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Stocks To Watch: RIL, Vedanta, L&T, Titan, PVR, Inox Leisure

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

The Bombay Stock Exchange (BSE) logo sit on display inside the bourse in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
The Bombay Stock Exchange (BSE) logo sit on display inside the bourse in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Asian markets have begun the new trading week with gains after a strong U.S. Jobs report and a positive close on Wall Street. Markets in Japan and South Korea are advancing while those in Australia are shut for a holiday.

The U.S. Dollar is headed for its eighth straight session of declines while the 10-year treasuries have retained last week's losses.

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

  • Larsen & Toubro: Misses FY20 order inflow guidance. No revenue or order inflow guidance given for FY21. Higher employee expenses impact margins. Net profit falls 6.5% while revenue rises 2.2%. Order inflow during the quarter up 5% while consolidated order book up 4%.
  • Vedanta: Reports first net loss since Q1FY12. Exceptional loss of Rs 17,132 crore. Deferred tax credit of Rs 6,524 crore. Lower volumes and commodity prices, increased operational costs at its zinc and oil & gas subsidiaries impact operating performance. Ebitda fall 26% while margin narrows to 23% from 26.1%
  • Reliance Industries: Silver Lake and its co-investors will invest an additional Rs 4,547 crore in Jio Platforms, increasing its total stake in the company to 2.08% of the total equity or Rs 10,202 crore. Abu Dhabi Investment Authority (ADIA) will also invest a sum of Rs 5,683.5 crore in Jio Platforms, through its wholly-owned subsidiary. The investment values Jio Platforms at an equity value of Rs 4.91 lakh crore. Jio partners has now raised Rs 97,885 crore from leading investors so far.
  • Tata Group Companies: N Chandrasekaran, Chairman of Tata Sons has stated in a press release that the Tata group companies are facing both challenges and opportunities arising out of the pandemic and the resulting economic situation, based on the industries and markets they operate in. All group companies are progressing well in responding to these challenges and opportunities. Tata Sons is in a strong financial position with adequate cash flows to support the group companies and new growth initiatives. Tata Sons is not looking to monetise its investments to raise capital.
  • Tata Motors: Bloomberg News reports that Jaguar Land Rover has raised a loan of $705 million from Chinese Banks. JLR has also told its suppliers that its Castle Bromwich site in the Midlands will not resume production until August 10 at the earliest and the Halewood SUV plant will re-open on June 8.
  • Gateway Distriparks: To consider a proposal to raise equity shares on June 10.
  • Karnataka Bank: Reports of various frauds to the Reserve Bank of India. It has pegged the fraud from DHFL to be Rs 180.13 crore, for misappropriation and criminal breach of trust and diverion of funds in the credit facilities earlier extended. The fraud from Religare Finvest is Rs 43.4 crore and Leel Electricals is Rs 20.65 crore. The bank has also fully provided for frauds amounting to Rs 41.3 crore for Feeders Electric Engineering.
  • Shriram Transport Finance: T Rowe Price increases the stake to 5.36% from 4.77% on June 3.
  • Capri Global: Raises Rs 50 crore via NCDs.
  • Birla Corp: Resumes operations at the Jute mill from June 5. The company says it expects three months to restore to normal production levels.
  • Taj GVK Hotels: Expects demand to pick up at a slower pace once the lockdown is lifted.
  • Non-Nifty Earnings Today: Inox Leisure, PVR, Abbott India, Chalet Hotels, Coromandel Engineering, Gujarat State Petronet.

Companies With Covid-19 Updates

Marico

  • May saw a near-normal throughput in all categories except the premium personal care business.
  • Intermittent challenges on labour availability.
  • Countering disruption in supply chain by adopting newer and alternate models like direct supply to distributors and large modern trade stores.
  • Robust growth continues in Saffola Edible oils and foods business.
  • Parachute coconut oil has also shown resilience and clocking in average sales of FY20.
  • Value added hair oils witnessed a gradual pickup towards end of April.
  • Although operations have been affected in Bangladesh, business remains resilient.
  • Business in Vietnam gradually getting back to normal.
  • Business in Middle East, Africa and Egypt continues to be affected due to the pandemic. However, its impact on the overall business is low to moderate.
  • No major impact on its liquidity position.

Moldtek Packaging

  • March quarter sales impacted by Rs 15 crore.
  • Sales for ice-cream packs were badly impacted.
  • Prime season for the industry saw an impact.
  • Negative impact on sales is likely to continue in FY21.
  • Expect total sales in FY21 to be 80% of FY20's sales.

Chennai Petroleum

  • Fall in crude prices has resulted in a significant inventory write-down of Rs 1,456 crore
  • Operating at 60% of total capacity
  • Lower demand and resultant inventory build-up has resulted in an increase in short-term borrowings.
  • Borrowings to get normalised based on turnaround in the demand situation and stabilisation in the international prices of crude.

Lux Industries

  • Operations at various facilities are not running at full capacity.
  • Operations will be ramped up in a phased manner.
  • Anticipate some pressure on cash flows in the coming quarter.
  • Debtors may get stretched as well.

Eveready Industries

  • Pandemic has imposed incremental operating costs on the business.
  • Will see impact on the company's profitability in the short-term.
  • Engaged with the lenders to infuse additional funds to bridge the working capital gap.
  • Approached all term lenders to extend moratorium as per the RBI's regulatory package. Some of the requests have been granted by the lenders.
  • Trade collections for batteries have been satisfactory as supply chain opened up for the same due to its classification as an essential commodity.

Torrent Power

  • Demand in licensed and franchised distribution areas was down 49% from March 25-April 30.
  • Demand in May 2020 was down 36% compared to the previous year.
  • Expect overall electricity demand in FY21 to be lower than FY20.

Earnings Reported After Market Hours

Exide Industries Q4FY20

  • Revenue down 21% to Rs 2,055 crore
  • Net profit down 20.3% to Rs 168 crore
  • Ebitda down 27.6% to Rs 270.3 crore
  • Ebitda margin narrows to 13.2% from 14.4%
  • De-growth seen in both storage batteries and life insurance business due to slowdown in auto segment and Covid-19 impact
  • Operational numbers impacted by IND-AS 116
  • All numbers are standalone and compared on a year-on-year basis

Jyothy Laboratories Q4FY20

  • Revenue down 23.8% to Rs 393 crore
  • Net profit down 58.3% to Rs 28.8 crore
  • Ebitda down 50.1% to Rs 40.6 crore
  • Ebitda margin narrows to 10.3% from 15.8%
  • Lower sales and higher adversiting expenses impact margins
  • All the segments - fabric care, dishwashing, household insecticides, personal care and laundry service see a de-growth in revenue.
  • Volume contraction of 22.1%
  • Gross margins at 45.7% from 45.2%
  • All numbers are consolidated and compared on a year-on-year basis

Aditya Birla Capital Q4FY20

  • Revenue up 2.4% to Rs 4,844.9 crore
  • Net profit down 44.4% to Rs 143.7 crore
  • Additional provisions with respect to Covid-19 at Rs 163 crore
  • 33% of Assets Under Management (AUMs) under moratorium
  • All numbers are consolidated and compared on a year-on-year basis

Relaxo Footwear Q4FY20

  • Revenue down 15% to Rs 541 crore
  • Net profit down 4% to Rs 52 crore
  • Ebitda flat at Rs 97 crore
  • Ebitda margin at 17.9% from 15.1%
  • All numbers are consolidated and compared on a year-on-year basis

Divis Laboratories Q4FY20

  • Revenue up 10% to Rs 1,390 crore
  • Net profit up 33% to Rs 388 crore
  • Ebitda up 7% to Rs 444.5 crore
  • Ebitda margin at 32% from 32.8%
  • Forex gain of Rs 57 crore this quarter
  • All numbers are compared on a year-on-year basis

Karnataka Bank Q4FY20

  • Net profit down 56% to Rs 27.3 crore
  • Net Interest Income up 29% to Rs 529.3 crore
  • Gross NPA at 4.82% from 4.99% in the previous quarter
  • Net NPA at 3.08% from 3.75% in the previous quarter
  • Provisions at Rs 356.5 crore from Rs 314.7 crore in the previous quarter
  • Covid-19 related provisions worth Rs 24.08 crore
  • Provision Coverage Ratio at 64.7%
  • Net profit and Net Interest Income is compared on a year-on-year basis

Bulk Deals

  • Alembic: Promoter Nirayu acquired 39.26 lakh shares or 1.53% stake at Rs 174 per share.
  • PVR: Sylebra Capital Partners Master Fund acquired 6 lakh shares or 1.17% stake at Rs 1,167.5 per share.
  • Pennar Industries: DSP Mutual Fund sold 7.53 lakh shares or 0.52% stake at Rs 16.17 per share.
  • SH Kelkar: Promoter Kedar Vaze acquired 15.54 lakh shares or 1.1% stake at Rs 65 per share.
  • Sequent Scientific: Promoter Agnus Holdings acquired 1.28 crore share or 5.16% stake at Rs 86.95 per share.

Pledged Share Details

  • TCPL Packaging: Promoters released pledge of 38.26 lakh shares on June 5
  • JSPL: Promoters released pledge of 89.6 lakh shares between June 1-2

As Reported On June 5.

Who's Meeting Whom

  • Mahindra Logistics: To meet Ashmore Investment, Bajaj Allianz and other investors between June 8-11.
  • BSE: To meet Acelansdowne Partners on June 9.

Trading Tweaks

  • Price Band Revised From 10% To 5%: HFCL, IDBI Bank
  • Price Band Revised From 20% To 10%: Indian Overseas Bank
  • Move Into ASM Framework: Sastasundar Ventures, OCL Iron and Steel, Indisolar, Jet Airways
  • Move Out Of ASM Framework: Suven Life Sciences, Olectra Greentech, Edelweiss Financial Services , Triveni Engineering & Industries, Bajaj Hindusthan Sugar, Parag Milk Foods, Sintex Industries, Shyam Century Ferrous, Subex.
  • Move Into Short-Term ASM Framework: Aditya Birla Money, Jindal Worldwide, Onward Technologies, Reliance Naval and Engineering, Saregama, Sicagen, Wendt, Wheels India

F&O Cues

  • Nifty June futures end at 10,145; Premium narrows to 3 points from 12 points
  • Nifty June futures add 2.8% and 2.8 lakh shares in Open Interest
  • Nifty Bank June futures end at 21,016; Premium of 10 points from discount of 10 points
  • Nifty Bank June futures add 9.6% and 1.3 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 1.50 from 1.37 across all series
  • Stocks in F&O Ban: BHEL, NCC

Nifty: June 11 Expiry

  • Maximum Open Interest on Call side at 10,500 strike (17.9 lakh shares)
  • Maximum Open Interest on Put side at 9,000 strike (17.6 lakh shares)
  • Active Options: 9,900 Put (8.5 lakh shares) and 10,300 Call (11.2 lakh shares)

Nifty: June 25 Expiry

  • Maximum Open Interest on Call side at 11,000 Call (17 lakh shares)
  • Maximum Open Interest on Put side at 9,000 strike (34 lakh shares)

F&O Buzzers & Fund Flows

Stocks To Watch: RIL, Vedanta, L&T, Titan, PVR, Inox Leisure