Stocks To Watch: Indian Hotels, NBCC, Oil India, Shriram Transport Finance, UPL, Westlife Development
Asian stocks and U.S. futures fell on Thursday after the Federal Reserve painted a long road ahead to repair the economic damage from Covid-19, a contrast with the V-shaped recovery optimism that’s propelled global equities.
Japanese, Australian and Korean shares were all in the red in early trading, while contracts on the S&P 500 were down after the index closed with a modest drop Wednesday. Crude oil fell.
Here are the stocks to watch in trade today:
- Apollo Global Management is seeking to start its own credit investment business in India as the U.S. alternative asset manager plans to end a joint venture with ICICI Bank. The New York-based firm plans to stop putting new money into Aion Capital Partners and exit the existing investments over the next few years. Apollo Global has informed ICICI Bank of its intention. The firm had founded Aion Capital as a strategic partnership with ICICI Venture in 2011. Aion had assets under management of $660 million as of March 31 and offered a net internal rate of return of 5%, its exchange filings show. (Bloomberg News)
- NTPC approved deferment of capacity charges of Rs 2,064 crore to Discoms, to be payable without interest after the end of the lockdown period in three equal monthly installments. Board also approved rebate of R.1,363 crore on the capacity charges billed during the lock-down period to Discoms on account of Covid-19, in financial year 2020-21.
- Pharma Stocks: A coalition of 51 attorneys general in the U.S. filed an antitrust complaint in federal court alleging that key individual executives and manufacturers of dermatological, generic drugs engaged in a widespread conspiracy to artificially inflate and manipulate prices, reduce competition for generic drugs sold across the country. Complain mentions Taro, Myla, Teva, Glenmark etc. (Bloomberg News)
- UPL’s Mauritius arm has raised $500 million via unsecured notes. The issuance does not result in any increase of in net debt of the company.
- Bharat Electronics on Covid-19 impact: Company is confident that it will be able to cope up with the production gaps. Sales for financial year 2020 stood at Rs 12,500 crore versus the expected guidance of Rs 13,000 crore. Order were completed but customers could not inspect some items and some dispatches couldn’t be made in last week of March. Profitability to be impacted in the first quarter of fiscal 2021.
- Oil India stated in a press release that two employees died due to a blowout well catching fire on June 9. Currently fire tenders are trying to reduce the fire outbreak.
- Telecom Stocks: Supreme Court to heat telecom dues case on June 11. (Bloomberg News)
- NBCC: Supreme Court has ordered for restructuring of loans of home buyers in the Amrapali case. Directing the banks and financial institutions to release loans to home buyers, whose loans have been sanctioned, notwithstanding the fact that their accounts are declared as NPAs. Let there be restructuring of the loan amount. Court said that the order may be released stage-wise and long-term restructuring of the loans may be done so that construction is completed and buyers are able to repay the loan.
- Vedanta: Fitch Ratings has placed Cairn India Holdings long-term issuer default rating of 'B+' on rating watch negative. The action follows the announcement by Vedanta Resources of its intention to delist the shares of its Indian subsidiary and Cairn India Holdings’ parent, Vedanta.
- Yes Bank has applied to the exchanges for re-classification of promoters in context of the reconstruction scheme.
- Shriram Transport Finance on Covid-19 impact: Disbursements are badly affected as the RTO offices and dealers were non-functional up to June 7, in most part of the country. The buying selling and new vehicle sales transactions needing personal interactions has just started from June. Repayment schedule of the Term loans as also the residual tenor of the term loans have been shifted across the board by another three months after the moratorium period. In case of revolving working capital credit facilities in the form of floating business loans, vehicle trade advance loans to dealers and working capital loans to borrowers (fuel, toll loans etc.), the borrowers will be allowed deferment of another three months on payment of interest in respect of such facilities during the period June 1 to August 31. The accumulated interest for the period March 1 to August 31 will be converted into a funded interest term loan and the said funded term loan on account of accumulated interest will be repayable by March 31,2021.
- Raymond on Covid-19 impact: Primary sales impacted in second half of March. Inventory correction in MBO channel of branded apparel continued in March quarter due to higher channel inventory built-up. 65% of Raymond stores have re-opened. Suiting and shirting fabric manufacturing plants continue to remain shut due to subdued demand. Garmenting facilities and engineering business have partially resumed operations.
- Max India: WF Asian Reconnaissance Fund increased stake from 7.46% to 9.71% on June 8.
- VST Industries: Devraj Lahirihas resigned from the post of managing director.
- Welspun Enterprises received endorsement agreement from NHAI for Haryana road project. Process of takeover of 8 laning in NH-1 has been completed.
- Satin Creditcare Network to consider raising Rs 5,000 crore via NCDs on June 15.
Shriram Transport Finance Q4 (Standalone, YoY)
- Net Interest Income up 1% at Rs 1,933.3 crore (Est Rs 2,019 crore)
- Net profit down 70.1% at Rs 223.4 crore (Est Rs 712 crore)
- Impairment on financial instruments for Rs 1,128.7 crore
- Covid-19 related provision stood at Rs 909.6 crore
- AUM up 5% at Rs 1.1 lakh crore
- NIM at 6.76% versus 7.23% (7.14% QoQ)
Century Textiles Q4 (Consolidated, YoY)
- Revenue down 16.3% at Rs 786.2 crore
- Net profit down 32.1% at Rs 82.1 crore
- Ebitda down 66.4% at Rs 74.5 crore
- Margins at 9.48% versus 23.6%
- Higher raw material costs, employee and other expenses drag margins
- Deferred tax reversal of Rs 73.7 crore
- Textiles segment revenue up 5% at Rs 185.1 crore
- Pulp and paper segment revenue down 13% at Rs 541.7 crore and sales volume down 4.4% at 4.15 lakh MT
- Higher export volumes for paper and board verticals
Indian Hotels Q4 (Consolidated, YoY)
- Revenue down 14.6% at Rs 1,063 crore (Est Rs 1,123 crore)
- Net profit down 35.4% at Rs 74.3 crore (Est Rs 52 crore)
- Ebidta down 26.9% at Rs 207.9 crore (Est Rs 230 crore)
- Margins at 19.6% versus 22.8%
- IND AS 116 Impacted numbers
Shankara Building Products Q4 (Consolidated, YoY)
- Revenue up 11.6% at Rs 667.3 crore
- Net profit up 7.1 times at Rs 11.3 crore
- Ebidta up 75.5% at Rs 27.2 crore
- Margins at 4.07% versus 2.59%
- Lower raw material costs aid margins
- Retail segment revenue up 4% at Rs 365.1 crore
- Channel and Enterprise segment revenue up 23% at Rs 302.2 crore
- Volume growth at 14%
- Westlife Development
- Dixon Technologies
- Shriram City Union Finance
- Sundram Fasteners
- DIC India
- EID Parry
- IIFL Wealth Management
- JK Agri Genetics
- KNR Construction
- Take Solutions
- Inspirisys Solutions
- Ramco Systems: Vijay Kishanlal Kedia acquired 3.4 lakh shares (1.11%) at Rs 87.82 per share
- RBL Bank: Jasmine Capital Investments acquired 1.67 crore shares (3.29%) at Rs 150.47 per share
Pledged Share Details
- Adani Green Energy promoter Adani Trading Services released pledge of 1.6 crore shares on June 8.
(As Reported On June 10)
Who’s Meeting Whom
- Manappuram Finance to meet Geosphere Capital on June 11
- Price Band Revised From 10% To 5%: MT Educare, Network18 Media & Investments, Muthoot Capital Services, The State Trading Corporation of India.
- Price Band Revised From 20% To 10%: Dishman Carbogen Amcis, Xelpmoc Design And Tech.
- Move Into ASM Framework: Hubtown, MIRC Electronics, Sundaram Multi Pap, Zee Media Corporation, Alok Industries, Ruchi Soya, Videocon Industries.
- Move Into Short-Term ASM Framework: Birla Precision Tech, Aavas Financiers, MT Educare, Capacite Infra, Apex Frozen Foods, HFCL, SMS Pharma, Shree Renuka Sugars, SpiceJet, Sundaram Brake Linings.
- Move Out Of Short-Term ASM Framework: Swaraj Engines, Majestic Auto.
- IndusInd Bank promoter Indusind International Holdings acquired 5 lakh shares from June 8-9
- Quess Corp promoter Ajit Isaac acquired 17,678 shares on June 9
- Varun Beverages promoter Vivek Gupta sold 2,881 shares on June 9
(As Reported On June 10)
- Nifty June futures closed at 10119, premium of 3 points versus discount of 12 points
- Nifty June futures open interest down 0.1%, sheds 13,900 shares in open interest
- Nifty Bank June futures closed at 21,119, discount of 19 points discount of 47 points
- Nifty Bank June futures open interest up 1.9%, adds 31,900 shares in open interest
- India VIX down 2.4% at 29.4
- Nifty PCR at 1.35 versus 1.20 (across all series)
Nifty Weekly Expiry: June 11
- Max open interest on call side at 10500 (34.3 lakh shares)
- Max open interest on put side at 9800 (22 lakh shares)
- Active options: 10000 Put (+9 lakh shares), 10100 Call (+9.6 lakh shares)
Nifty Monthly Expiry: June 25
- Max open interest on call side at 10500 (19.2 lakh shares)
- Max open interest on put side at 9000 (36 lakh shares)
Securities In Ban
- New In Ban: BHEL, PVR
- In Ban: BHEL, Idea, Jindal Steel, Just Dial, NCC, PVR