Stocks To Watch: Bajaj Finance, CEAT, IIFL Finance, ICICI Lombard, Sobha

Indian equities staged a rebound on Tuesday, recovering most of the losses made on Friday and Monday. The S&P BSE Sensex ended 1.7% higher at 49,398. The index gained 834 points in today’s session, narrowing the gap to 50,000 down to 600 points. The NSE Nifty 50 index also gained close to 250 points in today’s session, ending 1.7% higher at 14,521.

Here are the stocks to watch in trade today:

• IIFL Finance: Wholly-owned subsidiary IIFL Home Finance enters into a co-lending arrangement with Standard Chartered Bank for extending credit to MSME loans (loans against property). Under this partnership, both the players will co-originate these loans and IIFL Home Finance will service the customers through the entire loan life-cycle including sourcing, documentation, collection and loan servicing.
• CEAT: Company says growth during the quarter was achieved on the back of new capacities across segments, particularly passenger car, two-wheeler and farm segments. The replacement market has been buoyant owing to consumer preference in personal mobility and strong rural demand. The company expects some margin pressure in Q4FY21 due to increasing raw material prices. Reduced debt by Rs 260 crore during the quarter.
• HG Infra Engineering: Gets appointed date from NHAI as January 15, 2021 for construction of the proposed Rewari bypass in Haryana on a Hybrid Annuity Mode. The 14.4 km project is scheduled to be completed in two years and HG Infra placed a bid of Rs 522.02 crore.
• Prince Pipes & Fittings: Receives first tranche of Rs 26.1 crore from promoter group entity Prince Marketing. The company had remitted an advance amount of Rs 40 crore to Prince Marketing for purchase of immovable property in Mumbai.
• Sobha: Wholly-owned subsidiary Sobha Highrise Ventures Pvt. ltd. has acquired 100% equity shares of Annalakshmi Land Developers. Shares have been acquired at Rs 175.16 each at a face value of Rs 10 each. The company will hold the land parcel for future development.
• Adani Transmission: Transmission lines are operating at greater than 99.83% availabilities. Added 650 ckt kms to its network during the quarter. Under construction projects progressing as per scheduled. Expected to commission eight out of the nine transmission projects by the end of 2021. Collection efficiency reached 109.9% in Q3 due to recoveries from H1FY21. Distribution loss for AEML is improving consistently and stood at 6.37% during the quarter.
• Indian Bank: A meeting of Board of Directors is scheduled on January 22, 2021 to consider a proposal for raising of fund/equity capital by the Bank through QIP/FPO/Rights issue and/or in combination thereof.
• IRFC: Issue subscribed 1.04 times at the close of the second day of bidding. Institutional subscription remains zero, portion for HNIs subscribed 18.2% while that for retail investors is subscribed 2.01 times.
• Indigo Paints: Has raised Rs 347.9 crore by allotting 23.35 lakh shares to anchor investors ahead of its IPO. Some Anchor investors include the Smallcap World Fund, Government of Singapore, Goldman Sachs, Fidelity Funds among others.
• Nifty Earnings Today: Bajaj Finance, Bajaj Finserv
• Non-Nifty Earnings Today: Agro-tech Foods, Everest Industries, Federal Bank, GMM Pfaudler, Havells India, HDFC AMC, Hindustan Zinc, Indorama Synthetics, L&T Technology Services, Newgen Software, Phillips Carbon Black, Sasken Technologies, Sterlite Technologies, Syngene, Tejas Networks, Tinplate Company of India, VST Industries

Earnings Post Market Hours

ICICI Lombard Q3FY21 (Standalone, YoY)

• Gross Premium Written up 9% at Rs 4,111.7 crore Vs Rs 3,769.5 crore
• Net profit up 7% at Rs 313.5 crore Vs Rs 294.1 crore
• Combined Ratio at 97.9% Vs 98.7%
• Solvency Ratio at 2.76x Vs 2.18x

Tata Communications Q3FY21 (Consolidated, YoY)

• Revenue flat at Rs 4,222.8 crore Vs Rs 4,228.7 crore (Bloomberg Estimate: Rs 4,372 crore)
• Net profit at Rs 309.4 crore Vs Rs 58.8 crore (Bloomberg Estimate: Rs 368.1 crore)
• Ebitda up 38% at Rs 1,046.1 crore Vs Rs 760.8 crore (Bloomberg Estimate: Rs 1,079.2 crore)
• Ebitda margin at 24.8% Vs 18%
• Lower expenses contribute to operational performance
• Strong free cash flow generation aids reduction of net debt
• Net Debt-Ebitda at 1.9x Vs 2.9x last year

Tata Steel BSL Q3FY21 (Consolidate, YoY)

• Revenue up 17% to Rs 5881.14 crore vs Rs 5038.11 crore
• Ebitda up 485% to Rs 1,624.39 crore vs Rs 277.77 crore
• Ebitda Margins at 27.6% vs 5.5%
• Net Profit at Rs 913.19 crore vs Net Loss of Rs 501.5 crore

Larsen & Toubro Infotech Q3FY21 (Consolidated, QoQ)

• Revenue up 5% to Rs 3,152.8 crore vs Rs 2,998.4 crore (Bloomberg Estimate: Rs 3,124.1 crore)
• Ebit up 9% to Rs 650.20 crore vs Rs 595.6 crore (Bloomberg Estimate: Rs 620 crore)
• Ebit Margins 20.6% vs 19.9%
• Net Profit up 14% to Rs 518.7 crore vs Rs 455.6 crore (Bloomberg Estimate: Rs 496.1 crore)
• U.S. Dollar revenue up 5.8% at $427.8 million
• BFSI segment revenue up 4% to Rs 1,439.1 crore Vs Rs 1,378 crore
• Manufacturing revenue up 9% at Rs 531.1 crore Vs Rs 485.4 crore
• Energy & Utilities revenue flat at Rs 316.6 crore
• High-Tech, Media & Entertainment revenue up 5% at Rs 334.2 crore Vs Rs 317 crore
• CPG, Retail, Pharma revenue up 6% at Rs 531.8 crore Vs Rs 500.4 crore
• Cumulative net new TCV of $278 million

Pledge Share Detail

• Adani Enterprises: Promoters (Gautam S. Adani and Rajesh S. Adani) revoked pledge of 9.60 lakh shares on January 15.

As Reported On January 19.

Bulk Deals

• Bombay Dyeing & Manufacturing: Promoter Baymanco Investments bought 54.70 lakh shares (2.65%) at Rs 78.40 per share. Promoter Heera Holdings And Leasing sold 17.52 lakh shares (0.85%) at Rs 78.40 per share. Promoter Sahara Investments sold 18.38 lakh shares (0.89%) at Rs 78.40 per share. Promoter Nidhivan Investments And Trading Company sold 18.80 lakh shares (0.91%) at Rs 78.40 per share.
• Ganesha Ecosphere: Sajjan Bhajanka bought 1.50 lakh shares (0.69%) at Rs 475 per share.
• Fineotex Chemical: Marfatia Nishil Surendra bought 7.66 lakh shares (0.69%) at Rs 67.74 per share and sold 4.89 lakh shares at Rs 67.86 per share.

Trading Tweaks

• Ex-Date Income Distribution (InvIT): IRB InvIT Fund
• Move Out Of Short-term ASM Framework: Gallantt Ispat
• Move Into ASM Framework: Sharda Motor Industries