Stocks To Watch: ICICI Bank, HDFC, HDFC Bank, Marico, Sobha, NFL, Federal Bank

Its a muted start to the new trading week for Asian markets. Investors weigh rising Covid-19 cases against expectations for more policy support. Markets in Japan and South Korea witness modest gains this morning while those in Australia are underperforming.

Futures on the Dow Jones are trading higher by 90 points. Markets were shut in the U.S. on Friday, on account of a holiday.

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

• ICICI Bank: Board to meet on July 8 to consider raising of funds. Funds can be raised via issue of equity shares and/or equity linked securities.
• Shriram Transport Finance: Securities issuance committee to meet on July 6 to consider and determine the terms of the rights issue - including the rights entitlement ratio, issue price and record date. The board had approved rights issue of Rs 1,500 crore on June 15.
• Adani Ports & SEZ: Achieved a throughput of 41.5 MMT across nine operating ports in India for the quarter ended June 30. Mundra Port has become India's largest container port, surpassing the volumes of JNPT in Q1FY21. Board will also meet on July 7 to consider raising funds by issuance of U.S. Dollar denominated foreign currency bonds, for refinancing of existing borrowing and other permissible end uses. The amount should not exceed $1.25 billion on a private placement basis or otherwise.
• L&T Finance Holdings: Share purchase agreement with Proud Securities & Credits, signed in November 2019, has been mutually terminated on July 2 due to non-receipt of necessary regulatory approvals in accordance with the terms of agreement. The company had signed a share purchase agreement to sell 100% stake in L&T Capital Markets (Middle East).
• PI Industries: QIP committee to meet on July 8 to consider issue price.
• Sunteck Realty: Issues commercial paper worth Rs 15 crore with a coupon rate of 7.15%, maturing on October 29, 2020.
• Indiabulls Housing Finance: Allotted 1,500 secured, redeemable NCDs worth Rs 150 crore on a private placement basis.
• VIP Industries: To meet on July 9 to consider issue of NCDs.
• AstraZeneca Pharma India: Gets permission to import and market in Form CT-20 from the Drug Controller General of India for Dapagliflozin film coated tablet 10 mg. The drug is used in the treatment of heart failure with reduced ejection fraction.
• Coal India: Signs JV agreements with NLC India to develop solar and thermal power assets on a pan India basis.
• PNB Housing Finance: CARE Ratings downgrades the company's bank borrowings, NCDs and fixed deposits to CARE AA from CARE AA-. Outlook has been revised to stable from negative.
• Piramal Enterprises: Board approved issue of Non-Convertible bonds up to Rs 76 crore on a private placement basis.
• Edelweiss Financial Services: Expect to raise Rs 1,500-2,000 crore of total equity capital in FY21
• Oil India: Cumulative production loss since May 27, 2020 due to bandhs and blockades stood at 9,072 MT of Crude oil and 11.61 MMSCM of natural gas.
• Non-Nifty Earnings Today: Bodal Chemicals, Suzlon, IFB Industries, IFB Agro, NBCC, Sadbhav Infra.

Companies With Quarterly Updates

HDFC Bank

• Advances up 21% to Rs 10.04 lakh crore
• Deposits up 25% to Rs 11.89 lakh crore
• CASA Ratio as of June 30 at 40% from 39.7%
• Bank purchased loans worth Rs 1,376 crore through direct assignment route under the home loan agreement with HDFC
• All numbers are compared on a year-on-year basis

HDFC

• Profit on sale of investments at Rs 1,241 crore as compared to Rs 1,894 crore last year. This was due to the sale of 2.6 crore shares in HDFC Life.
• Gross income from dividend for the quarter at Rs 298 crore. Did not receive dividend from investment in banks or insurance companies during the quarter as per RBI regulations.
• Assigned loans amounting to Rs 1,376.
• Loans sold in the preceding 12 months amounted to Rs 18,273 crore.

Marico

• General trade and e-commerce channels gained over modern trade due to heightened social distancing concerns.
• Reported volume decline on a year-on-year basis will be in the low teens due to significant skew of revenue and a high base in the first quarter of last year.
• Expect to bounce back and post volume and value growth during the rest of the year.
• International business witnessed mid-single digit decline in constant currency terms but should recover during the course of the year. It is now clocking more than 100% of FY20 monthly average topline led by the Bangladesh business.
• Overall revenues have declined in double digits.
• Aggressive cost control, benign input costs, rationalisation of A&P spends in a few discretionary portfolios, will lead to expansion of operating margins compared to the corresponding quarter last year.
• For balance of FY21, expect operating margins to hold to a minimum of previous year levels.

National Fertilisers

• Highest ever fertiliser sale of 12.85 lakh MT during the quarter.
• Quarterly sales are 21.5% higher as compared to previous year.
• P&K Fertilisers recorded a growth of 13% during the quarter at 5.3 lakh MT
• Sold 4.59 lakh MT of fertilisers in June, up 15.5% as compared to June 2019

Sobha

• Clocked 70% of sales volume during Q1FY21 as compared to Q4FY20.
• Demand remained consistent despite pandemic-related uncertainties.
• Managed to reduce net debt and average interest cost of borrowing during the quarter.
• Reduced net debt for the second straight quarter.
• Bengaluru contributed 74% of total sales volume during Q1FY21.
• Sales volume of 6,50,400 square feet, valued at Rs 488 crore.
• Average realisation during the quarter at Rs 7,498 per square feet.

Federal Bank

• Advances up 8% to Rs 1.23 lakh crore
• Total Deposits up 17% to Rs 1.54 lakh crore
• Customer deposits up 16% to Rs 1.49 lakh crore
• CASA Ratio at 32.02% from 31.44%
• Liquidity Coverage Ratio at 227.79% from 147.38%

Earnings Reported After Market Hours

Indiabulls Housing Finance Q4FY20

• Revenue down 32% to Rs 2,954 crore
• Net profit down 86% to Rs 137 crore
• Provided for 1% of the total loan book i.e. Rs 700 crore from the P&L account due to Covid-19
• Total provisions of Rs 3,741 crore, representing 5.4% of the total loan book.
• Effectively achieved Zero net NPA status and now carries Rs 2,391 crore of extra provisions, representing 3.4% of the total loan book to navigate through Covid-19 and post Covid-19 period.
• Raised $1.27 billion during the last three months, representing 12.5% of total liabilities.
• Gross NPA at 1.84% from 1.94% in the previous quarter.
• Provision Coverage Ratio at 24% from 22%

GATI Q4FY20

• Revenue down 19% to Rs 370.1 crore
• Net loss of Rs 62.9 crore from net profit of Rs 8.2 crore
• Ebitda loss of Rs 18.6 crore from Ebitda positive Rs 26.2 crore
• Express distribution and supply chain revenue down 21% to Rs 280.72 crore
• Fuel Station revenue down 12% to Rs 62.8 crore
• Other sales down 15% to Rs 28.1 crore
• All numbers are consolidated and compared on a year-on-year basis

Himatsingka Seide Q4FY20

• Revenue down 35% to Rs 434.6 crore
• Net loss of Rs 68.8 crore from net profit of Rs 48.3 crore
• Ebitda down 47% to Rs 59.7 crore
• Ebitda margin at 13.7% from 17%
• Other income rises to Rs 36.8 crore from Rs 1.9 crore
• Exceptional item of Rs 43.05 crore owing to write down of inventory due to adverse impact of Covid-19 on sales and profitability
• Expenses incurred on account of restructuring activities of European business worth Rs 12.1 crore
• Hedge ineffectiveness of Rs 11.42 crore as forecasted sales are not expected to occur due to lockdown restrictions
• All numbers are consolidated and compared on a year-on-year basis

Edelweiss Financial Services Q4FY20

• Net Interest Income down 57% to Rs 780 crore
• Net loss of Rs 2,245 crore from net profit of Rs 232 crore
• Total impairment costs at Rs 2,039 crore from Rs 103 crore
• All numbers are compared on a year-on-year basis

South Indian Bank Q4FY20

• Net Interest Income up 19% to Rs 595.7 crore
• Net loss of Rs 143.7 crore from net profit of Rs 70.5 crore
• Provisions nearly triple to Rs 723.7 crore from Rs 260.9 crore
• Gross NPA at 4.98% from 4.96%
• Net NPA at 3.34% from 3.44%
• Net profit and NII compared on a year-on-year basis
• Provisions and NPAs compared on a quarter-on-quarter basis

Pledged Share Details

• Uflex: Promoter Flex International revoked pledge of 2.8 lakh shares on July 4
• Sun Pharma: Promoter Shanghvi Finance revoked pledge of 59.52 lakh shares on June 30
• JSW Energy: Promoter JSW Investments released pledge of 75.8 lakh shares on July 1
• JSPL: Promoter OPJ Trading released pledge of 40 lakh shares between July 1 to 3
• JSW Steel: Promoters OPJ Trading released pledge of 2 crore shares between June 30 to July 1

As Reported On July 3

Who’s Meeting Whom

• Mahindra & Mahindra: To host concall with Premji Invest on July 6, IDFC Mutual Fund and M&G Investments on July 7, Amansa Capital and Several Funds or Investors on July 9 and with Sundaram Mutual Fund on July 10.
• Tata Motors: To host call with SBI Mutual Fund on July 8.
• Balrampur Chini: To meet Dolat Capital and PhillipCapital. To meet analysts or officials of Sharekhan on July 8.

Trading Tweaks

• Price Band Revised From 10% To 5%: Omaxe India
• Price Band Revised From 10% To 20%: Shree Rama Newsprint
• Move Into ASM Framework: Shree Digvijay Cement, Dhanuka Agritech, Reliance Infrastructure, Garden Silk Mills
• Move Out Of ASM Framework: Lemon Tree Hotels, IFB Agro Industries, Mahindra CIE Automotive, CreditAccess Grameen, Shalimar Paints, Kesoram Industries, Graphite India, Lakshmi Vilas Bank, Mukand, LGB Forge, Sundaram Multi Pap, Premier Explosives
• Move Out Of Short-Term ASM Framework: Asahi Songwon Colors, Ashiana Housing, Suven Life Sciences, Electrosteel Castings, Future Consumer, SMS Lifesciences India, Oswal Chemicals & Fertilizers.

F&O Cues

• Nifty July futures closed at 10,572; discount widens to 35 points from 11 points
• Nifty July futures add 2.2% and 2.4 lakh shares in Open Interest
• Nifty Bank July futures closed at 21,844; premium narrows to 8 points from 24 points
• Nifty Bank July futures shed 1% and 15,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.5 from 1.61 across all series
• Stocks In F&O Ban: Glenmark, Indiabulls Housing Finance, Vodafone Idea, SAIL

Nifty: July 9 Expiry

• Maximum Open Interest on Call side at 11,000 call (12.2 lakh shares)
• Maximum Open Interest on Put side at 10,400 strike (23.3 lakh shares)
• Active Options: 10,400 Put (8.3 lakh shares) and 10,700 Call (3.3 lakh shares)

Nifty: July 30 Expiry

• Maximum Open Interest on call side at 11,000 strike (22.8 lakh shares)
• Maximum Open Interest on Put side at 10,000 strike (30.7 lakh shares)

Active Stock Futures & Fund Flows