Stocks To Watch: RIL, Avenue Supermarts, IRCTC, SAIL, Biocon, Vodafone Idea 

Asian markets have opened higher at the start of the new week ahead of the quarterly earnings season. Numbers this quarter are likely to provide more clues on how companies are coping with the Covid-19 pandemic.

Markets in Japan have opened over 1% higher while those in South Korea and Australia are also seeing gains.

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

• Reliance Industries: Qualcomm Ventures - an investment arm of Qualcomm, will invest Rs 730 crore in Jio Platforms for a 0.15% stake. The deal is at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Qualcomm is the world's leading wireless technology innovator and involved in the development, launch and expansion of 5G.
• Hindustan Unilever: Bloomberg News reports that Unilever is considering to scale back the potential disposal of its tea business substantially. It may keep some operations in Emerging Markets. Sources say that the group is debating whether to hold on to its tea business in India and Indonesia. Unilever is also considering excluding its stake in a PepsiCo Inc. venture that makes Lipton bottled drinks. Sources say that removing these assets from the sale can reduce the eventual proceeds by several billion pounds. The rest of the business can fetch up to 4-5 billion pounds. Details can be announced as early as this month.
• Vodafone Idea: Franklin Templeton says it has received full value of principal along with interest of 8.25% on the company's bonds. Franklin Templeton received payment of Rs 1,252.44 crore from the company on NCDs. The proceeds will be distributed to unit holders of the segregated portfolios in six fixed income schemes. Franklin Templeton had side pocketed the company's NCDs in six fixed income schemes.
• Escorts: The competition Commission of India has approved the acquisition of 9.09% stake in Escorts by Kubota Corporation and of 40% in Kubota Agricultural Machinery India by Escorts.
• Punjab National Bank: Clarifies that the provision for the Rs 3,688 crore fraud in DHFL's NPA account is Rs 1,695.7 crore instead of Rs 1,246.6 crore.
• Biocon: Gets Drug Controller General of India's (DGCI) approval to market Itolizumab injection solution for emergency use in India in moderate to severe Covid-19 patients suffering from Cytokine Release Syndrome. The drug will be manufactured and formulated as an intravenous injection at its manufacturing facility in Bengaluru.
• Dilip Buildcon: Declared L1 bidder for the tender floated by NHAI for a new HAM project worth Rs 882 crore in Gujarat. The project involves four laning of Dhrol-Bhadra Patiya section and has to be completed within a period of 24 months.
• Punjab and Sind Bank: Edyar Zinc with outstanding dues of Rs 41.24 crore has been declared as fraud and reported to the Reserve Bank of India has per regulatory requirement. The account has been fully provided for.
• BASF India: Board approves acquisition of 100% stake in BASF Performance Polyamides from BASF Nederland B.V. and BASF SE, for a consideration not exceeding Rs 305 crore. BASF Performance Polyamides is into the business of manufacture / trading of performance polyamides and has a manufacturing site in Gujarat.
• Shriram EPC: Board approves issuance and allotment of equity shares worth Rs 250 crore via preferential issue to Markab Capital, subject to satisfactory completion of due diligence and definitive agreements. Markab Capital is a middle-east focused Multi-Family Office and Merchant Bank.
• Coromandel International: Executes Share Purchase Agreement (SPA) for acquisition of 50 lakh equity shares of Rs 10 each of the total share capital of Coromandel SQM (India), a JV between the company and Soquimich European Holdings. The transaction is likely to be closed before July 31, 2020, post which CSQM will become a wholly-owned subsidiary of the company.
• Lakshmi Vilas Bank: Due diligence process for proposed amalgamation of Clix Capital Service and Clix Finance India into the bank is underway. Post the amalgamation, the entire shareholders' fund of Clix Capital of approximately Rs 1,900 crore and total assets of approximately Rs 4,600 crore, will get amalgamated into the bank. As per current estimates of advisors, after amalgamation of Clix Capital, the CET-1 ratio of the bank might reach the reasonable threshold level. The bank is also looking for a few large marquee long-term investors as well in mutual consideration.
• IRB Infra: Emerges as preferred bidder for Rs 2,193 crore BoT project under the Bharatmala Pariyojana in West Bengal. The project involves six-laning of NH-19 section of 63.83 kilometers stretch from Palsit to Dankuni in West Bengal and is part of the Golden Quadilateral project.
• Thyrocare: Announces completion of 1 lakh Covid-19 tests. Has also started testing for Covid antibodies from June 28, and has done more than 25,000 tests till date.
• Shalby: ICRA has re-affirmed the long-term rating on term loans and fund-based facilities worth Rs 103.02 crore of the company's line of credit as ICRA A. Outlook has been revised to stable from positive.

Earnings Reported After Market Hours

Avenue Supermarts Q1FY21

• Revenue down 33% to Rs 3,883 crore
• Net profit down 88% to Rs 40 crore
• Ebitda down 81% to Rs 111.6 crore
• Ebitda margin down to 2.9% from 10.3%
• Value was not on the minds of shoppers during the pandemic
• DMart Ready sales in Mumbai have grown well
• Recovered to 80% or more of pre-Covid sales where stores are operating unhindered
• Discretionary consumption in non-FMCG category remains under pressure, impacting gross margins
• All numbers are consolidated and compared on a year-on-year basis

IRCTC Q4FY20

• Revenue up 17.9% to Rs 586.9 crore
• Net profit up 79.3% to Rs 150.6 crore
• Ebitda up 2.9 times at Rs 201.9 crore
• Ebitda margin at 34.4% from 14.2%
• Margins higher due to lower other expenses and catering expenses
• Exceptional gain of Rs 37.4 crore in the base quarter
• Other expenses down to Rs 41.5 crore from Rs 89.8 crore
• Catering segment revenue down 20% to Rs 236.28 crore
• Rail Neer revenue up 19% to Rs 51.1 crore
• Internet ticketing revenue nearly triples to Rs 193.6 crore
• Tourism revenue up 23% to Rs 101.65 crore
• State Teertha revenue down 62% to Rs 4.23 crore
• Declares dividend of Rs 2.5 per share
• All numbers are standalone and compared on a year-on-year basis

IFB Agro Q4FY20

• Revenue up 7.7% to Rs 198.3 crore
• Net loss of Rs 1.1 crore from net profit of Rs 5.5 crore
• Ebitda loss widens to Rs 4.7 crore from Rs 0.7 crore
• All numbers are consolidated and compared on a year-on-year basis

IRCON International Q4FY20

• Revenue up 4.2% to Rs 1,873.4 crore
• Net profit up 15.7% to Rs 115.4 crore
• Ebitda down 17.6% to Rs 155.1 crore
• Ebitda margin at 8.3% from 10.5%
• Higher input costs impact margins
• Deferred tax reversal of Rs 67 crore this quarter impact bottomline
• Domestic segment revenue up 24% to Rs 1,674.91 crore
• International segment revenue down 37% to Rs 113.4
• Declares final dividend of Rs 2.06 per equity share
• All numbers are consolidated and compared on a year-on-year basis

SAIL Q4FY20

• Revenue down 12.5% to Rs 16,171.8 crore
• Net profit up 4.8 times to Rs 2,647.5 crore
• Ebitda up 2.9 times at Rs 6,453.8 crore
• Ebitda margin at 39.9% from 12%
• Inventory gain of Rs 4,120.9 crore with respect to byproducts
• Exceptional loss of Rs 771.8 crore in current quarter due to write-down of inventory
• Bhilai Steel Plant revenue up 12% to Rs 5,433.56 crore
• Durgapur Steel Plant revenue down 18% to Rs 2,058.26 crore
• Rourkela Steel Plant revenue down 23% to Rs 3,183.83 crore
• Bokaro Steel Plant revenue down 20% to Rs 3,423.46 crore
• All numbers are consolidated and compared on a year-on-year basis

Pledged Share Details

• Adani Enterprises: Promoter Adani Tradeline released pledge of 1.12 crore shares on July 4.
• Aurobindo Pharma: Promoters created pledge of 28.6 lakh shares on July 7.
• Omaxe: Promoter Guild Builders created pledge of 1.13 crore shares between July 4-10.

Who's Meeting Whom

• Kilpest India: To meet Seven Canyons Advisors on July 14.
• Shriram City Union Finance: To meet Hara Global Capital Management on July 13.

Trading Tweaks

• AGM Date: Wipro
• Fund Raising: City Union Bank
• Price Band Revised From 20% To 10%: IOL Chemicals and Pharmaceuticals
• Move Into ASM Framework: Omaxe, Alkyl Amines Chemicals
• Move Out of ASM Framework: Magma Fincorp, Dish TV, Nath Bio-Genes, Sanco Industries, Chalet Hotels
• Move Into Short-Term ASM Framework: Precision Camshafts, Maharashtra Scooters, Affle, Diamines and Chemicals
• Move Out Of Short-Term ASM Framework: Mayur Uniquoters, MT Educare, Jubilant Life Sciences, Visaka Industries, Intellect Design Arena, Tata Teleservices (Maharashtra), Omaxe.

F&O Cues

• Nifty July futures end at 10,767; a discount of 2 points from a premium of 10 points
• Nifty July futures add 0.1% and 17,400 shares in Open Interest
• Nifty Bank July futures end at 22,436; premium widens to 38 points from 1 point
• Nifty Bank July futures add 10.8% and 1.6 lakh shares in Open Interest
• Stocks in F&O Ban: BHEL, Century Textiles, Equitas, Glenmark, Vodafone Idea, Punjab National Bank

Nifty: July 16 Expiry

• Maximum Open Interest on Call Side at 10,800 strike (23.3 lakh shares)
• Maximum Open Interest on Put side at 10,700 strike (18.8 lakh shares)
• Active Options: 10,600 Put (+18.6 lakh shares) and 10,900 Call (+12.6 lakh shares)

Nifty: July 30 Expiry

• Maximum Open Interest on Call side at 11,500 strike (27.5 lakh shares)
• Maximum Open Interest on Put side at 10,000 strike (34 lakh shares)

F&O Buzzers & Fund Flow Picture