Stocks To Watch: Asian Paints, Axis Bank, Bajaj Auto, Laurus Labs,  Sagar Cement
A trader speaks on a phone as he monitors financial data as trading on the Greek stock exchange halts in the offices of the Nuntius Securities SA broking firm in Athens, Greece. (Photographer: Simon Dawson/Bloomberg)

Stocks To Watch: Asian Paints, Axis Bank, Bajaj Auto, Laurus Labs, Sagar Cement

Indian equities ended higher for the second straight session, erasing the losses made over Friday and Monday. The S&P BSE Sensex reversed after coming as much as 120 points close to the mark of 50,000. The index ended 0.8% higher at 49,792, correcting as much as 80 points from the highest point of the day. The NSE Nifty 50 ended near the day's high with gains of 0.85% at 14,644.

Here are the stocks to watch in trade today:

  • Laurus Labs: Completes the acquisition of 72.55% stake in Richcore Lifesciences Pvt. Ltd. Richcore has now become a subsidiary of the company. The definitive agreement for the same was signed in November 2020.
  • Aditya Birla Fashion and Retail: The Competition Commission of India has accorded its approval to Flipkart for its proposed acquisition of 7.8% equity stake in the company on a fully diluted basis. The company had approved issuance of equity shares on a preferential basis to Flipkart for an amount aggregating up to Rs 1,500 crore on October 23, 2020.
  • Sagar Cement: Has declared a second interim dividend of Rs 2 per share for the financial year 2020-21 on the 2.35 lakh shares of Rs 10 each of the company and has fixed February 3, 2021, as the Record Date for the purpose.
  • UltraTech Cement: To consider and evaluate a proposal for raising of funds in one or more tranches through methods or combinations as decided by the board on January 23.
  • Axis Bank: Gets approval from the Competition Commission of India for deal with Max Life Insurance.
  • Indigo Paints: Issue subscribed 1.9 times on the first day of bidding. Institutional subscription at 0.1x, non-institutional subscription at 1.1x while retail subscription at 3x.
  • IRFC: Overall subscription at 3.5 times on the final day of bidding. Institutional subscription at 3.78 times, non-institutional subscription at 2.66 times while retail portion subscribed 3.66 times.
  • Nifty Earnings: Asian Paints, Bajaj Auto
  • Non-Nifty Earnings: Aavas Financiers, Apollo Tricoat Tubes, Bandhan Bank, Biocon, Bliss GVS Pharma, Cyient, Indo Count Industries, Indian Energy Exchange, IIFL Securities, JSPL, JK Tyre, Kajaria Ceramics, MCX, Mphasis, Music Broadcast, Saregama, SBI Cards & Payment Services, South Indian Bank, SRF, Supreme Petrochem, Westlife Development, Zensar Technologies.

Nifty Earnings

Bajaj Finance Q3FY21 (Consolidated, YoY)

  • Net Interest Income down 5% at Rs 4,295.8 crore Vs Rs 4,530.6 crore
  • Net profit down 29% at Rs 1,146 crore Vs Rs 1,641 crore (BBG Estimate: Rs 1,181.2 crore)
  • Gross NPA at 0.55% Vs 1.03% (QoQ)
  • Proforma Gross NPA at 2.86% Vs 1.34% (QoQ)
  • Loan losses and provisions at Rs 1,352 crore Vs Rs 831 crore
  • Post Q3 provisions, estimate residual credit costs in Q4 at Rs 1,200-1,250 crore
  • One-time principal write-off of Rs 1,970 crore on account of Covid-19 related stress
  • Restructures Rs 2,400 crore under RBI permitted plan
  • In the process of launching Bajaj Pay for consumers in Q4. To offer payment solutions Via UPI, PPI, EMI Cards and Credit cards

Also read: Bajaj Finance Prepares To Take On Fintechs At Their Own Game

Bajaj Finserv Q3FY21

  • NII up 13% to Rs 13,700.11 crore vs Rs 12,139.51 crore
  • Net Profit up 15% to 1,289.96 crore vs Rs 1,125.64 crore

Earnings Post Market Hours

L&T Technology Services Q3FY21 (Consolidate QoQ)

  • Revenue up 7% to Rs 1,400.7 crore vs Rs 1,313.8 crore (BBG Estimate: Rs 1,365.8 crore)
  • Ebit up 18% to Rs 213.20 crore vs Rs 180.1 crore (BBG Estimate: Rs 212.6 crore)
  • Ebit Margins at 15.2% vs 13.7%
  • Net Profit up 12% to Rs 187 crore vs Rs 166.3 crore (BBG Estimate: Rs 171.1 crore) U.S. Dollar revenue up 6.8% at $190 million
  • Won 7 deals during the quarter with TCV of $10 million+
  • Deal pipeline is healthy across segments

Havells India Q3FY21 (Standalone, YoY)

  • Revenue up 39% at Rs 3,165 crore Vs Rs 2,269.9 crore (BBG Estimate: Rs 2,627 crore)
  • Net profit up 75% at Rs 349.1 crore Vs Rs 199.5 crore (BBG Estimate: Rs 251.3 crore)
  • Ebitda up 89% at Rs 507.2 crore Vs Rs 269 crore (BBG Estimate: Rs 380 crore)
  • Ebitda margin at 16% Vs 11.9%
  • Switchgears segment revenue up 32% at Rs 437.1 crore Vs Rs 330.9 crore
  • Cables revenue up 27% at Rs 905.2 crore Vs Rs 712.1 crore
  • Lighting & Fixtures revenue up 28% at Rs 353.3 crore Vs Rs 276 crore
  • Electric consumer durables revenue up 46% at Rs 783 crore Vs Rs 536 crore
  • Lloyd consumer revenue up 70% at Rs 511.6 crore Vs Rs 300.4 crore
  • Declares interim dividend of Rs 3 per share

Phillips Carbon Black Q3FY21 (Consolidated, YoY)

  • Revenue flat at Rs 769.4 crore Vs Rs 768.6 crore
  • Net profit up 79% at Rs 125.6 crore Vs Rs 70.2 crore
  • Ebitda up 57% at Rs 188.3 crore Vs Rs 120.1 crore
  • Ebitda margin at 24.5% Vs 15.6%
  • Declares interim dividend of Rs 7 per share
  • Commissioning of new specialty black line in Palej plant, having a capacity of 20 KTPA is expected in February 2021
  • Greenfield project of about 150 KTPA for manufacture of various grades of carbon black and 23 MW of co-generation power over 60 acres of land in Tamil Nadu is expected to be commissioned by March 2023
  • 7 MW co-generation power plant in Kochi is expected to be commissioned by end of 2021

HDFC AMC Q3FY21 (Standalone, YoY)

  • Revenue down 8% at Rs 481.9 crore Vs Rs 524.7 crore (BBG Estimate: Rs 528.1 crore)
  • Net profit up 5% at Rs 369.2 crore Vs Rs 352.5 crore (BBG Estimate: Rs 345.5 crore)
  • Quarterly Average AUM up 2% at Rs 3.89 lakh crore Vs Rs 3.82 lakh crore
  • Number of live individual accounts down 4% at 8.99 million Vs 9.36 million

GMM Pfaudler Q3FY21 (Consolidated, YoY)

  • Revenue up 29% at Rs 201.8 crore Vs Rs 156 crore
  • Net profit up 10% at Rs 23.1 crore Vs Rs 21 crore
  • Ebitda up 38% at Rs 41.8 crore Vs Rs 30.4 crore
  • Ebitda margin at 20.7% Vs 19.5%
  • Glass line equipment revenue up 20% at Rs 109.4 crore Vs Rs 91.1 crore
  • Heavy Engineering revenue up 37% at Rs 20.1 crore Vs Rs 15 crore
  • Declares dividend of Re 1 per share
  • Healthy order backlog along product lines
  • Overall business environment looks very promising
  • In reference to the acquisition of the international business of the Pfaudler Group, the company has received all foreign investment and antitrust approvals and expects to close the transaction soon.

Pledge Share Details

  • Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 79.80 lakh shares on January 14.
  • Wockhardt: Promoter Themisto Trustee Company revoked pledge of 3 lakh shares on January 15.
  • Star Cement: Promoter Vinay Chamaria HUF created a pledge of 2 lakh shares on October 6.
  • Adani Green Energy: Promoters (Gautam S. Adani and Rajesh S. Adani) revoked pledge of 29 lakh shares on December 24. As Reported On January 21.

Bulk Deals

  • Kirloskar Oil Engines: SBI Mutual Fund bought 52.23 lakh shares (3.61%) at Rs 125 per share. Nalanda India Fund sold 60 lakh shares (4.15%) at Rs 125 per share.
  • Dhanvarsha Finvest: Yan Securities sold 2 lakh shares (1.31%) at Rs 419.96 per share.

Trading Tweaks

  • Ex-Date Interim Dividend: HCL Technologies, TAAL Enterprises
  • Ex-Date Rights Issue: L&T Finance Holdings
  • Record Date Income Distribution (InvIT): IRB InvIT Fund
  • Price Band Revised From 20% To 10%: Cerebra Integrated Technologies
  • Move Into ASM Framework: Cerebra Integrated Technologies
  • Move Out Of Short-term ASM Framework: Ambika Cotton Mills, Hindustan Composites, Vakrangee
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