*Indian Metals & Ferro Alloys Ltd.* | CMP Rs. 731 | M Cap Rs. 1972 Cr | 52 W H/L 737/160
(Nirmal Bang Retail Research)
*Result has improved*
Volume Came at 59506T Vs QoQ 72265T YoY 59743
Revenue from Operations came at Rs. 537.9 Cr (-6.6% QoQ, 32.8% YoY) vs QoQ Rs. 576.1 Cr, YoY Rs. 405.1 Cr
Realisation Came at Rs.90387/T vs QoQ Rs.79722/t YoY Rs.67804/t
EBIDTA came at Rs. 173.5 Cr (34.5% QoQ, 186.7% YoY) vs QoQ Rs. 129 Cr, YoY Rs. 60.5 Cr
*EBITDA/T came at Rs.29162/t vs QoQ 17854/t yoy Rs.10132*
EBITDA Margin came at 32.3% vs QoQ 22.4%, YoY 14.9%
Adj. PAT came at Rs. 98.6 Cr vs QoQ Rs. 65.1 Cr, YoY Rs. 24 Cr
Quarter EPS is Rs. 36.5
Share is trading at EV/EBITDA of 3.26x Q1FY22 annualized EBITDA

*ICICI Bank Ltd.* | *CMP* Rs. 677 | *M Cap* Rs. 468818 Cr | *52 W H/L* 680/334
(Nirmal Bang Retail Research)
*Result is marginally below expectations* - Asset quality performance is below expectations while loan growth is encouraging
Net Interest Income came at Rs. 10936 Cr vs expectation of Rs. 10600 Cr, YoY Rs. 9280 Cr, QoQ Rs. 10431 Cr
Non Interest Income came at Rs. 3996 Cr vs expectation of Rs. 4015 Cr, YoY Rs. 6143 Cr, QoQ Rs. 4111 Cr
PBP came at Rs. 8894 Cr vs expectation of Rs. 8883 Cr, YoY Rs. 10776 Cr, QoQ Rs. 8540 Cr
Provisions came at Rs. 2852 Cr vs expectation of Rs. 2602 Cr, YoY Rs. 7594 Cr, QoQ Rs. 2883 Cr
Adj. PAT came at Rs. 4616 Cr vs expectation of Rs. 4362 Cr, YoY Rs. 2599 Cr, QoQ Rs. 4403 Cr
Gross NPA came at Rs. 43148 Cr vs QoQ Rs. 41373 Cr at 5.15% vs QoQ 4.96%
Net NPA came at Rs. 9306 Cr vs QoQ Rs. 9180 Cr at 1.16% vs QoQ 1.14%
Slippages came at Rs. 7231 Cr vs QoQ Rs. 5523 Cr with slippage ratio of 3.92% vs QoQ 3.01%
BB & Below book came at Rs. 13975 Cr vs QoQ Rs. 13098 Cr with slippage ratio of 1.89% vs QoQ 1.79%
Bank held Covid-19 related provision of Rs. 6,425 Cr (87 bps) at June 30, 2021.
Total advances increased to Rs. 7.39 Lac Cr (+1% QoQ & +17% YoY). Domestic loan portfolio grew by 20% YoY. YoY growth is highest in last many years and indicates bank is gaining market share during this tough macro phase.
Quarter EPS is Rs. 6.7
Share is trading at P/E of 14.9x FY23E EPS & 2.6x trailing P/Adj. BV (adj for subdiaries)

*EXCELLENT NEWS FOR INDIA*

A new study in the UK has found that Oxford AstraZeneca vaccines, manufactured by Serum Institute of India and administered in India under the trade name Covishield, offers protection which may last a whole lifetime.

As per the study, the vaccine not just generates antibodies against the SARS-COV-2 virus but also created “training camps” in the body, to enable search-and-destroy T-cells to even kill new variants.

As reported by The Sun, authors of the study are scientists from Oxford, UK and Switzerland. who published in the Nature journal that adenovirus vaccines like those developed Oxford AstraZeneca and Johnson & Johnson can train the body to continue to make vital T-cells even from a long time after antibodies from the vaccine shot wane. They say it could possibly keep making them for life.

"The T-cells that come from these cellular training camps appear to have a very high level of ‘fitness’,” said, researcher Prof Burkhard Ludewig, of Cantonal Hospital in Switzerland. He continues, “Adenoviruses have co-evolved with humans over a very long time, and learned a lot about the human immune system in the process.”

As per the study’s findings, adenoviruses have the ability to penetrate long-lived tissue cells. These cells, called fibroblastic reticular cells, can act as T-cell “training grounds”.

The new findings add weight to recent studies that showed the Oxford AstraZeneca vaccine as more effective at generating the T-cells in comparison to Pfizer and Moderna, which are both mRNA vaccines.

As per Prof Paul Klenerman, of Oxford’s Nuffield Department of Medicine, said: “Millions of people have received adenovirus vaccines around the world. The ultimate goal with these vaccines is the induction of long-term immune system protection using both antibodies and T-cells. This research helps us to understand more on the process of vaccination, and why the effects on killer T-cells are so prolonged.”
https://www.dnaindia.com/health/report-oxford-astrazeneca-vaccine-covishield-may-provide-protection-for-life-finds-new-uk-study-adenovirus-covid-19-2900920
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News we all can definitely use......

Delhi Allows Cinema Halls To Operate with 50% Capacity from Monday

Also allows Buses and Metro to Run at Full capacity

ITC Q1 profit rises 28.6% to Rs 3,013.5 crore, revenue jumps 36.4% to Rs 12,959 crore

https://www.moneycontrol.com/news/business/earnings/itc-q1-profit-rises-to-rs-3013-5-crore-revenue-comes-jumps-to-rs-12959-crore-7218551.html

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MARKET WIZARD NEWSLETTER ISSUE 20

🎯Fundamental Stocks

▶️ Prestige Estate
▶️ Sundaram Clayton

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▶️ Force Motors - SPECIAL PICK
▶️ Jyothy Lab
▶️ Kirloskar Oil Eng
▶️ Rane Holding
▶️ SDBL

TEAM MARKET WIZARD

ITC Q1 profit rises 28.6% to Rs 3,013.5 crore, revenue jumps 36.4% to Rs 12,959 crore

Cigarette-FMCG-to-hotel major ITCon July 24 has reported a 28.6 percent year-on-year growth in standalone profit at Rs 3,013.5 crore in the quarter ended June 2021, partly driven by low base in the year-ago quarter. The Q1FY21 quarter was impacted by first wave of Covid-19.

Profit was at Rs 2,342.76 crore in corresponding period previous fiscal.

Revenue from operations in Q1FY22 increased 36.4 percent year-on-year to Rs 12,959.15 crore, and revenue (excluding excise duty) jumped 37.1 percent YoY to Rs 12,217.13 crore during the quarter. The topline was led by cigarettes, FMCG and paper segments.

Segmentwise Update

ITC said cigarette business registered a 32.9 percent year-on-year growth at Rs 5,122.19 crore and its earnings before interest & tax (EBIT) jumped 36.7 percent to Rs 3,220.94 crore in Q1FY22.


FMCG-Others segment's revenue grew by 10.4 percent to Rs 3,725.55 crore and EBIT shot up 38.3 percent to Rs 173 crore in Q1FY22, compared to corresponding period last fiscal.

"In respect of FMCG-Others segment, EBITDA for the quarter ended June 2021 is Rs 298.73 crore, against Rs 257.34 crore in June quarter 2020," said ITC.

Hotels business reported a massive 463.5 percent year-on-year growth in revenue at Rs 127.24 crore as year-ago quarter impacted the business badly. ITC has narrowed its EBIT loss of hotels business to Rs 151.45 crore from Rs 242.58 crore in the same period.

After severe disruptions during the quarter, hotels business is rebounding with the easing of restrictions led by leisure destinations, staycations and weekend getaways. Structural cost management actions aid in mitigating impact," ITC reasoned.

Agri business segment revenue in Q1FY22 at Rs 4,091.27 crore grew by 9.2 percent and its EBIT at Rs 195.74 crore increased by 9.5 percent compared to corresponding period last fiscal.

Paperboards, paper and packaging segment registered a 54.2 percent year-on-year growth in revenue at Rs 1,582.65 crore and 145.3 percent increase in EBIT at Rs 392.83 crore in the quarter ended June 2021.

ITC said there was strong rebound across operating segments despite operational constraints in the wake of the second wave. Standalone earnings before interest, tax, depreciation and amortisation (EBITDA) shot up 50.8 percent to Rs 3,992.16 crore compared to year-ago quarter.

Other income during the quarter fell 52.2 percent to Rs 428.99 crore.

Zee media Q1 : Net Profit Down 14 % To Rs 9 cr (QOQ), Down 26 % YOY

Revenue down 6.5 % To Rs 170 cr (QOQ), Up 29 % YOY

ICICI Bank Q1 First Cut – Stable Asset quality…Lower Provision drive bottomline  

 

·         Q1 Net profit Rs4616cr (up 77.6% YoY) – Expectation Rs4140cr

·         Net Interest Income Rs10936cr (up 18% YoY) – Expectation Rs10730cr

·         GNPA 5.15% vs 4.96% (QoQ) – Expectation 5.40%

·         NPA 1.16% vs 1.10 – expectation 1.3%

·         Provision Rs2852cr (down 62.4% YoY) – expectation Rs3680cr

·         Loans to builders stood at Rs 23,005 crore, up 5.3% year-on-year. The bank disclosed that 13% of these loans were either classified as BB or below, or were NPAs.

·         Total advances for the bank rose 17% year-on-year to Rs 7.4 lakh crore. Total deposits rose to Rs 9.26 lakh crore, a growth of 16% from a year ago.

*PEG Ratio*

1) An iPhone is more expensive than Oppo

2) But what if an i Phone helps you to impress your Client

3) A Maruti Alto may be less expensive than a Honda City but what if a Honda City gets you a business deal because your Client saw you as more capable than the person who came to him in an Alto

3) The PEG Ratio is somewhat similar

4) Some stocks may seem very expensive to buy but because the growth rate is high for such a stock, the investor can recoup his investment faster than what the P/E Ratio indicates

5) Let's say the P/E Ratio is 10. In simple words it means it will take 10 years to recoup the Rs 10 invested if there's no growth in earnings. That is quite a long period.

6)But the scenario changes if there's growth in earnings year on year. Hold your horses and understand a little more

7) What if the earnings growth rate of this stock is to 100%

8) This means that if you paid Rs 10 for a Rs 1 earning then by end of year 1 the earning is already Rs 2 & the stock price itself would double to Rs 20 at the very least

9) Because any company that doubles profit will have its P/E re-rated from 10 to a higher value because the demand for such a stock would soar

10) If the Growth Rate was 50% then you would double your investment in a little less than 2 years

11) Therefore the Expensive Price you pay for the stock cannot be seen in isolation

12) It has to be seen in combination with the Earnings Growth Rate

*Mukesh Chothani (CPFA,CFGP )*

Tata Tele Services, TTML/TTBS is all set to compete face-to-face with Reliance Jio platforms. TTML/TTBS is very much part of $113 billion Tata group. Entire group now focusing on reviving TTML/TTBS. With massive Ecommerce Digital technology push and other initiatives, soon Tata group will expand to $200 billion, TTML/TTBS will be its new blue eyed poster boy, next blue-chip-in-making from Tata group. Short term target is 100 plus. In 2019 TATA Sons announced their plans to revive TTML. It is now a brand new company. The media briefing to Economic Times and TimesNow of May 25, 2021 is significant. It says, TTML/TTSL is rebranded as new TTBS, Tata Tele Business Services, with a pan India presence. Tata Sons cleaned up past financial mess and TTML/TTBS will resume operations on a clean slate. No debt means, zero interest payout and high profit. Existing businesses have very high margin. New confirmed businesses include, TATA SuperApp ECommerce platform, SmartFlo cloud communication automation product suite, New businesses with SMEs, 5G services to telecom operators, Tata Electronics and Tata Communications support works, Existing steady businesses to continue (Broadband, Fixed lines, Tata Sky), AGR dues recalculation and possible reduction by court and to be paid back by TATA, Debts to be paid back by TATA, New businesses coming up for TTML utilizing the synergy/co-operation within $113 billion Tata group, many more opportunities in pipeline. TTML and TTSL are being revived by TATA Sons as TTBS. Newly formed TTBS is 100% debt free, no debt means, zero interest payout and very high profit, this alone can pull TTML share price to above Rs.100 in short term. Mind-blowing returns expected in medium and long terms. Media briefing of May 25, 2021, confirmed TTML/TTBS role in Tata SuperApp digital ECommerce platform. Tata SuperApp is all set for pilot launch in Bengaluru in September,2021. Newly re-branded and financially revamped TTBS/TTML will gain most from Tata SuperApp, since TTML/TTBS will run the show by providing direct technical support and infrastructure to Tata Digital, besides other benefits. To make SuperApp bigger and better, Tata group in recent weeks, has been on an acquisition spree, acquiring majority stake in BigBasket, CureFit and 1MG. Few more are in pipeline, discussions are in progress. Tata Digital is scouting for strategic tie-ups with licensed banks and insurance companies to offer financial intermediation. These includes services such as credit card applications, insurance distribution, micro loans and even merchant management and industry veterans will join the board to manage. For selling all financial services and products a neo-bank is also being added. TTML/TTBS recently launched Smartflo to boost Enterprise Cloud Communication. TTML/TTBS is going to become the top B2B company in this segment to serve 63 million SME businesses in our country. TTML is an unique opportunity, very few floating stock with public, promoters wont sell, the ONLY penny stock with backing from a huge industrial group like TATA group, there is no other stock like TTML, dont sell a single share of TTML, buy at current price if you can. TTML will be the biggest multibagger of this decade.

*MONEY TIMES TALK*
*JULY 24, 2021*

• In spite of writing off NPAs of Rs. 3100 cr., *HDFC Bank* posted a better Q1FY22 as the EPS stood at Rs. 14.4 v/s Rs. 12.60 last year. The share must be retained. Hold.

• *Tata Motors* plans to raise Rs. 500 cr. through NCDs on a private placement basis. As the Company has a neutral outlook, it would be wise to remain away for some time.

• *Asian Paints* has once again posted excellent Q1 results with NP rising 161% to Rs. 574.30 cr. Accumulate in small quantities.

• A veteran market man recommends to buy *Ajanta Soya, Birla Corporation, Godavari Drugs, Herenba Industries, IOL Chemicals, Lasa Supergenerics, Pennar Industries, Reliance Chemotex* cum 20% dividend, *Rico Auto, SNL Bearings* cum 45% dividend, *Shankara Building Products* and *VIP Clothing*.

• High trading volumes of shares has boosted the profitability of *ICICI Securities*. It posted NP of Rs. 3107.2 cr. on its equity capital of Rs. 1612.8 cr. The EPS on its Rs. 5 paid-up share amounts to Rs. 9.64 v/s Rs. 5.99 last year. Add.

• *Bajaj Finance*’s Q1 consolidated profit rose 4% to Rs. 1002 cr. It has managed to perform better in spite of Covid conditions. A good long-term bet.

• Higher claims and provisions dragged NP of *ICICI Prudential* into the negative zone by Rs. 186 cr. against last year’s profit of Rs. 286 cr. Its premium collection for April-June 21 is higher by about 19%. The share may be retained.

• Some analysts feel that the pent up demand will boost the demand for tiles in the next few quarters. Buy *Kajaria Cermics, Somany Ceramics* and *Cera Sanitaryware*.

• *Alok Industries* now under the Reliance management continues to remain in the red. Sell before its price plunges.

• SEBI and DRI are reportedly probing the Adani group deals. It would be prudent to sell *Adani Port, Adani Transmission*, and *Adani Green*.

• *Supreme Petrochem* posted Q1FY22 EPS of Rs. 15.46 v/s a negative EPS of Rs. 1.24 in Q1FY21. Current years is expected to be good. Add.

• As per reports, local procurement for Defence is likely to rise 6% this year. Add HAL, *MTAR Tech* and *Bharat Dynamics*.

• *Wipro* to invest about $ 1 bn. on its Cloud capabilities. This is one of the most reasonably priced IT share. Add.

• *Sterlite Technologies* to invest Rs. 200 cr. to expand optical fiber capacity in USA on top of Rs. 1500 cr. already deployed since 2019. The 5G rollout will be a big booster in the coming months. Add.

• *Thirumalai Chemicals* posted excellent Q1 results with profit of Rs. 6511 cr. v/s loss of Rs. 2010 cr. last year. The quarterly EPS stands at Rs. 6.36 v/s loss of Rs. 1.96/share in Q1FY20. A good share to add.

• *ACC*’s consolidated Q1 NP rose 109% to Rs. 569 cr. against Rs.271 cr. same time last year. With infrastructure expenditure on the rise, this share must be added.

• *Federal Bank* reported 23% fall in its Q1FY22 profit to Rs. 367 cr. on 5% higher revenue of Rs. 4006 cr. as NPAs rose to Rs. 4649 cr. v/s Rs. 3655 cr. in Q1FY21. Avoid for some time.

• *HUL*’s Q1 NP rose 9.6% to Rs. 2061 cr. on the back of a 12.7% growth in sales. The Company is cautiously optimistic about immediate growth. Retain.

• *Ultratech Cement* posted Q1 NP of Rs. 1703 cr. up from Rs. 794 cr. in Q1FY21. The cement boom is likely to continue in the next few quarters. Add.

• The lockdown hurt the sales of *Bajaj Auto* but exports softened the impact. The Q1 revenue was Rs. 7386 cr. The share may be added on declines.

• *VI (previously Vodafone Idea) * has received DoT nod to raise Rs. 15,000 cr. in FDI. Although this is just an enabling approval, the rising debt may become a big problem in the future. Avoid.

• *Thirumalai Chemicals* producing 15 chemicals including phthalic anhydride, maleic acid and fine chemicals and exporting to 34 countries has notched Q1FY22 EPS of Rs 6.4 against Rs 11.5 in FY21. Buy for 30% gain.

• *Indian Bank*, which made a lifetime high of Rs 428 on 17 Nov 2017 and amalgamated Allahabad Bank with itself, has notched Q1 EPS of Rs 11.1 against FY21 EPS of Rs 27. Its FY22 EPS could rise to Rs 33+ and a P/E of 12x can take the share price to Rs 396 in the medium term. Buy\Add.

• *Deccan Cements*, manufacturer of a wide variety of cements & undergoing expansions, has posted 847% higher Q4FY21EPS of Rs 15.8 in and 103% higher FY21 EPS of Rs 82.2 on its small equity of Rs 7 cr. The share, which made a lifetime high of Rs 1280 on 28 April 2017, is poised to hit the four-figure mark in the medium-to-short term. Buy.

• *IIFL Securities* from India Infoline is a key player in the retail and institutional segments with 2500 offices in 500 cities. It continues to expand after acquiring 1.1 million demat accounts from Karvy and has notched 108% higher Q4FY21 EPS of Rs 2.4 and FY21 EPS of Rs 7. It may post FY22 EPS of Rs 12. Buy for 30% gain.

• 90 year old *Federal Bank* with 1200+ branches and 1900+ ATMs/Recyclers spread across India has notched 58% higher Q4FY21 EPS of Rs 2.6 and 5% higher FY21 EPS of Rs 8.3, which could lead to FY22 EPS of Rs12. A P/E of 10x can take its share price to Rs 120 in the medium term.

• *J & K Bank* posted Q4FY21 EPS of Rs 4.5 and FY21 EPS of Rs 6. This can take its FY22 EPS to Rs 10 in FY22. The share is expected to double from the current level.

• *Suryaamba Spinning Mills* has notched 152% higher Q4FY21 EPS of Rs 10.6 and FY21 EPS of Rs 14.5. It may post FY22 EPS of Rs 25. The share is poised to gain 40% from the current level.

• *Shreyans Industries* with 94,000 TPA capacity of writing & printing paper and 12MW of the captive power plant has notched Q4FY21 EPS of Rs 6, which could take FY22 EPS to Rs 20+. The share is expected to touch Rs 150 mark.

• *LIC Housing Finance* the largest provider of finance on existing property for business/ personal needs to professionals with 284 marketing offices has notched FY21 EPS of Rs 54 despite 38% higher impairment of Rs 1318 cr. Its FY22 EPS could rise to Rs 65 and the share has the potential to touch Rs 650 mark. Add.

• *Ajanta Soya* primarily engaged in manufacturing Vanaspati and cooking oils with bakery applications products like biscuits, puffs, pastries etc. has posted 459% higher Q4FY21 EPS of Rs 5.9 and 155% higher FY21 EPS of Rs 15.6. Buy for 35% appreciation.

• *Dhunseri Ventures* having notched Q4FY21 consolidated EPS of Rs 33.7 and FY21 consolidated EPS of Rs 66.3, is expected to post FY22 EPS of Rs 85. The share may rise to Rs 500 in the medium. Accumulate.

• *Sree Rayalaseema Hypo Strength*, manufacturer of organic and inorganic chemicals for almost all industries with a 10MW power plant and 11.25 MW of wind power, has posted 19% higher Q4FY21 EPS of Rs 7.9 and 60% higher FY21 EPS of Rs 35.3. It may post FY22 EPS of Rs 45. The share has all the potential to gain 40%. Buy.

• *Manappuram Finance*, one of India’s leading gold loan NBFC, has notched 20% higher Q4FY21 EPS of Rs 5.5 and 17% higher FY21 EPS of Rs 20.4. It may post FY22 EPS of Rs 24. The share is poised to rise by 20% in the short run. Buy.

• Textile stocks are the flavour due to rising yarn prices and USA’s ban on imports from China. Buy *Reliance Chemotex* cum 20% dividend for decent short term gains. It is available at an attractive valuation and promoters have increased their stake to 72%.It posted 272% higher Q4FY21 EPS of Rs.7.66.

• Dividend paying *Lasa Supergenerics* is a vertically integrated veterinary and human API manufacturer that has added a new product Oxyclozanide, which has a huge demand. The management is confident of a strong order book once production commences. Buy for a quick gain in the short term..

• *Pennar Industries*, a leading value added engineering products company with 3, 50,000 TPA, has won fresh orders worth Rs. 571 crore. It posted its highest ever quarterly PAT in the last decade in Q4 FY21. Its significant presence in automobiles, building & construction, general engineering and power qualifies it for 2x gains from hereon.

• *Morarka Finance* is being accumulated by value investors as it holds 2 crore shares in Dwarikesh Sugar, which is doing exceedingly well.

• *EID Parry* provides an opportunity to participate in two structurally improved stories – Sugar and Fertilizers. Excellent management and reasonable valuation makes it investment worthy.

• *HIL*, formerly Hyderabad Industries Ltd., maker of ‘Charminar’ asbestos cement products is a well-managed co. that has further de-risked its business by the acquisition of a flooring company.

• *Mastek Ltd*. recommended in Money Times last month has posted an excellent financial performance, which boosted its share price handsomely by 25%. The current IT boom will enrich investors.

• Last week’s recommendation of two gold loan companies, *Muthoot Finance and Manappuram Finance* have done well during the week. Hold.
*SV Global Mills*, a demerged entity of the textile giant, *Binny Ltd*., has a good land bank in prime locations in Chennai and Bangalore valued around Rs.1500 crore. It has announced its first development plan for Bangalore and others will follow soon. Buy this debt-free co. stock for 50% gain.

• Just listed *Zomato Ltd*. has created history both with the size of its IPO and impressive listing belying all market experts. This unicorn start-up stock is set to scale to Rs.200.

• The new CEO at *Signet Industries* has turned around the operations of this agri sector co. into irrigation systems. It registered a quarterly EPS of Rs.2. The stock trades cheap around Rs.53 level and can turn out to be a multi-bagger.

• *Anjani Portland Cement* from the House of Chettinad Cement recently acquired Bhavya Cements. Its topline and bottomline could double from hereon. Buy around Rs.460 and at every decline for handsome gains. The stock may touch the 4 digit mark.

• Cement cos. are declaring blockbuster numbers like *Asian Paints* did. Is it the turn of adhesive manufacturer Jubilant Industries, manufacturer of Jivanjor adhesive? Keep it on your radar.

• *Adani Power* is once again come near Rs.90 level, from where it began its upward journey. Buy the stock with a stop loss of Rs.90 for at least 50% appreciation.
BS