The Phase-3 of SEBI’s new margin framework is being implemented w.e.f. 1st June 2021. As a result, the Intraday leverage is revised to 6.6x (Max.) for Equity and 1.33x for Futures & Options (Selling)
#intraday #margin

SHILPA MEDICARE: Q4 EBITDA RUPEES 262M VS 456M (YOY) | 210M (QOQ) || Q4 EBITDA MARGIN 12.6% VS 20.73% (YOY) | 10.96% (QOQ)

*Aurobindo Pharma Q4 First Cut – Ebitda and Ebitda margin ahead of expectation*

Q4 net profit Rs802cr (down 7.2% YoY) – expectation Rs732cr

Ebitda margin 21.2% VS 21.4% (YoY) – expectation 20.7%

Ebitda Rs1274.6cr (down 3.2% YoY) – expectation Rs1251cr

Income Rs6000cr (down 2.5% YoY) – expectation Rs6029.6cr

*31-May: Prov Cash: Rs.crs*
*FIIs: +2412.39* (7456.51-5044.12)
*DIIs: +179.78* (4912.06-4732.28)

Ganesh Benzoplast, manufacturer and exporter of food preservatives, lubricant Additives, API drugs, Sodium Benzoate, Benzoic Acid and Benzaldehyde etc. has notched 40% higher EPS of Rs 6.6 in 9MFY21, which could lead to FY21 EPS of Rs 9. Buy for 30% gain.

Jindal SAW declared highest ever quarterly sales and 461% higher net profit. It reduced debt in FY21 and interest cost fell to the lowest since FY14. This dark horse can give multi-bagger returns.

Some positive announcement is likely from Central Bank of India. At Rs 19, it is a very good buy for decent returns in the short to medium term. Its results are due on 7th June.

Ethyl Acetate prices have zoomed in the last few months. Apart from Laxmi Organics and Jubilant Ingrevia, IOL Chemicals & Pharmaceuticals is one of its largest producer. Big HNI, Ashish Kacholia, has raised his stake to 7,50,000 shares in it and its results are due on 4th June. Add.

Maheshwari Logistics into Kraft papers, Logistics & Coal trade plans to set up a Plastic boiler at Valsad by March 22, which will be a game changer as it generates energy from plastic waste. A potential multi-bagger.

Pennar Industries manufactures Cold Rolled Steel Strips and Cold Formed Metal Profiles across six manufacturing plants and earns 12%+ EBITDA margin on a sustained basis. The stock can rise by 50%. Buy.

Shemaroo recommended last week soared from Rs.97 to Rs.180, HT Media from Rs.22 to Rs.30, RPSG Ventures from Rs.395 to Rs.469, HSIL from Rs.212 to Rs.248, 3i Infotech from Rs.8.8 to 9.7. Shemaroo has now corrected to Rs.150 and again looks good for investment for further upmove as the valuation gap with its peers plays out.

Vijay Mahnot, President of GreenPanel Industries (mktcap 3000cr+) has joined as CEO of Signet Industries (mktcap 100cr+), a small micro-cap co manufacturing PVC Pipes. Sources aver Signet Industries can give multifold returns from hereon.

Paytm plans an IPO worth Rs.25000cr. This may give a good fillip to Digispice Technologies (SPICE MONEY wallet) as it trades at a mktcap of just Rs.1000cr although the two stocks are not in the same league.

Building material producers like Astral, Prince, Acrysil, are trading at valuations of 40x but HSIL (Hindustan Sanitary) trades below 15x. Noted investors like Ashish Dhawan, Sunil Singhania, Mukul Agarwal, Jitendra Parekh & few others have already taken big bets on this stock, which can double from hereon.

JK Tyre has been gaining market share for two years but still trades at a PE multiple of less than 10x while Apollo Tyres trades at a multiple of 25x. Accumulate the JK stock at every decline for good gains in the medium to long term.

Lemon Tree Hotels gave a breakout at Rs.40. As the unlock phase starts, hotels will get bookings and occupancies will be sold out soon. Buy for a target of Rs.50

Asian Tiles has given a technical breakout at Rs. 20
0 with huge volumes and has even crossed the 100 DMA with ease. Buy with a target of Rs. 360. t.me/TowerTalks

*Market Provisional closing*

*BSE SENSEX provisional close at 51,912.08 up 489.20 points or 0.95% vs Fri*

*NIFTY50 provisional close at 15,576.35 up 140.70 points or 0.91% vs Fri*

🏦 Financial News Bulletin Dt.31st May,2021 forwarded by Allahabad Bank Employees' Union-APTS- affiliated to All India Bank Employees' Association (AIBEA)

The Government has decided to enlarge the scope of Emergency Credit Line Guarantee Scheme (ECLGS) by including support for onsite oxygen generation plants. Also, the civil aviation sector will now be eligible to avail the benefit of the scheme. The scheme provides 100% guarantee for loan by banks, financial institutions and NBFCs to eligible MSME and business entities beside MUDRA borrowers. Launched last year, the scheme has capped interest rate. It will provide guarantee up to total credit of Rs 3 lakh crore. As on date, 3 versions (ECLGS 1.0, 2.0 and 3.0) have been launched. “Under ECLGS 4.0, guarantee cover to loans up to Rs 2 crore will be provided to hospitals/nursing homes/clinics/medical colleges for setting up on-site oxygen generation plants,” a statement issued by the Finance Ministry said. The interest rate for such loan will be capped at interest rate capped at 7.5%.
-Business Line

Some modifications have been done in the previous versions of ECLGS. Borrowers of first version, who are eligible for restructuring as per RBI guidelines dated May 5, will now get will now get 5 years for repayment. This includes repayment of interest only for the first 24 months with repayment of principal and interest in next 36 months. Earlier, these borrowers were supposed to repay interest only during first 12 months and repayment of principal and interest in 36 months. In other words, such borrowers will get additional one year of moratorium on principal amount. These borrowers will also get additional ECLGS assistance of up to 10% of the outstanding as of February 29, 2020.  It has also been decided to extend the validity of scheme to September 30 or guarantees for an amount of Rs.3 lakh crore are issued. Disbursement under the scheme permitted up to December 31.
-Business Line

As the government enhanced the scope of the Rs 3 lakh crore ECLGS, banks today said they have sanctioned Rs 2.54 lakh crore and have room to disburse another Rs 45,000 crore under the plan.
-Economic Times

Banks have decided to make available unsecured personal loans to individuals to meet the expenditure for Covid treatment. Further, they will also be extending loans to improve the healthcare infrastructure.
This is with a view to create, a Covid loan book as per RBI’s May 5 announcement that it will provide term liquidity facility of ₹50,000 crore to banks to ease access to Emergency Health Services. Individuals (salaries, non-salaried as well as pensioners) will be offered unsecured personal loans for Covid treatment of self and family members.The minimum and maximum amount of loan, which will be at a concessional rate and for a maximum period of 5 years, will be ₹25,000 and ₹5 lakh, respectively, said
Dinesh Khara, Chairman, SBI.
-Business Line

PSBs, under the aegis of the IBA, have formulated a templated approach for seamless implementation of RBI’s Resolution Framework 2.0 for restructuring loans to individuals, small business and MSMEs up to ₹25 crore. Banks have evolved a process flow for individual loans and a templated standardised approach for business and MSME loans up to ₹10 lakh.
-Business Line

Banks will be giving business loans for healthcare facilities. The target group for such loans will be the ecosystem engaged in building/servicing healthcare infrastructure; hospitals, nursing homes, clinics, diagnostic centres and pathology labs. The purpose of the business loans, which will be at a concessional rate and for a maximum period of 10 years, is to set up/expand healthcare infrastructure and to manufacture of healthcare products. The quantum of loans to be offered will be up to ₹100 crore at metro centres; up to ₹20 crore in Tier-I and urban centres; and up to ₹10 crore in Tier-II to Tier-VI centres. Rajkiran Rai G, Chairman, IBA, underscored that the Covid loan book will get priority sector classification.

Aditya Puri, Former HDFC Bank CEO and Carlyle Group Among New Owners of PNB Housing Finance-https://www.news18.com/news/business/aditya-puri-former-hdfc-bank-ceo-and-carlyle-group-among-new-owners-of-pnb-housing-finance-3794195.html

*Chemcon Speciality Chemicals Ltd.* | *CMP* Rs. 453 | *M Cap* Rs. 1659 Cr | *52 W H/L* 744/398
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 71.5 Cr (10.3% QoQ, 37.8% YoY) vs QoQ Rs. 64.8 Cr, YoY Rs. 51.9 Cr
EBIDTA came at Rs. 20.8 Cr (-8.8% QoQ, 53.4% YoY) vs QoQ Rs. 22.8 Cr, YoY Rs. 13.6 Cr
EBITDA Margin came at 29.1% vs QoQ 35.2%, YoY 26.2%
Adj. PAT came at Rs. 15.5 Cr vs QoQ Rs. 16.5 Cr, YoY Rs. 9.8 Cr
Quarter EPS is Rs. 4.2
Share is trading at P/E of 34.9x TTM EPS

*Prakash Industries Ltd.* | *CMP* Rs. 85 | *M Cap* Rs. 1458 Cr | *52 W H/L* 105/26
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 1032 Cr (15.8% QoQ, 59.4% YoY) vs QoQ Rs. 891 Cr, YoY Rs. 647.3 Cr
EBIDTA came at Rs. 103.6 Cr (18.6% QoQ, 29.1% YoY) vs QoQ Rs. 87.4 Cr, YoY Rs. 80.3 Cr
EBITDA Margin came at 10% vs QoQ 9.8%, YoY 12.4%
Adj. PAT came at Rs. 51.7 Cr vs QoQ Rs. 31.3 Cr, YoY Rs. 18.1 Cr
Quarter EPS is Rs. 3
Share is trading at P/E of 15.3x TTM EPS

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Nirmal Bang is inviting you to a Zoom webinar.
When: Jun 1, 2021 08:45 AM India
Topic: Morning Market Update

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*Kolte Patil Developers Ltd.* | *CMP* Rs. 233 | *M Cap* Rs. 1771 Cr | *52 W H/L* 286/133
(Nirmal Bang Retail Research)
*Result improved* New Area sales came at Rs.510.9cr vs QoQ Rs.331.6cr yoy Rs.358.1cr
Revenue from Operations came at Rs. 296.1 Cr (55.6% QoQ, 33.5% YoY) vs QoQ Rs. 190.3 Cr, YoY Rs. 221.7 Cr
EBIDTA came at Rs. 45.2 Cr (-0.7% QoQ, 1080.7% YoY) vs QoQ Rs. 45.5 Cr, YoY Rs. 3.8 Cr
EBITDA Margin came at 15.3% vs QoQ 23.9%, YoY 1.7%
Adj. PAT came at Rs. 20.9 Cr vs QoQ Rs. 22.5 Cr, YoY Rs. -16.5 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 16.2x FY22E EPS

*Aurobindo Pharma Ltd.* | *CMP* Rs. 1018 | *M Cap* Rs. 59649 Cr | *52 W H/L* 1064/655
(Nirmal Bang Retail Research)
*Result is below expectations*
Revenue from Operations came at Rs. 6001.5 Cr (-5.7% QoQ, -2.5% YoY) vs expectation of Rs. 6365.8 Cr, QoQ Rs. 6364.9 Cr, YoY Rs. 6158.4 Cr
EBIDTA came at Rs. 1274.7 Cr (-6.9% QoQ, -5% YoY) vs expectation of Rs. 1337.8 Cr, QoQ Rs. 1368.6 Cr, YoY Rs. 1342.4 Cr
EBITDA Margin came at 21.2% vs expectation of 21%, QoQ 21.5%, YoY 21.8%
Adj. PAT came at Rs. 800.5 Cr vs expectation of Rs. 847.7 Cr, QoQ Rs. 132.6 Cr, YoY Rs. 837.6 Cr
Quarter EPS is Rs. 13.7
Share is trading at P/E of 16.9x FY22E EPS

*Marksans Pharma Ltd.* | *CMP* Rs. 74 | *M Cap* Rs. 3029 Cr | *52 W H/L* 82/18
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 330.2 Cr (-7.9% QoQ, -1.5% YoY) vs QoQ Rs. 358.4 Cr, YoY Rs. 335.3 Cr
EBIDTA came at Rs. 95.4 Cr (4.7% QoQ, 37.8% YoY) vs QoQ Rs. 91.1 Cr, YoY Rs. 69.2 Cr
EBITDA Margin came at 28.9% vs QoQ 25.4%, YoY 20.6%
Adj. PAT came at Rs. 79.5 Cr vs QoQ Rs. 58.9 Cr, YoY Rs. 42.7 Cr
Quarter EPS is Rs. 1.9
Share is trading at P/E of 12.7x TTM EPS

*Elecon Engineering Q4FY21 Concall Update*

*Outlook: Positive in long term*

*MHE Division continues to bleed; H2 could witness turnaround as legacy orders*
• MHE has been undergoing stress since many years. Reduced contract work and focused more on products.
• MHE business would not need expansion even if turnover were to double.
• Legacy orders are pulling down profitability in MHE and are expected to be over by September post which the profitability will bounce back. Thus topline would remain the same as last year but bottomline will bounce back strongly.
• Utilisation is negligible and practically stopped using the facilities as it is more costly to function at low scale. Co is transferring its MHE orders to gear division or getting it outsourced/subcontracted.

*Gear (transmission) Division witnesses steady growth*
• Gear division has a navy order which is helping the co’s performance. Will finish all 7 ship sets by end of FY22.
• Utilisation is at 50-55%.
• Exports forms 20% and is likely to increase to 33-35% in the long term.
• Exports turnover was the highest ever at Rs. 100 Cr. It has higher growth and margins. Focus is more on US & Europe. Sales in US are likely to witness good growth. Thus US subsidiary performance will be good in future.
• For each order, the clients receive bids from around 3 gear companies. Relationship and past track record comes into play here.
• Transmission division EBIT margin increased as co carried out various cost cutting initiatives. These margins are sustainable.

*Other highlights*
• Order Inflows in Gear division wasRs. 565 Cr with order backlog of Rs. 380 Cr
• Order Inflows in MHE division was Rs. 135 Cr with order backlog of Rs. 100 Cr
• Revenue mix between MHE/Gears should remain at 15/85 ratio.
• Transmission debtor days are at 90-100 days.
• Co has passed on most of the increase in steel prices.
• Co is focusing more on profitability than turnover.
• Aim is to reduce the debt first and then reduce pledged shares.

Stock is trading at 10.3x PE on Q4 annualised EPS.

*Max Healthcare – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*

The stock is trading at 37.7xFY22E consensus earnings

• *Q1FY22 - High occupancy (avg 88% in first 2 months) due to covid – it is likely to compensate the lower ARPOB*
• 1200 cr fund raised through QIP
• Q4 – 20% capacity was reserved for Covid where occupancy went down to 35% where non-covid occupancy was at healthy levels of ~78%
• Q4 – Occupancy was lower at 70% vs avg 76% in Q3 due to lower covid cases, farmer protests in & around NCR; however due to higher non-covid sales, ARPOB increased to Rs 53.9k, higher 11% QoQ – also higher international patients and higher insurance backed patients helped in inching up the ARPOB
• Medical tourism showed recovery in early part of the quarter and reached almost 60% of pre-covid levels
• Registered Rs 108 cr structural savings in FY21
• *35-37% capacity is earmarked for Govt, which the company intends to bring down to 15% over 2.5 yrs. These beds have much lower ARPOB (~40% less than the non govt beds) hence it remains a major factor to increase the overall ARPOB*
• Brownfield Capex over next 4-5 yrs – Rs 1300-1400 cr
• Nanavati at 10% EBITDA margins; Saket – 27%
• FY22 Capex Rs 100-150 cr maintenance capex – including brownfield the company is likely to of Rs 300-350 cr capex
• Max Healthcare is bullish on diagnostics sector and that’s decided to shift My@lab business (diagnostics biz of the company) to a separate subsidiary and likely to scale it up further
• The company has around 50000 vaccination capacity per day and is utilized depending on vaccine availability. This may act as strong revenue and profit area for near term.

*Glenmark Pharma – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Neutral*
Glenmark Lifescience’s (API company) IPO is near term trigger which would unlock value for shareholders as well as help in reducing the parent’s company’s debt as well

The stock is trading at 17.2xFY22E consensus earnings


• For FY22 – the company plan to file 18-20 ANDAs including 5-6 filings which got delayed in FY21 due to the pandemic. This includes 4-5 filings from Monroe.
• Ryaltris will be commercialized in Russia in Q1 FY22.
• The company is witnessing recovery in Russia (which de-grew by 7.7% in FY21) on sequential basis
• Europe - For the financial year, the European region signed 21 major contracts for in-licensing products in the region. The region is expected to benefit from significant product launches including products like Tiotropium Bromide Dry Powder Inhaler and Ryaltris in FY22
• Ryaltris - Glenmark submitted responses to European agency queries, which enabled Glenmark to conclude the Decentralized procedure paving the way for potential approval of the product and expected launch of RyaltrisTM in the EU in FY22.
• Forex loss – Rs 5.8 cr in other exps; Rs 75 cr forex loss in FY21
• Gross Debt – Rs 4687cr
• Ichnos – can see some partnerships in FY22
• R&D in FY22 – should be similar to FY21 in absolute terms – it was 11% of sales in FY21 – likely to be 10-11% in FY22
• Tax – likely to be 29-30%
• In US - 3 launches are lined up in Q1 – for FY22 targeting 8-10 launches
• *Topline is expected to grow at 10-12% in FY22*

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