All You Need To Know Going Into Trade On July 22
Asian stocks climbed early Thursday after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups. The dollar held a decline.
Shares rose in Australia and South Korea, while Japan is shut for a holiday. U.S. futures edged up after the S&P 500’s biggest back-to-back advance in two months, led by cyclical stocks like energy and financials.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, climbed 1.7% to 15,720 as of 7:15 a.m.
Ten-year Treasury yields headed back toward 1.3% as the recent bond rally fizzled. An auction of 20-year debt fared poorly. Cash Treasuries won’t trade in Asia due to the Japan holiday. Australia’s and New Zealand’s 10-year yields jumped.
Oil steadied after jumping the most since mid-April. In Asia, traders are monitoring the tribulations of China Evergrande Group. Four banks suspended some mortgages to buyers of its unfinished residential properties in Hong Kong, the latest sign of dwindling confidence in the developer’s financial strength.
Earnings Post Market Hours
Jubilant Foodworks Q1FY22 (Consolidated, QoQ)
Revenue down 14% at Rs 893.18 crore Vs Rs 1,037.85 crore
Net profit down 35% at Rs 69.51 crore Vs Rs 105.41 crore
Ebitda down 15% at Rs 212.27 crore Vs Rs 250.54 crore
Margin at 23.77% Vs 24.14%
Opened 29 new stores despite on-ground disruption caused by second-wave of Covid-19
Havells India Q1FY22 (Consolidated, QoQ)
Revenue down 22% at Rs 2,609.97 crore Vs Rs 3,339.21 crore
Net profit down 22% at Rs 235.78 crore Vs Rs 303.83 crore
Ebitda down 30% at Rs 355.31 crore Vs Rs 508.18 crore
Margin at 13.6% Vs 15.2%
Net cash at Rs 1,278 crore Vs Rs 1,438 crore
Total debt at Rs 484 crore Vs Rs 493 crore
Demand scenario remains resilient though there are local disruptions owing to lockdowns or scattered market timings
Sales were impacted by second Covid wave
Inflationary trend in the commodity continues, price increase being effected with a time lag
Gland Pharma Q1FY22 (Consolidated, QoQ)
Revenue up 30% at Rs 1,153.90 crore Vs Rs 887.70 crore
Net profit up 35% at Rs 350.60 crore Vs Rs 260.40 crore
Ebitda up 33% at Rs 436.30 crore Vs Rs 327.60 crore
Margin at 37.8% Vs 36.9%
Supreme Industries Q1FY22 (Consolidated, QoQ)
Revenue down 36% at Rs 1,342.08 crore Vs Rs 2,084.59 crore
Net profit down 62% at Rs 170.16 crore Vs Rs 450.38 crore
Ebitda down 56% at Rs 222.01 crore Vs Rs 509.74 crore
Margin at 16.54% Vs 24.50%
CEAT Q1FY22 (Consolidated, QoQ)
Revenue down 17% at Rs 1,906.39 crore Vs Rs 2,289.72 crore
Net profit down 84% at Rs 23.98 crore Vs Rs 152.80 crore
Ebitda down 36% at Rs 166.15 crore Vs Rs 260.84 crore
Margin at 8.7% Vs 11.4%
ICICI Prudential Life Insurance Company Q1FY22 (Consolidated, QoQ)
Revenue down 15% at Rs 16,724.05 crore Vs 19,638.53 crore (Bloomberg Estimate: Rs 12,642.67 crore)
Post tax net loss of Rs 185.29 crore Vs Net profit of Rs 62.51 crore (Bloomberg Estimate: Rs 291.76 crore Profit)
Ebitda loss of Rs 215.36 crore Vs Ebitda gain of Rs 112.4 crore (Bloomberg Estimate: Rs 427 crore)
Net premium income down 44% at Rs 6,601.85 crore Vs Rs 11,879.28 crore
Net investment income up 29% at Rs 9,210.27 crore Vs Rs 7,142.77 crore
Asset under management up 31% at Rs 2.23 lakh crore (YoY)
Value of new business up 78.1% at Rs 358 crore (YoY)
VNB margin expanded to 29.4% from 24.4% (YoY)
13th month persistency ratio improved to 87.6%
Solvency ratio for the quarter ended June is 193.7% compared with 216.8% in the three months through March
Bajaj Finserv Q1FY22 (Consolidated, QoQ)
Revenue down 9% at Rs 13,949.45 crore Vs Rs 15,386.88 crore
Net profit down 15% at Rs 832.77 crore Vs Rs 979.06 crore
Loan losses and provisions, including expected credit loss, was Rs 1,750 crore Vs Rs 1,690 crore a year earlier.
Expects credit costs for FY2022 to be in the range of Rs 4,200 crore to Rs 4,300 crore against Rs 5,969 crore in FY21.
After a brief recovery in Q4FY21, economic conditions worsened in Q1FY22 as the second wave of Covid spread across the country accompanied by localised lockdowns in many states, the company said.
Sales of consumer durables and motor vehicles were affected in many states and, consequently, risk levels remained elevated in the quarter.
TV18 Broadcast Q1FY22 (Consolidated, QoQ)
Revenue down 14% at Rs 1,154.98 crore Vs Rs 1,347.94 crore
Net profit down 40% at Rs 99.69 crore Vs Rs 165.88 crore
Ebitda down 33% at Rs 187.52 crore Vs Rs 278.56 crore
Margin at 16.2% Vs 20.7%
Stocks To Watch
Bharti Airtel: Announced a collaboration with Intel for 5G network development by leveraging virtualised radio access network and open radio access network technologies. The collaboration is part of Airtel’s 5G roadmap for India. Airtel said it will deploy Intel’s latest 3rd gen “Xeon Scalable processors, FPGAs and eASICs, and Ethernet 800 series to build a solid foundation for rolling out wide-scale 5G, mobile edge computing and network slicing”.
Adani Ports and SEZ: To issue benchmark-sized USD-denominated senior notes with long 10-year and/or 20-year tenors. Note issue to repay existing indebtedness, for capital expenditures and for general corporate purposes in India and Sri Lanka. Further, Adani Ports whose renewable energy installation has been 20 MW as of FY21, aims to be carbon neutral by 2025. It also aims to ensure high growth and Ebitda margin, while maintaining investment grade ratings. The company reduced capex plans of FY21 to focus on maintaining adequate liquidity and conserving cash.
Bajaj Finserv: Bajaj Finance to buy 19.9% stake in Bajaj Finserv Direct Ltd. BFSD is a wholly-owned subsidiary of Bajaj Finserv. Bajaj Finance will invest Rs 284 crore and Bajaj Finserv will invest Rs 342 crore in BFSD during the transaction. BFSD is in the business of distribution of insurance products through digital marketplace. The investments would be in the form equity shares and/or convertible loan or security into equity shares.
IDFC: Reserve Bank of India has, vide its letter dated July 20, 2021, clarified that after the expiry of lock‐in period of 5 years, IDFC Limited can exit as the promoter of IDFC FIRST Bank Limited.
Wipro: To invest $1 billion in cloud technologies, capabilities, acquisitions and partnerships over the next three years. The IT company also launched Wipro FullStride Cloud Services, which will work with clients to better align business and IT with the cloud imperative. Wipro currently employs more than 79,000 cloud professionals.
Asian Paints: Demand outlook is positive, especially with the second wave of coronavirus waning, and a good monsoon forecast would further underpin sales from the rural sector, the company said. Diwali festival season is expected to help retail demand from September onward. The company is witnessing early signs of softening in prices of raw material prices, after an increase of 13%-15% in Q1. Further, it has taken another round of price increases effective July 1.
HCL Technologies: Launched HCL SoFy, the Cloud Native solution factory and HCL Now, a Cloud-Native-as-a-service offering. The two new additions will further enhance the company’s cloud offering.
Avenue Supermarts: The recovery in sales trend continues as authorities further ease restrictions in areas where Covid-19 infections have declined, the company said.
Infosys: Infosys Public Services, a U.S.-based subsidiary of the company, has launched blockchain network to modernise public recordkeeping for County of Riverside in California. The pilot blockchain initiative will digitise access and improve the efficiency and security of vital recordkeeping in the County, the company said.
3i Infotech: Elegon Infotech, a wholly-owned subsidiary in Chengdu in China’s Sichuan province has been liquidated voluntarily. The Chinese unit was not a material subsidiary of the company and did not have any business activity.
Bajaj Hindusthan Sugar: Allotted 14.38 crore shares at Rs 13.28 per share on preferential basis aggregating to Rs 190 crore by way of conversion of existing outstanding unsecured loan, extended by the promoters as a part of promoters contribution to the Restructuring Package approved by the Joint Lenders Forum.
Granules India: Granules Pharmaceuticals Inc., a Virginia-based wholly-owned subsidiary of the company has cleared U.S. Food and Drug Administration’s audit. GPI had undergone a pre-approval inspection audit by the FDA from June 21 to June 25.
Cadila Healthcare: Received tentative approval from the U.S. Food and Drug Administration to market Ibrutinib Tablets. Ibrutinib belongs to a class of drugs known as kinase inhibitors and is used to treat certain cancers. The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad.
JTL Infra: Board to consider stock split and fund-raising proposals on August 7.
Earnings: Hindustan Unilever, Bajaj Auto, Hindustan Zinc, Ultratech Cement, Biocon, Bajaj Holdings & Investment, ICICI Lombard General Insurance Company, Mphasis, Indian Energy Exchange, Persistent Systems, IndiaMART InterMESH, Sterlite Technologies, Wockhardt, Can Fin Homes, CSB Bank, Heidelbergcement India, Bank of Maharashtra, IIFL Securities, Agro Tech Foods, Chennai Petroleum Corporation, India Pesticides, Oriental Aromatics, Music Broadcast, Saregama India, Sahyadri Industries, Shiva Cement, South Indian Bank, Vimta Labs
Pledge Share Details
Adani Power: Promoter group (Gautam Adani and Rajesh Adani) revoked pledge of 3.55 crore shares on July 17.
JSW Energy: Promoter Siddheshwari Tradex revoked pledge of 1.10 crore shares on July 19.
Zuari Agro Chemicals: Promoters (Zuari Global and Zuari Management Services) revoked pledge of 46 lakh shares between July 15-16.
As reported on July 20.
Just Dial: Reliance Retail Ventures bought 1.30 crore shares (20.97%) at Rs 1,020 per share. Promoter Venkatachalam Subramani sold 1.30 crore shares (20.97%) at Rs 1,020 per share.
Kirloskar Industries: India Capital Management sold 48,739 shares (0.50%) at Rs 1,701.29 per share.
Move Into Short-Term ASM Framework: RPSG Ventures, Gravita India, Welspun India
Move Out Of Short-Term ASM Framework: Centum Electronics
Move Into ASM Framework: Anjani Portland Cement, BSE, Indiabulls Real Estate, Jain Irrigation Systems, Pearl Global Industries, Mukand, Himatsingka Seide
Record Date Final Dividend: HEG, KEC International
Record Date Bonus Issue: Sadhana Nitrochem
Price Band Revised From 10% To 5%: Ajmera Realty & Infra India, Central Depository Services
Price Band Revised From 20% To 10%: Pearl Global Industries
Money Market Update
The rupee ended at 74.61 against the U.S. Dollar on Tuesday as compared to Monday's closing of 74.87.
Nifty July futures ended at 15,630; a discount of 2.1 points.
Nifty July futures added 4.08% and 7,412 shares in Open Interest
Nifty Bank July futures ended at 34,485.25; a premium of 69.8 points
Nifty Bank July futures added 8.32% and 7,094 shares in Open Interest
Securities that continue to be in ban list: Indiabulls Housing Finance, NMDC, Sun TV, Cadila Healthcare, Nalco
Securities added to the ban list: Canara Bank
Securities removed from the ban list: PNB, SAIL