Stocks To Watch: Hero MotoCorp, Inox Leisure, L&T, PVR, SBI, Titan, Vedanta

Asian stocks opened mostly higher Tuesday, extending a global rally after their U.S. peers pushed back into the green for the year as easing lockdowns bolstered economic optimism. The dollar extended a decline.

Australian stocks were the outperformers, up more than 3%, while equities in South Korea had a more modest advance even as North Korea said it’s determined to shut down all contact with its southern neighbor. Japan’s were little changed.

Here are the stocks to watch in trade today:

• SBI has reduced MCLR by 25 basis points and base rate by 75 basis points, across various tenors with effect from June 10. One-year MCLR at 7% and the base rate at 7.4%. External benchmark linked lending rate reduced to 6.65% from 7.05% with effect from July 1. Repo linked lending rate reduced to 6.25% from 6.65% with effect from June 1.
• L&T: For the quarter ending March 2020, the impact due to Covid-19 on the company's revenues and net profits were approximately Rs 1,800 crore and Rs 400 crore respectively. This was due to stoppage of work in almost all the sites for the last part of March as well as the disruption to the last mile work, like physical inspection, customer clearance etc., that could not be completed due to lockdown restrictions. 90% of the domestic project sites of the Company are working with restricted labour capacity. Raised Rs 9,000 crore of long term debt in April.
• PVR: Board approved raising Rs 300 crore via a rights issue. Continue to incur committed cash outflows, including employee salary pay-outs, other overheads as well as payments for older working capital. This has and will have a significant negative impact on profitability and liquidity during the lockdown and even thereafter till business comes to normalcy. Not be able to run cinemas at normal capacity utilisation levels on account of social distancing measure. Company has taken the relief offered by RBI with respect to the moratorium on interest and principal repayment between March-August. Invoked force majeure clause in agreements for rental and common area maintenance costs. As on March 31, 2020, Company had almost Rs. 316 crores in liquid assets.
• India’s federal ministry of petroleum and natural gas has petitioned the Supreme Court against an arbitration award allowing Vedanta and Videocon Industries to recover $499 million, instead of $198 million capped by the government, for development of Ravva oil and gas fields in the state of Rajasthan, according to updates on the Supreme Court’s website. The case is scheduled to be heard next week.
• Gabriel India on Covid-19 impact: Company has started receiving orders from OEM's, aftermarket customers, export customers after re-opening of the plants. Due to receivable getting delayed, the cash position may be under stress and hope to be normal after improvement in the business cycle, post lockdown.
• GSK Pharma on the financial impact on discontinuation of Zinetac: Zinetac Tablets contributes to less than 5% of the revenue from the operations of the Company, as per the total sales in the last 3 financial years.
• Greenpanel Industries on Covid-19 impact: Operations to become normalized by the third quarter of the financial year 2021. The company incurred cash loss during lockdown period due to fixed expenses and low capacity utilisations. Company has availed moratorium on some of the payments falling due between March and May in order to maintain proper liquidity position. Taking steps to avail the second moratorium in respect of some of the payments falling due between June and August.
• Godavari Power & Ispat on Covid-19 impact: Plants have reached to near normal capacity by 3rd week of May. Seeing good demand for iron ore pellets from global market and prices after falling during April/May have come back to pre-Covid levels. The finished steel business also saw the demand from local markets. The company had cleared repayment of instalment of term loans to the extent of 68% of the amount due for the period of March to May 2020 in advance before lockdown and has opted for a moratorium for the afore-mentioned period.
• RITES received an order for consultancy services from National Highways & Infrastructure Development Corporation for Rs 55 crore.
• DCB Bank: Board to consider raising capital via issue of securities on June 11.
• PNB Housing Finance to consider raising funds via external commercial borrowings up to $750 million and non-convertible debentures as well on June 13.
• Aditya Birla Fashion and Retail has planned to raise Rs 500 crore via commercial papers. (Bloomberg News)

Nifty Earnings

Titan Q4 (Standalone, YoY)

• Revenue down 5.21% at Rs 4,428.8 crore (Est Rs 4,388 crore)
• Net profit up 21.1% at Rs 356.8 crore (Est Rs 285 crore)
• Ebidta up 32.5% at Rs 603.7 crore (Est Rs 443 crore)
• Margins at 13.6% versus 9.8% (Est Rs 10.1%)
• Margins improve due to lower ad expenses
• Higher than expected revenue, lower corporate tax take profit ahead of consensus
• IND AS 116 impact on depreciation and finance costs aide Ebidta margins
• Gross margins up 280 basis points at 30.1%
• Raw material costs down 16.3% at Rs 2,881 crore
• Raw material costs to Revenues at 65% versus 73.6%

Other Earnings

INOX Leisure Q4 (Consolidated, YoY)

• Revenue down 22.4 % at Rs 371.6 crore (Est Rs 390 crore)
• Net loss at Rs 82.2 crore versus Net profit at Rs 48.1 crore (Est Rs 5.3 crore)
• Ebidta up 13.9% at Rs 110 crore (Est Rs 90.7 crore)
• Margins at 29.6% versus 20.2% (Est 23.2%)
• IND AS-116 and Change in taxation impacted EBIDTA numbers and bottomline
• Impact of deferred tax measurement on account of change in tax rate stood at Rs 69.9 crore
• Topline numbers impacted by lockdown due to Covid-19
• Margins also increased because of invocation of force majeure clause under the respective lease agreements for Rs 15.6 crore representing rent and common facility charges.
• 17 Screens added in the Quarter

PVR Q4 (Consolidated, YoY)

• Revenue down 23% at Rs 645.1 crore (Est Rs 688 crore)
• Net loss at Rs 74.5 crore versus Net profit at Rs 46.9 crore (Est Net loss at Rs 51.8 crore)
• Ebidta up 7.41% at Rs 172.6 crore (Est Rs 120 crore)
• Margins at 26.8% versus 19.2% (Est 17%)
• IND AS-116 and Change in taxation impacted EBIDTA numbers and bottomline
• Impact of deferred tax measurement on account of change in tax rate stood at Rs 31.7 crore
• Admits down 29% at 19.5 lakh
• Movie Ticket sales down 27% at Rs 330 crore
• F&B sales down 25% at Rs 174.6 crore
• 24 Screens added in the Quarter

Chalet Hotels Q4 (Consolidated, YoY)

• Revenue down 15.8% at Rs 227.3 cr vs Rs 269.9 cr
• Net profit up 3.2 times at Rs 42.8 crore
• Ebidta down 35% at Rs 63.2 crore
• Margins at 27.8% versus 36%
• Deferred tax reversal of Rs 38.8 crore in current quarter impacted profit
• Margins impacted by employee expenses and topline numbers.
• Occupancy down 2100 basis points at 61%
• Hotel and Retail properties in Bengaluru are fully operational
• Development of two hotels in Mumbai and completion of a hotel deferred to 2021.
• Average Daily revenue at Rs 8,890 versus Rs 8,852
• RevPAR down 26% at Rs 5,386
• Steady revenue rental revenues in commercial leasing continues in current scenario

Earnings Today

• HeroMoto Corp
• Bombay Dyeing
• eClerx Services
• Teamlease Services
• Graphite India
• Century Enka
• Gujarat Pipavav Port
• Kirloskar Ferrous
• KRBL
• Mangalore Refinery and Petrochemicals
• PSP Projects
• Tata Steel Long Products

Bulk Deals

• Coffee Day Enterprises: Kotak Mahindra Investments sold 12.85 lakh shares (0.61%) at Rs 14.05 per share.

Pledged Share Details

• Sun Pharma promoter Shanghvi Finance revoked pledge of 57 lakh shares on June 5
• JSPL promoters revoked pledge of 1 crore shares from June 3-5
• GATI promoter Mahendra Agarwal HUF invoked pledge of 75,000 shares on June 4
• Olectra Greentech promoter LP Sashikumar released pledge of 5 lakh shares on June 2
• Max India promoter Max Ventures Investment Holdings released pledge of 9.5 lakh shares on June 4

(As Reported On June 8)

Who’s Meeting Whom

• SH Kelkar to meet Sundaram AMC, Seven Canyon Advisors and other investors from June 9-10
• Symphony to meet ENAM AMC on June 10
• Heidelberg Cement to meet ICICI Pru MF on June 9

Trading Tweaks

• Ex-Date For Share Buy-Back: Tanla Solutions
• Price Band Revised From 20% To 10%: Alphageo, GFL
• Move Into ASM Framework: Orient Green Power, Ind-Swift Laboratories, Cox & Kings, Punj Lloyd, FCS Software Solutions
• Move Into Short-Term ASM Framework: Power Mech Projects, Raymond, CESC Ventures, GFL, Century Extrusions, Zensar Technologies, Prince Pipes And Fittings, Tejas Networks, Religare Enterprises, Indo Count Industries, Astra Microwave Products, Suzlon Energy
• Move Out Of Short-Term ASM Framework: Alok Industries

Insider Trading

• Apollo Tyres promoter PTL Enterprises acquired 11.15 lakh shares from June 3-5
• Nesco promoter Chandler and Price acquired 7,573 shares on June 5
• Alembic promoter Nirayu acquired 39.26 lakh shares on June 5
• Aarti Industries promoter Jaya Gogri sold 15,024 shares on June
• Mindtree promoter sold 44,500 shares from June 4-6
• SH Kelkar promoter Kedar Vaze acquired 15.54 lakh shares on June 5
• Quess Corp promoter Ajit Isaac acquired 17,700 shares on June 5

(As Reported On June 8)

Money Market Update

• The rupee ended stronger at Rs 75.54 against the dollar on Monday versus Rs 75.58 against the dollar on Friday.
• Rupee snapped three-day losing streak.

F&O Cues

Index Futures

• Nifty June futures closed at 10,165, discount of 2 points versus premium 3 points
• Nifty June futures open interest up 1.8%, adds 1.8 lakh shares in open interest
• Nifty Bank June futures closed at 21,162, premium of 10 points versus discount 10 points
• Nifty Bank June futures open interest up 3.6%, adds 52,000 shares in open interest
• India VIX up 3.4% at 29.6

Options

• Nifty PCR at 1.37 versus 1.50 (across all series)
• Nifty Weekly Expiry: June 11
• Max open interest on call side at 10,500 (25.1 lakh shares)
• Max open interest on put side at 10,000 (22.5 lakh shares)
• Active options: 10,000 Put (+6.6 lakh shares), 10,400 Call (+9.6 lakh shares)

Nifty Monthly Expiry: June 25

• Max open interest on call side at 11,000 (16.9 lakh shares)
• Max open interest on put side at 9,500 (29.5 lakh shares)

Securities In Ban

• New In Ban: Idea, Just Dial
• In Ban: BHEL, NCC, Idea, Just Dial