All You Need To Know Going Into Trade On February 4
Asian equities have opened marginally lower this morning after a rally fizzled out overnight on Wall Street.
Benchmarks in Japan, South Korea and Australia are trading with modest losses.
Treasuries held overnight losses while oil prices extended their advance.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,823 as of 6:55 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:
- Futures on the Dow Jones are trading little changed. The index ended 0.1% higher on Wednesday. The S&P 500 also eked out modest gains after its biggest two-day rally in almost three months.
- Data showed companies added more jobs than forecast in January, while growth at service providers accelerated.
- Federal Reserve Bank of St. Louis President James Bullard said stock prices reflect optimism about the economic recovery.
- “There may be signs of overextension when it comes to single stocks, but under the surface there is an economy regaining serious momentum.” Mike Loewengart, managing director of investment strategy at E*Trade Financial Corp said.
- Yield on the 10-year treasuries stood at 1.14%.
- West Texas Intermediate crude rose 0.3% to $55.85 per barrel.
Get your daily fix of the global markets here.
Bharti Airtel Q3FY21 (Consolidated, QoQ)
- Revenue up 5.8% at Rs 26,518 crore Vs Rs 25,060.4 crore (Bloomberg Estimate: Rs 26,063 crore)
- Net profit at Rs 853.6 crore Vs Net loss of Rs 763.2 crore (Bloomberg Estimate: Net Loss Rs 5 crore)
- EBITDA up 4.6% at Rs 12,178 crore Vs Rs 11,642 crore (Bloomberg Estimate: Rs 11,827 crore)
- Ebitda margins at 45.2% Vs 45.15% (Bloomberg Estimate: Est 45.4%)
- ARPU at Rs 166 Vs Rs 162
- One-time deemed disposal gain of Rs 944.96 crore
- Adjusted for the exceptional item, the company reported a net loss of Rs 846 crore.
Stocks To Watch
- Bharti Airtel: Approved raising of funds by issuance of secured/unsecured, listed/unlisted non-convertible debt securities including debentures, bonds etc. upto Rs 7,500 crore in one or more tranches from time to time.
- PSP Projects: Has received Letter of Intent for a project worth Rs 588.62 crore from a private developer at Ahmedabad, Gujarat. Further the company has been ranked the L1 bidder by a regulatory authority for projects totalling to Rs 1,249.41 crore for construction of medical colleges at multiple locations at Uttar Pradesh.
- NLC India: Has issued 17,000 Commercial Papers of face value of Rs 5 lakh each, aggregating to Rs 850 crore.
- Hero MotoCorp: Sets up dedicated vertical for Harley-Davidson products and merchandise distribution in India. Ravi Avalur appointed as the business unit head of the new vertical. Also commenced wholesale dispatches of Harley products to dealers from January 18. The company has on-boarded 11 existing Harley-Davidson dealers in key geographies.
- Minda Corporation: Declared an interim dividend of Rs 0.30 per share on equity shares of Rs 2 each. The board has fixed February 16, 2021, as the Record Date for the same.
- P&G Hygiene and Health Care: Has declared an interim dividend of Rs 85 per share. The record date for the purpose of eligibility for payment of said interim dividend is February 11, 2021.
- Future Enterprises: The SEBI restrained Future Group founder Kishore Biyani, Future Corporate Resources Pvt. Ltd. from accessing the securities market for one year and dealing in Future Retail’s shares for two years. Future Corporate Resources said that the market regulator's order is 'untenable.'
- HCL Technologies: Has announced global strategic alliance with Alteryx to accelerate analytics automation and digital transformation for Global 2000 enterprises
- Nifty Earnings: Hero MotoCorp, NTPC, SBI
- Non-Nifty Earnings: Adani Power, Adani Transmission, Arvind, Avanti Feeds, Bajaj Electricals, Brigade Enterprises, Caplin Point Laboratories, Chambal Fertilisers & Chemicals, Container Corporation Of India, Dalmia Bharat, Prataap Snacks, Dollar Industries, FDC, Gillette India, Gujarat Narmada Valley Fertilizers & Chemicals, Godfrey Phillips India, Godrej Agrovet, Godrej Properties, Hindustan Petroleum Corporation, Honeywell Automation India, ICRA, Indostar Capital Finance, IPCA Laboratories, Jindal Stainless, Kalpataru Power Transmission, Mangalore Chemicals & Fertilizers, Mangalore Chemicals & Fertilizers, Minda Industries, Munjal Showa, Praj Industries, REC, Somany Ceramics, Sonata Software, Strides Pharma Science, Sundram Fasteners, Tata Power, Trent, TTK Healthcare, Whirlpool Of India, Zee Entertainment Enterprises.
Earnings Post Market Hours
Apollo Tyres Q3FY21 (Consolidated, YoY)
- Revenue up 17% at Rs 5,153.8 crore Vs Rs 4,399.7 crore
- Ebitda up 85% at Rs 989.2 crore Vs Rs 533.4 crore
- Ebitda Margins at 19.2% Vs 12.1%
- Net profit up 155% at Rs 443.8 crore Vs Rs 173.8 crore
- APMEA revenue up 23% at Rs 3,449.4 crore Vs Rs 2,811.4 crore
- Europe revenue up 7% at Rs 1,747 crore Vs Rs 1,625.7 crore.
Ujjivan Small Finance Bank (Standalone, YoY)
- Net Interest Income up 1% at Rs 432.28 crore Vs Rs 426.53 crore
- Net Loss of Rs 278.83 crore Vs Net Profit of Rs 89.66 crore
- Gross NPA at 1% Vs 0.98% (QoQ)
- Net NPA at 0.05% Vs 0.14% (QoQ)
- Pro-forma Gross NPA & Net NPA would have been 4.8% & 2.05% respectively.
- Gross advances at Rs 13,638 crore
- Disbursements up 8% at Rs 2,184 crore
- Capital adequacy ratio at 27% with Tier-1 capital at 26%
- Liquidity coverage ratio at 179%
- CASA stands at 18% vs 12%
- Have restructured Rs 852 crore of portfolio in MicroBanking basis extensive discussion with borrowers, analysis of repayment behaviour and current cash-flows.
VIP Industries Q3FY21 (Consolidated, YoY)
- Revenue down 46% at Rs 232.61 crore Vs Rs 430.57 crore
- Ebitda down 88% at Rs 8.14 crore Vs Rs 68.63 crore
- Ebitda Margins at 3.5% Vs 15.9%
- Net Loss of Rs 7 crore Vs Net profit of 34.21 crore
Prince Pipes Q3FY21 (Standalone, YoY)
- Revenue up 39% at Rs 549 crore Vs Rs 395 crore
- Ebitda up 96% at Rs 102.9 crore Vs Rs 52.4 crore
- Ebitda Margins at 18.7% Vs 13.3%
- Net profit up 176% at Rs 66.7 crore Vs Rs 24.2 crore
- Sales volume increased by 18% at 36,711 MT
- Company is net cash positive: Rs 37 crore excluding IPO proceeds
Indian Hotels Q3FY21 (Consolidated, YoY)
- Revenue down 59% at Rs 559.9 crore Vs Rs 1,372.7 crore
- Net loss of Rs 133.2 crore Vs net profit of Rs 213.1 crore
- Ebitda loss of Rs 16.8 crore from Ebitda gain of Rs 425.6 crore
- Signed six new hotels with over 1100 rooms across brands at multiple locations
Inox Leisure Q3FY21 (Standalone, YoY)
- Revenue down 97% at Rs 14.9 crore Vs Rs 513 crore
- Net loss of Rs 102.5 crore Vs Rs 35 crore
- Ebitda loss of Rs 10.5 crore Vs Ebitda gain of Rs 169 crore
- Recognised rent concessions worth Rs 54.07 crore during the quarter
- With an assured and an extremely rich pipeline with movies in all genres and languages, the Company has pinned hopes on the FY22, calling it the Year Of Cinema Entertainment.
- The Company has also resumed its new screen addition on a rigorous note with opening of 4 new cinemas with 15 screens in Gurugram (2), Salem and Thane.
- The Company hopes to add another 14 screens before the end of FY21 or during Q1 FY22.
Minda Corp Q3FY21 (Standalone, YoY)
- Revenue up 36% at Rs 716.4 crore Vs Rs 526.4 crore
- Net profit up 11% at Rs 49.5 crore Vs Rs 44.6 crore
- Ebitda up 13% at Rs 81.9 crore Vs Rs 72.5 crore
- Ebitda margin at 11.1% Vs 13.3%
- Revenue growth aided by 55% growth in aftermarket division and exports also increased 25%
- Content increase in two-wheeler wire harnessing due to BS-VI transition also helped
- Highest ever quarterly profit
- Secured orders worth Rs 1,649 crore during the quarter
- Export orders worth Rs 224.1 crore were won during the quarter
Astral Poly Technik Q3FY21 (Consolidated, YoY)
- Revenue up 35% at Rs 897.5 crore Vs Rs 664.1 crore (BBG Estimate: Rs 838.2 crore)
- Net profit up 82% at Rs 123.9 crore Vs Rs 67.9 crore (BBG Estimate: Rs 95 crore)
- Ebitda up 62% at Rs 192 crore Vs Rs 118.2 crore (BBG Estimate: Rs 150.8 crore)
- Ebitda margin at 21.4% Vs 17.8%
- Plastic business revenue up 33% at Rs 672.7 crore Vs Rs 505.7 crore
- Adhesives business revenue up 42% at Rs 224.8 crore Vs Rs 158.4 crore
- Announces bonus issue in the ratio of 1:3
Jefferies on Astral Poly
- Maintains hold rating
- Price target raised to Rs 1,780 from Rs 1,630
- Growth driven by pent-up demand, better product mix and PVC inventory gains
- Balance sheet remains strong
- Working capital has rationalized YoY as well
- Expect sales, PAT CAGR of 14% and 26% respectively over FY20-24E
- Raise FY21-24E EPS estimates by 6-10% driven by both revenue and margin expansion
- Retain hold on rich valuations
Emkay on PI Industries
- Maintains buy rating
- Price target raised to Rs 2,500 from Rs 2,450
- Remain constructive due to new order wins, visibility on new molecule commercialisation pipeline, improved utilisation and synergies from Isagro integration
- Raise FY21-23 PAT Estimates by 2-7% factoring in the Q3 beat
- Organic revenue growth target of 20% for FY22
Motilal Oswal on Jubilant Foodworks
- Maintain neutral rating
- Price target of Rs 2,920
- Offers highest margin and best return ratios among peers
- Longer-term prospects appear even brighter post covid
- Introduction of delivery charges and closure of 105 least profitable stores are driving structural margin improvement
- Valuations leave little room for upside on a 12 month perspective
Pledge Share Details
- Max Financial Services: Promoter Max Ventures Investment Holdings created pledge of 52.88 lakh shares between January 28-29.
- Emami: Promoters Diwakar Viniyog and TMT Viniyogan revoked pledge of 30 lakh shares on February 1. Promoter Suntrack Commerce created a pledge of 92,000 shares on February 2.
- JSW Energy: Promoter Virtuous Tradecorp revoked pledge of 94 lakh shares on February 1.
- Sun Pharma: Promoter Shanghvi Finance revoked pledge of 2,000 shares on January 29.
As Reported On February 3.
- Butterfly Gandhimathi Appliances: Navodya Enterprises bought 1 lakh shares (0.56%) at Rs 583.76 per share.
- PVR: Societe Generale - ODI bought 10 lakh shares (1.81%) at Rs 1,520 per share. Berry Creek Investment sold 9.60 lakh shares (1.74%) at Rs 1,520.09 per share. Gray Birch Investment sold 9.72 lakh shares (1.76%) at Rs 1,520 per share.
- Neuland Laboratories: Rohinton Soli Screwvala sold 86,170 shares (0.67%) at Rs 1,480.6 per share.
Who’s Meeting Whom
- Indian Energy Exchange: To meet Fidelity Management Research on February 4.
- Price Band Revised From 20% To 10%: Shriram City Union Finance
- Ex-Date Interim Dividend: IIFL Finance, Emami, Vaibhav Global, Sundaram Clayton, TVS Motor Company, Steel Authority of India, Godawari Power And Ispat, Exide Industries, AK Capital Services, Exide Industries,
- Record Date Interim Dividend: Wendt (India), Kewal Kiran Clothing, Menon Bearings, Bella Casa Fashion & Retail
- Ex-Date Demerger: Jubilant Life Sciences
- Record Date Bonus Issue: KNR Constructions
- Ex-Date Buyback: Neelamalai Agro Industries
- Move Into ASM Framework: Anant Raj, Tata Motors, Hindustan Foods
- Move Into Short-term ASM Framework: IIFL Finance, MPS
- Move Out Of Short-term ASM Framework: Gateway Distriparks, Anant Raj, Tata Motors
- Kotak Mahindra Bank: Promoter Janak Desai sold 4,500 shares on February 2.
As Reported On February 3.
Money Market Update
- The currency ended at little changed at 72.95 against the U.S. Dollar, as compared to Tuesday's close of 72.96.
- Nifty February futures ended at 14,814; premium of 25 points
- Nifty February futures add 4.7% and 6,033 shares in Open Interest
- Nifty Bank February futures ended at 34,799; premium of 41 points
- Nifty Bank February futures add 10.5% and 6,897 shares in Open Interest
- Nifty Put-Call Ratio at 1.59
- Stocks In F&O Ban: SAIL