All You Need To Know Going Into Trade On November 3

Earnings Fineprint: NTPC Q2FY21

• Revenue up 8.4% to Rs 24,677.1 crore
• Net profit up 7.4% to Rs 3,504.8 crore
• Ebitda up 13.2% to Rs 7,183.3 crore
• Ebitda margin at 29.1% from 27.9%
• Bottomline boosted by higher other income
• All numbers are standalone and compared on a year-on-year basis

Stocks To Watch

• NTPC: Announces buyback of shares worth Rs 2,275.7 crore. Board to buyback 19.79 crore shares or 2% of the total equity. Buyback price of Rs 115 per share is a 28.9% premium to Monday's closing. Record date set as November 13. Board approves extension of Gurdeep Singh as chairman and managing director till July 2025.
• Tata Motors: Domestic sales up 27% to 49,669 units in October.
• Sterlite Tech: To acquire 100% stake in Italy’s Optotec for 29 million euros. The target company belongs to the optical telecommunications industry. The transaction is expected to be completed by end of the calendar year 2020.
• Delta Corp: Casino operations to resume in Goa with immediate effect, in accordance with guidelines prescribed by the government.
• ICICI Lombard: Competition Commission of India approves acquisition of general insurance business of Bharti Axa.
• Supreme Petrochem: To establish a new line for production of polystyrene which may enhance the production capacity by 80,000 TPA. To also revamp EPS plant which will increase capacity 20,000 TPA. Expansion likely to be completed by December 2021 at a cost of Rs 250 crore. Funding will be done through internal accruals.
• Hindalco: Bloomberg News reports that the company has emerged as the preferred bidder for Chakla coal block in the first round of commercial coal mining auctions.
• NCC: Gets orders worth Rs 833 crore from mining division of Coal India's arm.
• Adani Enterprises: Commenced Lucknow International Airport operations.
• National Fertilisers: Bentonite Sulphur sale up 3.37 times to 11,730 MT, while SSP sales up 2.33 times at 14,726 MT during the April-October period. The company has registered growth in the sale of all non-urea fertilisers during FY21.
• Prism Johnson: Joint Venture Antique Marbonite to close one of its production lines with a 3 MSM per annum capacity due to an ageing, unviable plant. The closure of capacit will not have any impact on overall sales of the HRJ division.
• Shipping Corporation of India: To consider demerging non-core assets on November 6.
• Bandhan Bank: Board approved re-appointment of Chandra Shekhar Ghosh as managing director and chief executive officer of the Bank till July 2026. Application to RBI will be made.
• Nifty Earnings Today: Adani Ports & SEZ, Sun Pharma
• Non-Nifty Earnings Today: Ajanta Pharma, Dabur, Deepak Fertilisers, Godrej Properties, IIFL Finance, JSW Energy, Kansai Nerolac, Muthoot Finance, Prince Pipes, PVR, Varun Beverages

Earnings Reported After Market Hours

Zee Entertainment Q2FY21

• Revenue down 18.8% to Rs 1,722.7 crore
• Net profit down 77.2% to Rs 94.1 crore
• Ebitda down 57.2% to Rs 292.9 crore
• Ebitda margin at 17% from 32.2%
• Lower sales and higher ad, other expenses impact margins
• Exceptional loss of Rs 97 crore this quarter as provisions against receivables from Siti Networks
• Advertising revenue down 26%
• Subscription revenue up 10.6%
• All numbers are consolidated and compared on a year-on-year basis

Cadila Healthcare Q2FY21

• Revenue up 13.4% to Rs 3,820 crore
• Net profit up 4.4 times to Rs 473.4 crore
• Ebitda up 35.8% to Rs 863.4 crore
• Ebitda margin at 22.6% from 18.9%
• Exceptional loss of Rs 132 crore due to premium on NCDs upon their purchase by the group
• Exceptional loss of Rs 278 crore in base quarter
• India business revenue up 11% to Rs 1,583 crore
• U.S. business revenue up 18% to Rs 1,709 crore
• Reduced net debt by Rs 2,709 crore in H1FY21
• Total net debt as on September 30, 2020 at Rs 4,031 crore
• All numbers are consolidated and compared on a year-on-year basis

Embassy Office Parks REIT Q2FY21

• Revenue up 3.8% to Rs 540.2 crore
• Net profit flat at Rs 232.6 crore
• Ebitda up 11.9% to Rs 449.8 crore
• Ebitda margin at 83.3% from 77.2%
• Lower operating and maintenance costs improve margins
• Declares distribution of Rs 5.5 per unit for the quarter, worth Rs 424.4 crore
• All numbers are consolidated and compared on a year-on-year basis.

Brokerage Radar

JPMorgan On Escorts

• Overweight rating maintained
• Price target raised to Rs 1,560 from Rs 1,450
• Farm business volumes and margins on a high
• Outlook for the tractor industry is positive
• Possibility of higher dividend payouts ahead given net cash balance sheet and strong cash generation
• Railways business getting back on track, construction may take some time
• Raise FY21/22/23 estimates by 24%, 10% and 2% respectively
• Escorts is a key overweight in the auto space

CLSA On HDFC

• Outperform rating maintained
• Price target raised to Rs 2,300 from Rs 2,100
• Strong NII performance and core mortgage PPoP growth
• Meaningful recovery in disbursements
• Retail collections jump to 96.3% but some uncertainty remains for its builder book
• Expect core RoE of 12% by FY23CL

UBS On HDFC

• Buy rating maintained
• Price target of Rs 2,250
• Strong recovery in the retail business
• EPS beat supported by lower credit costs and funding costs
• Has enough provisions and therefore credit costs can be closer to normal going forward
• Mortgage growth likely to remain healthy and large financiers can gain market share
• Better placed than peers on asset quality
• Surplus liquidity to support spreads

CLSA On Ramco Cements

• Upgrade to underperform from sell
• Price target raised to Rs 805 from Rs 685
• Q2 Ebitda above consensus estimates
• Growth driven by healthy mix of both regions and products
• Profitability may trend down as volumes pick up and mix normalises
• Upside, following initial reaction will be capped due to premium valuation
• Raise FY21-23CL Ebitda estimates by 11-19% on better profitability

CLSA On Zee Entertainment

• Buy rating maintained
• Price target of Rs 280
• Revenue growth led by ad revenue recovery
• Growth to return in H2FY21
• Expansion in working capital, rise in debtor days in-line with industry norms
• Will emerge stronger post Covid-19
• Stock offers deep value at current levels

CLSA On Cadila Healthcare

• Buy rating maintained
• Price target raised to Rs 540 from Rs 525
• R&D initiatives expected to drive long-term growth
• Seasonally strong U.S. business, improving profitability in India should drive margins in the near-term
• Strong innovation pipeline being built
• Raise FY21-23 EPS estimates by 3-8%
• Success in several new initiatives can pose upside risks to estimates

Pledged Share Details

• Adani Ports and SEZ: Promoter SB Adani Family Trust created pledge of 15.51 crore shares on October 29.
• Adani Transmission: Promoter SB Adani Family Trust created pledge 6.64 crore shares on October 29.
• Adani Green Energy: Promoter SB Adani Family Trust created pledge 91.28 lakh shares on October 29.

(As Reported On November 2)

Who’s Meeting Whom

• UPL: To meet HDFC AMC, Azim Premji Investments and other investors on November 3.
• Sudarshan Chemical: To meet Ashmore Investment Management and ICICI Prudential Mutual Fund between November 3-5.
• Syngene International: To meet Columbia Threadneedle Investments on November 3.

Bulk Deals

• Fortis Healthcare: WF Asian Smaller Companies Fund sold 80.5 lakh shares (1.07%) at Rs 125.67 per share.
• Premier Explosives: HDFC Mutual Fund sold 2 lakh shares (1.86%) at Rs 115 per share.

Trading Tweaks

• AGM: Gufic Biosciences.
• Price Band Revised From 10% To 5%: Oil Country Tubular, Route Mobile, Aarey Drugs & Pharma.
• Move Into ASM Framework: GE Power India, Bajaj Healthcare.
• Move Into Short Term ASM Framework: Raj Oil Mills.
• Move Out Of Short Term ASM Framework: Tejas Networks, Magma Fincorp, Websol Energy System.

Insider Trades

• HFCL: Promoter MN Ventures acquired 10 lakh shares on November 2

(As Reported On November 2)

Money Market Update

• The currency fell for the third straight day, ending at a two-month low of 74.44 against the U.S. Dollar as compared to Thursday's close of 74.11.
• It was the second worst performing currency in Asia on Monday.

F&O Cues

• Nifty November futures closed at 11,673; premium of 4 points from discount of 2 points
• Nifty November futures shed 9% and 9.8 lakh shares in Open Interest
• Nifty Bank November futures closed at 24,900; premium of 7 points from 39 points
• Nifty Bank November futures add 2% and 34,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.56

Nifty Weekly Expiry: November 5

• Maximum Open Interest on Call side at 12,500 strike (25.5 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (19.8 lakh shares)
• Active Options: 11,300 Put (+6.3 lakh shares) and 11,600 Call (-3.6 lakh shares)

Nifty Monthly Expiry: November 26

• Maximum Open Interest on Call side at 12,000 strike (15.6 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (26.4 lakh shares)