All You Need To Know Going Into Trade On February 8
Asian markets have begun the new trading week on a positive note amidst improving Covid-19 trends and comments from treasury secretary Janet Yellen, pushing for a stimulus bill.
Benchmark indices in Japan and Australia have opened with gains after their peers on Wall Street hit a record high on Friday. Futures on the Dow Jones are trading with gains of over 100 points.
The U.S. Dollar steadied, treasury yields crept higher while oil prices extended their recent advance.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.5% to 15,024 as of 6:50 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- U.S. Treasury Secretary Janet Yellen on Sunday talk shows said that the country can return to full employment in 2022 if it enacts a robust enough relief package.
- Weaker-than-forecast U.S. jobs data on Friday had highlighted the case for further stimulus.
- “It does seem to be the case that global markets have now become addicted to stimulus and that the greatest risk to the outlook -- and potential trigger for a correction in risk-asset valuations -- would be central banks dialing down the music,” said Simon Ballard, chief economist at First Abu Dhabi Bank Pjsc.
- Yield on the 10-year treasuries rose to 1.17%.
- West Texas Intermediate crude gained 1% to $57.4 per barrel.
Get your daily fix of the global markets here.
Britannia Q3FY21 (Consolidated, YoY)
- Revenue up 6% at Rs 3,165.6 crore Vs Rs 2,982.7 crore
- Net profit up 22% at Rs 452.6 crore Vs Rs 369.7 crore
- Ebitda up 22% at Rs 611.5 crore Vs Rs 502 crore
- Ebitda margin at 19.3% Vs 16.8%
- General Trade, which is the largest channel for us, continues to grow at a healthy pace on the back of buoyancy in rural economy and recovery in urban markets.
- The other channels such as Modern Trade, Institutional business etc continue to face challenges with lower footfalls in stores and offices, schools, railway services coming back to normalcy gradually.
Divi's Laboratories Q3FY21 (Consolidated, YoY)
- Revenue up 22% at Rs 1,701.4 crore Vs Rs 1,396.3 crore (BBG Estimate: Rs 1,694 crore)
- Net profit up 31% at Rs 470.6 crore Vs Rs 359.1 crore (BBG Estimate: Rs 458.7 crore)
- Ebitda up 45% at Rs 688.7 crore Vs Rs 475.9 crore (BBG Estimate: Rs 650.8 crore)
- Ebitda margin at 40.5% Vs 34.1%
Stocks To Watch
- Hindustan Aeronautics: The company along with Rolls-Royce have agreed to expand their partnership i India for collaboration to expanding their supply chain for both Civil and Defence Aerospace and establishing an authorised maintenance centre for Adour Mk871 engines to support Rolls-Royce's global customers.
- IRCTC: Online bus booking service went live on January 29. Integration of this service with the IRCTC mobile app is likely to be completed in the first week of March. The company has tied-up with over 50,000 state road transport as well as private bus operators covering 22 states and three union territories.
- BEML: Signed MoUs with 11 entities to explore and enhance the business in the defence and aerospace sector.
- Maruti Suzuki India: Production in January down 10% to 1.6 lakh units from 1.79 lakh units.
- DLF: Delhi government decides to reduce circle rates of residential, commercial, industrial properties in Delhi by 20% across all categories for the next six months.
- CG Power: Board approves proposal for termination of GDP program and delisting of the GDRs, listed on the LSE, subject to compliance with applicable laws. Board also approved the proposal for voluntary liquidation of its step-down subsidiary CG-GANZ GENERATOR in Hungary.
- Ashoka Buildcon: Bagged an order from NTPC Renewable Energy Ltd. worth Rs 503 crore for an EPC package of 150 MW solar PV project in Rajasthan. The project includes operation and maintenance of complete Solar PV Plant for a period of three years from the date of successful completion of trial run of the plant.
- Sanofi India: Board reviewed the proposed plan of the Sanofi Group to globally sell some of its old brands along with their trademarks including Soframycin and Sofradex. The business of the company under these brands was 2.8% of total sales as of 9MCY20.
- Mazagon Dock Shipbuilders: Entered into four non-binding MoUs at the AERO India-2021 in Bangalore. The nature of the MoUs is confidential.
- Godfrey Phillips: Income Tax Department searched the office premises of the company from February 3 to February 7, in connection with search carried out on a promoter of the company under Section 132 of the Income Tax Act, 1961.
- Canara Bank: Cuts MCLR for overnight and one-month period by 10 basis points to 6.7% from 6.8% earlier. MCLR for three months, six months and one year period remain unchanged.
- VRL Logistics: Approves share buyback worth Rs 60 crore at its board meeting on Saturday. To buyback 20 lakh shares or 2.21% of the total paid-up equity shares of the company. The buyback price of Rs 300 per share is a 46.3% premium to Friday's closing price.
- Adani Enterprises: Adani Airports Holdings Ltd. acquired 23.5% stake in Mumbai International Airport for Rs 1,685.25 crore.
- Nifty Earnings Today: BPCL
- Non-Nifty Earnings Today: Aditya Birla Fashion & Retail, Astrazeneca Pharma, Balaji Amines, Balkrishna Industries, Balmer Lawrie, Bombay Dyeing, Camlin Fine Sciences, EID Parry, Galaxy Surfactants, Godrej Consumer Products, Gufic Biosciences, Jagran Prakashan, Marksans Pharma, NMDC, Redington India, SPARC, Star Cement, Sun TV, Torrent Pharma
Earnings After Market Hours
Rashtriya Chemicals & Fertilisers Q3FY21 (Consolidated, YoY)
- Revenue down 8% at Rs 2,047.9 crore Vs Rs 2,225.9 crore
- Net profit up 26% at Rs 98.7 crore Vs Rs 78.4 crore
- Ebitda up 152% at Rs 202.1 crore Vs Rs 80.1 crore
- Ebitda margin at 9.9% Vs 3.6%
- Fertiliser segment revenue down 16% at Rs 1,624.5 crore Vs Rs 1,932.2 crore
- Industrial Chemicals revenue doubles to Rs 310.5 crore Vs Rs 162.6 crore
Affle India Q3FY21 (Consolidated, YoY)
- Revenue up 59% at Rs 150.5 crore Vs Rs 94.4 crore
- Net profit up 43% at Rs 30.7 crore Vs Rs 21.4 crore
- Ebitda up 41% at Rs 38.3 crore Vs Rs 27.2 crore
- Ebitda margin at 25.5% Vs 28.8%
- India business revenue up 44% at Rs 76.2 crore Vs Rs 53 crore
- Overseas revenue up 81% at Rs 78.4 crore Vs Rs 43.3 crore
- CPCU business delivered 3.1 crore converted users, a growth of 46.1% YoY
Pfizer Q3FY21 (Standalone, YoY)
- Revenue up 10% at Rs 593.5 crore Vs Rs 538.2 crore
- Net profit flat at Rs 141.2 crore Vs Rs 139 crore
- Ebitda up 47% at Rs 196.8 crore Vs Rs 133.5 crore
- Ebtida margin at 33.2% Vs 24.8%
Equitas Holdings Q3FY21 (Consolidated, YoY)
- Net Interest Income up 74% at Rs 753.2 crore Vs Rs 433 crore
- Net profit at Rs 251.4 crore Vs Rs 79.3 crore
Gujarat Gas Q3FY21 (Consolidated, YoY)
- Revenue up 13% at Rs 2,829.4 crore Vs Rs 2,506.2 crore
- Net profit doubles to Rs 392.3 crore Vs Rs 197.3 crore
- Ebitda up 66% at Rs 614.7 crore Vs Rs 370.6 crore
- Ebitda margin at 21.7% Vs 14.8%
- Industrial gas sales volumes up 29% at 843 mmscmd
Shipping Corporation of India Q3FY21 (Consolidated, YoY)
- Revenue down 31% at Rs 841.2 crore Vs Rs 1,218.2 crore
- Net profit down 55% at Rs 131.6 crore Vs Rs 295.2 crore
- Ebitda down 54% at Rs 225.6 crore Vs Rs 494.7 crore
- Ebitda margin at 26.8% Vs 40.6%
Punjab National Bank Q3FY21 (Standalone, YoY)
- Net Interest Income up 91% at Rs 8,312.9 crore Vs Rs 4,355.1 crore
- Net profit of Rs 506 crore Vs net loss of Rs 492.3 crore
- Gross NPA at 12.99% Vs 13.43% (QoQ)
- Net NPA at 4.03% Vs 4.75% (QoQ)
- Proforma Gross and Net NPA at 14.71% and 5.65% respectively
- Provisions at Rs 5,432.6 crore Vs Rs 4,696.1 crore (QoQ) and Rs 4,146 crore (YoY)
Mrs. Bectors Foods Q3FY21 (Consolidated, YoY)
- Revenue up 11% at Rs 225.7 crore Vs Rs 203.2 crore
- Net profit up 86% at Rs 20.7 crore Vs Rs 11.1 crore
- Ebitda up 39% at Rs 39.6 crore Vs Rs 28.4 crore
- Ebitda margin at 17.5% Vs 14%
- Domestic biscuits revenue up 17% at Rs 87.8 crore Vs Rs 74.8 crore
- Biscuit exports up 21% at Rs 54.2 crore Vs Rs 44.9 crore
- Bread & Bakery revenue up 38% at Rs 46.6 crore Vs Rs 33.7 crore.
- Double-digit grwoth in biscuit segment
Gulf Oil Lubricants Q3FY21 (Standalone, QoQ)
- Revenue up 17% at Rs 481.9 crore Vs Rs 411.7 crore
- Net profit up 8% at Rs 64 crore Vs Rs 59.1 crore
- Ebitda up 6% at Rs 83.3 crore Vs Rs 78.3 crore
- Ebitda margin at 17.3% Vs 19%
- Volume growth of nearly 16% year-on-year
- B2B related and industrial businesses saw strong growth and record sales during the quarter
- Interim dividend of Rs 7 per share. Record date for the same is February 17.
JK Cement Q3FY21 (Consolidated, YoY)
- Revenue up 25% at Rs 1,832.7 crore Vs Rs 1,471.8 crore
- Net profit up 75% at Rs 217.3 crore Vs Rs 124.3 crore
- Ebitda up 56% at Rs 450.3 crore Vs Rs 289.5 crore
- Ebitda margin at 24.6% Vs 19.7%
BHEL Q3FY21 (Consolidated, YoY)
- Revenue down 22% at Rs 4,451.4 crore Vs Rs 5,680.8 crore
- Net loss of Rs 218 crore from net profit of Rs 161.8 crore
- Ebitda loss of Rs 180.4 crore from Ebitda gain of Rs 326.6 crore
Goldman Sachs On Divi's Laboratories
- Maintains buy rating
- Price target raised to Rs 4,440 from Rs 4,280
- Q3 was broadly in-line with consensus
- Major highlight was the gross margin expansion
- Recently doubled capacity in the nutraceuticals segment to support meaningful growth over the medium-term and beyond
- Remains part of the conviction list
Nomura On Mahindra & Mahindra
- Maintains buy rating
- Price target raised to Rs 1,165 from Rs 923
- Executing well on all fronts
- Success of the new SUV, share gains in LCVs and efficient capital allocation to drive further re-rating
- Raise FY21/FY22/FY23F EPS estimates by 14%, 2% and 8% respectively to factor in the strong tractor outlook, success in LCVs and Thar.
- Raise overall volume forecasts by 1% and 7% each for FY21 and FY22-23 respectively
- Current valuations are very attractive
- Reiterate stock as the top pick
Investec On Hero MotoCorp
- Maintains hold rating
- Price target raised to Rs 3,450 from Rs 3,200
- Strong quarter, though sustainability is uncertain
- Growth in spares should moderate as inventory gets stocked-up in the new channel
- Margin compression is concerning as impact of commodity inflation is likely to be higher in Q4 and portfolio is more price sensitive
- Bajaj and TVS are better placed considering higher indexation to premium two-wheelers
- Raise FY21-23E EPS estimates by 3-5% largely led by increase in revenue
Ambit Capital On Gujarat Gas
- Maintains sell rating
- Price target raised to Rs 278 from Rs 258
- Volumes grew at a record partly due to reduced gas prices effected by the state government
- Record quarter doesn't change the fact that Gujarat Gas remains susceptible to spot price vagaries
- Given industrial skew and lower price of alternate fuels, pricing power is limited
- Raise medium-term Ebitda by only 4% as trends should start reversing in Q4FY21E itself
- Top picks in the Oil & Gas space are OMCs and utilities
Antique Stock Broking On Honeywell Automation
- Maintains buy rating
- Price target raised to Rs 50,260 from Rs 41,765
- On track to maintain strong and sustainable growth despite revenue and profit miss in Q3
- Robust export business led by parent's outsourcing with provides counter cyclicality to the business
- Margin resilience has been encouraging
- Raise FY23 earnings estimates by 8% as a 'normal' FY23 will see a meaningful pick-up in growth
- Raise target on renewed growth vigour, higher earnings predictability and high quality balance sheet
Pledged Share Details
- Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 15.79 lakh shares.
- Gati: Promoter group revoked pledge of 1.05 lakh shares
- Future Retail: Promoter group invoked pledge of 2.94 crore shares.
As Reported On February 5.
- Dhanvarsha Finvest: Nomura Singapore bought 1.35 lakh shares at a price of Rs 380 per share
- Price Band Revised From 10% To 5%: Vaxtex Cotfab Limited
- Ex-Date Interim Dividend: Granules India, Gravita India, Indus Towers, Laurus Labs, Orient Cement, Motilal Oswal Financial Services, Bharat Electronics, Visaka Industries
- Record Date Interim Dividend: Nippon India Life Asset Management, Accelya Solutions, Cosmo Films
- Move Into ASM Framework: Felix Industries
- Move Into Short-term ASM Framework: De Nora India, Prince Pipes And Fittings
- Move Out Of Short-term ASM Framework: Centrum Capital, DCM Financial Services, Sirca Paints India, Bombay Super Hybrid Seeds.
Money Market Update
- The currency ended at 72.93 against the U.S. Dollar as compared to Thursday's close of 72.96.
- The rupee was the second best performing currency in Asia for the week.
- Nifty February futures ended at 14,946; premium of 22 points
- Nifty February futures add 0.9% and 1,257 shares in Open Interest
- Nifty Bank February futures ended at 35,792; premium of 138 points
- Nifty Bank February futures shed 0.4% and 276 shares in Open Interest
- Nifty Put-Call Ratio at 1.62
- Enters F&O Ban: BHEL
- Stocks in F&O Ban: BHEL, PNB, SAIL