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Nirmal Bang is inviting you to a Zoom webinar.
When: Jul 14, 2021 08:45 AM India
Topic: Morning Market Update
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_nHSMvpEzS-26X3MkwjtGeA
After registering, you will receive a confirmation email containing information about joining the webinar.
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*Tata Metaliks (TML) 1QFY22 results first cut: Record EBITDA due to record Pig iron realisation and sales*
*_CMP: Rs1202 | Mcap: Rs37.95bn | Rating: BUY_*
*Revenue:* Rs 6bn, +187% yoy; -9% qoq and 7% above our estimates; Gains of robust pig iron realisations and record sales partially offset by lower DI pipe volumes
*PI sales* volume: 89kt, +177% yoy; +11% qoq due to 17kt of exports this quarter and Realisation at Rs 42,487; +52% yoy,+5% qoq due to a combination of multiple price hikes.
*DI pipe* sales volume: 50kt, +84% yoy; -33% qoq was impacted by pandemic led labor restrictions at plant and Realisation at Rs 45,100; +1% yoy, flat% qoq. Realisations for the new DI pipe order has been seeing 25% hike due to stromg demand
RM cost/tonne: Rs21,722; +13% yoy and flat% qoq due to Iron ore cost inflation partly offset by reduced prices of Third party Coke and captive coke
*EBITDA:* Rs 1.54bn; +1400% yoy; +7% qoq; EBITDA margins of 25.5% vs 5% yoy; 22% qoq due to robust pig iron spreads and sales; *PI EBITDA/t: Rs10,553 vs Rs8,000 qoq *
PAT: Rs947mn; vs. loss of Rs124mn yoy; +26% qoq
*Order book:* 14months
*Expansion projects:* New Coke oven is running at full utilisation. *DI pipe expansion will be commissioned in 4QFY22.*
*Our view:* We believe that TML will continue to outperform in 2QFy22 with higher DI pipe volumes partially offset by higher RM cost. 2HFY22 will see some pressure pof high coking coal prices which should be majorly offset by higher realisation of DI pipe on new orders and power cost benefits. We continue to remain positive on TML.
*_CMP: Rs1202 | Mcap: Rs37.95bn | Rating: BUY_*
*Revenue:* Rs 6bn, +187% yoy; -9% qoq and 7% above our estimates; Gains of robust pig iron realisations and record sales partially offset by lower DI pipe volumes
*PI sales* volume: 89kt, +177% yoy; +11% qoq due to 17kt of exports this quarter and Realisation at Rs 42,487; +52% yoy,+5% qoq due to a combination of multiple price hikes.
*DI pipe* sales volume: 50kt, +84% yoy; -33% qoq was impacted by pandemic led labor restrictions at plant and Realisation at Rs 45,100; +1% yoy, flat% qoq. Realisations for the new DI pipe order has been seeing 25% hike due to stromg demand
RM cost/tonne: Rs21,722; +13% yoy and flat% qoq due to Iron ore cost inflation partly offset by reduced prices of Third party Coke and captive coke
*EBITDA:* Rs 1.54bn; +1400% yoy; +7% qoq; EBITDA margins of 25.5% vs 5% yoy; 22% qoq due to robust pig iron spreads and sales; *PI EBITDA/t: Rs10,553 vs Rs8,000 qoq *
PAT: Rs947mn; vs. loss of Rs124mn yoy; +26% qoq
*Order book:* 14months
*Expansion projects:* New Coke oven is running at full utilisation. *DI pipe expansion will be commissioned in 4QFY22.*
*Our view:* We believe that TML will continue to outperform in 2QFy22 with higher DI pipe volumes partially offset by higher RM cost. 2HFY22 will see some pressure pof high coking coal prices which should be majorly offset by higher realisation of DI pipe on new orders and power cost benefits. We continue to remain positive on TML.
*NMDC Ltd* board of directors approved demerger of 3mn T steel plant under construction. The Demerged Undertaking would be vested with NMDC Steel Limited pursuant to the demerger. New equity shares of NMDC Steel Ltd would be issued to all the shareholders of NMDC Limited in the ratio of 1:1. *Positive*
*Tata Metaliks Ltd.* | *CMP* Rs. 1202 | *M Cap* Rs. 3798 Cr | *52 W H/L* 1374/462
(Nirmal Bang Retail Research)
*Result Improved* mainly on account of higher realisation in Pig Iron segment
Revenue from Operations came at Rs. 603 Cr (-8.8% QoQ, 187.2% YoY) vs QoQ Rs. 660.9 Cr, YoY Rs. 209.9 Cr
EBIDTA came at Rs. 153.5 Cr (7.3% QoQ, 1408% YoY) vs QoQ Rs. 143.1 Cr, YoY Rs. 10.2 Cr
EBITDA Margin came at 25.5% vs QoQ 21.7%, YoY 4.8%
Adj. PAT came at Rs. 94.9 Cr vs QoQ Rs. 75.2 Cr, YoY Rs. -12.2 Cr
Quarter EPS is Rs. 30
Share is trading at EV/EBITDA of 8.09x FY23E EBITDA
(Nirmal Bang Retail Research)
*Result Improved* mainly on account of higher realisation in Pig Iron segment
Revenue from Operations came at Rs. 603 Cr (-8.8% QoQ, 187.2% YoY) vs QoQ Rs. 660.9 Cr, YoY Rs. 209.9 Cr
EBIDTA came at Rs. 153.5 Cr (7.3% QoQ, 1408% YoY) vs QoQ Rs. 143.1 Cr, YoY Rs. 10.2 Cr
EBITDA Margin came at 25.5% vs QoQ 21.7%, YoY 4.8%
Adj. PAT came at Rs. 94.9 Cr vs QoQ Rs. 75.2 Cr, YoY Rs. -12.2 Cr
Quarter EPS is Rs. 30
Share is trading at EV/EBITDA of 8.09x FY23E EBITDA
*Vedanta Business Update*
• *Aluminium*: The Lanjigarh refinery produced 0.48 mnt of alumina in Q1 FY22, 1% higher as compared to Q1 FY21 and 3% lower as compared to Q4 FY21. The Lanjigarh refinery continues to operate at over 1.9 Mtpa production run rate.
The cast metal aluminium production at in Jharsuguda and BALCO stood at 0.55 mnt in Q1 FY22, higher by 17% in comparison to Q1 FY21, mainly due to ramp-up of pots. The production was higher by 3% in comparison to Q4 FY21.
• *Oil & Gas:* Average gross operated production during Q1 FY22 across its assets were 164,899 barrels of oil equivalent per day (boepd), up 4% compared to Q1 FY21 and at similar levels as compared to Q4 FY21. The ramp up of gas volumes, commissioning of Aishwariya Barmer Hill facility and the impact of polymer injection in Bhagyam and Aishwariya fields enabled to offset the natural field decline.
• *Iron Ore:* Saleable Ore production volume in Q1 FY22 was 1.4 mnt, higher by 53% as compared to Q1 FY21 and 24% sequentially.
Pig iron production was at 0.202 mnt in Q1 FY22, higher by 85% as compared to Q1 FY21 and 29% sequentially.
• *Steel:* Total saleable production for Q1 FY22 was 0.29 mnt, higher by 8% as compared to Q1 FY21. In comparison to Q4 FY2021, total saleable production was down by 9% mainly due to instabilities and hanging issues at blast furnace.
• *Ferro Alloys Corporation Ltd (FACOR):* Ore production in Q1 FY22 was 3 times higher as compared to Q1 FY21 due to continuous operations of both mines. It is also more than double as compared to Q4 FY21.
The Company has achieved Ferro Chrome production of 18,000 tonnes in Q1 FY22 as against 15,000 tonnes in Q1 FY21, Quantities have improved due to continuous operations of Charge Chrome Plant with improved productivity. It was marginally lower than Q4 FY21 due to annual maintenance shutdown of the plant in the month of April 2021 for 7 days, post which plant productivity has improved by ~11%.
• *Copper- India:* Copper Cathodes Production was 65% higher in Q1 FY22 as compared to Q1 FY21. The production has dropped in Q1 FY22 by 20% as compared to Q4 FY21 largely due to sluggish domestic copper demand in the market impacted by the second COVID-19 wave.
• *Power:* Power sales were 2,722 million units higher by 48% yoy and 19% lower qoq
• *Aluminium*: The Lanjigarh refinery produced 0.48 mnt of alumina in Q1 FY22, 1% higher as compared to Q1 FY21 and 3% lower as compared to Q4 FY21. The Lanjigarh refinery continues to operate at over 1.9 Mtpa production run rate.
The cast metal aluminium production at in Jharsuguda and BALCO stood at 0.55 mnt in Q1 FY22, higher by 17% in comparison to Q1 FY21, mainly due to ramp-up of pots. The production was higher by 3% in comparison to Q4 FY21.
• *Oil & Gas:* Average gross operated production during Q1 FY22 across its assets were 164,899 barrels of oil equivalent per day (boepd), up 4% compared to Q1 FY21 and at similar levels as compared to Q4 FY21. The ramp up of gas volumes, commissioning of Aishwariya Barmer Hill facility and the impact of polymer injection in Bhagyam and Aishwariya fields enabled to offset the natural field decline.
• *Iron Ore:* Saleable Ore production volume in Q1 FY22 was 1.4 mnt, higher by 53% as compared to Q1 FY21 and 24% sequentially.
Pig iron production was at 0.202 mnt in Q1 FY22, higher by 85% as compared to Q1 FY21 and 29% sequentially.
• *Steel:* Total saleable production for Q1 FY22 was 0.29 mnt, higher by 8% as compared to Q1 FY21. In comparison to Q4 FY2021, total saleable production was down by 9% mainly due to instabilities and hanging issues at blast furnace.
• *Ferro Alloys Corporation Ltd (FACOR):* Ore production in Q1 FY22 was 3 times higher as compared to Q1 FY21 due to continuous operations of both mines. It is also more than double as compared to Q4 FY21.
The Company has achieved Ferro Chrome production of 18,000 tonnes in Q1 FY22 as against 15,000 tonnes in Q1 FY21, Quantities have improved due to continuous operations of Charge Chrome Plant with improved productivity. It was marginally lower than Q4 FY21 due to annual maintenance shutdown of the plant in the month of April 2021 for 7 days, post which plant productivity has improved by ~11%.
• *Copper- India:* Copper Cathodes Production was 65% higher in Q1 FY22 as compared to Q1 FY21. The production has dropped in Q1 FY22 by 20% as compared to Q4 FY21 largely due to sluggish domestic copper demand in the market impacted by the second COVID-19 wave.
• *Power:* Power sales were 2,722 million units higher by 48% yoy and 19% lower qoq
*Hindustan Zinc Business Update*
• *Mined Metal*: Production for Q1FY22 was up 9% at 0.22 mnt yoy vs 0.20 mnt on account of higher ore production largely at Rampura Agucha mines and Zawar mines. However it decreased 23% qoq due to lower ore production at Sindesar Khurd and Rampura Agucha mines.
• *Integrated Metal*: Production for Q1FY22 was up 17% at 0.24 mnt yoy vs 0.20 mnt but down 8% qoq vs 0.26 mnt on account of lower mined metal production.
• *Integrated Zinc*: Production for Q1FY22 was up 20% at 0.19 mnt yoy vs 0.16 mnt but down 4% qoq vs 0.195 mnt.
• *Integrated Lead*: Production for Q1FY22 was up 9% at 0.048 mnt yoy vs 0.045 mnt but down 21% qoq vs 0.061 mnt.
• *Integrated Silver*: Production for Q1FY22 was up 37% at 5.2 mn ounces yoy vs 3.8 mn ounces but down 21% qoq vs 6.5 mn ounces.
• *Mined Metal*: Production for Q1FY22 was up 9% at 0.22 mnt yoy vs 0.20 mnt on account of higher ore production largely at Rampura Agucha mines and Zawar mines. However it decreased 23% qoq due to lower ore production at Sindesar Khurd and Rampura Agucha mines.
• *Integrated Metal*: Production for Q1FY22 was up 17% at 0.24 mnt yoy vs 0.20 mnt but down 8% qoq vs 0.26 mnt on account of lower mined metal production.
• *Integrated Zinc*: Production for Q1FY22 was up 20% at 0.19 mnt yoy vs 0.16 mnt but down 4% qoq vs 0.195 mnt.
• *Integrated Lead*: Production for Q1FY22 was up 9% at 0.048 mnt yoy vs 0.045 mnt but down 21% qoq vs 0.061 mnt.
• *Integrated Silver*: Production for Q1FY22 was up 37% at 5.2 mn ounces yoy vs 3.8 mn ounces but down 21% qoq vs 6.5 mn ounces.
Mindtree Concall Update
(Nirmal Bang Retail Research)
*Outlook – Positive*
With Strong order book management is confident of achieving industry leading double digit growth going ahead and achieving above 20% operating margins for the full year.
• Order signed($ mn) came at $ 504 Mn which is the highest order book . Pipeline continues to be strong
• Constant Currency growth came at 7.6%, Dollar revenue came at $ 310.5 Mn,(7.7% QoQ, 22.6% YoY),Net sales came at Rs. 2291.7 Cr (8.6% QoQ, 20.1% YoY). Management indicates there are Supply side challenge in market
• Ebitda margins dipped by 160 bps and came at 20.3% . Of this 170 bps was impacted due to highest net head count, 40 bps due to visa cost which was offset by 50 bps cross currency revenue and operational efficiency. Subcontracting cost increased and came at 11.3% vs 7.9% , however, management indicates subcontracting cost will even out on a long term basis. The company will be starting with second round of wage hike at mid level
• On industry front all industry revenues have grown QoQ. Management indicates BFSI, RCM, CMT is strong and on Travel and hospitality front they are a little cautious. Travel is expected to recover once it opens up. Retail margin dropped to 10.9% vs QoQ 19.7% vs YoY 20.6% due to ramping up of 2 projects in Europe
• Net addition for the quarter came at 3442 employees which was one of the highest and came at 27256 employees . Looking at the demand at services side, management indicates hiring will be further ramped up
• Quarter EPS is Rs. 20.9
• Stock is trading at P/E of 26.9x FY23E EPS
(Nirmal Bang Retail Research)
*Outlook – Positive*
With Strong order book management is confident of achieving industry leading double digit growth going ahead and achieving above 20% operating margins for the full year.
• Order signed($ mn) came at $ 504 Mn which is the highest order book . Pipeline continues to be strong
• Constant Currency growth came at 7.6%, Dollar revenue came at $ 310.5 Mn,(7.7% QoQ, 22.6% YoY),Net sales came at Rs. 2291.7 Cr (8.6% QoQ, 20.1% YoY). Management indicates there are Supply side challenge in market
• Ebitda margins dipped by 160 bps and came at 20.3% . Of this 170 bps was impacted due to highest net head count, 40 bps due to visa cost which was offset by 50 bps cross currency revenue and operational efficiency. Subcontracting cost increased and came at 11.3% vs 7.9% , however, management indicates subcontracting cost will even out on a long term basis. The company will be starting with second round of wage hike at mid level
• On industry front all industry revenues have grown QoQ. Management indicates BFSI, RCM, CMT is strong and on Travel and hospitality front they are a little cautious. Travel is expected to recover once it opens up. Retail margin dropped to 10.9% vs QoQ 19.7% vs YoY 20.6% due to ramping up of 2 projects in Europe
• Net addition for the quarter came at 3442 employees which was one of the highest and came at 27256 employees . Looking at the demand at services side, management indicates hiring will be further ramped up
• Quarter EPS is Rs. 20.9
• Stock is trading at P/E of 26.9x FY23E EPS
Bulk Deal as on 13-07-21
Cmi Ltd
- 2.29 Lk @ 52.01 Hsbc SmallCap Equity fund
Cords Cable
+ 1.25 Lk @ 70.84 Mahesh Babulal Khatri
Gayatri Project
- 13.29 Lk @ 33.3 Champion Finsec Ltd
Kitex Garments
- 4 Lk @ 185.5 Jinsha Nath C
Parsvanath Developers
- 52.59 Lk @ 13.34 IL & FS Financial Services
Star Paper Mills
+ 1.19 Lk @ 167.13 Ajay Surendrabhai Patel
- 89 K @ 167.5 Seetha Kumari
Cmi Ltd
- 2.29 Lk @ 52.01 Hsbc SmallCap Equity fund
Cords Cable
+ 1.25 Lk @ 70.84 Mahesh Babulal Khatri
Gayatri Project
- 13.29 Lk @ 33.3 Champion Finsec Ltd
Kitex Garments
- 4 Lk @ 185.5 Jinsha Nath C
Parsvanath Developers
- 52.59 Lk @ 13.34 IL & FS Financial Services
Star Paper Mills
+ 1.19 Lk @ 167.13 Ajay Surendrabhai Patel
- 89 K @ 167.5 Seetha Kumari
ITC files Rs 100 cr defamation suit against portfolio manager Manu Rishi Guptha for blog post. Follow the link to know more http://www.cnbctv18.com/legal/itc-files-rs-100-cr-defamation-suit-against-portfolio-manager-manu-rishi-guptha-for-blog-post-9977531.htm
cnbctv18.com
ITC files Rs 100 cr defamation suit against portfolio manager Manu Rishi Guptha for blog post
In its petition filed before the Calcutta HC, ITC said that Guptha's post suggested that the company's board and management indulged in insider trading, that shareholders had been misled and the company's books had been fudged
Adani Group takes over Mumbai International Airport
https://www.moneycontrol.com/news/business/adani-group-takes-over-mumbai-international-airport-7167941.html
Download moneycontrol app: http://m.moneycontrol.com/mom
https://www.moneycontrol.com/news/business/adani-group-takes-over-mumbai-international-airport-7167941.html
Download moneycontrol app: http://m.moneycontrol.com/mom
Moneycontrol
Adani Group takes management control of Mumbai International Airport from GVK Group
Gautam Adani said: "We are delighted to take over management of the world-class Mumbai International Airport. We promise to make Mumbai proud."
Securities in Ban For Trade Date 14-July-2021:
GRANULES
IDEA
NATIONALUM
PNB
NMDC
SAIL
SUNTV
*Added - SUNTV*
*Deleted-IBULHSGFIN*
GRANULES
IDEA
NATIONALUM
PNB
NMDC
SAIL
SUNTV
*Added - SUNTV*
*Deleted-IBULHSGFIN*
MAHARASHTRA GOVT TO GIVE INCENTIVE OF RS 5000 PER KWH OF BATTERY || MAXIMUM INCENTIVE FOR ELECTRIC TWO WHEELERS IS RS 10000 AND RS 30000 FOR ELECTRIC THREE WHEELERS || MAHARASHTRA ALSO ROLLS OUT SCRAPPING INCENTIVES || ALL EVS TO BE EXEMPTED FROM ROAD TAX AND REGISTRATION CHARGES