*India Daybook – Stocks in News*


*SRF Q2:* Profit at Rs 315.0 crore versus Rs 301.0 crore, revenue seen at Rs 2101.0 crore versus Rs 1738.0 crore YoY (positive)

*Hind Petro:* Profit at Rs 2976.0 crore versus Rs 762.0 crore, revenue seen at Rs 61400.0 crore versus Rs 62500 crore YoY (Positive)

*Pidilite:* Profit at Rs 356.0 crore versus poll of Rs 275.0 crore, revenue seen at Rs 1880.0 crore versus poll of Rs 1690.0 crore YoY (Positive)

*Apollo Tyre:* Profit at Rs 200.0 crore versus poll of Rs 109.0 crore, revenue seen at Rs 4282.0 crore versus poll of Rs 4116.0 crore YoY (Positive)

*JK Lakshmi*: Profit at Rs 89.5 crore against Rs 48.7 crore; revenue rose to Rs 1132.0 crore from Rs 1012.0 crore YoY (Positive)

*Kalpataru Power:* Profit at Rs 139.0 crore against Rs 137.0 crore; revenue seen to Rs 3032.0 crore from Rs 33216.0 crore YoY (Positive)

*JSL Stainless:* Profit at Rs 172.0 crore against Rs 105.0 crore; revenue seen to Rs 2328.0 crore from Rs 2303.0 crore YoY (Positive)

*Nilkamal:* Profit at Rs 49.5 crore against Rs 49.0 crore; revenue seen to Rs 543.0 crore from Rs 576.0 crore YoY (Positive)

*Godrej Agro:* Profit at Rs 132.8 crore against Rs 81.1 crore; revenue seen to Rs 1710.0 crore from Rs 1846.0 crore YoY (Positive)

*Thermax:* Profit at Rs 31.2 crore against Rs 16.0 crore; revenue seen to Rs 1141.0 crore from Rs 1806.0 crore YoY (Positive)

*NELCO:* Profit at Rs 222.0 crore against Rs 153.0 crore YoY (Positive)

Maharashtra Government allows cinema halls, theatres, *multiplexes* to open with 50% (Positive)

*HPCL announces Rs 2,500 crore buyback at Rs 250 per share. (Positive)

*SBI Card* partners with Paytm to launch Paytm SBI Card (Positive)

*United Spirits:* Net Profit at Rs 128.0 crore versus poll of Rs 122.0 crore, Revenues at Rs 2145.0 crore versus poll of Rs 1890.0 crore, EBITDA at Rs 269.6 crore versus poll of Rs 256.0 crore. (Neutral)

*BASF Q2*: Consolidated profit at Rs 411.0 crore in Q2FY21 against Rs 2.0 crore; revenue rose to Rs 2396.0 crore from Rs 2074.0 crore YoY. (Neutral)

*Jubilant Industries Q2*: Consolidated profit at Rs 208.0 crore in Q2FY21 against Rs 273.0 crore; revenue rose to Rs 2326.0 crore from Rs 2232.0 crore YoY. (Neutral)

*Lupin:* Profit at Rs 211.0 crore against loss of Rs 127.0 crore; revenue seen to Rs 3835.0 crore from Rs 4359.0 crore YoY (Positive)

*EIH Q2:* Loss at Rs 134.0 crore versus profit of Rs 26.0 crore, revenue seen at Rs 72.0 crore versus Rs 335.0 crore YoY. (Neutral)

*Indian Hotels Q2:* Loss at Rs 252.0 crore versus profit of Rs 69.0 crore, revenue seen at Rs 256.0 crore versus Rs 1007.0 crore YoY (Neutral)

*TT LTD Q2:* Loss at Rs 2.6 crore versus loss of Rs 2.6 crore, revenue seen at Rs 98.9 crore versus Rs 84.3 crore YoY (Neutral)

*KEC Int:* Profit at Rs 143.0 crore versus Rs 139.0 crore YoY (Neutral)

*Adani green:* Profit at Rs 17.6 crore versus Rs 102.3 crore, revenue seen at Rs 529.0 crore versus Rs 460.0 crore YoY (Neutral)

*Dhanlakshmi Bank:* Profit at Rs14.0 crore versus Rs 22.1 crore, revenue seen at Rs 244.0 crore versus Rs 253.0 crore YoY (Neutral)

*EIH Associates:* Loss at Rs 10.7 crore versus profit Rs 5.1 crore, revenue seen at Rs 13.3 crore versus Rs 45.6 crore YoY (Neutral)

*Tata Motors:* S&P has revised the company’s outlook to Negative. (Neutral)

*Happiest Minds:* Profit declined QoQ by 32% to Rs 34.08 crore for the quarter ended Q2FY21. (Negative) https://t.me/marketswizard

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*Jubilant Life – Q2FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
*With the strong demand recovery and new business sign-ups, the strong performance in Pharma, LSI and DDDS businesses is expected to continue in the H2’FY21*
The stock is trading at 10x FY22E consensus earnings


• “Q2’FY21 has witnessed a substantial improvement over the previous quarter despite continued adverse impact of the COVID-19 pandemic in at least the first half of Q2
• *During H1’FY21, the Company reduced net debt on a constant currency basis by Rs 193 Cr* post Rs 515 cr reduction in FY20. *The company remained focused on further deleveraging*
• Reorganisation of the company is likely to be complete by Jan’21. It got delayed to Covid
• Expect incremental Rs 500 cr revenues from Covid related drugs in next 18-24 months
• Pharma – grew by 4%yoy
o performance improved substantially QoQ led by growth in CMO and Generics.
o CDMO business Entered into an additional deal in Q2, apart four separate clinical and commercial supply agreements for COVID-19 treatment and vaccine candidates in Q1. Remdesivir of Gilead approved by the US FDA has started to contribute to CMO revenue growth
o In API, revenues picked up with resumption of operations at Nanjangud facility. *Strong order book to allow for growth over the coming quarters*
o Radiopharma continued to have a temporary negative impact due to COVID-19 related restrictions on hospital visitations however the business is still at about 90% of pre-COVID level
o Ruby-Fill commercial launch in Europe planned in FY21
o Allergy business volumes had normalized to 100% of pre-COVID levels during Q2’FY21. Efforts on growing volumes in non-US markets
o Generics revenue grew by 40% yoy led by strong performance in key products in the US market and by launch of remdesivir in various countries including India
o *With the gradual opening of the US healthcare markets, demand conditions have started improving and the company is continuing to see improvement in volumes*
o *The company continue to see new business opportunities in CDMO, Generics and Specialty Pharma segments*
o Jubilant has entered into a strategic partnership with SOFIE Biosciences, an innovation leader in molecular theranostics. Jubilant, with 25% equity holding, will be the largest shareholder of SOFIE. SOFIE’s business lines are highly synergistic to Jubilant Radiopharma. Jubilant has invested $25mn for 25% stake
• LSI – grew by 4%yoy
o performance continued to be strong on both qoq and yoy basis
o The segment reported higher profitability both on yoy and qoq. Strong improvement in profitability is driven by improvement in prices of Specialty Intermediates, Nutritional Products and higher demand of Life sciences chemicals
o Specialty Intermediates - Pharmaceutical segment witnessed significant improvement in demand though Agrochemical segment witnessed lower demand driven by extreme weather conditions in certain geographies like Cold
o Nutrition - Revenue increased by 11% YoY led by better prices of Vitamin B3. After a strong start to the quarter, customers started to destock especially in geographies where lockdowns began to ease, partly levelling out the strong demand acceleration in Q1. *Expect volumes to improve further while pricing scenario is likely to be firm*
o Life Science Chemicals - witnessed strong demand of all the products including Acetic Anhydride in domestic and export market driven by good demand in Pharma segment
o *Management expects the segment to report double digit growth with improved margins in FY21*
• DDDS
o segment witnessed strong year-on-year growth in revenues led by healthy demand from customers https://t.me/marketswizard

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*NEWS DIGEST to START the Day (05 NOV 2020, Thursday) 5 Minutes Read; updated at 0633HRS IST*

*World: 48,411,598; Death 1,230,100 (2.54%) Active 12,524,677 (26%) Recovery 34,656,821 (72%)*

_India: 8,363,412; Death 124,354 (1.49%) Active 528,428 (6%) Recovery 7,710,630 (92%)_

Astrophysicists have detected a burst of cosmic radio waves within our solar system for the first time and identified its source

*DRDO’s Long Range Pinaka Rocket System Test-Fired Off Odisha Coast; replace Pinaka Mk-I rockets*

_Race to White House: Biden 253 Trump 214 on road to 270; Senate - Democrats 47, Republicans 48; House - Democrats 204, Republicans 188_

Legal experts says US Top Court May Not Have Final Say In Presidential Election, Despite Trump Threat

*Biden on Cusp of 270 After Bagging Wisconsin and Michigan, Race Rests on States Where He Leads*

_Ilhan Omar, AOC among 4 Women of Colour to Win in US Elections Despite facing frequent vilification; All 4 Democratic Indian-American lawmakers re-elected to House of Representatives_

US Election Exit Polls Showed the Vote Came Down to the Pandemic Versus the Economy; Public Health May Be US Election Loser As Coronavirus Surges

*India Hits Out at Pakistan for its 'Collusion in Fostering Radicalism, Rabble-rousing'*

_Kerala clocks highest cases in day, Delhi 3rd wave; serosurvey shows nearly 2Cr infected in Karnataka_

Toxic Haze Shrouds Delhi; Calm Winds, Low Temperature To Be Blamed; COVID cases rises fast in NCR

*COVID-19: UK vaccine chief hopes for positive Oxford and Pfizer data in early Dec 2020*

_University of Washington Scientists develop "ultrapotent" COVID vaccine candidate that produces "extremely high levels" of protective antibodies in animal models_

Across Europe, efforts to halt a second wave of coronavirus cases with piecemeal measures are being replaced by far stricter rules

*SC: Warring spouses must disclose income, assets from date of filing application in matrimonial cases*

_Govt assurances fail to convince J&K residents as law makes conversion of farmland for non-farming activity easy_

12 Killed, 9 Hurt as Chemical Godown Collapses After Blast in Ahmedabad; PM, Prez Offer Condolences

*Airlines Allowed Up To 60% Pre-Covid Domestic Flights Till February 24 Next Year: Centre*

_20 Deaths In 3 Days (4 different localities) In Haryana's Sonipat; Cops Suspect Illicit Liquor As Cause_

No Rail Tracks Blocked, Will Vacate Platforms, Say Punjab Farmer Outfits Protesting Against Agri Laws

*SC Stays US Court's $1.2 Billion Pay Order Against ISRO's Antrix in Satellite Deal Case*

_Income Tax Refunds Rs 1.29 Lakh Crore Issued to 39.49 Lakh Taxpayers (Individual & Corporate Tax)_

Suspecting fraud through Shell Companies, IT Dept act tough by blocking input tax credit of several Cos

*SC reserves order on Skoda's plea challenging FIR in UP over "cheat device" in diesel car*

_Icra: Commercial vehicle volumes to contract 25-28% in FY21, outlook remains negative: Thar bookings at 20K with waiting period of 5-7 months_

CCEA approves Rs 1,810-crore investment for 210 MW hydropower project in Himachal Pradesh

*More companies to give salary hikes in 2021 as India Inc bets big on recovery reveals Aon Salary Survey*

_North Korea bans smoking in some public places to provide citizens with "hygienic living environments_

Canada Reports Rare Strain of Swine Flu Found in a Human, Authorities Start Contact Tracing

Today’s Word - *Keb* - a ewe that has miscarried or rejected a lamb https://t.me/marketswizard

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Jubilant Life Sciences Q2 Results: Net profit declines 10% to Rs 224 crore
https://economictimes.indiatimes.com/markets/stocks/earnings/jubilant-life-sciences-q2-results-net-profit-declines-10-to-rs-224-crore/articleshow/79043204.cms

HPCL buyback is not through *TENDER ROUTE* it is through *OPEN MARKET*

Means co will buy 10 crore shares at not more than rs 250/- through stock exchange.

Hence promoter (ONGC) will not participate and their stake will increase from 51.1113% to 54.701% (increase by 3.589723%)

Public shareholding will reduce from 48.89% to 45.30% https://t.me/marketswizard

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05 NOV, 2020

BAN SCRIP-

NIL https://t.me/marketswizard

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RBI Exploring Investment Options For Reserves: Report
 
The official said that the RBI was studying the possibility of investing in AAA-rated corporate dollar bonds, which offer better returns than sovereign credit. https://t.me/marketswizard

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_*Brokerage Radar*_

*CLSA On State Bank of India*
Buy rating maintained, Price target raised to Rs 330 from Rs 310
Growth in NII, PPoP, commentary on asset quality was reassuring
Reduce estimated credit costs to 200 bps from FY21 from 230 bps earlier
Reduction in credit costs drives 60% earnings estimate increase for FY21
Expect RoE of 7.6%, 9.7% and 11.9% in FY21, FY22 and FY23 respectively
Valuations should start to mean-revert as uncertainty around asset quality decreases

*Morgan Stanley On State Bank of India*
Upgrade to overweight from equalweight, Price target raised to Rs 280 from Rs 215
Risk-reward balance is now attractive
Macro tail risk has diminished and asset quality trends have held up well
Well positioned on liquidity
Expect ~9% RoE in FY22e and 13% in FY23e
A sharp rise in Covid-19 cases is a key risk to the thesis

*Nomura on SBI*
Maintain Buy, TP raised to Rs 275
In-line qtr; NIM surprise drives earning upgrade
Re-rating imminent
Higher Share Of PSUs Aiding Better Asset Quality
Agri/SME Slippages Of Rs 9000 Cr/Rs 5100 Cr Was A -ve Surprise

Goldman maintains Buy call on SBI, target price at at Rs 301/sh.

UBS maintains Buy call on SBI, raise target at Rs 275/sh.

Macquarie maintains Outperform call on SBI, raise target at Rs 308/sh.

JP Morgan maintains Overweight call on SBI, target price at Rs 270/sh.

*CLSA On HPCL*
Upgrade from Sell to Buy, Price target raised to Rs 225 from Rs 180
Open market buyback of more than 18% of current free float is good news
A miss on core Ebitda but inventory gains drive profit beat
Buyback will give the right bang for buck
Raise FY21 EPS estimates by 62% and FY22 EPS estimates by 1%
High marketing exposure puts it at an advantage versus IOC and BPCL

*MS on HPCL*
Outperformed peers on margin quality & volume
recovery, & announced a buyback at 34% premium to CMP
Demand recovery, return of capital & steady upside in
margins are key triggers ahead
Maintain OW, TP Rs 246

JP Morgan maintains Overweight call on Hind Petro, larger beat expectations

*Credit Suisse on Steel:*!In Nov 20 prices hiked for 5th straight month.
Picks include Tata Steel and JSPL

*MS maintains Overweight Indigo:*
Domestic airline passengers reach 2.06 lakh on November 1, down 52% YoY.

JP Morgan maintains Buy call on USL, maintain target at Rs 580/sh

CLSA has downgraded Godrej Properties, cut target price at Rs 950/sh https://t.me/marketswizard

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