Stocks To Watch On Budget Day: ICICI Bank, Tata Motors, Cipla, UPL, Tata Power

Indian equities have had six consecutive days of declines ahead of the Union budget to be presented today. The last instance of the markets declining for six straight days ahead of a Union Budget was back in February 2001.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.5% to 13,659 as of 6:55 a.m.

Nifty Earnings

Cipla Q3FY21 (Consolidated, YoY)

• Revenue up 18% at Rs 5,168.7 crore Vs Rs 4,371 crore (BBG Estimate: Rs 4,940.6 crore)
• Net profit up 113% at Rs 748.1 crore Vs Rs 351 crore (BBG Estimate: Rs 604.9 crore)
• Ebitda up 62% at Rs 1,231 crore Vs Rs 758.4 crore (BBG Estimate: Rs 1,069.1 crore)
• Ebitda margin at 23.8% Vs 17.4%
• India business grew 22% year-on-year to Rs 2,231 crore Vs Rs 1,834 crore.
• North America sales rose 10% from last year to Rs 1,037 crore Vs Rs 946 crore.
• Emerging Market sales saw a jump of 51% year-on-year to Rs 488 crore Vs Rs 323 crore
• European business revenue grew 33% from the previous year to Rs 252 crore Vs Rs 190 crore

ICICI Bank Q3FY21 (Standalone, YoY)

• Net Interest Income up 16% at Rs 9,912 crore Vs Rs 8,545 crore (BBG Estimate: Rs 9,554 crore)
• Net profit up 19% at Rs 4,939.6 crore Vs Rs 4,146 crore (BBG Estimate: Rs 4,242.6 crore)
• Gross NPA at 4.38% Vs 5.17% (QoQ)
• Net NPA at 0.63% Vs 1% (QoQ)
• Proforma Gross NPA at 5.42% Vs 5.36% (QoQ)
• Proforma Net NPA at 1.26% Vs 1.12% (QoQ)
• Loans worth Rs 8,280 crore not classified as NPA as on December 31, 2020
• Loans under resolution process at Rs 2,546 crore as on December 31, 2020
• Advances up 10% at Rs 6.99 lakh crore
• Deposits up 22% at Rs 8.74 lakh crore

UPL Q3FY21 (Consolidated, YoY)

• Revenue up 3% at Rs 9,126 crore Vs Rs 8,892 crore (BBG Estimate: Rs 9,713.5 crore)
• Net profit up 13% at Rs 794 crore Vs Rs 701 crore (BBG Estimate: Rs 895.8 crore)
• Ebitda up 5% at Rs 2,202 crore Vs Rs 2,102 crore (BBG Estimate: Rs 2,296.6 crore)
• Ebitda margin at 24.1% Vs 23.6%
• Maintains 6-8% revenue growth and 10-12% Ebitda growth guidance for FY21

Tata Motors Q3FY21 (Consolidated, YoY)

• Revenue up 6% at 75,654 crore Vs Rs 71,676 crore (BBG Estimate: Rs 76,659 crore)
• Net profit up 67% at Rs 2,941 crore Vs Rs 1,756 crore (BBG Estimate: Rs 1,173 crore)
• Ebitda at Rs 12,131 crore Vs Rs 7,394 crore (BBG Estimate: Rs 9,798 crore)
• Ebitda Margin at 16% Vs 10.3% (BBG Estimate: 12.8%)
• Operating income of Passenger Vehicle business highest in the last 10 quarters
• Commercial vehicle business witnessing sequential recovery

Shree Cement Q3FY21 (Standalone, YoY)

• Revenue up 16% at Rs 3,309.4 crore Vs Rs 2,848.3 crore (BBG Estimate: Rs 3,293.5 crore)
• Net profit up 102% at Rs 626.2 crore Vs Rs 310 crore (BBG Estimate: Rs 542.1 crore)
• Ebitda up 28% at Rs 1,088.8 crore Vs Rs 849.3 crore (BBG Estimate: Rs 1,001.6 crore)
• Ebitda margin at 32.9% Vs 29.8%
• HM Bangur re-appointed as Managing Director for a period of five years starting April 1, 2021

Tech Mahindra Q3FY21 (Consolidated, QoQ)

• Revenue up 3% at Rs 9,647.1 crore Vs Rs 9,371.8 crore
• Net profit up 23% at 1,309.8 crore Vs Rs 1,064.4 crore
• Ebit up 14% at Rs 1,537.1 crore Vs Rs 1,346.4 crore
• Ebit margin at 15.9% Vs 14.4%
• U.S. Dollar revenue up 3.4% to $1,308.7 million

Stocks To Watch

• Cipla: Board approves Scheme of Arrangement between Cipla, Cipla BioTec and Cipla Health. Proposed restructuring aimed at ensuring a simplified group structure and operational footprint and market-aligned logical organisation of resources. Subsidiarization of the India-based operations of the U.S. business help improve focus on the U.S. business and enables multiple options to drive expansion in the future. Demerger and combination with the CHL business will boost the portfolio breadth, build stronger consumer pull and facilitate sharp and focused investments through the capabilities built by CHL.
• Tata Power: Gets Letter of Intent from the Odisha Electricity Regulatory Commission as the successful bidder to own the license for distribution and retail supply of electricity in Odisha's five circles of North Eastern Electricity Supply Company of Odisha. The proposed sale of NESCO utility to the company will be through the formation of a Special Purpose Vehicle in which the company will hold 51% stake and Management control while the Government of Odisha will hold the other 49%. The company expects annual revenue of the SPV created for license of NESCO utility to be in excess of Rs 2,470 crore. The license will be initially valid for a period of 25 years.
• Power Grid: Declared successful bidder under Tariff based competitive bidding to establish transmission systems strengthening scheme for evacuation of power from Solar Energy zones in Rajasthan.
• Arvind Fashions: To hold board meeting on February 3 to consider raising funds through rights issue, preferential issue or any other permissible mode.
• Punjab & Sind Bank: NPA account of Reliance Home Finance with outstanding dues of Rs 593.3 crore has been declared as fraud and reported to the Reserve Bank of India. Account has been fully provided for.
• SBI Cards & Payments Services: Rama Mohan Amara Rao takes charge as MD & CEO of the company.
• L&T Finance Holdings: Rights issue to raise Rs 2,998.61 crore opens for subscription today. Shareholders to get 17 rights shares for every 74 held. The issue closes on February 15.
• IRB Infra: Gets communication from MSRDC granting further extension of the concession period of the Thane-Ghodbunder BoT project until February 23, 2021.
• Union Bank of India: Has allotted unsecured fully paid-up Basel-III Compliant Debt Instruments in the nature of Debentures eligible for inclusion in Additional Tier-1 Capital Series XXIX aggregating to Rs 205 crore.
• Accelya Solutions India: Has declared a special interim dividend of Rs 35 per share. The record date for the purpose of interim dividend is February 8, 2021.
• Sanghi Industries: Approved the proposed issue of redeemable NCDs of up to Rs 305 crore in one or more tranches on private placement basis.
• Shriram Transport Finance Company: Has approved and allotted secured NCDs of face value of Rs 10 lakh each on private placement basis for an issue size of Rs 60 crore plus green shoe option of Rs 100 crore.
• Orient Electric: Has declared an Interim Dividend of Rs 0.75 per share of face value of Re 1 each for the financial year 2020-21. The Record Date for the purpose of payment of Interim Dividend is February 10, 2021.
• Dish TV India: Has approved the divestment of company's entire equity investment in Dish TV Lanka, a subsidiary of the company.
• Non-Nifty Earnings: Castrol India, Coromandel International, Ester Industries, Finolex Industries, Kansai Nerolac Paints, Mastek, Mangalore Refinery & Petrochemicals, OnMobile Global, Rane Brake Lining, Triveni Turbine, Zydus Wellness.

Earnings Post Market Hours

CreditAccess Grameen Q3FY21 (Standalone, YoY)

• Net Interest Income down 15% at Rs 259.8 crore Vs Rs 307.3 crore
• Net loss of Rs 71.6 crore Vs net profit of Rs 108 crore
• Gross NPA at 0.9% Vs 1.5% (QoQ)
• Proforma Gross NPA at 6.84% Vs 1.64% (QoQ)
• Gross loan portfolio up 39% year-on-year to Rs 12,321 crore
• Disbursements up 54% to Rs 4,590 crore
• Provisions and write-offs up to Rs 275.7 crore from Rs 54.7 crore

IDFC First Bank Q3FY21 (Standalone, YoY)

• Net Interest Income up 14% at Rs 1,743.9 crore Vs Rs 1,534.2 crore
• Net profit of Rs 129.5 crore Vs net loss of Rs 1,638.9 crore
• Gross NPA at 1.33% Vs 1.62% (QoQ)
• Net NPA at 0.33% Vs 0.43% (QoQ)
• Proforma Gross NPA at 4.18% Vs 1.87% (QoQ)
• Proforma Net NPA at 2.04% Vs 0.6% (QoQ)
• Additional Covid-19 provisions worth Rs 390 crore in Q3

DLF Q3FY21 (Consolidated, YoY)

• Revenues up 15% at Rs 1,543 crore Vs Rs 1,341.9 crore
• Net Profit up 9% at Rs 451.8 Vs Rs 414 crore
• Ebitda at Rs 499 crore Vs Rs 228.3 crore
• Ebitda Margins at 32.3% vs 17%
• Net sales bookings up 40% year-on-year to Rs 1,022 crore
• Positive cash flow of Rs 115 crore and debt reduced to Rs 5,100 crore

Thyrocare Technologies Q3FY21 (Consolidated, YoY)

• Revenue up 31% at Rs 138.2 crore Vs Rs 105.8 crore
• Net profit up 18% at Rs 32.4 crore Vs Rs 27.5 crore
• Ebitda up 13% at Rs 49.5 crore Vs Rs 43.8 crore
• Ebitda margin at 35.8% Vs 41.4%

Amber Enterprises Q3FY21 (Consolidated, YoY)

• Revenue down 3% at Rs 764.7 crore Vs Rs 788.4 crore
• Net profit up 19% at Rs 27 crore Vs Rs 22.6 crore
• Ebitda up 16% at Rs 63 crore Vs Rs 54.3 crore
• Ebitda margin at 8.2% Vs 6.9%
• RAC business contributed 54% of the total revenue

JK Lakshmi Cement Q3FY21 (Consolidated, YoY)

• Revenue up 17% at Rs 1,259.8 crore Vs Rs 1,077.9 crore
• Net profit up 126% at Rs 114 crore Vs Rs 50.4 crore
• Ebitda up 29% at Rs 228.1 crore Vs Rs 177.1 crore
• Ebitda margin at 18.1% Vs 16.4%

Vedanta Q3FY21 (Consolidated, YoY)

• Revenues up 6.4% at Rs 22,735 crore Vs Rs 21,360 crore (BBG Estimate: Rs 22,533.1 crore)
• Net profit up 40.5% at Rs 3,299 crore Vs Rs 2,348 crore (BBG Estimate: Rs 2,622.8 crore)
• Ebitda up 19.1% at Rs 7,757 crore Vs Rs 6,514 crore (BBG Estimate: Rs 7,179.7 crore)
• Ebitda Margin at 34.1% Vs 30.6%

CDSL Q3FY21 (Consolidated, YoY)

• Revenue up 59% at Rs 86.1 crore Vs Rs 54.1 crore
• Net profit up 150% at Rs 54 crore Vs Rs 21.6 crore
• Ebitda up 3x at Rs 56 crore Vs Rs 16.1 crore
• Ebitda margin at 65% Vs 29.8%
• New active beneficial owner accounts up 28 lakhs to 2.89 crore

F&O Cues

• Nifty February futures end at 13,717; premium of 83 points
• Nifty February futures shed 4.5% and 5,766 shares in Open Interest
• Nifty Bank February futures end at 30,729; premium of 164 points
• Nifty Bank February futures shed 2.4% and 1,668 shares in Open Interest
• Nifty Put-Call Ratio at 1.24
• No stocks in F&O Ban