All You Need To Know Going Into Trade On September 14

Stocks To Watch

• Yes Bank: ICRA has upgraded securities issued by the lender after the fund raise and general improvement in the bank's financial profile. Infrastructure bond program worth Rs 7,030 crore has been upgraded to BBB from BB+. The bank's Basel-III compliant lower Tier-II bonds worth Rs 10,900 crore upgraded to BBB- from BB+. The rating upgrade factors in the sizeable capital raise of Rs 15,000 crore, improvement in the bank's liquidity position and subsequent increase in its deposit base. ICRA say that the Covid-19 stress on the residual corporate book as on June 30 is likely to keep credit costs elevated in the near-term.
• The Maharashtra government has increased ready reckoner rates in the state by an average of 1.74%. The new rates will be applicable on September 12 and have been raised for the first time in two and a half years. Ready reckoner rates are the market value of properties determined by the government for the purpose of taxation. Godrej Properties, Sunteck Realty, Kolte Patil Developers, Oberoi Realty, IBREL will be in focus.
• Bharti Airtel: Moody's has affirmed the company's Ba1 corporate family rating and senior unsecured rating at the same time. The outlook has been revised to stable from negative. The ratings affirmation and change in outlook reflect improving profitability at the company's core Indian mobile business, because of a moderation in industry competition, an increase in its 4G customer base and a tariff hike in December 2019.
• Deepak Fertilisers & Petrochemicals: Sets rights issue price at Rs 133 per share. The rights entitlement ratio has been set a 3 shares for every 20 shares held. The record day has been set as September 17. The issue price is a 17.6% discount to Friday's closing price. The issue opens on September 28 and closes on October 12.
• Tata Motors: JLR sales down 15.5% in August at 28,887 units. For Q1FY21, sales fell 42.4% to 74,067 units.
• Adani Green Energy: CEO says in a conference call that the deal to buy Essel's solar assets is in its final stages and the company is seeking $1.8 billion to build projects.
• Dhanuka Agritech: Board to meet on September 16 to approve terms of the share buyback.
• JSW Energy: CARE Ratings downgrades the long-term ratings of its three arms - JSW Energy (Barmer), JSW Hydro Energy and Jaigad Power Transco to CARE A+/stable from CARE AA- / credit watch with negative implications. The rating revision factors in termination of the company's proposed deal to acquire GMR Kamalanga Energy and the recently announced plans to enter into the renewable energy space.
• Adani Enterprises: Adani Land Defence Systems & Technologies has acquired 51% stake in PLR Systems from Fouraces Systems. This acquisition will enable the company to manufacture defence equipment indigenously.
• Kilpest India: Board to consider amalgamation of 3P Blackbio Tech and itself on September 17.
• TTK Prestige: Has launched new category of steel casseroles and will be initially launched in North Indian markets.
• Piramal Enteprises: CCI approves acquisition of 20% stake in Piramal Pharma by Carlyle.
• Ratnamani Metals & Tubes: Gets domestic order worth Rs 90 crore for supply of pipes to the Oil & Gas sector.
• Heritage Foods: Board approves selling 1.78 crore shares of Future Retail and 8.92 lakh shares of Praxis Home Retail in one or more tranches.
• Forbes & Co: Board approves borrowing of up to Rs 150 crore by issue of debentures to promoter Shapoorji Pallonji.
• IGSEC Heavy Engineering: Gets order worth Rs 126.5 crore for scrubber system from Hindalco.
• Puravankara: Board to consider raising capital via NCDs on September 16.
• Persistent Systems: Announced alliance with cloud data management software company Actifio.
• Route Mobile: IPO subscribed 74.36 times on the final day of bidding. Institutional subscription at 91.06 times. Non-institutional investors subscription at 195.6 times and retail subscription at 12.8 times.
• Non-Nifty Earnings Today: PVR, Raymond, Balaji Telefilms, Bharat Road Network, IFCI, GATI, JB Chemicals, ITI, MMTC, NBCC, SAIL, Take Solutions

Earnings Reported After Market Hours

IRCTC Q1FY21

• Revenue down 71.4% to Rs 131.3 crore
• Net loss of Rs 24.6 crore from net profit of Rs 72.3 crore
• Ebitda loss of Rs 43.9 crore from Ebitda gain of Rs 103.4 crore
• Catering segment revenue down 67% to Rs 89.9 crore
• Rail Neer Segment revenue down 94% to Rs 3.2 crore
• Internet Ticketing segment revenue down 57% to Rs 35.2 crore
• Tourism segment revenue down 94% to Rs 2.9 crore
• All segments are standalone and compared on a year-on-year basis

BHEL Q1FY21

• Revenue down 56.1% to Rs 1,990.9 crore
• Net loss widens to Rs 897.2 crore from Rs 216.3 crore
• Ebitda loss widens to Rs 1,058.8 crore from Rs 266.7 crore
• Power Segment revenue down 69% to Rs 1,119.4 crore
• Industry segment revenue down 15% to Rs 777.1 crore
• All numbers are standalone and compared on a year-on-year basis.

Mishra Dhatu Nigam Q1FY21

• Revenue down 14.1% at Rs 113.5 crore
• Net loss of Rs 1 crore from net profit of Rs 23 crore
• Ebitda down 84.5% to Rs 5.8 crore
• Ebitda margin at 5.1% from 28.2%
• Orderbook position of the company as on July 1, 2020 at Rs 1,732 crore
• All numbers are standalone and compared on a year-on-year basis

Pokarna Q1FY21

• Revenue down 79.8% to Rs 5.2 crore
• Net loss of Rs 5.4 crore from net profit of Rs 0.37 crore
• Ebitda loss of Rs 3.5 crore from Ebitda profit of Rs 4.6 crore
• All numbers are standalone and compared on a year-on-year basis

Brokerage Radar

Nomura On Container Corporation

• Neutral rating maintained
• Price target of Rs 438
• Rationalisation of operating costs clearly visible
• Management appears focused on profitability rather than market share retention
• New forays like coastal shipping showing initial promise
• Sharp contraction in Land License fee a surprise and difficult to explain
• Does not have significant off-balance sheet liabilities
• Remain cautions given LLF-linked overhang
• Prefer Adani Ports over CONCOR

ICICI Securities On Varun Beverages

• Hold rating maintained
• Price target of Rs 750
• Expect 100% volume recovery by end of Q3CY20
• Packaged beverages gaining market share from roadside juices, coconut water
• Gross margin expansion likely in H2CY20 owing to lower input costs
• Expect PAT CAGR of 7.7% over CY19-21
• Will benefit from relationship with PepsiCo, pan-India distribution, and backward integration
• Need more comfort on valuations to turn bullish

Macquarie On Indian Cement Sector

• Demand has softened across regions owing to seasonality
• Companies with exposure to North, Central, East India continue to do better
• Expect Shree Cement, Dalmia Bharat to deliver better volume growth compared to peers
• See three-pronged impact on costs which are starting to inch higher
• Domestic petcoke prices are nearly 40% higher than the lows of June 2020
• Prices will strengthen post the monsoon
• Retain positive view on the sector
• Outperform rating maintained on UltraTech, Shree Cement, Ambuja Cement and ACC

Macquarie On BHEL

• Underperform rating maintained
• Price target raised to Rs 23 from 20
• Outlook on power segment ordering remains weak
• Some progress on MoUs has been made but management clarified that any meaningful revenue accretion is at least a year away
• See no positive triggers on the horizon for the company

Macquarie On Indian Real Estate (Takeaways from the CII-JLL Conclave)

• Tone of the participants was cautiously optimistic
• Consolidation across sub-sectors was the common theme
• Office market - Uncertain in the short-term, good in the medium-term
• Office supply would drop by 30-40%, given tight liquidity for small developers
• Expect rentals to drop by 5% in FY21E, leasing activity to remain weak given a delay in decision making
• Expect large A grade office owners to gain market share in the medium-term
• Top Picks: Embassy Office Parks REIT and Prestige Estates

Pledged Share Details

• Future Lifestyle Fashions: Promoter Future Corporate Resources invoked pledge of 1.67 crore shares on September 10.
• Future Retail: Promoter Future Corporate Resources invoked pledge of 3.05 crore shares between September 1-10.
• Future Consumer: Promoter Future Capital Investment invoked pledge of 62.91 lakh shares between September 9-10.
• Zee Learn: Promoter Asian Satellite Broadcast invoked pledge of 36 lakh shares on September 8.
• Zee Media: Promoters invoked pledge of 72 lakh shares on September 8.
• MEP Infra Developers: Promoter Sudha Mhaiskar revoked pledge of 9 lakh shares between September 7-9.
• Max Healthcare: Promoter Max Ventures Investment released pledge of 2.93 crore shares between September 4-8

As Reported On September 11.

Who’s Meeting Whom

• Coromandel International: To meet Elara Capital on September 14.
• CG Consumer Electricals: To meet Samsung Investment Trust and Schroders IM Singapore between September 17-21.
• Heidelberg Cement: To meet Axis Mutual Fund on September 14.
• Dixon Tech: To meet Ashmore and Generation Investment between September 16-18.
• Tata Motors: To meet ICICI Prudential AMC, Fidelity Investments and M&G Investments between September 14-16.

Bulk Deals

• Amber Enterprises: Promoter Kartar Singh sold 2.75 lakh shares (0.87%) at Rs 1,841.33 per share while Ascent Investments sold 32.89 lakh shares (10.46%) at Rs 1,835.14 per share. Newport Asia Partners Fund acquired 3.96 lakh shares (1.26%) at Rs 1,839.48 per share, Vittoria Fund acquired 1.62 lakh shares (0.52%) at Rs 1,835.01 per share and Oxbow Master Fund acquired 4.19 lakh shares (1.33%) at Rs 1,835.03 per share.
• Max Healthcare: Promoters Analjit Singh and Max Ventures Investment Holdings sold 4.66 crore shares (5.15%) at Rs 110.70 per share. WF Asian Reconnaissance Fund acquired 77 lakh shares (0.85%) at Rs 110.70 per share and Smallcap World Fund acquired 2.38 crore shares (2.63%) at Rs 110.70 per share.

Trading Tweaks

• AGM Date: Divis Labs, Grasim, Suven Pharma, Zuari Agrochemicals, MRF, Info Edge, Federal Mogul-Goetze, Coal India, Aegis Logistics, Balrampur Chinni Mills.
• Fund Raising: Indiabulls Housing Finance, Mindspace Business Parks REIT.
• Price Band Revision From 10% To 5%: Uniply Industries.
• Move Into ASM Framework: Sutlej Textiles and Industries.
• Move Out Of ASM Framework: Orient Bell, Shree Digvijay Cement, Dhanuka Agritech, LT Foods, Bombay Rayon Fashions, JHS Svendgaard Laboratories, Technofab Engineering, BLB, Zee Media Corporation, Palred Technologies.
• Move Into Short Term ASM Framework: Tejas Networks, Shyam Century Ferrous.
• Move Out Of Short Term ASM Framework: Indiamart Intermesh, Adani Green Energy, Emami, Future Supply Chain Solutions, Praxis Home Retail.

Insider Trades

• Tata Motors and Tata Motors DVR: Promoter Tata Sons acquired 58.2 lakh shares each on September 4.
• Man Infra: Promoter Manan Shah acquired 2 lakh shares on September 10.
• Laurus Labs: Promoter Venkata Chundru acquired 79,029 shares on September 10.

As Reported On September 11.

Money Market Update

• The rupee ended at 73.54 against the U.S. Dollar, as compared to Thursday's close of 73.46. It snapped a two-day gaining streak post today's losses.
• The rupee was the second worst performing currency in Asia for the week, ahead of the Indonesian Rupiah.

F&O Cues

• Nifty September futures end at 11,467; premium of 3 points from 19 points
• Nifty September futures add 7% and 7 lakh shares in Open Interest
• Nifty Bank September futures end at 22,575; premium of 95 points from 68 points
• Nifty Bank September futures add 6% and 82,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.34
• Enter F&O Ban: Adani Enterprises, Canara Bank, Vedanta
• Stocks In F&O Ban: Adani Enterprises, Apollo Tyres, Bank of Baroda, BHEL, Canara Bank, Indiabulls Housing Finance, JSPL, PNB, Vedanta, Vodafone Idea

Nifty: September 17 Expiry

• Maximum Open Interest on Call side at 11,500 strike (23.5 lakh shares)
• Maximum Open Interest on Put side at 11,300 strike (19.6 lakh shares)
• Active Options: 11,400 Put (7.7 lakh shares) and 11,500 Call (8.5 lakh shares)

Nifty: September 24 Expiry

• Maximum Open Interest on Call side at 11,500 strike (21 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (27.6 lakh shares)