All You Need To Know Going Into Trade On June 11

Stocks To Watch

• ICICI Bank: Bloomberg News reports that Apollo global management is seeking to start its own credit investment business in India. The U.S.-based Alternative Asset Manager plans to end a joint venture with the bank. It plans to stop putting new money into Aion Capital Partners and exit the investment over the next few years. Apollo Global has informed the bank of its intentions. Aion has assets under management of $660 million of March 31 and offered a net internal rate of return of 5%.
• NTPC: Approved deferment of capacity charges of Rs 2,064 crore to discoms, to be payable without interest after the end of the lockdown period in three equal monthly installments. Board also approved rebate of Rs 1,363 crore on the capacity charges billed during the lockdown period to discoms on account of Covid-19, in FY21.
• Pharma Stocks: Bloomberg News reports that a coalition of 51 attorney generals in the U.S. filed an antitrust complaint in the federal court alleging that key individual executives and manufacturers of dermatological, generic drugs engaged in a widespread conspiracy to artificially inflate and manipulate prices, reduce competition for generic drugs sold across the country. The complain mentions Taro, Myla, Teva, Glenmark etc.
• UPL: The company’s Mauritius arm has raised $500 million via unsecured notes. The issuance does not result in any increase of in net debt of the company.
• Oil India: Two employees died due to a blowout well catching fire on June 9. Currently fire tenders are trying to reduce the fire outbreak.
• Telecom Stocks: Bloomberg News reports that Supreme Court to heat telecom dues case on June 11.
• NBCC: Supreme Court has ordered for restructuring of loans of home buyers in the Amrapali case. Directing the banks and financial institutions to release loans to home buyers, whose loans have been sanctioned, notwithstanding the fact that their accounts are declared as NPAs. Court said that the order may be released stage-wise and long-term restructuring of the loans may be done so that construction is completed and buyers are able to repay the loan.
• Yes Bank: Has applied to the exchanges for re-classification of promoters in context of the reconstruction scheme.
• Max India: WF Asian Reconnaissance Fund increased stake from 7.46% to 9.71% on June 8.
• Adani Green Energy: Promoter Adani Trading Services released pledge of 1.6 crore shares on June 8.
• Manappuram Finance: To meet Geosphere Capital on June 11.
• Welspun Enterprises: Received endorsement agreement from NHAI for Haryana road project. Process of takeover of 8 laning in NH-1 has been completed.
• Satin Creditcare Network: To consider raising Rs 5,000 crore via NCDs on June 15.
• Non-Nifty Earnings Today: Westlife Development, Dixon Technologies, Sundram Fasteners, EID Parry, IIFL Wealth, Redington India, KNR Constructions, Take Solutions.

Companies On Covid-19 Impact

Bharat Electronics

• Confident of coping up with production gaps.
• Sales in FY20 stood at Rs 12,500 as against the guidance of Rs 13,000 crore.
• Orders were complete but customers could not inspect some items and some dispatches could not be made in the last week of March.
• Profitability to be impacted in Q1FY21.

Shriram Transport Finance

• Disbursements are badly affected.
• New vehicle sales transactions needing personal interactions have just begun from June.
• Repayment schedule of the Term loans as also the residual tenor of the term loans have been shifted across the board by another three months after the moratorium period.
• In case of revolving working capital credit facilities in the form of floating business loans, vehicle trade advance loans to dealers and working capital loans to borrowers (fuel, toll loans etc.), the borrowers will be allowed deferment of another three months on payment of interest in respect of such facilities during the period June 1 to August 31.
• The accumulated interest for the period March 1 to August 31 will be converted into a funded interest term loan and the said funded term loan on account of accumulated interest will be repayable by March 31,2021.

Raymond

• Primary sales impacted in the second half of March.
• Inventory correction in MBO channel of branded apparel continued in March due to higher channel inventory.
• 65% of the stores have re-opened.
• Suiting and shirting fabric manufacturing plant continue to remain shut due to subdued demand.
• Garmenting facilities and engineering business have partially resumed operations.

Earnings Reported After Market Hours

Shriram Transport Finance Q4FY20

• Net Interest Income up 1% to Rs 1,933.3 crore
• Net profit down 70.1% to Rs 223.4 crore
• Impairment for financial instruments at Rs 1,128.7 crore
• Covid-19 related provisions at Rs 909.6 crore
• Assets Under Management up 5% to Rs 1.1 lakh crore
• Net Interest Margin at 6.76% from 7.23%
• All numbers are standalone and compared on a year-on-year basis

Century Textiles Q4FY20

• Revenue down 16.3% to Rs 786.2 crore
• Net profit down 32.1% to Rs 82.1 crore
• Ebitda down 66.4% to Rs 74.5 crore
• Ebitda margin narrows to 9.48% from 23.6%
• Higher raw material costs, employee and other expenses impact margins
• Deferred tax reversal of Rs 73.7 crore
• Textile segment revenue up 5% to Rs 185.1 crore
• Pulp and Paper segment revenue down 13% to Rs 541.7 crore
• Sales volume down 4.4% to 4.15 lakh MT
• Paper and board vertical see higher export volumes
• All numbers are consolidated and compared on a year-on-year basis

Indian Hotels Q4FY20

• Revenue down 14.6% to Rs 1,063 crore
• Net profit down 35.4% to Rs 74.3 crore
• Ebitda down 26.9% to Rs 207.9 crore
• Ebitda margin narrows to 19.6% from 22.8%
• All numbers are consolidated and compared on a year-on-year basis

Shankara Building Products Q4FY20

• Revenue up 11.6% to Rs 667.3 crore
• Net profit up 7.1 times to Rs 11.3 crore
• Ebitda up 75.5% to Rs 27.2 crore
• Ebitda margins at 4.1% from 2.6%
• Lower raw material costs aid margins
• Retail revenue up 4% to Rs 365.1 crore
• Channel and Enterprise segment revenue up 23% to Rs 302.2 crore
• Volume growth of 14% during the quarter
• All numbers are consolidated and compared on a year-on-year basis

Mahanagar Gas Q4FY20

• Revenue down 5% to Rs 753 crore
• Ebitda up 14% to Rs 244 crore
• Ebitda margin at 32.4% from 27%
• Net profit up 25.6% to Rs 167 crore
• Overall volumes down 9.7% to 253.39 SCM Million
• CNG volumes down 12% to 180.17 SCM Million
• PNG volumes down 3.8% to 73.22 SCM Million
• Recommends final dividend of Rs 10.5 and a special dividend of Rs 15 per share having a face value of Rs 10
• All numbers other than volumes are compared on a year-on-year basis while volumes are compared on a sequential basis

Bulk Deals

• Ramco Systems: Vijay Kedia acquired 3.4 lakh shares (1.11%) at Rs 87.82 per share.
• RBL Bank: Jasmine Capital Investments acquired 1.67 crore shares (3.29%) at Rs 150.47 per share.

Trading Tweaks

• Price Band Revised From 10% To 5%: MT Educare, Network18 Media & Investments, Muthoot Capital Services, The State Trading Corporation of India.
• Price Band Revised From 20% To 10%: Dishman Carbogen Amcis, Xelpmoc Design And Tech.
• Move Into ASM Framework: Hubtown, MIRC Electronics, Sundaram Multi Pap, Zee Media Corporation, Alok Industries, Ruchi Soya, Videocon Industries.
• Move Into Short-Term ASM Framework: Birla Precision Tech, Aavas Financiers, MT Educare, Capacite Infra, Apex Frozen Foods, HFCL, SMS Pharma, Shree Renuka Sugars, SpiceJet, Sundaram Brake Linings.
• Move Out Of Short-Term ASM Framework: Swaraj Engines, Majestic Auto.

Insider Trading

• IndusInd Bank: Promoter Indusind International Holdings acquired 5 lakh shares between June 8-9
• Quess Corp: Promoter Ajit Isaac acquired 17,678 shares on June 9
• Varun Beverages: Promoter Vivek Gupta sold 2,881 shares on June 9

(As Reported On June 10)

Money Market Update

• The rupee gave up most of its intraday gains to end little changed at 75.60 against the U.S. Dollar as compared to Tuesday's close of 75.62.
• The currency was the third worst performer in Asia behind the Indonesian Rupiah and the Hong Kong Dollar.

Index Futures

• Nifty June futures closed at 10,119; premium of 3 points from discount of 12 points
• Nifty June futures shed 0.1% and 13,900 shares in Open Interest
• Nifty Bank June futures closed at 21,119; discount narrows to 19 points from 47 points
• Nifty Bank June futures add 1.9% and 31,900 shares in Open Interest
• Nifty Put-Call Ratio at 1.35 from 1.20 across all series
• Enter F&O Ban: BHEL, PVR
• Stocks In F&O Ban: BHEL, Vodafone Idea, JSPL, Just Dial, NCC, PVR.

Nifty Weekly Expiry: June 11

• Maximum Open Interest on Call side at 10,500 strike (34.3 lakh shares)
• Maximum Open Interest on Put side at 9,800 strike (22 lakh shares)
• Active Options: 10,000 Put (+9 lakh shares), 10,100 Call (+9.6 lakh shares)

Nifty Monthly Expiry: June 25

• Maximum Open Interest on Call side at 10,500 strike (19.2 lakh shares)
• Maximum Open Interest on Put side at 9,000 strike (36 lakh shares)