Stocks To Watch: Aditya Birla Fashion, Axis Bank, Hero MotoCorp, HUL, Maruti Suzuki
A bronze bull statue stands at the entrance to the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Aditya Birla Fashion, Axis Bank, Hero MotoCorp, HUL, Maruti Suzuki

Indian equities fell the most in over a month, ending lower for the fourth straight day as selling pressure continued after hitting a record high on Thursday. The S&P BSE Sensex ended 1.9% lower at 47,409 while the NSE Nifty 50 index fell 1.9% to end at 13,967. This is the first instance of the benchmark indices falling for four days in a row since September 2020.

Here are the stocks to watch in trade today:

  • Hero MotoCorp: Enters into a distribution agreement with Grupo Salinas in Mexico to form one of the largest distribution networks globally to sell competitive, high-quality products in the Mexican market. The company targets rapid expansion in the country over the next three years. The first phase will see Hero launch nine products, including motorcycles for work, street, premium and on-off segments along with scooters. The company is now present in more than 10 countries in Latin America.
  • PVR: Launches QIP on Wednesday in order to raise funds. The floor price of Rs 1,495.93 per share is a 0.7% premium to Wednesday's closing price. The company may, at its discretion, consider offering a discount on the floor price within the prescribed limits under SEBI regulations. Board will meet on February 1 to determine the issue price of the QIP.
  • Power Grid: Power Grid Infrastructure Investment Trust (PGInvIT), has filed a draft offer document with SEBI, in relation to the proposed IPO. The IPO is proposed to consist of a fresh issue of units by PGInvIT and an offer for sale of units by Power Grid.
  • NTPC: 140 MW capacity Bilhaur Solar PV Project in Uttar Pradesh has been declared on commercial operations from January 18. With this, the commissioned capacity of NTPC and NTPC group stands at 51,310 MW and 63,925 MW respectively while commercial capacity is 51,310 MW and 63,265 MW respectively.
  • GTPL Hathway: Has sold entire 51% equity stake and 100% stake in preference shares in Vaji Communications for a cash consideration of Rs 3.3 lakh and Rs 6.15 lakh respectively. Sold its entire 51% equity stake in Vizianagar for a cash consideration of Rs 5,100. Post this, Vaji Communications and Vizianagar have ceased to be subsidiaries of the company.
  • GMR Infrastructure: GMR Hyderabad International Airport, a step down subsidiary of the company, announced that it had on January 26, 2021 successfully priced an offering of $300 million bond in the international bond market. GHIAL has entered into a Purchase Agreement to issue and allot $300 million 4.75% senior secured notes of 5 year tenure. The proceeds from the notes will be used towards the capital expenditure with respect to the master plan (expansion) of the Rajiv Gandhi International Airport at Hyderabad, increasing the capacity of the Airport to 34 million Passengers Per Annum.
  • Cosmo Films: Has declared an Interim dividend of Rs 25 per equity share. The dividend will be paid on or before February 26, 2021 to members whose names appear on the Register of Members and the beneficial owners.
  • NCL Industries: The transaction for the purchase of 100% equity stake in Tern Distilleries in terms of the Share Purchase Agreement executed with United Spirit Limited has been completed.
  • Endurance Technologies: CRISIL Ratings has upgraded the long-term rating for bank credit facilities of Rs 918.03 crore to AA+/Stable from AA/Positive. The rating agency also reaffirmed the short-term rating for bank credit facilities/Commercial Papers of Rs 100 crore to A1+.
  • Aditya Birla Fashion and Retail: To acquire 51% stake in Sabyasachi Couture for Rs 398 crore in an all cash deal. Deal is expected to be completed in 30-45 days.
  • Union Bank of India: To issue 205 Basel Ill Compliant Perpetual Debt lnstruments in the nature of Debentures eligible for inclusion in Additional Tier 1 Capital Series XXlX of face value of Rs 1 crore, aggregating upto Rs 205 crore with a Green Shoe Option of Rs 300 crore on Private Placement basis.
  • SBI Cards and Payment Services: Managing Director & CEO, Ashwini Kumar Tewari, has tendered his resignation from directorship of the company with effect from January 27, 2021, owing to his appointment as the Managing Director of State Bank of India. He will also cease to be the MD & CEO of the company from the said date.
  • HUL: Appoints Ritesh Tiwari as ED finance and chief financial officer with effect from May 1. Ritesh Tiwari will also take over as vice president finance, South Asia, Unilever. Current CFO, Srinivas Phatak will move to Unilever’s headquarters in London as EVP financial control and risk management and be part of the Finance Leadership Executive Team.
  • Nifty Earnings: Maruti Suzuki India
  • Non-Nifty Earnings: Aarti Industries, Aegis Logistics, Alembic, Angel Broking, AU Small Finance Bank, Bharat Electronics, Blue Dart, Coforge, Colgate-Palmolive, Cummins India, Eclerx, Engineers India, Equitas Small Finance Bank, GHCL, Goa Carbon, Granules India, IDBI Bank, IFB Industries, InterGlobe Aviation, Indus Towers, IRCTC, KEC International, KEI Industries, Laurus Labs, Lupin, M&M Financial, Motilal Oswal Financial Services, Oracle Financial Services, Orient Bell, Orient Cement, Persistent Systems, Pidilite, Radico Khaitan, RBL Bank, Shriram Transport Finance, Sudarshan Chemicals, Tata Chemicals, Teamlease, TVS Motor, United Breweries, Welspun Corp

Nifty Earnings

Hindustan Unilever Q3FY21 (Standalone, YoY)

  • Revenue up 21% at Rs 11,862 crore Vs Rs 9,808 crore (BBG Estimate: Rs 11,276 crore)
  • Net profit up 18.8% at Rs 1,921 crore Vs Rs 1,616 crore (BBG Estimate: Rs 2,052.5 crore)
  • Ebitda up 16.7% at Rs 2,854 crore Vs Rs 2,445 crore
  • Ebitda margin at 24% Vs 24.9%
  • Volume growth for the quarter at 4%
  • Tea and palm prices are up more than 50% year-on-year
  • Discretionary consumption has made a strong comeback
  • Rural markets are growing in double-digits
  • Premium portfolio has grown in high single-digits

Axis Bank Q3FY21 (Standalone, YoY)

  • Net Interest Income up 14% at Rs 7,373 crore Vs Rs 6,453 crore (BBG Estimate: Rs 7,472 crore)
  • Net profit down 36% at Rs 1,116 crore Vs Rs 1,757 crore (BBG Estimate: Rs 2,356 crore)
  • Gross NPA at 3.44% Vs 4.18% (QoQ)
  • Net NPA at 0.74% Vs 0.98% (QoQ)
  • Proforma Gross NPA at 4.55% Vs 4.28%
  • Proforma Net NPA at 1.19% Vs 1.03%
  • Provisions at Rs 4,604.3 crore Vs Rs 4,580.6 crore (QoQ) and Rs 3,470.9 crore (YoY)

Earnings Post Market Hours

United Spirits Q3FY21 (Standalone YoY)

  • Revenue down 4% at Rs 2488.7 crore Vs Rs 2582.5 crore (BBG Estimate: Rs 2,584.8 crore)
  • Net profit down 11% at Rs 229.9 crore Vs Rs 258.8 crore (BBG Estimate: Rs 221.6 crore)
  • Ebidta down 9% at Rs 282.8 crore Vs Rs 424.0 crore (BBG Estimate: Rs 385.4 crore)
  • Ebidta margin at 15.4% from 16.4% (BBG Estimate: 14.9) Prestige & Above segment net sales declined 0.8%
  • Popular segment net sales declined 6.7%
  • Gross Margins up 24 basis points to 44.6% driven by benign commodities and continued focus on productivity
  • Interest costs fell 17% due to reduced debts and lower interest rates
  • Not providing quantitative guidance for FY21 despite a quicker rebound than originally expected

ICICI Prudential Q3FY21 (Standalone, YoY)

  • Gross Premium Income up 11% at Rs 9,152 crore Vs Rs 8,263.6 crore
  • Net profit flat at Rs 305.5 crore Vs Rs 302.5 crore
  • Solvency Ratio at 226.1% Vs 207.2%
  • 13th month persistency ratio at 82.4% Vs 80%
  • 61st month persistency ratio at 58.8% Vs 55.3%
  • New business premium up 14% at Rs 3,443 crore
  • VNB Margins for 9MFY21 at 26% Vs 21% in 9MFY20

PNB Housing Finance Q3FY21 (Standalone, YoY)

  • Net Interest Income up 3% at Rs 626.4 crore Vs Rs 608.4 crore
  • Net profit down 5% at Rs 223.2 crore Vs Rs 235 crore
  • Pre-Provisioning Operating profit up 15% to Rs 550 crore Vs Rs 479 crore
  • Disbursements flat year-on-year at Rs 3,203 crore and up 31% (QoQ)
  • Gross NPA at 2.64% Vs 2.59% (QoQ). Proforma gross NPA is at 4.47%.
  • Net NPA at 1.41% Vs 1.46% (QoQ)

JK Paper Q3FY21 (Consolidated, YoY)

  • Revenue down 9% at Rs 744.88 crore vs Rs 820.65 crore
  • Ebitda down 33% at Rs 155.19 crore vs Rs 230.65 crore
  • Ebitda Margin at 20.8% vs 28.1%
  • Net Profit down 51% at Rs 64.59 crore vs Rs 131.85 crore

Tata Coffee Q3FY21 (Consolidated, YoY)

  • Revenue up 6% at Rs 532.76 crore vs Rs 501.42 crore
  • Ebitda up 13% at Rs 96.37 crore vs Rs 85.12 crore
  • Ebitda Margin at 18.1% vs 17%
  • Net Profit up 20% at Rs 50.18 crore vs Rs 41.99 crore

Nippon India Life AMC Q3FY21 (Consolidated, YoY)

  • Revenue down 11% at Rs 268.5 crore Vs Rs 303.1 crore
  • Net profit up 42% at Rs 212 crore Vs Rs 149.3 crore
  • Net profit higher due to higher other income
  • Other income more than doubles to Rs 130.4 crore Vs Rs 57.5 crore
  • Total Assets Under Management at Rs 3.52 lakh crore
  • Share of equity assets as % of AUM rose to 39.1 from 38.9 (QoQ)

Insider Trade

  • Sagar Cements: Promoter RV Consulting Services acquired 5,100 shares on January 25. As Reported On January 27.

Trading Tweaks

  • Price Band Revised From 10% To 5%: Tata Steel Long Products Ex-Date EGM: Shree Rama Multi-Tech
  • Ex-Date Interim Dividend: GMM Pfaudler, Indian Energy Exchange, Havells India.
  • Record Date Buyback: GAIL
  • Record Date Interim Dividend: DCM Shriram, GAIL
  • Record Date Income Distribution (InvIT): India Grid Trust
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