Stocks To Watch: HDFC Bank, Just Dial, Sintex, HCL Tech, HDFC Life, Nippon Life
Indian equity benchmarks ended little changed, capping their best weekly stretch of gains in over a month as investors focussed on the quarterly earnings season amid hopes of economic revival. The S&P BSE Sensex was little changed at 53,140.06, after hitting a new peak of 53,290.81 during the session. The NSE Nifty 50 too ended flat at 53,140.06, after touching an all-time high of 15,962.25. Both the indices have gained nearly 1.5% this week, their best performance since June 6.
Stocks To Watch
Punjab Chemicals and Crop Protection: Released its annual report. Posted a consolidated revenue growth of 23% year-on-Year to Rs 678.2 crore in FY21. Ebitda also rose 75% at Rs 97.3 crore during the year. Profit after tax for the year stood at Rs 49.1 crore. A dividend of Rs 2 per share for the fiscal was also declared.
Tata Power, HPCL: The two firms have partnered to provide end-to-end EV charging stations at HPCL’s petrol pumps in multiple cities and major highways across the country.
Sintex: Said damage caused due to Cyclone Tauktae at the company’s plant at Lunsapur, Gujarat affected capacity utilization. It added that restoration work is in progress and 50% of capacity utilization has been achieved.
SMC Global Securities: Released its annual report. Chairman Subhash Chand Aggarwal said the year under review was the “most challenging” for the industries and businesses all over the world. He added that operations of some essential service providers including securities market intermediaries being allowed to operate with limited onsite capacity helped the company continue its operations.
Kirloskar Group: Kirloskar Oil Engines, Kirloskar Chillers, Kirloskar Pneumatic, Kirloskar Ferrous Industries and Kirloskar Industries have undertaken a refresh, spanning business vision, offerings, technology, brand articulation and employee practices. The “refresh” will span over eight business areas, laying the foundation for plans in the B2C domain whilst continuing to power growth in the B2B companies. This will include large investments over two to three years across all business lines. This also involves infusion of new technologies, apart from new offerings including real estate and NBFC.
Shree Cement: Released its annual report. The company posted 35.4% growth in revenue and 30.4% growth in Ebitda during the second half of FY21 compared to first half of the year, leading to overall annual revenue growth of 5.7% and Ebitda growth of 11.8% year-on-year. The company also plans to achieve 80 million tonnes per annum capacity by 2030.
Century Plyboards India: Increased its shareholding in Century Infotech from 60.06% to 99.81% consequent upon acquisition of 19,85,280 shares from other existing shareholders.
Bank of Maharashtra: The bank closed the offer period of qualified institutional placement. It received Rs 403.7 crore in funds from eligible qualified institutional buyers. The bank had issued shares at a price of Rs 23.7 per share, a 4.78% discount to the floor price of Rs 24.89 it had determined.
AstraZeneca Pharma India: Released its annual report. The company’s sales fell to Rs 776.8 crore as against last year’s sales of Rs 801.3 crore. The company said performance for the current year was impacted mainly due to loss of exclusivity of Ticagrelor (Ex-Tica Growth of 9.3%). In addition, the global pandemic also led to significant impact on the healthcare industry resulting in drastic reduction in patient footfall in hospitals coupled with postponement of elective procedures by the patients.
Prism Johnson: India Ratings and Research has assigned A+ (stable) to the company’s long-term issuer rating, NCDs, term loans, fund-based limits. It has assigned an A1+ rating to its non-fund-based working capital limits, unsecured short-term loans and commercial paper programme. It has assigned an AA- rating to its term deposit programme.
Patel Engineering: Approved the allotment of 1.37 crore equity shares at a price of Rs 14.78 per share to Canara Bank, aggregating to Rs 20.36 crore.
Matrimony.com: Released its annual report. The company reported a revenue of Rs 377.87 crore during the year, a growth of 1.63% year on year. Ebitda stood at Rs 70.58 crore, an increase of 25.99%. The company’s consolidated net profit was at Rs 40.77 crore, an increase of 38.05%. It added that it sw an impact on billing in the last 2 weeks of March 2020 in the matchmaking business. This affected the business in Q1 of FY21, where it declined 14.32% quarter-on-quarter. It added that it saw a big uptick in paid profiles.
Indian Overseas Bank: Released its annual report. The bank said it has posted a net profit of Rs 831 crore for the fiscal year after continuously posting net losses during the last 6 years. Gross NPA has also substantially reduced from Rs 19,913 crore to Rs16, 323 crores.
Nesco: Released its annual report. The company’s consolidated turnover fell to Rs 355.69 crore from Rs 474.27 crore. Profit before tax for the year also fell to Rs 216.30 crore as compared to Rs 292.28 crore. A dividend of Rs 3 per equity share was recommended.
AkzoNobel India: Released its annual report. Revenue from operations for the year fell 9% to Rs 2421.4 crore while profit fell 12.5% to Rs 207.6 crore. The company said the fiscal was unprecedented and that external variables like Covid-19 impacted economic growth, demand, commodity price and currency movement.
Just Dial, Reliance Retail Ventures: Reliance Industries Ltd.’s retail unit agreed to buy majority stake in local search and listings firm Just Dial Ltd. for Rs 5,719 crore. Reliance Retail Ventures Ltd. will acquire 25.35% via preferential allotment of 2.11 crore shares at Rs 1,022.25 apiece, totalling Rs 2,164.9 crore, according to an exchange filing. The preferential issue will be at a 4.9% discount to Friday's closing price of Rs 1,073 apiece.
Future Consumer: National Company Law Tribunal, Mumbai Bench has allowed the scheme of arrangement between Athena Life Sciences and Future Consumer.
Earnings To Watch: Mangalam Cement (July 18), HCL Technologies, ACC, Allsec Technologies, Alok Industries, GTPL Hathway, HDFC Life Insurance Company, Indian Bank, Mastek, Nippon Life India Asset Management, PSP Projects, Supreme Petrochem, Swaraj Engines
Stocks That May React To Earnings
HDFC Bank (Q1FY22, Consolidated, QoQ)
Net profit Rs 7,729.62 crore vs estimate Rs 7,931 crore.
Net interest income Rs 17,009 crore vs. estimate Rs 17,634 crore
GNPA: 1.47% vs 1.32% (QoQ)
NNPA: 0.48% vs 0.4% (QoQ)
Advances rose 14.4% YoY to Rs 11.47 lakh crore.
Been through unprecedented times last year and even this financial year, Sashidhar Jagdishan, MD & CEO, HDFC Bank said. He said the these are the worst of times the bank could have been through but the results were "reasonably healthy".
Just Dial (Q1FY22, Consolidated, QoQ)
Loss of Rs 3.52 crore vs profit of Rs. 33.57 crore
Revenue down nearly 6% at Rs 165.4 crore vs Rs 175.7 crore
To optimize discretionary costs, the company had curtailed its advertising spends in FY21. However, advertising spends accelerated to nearly Rs 50 crore during Q1FY22 to promote the newly launched B2B platform, JD Mart. The second wave restrictions impacted collections during Q1FY22, which stood at Rs 142.6 crores, down 28.9% QoQ. Traffic and monetization should recover hereon with COVID second wave impact abating, the company said.
Pledge Share Details
Adani Enterprises: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 21.3 lakh shares on July 14.
Adani Ports and Special Economic Zone: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 2.69 crore shares on July 14.
Adani Transmission: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 22.7 lakh shares on July 14.
Adani Green Energy: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 22.5 lakh shares on July 14.
Record Date Final Dividend: Pressman Advertising, Redington (India), Rane Brake Lining
Ex-Date Final Dividend: NIIT, Tide Water Oil Company (India)
Price Band Revised From 10% To 5%: Biofil Chemicals & Pharmaceuticals, Emami Realty, Manaksia Steels
Price Band Revised From 20% to 10%: Avro India, Central Depository Services (India), Shyam Century Ferrous, TARC
Move Into Short-Term ASM Framework: Emkay Global Financial Services, ABM International, Manaksia Steels, HB Stockholdings, GKW, Biofil Chemicals & Pharmaceuticals
Move Into Long-Term ASM Framework:Precision Camshafts, Nitin Spinners, Cybertech Systems and Software, Sobha, Marvel Decor
Move Out Of Short-Term ASM Framework: Vineet Laboratories
Securities that continue to be in the ban list: Indiabulls Housing Finance, Vodafone Idea, NMDC, PNB, SAIL, Sun TV
Securities removed from ban list: Granules India, Nalco
NIIT, Tide Water Oil Company (India)