All You Need To Know Going Into Trade On July 27
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
Asian stocks made modest gains early Tuesday as traders assessed steep losses in Chinese stocks sparked by Beijing’s sweeping regulatory overhaul as well as another record close on Wall Street.
Shares rose in Japan, Australia and South Korea. U.S stock futures were little changed after the S&P 500 hit a new peak, with Tesla Inc. the latest firm to post better-than-expected results. The Nasdaq 100 and Dow Jones Industrial Average also ended at all-time highs.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.27% at 15,863.50 as of 7 a.m.
The Nasdaq Golden Dragon China Index -- which tracks 98 of China’s biggest firms listed in the U.S. -- suffered its largest two-day drop since 2008, hurt by China’s clampdown on sectors ranging from technology to education and real estate as Xi Jinping’s Communist Party tightens its grip on the economy.
Treasuries were steady and the dollar dipped ahead of this week’s Federal Reserve policy meeting, where officials are expected to discuss an eventual tapering of stimulus.
Elsewhere, Bitcoin pared gains to trade above $37,000 after briefly topping $40,000. Crude oil was steady as investors considered the possible impact of the delta strain and mobility curbs on demand.
Earnings Post Market Hours
Axis Bank Q1FY22
Net profit up 94% at Rs 2,160 crore Vs Rs 1,112 crore (YoY) (Bloomberg Estimate: 2,442 crore)
NII 11% at Rs 7,760 crore Vs Rs 6,985 crore (YoY) (Bloomberg Estimate: 7,788 crore)
GNPA at 3.85% vs 3.7% (QoQ)
NNPA at 1.2% vs 1.05% (QoQ)
Restructured loans worth Rs 2,124 crore under RBI's one-time restructuring scheme
Retail loans worth Rs 504 crore and corporate loans worth Rs 1620.5 crore restructured
The bank holds provisions worth Rs 440 crore against these loans
Loans worth Rs 719 crore approved for restructuring under RBI's extended one time scheme
Retail loan book stood at Rs 3.3 lakh crore, up 14% year-on-year
Corporate advances rose 8% year-on-year to Rs 2.25 lakh crore
L&T Q1FY22 (Consolidated, QoQ)
Revenue down 39% at Rs 29,334.73 crore Vs Rs 48,087.90 crore (Bloomberg Estimate: Rs 29,329.74 crore)
Net profit down 64% at Rs 1,174.44 crore Vs Rs 3,292.81 crore (Bloomberg Estimate: Rs 1,503.43 crore)
Ebitda down 50% at Rs 3,171.49 crore Vs Rs 6,388.93 crore (Rs 3,325.22 crore)
Margins at 10.8% Vs 13.3%
Bagged orders worth Rs 26,557 crore at the group level
International orders at Rs 9,045 crore
Order book stood at Rs 3.23 lakh crore as of June 30
Optimistic of its growth aspirations in the medium term as the economic outlook improves
Tata Motors Q1FY22 (Consolidated, QoQ)
Revenue down 25.07% at Rs 66,406.45 crore Vs Rs 88,627.90 crore
Net loss at Rs 4,450.92 crore Vs Rs 7,605.40 crore
Ebitda down 61% at Rs 5,242.67 crore Vs Rs 13,373.73 crore
Margins at 7.9% Vs 15.1%
Second Covid wave in India along with the supply issues, slowed down the growth momentum as compared to Q4
EV delivered 5x revenue growth and highest quarterly sales at 1,715 units
JLR retail sales stood at 124,537 vehicles
Shortage of semiconductor supplies constrained production resulting in a pre-tax loss of £110 million
Demand remains strong for JLR and India passenger vehicle
Commercial vehicle demand is showing gradual improvement
Semiconductor issues, commodity inflation and pandemic uncertainty to have an impact in the short term
Expects the performance to improve progressively from second half of the financial year
Jindal Stainless Q1FY22 (Consolidated, QoQ)
Revenue up 3% at Rs 4,032.72 crore Vs Rs 3,913.64 crore
Net profit up 5% at Rs 302.77 crore Vs Rs 289.19 crore
Ebitda up 11% at Rs 601.03 crore Vs Rs 542.22 crore
Margins at 14.9% Vs 13.9%
DLF Q1FY22 (Consolidated, QoQ)
Revenue down 33% at Rs 1,139.53 crore Vs Rs 1,712.57 crore
Net profit down 30% at Rs 337.10 crore Vs Rs 480.94 crore
Ebitda down 13% at Rs 395.44 crore Vs Rs 453.86 crore
Margins at 34.7% Vs 26.5%
Recommended a dividend of Rs 2 per share
GlaxoSmithKline Pharmaceuticals Q1FY22 (Consolidated, QoQ)
Revenue down 3% at Rs 789.99 crore Vs Rs 813.75 crore
Net profit up 7.45 times at Rs 121.08 crore Vs Rs 14.33 crore
Ebitda down 11% at Rs 151.67 crore Vs Rs 170.89 crore
Margins down 19.2% Vs 21%
Sun Pharma Advanced Research Q1FY22 (QoQ)
Revenue down 22% at Rs 21.99 crore Vs 28.06 crore
Net loss of Rs 61.37 crore Vs Rs 56.72 crore
Ebitda loss at Rs 54.27 crore Vs Rs 50.43 crore
KPIT Technologies Q1FY22 (Consolidated, QoQ)
Revenue up 5% at Rs 567.30 crore Vs Rs 540.30 crore
Net profit up 15% at Rs 60.20 crore Vs Rs 52.40 crore
Ebitda up 12% at Rs 98 crore Vs Rs 87.5 crore
Margins at 17.3% Vs 16.2%
Stocks To Watch
Vedanta: Board has approved the expansion of Balco aluminium smelter in Chhattisgarh by 414 KTPA a year at a cost of Rs 6,611 crore. The company will also set up a new carbon facility at Jharsuguda for about Rs 635 crore. Further the company approved sale of shares held in its wholly-owned subsidiaries Sterlite Ports and Paradip Multi Cargo Berth to Sesa Resources in a move to consolidate activities of certain units. Following the share sale, seen completing by July 31, the two units would become the step-down subsidiaries of Vedanta. Company to receive Rs 16.23 crore from Sterlite Ports sale, and Re 1 from Paradip Multi Cargo Berth disposal. The company’s board also gave nod to acquire 26% equity of Facor Power and merging it into Ferro Alloys Corporation. The deal is expected to be completed by August 7.
Housing and Urban Development Corporation: Government to sell up to 8% of the company's equity through an Offer for Sale. The initial plan is for the sale of 11.01 crore shares or 5.5% of the total equity with a green shoe option to sell another 5 crore shares or 2.5% of the total equity. The floor price of Rs 45 per equity share is at a discount of 5.26% to Monday's closing price. The OFS opens for non-retail Investors today and for retail investors tomorrow. 5% of the offer size to be reserved for eligible employees of the company.
Bajaj Auto: Pierer Industrie and PTW Holding reach agreement in principle with Bajaj Auto and its wholly-owned subsidiary Bajaj Auto International Holdings BV to contribute BAIHBV’s 46.5% stake in KTM to Pierer Mobility. Pierer Mobility to carry out a capital increase through contribution in kind from the existing authorized capital of the company under exclusion of subscription rights by up to 50% of the existing share capital. After completion of the transaction, the shareholding of Pierer Mobility in the operating KTM will increase from currently about 51.7% to about 98.2%. Pierer Group will continue to maintain sole control over Pierer Mobility.
IRB Infrastructure Developers: IRB Infrastructure Trust – Private InvIT has raised Rs 381.63 crore via Rights Issue. The company being the sponsor and 51% unitholder of the Private InvIT, invested Rs 194.63 crore and GIC Affiliates holding 49% units have invested Rs 187 crore. The company will continue to hold 51% units and GIC affiliates will continue to hold 49% units in the IRB Infrastructure Trust.
Biocon: U.S.-based Adagio Therapeutics Inc. has granted an exclusive license to Biocon Biologics, a subsidiary of Biocon, to manufacture and sell an anti-body treatment for Covid based on ADG20 for India and some emerging markets. Initial data indicate that ADG20 could provide both rapid and durable protection against Covid-19 for up to one year, the company said.
GlaxoSmithKline Pharmaceuticals: The company approved transfer of the trademarks on Iodex and Ostocalcium brands in India along with legal, commercial and marketing rights to GlaxoSmithKline Asia with values aggregating to Rs 1,649.01 crore. Glaxo Group had transferred the legal title and some rights on Iodex and Ostocalcium brands in India to the company. GSK Pharma also approved acquisition of assets and liabilities associated with the vaccines business of GSK Asia for Rs 1.66 crore.
Jindal Stainless: Board has approved a brownfield expansion plan for JSL in Jajpur. The expansion will cost company Rs 2,150 crore. The company will expand steel melting capacity from existing 1.10 million tonnes per annum to 2.10 MTPA – at an estimated capex of Rs 530 crore. The proposed capacity will be added by Q3FY23. Further the company will enhance Hot Rolled Annealed Pickled and Cold Rolled Annealed Pickled capacities from 0.8 MTPA and 0.45 MTPA to 1.25 MTPA and 0.75 MTPA respectively at an estimated capex of Rs 1,250 crore. Proposed expansion to be completed by Q4FY23. The company will also expand Ferro chrome capacity – from 0.25 MTPA to 0.35 MTPA to scale up backward integration and cost efficiency at an estimated capex of Rs 315 crore. Estimated completion by Q3FY24.
Equitas Holdings: The board has approved merger with Equitas Small Finance Bank. The plan involves “dissolution without winding-up” of Equitas Holdings after its merger with ESFB. The merger, effective November 1 if all approvals are received, is to comply with an RBI directive for promoter Equitas Holdings to reduce its stake in the small finance bank to below 40%. ESFB will issue 226 shares to the holding company’s shareholders for every 100 they held.
Rico Auto Industries: Board approved the merger of wholly-owned subsidiary companies, Rasa Autocom, Rico Aluminium and Ferrous Auto Components, and Rico Investments, with the company. Further, Rico Jinfei Wheels, a step-down subsidiary of the company, approved merger of Rico Castings with itself. The schemes are subject to necessary statutory and regulatory approvals including the approvals of NCLT, the shareholders and creditors of each of the companies.
IDFC First Bank: To consider raising funds in July 31 meeting.
Welspun Enterprises: Approved raising of funds through private placement of securities.
Minda Industries: Approved raising up to Rs 700 crore through Issue of securities.
Vinati Organics: Temporarily halted operations at the manufacturing unit in Mahad due to flooding caused by persistent rains in the entire Raigad district in Maharashtra.
Earnings: Dr.Reddy's Laboratories, IndusInd Bank, Dalmia Bharat, InterGlobe Aviation, Torrent Pharmaceuticals, Canara Bank, Dixon Technologies (India), Aarti Drugs, The Ramco Cements, Sanofi India, Granules India, Lux Industries, Godawari Power & Ispat, IIFL Finance, TTK Prestige, Karnataka Bank, UCO Bank, Mahindra Logistics, The Anup Engineering, Apar Industries, Bhageria Industries, BLS International Services, Confidence Petroleum India, EIH Associated Hotels, Elantas Beck India, Filatex India, Foseco India, GM Breweries, Greenlam Industries, KPR Mill, Morepen Laboratories, Ramco Industries, Sharda Cropchem, Snowman Logistics, Tips Industries, VST Industries
Offerings
Glenmark Life Sciences IPO at Rs 695-720/share opens for sale; offer close July 29; raises Rs 454 crore by allotting 6.31 million shares at Rs 720 each to 19 anchor investors
9:15am: Government offers for sale 5.5%, or ~110.1 million shares, in Housing & Urban Development Corp. with an option to sell additional 2.5%, or ~50.1 million shares, at minimum price of Rs 45 each to non-retail investors open; offer for retail investors opens Wednesday
Cartrade Tech gets SEBI approval for Rs 2,000 crore IPO
India’s ESAF Small Finance Bank seeks approval for Rs 998 crore IPO
Rolex Rings IPO price band set at Rs 880-900/share; offer open July 28-30
Pledge Share Details
Kalpataru Power Transmission: Promoter Kalpataru Properties revoked pledge of 5 lakh shares on July 22.
Wockhardt: Promoter Themisto Trustee Company revoked pledge of 1 lakh shares on July 20.
Zuari Agro Chemicals: Promoter Zuari Global created a pledge of 10 lakh shares on July 22.
As reported on July 26.
Bulk Deals
Aurionpro Solutions: Promoter Paresh Zaveri bought 2.25 lakh shares (0.99%) at Rs 229.27 per share. Promoter Niharika Zaveri sold 1.50 lakh shares (0.66%) at Rs 229 per share.
Himadri Speciality Chemical: BC India Investments sold 50 lakh shares (1.19%) at Rs 52.75 per share.
Matrimony.com: Hill Fort India Fund LP bought 2.03 lakh shares (0.89%) at Rs 1,110.31 per share and bought another 2.36 lakh shares (1.03%) at Rs 1,110.67 per share.
Indiabulls Housing Finance: Societe Generale sold 33.26 lakh shares (0.72%) at Rs 289.33 per share.
Who’s Meeting Whom
Indian Energy Exchange: To meet William Blair on July 27 and Alliance Bernstein on July 28.
Gland Pharma: To meet Fidelity International on July 27.
Trading Tweaks
Ex-Date Final Dividend: JSW Energy, Bayer Cropscience, Cholamandalam Financial Holdings, EPL, Gabriel India, Lupin, Nilkamal, Pidilite Industries, Transport Corporation Of India
Ex-Date Interim Dividend: HCL Technologies
Ex-Date Dividend: Wheels India
Ex-Date AGM: Renaissance Global, Oracle Financial Services Software, Welspun India
Record Date Stock Split: Evexia Lifecare, Tide Water Oil (India)
Record Date Bonus Issue: Tide Water Oil (India)
Price Band Revised From 10% To 5%: Sadbhav Infrastructure Project
Move Into Short-Term ASM Framework: Jindal Stainless
Move Out Of Short-Term ASM Framework: Gayatri Projects
Move Into ASM Framework: JSW Energy
Money Market Update
India’s rupee may open higher on potential higher foreign inflows and a weaker dollar. Bonds may come under pressure amid higher crude oil prices.
Bond traders will also focus on Rs 7,000 crore ($940m) of state debt sales Tuesday
Global funds bought Rs 33 crore of sovereign bonds under limits available to foreign investors, and added Rs 17 crore of corporate debt
USD/INR little changed at 74.4187 on Monday
Implied opening from forwards suggest spot may start trading around 74.37
Yield on 6.1% 2031 bond up 1bp at 6.17% on Monday; 5.63% 2026 bond yield down steady at 5.68%
F&O Cues
Nifty July futures ended at 15,818.00, a discount of 6.45 points
Nifty July futures shed 5.86% and 9,745 shares in Open Interest
Nifty Bank July futures ended at 34,959.15, a premium of 9.45 points
Nifty Bank July futures shed 8.90% and 5,3222 shares in Open Interest
Securities added to the ban list: SAIL
Securities that continue to be on ban list: Canara Bank, Vodafone Idea, Nalco
Securities removed from the ban list: Cadila Healthcare, Sun TV
