPA at 1.75% Vs 1.98% (QoQ)
• Net NPA at 0.77% Vs 1.46%
• Proforma Gross NPA at 2.44% Vs 2.21% (QoQ)
• Provisions of Rs 2,418 crore are 3.4% of the total loan book
• Collection efficiency normalised at ~98%

Cochin Shipyard Q3FY21 (Consolidated, YoY)

• Revenue down 16% at Rs 748.7 crore Vs Rs 896.1 crore
• Net profit up 32% at Rs 223.7 crore Vs Rs 169.8 crore
• Ebitda up 60% at Rs 316.1 crore Vs Rs 197.7 crore
• Ebitda Margins at 42.2% Vs 22.1%
• Ship Building revenue down 15% at Rs 637.9 crore Vs Rs 747.3 crore
• Ship Repair revenue down 25% at Rs 110.8 crore Vs Rs 148.7 crore
• Declares second interim dividend of Rs 4 per share

Info Edge (India) Q3FY21 (Consolidated, YoY)

• Revenues down 17% at Rs 277.6 crore Vs Rs 335 crore
• Net profit of Rs 679 crore Vs Net loss of Rs 621 crore
• Ebitda down 32% at Rs 67.2 crore Vs Rs 99.5 crore
• Margins at 24.2% Vs 29.7%
• Exceptional gain of Rs 703.9 crore on reduction in interest of the group in its associate/JV.
• Billings are up 19% sequentially
• Recruitment Solutions and 99acres billing are nearing pre-pandemic levels year-on-year

Brokerage Radar

Nomura On Bharat Forge

• Maintains neutral rating
• Price target raised to Rs 649 from Rs 491
• Domestic MHCVs will likely recover stronger over FY22-24F
• Loss of oil & gas business can be covered up in the medium-term from new segments
• Company may need to look at areas beyond metal forgings to grow beyond the cyclical recovery
• Raise Ebitda margin forecasts to 27.2%/28.7% and revenue forecasts by 20%/7% for FY22/23F
• Remain neutral as rebound is factored in
• Prefer Motherson Sumi & Minda Industries in the auto components space

CLSA On Motherson Sumi

• Upgrade to buy from outperform
• Price target raised to Rs 250 from Rs 175
• Consolidated financials reverting to historical peaks
• Sustained turnaround at SMP was the biggest positive
• Focus on free cash flow, deleveraging and group reorganisation remains on track
• Free Cash Flow generation and RoE improvement should drive re-rating
• Expect company to turn net cash by FY23
• Raise FY22-23 EPS estimates by 21-29% to factor in better margins

Citi On Grasim

• Maintains buy rating
• Price target raised to Rs 1,430 from Rs 1,210
• Standalone balance sheet remains resilient
• Sale of fertiliser business is likely to be completed by July 2021
• Raise FY21-23E Ebitda estimates by 8-17% on higher VSF margins
• While paints foray may allay cash use concerns, holdco discount may remain on until execution clarity

Emkay On Ashok Leyland

• Maintains buy rating
• Price target raised to Rs 155 from Rs 124
• Domestic CV industry volume is likely to recover strongly, with FY22/FY23E growth at 37%/14%
• Expect Ashok Leyland to increase its CV market share to 20% in FY23E from 16% in FY20 driven by new products in LCVs and strong presence in HCVs
• Expect volume/revenue/Ebitda CAGR of 25%/35%/69% over FY20-23E
• Remains a play on the CV upcycle

Pledge Share Details

• Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 19 lakh shares between February 9-10.
• Max Financial Services: Max Ventures Investment created a pledge of 37,265 shares on February 10.
• Ajanta Pharma: Promoter Aayush Agrawal created a pledge of 1.15 lakh shares on February 11.

As Reported On February 12.

Bulk Deals

• Indiabulls Housing Finance: Pole-Ads Advertising bought 32.35 lakh shares (0.70%) at Rs 237.24 per share and sold 27.95 lakh shares (0.60%) at Rs 237.1 per share.
• Bajaj Consumer Care: Baytree Inv Mau Pte sold 98.63 lakh shares (6.69%) at Rs 252.81 per share.
• Garware Polyester: Ashish Kacholia bought 1.48 lakh shares (0.64%) at Rs 669.82 per share.

Who’s Meeting Whom

• Crompton Greaves Consumer Electricals: To meet White Oak Capital Management on February 16.
• Voltas: To meet IIFL Securities on February 23.
• Tata Power: To meet Quantum AMC on February 16.
• Radico Khaitan: To meet IDFC Mutual Fund on February 15 and First Sentiner Investors on February 16.

Insider Trades

• Westlife Development: Promoter Achal Jatia sold 7.77 lakh shares on February 11.
• Neuland Laboratories: Promoters Gannabathula Rama Rao and Gannabathula Satyanarayanamurty sold 1,800 shares between February 9-12.
• Panama Petrochem: Promoter Panama Builders Developers acquired 24,895 shares on February 10.
• Bhageria Industries: Promoter Aditya Bhageria acquired 3,011 shares on February 11.
• Godrej Agrovet: Promoter Godrej Industries acquired 39,250 shares between February 8-9.

As Reported On February 12.

Trading Tweaks

• Ex-Date Interim Dividend: Balkrishna Industries, Silly Monks Entertainment, Galaxy Surfactants, Torrent Pharmaceuticals, Hikal, Hero MotoCorp, Minda Industries, Minda Corporation, Praveg Communications (India).
• Record Date Interim Dividend: Alkyl Amines Chemicals, Cantabil Retail India, Saurashtra Cement.
• Record Date Stock Split: Bannari Amman Spinning Mills
• Move Into Short-term ASM Framework: Affle (India), Arvind
• Move Out Of Short-term ASM Framework: Shriram City Union Finance
• Move Out Of ASM Framework: Dewan Housing Finance Corporation, Emami Paper Mills, Surya Roshni

Money Market Update

• The currency ended at 72.74 against the U.S. Dollar as compared to Thursday's close of 72.87.
• Seven other currencies in Asia outperformed the rupee during the week.

F&O Cues

• Nifty February futures end at 15,161; discount of 2 points
• Nifty February futures add 1% and 1,510 shares in Open Interest
• Nifty Bank February futures end at 36,159; premium of 51 points
• Nifty Bank February futures add 10.5% and 6,636 shares in Open Interest
• Nifty Put-Call Ratio at 1.36
• Stocks In F&O Ban: BHEL, SAIL