Stocks To Watch: Biocon, Glenmark Pharma, L&T, PNB Housing Finance, Vodafone Idea

Asia stocks opened modestly lower on Thursday as investors weighed doubts on the timing of a new U.S. spending bill and concern about an escalation of tensions with China. The dollar continued to edge lower, near the weakest since March. Shares in South Korea and Australia slipped, with Japan closed Thursday and Friday for holidays.

Here are the stocks to watch in trade today:

• India’s Supreme Court has rejected a petition by the income tax department, which had challenged a lower court’s verdict asking it to refund Rs 833 crore to Vodafone Idea. (Bloomberg News)
• Glenmark Pharma: Phase 3 clinical trial of Favipiravir demonstrated statistically significant faster time to clinical improvement with Favipiravir treatment in mild to moderate Covid-19 patients compared to control. On June 20, Glenmark Pharma announced that it received manufacturing and marketing approval from India’s drug regulator for Favipiravir, making it the first oral approved medication in India for the treatment of mild to moderate Covid-19. The company said that medicine has 40% faster clinical cure.
• Bajaj Auto on Covid-19 impact: All manufacturing operations came to a near standstill for period ranging from 28 to 43 days between March and May. Able to ramp-up production to almost 70% of normal levels. However, things are far from normal as this is an unstable recovery due to sporadic local shutdowns in various parts of the country impacting both, demand as well as supply chain.
• Coal India to publish a notice inviting registration for special spot e-auction scheme for import substitution (only for coal importers) on July 23, in newspapers.
• Tata Steel: LIC increased its stake in the company from 8.96% to 10.98% from August 2017 to July 2020.
• eClerx Services has closed its buyback, after buying back 20.93 lakh shares as Rs 522.97 per share aggregating to Rs 109.5 crore. Entire amount has been utilized, and the afore-mentioned shares will be extinguished.
• GMM Pfaudler: Board to approve signing of definitive documents with De Dietrich Process Systems India for acquisition of their manufacturing facility at Hyderabad, Telangana on an itemized sale basis on July 29.
• Future Retail has missed payment due on dollar bonds. Company said that Covid-19 has impacted the company’s liquidity position and it missed service of payment of interest due on USD Notes on July 22. Terms of issuance allows for another 30 days for payment of interest and company proposes to make payment of interest within the 30 day period.
• Cox & Kings has clarified that it has received no information/written communication from Mumbai police on enquiry against the company in the IndusInd Bank case.
• Infosys launched digital solution to reskill the American workforce and fulfill employment needs following Covid-19.

Nifty Earnings

L&T Q1 (Consolidated, YoY)

• Revenue down 28.3% at Rs 21,260 crore (Est Rs 20,768 crore)
• Net profit down 79.4% at Rs 303.1 crore (Est Net loss at Rs 468 crore)
• Ebitda down 47.2% at Rs 1,620.5 crore (Est Rs 1,150 crore)
• Margins at 7.62% versus 10.4 % (Est 5.56%)
• YoY numbers are not comparable as previous year does not include Mindtree.
• Ebidta has beaten Bloomberg consensus estimates
• Exceptional gain of Rs 224.7 crore due to sale of wealth management business of L&T Finance and deferred tax reversal of Rs 307 crore increase current quarter’s bottom line numbers
• Net income impacted mainly due to lower revenue, credit provisions in Financial Services business and under recovery of overheads.
• New order down 39% at Rs 23,574 crore characterized by low interest towards fresh investment and deferment of award decisions.
• Consolidated order book up 4% at Rs 305,083 crore

Other Earnings

ICICI Securities Q1 (Consolidated, YoY)

• Revenue up 41.3% at Rs 546 crore
• Net profit up 69.7 % at Rs 193.1 crore
• Brokerage income up 62% at Rs 355.7 crore
• Active clients up 15% at 1.5 million
• Equity market share up 260 basis points to 10.7%
• Derivative market share up 150 basis points to 8.9%
• Private wealth management revenue up 36% at Rs 77 crore
• 80,000 clients were added in current quarter, Total clients at 4.9 million

Rallis Q1 (Consolidated,YoY)

• Revenue up 6.33% at Rs 662.7 crore (Est Rs 704 crore)
• Net profit up 52.2 % at Rs 91.9 crore (Est Rs 83 crore)
• Ebitda up 35.3% at Rs 128.3 crore (Est Rs 117 crore)
• Margins at 19.4% versus 15.2% (Est 16.6%)
• Raw material cost as % of sales at 60.3% versus 62.6%
• Margins improve due to lower raw material costs and other expenses
• Expects the domestic demand to remain buoyant for crop care products and exports to gradually pick up as well.
• Metribuzin 500MTPA commissioned in July, although production is likely to be low due to market softness.
• New formulation plant is expected to be commissioned in phases in Dec. 2020 and Mar 2021

Astec LifeSciences Q1 (Consolidated,YoY)

• Revenue up 45.3% at Rs 111.9 crore
• Net profit at Rs 16.2 crore versus Net loss at Rs 1.1 crore
• Ebitda up 4.3 times at Rs 28.2 crore
• Margins at 25.2% versus 8.44%
• Margins improve due to lower raw material costs

Earnings Today

• Biocon
• MphasiS
• PNB Housing Finance
• Radico Khaitan
• Coromandel Engineering
• Dish TV
• ABB India
• Agro Tech Foods
• AU Small Finance Bank
• GM Breweries
• HDFC Asset Management
• Mahindra EPC Irrigation
• Pioneer Distilleries
• SKF India
• Sterlite Technologies
• Supreme Petrochem
• Tube Investments
• Zensar Technologies
• Repco Home Finance

Pledged Share Details

• Emami promoter Bhanu Vyaapar released pledge of 53 lakh shares on July 21
• Jamna Auto promoter Map Auto-created pledge of 3.71 lakh shares on July 20

(As Reported On July 22)

Bulk Deals

• Indiamart Intermesh: Accion Frontier Inclusion Mauritius sold 1.75 lakh shares (0.61%) at Rs 2,251.4 crore.
• Trident: Promoter Trident Group acquired 4.8 crore shares (0.94%) at Rs 6.25 per share.
• Shriram Transport Finance Rights Issue: Societe General acquired 1.47 lakh rights shares at Rs 102.04 per rights share.

Trading Tweaks

• IPO: Rossari Biotech to be listed on bourses
• AGM Date: Sobha, Tech Mahindra, Asian Paints, Shriram City Union Finance, CESC, Orient Cement, Biocon, HDFC AMC, JSW Steel, Mphasis, NIIT Tech, SKF, Tube Investments, Transpek Industries
• Record Date For Rights Issue: Mahindra & Mahindra Financial Services (Rights issue at 1:1, premium at Rs 48 per share)
• Ex-Date For Rights Issue: Gateway Distriparks (Rights issue at 4:27, premium at Rs 62 per share)
• Price Band Revised From 10% To 5%: Hathway Cable & Datacom, Kuantum Papers, Tanla Solutions
• Price Band Revised From 20% To 10%: Matrimony.Com
• Move Out Of Short-Term ASM Framework: Simplex Infrastructures
• Move Into ASM Framework: Everest Kanto Cylinder, Ujaas Energy

F&O Cues

• Nifty July futures closed at 11,111, discount 22 points versus premium of 8 points
• Nifty July futures open interest down 2.5%, sheds 2.7 lakh shares in open interest
• Nifty Bank July futures closed at 22,804, discount 78 points versus premium of 24 points
• Nifty Bank July futures open interest up 5.7%, adds 89,000 shares in open interest

Nifty Monthly Expiry: July 23

• Max open interest on call side at 11,200 strike (34.1 lakh shares)
• Max open interest on put side at 11,000 strike (37.9 lakh shares)
• Active options: 11,000 Put (+6 lakh shares), 11,200 Call (+7.3 lakh shares)

Nifty Monthly Expiry: July 30

• Max open interest on call side at 11,500 strike (31.7 lakh shares)
• Max open interest on put side at 10,000 strike (37.3 lakh shares)