All You Need To Know Going Into Trade On February 9
Global equities remained steady near record high levels as the rally over the previous week appeared to take a pause.
Benchmark indices in Japan and Australia were little changed while those in South Korea were rising. Futures on the Dow Jones are trading with a negative bias. The index rose for the fifth out of the last six trading sessions on Monday, ending 0.8% higher.
Fresh signs from the Biden administration to pass a sizeable aid bill to address unemployment spurred indices on Wall Street to a record high overnight.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.2% to 15,169 as of 7:05 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- Brent crude rose past $60 per barrel for the first time in more than a year, after rallying on signs that the global market is tightening and demand is improving. West Texas Intermediate rose 0.2% to $58.07 per barrel after a 2.2% overnight jump.
- Bitcoin is currently trading with gains of close to 5% at a record high of $46,763 after Tesla bought $1.5 billion of the Cryptocurrency.
- “The vaccine roll-out programs certainly suggest that the reflation trade has legs but central banks seem to want to ensure that expectations are kept in check,” Jane Foley, head of foreign exchange strategy at Rabobank, said on Bloomberg TV. “This suggests a choppy ride.”
- Yield on the 10-year treasuries stood at 1.16%.
Get your daily fix of the global markets here.
BPCL Q3FY21 (Standalone, QoQ)
- Revenue up 33.1% at Rs 66,731.4 crore Vs Rs 50,146.4 crore (Bloomberg Estimate: Rs 64,133 crore)
- Net profit up 23.6% at Rs 2,777.6 crore Vs Rs 2,247.2 crore (Bloomberg Estimate: Rs 2,038 crore)
- Ebitda up 11.8% at Rs 4,305.8 crore Vs Rs 3,851.2 crore (Bloomberg Estimate: Rs 3,541 crore)
- Ebitda margins at 6.5% Vs 7.7% (Bloomberg Estimate: 5.5%)
- Has declared interim dividend of Rs 16 per share of face value Rs 10 each for the Financial Year 2020-21.
Stocks To Watch
- Balkrishna Industries: To set up brownfield expansion and debottlenecking project along with addition of balancing and ancillary equipment at Bhuj. The project will result in increase of achievable tyre production capacity by 50,000 MTPA and is expected to be completed by H2FY23. The project is estimated to cost up to Rs 800 crore. Additionally, the board will enhance carbon black capacities and set up a captive power plant. The said project is expected to be completed by H1FY21 and is estimated to cost Rs 650 crore. The board also approved modernisation, automation and technology upgradation of certain existing equipment and installation of automated material handling systems at its facilities in Rajasthan and Bhuj. This project is expected to be completed by H1FY21 and will cost Rs 450 crore. The total planned capex of Rs 1,900 crore will be funded by internal accruals and debt, if required.
- Crompton Greaves Consumer Electricals: Promoter Amalfiaco Holdings plans to sell 2.83 crore shares or 4.5% of the total equity through a block deal. The floor price of the deal is Rs 387 per share which is a 5.2% discount to Monday's closing price, as per the terms of the deal accessed by Bloomberg News. As per the December quarter shareholding pattern, Amalfiaco held 11.42% stake in the company.
- Reliance Industries: Delhi High Court division bench stayed the order of the single judge in Future Retail Vs Amazon case. Order pronounced by Delhi High Court division bench of Chief Justice DN Patel and Justice Jyoti Singh. Future Retail had challenged the single judge February 2 order directing a status quo on Future Retail- Reliance Retail deal.
- UltraTech Cement: Finance committee of the Board of Directors approved the issuance of unconditional, unsubordinate and unsecured U.S. Dollar denominated notes worth $400 million or Rs 3,000 crore. The notes will have a tenor of 10 years and the interest payable on the same will be 2.8% per annum. The notes will be listed on the Singapore Exchange Securities Trading Ltd.
- Vedanta: A meeting of Committee of Directors is proposed to be held on February 11 to consider offering of secured NCDs aggregating up to Rs 500 crore in one or more tranches.
- Kirloskar Ferrous Industries: Renovation of the assets relating to pig iron plant situated at Paramenahally Village in Karnataka has been completed and manufacturing operations of pig iron commenced on February 8, 2021 after obtaining necessary approvals from government authorities.
- IFB Industries: Has filed the Scheme of Amalgamation of Trishan Metals, a wholly-owned subsidiary of the company, with National Company Law Tribunal, Kolkata.
- NCL Industries: Has approved the proposal to set up 250 panels per day capacity Sandwich Panel Unit in Paonta Sahib in Himachal Pradesh at an estimated cost of around Rs 2 crore. The unit is expected to commence production in 6 months from the date of final clearances from state government.
- VST Tillers Tractors: Has announced a technical supplier partnership with Monarch tractors. The two companies have worked collaboratively for over a year on the technical development of tractor hardware for the first series of Monarch Tractors.
- Wipro: Has appointed Michael Seiger as the Country Head and Managing Director for Germany and Austria.
- Sundram Fasteners: CRISIL has re-affirmed the rating of short-term debt and commercial paper as A1+.
- Hinduja Global Solutions: Has declared third interim dividend of Rs 6 per equity share for FY21.
- Nifty Earnings Today: Adani Ports & SEZ, Tata Steel
- Non-Nifty Earnings Today: Abbott India, AIA Engineering, Akzo Nobel India, Aster DM Healthcare, BASF India, Berger Paints, Bodal Chemicals, Burger King, Central Bank of India, Century Plyboards, Chalet Hotels, Dhanlaxmi Bank, Future Retail, GMDC, Gujarat Alkali & Chemicals, HEG, Heidelberg Cement, Igarashi Motors, Indoco Remedies, Indian Overseas Bank, J&K Bank, KRBL, Lemon Tree Hotels, Mahanagar Gas, Muthoot Finance, Nilkamal, Raymond, Spandana Sphoorty, TCI Express, Varroc Engineering, VST Tillers
Earnings Post Market Hours
Torrent Pharma Q3FY21 (Consoildated, YoY)
- Revenue up 1% at Rs 1,995 crore Vs Rs 1,966 crore (Bloomberg Estimate: Rs 2,060.4 crore)
- Net profit up 18% at Rs 297 crore Vs Rs 251 crore (Bloomberg Estimate: Rs 292.1 crore)
- Ebitda up 12% at Rs 607 crore Vs Rs 540 crore (Bloomberg Estimate: Rs 617.1 crore)
- Ebitda Margins at 30.4% Vs 27.5%
- Has announced interim dividend of Rs 20 per share.
- Gross Margins at 72%
- India business revenue up 7% to Rs 930 crore Vs Rs 871 crore
- U.S. business revenue down 24% to Rs 292 crore Vs Rs 391 crore
- Germany business revenue up 21% to Rs 265 crore Vs Rs 219 crore
Sun TV Q3FY21 (Consolidated, YoY)
- Revenue up 17% at Rs 994.1 crore Vs Rs 847.8 crore (Bloomberg Estimate: Rs 963.1 crore)
- Net profit up 16% at Rs 445.5 crore Vs Rs 384.7 crore (Bloomberg Estimate: Rs 422.9 crore)
- Ebitda up 2% at Rs 608.1 crore Vs Rs 595.3 crore (Bloomberg Estimate: Rs 600.2 crore)
- Ebitda Margins at 61.2% Vs 70.2%
- Subscription Revenues up 3% at Rs 424 crore Vs Rs 411.8 crore
- Has announced interim dividend of Rs 5 per share.
Redington (India) Q3FY21 (Consolidated, YoY)
- Revenue up 15% at Rs 16,980.8 crore Vs Rs 14,784.4 crore
- Net profit up 23% at Rs 201.9 crore Vs Rs 164.4 crore
- Ebitda up 42% at Rs 424.1 crore Vs Rs 298.2 crore
- Ebitda Margins at 2.5% Vs 2%
- Exceptional item of Rs 6.34 crore pertaining to impairment of goodwill and other intangibles.
Balaji Amines Q3FY21 (Consolidated, YoY)
- Revenue up 72% at Rs 392.1 crore Vs Rs 227.5 crore
- Net profit of Rs 75 crore Vs Rs 23.4 crore
- Ebitda up 174% at Rs 117.4 crore Vs Rs 42.8 crore
- Ebitda Margins at 29.9% Vs 18.8%
- As part of Phase 1 of the greenfield project, likely to commence manufacturing of Ethylamines by end of FY21
- Plan to commence manufacturing of Dimethyl Carbonate by end of Q2FY22
NMDC Q3FY21 (Consolidated, YoY)
- Revenue up 45% at Rs 4,355.1 crore Vs Rs 3,006.4 crore
- Net profit up 53% at Rs 2,108 crore Vs Rs 1,375 crore
- Ebitda up 74% at Rs 2,766.8 crore Vs Rs 1,590.1 crore
- Ebitda Margins at 63.5% Vs 52.9%
- Revenue from Iron ore up 44% at Rs 4,311.4 crore Vs Rs 2,991.6 crore
- Revenue from Pellet, other minerals and services triples to Rs 43.6 crore Vs Rs 14.7 crore
Balkrishna Industries Q3FY21 (Consolidated, YoY)
- Revenue up 31% at Rs 1,509.2 crore Vs Rs 1,155.8 crore (Bloomberg Estimate: Rs 1,385.5 crore)
- Net profit up 45% at Rs 325.1 crore Vs Rs 223.8 crore (Bloomberg Estimate: Rs 260.7 crore)
- Ebitda up 39% at Rs 479.6 crore Vs Rs 346.1 crore (Bloomberg Estimate: Rs 430.1 crore)
- Ebitda margins at 31.8% Vs 29.9%
- Has declared third interim dividend of Rs 5 per share
JPMorgan On NMDC
- Maintains overweight rating
- Price target raised to Rs 150 from Rs 126
- Increase estimates by 42% for FY21
- Upside risk to estimates if domestic iron ore price decline is muted
- Difficult to see further large cuts in iron ore price
- Quantum of iron ore price cut will depend on the auctioned Odisha iron ore mines which have not ramped up so far
- Next catalysts include steel plant separation and visibility on volume growth
- Uncertainty remains on Donimalai mine restart
Motilal Oswal On Britannia
- Maintains neutral rating
- Price target cut to Rs 3,830 from Rs 3,890
- In-home consumption likely to normalise as consumers revert to normalised lifestyle
- Trim FY22E/FY23E sales growth outlook as they will come on a high base in FY21.
- Extraordinary factors that led margin expansion in FY21 unlikely to sustain
- Remain neutral on fair valuations, sustained concerns over elevated group ICDs and an uncertain earnings outlook beyond FY21
Emkay On Sun TV
- Maintains hold rating
- Price target raised to Rs 541 from Rs 439
- Weaker-than-anticipated quarter with a miss on all fronts
- Advertising revenues were down 10% impacted by slower recovery in retail / local ad spends
- Management targeting to achieve FY20 ad levels in FY22E
- Maintain estimates and await execution of strategies to improve viewership share which in turn will aid revenue growth
- 3.6% dividend yield and healthy net cash balance sheet provide comfort
Pledge Share Details
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 4.90 lakh shares on February 5.
- Adani Ports And Special Economic Zone: Promoters Gautam Adani and Rajesh Adani revoked pledge of 24.5 lakh shares on February 6.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 27.5 lakh shares between February 5-6.
- Adani Green Energy: Promoter Adani Trading Services LLP revoked pledge of 1.72 crore shares on February 5.
As Reported On February 9.
- NCC: Tower Research Capital Markets India bought 30.32 lakh shares (0.50%) at Rs 93.17 per share and sold 37.56 lakh shares (0.62%) at Rs 93.58 per share. Jyske Invest Fund Management bought 45.64 lakh shares (0.75%) at Rs 94.08 per share.
- Stove Kraft: Unifi Capital bought 1.81 lakh shares at Rs 428.5 per share.
- L&T Finance Holdings: ECL Finance bought 31.23 lakh rights shares at Rs 23.62 per share. Norges Bank bought 1 crore rights shares at Rs 23 per share.
- Apollo Tricoat Tubes: Promoter Saket Agarwal sold 1.86 lakh shares (0.61%) at Rs 915 per share.
Who’s Meeting Whom
- Cipla: To meet OrbiMed Healthcare Fund Management on February 9, Skerryvore Asset Management on February 10 and Avendus Capital Public Markets Alternate Strategies LLP on February 11.
- Century Textiles and Industries: To meet HSBC Securities on February 10.
- Prince Pipes and Fittings: To meet Rare Enterprise and HSBC Asset Management on February 9.
- Move Into ASM Framework: Vakrangee, Paisalo Digital, Unichem Laboratories
- Move Into Short-term ASM Framework: PNB Gilts, Intellect Design Arena, NCC
- Move Out Of Short-term ASM Framework: Sobha, PDS Multinational Fashions, RattanIndia Power
- Ex-Date Interim Dividend: Persistent Systems, Shriram Pistons & Rings, Orient Electric, Dr. Lal Path Labs, Sun Pharmaceutical Industries, Cummins India, Cholamandalam Investment and Finance Company, LT Foods, Indian Oil Corporation, VR Films & Studios.
- Record Date Interim Dividend: Granules India, Indus Towers, Laurus Labs, Orient Cement, Visaka Industries, Gravita India, Motilal Oswal Financial Services, Bharat Electronics.
Money Market Update
- The currency ended at 72.96 against the U.S. Dollar as compared to Friday's close of 72.93.
- The rupee was the only underperformer on Monday within the Asian currency basket, along with the Taiwanese dollar.
- Nifty February futures ended at 15,140; premium of 25 points
- Nifty February futures shed 0.9% and 1,288 shares in Open Interest
- Nifty Bank February futures ended at 36,031; premium of 48 points
- Nifty Bank February futures shed 8.8% and 6,074 shares in Open Interest
- Nifty Put-Call Ratio at 1.61
- Enters F&O Ban: Sun TV
- Out of F&O Ban: PNB
- Stocks In F&O Ban: BHEL, SAIL, Sun TV