All You Need To Know Going Into Trade On February 5
Asian equities are trading with gains on the final trading day of the week after their peers in the U.S. climbed to a record high overnight.
Benchmark indices in Japan, Australia and South Korea were advancing, while futures on the Dow Jones were trading 20 points lower.
The U.S. Dollar has held an overnight gain, oil prices continued to surge while Gold steadied after Thursday's fall.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 14,939 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:
- The S&P 500 gained over 1% overnight, led by banks and technology shares, while the Russel 2000 index of smaller companies rose over 2%.
- The Monetary Policy Committee in India will be announcing its policy decision today.
- “The economic data is coming in very strong,” Andrew Slimmon, fund manager at Morgan Stanley Investment Management, said on Bloomberg TV. “The market is going to struggle at some point this year, but at the moment it’s too early because the numbers are still coming through.”
- The Bank of England has forecast that the U.K. economy is heading for a powerful rebound thanks to an aggressive push to vaccinate citizens.
- Yield on the 10-year treasuries remained at 1.14%.
- West Texas Intermediate crude rose 0.6% to $56.56 per barrel.
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Hero MotoCorp (Standalone, YoY)
- Revenue up 40% at Rs 9,778 crore Vs Rs 6.997 crore
- Net Profit up 16% at Rs 1,084 crore Vs Rs 880 crore
- Ebitda up 36% at Rs 1,416 crore Vs Rs 1,040 crore
- Ebitda margins at 14.5% Vs 14.9%
- Expects input costs to remain elevated going ahead.
- Declares special dividend of Rs 70
Stocks To Watch
- Biocon: Subsidiary Biocon Biologics Ltd. has signed an agreement with the Clinton Health Access Initiative to expand access to cancer biosimilars in over 30 countries in Africa and Asia as a part of the Cancer Access Partnership. The company said it will help in providing advanced cancer therapies to patients in low and middle-income countries.
- Mrs. Bectors Food Specialities: CRISIL Ratings has upgraded the short-term and long-term ratings of Mrs. Bectors Food Specialities for its bank facilities aggregating Rs 270 crore.
- Indraprastha Gas: Company informed that all Industrial Units in Delhi using polluting fuels are now connected with the Piped Natural Gas.
- PNB Gilts: Declared a second interim dividend for the financial year ending March 31, 2021, of Rs 4/equity share. The record date is February 12, 2021.
- Bharat Electronics: Has signed MoU with BPL Medical Technologies for co-operation in the field of medical products and solutions to provide affordable health care.
- Gillette India: Board of Directors have recommended an interim dividend for FY21 worth Rs 33 per share.
- Tata Consultancy Services: Board of Directors of MCX has decided to award the contract for the implementation of the Commodity Derivatives Platform to TCS.
- IRFC: Raised $750 million in 10-year dollar bond sale to international investors. The 10-year bonds are priced with an annual coupon rate of 2.8%.
- Nifty Earnings: Britannia Industries, Mahindra & Mahindra
- Non-Nifty Earnings: Aditya Birla Capital, Alkem Laboratories, Ashoka Buildcon, Automotive Axles, Mrs. Bectors Food Specialities, Cadila Healthcare, Cholamandalam Financial Holdings, Dalmia Bharat Sugar and Industries, Equitas Holdings, Future Consumer, Fortis Healthcare, Glaxosmithkline Pharmaceuticals, Gujarat Gas, Gulf Oil Lubricants India, Himatsingka Seide, Insecticides (India), Jamna Auto Industries, Jindal Saw, Jubilant Life Sciences, KCP, Kolte-Patil Developers, Narayana Hrudayalaya, NIIT, Pfizer, Punjab National Bank, Rashtriya Chemicals & Fertilizers, Shipping Corporation Of India, SKF India, SML Isuzu, Sumitomo Chemical India, TCNS Clothing
Earnings Post Market Hours
Brigade Enterprises Q3FY21 (Consolidated, YoY)
- Revenue up 17% at Rs 644.6 crore Vs Rs 552.2 crore
- Net loss of Rs 16.1 crore Vs net profit of Rs 49.3 crore
- Ebitda down 5% at Rs 148.4 crore Vs Rs 155.5 crore
- Ebitda margin at 23% Vs 28.2%
- Exceptional loss of Rs 40 crore which were invested in tier-II bonds of Lakshmi Vilas Bank and were subsequently written down
- All-time high quarterly sales of 1.53 million square feet with sale value of Rs 923.2 crore
- Real estate sales are up 60% from the previous quarter by sale value
- Rental collection stands at 99% in office portfolio
- Sales realisation up 3% from the previous quarter
Tata Power Q3FY21 (Consolidated, YoY)
- Revenue up 7% at Rs 7,597.9 crore Vs Rs 7,071 crore
- Net profit up 22% at Rs 318.4 crore Vs Rs 260 crore
- Ebitda down 3% at Rs 1,749.6 crore Vs Rs 1,804.9 crore
- Ebitda margin at 23% Vs 25.5%
- Exceptional expense of Rs 109 crore due to revision of MERC order disallowing the recovery of standby charges
- Solar EPC order book at Rs 10,608 crore
Godrej Agrovet Q3FY21 (Consolidated, YoY)
- Revenue down 14% at Rs 1,526.1 crore Vs Rs 1,782.6 crore
- Net profit up 33% at Rs 68.1 crore Vs Rs 51.1 crore
- Ebitda up 12% at Rs 112.4 crore Vs Rs 100.5 crore
- Ebitda margin at 7.4% Vs 5.6%
- Animal feed revenue down 23% at Rs 783.3 crore Vs Rs 1,013 crore
- Vegetable oil revenue down 17% at Rs 187.8 crore Vs Rs 225 crore
Prataap Snacks Q3FY21 (Consolidated, YoY)
- Revenue down 6% at Rs 339.1 crore Vs Rs 360.6 crore
- Net profit down 18% at Rs 4.5 crore Vs Rs 5.5 crore
- Ebitda down 19% at Rs 17.6 crore Vs Rs 21.6 crore
- Ebitda margin at 5.2% Vs 6%
- Prices of palm oil remain 'unusually elevated' impacting margins
- Restructuring distribution network which may impact margins positively over the medium-term
Dalmia Bharat Q3FY21 (Consolidated, YoY)
- Revenue up 18% at Rs 2,857 crore Vs Rs 2,418 crore
- Net profit at Rs 183 crore Vs Rs 26 crore
- Ebitda up 53% at Rs 694 crore Vs Rs 455 crore
- Ebitda margin at 24.3% Vs 18.8%
- Sales volume up 14% at 5.8 MT Vs 5.1 MT
- Ebitda per tonne up 32% at Rs 1,172 Vs Rs 885
- Repaid debt of Rs 1,379 crore during the financial year
- Net debt to Ebitda at 0.56x
- Premium products saw growth of 66% year-on-year
Trent Q3FY21 (Standalone, YoY)
- Revenue down 17% at Rs 725.4 crore Vs Rs 869.7 crore
- Net profit up 43% at Rs 79.7 crore Vs Rs 55.7 crore
- Ebitda up 4% at Rs 179.9 crore Vs Rs 173.6 crore
- Ebitda margin at 24.8% Vs 20%
- Westside revenues in Q3 were 78% as compared to the previous period
- Online channels saw growth of over 80% in Q3
Honeywell Automation Q3FY21 (Standalone, YoY)
- Revenue down 3% at Rs 874.2 crore Vs Rs 901.2 crore
- Net profit up 4% at Rs 149.9 crore Vs Rs 144.7 crore
- Ebitda flat at Rs 187.6 crore Vs Rs 188.5 crore
- Ebitda margin at 21.5% Vs 20.9%
CLSA On State Bank of India
- Maintains buy rating
- Price target raised to Rs 560 from Rs 385
- Full-year slippages of 1.5% of loans is the lowest the bank would have seen in the last 15 years
- Strong NII provision; large buffer built for employee provisioning
- Asset quality is delivering better outcomes Vs even private banks
- Revise earnings estimates higher by 15-26% and expect RoEs of 14% by FY23CL
- Expect material re-rating beyond 1x book
- Still remains a deep value opportunity and current re-rating should continue
Motilal Oswal On Bharti Airtel
- Maintains buy rating
- Price target raised to Rs 720 from Rs 650
- Continued strong performance on market share wins
- Africa business continued its good run
- Superior execution quality reflective in its performance over the last three quarters
- Can deliver resounding growth regardless of the price hike
- The derailment of FCF generation and deleveraging despite a good operational
- performance are the key dampeners.
Maybank on Tata Motors
- Maintain sell rating
- Price target raised to Rs 160 from Rs 83
- Remain negative because stricter lockdowns and rising Covid-19 cases in the EU and U.S. threaten JLR volumes
- Pressure to increase capex to develop EVs
- Margin expansion is unsustainable given the surge in input costs
- Stock is overvalued considering multiple headwinds
- Upside risks are immediate asset / stake sale and debt reduction
Jefferies On Thermax
- Maintains Underperform rating
- Price target raised to Rs 790 from Rs 640
- Remain concerned at the company level due to limited visibility on captive power projects growth, especially with focus on renewable energy and capital allocation given the poor returns on past investments
- FGD execution is back on track
- Management commentary on being open for inorganic growth is not comforting
- SIS: Norges Bank bought 10 lakh shares at Rs 403 per share. Steadview Capital sold 21.53 lakh shares at 403.09 per share.
- Dhanuka Agritech: Promoter group sold 83,000 shares on February 1
Pledge Share Details
- JSW Energy: Promoter group created pledge of 2.25 crore shares on February 2.
- Adani Ports & SEZ: Promoter group revoked pledge of 48.8 lakh shares on February 3.
- Crompton Greaves Consumer Electricals: Director (Shantanu khosla) created pledge of 1 lakh shares on February 3.
As reported on February 4.
- Price Band Revised From 20% To 10%: Shriram City Union Finance
- Ex-Date Interim Dividend: Cosmo Films, Accelya Solutions India, Nippon Life India Asset Management
- Record Date Interim Dividend: TVS Motor, Emami
- Ex-Date Buyback: National Aluminium Company
- Move Into ASM Framework: IIFL Finance, V2 Retail, Vikas Multicorp
- Move Into Short-term ASM Framework: Banka BioLoo, Shriram City Union Finance, AYM Syntex
- Move Out Of Short-term ASM Framework: Aro Granite Industries
- The currency ended little changed at 72.96 against the U.S. Dollar as compared to Wednesday's close of 72.97.
- Nifty February futures ended at 14,890; discount of 5 points
- Nifty February futures add 8.6% and 11,552 shares in Open Interest
- Nifty Bank February futures ended at 35,342; discount of 2 points
- Nifty Bank February futures shed 4% and 2,853 shares in Open Interest
- Nifty Put-Call Ratio at 1.62
- Enters F&O Ban: Punjab National Bank
- Stocks In F&O Ban: SAIL, PNB