Stocks To Watch: Bharti Airtel, Dr. Reddy’s, IndusInd Bank, InterGlobe Aviation, Maruti Suzuki, Nestle, RBL Bank, TVS Motor, Yes Bank
A man is silhouetted while jogging in the morning. (Photographer: SeongJoon Cho/Bloomberg)  

Stocks To Watch: Bharti Airtel, Dr. Reddy’s, IndusInd Bank, InterGlobe Aviation, Maruti Suzuki, Nestle, RBL Bank, TVS Motor, Yes Bank

Asian stocks opened mixed as investors awaited the conclusion of the Federal Reserve’s policy meeting. Treasuries held overnight gains and the dollar steadied. Shares slipped in Japan and Australia, while those in South Korea ticked up.

Here are the stocks to watch in trade today:

  • IndusInd Bank: Board has approved the preferential issue of up to Rs 3,288 crore. Promoters of bank are also participating in the fundraise. Issue of over 4.76 crore equity shares at an issue price of Rs 524 crore to qualified institutional buyers like Route One Offshore Master Fund, Route One Fund, ICICI Prudential Life Insurance, Tata Investment Corporation and AIA. Issue over 1.51 crore equity shares at an issue price of Rs 524 crore to Hindu Capital Ltd and IndusInd International Holdings. One year lock-in for QIB investors and 3-year lock in for promoters and Hinduja Capital. Post fund raising CET-1 Ratio will rise to 14.4%.
  • IDBI Bank: MD and CEO, Rakesh Sharma said that slowly the moratorium numbers are coming down and overall, 56% of loan book is under moratorium at present coming down from 66% in the first phase. On average corporate 61% availed moratorium and on retail 55% availed moratorium in terms of value of loan book. Bank found that whoever availed moratorium have been partly been repaying and at least 30% of borrowers who have an account with the Bank have money in their accounts therefore, they have taken the moratorium as a precaution. Finalised the team non-core asset sale of IDBI Mutual Fund for which Bank is waiting for regulators approval. As far as IDBI Federal Life Insurance is concerned Bank decided to sell its share. Around 23% will go to Ageas Insurance International N.V and 4 per cent to Federal Bank, we will retain 21%.
  • Godrej Properties approved allotment Rs 1,000 crore worth of NCDs on a private placement basis.
  • SH Kelkar increased its stake from 51% to 100% in Creative Flavours and Fragrances S.p.A. for 16 million euros. The target company is a fragrance company in Italy.
  • Future Retail: Care Ratings has downgraded long-term banking facilities, NCDs and long term loans to CARE BB from CARE A-, due to weakening of business and financial risk profile on account of extended lockdown due to Covid-19.
  • Info Edge’s stake in Ustraa to fall from 42.3% to up to 30%, after the Ustraa raised Rs 50 crore from IIFL Private Equity Fund. Shareholders approved issuing equity shares via qualified institutional placement.
  • CDSL arm has received approval from UIDAI to act as a local authentication user agency /e-KYC user agency.
  • Mindspace Business Parks REIT IPO subscribed 1.21 times on Day 2.Institutional subscription at 0.83 times. Retail subscription at 1.65 times. Institutional category doesn’t include anchor portion.
  • Raymond to consider raising funds via NCDs on July 31

Nifty Earnings

Nestle Q2CY20 (Standalone, YoY)

  • Revenue up 1.7% at Rs 3,050 crore (Est Rs 3,205 crore)
  • Net profit up 11.2% at Rs 487 crore (Est Rs 525 crore)
  • Ebitda up 4.9% at Rs 747 crore (Est Rs 790 crore)
  • Margins at 24.5% versus 23.7% (Est 24.6%)
  • Reported a muted quarter, below consensus expectations
  • Domestic sales up 2.6% at Rs 2908 crore
  • Exports down 8.8% at Rs 134 crore

IndusInd Bank Q1 (Standalone,YoY)

  • Net Interest Income up 16.4% at Rs 3,309.2 crore
  • Net profit down 67.8% at Rs 460.6 crore
  • Provisions at Rs 2,258.9 crore versus Rs 430.6 crore
  • GNPA at 2.53% vs 2.45% QoQ
  • NNPA at 0.86% vs 0.91% QoQ
  • Made additional floating provisions of Rs 500 crore during the quarter, in addition to Rs 260 crore provisions made in March 2020 quarter, related to Covid-19
  • Recognised a fraud of Rs 960 crore and has provided for the full amount
  • Moratorium numbers have come down to 16% of total loan book from 50% as of April

Other Earnings

Yes Bank Q1 (Standalone,YoY)

  • Net Interest Income down 16.3% at Rs 1,908.2 crore
  • Net profit down 60.1% at Rs 45.4 crore
  • Provisions at Rs 1,086.6 crore versus Rs 1,784.1 crore
  • GNPA at 17.3% versus 16.8% QoQ
  • NNPA at 4.96% versus 5.03% QoQ
  • Despite less provisions, profit fell due to higher other income in base quarter
  • Other income at Rs 620.7 crore versus Rs 1,272.7 crore
  • Numbers are not comparable as Bank went through restructuring
  • Been able to repay 50% of the borrowing from RBI's special liquidity window
  • Overall Covid related provisions by the bank have been at Rs 880 crore
  • Rs 642 crore worth Covid-19-related provisions made in current quarter
  • Moratorium-Have reached 70% collections in retail book
  • 91% of retail customers under moratorium have not remained in delinquency for more than 30 days in the last 12 months.

RBL Bank Q1 (Standalone,YoY)

  • Net Interest Income up 27.5% at Rs 1,041.3 crore
  • Net profit up 47.5% at Rs 141 crore
  • Provisions at Rs 500.2 crore versus Rs 196.7 crore
  • GNPA at 3.45% vs 3.62% QoQ
  • NNPA at 1.65% vs 2.05% QoQ
  • Covid-related provisions worth Rs 240 crore in current quarter.
  • Cumulative Covid-related provisions between Q4FY20 and Q1FY21 stands at Rs 350 crore
  • Majority of Covid related provisions are towards credit card portfolio
  • Moratorium down to 13.7% of loan book, from 33% in Q4FY20
  • Seeing a sharper reduction of moratorium amount in wholesale book
  • 30% Non-wholesale book is under moratorium
  • 11% of number of customers in credit card portfolio and 22% in value terms is under moratorium
  • Collections in microfinance book was at 77% in July, as compared to the whole book being under moratorium in April.

Hexaware Tech Q2CY2020 (Consolidated,YoY)

  • $ Revenue up 10.4% at $208 million
  • Revenue up 19.9% at Rs 1,569.1 crore (Est Rs 1,484 crore)
  • Net profit up 1% at Rs 152.4 crore (Est Rs 131 crore)
  • Ebitda up 28.1% at Rs 271.3 crore (Est Rs 237 crore)
  • Margins at 17.3% versus 16.2%
  • Exceptional loss of Rs 17 crore in base quarter
  • Profit impacted by higher employee expenses

Castrol India Q2CY2020 (Standalone,YoY)

  • Revenue down 52.8% at Rs 490.6 crore
  • Net profit down 64.2% at Rs 65.4 crore
  • Ebitda down 66.5% at Rs 95.3 crore
  • Margins at 19.4% versus 27.3%

NIIT Tech (Coforge) Q1 (Consolidated, YoY)

  • Revenue up 9.8% at Rs 1,057 crore (Est Rs 1,087 crore)
  • Net profit down 8.8% at Rs 79.9 crore (Est Rs 106 crore)
  • Ebitda up 22.4% at Rs 169.5 crore (Est Rs 180 crore)
  • Margins at 16% versus 14.4%
  • Profit impacted by higher employee expenses and exceptional loss of Rs 18 crore
  • Order intake of US$ 186 mn, with 3 significant deals secured
  • Sequentially revenue impacted due to sharp decline in travel and transport vertical
  • Order book for next 12 months up 18% at $465 million

Max Ventures Q1 (Consolidated,YoY)

  • Revenue down 39.2% at Rs 258.6 crore
  • Net profit down 47.2% at Rs 13.1 crore
  • Ebitda down 8.28% at Rs 52 crore
  • Margins at 20.1% versus 13.3%
  • Margins increase due to lower raw material costs and other expenses
  • Speciality films segment revenue at Rs 251.2 crore versus Rs 243.7 crore

Welspun Corp Q1 (Consolidated,YoY)

  • Revenue up 1.07% at Rs 2,069 crore
  • Net profit down 56.1% at Rs 51.9 crore
  • Ebitda down 9.8% at Rs 180.3 crore
  • Margins at 8.71% versus 9.77%
  • Profits impacted by higher taxes and margins decreased due to higher raw material costs

Quess Corp Q1 (Consolidated, YoY)

  • Revenue up 0.6% at Rs 2,409.4 crore (Est Rs 2,283 crore)
  • Net profit down 28% at Rs 33.8 crore (Est Rs 15 crore)
  • Ebitda down 12.2% at Rs 129.6 crore (Est Rs 111 crore)
  • Margins at 5.37% versus 6.18%
  • Margins impacted by higher employee cost
  • Exceptional gain of Rs 25 crore due to fair value gain on acquisition in Terrier Security Services
  • Net debt reduced by Rs 100 crore to Rs 354 crore
  • Added 200 new customers in current quarter

Earnings Today

  • Bharti Airtel
  • Dr. Reddy's Laboratories
  • Maruti Suzuki
  • TVS Motor
  • Phoenix Mills
  • InterGlobe Aviation
  • GlaxoSmithKline Pharmaceuticals
  • Manappuram Finance
  • Union Bank of India
  • Carborundum Universal
  • CEAT
  • Chambal Fertilizers & Chemicals
  • Colgate Palmolive
  • Navin Fluorine
  • International Nectar Lifesciences
  • Pricol
  • Rail Vikas Nigam
  • Sagar Cements
  • Sasken Technologies
  • Genus Power Infrastructures
  • GMM Pfaudler
  • Heritage Foods
  • Indian Energy Exchange
  • JK Paper
  • Mahindra Lifespace Developers
  • Security and Intelligence Services

Pledged Share Details

  • Max Financial Services promoter Max Ventures and Investment Holdings created pledge of 15.1 lakh shares from July 21-22.
  • Emami promoters released pledge of 2.5 crore shares from July 24-28
  • Jindal Steel & Power promoter Danta Enterprises revoked pledge of 26 lakh shares on July 23
  • Omaxe promoter Guild Builders created pledge of 1.1 lakh shares on July 24
  • GTPL Hathway promoters released pledge of 5.65 lakh shares on July 22

(As Reported On July 28)

Trading Tweaks

  • AGM Date: Alembic, Bata, UltraTech Cement, Deepak Nitrite, GM Breweries, Jyothy Labs, Colgate Palmolive, Carborundum Universal, Info Edge, Indiabulls Housing Finance, TVS Motor, VST Industries
  • Record Date For Rights Issue: Spencer’s Retail (2:15, at a premium of Rs 70 per share)
  • Fund Raising: Bharat Forge
  • Price Band Revised From 10% To 5%: IVP, Shree Pushkar Chemicals & Fertilisers
  • Move Into ASM Framework: 5Paisa Capital
  • Move Into Short-Term ASM Framework: INEOS Styrolution, Future Enterprises, Paushak, Shivalik Rasayan, Medicamen Biotech

Insider Trades

  • Welspun Group promoter Balkrishna Goenka acquired 35 lakh shares on July 28

(As Reported On July 28)

F&O Cues

  • Nifty July futures closed at 11306, premium 6 points vs discount of 10 points
  • Nifty July futures open interest down 13%, sheds 10.7 lakh shares in open interest
  • Nifty Rollovers across all series 46%
  • Nifty Bank July futures closed at 22177, premium 72 points vs premium 10 points
  • Nifty Bank July futures open interest down 18%, sheds 2.4 lakh shares in open interest
  • Nifty Bank Rollovers across all series 37%

Nifty Monthly Expiry: July 30

  • Max open interest on call side at 11500 (43 lakh shares)
  • Max open interest on put side at 11000 (50.3 lakh shares)
  • Active options: 11200 Put (+22 lakh shares), 11700 Call (-15 lakh shares)

Ban List

  • In Ban: Can Bank, IBullHSGFin, Idea, IndusInd Bank
  • Out of Ban: Adani Ent, BHEL, GMR Infra, RBL Bank, SAIL
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