Markets underestimating oil demand; see Brent at $80: Goldman Sachs
https://mybs.in/2ZeRkhi

Relief for Yes Bank in AT-1 bonds case: Securities Appellate Tribunal imposes interim stay on SEBI penalty order

https://www.moneycontrol.com/news/business/relief-for-yes-bank-in-at-1-bonds-case-securities-appellate-tribunal-imposes-interim-stay-on-sebi-penalty-order-6930451.html

Drug major Dr Reddy's Laboratories has earmarked a Capex of around Rs 1,000 crore for the current fiscal as it remains positive about sustaining its growth trends in the current fiscal and beyond, as per a top company official.
The Hyderabad based firm invested about Rs 1,000 crore in the 2020-21 fiscal.
"The Capex will be around the same numbers, maybe a bit higher if everything goes through," Dr Reddy's Laboratories CEO Erez Israeli said in an analyst call.
However, it depends on the COVID-situation that how much the company would be able to put in during the fiscal, he noted.

Bulk Deal & Insider Trade Update
Bulk deal
*Den Networks Ltd : Broad Street Investments (Singapore) Pte. Limited. Sell 4138297 Shares @ Rs. 46.26

*Music Broadcast Limited : Marcellus Investment Managers Pvt Ltd Sell 3129319 Shares @ Rs. 23.14

*Maxhealth : Wf Asian Reconnaissance Fund Ltd Sell 8250000 Shares @ Rs. 227.07

Ashika

Insider Trade
Acquisition
*Mr. Raghav Bahl Revised Promoter & Director Acquisition 5920 shares of Quint Digital Media Ltd on 18-May-21

*GODREJ INDUSTRIES LIMITED Promoter Acquisition 12105 shares of Godrej Agrovet Ltd on 18-May-21

Disposal
*YALAVARTHY USHA RANI Promoter Group Disposal 6000 shares of Solara Active Pharma Sciences Ltd on 20-May-21

*Ms Tabassum Inamdar Director Disposal 74700 shares of Equitas Small Finance Bank Ltd on 20-May-21

*K. B. Sankar Rao Director Disposal 124000 shares of Granules India Ltd.-$ on 20-May-21

*KVS Manian Director Disposal 20000 shares of Kotak Mahindra Bank Ltd. on 14-May-21

*VARUN JAIPURIA Promoter & Director Disposal 1688287 shares of Varun Beverages Ltd

Pledge
*ZUARI AGRO CHEMICALS LIMITED Promoter Pledge 5350000 shares of Mangalore Chemicals & Fertilizers Ltd.

Revoke
*Opelina Sustainable Services Limited Promoter Group Revoke 180000 shares of Jindal Steel & Power Ltd. on 19-May-21

*OPJ Trading Private Limited Promoter Group Revoke 950000 shares of Jindal Steel & Power Ltd. on 20-May-21

*Shanghvi Finance Private Limited Promoter Group Revoke 1514000 shares of Sun Pharmaceutical Industries Ltd.

*SNEHA GARDENS PRIVATE LIMITED Promoter Group Revoke 496000 shares of Emami Ltd.

*ZUARI AGRO CHEMICALS LIMITED Promoter Revoke 695000 shares of Mangalore Chemicals & Fertilizers Ltd. on 17-May-21
Ashika

Dividend Update
*Kennametal India Ltd. Interim Dividend Rs. 20 Ex Date 24-May-2021
*Welspun India Ltd. Dividend Rs. 0.15 Ex Date 24-May-2021
*Britannia Industries Ltd. Dividend Rs. 12.5 Ex Date 25-May-2021
*Tata Consultancy Services Ltd. Final Dividend Rs. 15 Ex Date 25-May-2021
*Trident Ltd. Final Dividend Rs. 0.36 Ex Date 25-May-2021
*Avantel Ltd. Final Dividend Rs. 4 Ex Date 27-May-2021
*Cigniti Technologies Ltd. Final Dividend Rs. 2.5 Ex Date 27-May-2021
*Indiabulls Housing Finance Ltd. Interim Dividend Rs. 9 Ex Date 28-May-2021
*JM Financial Ltd. Dividend Rs. 0.5 Ex Date 28-May-2021
*Tata Coffee Ltd. Dividend Rs. 1.5 Ex Date 28-May-2021

BSE timeline for market cap;

US$ 125 billion: March 2002
US$ 500 billion: Aug 2005
US$ 1 trillion: 28 May 2007
US$ 1.5 trillion: 6 June 2014 (2566 Days)
US$ 2 trillion: 10 July 2017 (1130 Days)
US$ 2.5 trillion: 16 Dec 2020 (1255 Days)
US$ 3 trillion: 24 May 2021 (159 Days)

India Cement First Cut – Ebitda and Ebitda margin marginally below expectation

·   Q4 Net profit Rs71.6cr vs loss Rs111cr (YoY)- expectation Net Profit Rs59.5cr

·   Ebitda margin 13.8% vs 5.9% (YoY)- expectation 16%

·   Ebitda Rs200.5cr (up 196% YoY) – expectation Rs208cr

·   Income Rs1450cr (up 25.8% YoY) – expectation Rs1301cr

Concern
Last 5 years topline and bottomlline was in single digit. As compare with other chemical sector companies like Deepak Nitrate, Alkyl Amines ROE and ROCE is much lessor.

Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
RD Stock (“High Returns with Low Risk is the Key”)

Balaji Amines - Q4FY21 (Audited – Cons)
CMP: 2,900

Revenue from operations 414 Crs
258 Cr (60.41%) YoY | 392 Cr (5.68%) QoQ

Year ending revenue: 1,311 Cr Vs. 936 Cr (40.61%)

Net Profit of 88.9 Cr
29.5 Cr (201.51%) YoY 78.9 Cr (12.63%) QoQ

Year ending Net profit: 244 Cr Vs. 97.5 Cr (150.84%)

EPS (in Rs.) 26.08
9.51 YoY | 23.14 QoQ

Year ending EPS: 73.5 Vs. 32.3

View: Result is overall good. YoY and QoQ revenue and profit both have up. Margin also improved in this quarter.

Business Updates & Highlights

EBITDA (Cons.) in Q4FY21 was around INR 128.7 Cr Vs. 55.6 Cr in Q4FY20 Vs. 117.3 Cr in Q3FY21 therefore up by 132.7% in YoY and 9.8% up in QoQ. EBITDA margin in Q4FY21 was around 31% Vs. 21.5% in YoY Vs. 29.9% in QoQ therefore EBITDA margin improved by 950 bps in YoY and 110 bps in QoQ.

EBITDA in FY21 was around INR 372.5 Cr Vs. 180.7 Cr in FY19 therefore up by 106.5% in YoY. EBITDA margin in FY20 was around 28.4% Vs. 19.3% therefore EBITDA margin improved by 910 bps in YoY.

Financial
ROE and ROCE is around 18% and 18% respectively and book value per share is around INR 227 and share is currently trading at 10.7x of its book value. Company is currently trading at annualized PE (forward PE) of around 40 which is fair as per Industry benchmark. Promoter holding in the company is around 53.7% which is very strong and stable. FIIs and DIIs hold around 2.2% and 0.4% respectively The good thing is significant part of debt more than 50% has been paid off during the FY21.

Recommendation / Share view Share price high 2,940 (52 week) and now 2,900. Balaji Amines Ltd specialises in manufacturing Methylamines, Ethylamines, Derivatives of specialty chemicals and Pharma Excipients. These have been the main products, it also have facilities for the manufacturing of derivatives, which are down-stream products for various pharma/pesticide industries apart from user specific requirements. It is one of the largest manufacturers of aliphatic amines in India.

Position: Share strong support price is INR 2,650. Long term investor should continue with the company and any correction will give good opportunity to enter.

Opportunities
- Company manufactures amines (methyl amines and ethyl amines) and their derivatives, speciality chemicals and pharma excipients. The company’s end-product selection policy is based on import substitution. BAL plans to become the largest or second-largest manufacturer of the products in the country. Overall, the company has a portfolio of over 25 products, which are supplied to domestic and foreign players (exports accounted around 19% of the total sales in FY20). BAL derives over 50% of its revenue from the pharma sector and about 25% from agro industries.

-Company is one of the largest manufacturers of aliphatic amines and their derivatives in the country. Balaji first phase of greenfield project started commercial operation for manufacturer of Ethyl Amines with a capacity of 50 TPD. With this successful commissioning, now BAL has become a largest manufacturer in all of its range of products i.e. Ethylamines Methaylamines. BAL also further plans to expand capacities of Methyl amines and DMF for a CAPEX of INR 200 Crores to be incurred for FY22-23.

Strong EBITDA on every quarter and its operating profit margin on increasing trend and its more by 31% in Q4FY21. The major reason for this The company has demonstrated an ability to pass on the raw material price volatility, with a lag of three-to-four weeks, to its customers and maintain a healthy and range bound EBITDA.

Strong and robust credit profile: More than 50% debt has already been paid off in during the FY21.

Strong entry barrier for any new players. As BAL is the leading player in the amine industry and the sole producer for a few speciality chemicals, it is insulated from the existing competition in the market. The company uses indigenous technology to manufacture amines, leading to lower manufacturing costs.

Sarda Energy & Minerals 💪

a. Q4FY21 results
👍Sales +60% at ₹699cr
👍EBITDA +139% at ₹184cr

b.FY21 EBITDA =₹520cr
Stock trades at 6.5x EV/EBITDA

c. But FY22 EBITDA triggers
👉Hydro Power contribution
👉Pellet plant capacity hiked
👉Coal Block commissioning

#DenNetworks: Broad Street Investments (Singapore) Pte Limited sold another 41,38,297 equity shares in Den Networks at Rs 46.26 per share on the NSE, the bulk deals data showed.

#MaxHealthcare Institute: WF Asian Reconnaissance Fund sold 82.5 lakh equity shares in Max Healthcare at Rs 227.07 per share on the BSE, the bulk deals data showed.

💥 Upcoming Results💥

📌 Results Monday :
ADF Foods, Balaji Amines, Grasim, IG Petro, JK Paper, Mahanagar Gas, Ramco Cement, Lakshmi Machine

📌 Results Tuesday :
Alkem Labs, Astrazenaca, CAMS, Emami, GATI, Indico Remedies, Thurmax, LUX Industries,

📌 Results Wednesday :
Astra Microwave, BPCL, Bergar Paints, Cummins India, FDC, Gabriel India, Hindustan Foods, JKumar India, Karnatak Bank, LT Foods, Manappuram Finance, V-guard and Pfizer

📌 Results Thursday :
Balrampur Chini, Dixon Tech, Cadila,  Eicher Motor, GSFC, Metroplis Healthcare, Jindal Saw, IFB Infra, HEG, Gujarat Pipavav, Sun Pharma, SH Kelker, Redington, RCF, Page Industries, Phoenix Mills, Wockhardt, TTK Healthcare,

📌 Results Friday :
City Union Bank, Delta, On Mobile, NCC, Max Healtcare, M&M, ITDC Cementation, Indian Bank, IPCA Labs, Hinduja Global, Glenmrak and GMM Pfaudler

📌 Results Saturday :
Bank of Baroda, Divi’s Labs, Kaveri Seed and Unichem Labs

*Dividend Updates!*

👉🏻 *Hindustan Petroleum Corporation Ltd Board recommends Final Dividend of Rs. 22.75* - _9% yield_

👉🏻Bosch Ltd Board recommends dividend of Rs. 115

👉🏻Relaxo Footwears Limited board recommends final dividend of Rs. 2.50

👉🏻Acrysil Ltd Board recommends Final Dividend of Rs. 1.20

👉🏻Electrosteel Castings Limited board recommends dividend of Rs. 0.25

👉🏻Ultramarine & Pigments Limited board recommends dividend of Rs. 5

👉🏻Zee Entertainment Enterprises Ltd Board approves Dividend of Rs. 2.50

👉🏻KNR Constructions Ltd Board recommends Final Dividend of Rs. 0.25

👉🏻EPL Ltd board recommends final dividend of Rs. 2.05

👉🏻DISA India Ltd Board recommends Final Dividend of Rs. 10

👉🏻Havells India Ltd board recommends final dividend of Rs. 3.50 for FY21

👉🏻Meghmani Organochem Ltd board recommends dividend of Rs. 1.40

👉🏻JK Lakshmi Cement Ltd board recommends final dividend of Rs. 3.75

👉🏻Torrent Power Ltd board recommends final dividend of Rs. 5.50

JK Paper - Q4FY21 (Audited – Cons)
CMP: 151

Revenue from operations 898 Crs
736 Cr (22.01%) YoY | 745 Cr (20.58%) QoQ

Year ending revenue: 2,862 Cr Vs. 3,164 Cr (-9.11%)

Net Profit of 136 Cr
92.7 Cr (46.71%) YoY 65.9 Cr (106.33%) QoQ

Year ending Net profit: 240 Cr Vs. 475 Cr (-97.84%)

EPS (in Rs.) 7.89
5.20 YoY | 3.72 QoQ

Year ending EPS: 13.73 Vs. 26.28

View: Result is overall good. YoY and QoQ revenue and profit both have up. Margin also improved in this quarter. Although FY21 is still weak and not for pre covid level due to June quarter was washed out and Q2 was also down.

Business Updates & Highlights

EBITDA (Cons.) in Q4FY21 was around INR 300.1 Cr Vs. 246.6 Cr in Q4FY20 Vs. 233 Cr in Q3FY21 therefore up by 21.9% in YoY and 28.8% up in QoQ. EBITDA margin in Q4FY21 was around 33.4% Vs. 33.4% in YoY Vs. 31.2% in QoQ therefore EBITDA margin Flat in YoY and 220 bps in QoQ.

EBITDA in FY21 was around INR 864 Cr Vs. 1,150 Cr in FY19 therefore down by 24.6% in YoY. EBITDA margin in FY20 was around 30.1% Vs. 36.3% therefore EBITDA margin degrowth by 620 bps in YoY.

Board of Directors of the Company at its meeting held on May 24, 2021, inter alia, has recommended a Dividend of Rs. 4/- per Equity Share of Rs. 10/- each (40%)

Financial
ROE and ROCE is around 21% and 20% respectively and book value per share is around INR 137 and share is currently trading at 1.2x of its book value. Company is currently trading at annualized PE (forward PE) of around 10 which is fair as per Industry benchmark. Promoter holding in the company is around 51.4% which is strong and stable. FIIs and DIIs hold around 4.5% and 0.8% respectively. Operating cash flows as of March 2021 was around INR 475 Cr Vs. 557 Cr in March 2020.

Recommendation / Share view Share price high 165 (52 week) and now 151. JK Paper is the leading player in Office papers, Coated papers and Packaging boards. JKPL has two manufacturing plants, one each in Songadh, Gujarat; and Rayagada. The Songadh plant produces copier paper and paper boards, and the Rayagada unit produces copier and coated paper. The company has annual capacity of 455,000 tonne of paper and paper boards.

Position: Share strong support price is INR 140. Next target can be 170/180 in short to mid term.

Opportunities
-Packaging board segment, contributing to around 20% of capacity and volumes for JKPL, has witnessed limited impact of the pandemic on account of robust demand from pharma, fast moving consumer goods and e-commerce sectors.

-JKPL is one of the largest players in the domestic WPP and paper board space, with installed capacity of 591,000 tonne per annum (including SPM). The company’s sustained market position is backed by its leadership in the copier segment, well-established brands offering premium products, a diversified product portfolio and clientele, and a robust distribution network. Acquisition of SPM and packaging board expansion should continue to aid its leadership position.

-Sirpur papers Mills (SPM) which was acquired by company in 2018 further improved its operational performance and recorded a profit during this quarter.

-Strong liquidity in the system average debtor realization is below 10 days which is too good.
Concern
-Cyclicality nature of Industry since last year almost two quarter washed out and this year Q1FY22 can be equally challengeable despite diversified of paper product portfolio.

-Exposed to any sharp increase in hardwood prices due to higher minimum support prices of agricultural commodities.

- Significantly increased debt in FY21 and its increased by more than 60%. In FY21 it was around INR 2,358 Cr Vs. 1,425 Cr in FY20. Debt equity ratio increased from 0.75 to 1.11 in FY21

Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
RD Stock (“High Returns with Low Risk is the Key”)

undervalued, time for bottom fishing!

GE Power acquires 50% equity stake in NTPC GE Power Services

https://www.moneycontrol.com/news/business/ge-power-acquires-50-equity-stake-in-ntpc-ge-power-services-6795131.html

Balaji Amines - Q4FY21 (Audited – Cons)
CMP: 2,900

Revenue from operations 414 Crs
258 Cr (60.41%) YoY | 392 Cr (5.68%) QoQ

Year ending revenue: 1,311 Cr Vs. 936 Cr (40.61%)

Net Profit of 88.9 Cr
29.5 Cr (201.51%) YoY 78.9 Cr (12.63%) QoQ

Year ending Net profit: 244 Cr Vs. 97.5 Cr (150.84%)

EPS (in Rs.) 26.08
9.51 YoY | 23.14 QoQ

Year ending EPS: 73.5 Vs. 32.3

View: Result is overall good. YoY and QoQ revenue and profit both have up. Margin also improved in this quarter.

Business Updates & Highlights

EBITDA (Cons.) in Q4FY21 was around INR 128.7 Cr Vs. 55.6 Cr in Q4FY20 Vs. 117.3 Cr in Q3FY21 therefore up by 132.7% in YoY and 9.8% up in QoQ. EBITDA margin in Q4FY21 was around 31% Vs. 21.5% in YoY Vs. 29.9% in QoQ therefore EBITDA margin improved by 950 bps in YoY and 110 bps in QoQ.

EBITDA in FY21 was around INR 372.5 Cr Vs. 180.7 Cr in FY19 therefore up by 106.5% in YoY. EBITDA margin in FY20 was around 28.4% Vs. 19.3% therefore EBITDA margin improved by 910 bps in YoY.

Financial
ROE and ROCE is around 18% and 18% respectively and book value per share is around INR 227 and share is currently trading at 10.7x of its book value. Company is currently trading at annualized PE (forward PE) of around 40 which is fair as per Industry benchmark. Promoter holding in the company is around 53.7% which is very strong and stable. FIIs and DIIs hold around 2.2% and 0.4% respectively The good thing is significant part of debt more than 50% has been paid off during the FY21.

Recommendation / Share view Share price high 2,940 (52 week) and now 2,900. Balaji Amines Ltd specialises in manufacturing Methylamines, Ethylamines, Derivatives of specialty chemicals and Pharma Excipients. These have been the main products, it also have facilities for the manufacturing of derivatives, which are down-stream products for various pharma/pesticide industries apart from user specific requirements. It is one of the largest manufacturers of aliphatic amines in India.

Position: Share strong support price is INR 2,650. Long term investor should continue with the company and any correction will give good opportunity to enter.

Opportunities
- Company manufactures amines (methyl amines and ethyl amines) and their derivatives, speciality chemicals and pharma excipients. The company’s end-product selection policy is based on import substitution. BAL plans to become the largest or second-largest manufacturer of the products in the country. Overall, the company has a portfolio of over 25 products, which are supplied to domestic and foreign players (exports accounted around 19% of the total sales in FY20). BAL derives over 50% of its revenue from the pharma sector and about 25% from agro industries.

-Company is one of the largest manufacturers of aliphatic amines and their derivatives in the country. Balaji first phase of greenfield project started commercial operation for manufacturer of Ethyl Amines with a capacity of 50 TPD. With this successful commissioning, now BAL has become a largest manufacturer in all of its range of products i.e. Ethylamines Methaylamines. BAL also further plans to expand capacities of Methyl amines and DMF for a CAPEX of INR 200 Crores to be incurred for FY22-23.

Strong EBITDA on every quarter and its operating profit margin on increasing trend and its more by 31% in Q4FY21. The major reason for this The company has demonstrated an ability to pass on the raw material price volatility, with a lag of three-to-four weeks, to its customers and maintain a healthy and range bound EBITDA.

Strong and robust credit profile: More than 50% debt has already been paid off in during the FY21.

Strong entry barrier for any new players. As BAL is the leading player in the amine industry and the sole producer for a few speciality chemicals, it is insulated from the existing competition in the market. The company uses indigenous technology to manufacture amines, leading to lower manufacturing costs.

Concern
Last 5 years topline and bottomlline was in single digit. As compare with other chemical sector companies like Deepak Nitrate, Alkyl Amines ROE and ROCE is much lessor.

Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
RD Stock (“High Returns with Low Risk is the Key”)

*4.00 PM, 24th May 2021:*

*LATEST AFTER THE BELL: Nifty consolidates.*

*Nifty (+22, 15198).*

After last week’s smart move, the benchmark Nifty mostly consolidated in today’s trade and most importantly, flirted above the dotted lines all thru the session. The positive takeaway was that the BSE MidCap index scaled a new record high level of 21,717 while the BSE SmallCap index hit 23,338 mark.

Stock specific action commanded investors’ attention as Indian Oil Corporation, SBI, L&T, BPCL, Axis Bank, UPL, PowerGrid, and ITC were the top performing stocks in the large-cap space while Natco Pharma, Concor, Adani Transmission, Page Industries, Birlasoft Corporation, MEP Infrastructure Developers, and Astec Lifesciences were the gainers in the broader markets.

Container Corporation of India (CONCOR) was star perfomer of today’s trade jumping to its 52-week high of Rs 644.95 after rallying 10% after the company said its board has accorded in-principle approval for exploring the possibility of borrowings an amount not exceeding Rs 3,500 crore by the company from any bank(s)/ corporate(s) and institution(s) towards executing long term lease agreement(s) for Railway Land(s).

Amongst sectoral indices, the Nifty PSU Bank index was seen marching with strength as it ended the day as the top gainer on the NSE, up over 2.13%, followed by the Nifty Realty index (up 1.76%. On the downside, the Nifty Metal index slipped below the dotted lines, down 0.6%.

*The other key highlights of today’s trade:*

• Nifty ends a choppy session higher. Bank Nifty outperforms, up 0.97% for the day.
• Around 26 stocks of the Nifty 50 stocks ended the day in green.
• Top Index Gainers: IOC (+4.89%) BPCL (+2.77%) SBI (+2.44%)
• Top Index Losers: SHREE CEMENTS (-2.51%) JSW STEEL (-2.25%) TATA STEEL (-1.94%)
• Reports of sharp drop in Covid-19 cases in India coupled with good corporate results are still seen as positive catalysts.


*Our view for Tuesday’s trade:*

Positivity should greet Dalal Street in Tuesday’s trade with all aggressive bullish eyes on Nifty’s all-time-highs at 15432 mark. We suspect another round of great fireworks display quite likely ahead of May F&O series expiry.

Technically speaking, Nifty’s make-or-break supports are placed at 14927 mark. As long as Nifty’s 14927 support holds, the benchmark will aim its all-time-high at 15432 mark and then all bullish bets at magical 16000 mark.

Amongst stocks, TATA POWER & BPCL appear to be screaming buys with interweek perspective.


*Stay Tuned.*

*Disclaimer:* Investment/Trading in equities is subject to market risks. Notwithstanding all the efforts to do best research, clients should understand that investing in equities, involves a risk of loss of both.