Stocks To Watch: Affle India, Bata, Cipla, Defence Stocks, IndusInd Bank, Shree Cement, Titan

Asian markets have opened mixed at the start of the new trading week as investors look forward to this week's expected review of the U.S.-China trade pact.

Markets in South Korea and Australia are edging higher while those in Japan and Singapore are shut due to a holiday.

Futures on the Dow Jones trade little changed, similar to the way the index ended in Friday's trading session.

Stocks To Watch

• Cipla: Earnings ahead of consensus estimates led by strong performance in its India and Emerging Markets business. The company has also managed to achieve a net debt-free status.
• Birla Corporation: To increase grinding cement capacity to 1.54 MTPA from 1.3 MTPS at its Durgapur facility for an investment of Rs 72.6 crore. The company said that there will be a delay in putting up the 3.9 MTPA green-field integrated cement plant, to be commissioned by August 2021.
• Zee Entertainment: Brickwork Ratings has downgraded the company's issuer rating to BWR AA- from BWR AA, with credit watch with negative implications due to decline in profitability and margins in FY21 and a weakening credit profile.
• Defence Stocks: Defence minister Rajnath Singh says that the Ministry of Defence has prepared a list of 101 items for which there will be an embargo on the imports. Contracts worth nearly 4 lakh crore will be placed upon the domestic industry within the next six to seven years. The list includes Wheeled Armoured Fighting Vehicles (AFVs) with indicative import embargo date of December 2021, of which the army is expected to contract nearly 200 of them at a cost of over Rs 5,000 crore. The embargo on imports is planned to be progressively implemented between 2020 and 2024.
• NBCC: All pending appeals before NCLAT with respect to Jaypee Infratech's resolution plan are to be transferred before the Supreme Court to avoid delay in the execution of the plan. Day to day functions of Jaypee Infratech to be managed by interim resolution professional till further orders.
• IndusInd Bank: Has acquired 7.82% stake in Eveready Industries and 7.5% stake in McLeod Russel India after invoking shares pledged by promoter Williamson Magor. The invocation was done to secure the outstanding dues of Seajuli Developers & Finance.
• FDC: Board approved buyback of Rs 21.63 lakh shares or 1.27% of equity at Rs 450 per share. The share buyback aggregates to Rs 97.4 crore. The buyback price is a 34% premium to Friday's closing price.
• REC: Board approved raising Rs 85,000 crore through NCDs, subject to shareholders approval. The board approved revised scheme of amalgamation of its arms REC Transmission Projects with REC Power Distribution.
• DCB Bank: Introduces external benchmark link rate for its home loans at 8.16% per annum from August 10.
• ONGC: Board approved allotment of NCDs worth Rs 1,000 crore
• Amber Enterprises: Board approved raising Rs 500 crore through equity and debt.
• NACL Industries: To consider raissing funds via NCDs on August 12.
• Dilip Buildcon: To consider raising funds via NCDs on August 14.
• IDFC First Bank: Basel III tier-2 debt, infra bonds and NCDs rating re-affirmed at IND AA+/Negative by India Ratings & Research.
• Coal India: Cuts FY21 production target to 650-660 MT: PTI
• Nifty Earnings Today: Power Grid, Shree Cement, Titan
• Non-Nifty Earnings Today: Akzo Nobel, AstraZeneca Pharma, Bank of Baroda, Camlin Fine, Cochin Shipyard, Equitas Holdings, HEG, IPCA Labs, KEC International, Meghmani Organics, TTK Prestige, Ujjivan Financial, V-Mart Retail

Earnings Reported After Market Hours

Amara Raja Batteries Q1FY21

• Revenue down 36.6% to Rs 1,151 crore
• Net profit down 56% to Rs 62.7 crore
• Ebitda down 45.4% to Rs 152.2 crore
• Ebitda margin at 13.2% from 15.4%
• OEM demand was subdued due to lockdown challenges across the country.
• Demand for batteries in the after market recovered sharply
• Industrial business witnessed sharp demand ramp up in UPS and telecom sector
• Exports faced major challenges during the quarter
• All numbers are standalone and compared on a year-on-year basis

Bata India Q1FY21

• Revenue down 84.7% to Rs 135.1 crore
• Net loss of Rs 100.9 crore from net profit of Rs 101 crore
• Ebitda loss of Rs 85.9 crore from Ebitda gain of Rs 243.4 crore
• Witnessed a gradual improvement in business once the lockdown was lifted
• Prevailing uncertainties have dampened the consumer demand for discretionary spends
• Focus on cost controls related to retail stores, factories, rentals & operations and drive efficiencies in its value chain
• All numbers are consolidated and compared on a year-on-year basis

Birla Corporation Q1FY21

• Revenue down 35.1% to Rs 1,222 crore
• Net profit down 53.2% to Rs 65.8 crore
• Ebitda down 39.4% to Rs 233.2 crore
• Ebitda margin at 19.1% from 20.4%
• Ebitda per tonne down 5% to Rs 981
• Realisation per tonne down 0.5% to Rs 4,906
• Volumes down 34% to 2.4 million tonnes
• All numbers are consolidated and compared on a year-on-year basis

Amber Enterprises Q1FY21

• Revenue down 79% to Rs 259.5 crore
• Net loss of Rs 22.4 crore from net profit of Rs 61.2 crore
• Ebitda loss of Rs 5.5 crore from Ebitda gain of Rs 116.4 crore
• RAC business contributed 61% of total revenue
• Components & Mobile Application business contributed 39% of total revenue
• Demand scenario has been improving as lockdown restrictions are eased off
• Reviewing our capex plans for FY21
• All numbers are consolidated and compared on a year-on-year basis

Siemens Q3 Year Ending September

• Revenue down 58.7% to Rs 1,319.5 crore
• Net loss of Rs 4.6 crore from net profit of Rs 24.1 crore
• Ebitda loss of Rs 9.6 crore from Ebitda gain of Rs 353.7 crore
• Gas and Power segment revenue down 52% to Rs 554.6 crore
• Smart Infrastructure revenue down 66% to Rs 309.2 crore
• Mobility segment revenue down 61% to Rs 97 crore
• Digital Industries revenue down 71% to Rs 181.9 crore
• Order backlog of Rs 13,142 crore with more than one-year revenue visibility
• 75% of project sites have reopened and are at utilisation levels between 20% and 70%
• All numbers are standalone and compared on a year-on-year basis

Divi's Laboratories Q1FY21

• Revenue up 48.8% to Rs 1,730.5 crore
• Net profit up 80.6% to Rs 492 crore
• Ebitda up 81% to Rs 700 crore
• Ebitda margin at 40.4% from 33.2%
• Forex gain of Rs 5 crore this quarter as compared to forex loss of Rs 6 crore in base quarter
• Significant part of the capex program has been completed
• All numbers are consolidated and compared on a year-on-year basis

DCB Bank Q1FY21

• Net Interest Income up 0.6% to Rs 306.7 crore
• Net profit down 2.1% to Rs 79.4 crore
• Gross NPA at 2.44% from 2.46% last quarter
• Net NPA at 0.99% from 1.16% last quarter
• Provisions down 29% from the previous quarter to Rs 83.7 crore
• Provision Coverage Ratio at 75.2%
• Additional Covid-19 provisions worth Rs 32 crore this quarter
• Total provision for Covid-19 at Rs 95 crore
• 26% of the loan book under moratorium

Man Infra Q1FY21

• Revenue down 62.4% to Rs 22.8 crore
• Net profit of Rs 2.2 crore from net loss of Rs 5 crore
• Ebitda more than doubles to Rs 13.9 crore
• All numbers are consolidated and compared on a year-on-year basis

TVS Electronics Q1FY21

• Revenue down 53.2% to Rs 29 crore
• Net loss of Rs 9.7 crore from net profit of Rs 2 crore
• Ebitda loss of Rs 6.9 crore from Ebitda profit of Rs 4.1 crore
• All numbers compared on a year-on-year basis

Bajaj Hindusthan Q1FY21

• Revenue down 19.3% to Rs 1,335.2 crore
• Net loss widens to Rs 53 crore from Rs 19.5 crore
• Ebitda down 39% to Rs 66.2 crore
• Ebitda margin at 4.9% from 6.5%
• All numbers are consolidated and compared on a year-on-year basis

Affle India Q1FY21

• Revenue up 20.3% to Rs 89.8 crore
• Net profit up 42.3% to Rs 18.8 crore
• Ebitda up 20.3% to Rs 22.5 crore
• Ebitda margin flat at 25%
• Broad-based growth from both CPCU and non-CPCU business
• CPCU business had 1.7 crore of converted users during the quarter
• India business revenue up 39% to Rs 42.2 crore
• Overseas business revenue flat at Rs 49.6 crore
• All numbers are consolidated and compared on a year-on-year basis

Shilpa Medicare Q1FY21

• Revenue up 38.4% to Rs 222.9 crore
• Net profit up over five times to Rs 86.3 crore
• Ebitda more than doubles to Rs 65.7 crore
• Ebitda margin at 29.5% from 17.9%
• All numbers are consolidated and compared on a year-on-year basis

Bulk Deals

• Spencer’s Retail Rights Issue: Habrok India Master sold 1.24 lakh rights shares at Rs 26.53 per share.
• Mindspace Business Parks REIT: Nomura Investment acquired 62.63 lakh units at Rs 302.45 per unit and Capital Income Builder acquired 51.81 lakh units at Rs 303.44 per unit.
• Century Textiles: Morgan Stanley acquired 6.89 lakh shares (0.62%) at Rs 317.45 per share.

Who’s Meeting Whom

• Granules India: To meet SBI Mutual Fund, Ocean Dial AMC and other investors between August 11-19.
• Tata Motors: To meet First State Investments, Indus Capital (Hong Kong) and Oxbow Capital Management from August 11-14.
• IIFL Finance: To meet Bavaria Industries Group on August 10.

Trading Tweaks

• AGM Date: Honeywell Automation, Oracle Financial Services, Alkem Labs, Astrazeneca Pharma, Camlin Fine Sciences, Canara Bank, Eicher Motors, Equitas Holdings, M&M Finacial Services, Sundaram Brake Linings.
• Fund Raising: InterGlobe Aviation
• Price Band Revised From 10% To 5%: Hindustan Motors
• Move Into ASM Framework: Trident Texofab
• Move Out Of ASM Framework: Speciality Restaurant

F&O Cues

• Nifty August futures end at 11,229; premium of 15 points from 12 points
• Nifty August futures add 1.4% and 1.4 lakh shares in Open Interest
• Nifty Bank August futures end at 21,795; premium of 41 points from 27 points
• Nifty Bank August futures add 4.4% and 56,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.56
• Stocks In F&O Ban: Canara Bank, Century Textiles, Vodafone Idea, Vedanta

Nifty: August 13 Expiry

• Maximum Open Interest on Call side at 11,500 strike (23.3 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (27 lakh shares)
• Active Options: 11,000 Put (11.3 lakh shares) & 11,500 Call (12.4 lakh shares)

Nifty: August 27 Expiry

• Maximum Open Interest on Call side at 11,500 strike (22 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (30.6 lakh shares)

F&O Buzzers & Fund Flows