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Stocks To Watch: Cipla, ITC, Divi’s Laboratories, Balkrishna Industries

Here are the stocks to watch out for in today’s session.

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)
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)

Asian markets have begun the new trading week with gains, in-continuation with last week's risk-on pattern. Benchmark indices in Japan, Australia and South Korea are trading with gains this morning.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 1.3% to 12,424 as of 6:50 a.m.

Futures on the Dow Jones are currently trading 330 points higher. The index closed with modest losses on Friday.

Earnings Fineprint: Cipla Q2FY21

  • Revenue up 14.6% to Rs 5,038.3 crore
  • Net profit up 41.2% to Rs 665.4 crore
  • Ebitda up 29.4% to Rs 1,176.5 crore
  • Ebitda margin at 23% from 21%
  • India business revenue up 17% to Rs 2,090 crore
  • North America business up 10% to Rs 1,049 crore
  • Emerging Markets business up 5% to Rs 474 crore
  • Europe business up 30% to Rs 247 crore
  • API business up 20% to Rs 189 crore
  • All numbers are consolidated and compared on a year-on-year basis

Earnings Fineprint: ITC Q2FY21

  • Revenue up 1% to Rs 11,976 crore
  • Net profit down 20% to Rs 3,232.4 crore
  • Ebitda down 11% to Rs 4,060.6 crore
  • Ebitda margin at 33.9% from 38.4%
  • FMCG revenue up 3.5% to Rs 8,916.2 crore
  • Hotels business revenue down 80% to Rs 82 crore
  • Agri business revenue up 12.8% to Rs 2,985.2 crore
  • Paperboards, paper & packaging revenue down 7% to Rs 1,458.7 crore
  • All numbers are standalone and compared on a year-on-year basis

Earnings Fineprint: Divi's Laboratories Q2FY21

  • Revenue up 21% to Rs 1,749.3 crore
  • Net profit up 45.6% to Rs 515.6 crore
  • Ebitda up 51% to Rs 741.4 crore
  • Ebitda margin at 42.4% from 33.9%
  • Forex loss of Rs 16 crore this quarter as compared to forex gain of Rs 13 crore last year
  • To undertake new capex worth Rs 400 crore to meet new business opportunities in the custom synthesis projects
  • All numbers are consolidated and compared on a year-on-year basis

Stocks To Watch

  • Dilip Buildcon: Emerges as L-1 bidder for development and operation of Siarmal open cast project in Odisha. The mineable reserve to be exploited over a period of 25 years is 1,091 million metric tons and has a contract value of Rs 37,215.6 crore. The company’s arm has also executed a concession agreement with the National Highways Authority of India for a bid cost of Rs 1,140.5 crore for a four-laning project.
  • Biocon: Biocon Biologics has received capital infusion worth Rs 1,125 crore or $150 million from Goldman Sachs. As per terms of the agreement, Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of $3.94 billion.
  • Lakshmi Vilas Bank: Says due diligence with Clix Capital continues. Both sides are in the process of a workable and mutually acceptable framework. The Bank's board has also approved the issue of equity shares worth up to Rs 500 crore through a rights issue and ICICI Securities has been appointed the merchant banker for the same.
  • Voltas: Board gives in-principle approval for restructuring B2B business. Domestic projects business relating to MEP/HVAC and water projects and contracts, the Mining & Construction equipment business and Textile Machinery division will be transferred to a 100% wholly-owned subsidiary on a slump sale basis as a going concern.
  • Adani Gas: Has announced a strategic collaboration with Italy-based Snam - Europe's leading gas infrastructure company. The two intend to explore several opportunities in the energy space. A non-binding agreement has been signed between the two companies to create a Joint Venture for setting-up a CNG compressors manufacturing facility in India.
  • Vedanta: Overseas arm extends loans to Vedanta Resources and its subsidiaries. The loan extended to the parent company now stands at $956 million and carries an interest rate of 7%. The loan during Q1FY21 stood at $307 million. The auditors had expressed their inability to comment on whether the loan has been recorded at fair value. The management believes that these balances have been recorded at fair value.
  • NTPC: Unit-2 of 800 MW of Lara Super Thermal Power Station Stage-I has been declared commercially operative with effect from November 7.
  • Care Ratings: Aditya Birla Sun Life Mutual Fund reduced stake to 3.03% from 5.07% on November 4.
  • ICICI Prudential Life Insurance: Board allotted NCDs worth Rs 1,200 crore.
  • Canara Bank: Cuts MCLR between 5-15 basis points across various tenors from November 7. One-month MCLR now at 6.8% while one-year MCLR at 7.35%.
  • ONGC: Board approves selling 125 crore equity shares or 49% stake in OMPL to MRPL, a subsidiary of the company. The proposed restructuring will not result in any change in the shareholding of MRPL.
  • Aban Offshore: Gets notice from NCLT Chennai for a hearing on November 10 in respect of an application filed by one of the financial creditors under insolvency proceedings for a default of Rs 190.3 crore.
  • Non-Nifty Earnings Today: ADF Foods, Dalmia Bharat Sugar, Delta Corp, Equitas Small Finance Bank, Honeywell Automation, IndiaMART InterMESH, JK Cement, Liberty Shoes, Parag Milk Foods, Shankara Building Products, VIP Industries, Venky's, Zuari Agro.

Earnings Reported After Market Hours

Vedanta Q2FY21

  • Revenue down 3.8% to Rs 21,107 crore
  • Net profit down 61.8% to Rs 824 crore
  • Ebitda up 47.7% to Rs 6,531 crore
  • Ebitda margin at 30.9% from 20.1%
  • Lower power, employee and other expenses aid margins
  • Bottomline impacted due to deferred tax reversal of Rs 1,891 crore in the base quarter
  • All numbers are consolidated and compared on a year-on-year basis

Ashok Leyland Q2FY21

  • Revenue down 28% to Rs 2,837 crore
  • Net loss of Rs 147 crore from net profit of Rs 39 crore
  • Ebitda down 65% to Rs 79.4 crore
  • Ebitda margin at 2.8% from 5.8%
  • All numbers are standalone and compared on a year-on-year basis

Tata Consumer Products Q2FY21

  • Revenue up 19% to Rs 2,781.3 crore
  • Net profit up 18% to Rs 234.3 crore
  • Ebitda up 27% to Rs 399.6 crore
  • Ebitda margin at 14.4% from 13.4%
  • All numbers are consolidated and compared on a year-on-year basis

United Breweries Q2FY21

  • Revenue down 43% to Rs 900.6 crore
  • Net profit down 97% to Rs 4 crore
  • Ebitda down 79% to Rs 40.4 crore
  • Ebitda margin at 4.5% from 12.2%
  • All numbers are standalone and compared on a year-on-year basis

Astral Poly Technik Q2FY21

  • Revenue up 10.1% to Rs 747.1 crore
  • Net profit up 5.6% to Rs 86.7 crore
  • Ebitda up 20.7% to Rs 143.6 crore
  • Ebitda margin at 19.2% from 17.5%
  • The company had to pay higher taxes in the current quarter
  • Margins improve due to lower raw material costs and other expenses
  • All numbers are consolidated and compared on a year-on-year basis

Balkrishna Industries Q2FY21

  • Revenue up 47.4% to Rs 1,578.8 crore
  • Net profit up 16.7% to Rs 339.5 crore
  • Ebitda doubles to Rs 536.8 crore
  • Ebitda margin at 34% from 25%
  • Higher sales and lower raw material costs aid margins
  • All numbers are standalone and compared on a year-on-year basis

Ujjivan Small Finance Bank

  • Net Interest Income up 21.1% to Rs 470.1 crore
  • Net profit up 3.6% to Rs 96 crore
  • Gross advances up 8% to Rs 13,890 crore
  • Gross NPA at 0.98% from 0.97% last quarter
  • Net NPA at 0.14% from 0.18% last quarter
  • All numbers are standalone and NII, Net profit and advances compared year-on-year

IPCA Laboratories Q2FY21

  • Revenue up 5.2% to Rs 1,351.1 crore
  • Net profit up 38% to Rs 267 crore
  • Ebitda up 31.7% to Rs 350.1 crore
  • Ebitda margin at 25.9% from 20.7%
  • All numbers are consolidated and compared on a year-on-year basis

Glenmark Pharma Q2FY21

  • Revenue up 4.9% to Rs 2,952.4 crore
  • Net profit down 8.4% to Rs 234 crore
  • Ebitda up 22.7% to Rs 552.8 crore
  • Ebitda margin at 18.7% from 16%
  • All numbers are consolidated and compared on a year-on-year basis

Trading Tweaks

  • AGM: Asian Granito.
  • Record Date For Buyback: Cosmo Films.
  • Price Band Revised From 5% To 10%: Hathway Cable & Datacom.
  • Price Band Revised From 10% To 5%: Acrysil.
  • Move Out Of ASM Framework: Ramco Systems, V2 Retail, Ganesh Housing Corporation , Mercator, A2Z Infra Engineering, Inspirisys Solutions, Talbros Automotive Components.
  • Move Into Short Term ASM Framework: Care Ratings.
  • Move Out Of Short Term ASM Framework: Lakshmi Automatic Loom Works, Jasch Industries.

F&O Cues

  • Nifty November futures end at 12,262; discount of 4 points from premium of 32 points.
  • Nifty November futures shed 1% and 1 lakh shares in Open Interest.
  • Nifty Bank November futures end at 26,738; discount of 61 points from 6 points
  • Nifty Bank November futures add 3% and 54,000 shares in Open Interest.
  • Nifty Put-Call Ratio at 1.54
  • Enters F&O Ban: JSPL
  • Stocks In F&O Ban: SAIL, JSPL

Nifty: November 12 Expiry

  • Maximum Open Interest on Call side at 12,500 strike (19.3 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (30 lakh shares)
  • Active Options: 12,100 Put (+13 lakh shares) and 12,500 Call (+6.2 lakh shares)

Nifty: November 26 Expiry

  • Maximum Open Interest on Call side at 12,500 strike (17 lakh shares)
  • Maximum Open Interest on Put side at 11,500 strike (24.8 lakh shares)