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FREE FINANCIAL EDUCATIONAL TELEGRAM CHANNEL
Disclaimer : This channel DOES NOT provide any stock market related advice or recommendation
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
https://t.me/marketswizard
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Market Wizard
FREE FINANCIAL EDUCATIONAL CHANNEL
Disclaimer : We are not SEBI Registered. Please consult your financial advisor before investing.
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
Disclaimer : We are not SEBI Registered. Please consult your financial advisor before investing.
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
*ITC Ltd.* | *CMP* Rs. 212 | *M Cap* Rs. 260970 Cr | *52 W H/L* 239/163
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 13247.3 Cr (-7.6% QoQ, 35.5% YoY) vs expectation of Rs. 11307.6 Cr, QoQ Rs. 14342.3 Cr, YoY Rs. 9774.1 Cr
EBIDTA came at Rs. 4443.7 Cr (-8.8% QoQ, 50.9% YoY) vs expectation of Rs. 3989.6 Cr, QoQ Rs. 4871.1 Cr, YoY Rs. 2945.6 Cr
EBITDA Margin came at 33.5% vs expectation of 35.3%, QoQ 34%, YoY 30.1%
Adj. PAT came at Rs. 3276.5 Cr vs expectation of Rs. 3130.8 Cr, QoQ Rs. 3755.5 Cr, YoY Rs. 2511 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 16.5x FY22E EPS
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 13247.3 Cr (-7.6% QoQ, 35.5% YoY) vs expectation of Rs. 11307.6 Cr, QoQ Rs. 14342.3 Cr, YoY Rs. 9774.1 Cr
EBIDTA came at Rs. 4443.7 Cr (-8.8% QoQ, 50.9% YoY) vs expectation of Rs. 3989.6 Cr, QoQ Rs. 4871.1 Cr, YoY Rs. 2945.6 Cr
EBITDA Margin came at 33.5% vs expectation of 35.3%, QoQ 34%, YoY 30.1%
Adj. PAT came at Rs. 3276.5 Cr vs expectation of Rs. 3130.8 Cr, QoQ Rs. 3755.5 Cr, YoY Rs. 2511 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 16.5x FY22E EPS
*Polycab – Q1FY22 Concall Update – Nirmal Bang Sec.*
*Outlook – Long Term Positive*
*_Second half is likely to be better than the first half of the year_*
The stock is trading at x FY22E consensus earnings
• Company’s performance has been encouraging, despite challenges posed by lockdown in many states
• On the growth side, construction activity has continued for better part of the quarter, albeit at a slower pace.
• On the flip side, raw material volatility continued. *The inflation in the input basket was in low-teens during the quarter and the blended price hike was in high single to just double-digit*. In mid-June, sharp correction in copper prices caused further complications to an improving demand scenario as dealers refrained from stocking in anticipation of price cuts. Accordingly, inventory levels in distribution channel dipped significantly with secondary sales tracking ahead of primary sales. The management believes this is a temporary sentimental setback and primarily will eventually catch up with underlying demand.
• *July seems to be panning out better than previous months. Retail outlets across the market are largely open at the moment and activity is picking up.*
• Cost saving initiatives were more than offset by unfavorable operating leverage and input cost volatility, this limited EBITDA margin to 7.3%. However, *management is confident of maintaining normal level of margins i.e. 11-13% EBITDA on full year basis*
• Polycab acquired Silvan Innovation Labs, last month. It is a Bangalore-based technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
• Capex – Rs 300 cr for FY22
• *On 5 yr (by FY26) basis the company is targeting Rs20,000 cr revenues*
• Receivable days in current quarter were lower due to lower sales and inventory days were higher. The management expects both these numbers to normalise going forward.
• *Under project Udaan, the company has identified cost saving options to the tune of ~280 bps which would be reflected in coming 1-2 yrs*
• Generally, Q4 contributes around 28-30% of yearly sales whereas Q1 contributes 22%
*_Wires and Cables_*
• Wires and Cables revenue doubled on YoY basis despite challenges posed by the second wave
• Profitability was impacted by raw material inflation and adverse operating leverage
*_FMEG_*
• FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states.
• Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum. Premiumization trend continued.
• Adverse operating leverage affected profitability – due to higher fixed cost on two accounts (a) higher increments given to employees after 2 yrs (b) higher A&P spends
• *Maintained earlier guidance of high single digit EBIT margins in 2 yrs*
*Outlook – Long Term Positive*
*_Second half is likely to be better than the first half of the year_*
The stock is trading at x FY22E consensus earnings
• Company’s performance has been encouraging, despite challenges posed by lockdown in many states
• On the growth side, construction activity has continued for better part of the quarter, albeit at a slower pace.
• On the flip side, raw material volatility continued. *The inflation in the input basket was in low-teens during the quarter and the blended price hike was in high single to just double-digit*. In mid-June, sharp correction in copper prices caused further complications to an improving demand scenario as dealers refrained from stocking in anticipation of price cuts. Accordingly, inventory levels in distribution channel dipped significantly with secondary sales tracking ahead of primary sales. The management believes this is a temporary sentimental setback and primarily will eventually catch up with underlying demand.
• *July seems to be panning out better than previous months. Retail outlets across the market are largely open at the moment and activity is picking up.*
• Cost saving initiatives were more than offset by unfavorable operating leverage and input cost volatility, this limited EBITDA margin to 7.3%. However, *management is confident of maintaining normal level of margins i.e. 11-13% EBITDA on full year basis*
• Polycab acquired Silvan Innovation Labs, last month. It is a Bangalore-based technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
• Capex – Rs 300 cr for FY22
• *On 5 yr (by FY26) basis the company is targeting Rs20,000 cr revenues*
• Receivable days in current quarter were lower due to lower sales and inventory days were higher. The management expects both these numbers to normalise going forward.
• *Under project Udaan, the company has identified cost saving options to the tune of ~280 bps which would be reflected in coming 1-2 yrs*
• Generally, Q4 contributes around 28-30% of yearly sales whereas Q1 contributes 22%
*_Wires and Cables_*
• Wires and Cables revenue doubled on YoY basis despite challenges posed by the second wave
• Profitability was impacted by raw material inflation and adverse operating leverage
*_FMEG_*
• FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states.
• Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum. Premiumization trend continued.
• Adverse operating leverage affected profitability – due to higher fixed cost on two accounts (a) higher increments given to employees after 2 yrs (b) higher A&P spends
• *Maintained earlier guidance of high single digit EBIT margins in 2 yrs*
Jindal Steel and Power will be going for competitive bidding process for sales of Jindal Power limited with base price of Rs.7401cr offered by Promoter company. Positive
*Symphony Ltd.* | *CMP* Rs. 1069 | *M Cap* Rs. 7478 Cr | *52 W H/L* 1530/803
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 230 Cr (-32.2% QoQ, 49.4% YoY) vs QoQ Rs. 339 Cr, YoY Rs. 154 Cr
EBIDTA came at Rs. 10 Cr (-88.1% QoQ, -300% YoY) vs QoQ Rs. 84 Cr, YoY Rs. -5 Cr
EBITDA Margin came at 4.3% vs QoQ 24.8%, YoY -3.2%
Adj. PAT came at Rs. 6 Cr vs QoQ Rs. 62 Cr, YoY Rs. 2 Cr
Quarter EPS is Rs. 0.9
Share is trading at P/E of 42.2x FY22E EPS
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 230 Cr (-32.2% QoQ, 49.4% YoY) vs QoQ Rs. 339 Cr, YoY Rs. 154 Cr
EBIDTA came at Rs. 10 Cr (-88.1% QoQ, -300% YoY) vs QoQ Rs. 84 Cr, YoY Rs. -5 Cr
EBITDA Margin came at 4.3% vs QoQ 24.8%, YoY -3.2%
Adj. PAT came at Rs. 6 Cr vs QoQ Rs. 62 Cr, YoY Rs. 2 Cr
Quarter EPS is Rs. 0.9
Share is trading at P/E of 42.2x FY22E EPS
Kitex Garments receives investment offer from Sri Lanka
https://www.moneycontrol.com/news/business/kitex-garments-kitex-group-kerala-kitex-telangana-investment-kitex-sri-lanka-offer-dr-d-venkateshwaran-7219561.html
https://www.moneycontrol.com/news/business/kitex-garments-kitex-group-kerala-kitex-telangana-investment-kitex-sri-lanka-offer-dr-d-venkateshwaran-7219561.html
Moneycontrol
Kitex Garments Receives Investment Offer From Sri Lanka
Sri Lankan Deputy High Commissioner to Chennai, Dr D Venkateshwaran told Kitex MD Sabu Jacob there would be “complete co-operation” if Kitex were to invest in Sri Lanka.
Coffee ⬆️+ Ethyl acetate ⬆️= Decaffeinated Coffee ☕️
Ethyl acetate (EA) is an efficient green solvent & its wide range of applications👇
Pharmaceutical
Surface coating & thinner
Adhesives
Rubber & polymers
Flavors & essences
Nail polish remover
Decaffeinating of Tea & Coffee
#JubilantIngrevis is 7th largest mfg of EA in the world
Jubilant Ingrevia being the 7th largest producer globally of EA.
- With US Coffee futures up by 17% looks like demand for EA with improve drastically.
Ethyl acetate (EA) is an efficient green solvent & its wide range of applications👇
Pharmaceutical
Surface coating & thinner
Adhesives
Rubber & polymers
Flavors & essences
Nail polish remover
Decaffeinating of Tea & Coffee
#JubilantIngrevis is 7th largest mfg of EA in the world
Jubilant Ingrevia being the 7th largest producer globally of EA.
- With US Coffee futures up by 17% looks like demand for EA with improve drastically.
*IndusInd Bank Board Approves Rs 30,000 Crore Fund Raise*
The board of private sector lender IndusInd Bank Ltd approved a Rs 30,000 crore fund raising plan on Saturday, according to a filing with the stock exchanges. The bank may raise these funds through routes including qualified institutional placement, American Depository Receipts, Global Depository Receipts, and any other mode, according to the board's decision.
Apart from these, the bank's board approved the appointment of Jayant Vasudeo Deshmukh as additional director on the board and approved the appointment of Haribhakti & Co and MP Chitale & Co. as joint statutory auditors.
In September 2020, IndusInd Bank too raised Rs 3,288 crore by preferential allotment of shares to its promoter entities.
The board of private sector lender IndusInd Bank Ltd approved a Rs 30,000 crore fund raising plan on Saturday, according to a filing with the stock exchanges. The bank may raise these funds through routes including qualified institutional placement, American Depository Receipts, Global Depository Receipts, and any other mode, according to the board's decision.
Apart from these, the bank's board approved the appointment of Jayant Vasudeo Deshmukh as additional director on the board and approved the appointment of Haribhakti & Co and MP Chitale & Co. as joint statutory auditors.
In September 2020, IndusInd Bank too raised Rs 3,288 crore by preferential allotment of shares to its promoter entities.
Arvind Fashions - A Step In The Right Direction: ICICI Securities
Arvind Fashions Ltd. announced that Arvind Lifestyle Brands Ltd., a wholly owned subsidiary of Arvind Fashions, has signed a definitive agreement for the strategic sale of assets of its Unlimited retail business to V-Mart Retail Ltd. for an all cash consideration of Rs 1.5 billion.
Unlimited operates a chain of 74 value fashion retail stores across South and West India and as a part of the transaction, it will sell the assets of these 74 retail stores along with ‘Unlimited’ brand to V-Mart at its book value and will thus, recover the entire capital employed in the business.
We believe the loss making Unlimited was a key drag on the company’s operational performance.
This divestment will enable the company to focus on its six high conviction brands, strengthen its balance sheet by repaying debt and improve company-wide profitability and return ratios.
Arvind Fashions Ltd. announced that Arvind Lifestyle Brands Ltd., a wholly owned subsidiary of Arvind Fashions, has signed a definitive agreement for the strategic sale of assets of its Unlimited retail business to V-Mart Retail Ltd. for an all cash consideration of Rs 1.5 billion.
Unlimited operates a chain of 74 value fashion retail stores across South and West India and as a part of the transaction, it will sell the assets of these 74 retail stores along with ‘Unlimited’ brand to V-Mart at its book value and will thus, recover the entire capital employed in the business.
We believe the loss making Unlimited was a key drag on the company’s operational performance.
This divestment will enable the company to focus on its six high conviction brands, strengthen its balance sheet by repaying debt and improve company-wide profitability and return ratios.
*JSW Steel Concall Update*
*Outlook – Neutral*
Q1FY22 result was ahead of expectation and reported standalone EBITDA/T of Rs.26100. Going forward company is likely to see cost increasing on account of increasing Coke prices and high cost inventory use of iron ore in Q2 whereas selling prices is stable QoQ and company will be benefiting from higher volume. Over all EBITDA/T is likely to see some declining trend in Q2.
*Guidance:*
The management reiterated its production/sales guidance of 18.5mt/17.4mt for FY22
The company is targeting a consolidated steel output of 30.5 MTPA by FY25 with the expansion of Dolvi and Vijaynagar plant.
Capex guidance maintained at Rs.18200 for FY22
• Sales volumes declined 11% QoQ to 3.6mt in 1QFY22.
• Inventories were higher this quarter as 120000 tonnes of stock could not be shipped due to sluggish demand and ports being congestive.
• International steel prices moving up sharply in Q1FY22 specially in Europe and USA by 30% and 40% respectively which supported the company’s realisation to move up. Exports grew to 1.2 mnt on a consolidated basis which is 35% of total sales. However, domestic steel prices are still at a discount as compared to international prices and realisation can move up with revival of demand.
• Coking coal cost would increase by USD30–35/t in 2QFY22 and would rise further in 3QFY22.
• Debt has marginally gone up by Rs 2374 cr as compared to previous quarter mainly due to investment being made in working capital side and stocking up of iron ore and coking coal for its Dolvi operations.
*Investment in Group companies*
• The company is looking to get captive renewable power in SPV being set up by JSW Energy for 958 MW of power. We believe this will help to reduce their dependency on fossil fuel based power. Relatively, cost of renewable power is lower as compared fossil fuel based power. We expect operating cost to reduce once this plant is commissioned in next 18 months.
• The company will invest Rs 750 Cr in JSW Paints with Rs 300 Cr of investment to happen in Sept quarter which will help to source paints for coated capacity Expansion from 0.7 mnt to 2.5 mnt.
• 5MTPA Dolvi expansion is set to be commissioned in current quarter.
• Share is trading at EV/EBITDA of 6.97x FY23E EBITDA
*Outlook – Neutral*
Q1FY22 result was ahead of expectation and reported standalone EBITDA/T of Rs.26100. Going forward company is likely to see cost increasing on account of increasing Coke prices and high cost inventory use of iron ore in Q2 whereas selling prices is stable QoQ and company will be benefiting from higher volume. Over all EBITDA/T is likely to see some declining trend in Q2.
*Guidance:*
The management reiterated its production/sales guidance of 18.5mt/17.4mt for FY22
The company is targeting a consolidated steel output of 30.5 MTPA by FY25 with the expansion of Dolvi and Vijaynagar plant.
Capex guidance maintained at Rs.18200 for FY22
• Sales volumes declined 11% QoQ to 3.6mt in 1QFY22.
• Inventories were higher this quarter as 120000 tonnes of stock could not be shipped due to sluggish demand and ports being congestive.
• International steel prices moving up sharply in Q1FY22 specially in Europe and USA by 30% and 40% respectively which supported the company’s realisation to move up. Exports grew to 1.2 mnt on a consolidated basis which is 35% of total sales. However, domestic steel prices are still at a discount as compared to international prices and realisation can move up with revival of demand.
• Coking coal cost would increase by USD30–35/t in 2QFY22 and would rise further in 3QFY22.
• Debt has marginally gone up by Rs 2374 cr as compared to previous quarter mainly due to investment being made in working capital side and stocking up of iron ore and coking coal for its Dolvi operations.
*Investment in Group companies*
• The company is looking to get captive renewable power in SPV being set up by JSW Energy for 958 MW of power. We believe this will help to reduce their dependency on fossil fuel based power. Relatively, cost of renewable power is lower as compared fossil fuel based power. We expect operating cost to reduce once this plant is commissioned in next 18 months.
• The company will invest Rs 750 Cr in JSW Paints with Rs 300 Cr of investment to happen in Sept quarter which will help to source paints for coated capacity Expansion from 0.7 mnt to 2.5 mnt.
• 5MTPA Dolvi expansion is set to be commissioned in current quarter.
• Share is trading at EV/EBITDA of 6.97x FY23E EBITDA
*ICICI Bank Q1FY22 Concall Update*
(Nirmal Bang Securities)
> Advances growth accelerates to 17% YoY (20% for domestic) at seven year highs
> Slippages, BB & Below book and Credit Costs disappoint; expected to remain elevated in Q2 but lower than Q1 levels; H2 to witness improvement
*Outlook: Neutral in near term; Positive in long term*
• Slippages have come in at Rs. 7231 Cr (3.9%) vs QoQ Rs. 5523 Cr (3.0%). Expectation was for ~Rs. 4,000 Cr (2.2%). Average during FY21 was at 2.5%. Retail slippages were at Rs. 6773 Cr while corporate slippages were at Rs. 458 Cr. (Jewellery loans slippages were at over Rs 1100 Cr). Management has guided for a consistent decline in slippages in coming qtrs – Q2 slippages are expected to be lower than Q1 and Q3 lower than Q2.
• Compared to 1st wave, asset quality has worsened more in second wave for CV financing and is better off in personal loans and credit cards.
• GNPA increased to 5.15% vs QoQ 4.96%. NNPA was flattish at 1.16% vs QoQ 1.14%.
• BB & Below book increased to Rs. 13,975 Cr (1.9%) vs QoQ Rs. 13,098 Cr (1.8%) & YoY Rs. 17,110 Cr (2.7%).
• Restructured book increased to Rs. 4672 Cr (0.6%) vs QoQ Rs. 3179 Cr (0.4%). The BB & Below book includes most of the Restructuring accounts.
• Provisions came at Rs. 2852 Cr (1.5%) vs expectation of Rs. 2600 Cr, QoQ Rs. 2883 Cr (1.7%).
• Also the bank utilized Rs. 1050 Cr of contingent provisions during the qtr but this was compensated by a change in provisioning policy which resulted in additional Rs. 1100 Cr of one off provisioning.
• The Bank held aggregate Covid-19 related provision of Rs. 6425 Cr (87 bps) vs QoQ Rs. 7,475 Cr.
• The Credit cost is expected to normalize to 1.2-1.3% once macros stabilize.
• Advances were at Rs. 7.39 Lac Cr and grew by 17% YoY (at 7 year high) & 1% QoQ. The domestic advances grew by 20% YoY and was flat sequentially.
• The retail loan portfolio (67% mix) grew by 20% year-on-year and was flat sequentially.
• Domestic corporate portfolio grew by 11% YoY. 90% of the disbursements in the corporate portfolio was to corporates rated A- and above. A- and above book now forms 73% of the outstanding loans against 56% in FY17.
• NIM was at 3.9% vs QoQ 3.8% & YoY 3.7%. NII increased 18% YoY.
• Opex grew by 30% YoY on the back of a low base. C/I ratio was at 40.4% vs QoQ 41.3% & YoY 30.1%.
• Core profit before provisioning growth (excl. one off other incomes) was healthy at 23% YoY.
Share is trading at P/E of 15x FY23E EPS & 2.6x trailing P/Adj. BV (adjusted for subsidiaries’ value of ~Rs. 130/share)
(Nirmal Bang Securities)
> Advances growth accelerates to 17% YoY (20% for domestic) at seven year highs
> Slippages, BB & Below book and Credit Costs disappoint; expected to remain elevated in Q2 but lower than Q1 levels; H2 to witness improvement
*Outlook: Neutral in near term; Positive in long term*
• Slippages have come in at Rs. 7231 Cr (3.9%) vs QoQ Rs. 5523 Cr (3.0%). Expectation was for ~Rs. 4,000 Cr (2.2%). Average during FY21 was at 2.5%. Retail slippages were at Rs. 6773 Cr while corporate slippages were at Rs. 458 Cr. (Jewellery loans slippages were at over Rs 1100 Cr). Management has guided for a consistent decline in slippages in coming qtrs – Q2 slippages are expected to be lower than Q1 and Q3 lower than Q2.
• Compared to 1st wave, asset quality has worsened more in second wave for CV financing and is better off in personal loans and credit cards.
• GNPA increased to 5.15% vs QoQ 4.96%. NNPA was flattish at 1.16% vs QoQ 1.14%.
• BB & Below book increased to Rs. 13,975 Cr (1.9%) vs QoQ Rs. 13,098 Cr (1.8%) & YoY Rs. 17,110 Cr (2.7%).
• Restructured book increased to Rs. 4672 Cr (0.6%) vs QoQ Rs. 3179 Cr (0.4%). The BB & Below book includes most of the Restructuring accounts.
• Provisions came at Rs. 2852 Cr (1.5%) vs expectation of Rs. 2600 Cr, QoQ Rs. 2883 Cr (1.7%).
• Also the bank utilized Rs. 1050 Cr of contingent provisions during the qtr but this was compensated by a change in provisioning policy which resulted in additional Rs. 1100 Cr of one off provisioning.
• The Bank held aggregate Covid-19 related provision of Rs. 6425 Cr (87 bps) vs QoQ Rs. 7,475 Cr.
• The Credit cost is expected to normalize to 1.2-1.3% once macros stabilize.
• Advances were at Rs. 7.39 Lac Cr and grew by 17% YoY (at 7 year high) & 1% QoQ. The domestic advances grew by 20% YoY and was flat sequentially.
• The retail loan portfolio (67% mix) grew by 20% year-on-year and was flat sequentially.
• Domestic corporate portfolio grew by 11% YoY. 90% of the disbursements in the corporate portfolio was to corporates rated A- and above. A- and above book now forms 73% of the outstanding loans against 56% in FY17.
• NIM was at 3.9% vs QoQ 3.8% & YoY 3.7%. NII increased 18% YoY.
• Opex grew by 30% YoY on the back of a low base. C/I ratio was at 40.4% vs QoQ 41.3% & YoY 30.1%.
• Core profit before provisioning growth (excl. one off other incomes) was healthy at 23% YoY.
Share is trading at P/E of 15x FY23E EPS & 2.6x trailing P/Adj. BV (adjusted for subsidiaries’ value of ~Rs. 130/share)
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Stocks To Watch
JSW Steel: To make strategic investment of Rs 750 crore in JSW Paints in 3-4 tranches between FY22-FY25. In the first tranche of the strategic investment, the company will acquire 1.62 crore shares of JSW Paints for Rs 299 crore. The company will hold 6.88% in JSW Paints on fully diluted basis by Q2.
IndusInd Bank: Board approved raising up to Rs 30,000 crore capital. Bank will raise funds by issuing debt and equity securities through routes including QIP, American Depository Receipts, Global Depositor Receipts. Bank to seek shareholder approval in upcoming annual general meeting.
Indian Bank: Declared Lanco Infratech and Basundhara Green Power as fraud accounts. The accounts have been reported to the RBI. Lanco Infratech’s account--which has an outstanding loan of Rs 577.47 crore--was reported for diversion of funds. Basundhara Green Power’s account—which has an outstanding loan of Rs 11.64 crore--was reported for defective title deed or imperfect mortgage.
NTPC: The 2nd Unit of 800 MW capacity of Darlipali Super Thermal Power Project has completed trial operation and was included in the installed capacity of NTPC. With this, the total installed capacity of NTPC and NTPC group has become 53,450 MW and 66,875 MW respectively.
Navkar Corporation: Board approved the setting up of Inland Container Depot and Private Freight Terminals near Mundra or Pipavav or Northern Maharashtra subject to receipt of requisite approvals and clearances. The cost of the project is estimated up to Rs 300 crore and it will be completed approximately within 36 months from date of commencement of development.
Suzlon Energy: Approved allotment of 1.21 crore equity shares on conversion of 1,304 US$ denominated Convertible Bonds due 2032. The bonds were of face value of $320 each, which after capitalising interest at 2.75% per annum accrued on half yearly basis, aggregated to $423,017.
United Spirits: Approved sale of all equity shares and compulsory convertible preferential shares held by the company in Hip Bar to Prasanna Natarajan, promoter of HipBar, for Rs 52 lakh. The sale is expected to be completed before October 31.
Nectar Lifesciences: To sell non-core and unproductive assets. Proceeds from sales to be used for repayment of bank loans. The office building at Mumbai falls under the non-core assets. Land and building situated at Narbada Industries in Jammu, Empty Hard Gelatin Capsules Unit in Himachal Pradesh and land and building at Basauli in Punjab have been categorised as unproductive assets.
Tata Steel BSL: Appointed Pratik Chatterjee as the Chief Financial Officer effective July 23.
BEML: Approved a plan under which it will transfer parcels of land and buildings to BEML Land Assets. The plan involves demerger of non-core assets from BEML and vesting them in BEML Land Assets. It will also involve reduction and cancellation of share capital of BEML Land Assets. The arrangement is subject to requisite statutory and regulatory approvals and sanction by the respective shareholders.
Engineers India: Has designated Vartika Shukla, Director (Technical) holding additional charge of Director (Finance), EIL as Chief Financial Officer of the company.
Earnings: Larsen & Toubro, Axis Bank, Tata Motors, Kotak Mahindra Bank, SBI Life Insurance Company, Vedanta, Alembic Pharmaceuticals, Apollo Pipes, Coromandel International, DLF, Mahindra & Mahindra Financial Services, Glaxosmithkline Pharmaceuticals, Jindal Stainless, Sun Pharma Advanced Research Company, Garden Reach Shipbuilders & Engineers, JTL Infra, Kirloskar Ferrous Industries Kabra Extrusiontechnik, KPIT Technologies, Navin Fluorine International, Phillips Carbon Black, Orient Bell, Rane Brake Lining, Ramkrishna Forgings, Tata Motors Ltd – DVR, Udaipur Cement Works, Vakrangee, Visaka Industries, VLS Finance, Zensar Technologies
JSW Steel: To make strategic investment of Rs 750 crore in JSW Paints in 3-4 tranches between FY22-FY25. In the first tranche of the strategic investment, the company will acquire 1.62 crore shares of JSW Paints for Rs 299 crore. The company will hold 6.88% in JSW Paints on fully diluted basis by Q2.
IndusInd Bank: Board approved raising up to Rs 30,000 crore capital. Bank will raise funds by issuing debt and equity securities through routes including QIP, American Depository Receipts, Global Depositor Receipts. Bank to seek shareholder approval in upcoming annual general meeting.
Indian Bank: Declared Lanco Infratech and Basundhara Green Power as fraud accounts. The accounts have been reported to the RBI. Lanco Infratech’s account--which has an outstanding loan of Rs 577.47 crore--was reported for diversion of funds. Basundhara Green Power’s account—which has an outstanding loan of Rs 11.64 crore--was reported for defective title deed or imperfect mortgage.
NTPC: The 2nd Unit of 800 MW capacity of Darlipali Super Thermal Power Project has completed trial operation and was included in the installed capacity of NTPC. With this, the total installed capacity of NTPC and NTPC group has become 53,450 MW and 66,875 MW respectively.
Navkar Corporation: Board approved the setting up of Inland Container Depot and Private Freight Terminals near Mundra or Pipavav or Northern Maharashtra subject to receipt of requisite approvals and clearances. The cost of the project is estimated up to Rs 300 crore and it will be completed approximately within 36 months from date of commencement of development.
Suzlon Energy: Approved allotment of 1.21 crore equity shares on conversion of 1,304 US$ denominated Convertible Bonds due 2032. The bonds were of face value of $320 each, which after capitalising interest at 2.75% per annum accrued on half yearly basis, aggregated to $423,017.
United Spirits: Approved sale of all equity shares and compulsory convertible preferential shares held by the company in Hip Bar to Prasanna Natarajan, promoter of HipBar, for Rs 52 lakh. The sale is expected to be completed before October 31.
Nectar Lifesciences: To sell non-core and unproductive assets. Proceeds from sales to be used for repayment of bank loans. The office building at Mumbai falls under the non-core assets. Land and building situated at Narbada Industries in Jammu, Empty Hard Gelatin Capsules Unit in Himachal Pradesh and land and building at Basauli in Punjab have been categorised as unproductive assets.
Tata Steel BSL: Appointed Pratik Chatterjee as the Chief Financial Officer effective July 23.
BEML: Approved a plan under which it will transfer parcels of land and buildings to BEML Land Assets. The plan involves demerger of non-core assets from BEML and vesting them in BEML Land Assets. It will also involve reduction and cancellation of share capital of BEML Land Assets. The arrangement is subject to requisite statutory and regulatory approvals and sanction by the respective shareholders.
Engineers India: Has designated Vartika Shukla, Director (Technical) holding additional charge of Director (Finance), EIL as Chief Financial Officer of the company.
Earnings: Larsen & Toubro, Axis Bank, Tata Motors, Kotak Mahindra Bank, SBI Life Insurance Company, Vedanta, Alembic Pharmaceuticals, Apollo Pipes, Coromandel International, DLF, Mahindra & Mahindra Financial Services, Glaxosmithkline Pharmaceuticals, Jindal Stainless, Sun Pharma Advanced Research Company, Garden Reach Shipbuilders & Engineers, JTL Infra, Kirloskar Ferrous Industries Kabra Extrusiontechnik, KPIT Technologies, Navin Fluorine International, Phillips Carbon Black, Orient Bell, Rane Brake Lining, Ramkrishna Forgings, Tata Motors Ltd – DVR, Udaipur Cement Works, Vakrangee, Visaka Industries, VLS Finance, Zensar Technologies
Who’s Meeting Whom
CRISIL: To meet Yes Securities on July 27, Briarwood Capital, NY on July 28 and Principal Asset Management on July 30.
CRISIL: To meet Yes Securities on July 27, Briarwood Capital, NY on July 28 and Principal Asset Management on July 30.
Trading Tweaks
Ex-Date AGM: Canara Bank
Ex-Date Final Dividend: NOCIL, Paushak
Ex-Date Bonus Issue: Tide Water Oil Company (India)
Ex-Stock Split: Tide Water Oil Company (India), Evexia Lifecare
Record Date Interim Dividend: Angel Broking
Price Band Revised From 20% To 10%: JSW Energy
Move Out Of Short-Term ASM Framework: Edelweiss Financial Services, Rane Brake Lining, Dolat Investments, Vishal Fabrics
Move Into ASM Framework: Vishal Fabrics, Mastek, Vimta Labs, JSW Energy, Sangam (India)
Move Out Of ASM Framework: Matrimony.Com, Paisalo Digital, NCC, SREI Infrastructure Finance, Ramky Infrastructure, Globus Spirits, Shree Renuka Sugars, Tata Teleservices (Maharashtra), Nagarjuna Fertilizers and Chemicals, Sastasundar Ventures
Ex-Date AGM: Canara Bank
Ex-Date Final Dividend: NOCIL, Paushak
Ex-Date Bonus Issue: Tide Water Oil Company (India)
Ex-Stock Split: Tide Water Oil Company (India), Evexia Lifecare
Record Date Interim Dividend: Angel Broking
Price Band Revised From 20% To 10%: JSW Energy
Move Out Of Short-Term ASM Framework: Edelweiss Financial Services, Rane Brake Lining, Dolat Investments, Vishal Fabrics
Move Into ASM Framework: Vishal Fabrics, Mastek, Vimta Labs, JSW Energy, Sangam (India)
Move Out Of ASM Framework: Matrimony.Com, Paisalo Digital, NCC, SREI Infrastructure Finance, Ramky Infrastructure, Globus Spirits, Shree Renuka Sugars, Tata Teleservices (Maharashtra), Nagarjuna Fertilizers and Chemicals, Sastasundar Ventures
Money Market Update
The rupee ended at 74.40 against the U.S. dollar on Friday as compared to Thursday's closing of 74.46.
The rupee ended at 74.40 against the U.S. dollar on Friday as compared to Thursday's closing of 74.46.
*Result Calendar of Major Companies: Updated List*
*26.07.2021: APLLTD, AXISBANK, COROMANDEL, DLF, KOTAKBANK, LARSEN, M&MFIN, NAVINFLUOR, SBILIFE, TATAMOTORS, VEDANTA*
*27.07.2021: CANBK, DALMIABH, DRREDDY, GRANULES, INDUSINDBK, INDIGO, RAMCOCEM, TORNTPHARM*
*28.07.2021: COFORGE, MGL, MARUTI, NESTLEIND, PFIZER, SRF, UBL*
*29.07.2021: AJANTPHARM, COLGATE, CONCOR, DEEPAKNI, LICHSG, PVR, TECHM, TVSMOTORS*
*30.07.2021: BANDHANBNK, BRITANNIA, BHEL, CHOLAFIN, EXIDE, IOCL, LALPATHLAB, SRTRANSFIN, MARICO, SUNPHARMA, UPL*
*31.07.2021: NTPC*
*02.08.2021: HDFC*
*03.08.2021: DABUR, GODREJPROP, TATACONS*
*04.08.2021: BOSCH, GODREJCP, HINDPETRO, TITAN*
*05.08.2021: ESCORTS*
*06.08.2021: BEL, BERGEPAINT, HINDALCO, TATAPOWER*
*10.08.2021: MOTHERSON, TRENT*
*11.08.2021: PIDILITIND*
*12.08.2021: ASHOKLEY, GNFC, HEROMOTOCO*
*14.08.2021: AMARAJABAT*
*26.07.2021: APLLTD, AXISBANK, COROMANDEL, DLF, KOTAKBANK, LARSEN, M&MFIN, NAVINFLUOR, SBILIFE, TATAMOTORS, VEDANTA*
*27.07.2021: CANBK, DALMIABH, DRREDDY, GRANULES, INDUSINDBK, INDIGO, RAMCOCEM, TORNTPHARM*
*28.07.2021: COFORGE, MGL, MARUTI, NESTLEIND, PFIZER, SRF, UBL*
*29.07.2021: AJANTPHARM, COLGATE, CONCOR, DEEPAKNI, LICHSG, PVR, TECHM, TVSMOTORS*
*30.07.2021: BANDHANBNK, BRITANNIA, BHEL, CHOLAFIN, EXIDE, IOCL, LALPATHLAB, SRTRANSFIN, MARICO, SUNPHARMA, UPL*
*31.07.2021: NTPC*
*02.08.2021: HDFC*
*03.08.2021: DABUR, GODREJPROP, TATACONS*
*04.08.2021: BOSCH, GODREJCP, HINDPETRO, TITAN*
*05.08.2021: ESCORTS*
*06.08.2021: BEL, BERGEPAINT, HINDALCO, TATAPOWER*
*10.08.2021: MOTHERSON, TRENT*
*11.08.2021: PIDILITIND*
*12.08.2021: ASHOKLEY, GNFC, HEROMOTOCO*
*14.08.2021: AMARAJABAT*
*Polycab – Q1FY22 Concall Update – Nirmal Bang Sec.*
*Outlook – Long Term Positive*
*_Second half is likely to be better than the first half of the year_*
The stock is trading at x FY22E consensus earnings
• Company’s performance has been encouraging, despite challenges posed by lockdown in many states
• On the growth side, construction activity has continued for better part of the quarter, albeit at a slower pace.
• On the flip side, raw material volatility continued. *The inflation in the input basket was in low-teens during the quarter and the blended price hike was in high single to just double-digit*. In mid-June, sharp correction in copper prices caused further complications to an improving demand scenario as dealers refrained from stocking in anticipation of price cuts. Accordingly, inventory levels in distribution channel dipped significantly with secondary sales tracking ahead of primary sales. The management believes this is a temporary sentimental setback and primarily will eventually catch up with underlying demand.
• *July seems to be panning out better than previous months. Retail outlets across the market are largely open at the moment and activity is picking up.*
• Cost saving initiatives were more than offset by unfavorable operating leverage and input cost volatility, this limited EBITDA margin to 7.3%. However, *management is confident of maintaining normal level of margins i.e. 11-13% EBITDA on full year basis*
• Polycab acquired Silvan Innovation Labs, last month. It is a Bangalore-based technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
• Capex – Rs 300 cr for FY22
• *On 5 yr (by FY26) basis the company is targeting Rs20,000 cr revenues*
• Receivable days in current quarter were lower due to lower sales and inventory days were higher. The management expects both these numbers to normalise going forward.
• *Under project Udaan, the company has identified cost saving options to the tune of ~280 bps which would be reflected in coming 1-2 yrs*
• Generally, Q4 contributes around 28-30% of yearly sales whereas Q1 contributes 22%
*_Wires and Cables_*
• Wires and Cables revenue doubled on YoY basis despite challenges posed by the second wave
• Profitability was impacted by raw material inflation and adverse operating leverage
*_FMEG_*
• FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states.
• Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum. Premiumization trend continued.
• Adverse operating leverage affected profitability – due to higher fixed cost on two accounts (a) higher increments given to employees after 2 yrs (b) higher A&P spends
• *Maintained earlier guidance of high single digit EBIT margins in 2 yrs*
*Outlook – Long Term Positive*
*_Second half is likely to be better than the first half of the year_*
The stock is trading at x FY22E consensus earnings
• Company’s performance has been encouraging, despite challenges posed by lockdown in many states
• On the growth side, construction activity has continued for better part of the quarter, albeit at a slower pace.
• On the flip side, raw material volatility continued. *The inflation in the input basket was in low-teens during the quarter and the blended price hike was in high single to just double-digit*. In mid-June, sharp correction in copper prices caused further complications to an improving demand scenario as dealers refrained from stocking in anticipation of price cuts. Accordingly, inventory levels in distribution channel dipped significantly with secondary sales tracking ahead of primary sales. The management believes this is a temporary sentimental setback and primarily will eventually catch up with underlying demand.
• *July seems to be panning out better than previous months. Retail outlets across the market are largely open at the moment and activity is picking up.*
• Cost saving initiatives were more than offset by unfavorable operating leverage and input cost volatility, this limited EBITDA margin to 7.3%. However, *management is confident of maintaining normal level of margins i.e. 11-13% EBITDA on full year basis*
• Polycab acquired Silvan Innovation Labs, last month. It is a Bangalore-based technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
• Capex – Rs 300 cr for FY22
• *On 5 yr (by FY26) basis the company is targeting Rs20,000 cr revenues*
• Receivable days in current quarter were lower due to lower sales and inventory days were higher. The management expects both these numbers to normalise going forward.
• *Under project Udaan, the company has identified cost saving options to the tune of ~280 bps which would be reflected in coming 1-2 yrs*
• Generally, Q4 contributes around 28-30% of yearly sales whereas Q1 contributes 22%
*_Wires and Cables_*
• Wires and Cables revenue doubled on YoY basis despite challenges posed by the second wave
• Profitability was impacted by raw material inflation and adverse operating leverage
*_FMEG_*
• FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states.
• Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum. Premiumization trend continued.
• Adverse operating leverage affected profitability – due to higher fixed cost on two accounts (a) higher increments given to employees after 2 yrs (b) higher A&P spends
• *Maintained earlier guidance of high single digit EBIT margins in 2 yrs*
*New IPO Alert*
EXXARO TILES
Expected in first week of August 2021
Issue size 160 crores
Price band 118-120 (Approx)
*As IPO size is below Rs. 250 crores, this IPO will list in T2T segment*
Means Intra-day trading will not allowed and circuit filter will 5% after pre-open
EXXARO TILES
Expected in first week of August 2021
Issue size 160 crores
Price band 118-120 (Approx)
*As IPO size is below Rs. 250 crores, this IPO will list in T2T segment*
Means Intra-day trading will not allowed and circuit filter will 5% after pre-open
MCX: Q1 CONS NET PROFIT 398M RUPEES VS 564M (YOY) | 384M (QOQ) || Q1 REVENUE 876M RUPEES VS 730M (YOY)
*SGX Nifty -80 pts (15765) from last trade 15845 ,*
Nikkei +347 pts ,
Hangseng -496 pts ,
Now @6.57am .
Dow +238.20 pts ,Nsdq +152.39 pts, S&P
+44.31 pts, Bovespa -1093 pts , Ftse +59 pts , Dax +154 pts , Cac +87 pts , Crude @ $72.26 brl (+0.19), Brent @ $74.29 brl (+0.19) , Gold @ 1800.20 (-1.80), Silver @ $25.23 (+0.00), Euro @ $1.1769, JPY @ $110.55, INR @ 74.425
*Today's Corporate Action*
*26th Jul Ex Date*
EVEXIA
Stock Split From Rs.10/- to Rs.2/-
NITTAGELA
Dividend - Rs. - 3.0000
NOCIL
Final Dividend - Rs. - 2.0000
PAUSHAKLTD
Final Dividend - Rs. - 6.0000
TIDEWATER
Stock Split From Rs.5/- to Rs.2/-
TIDEWATER
Bonus issue 1:1
*Today's Key Results/Board Meetings*
*26-Jul-21*
APLLTD
General;Quarterly Results
APOLLOPIPES
Quarterly Results
AXISBANK
Quarterly Results
BOMBWIR
Quarterly Results
CHEMOPH
A.G.M.;Quarterly Results
COROMANDEL
Quarterly Results
DLF
Dividend;Quarterly Results
DUNCANENG
Quarterly Results
GLAXO
Quarterly Results
GRSE
Audited Results
JSL
Quarterly Results
JTLINFRA
Quarterly Results
KABRAEXTRU
Quarterly Results
KIRLFER
Quarterly Results
KOTAKBANK
Quarterly Results
KPITTECH
Quarterly Results
KRISHNA
General
KZLFIN
Quarterly Results
LT
Quarterly Results
M&MFIN
Quarterly Results
MARVINY
Audited Results
MEDINOV
Quarterly Results
MEWATZI
Quarterly Results
NAVINFLUOR
Quarterly Results
ORIENTBELL
Quarterly Results
PHILIPCARB
Quarterly Results
PONDYOXIDE
Quarterly Results
RBL
Quarterly Results
RIDHISYN
Right Issue of Equity Shares
RKFORGE
Interim Dividend;Quarterly Results
SAGARSOFT
Preferential Issue of shares;Quarterly Results
SANJIVIN
Quarterly Results
SBILIFE
Quarterly Results
SCANSTL
Quarterly Results
SEIL
Quarterly Results
SPARC
Quarterly Results
STARLENT
General
TATAMOTORS
Quarterly Results
TATAMTRDVR
Audited Results
TRANOCE
Quarterly Results
UDAICEMENT
Quarterly Results
VAKRANGEE
Final Dividend;Quarterly Results
VEDL
Quarterly Results
VISAKAIND
Audited Results;Quarterly Results
VISHAL
Interim Dividend;General;Quarterly Results
VLSFINANCE
Quarterly Results
ZENSARTECH
Quarterly Results
*Stock under F&O ban on NSE*
*26-Jul-21*
1CADILAHC
2CANBK
3IDEA
4NATIONALUM
5SUNTV
Nikkei +347 pts ,
Hangseng -496 pts ,
Now @6.57am .
Dow +238.20 pts ,Nsdq +152.39 pts, S&P
+44.31 pts, Bovespa -1093 pts , Ftse +59 pts , Dax +154 pts , Cac +87 pts , Crude @ $72.26 brl (+0.19), Brent @ $74.29 brl (+0.19) , Gold @ 1800.20 (-1.80), Silver @ $25.23 (+0.00), Euro @ $1.1769, JPY @ $110.55, INR @ 74.425
*Today's Corporate Action*
*26th Jul Ex Date*
EVEXIA
Stock Split From Rs.10/- to Rs.2/-
NITTAGELA
Dividend - Rs. - 3.0000
NOCIL
Final Dividend - Rs. - 2.0000
PAUSHAKLTD
Final Dividend - Rs. - 6.0000
TIDEWATER
Stock Split From Rs.5/- to Rs.2/-
TIDEWATER
Bonus issue 1:1
*Today's Key Results/Board Meetings*
*26-Jul-21*
APLLTD
General;Quarterly Results
APOLLOPIPES
Quarterly Results
AXISBANK
Quarterly Results
BOMBWIR
Quarterly Results
CHEMOPH
A.G.M.;Quarterly Results
COROMANDEL
Quarterly Results
DLF
Dividend;Quarterly Results
DUNCANENG
Quarterly Results
GLAXO
Quarterly Results
GRSE
Audited Results
JSL
Quarterly Results
JTLINFRA
Quarterly Results
KABRAEXTRU
Quarterly Results
KIRLFER
Quarterly Results
KOTAKBANK
Quarterly Results
KPITTECH
Quarterly Results
KRISHNA
General
KZLFIN
Quarterly Results
LT
Quarterly Results
M&MFIN
Quarterly Results
MARVINY
Audited Results
MEDINOV
Quarterly Results
MEWATZI
Quarterly Results
NAVINFLUOR
Quarterly Results
ORIENTBELL
Quarterly Results
PHILIPCARB
Quarterly Results
PONDYOXIDE
Quarterly Results
RBL
Quarterly Results
RIDHISYN
Right Issue of Equity Shares
RKFORGE
Interim Dividend;Quarterly Results
SAGARSOFT
Preferential Issue of shares;Quarterly Results
SANJIVIN
Quarterly Results
SBILIFE
Quarterly Results
SCANSTL
Quarterly Results
SEIL
Quarterly Results
SPARC
Quarterly Results
STARLENT
General
TATAMOTORS
Quarterly Results
TATAMTRDVR
Audited Results
TRANOCE
Quarterly Results
UDAICEMENT
Quarterly Results
VAKRANGEE
Final Dividend;Quarterly Results
VEDL
Quarterly Results
VISAKAIND
Audited Results;Quarterly Results
VISHAL
Interim Dividend;General;Quarterly Results
VLSFINANCE
Quarterly Results
ZENSARTECH
Quarterly Results
*Stock under F&O ban on NSE*
*26-Jul-21*
1CADILAHC
2CANBK
3IDEA
4NATIONALUM
5SUNTV