Sixteen of the 19 sector sub-indices compiled by BSE Ltd. climbed, led by a gauge of telecom companies.
- Net income Rs 251 crore, +12% YoY, estimate Rs 233 crore
- Total costs Rs 992 crore, +6.6% y/y
- Raw material costs Rs 275 crore, -16% q/q
- Ebitda Rs 359 crore, +5.9% y/y, estimate Rs 326 crore
- Revenue Rs 1,280 crore, +5.8% YoY, estimate Rs 1,280 crore
- Dividend per share Rs 14
- International formulations grew 19% for FY21; U.S. Generics grew 9%
- Ex-US International Formulations grew 57%
- RD spend 12% of revenue or 6.7 billion rupees for the year
- India branded formulations business grew 5%
- API business grew 38% in the quarter and 35% for FY21
COMMENTARY AND CONTEXT
Shares of Sun TV Ltd., owner of Hyderabad franchise of Indian Premier League erased gains to fall as much as 2% after the T-20 cricket tournament was deferred following some players testing positive for Covid-19.
Stock Reaction
- Reliance Industries Ltd., which owns Mumbai Indians team, extends drop to as much as 2%, set for a third day of losses.
- India Cements Ltd., which owns team Chennai Super Kings that has won 3 IPL titles, swung between gains and losses. Down as much as 0.6% as of 2:40 p.m.
- United Spirits Ltd., the holder of Royal Challengers Bengaluru franchise, declined 0.6% but soon recouped the losses to trade little changed.
SBI Life Insurance rises as much as 4.9% to its highest since Feb. 1.
“Growth runway” afforded by parent SBI’s customer pool, of which the insurer has tapped less than 3%, and new bancassurance partnerships, according to Jefferies.
SBI Life will leverage partnerships with state-owned banks such as Indian Bank, Syndicate Bank, Uco Bank, Punjab & Sind Bank, analysts including Prakhar Sharma write in a note.
Jefferies raise price target by 3.6% to Rs 1,150; maintains buy
Market Insight
- Trading volume was more than six times the 20-day average for this time of day.
- Trading in the company's call options totalled 24,981 contracts, compared with the average of 5,684 over the past 20 days. Trading in the company's put options totalled 8,893 contracts, compared with the average of 2,110 over the same period.
Why India’s Retail Investors May Feel Left Out Amid Tech IPO Frenzy
Punjab National Bank rose 9.1%. Trading in the company's call options was triple the average. Trading volume was triple the average for this time of day.
- Trading volume was 178.5 million shares, triple the 20-day average of 61.3 million shares for this time of day.
- Trading in the company's call options totaled 15,105 contracts, compared with the average of 4,524 over the past 20 days. Trading in the company's put options totaled 2,909 contracts, compared with the average of 1,442 over the same period.
- Analysts have four buy, four hold, and 13 sell recommendations on the stock.
- The price target of 37.32 rupees represents a 0.9% decrease from the last price
Source: Bloomberg News
ICICI Bank Vs HDFC Bank: Every Lender Has Its Year
Reliance Retail’s profit could dwindle as the Covid resurgence led to lockdown measures and other operating limitations across Indian states. The oil-to-chemicals business may weaken as domestic demand drops.Horace Chan, Analyst, Bloomberg Intelligence
Magma Fincorp, an Indian financier for vehicles and homes, jumped by its daily limit after about 23.4 million shares changed hands in Mumbai, according to data compiled by Bloomberg.
- Among most traded Indian stocks by volume, value
- Trading volume >12x 3-month full-day average
- Shares surged as much as 5%, most intraday since April 30
- Buyers, sellers not immediately known
Tata Steel BSL Ltd. rose 19%. Trading volume was six times the average for this time of day.
- The stock was the best performer among its peers.
- Trading volume was 21.1 million shares, six times the 20-day average of 3.6 million shares for this time of day.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Stock advanced 515% in the past 52 weeks, compared with a 357% increase for the company's Bloomberg peers.
Stocks Favored by Rich Indians Poised to Defy Market Sell-Off
Indian sovereign bond investors will watch demand at a Rs 14,900 crore ($2 billion) sale of state debt. Rupee traders will watch whether forward premiums will ease after the sharp surge seen on Monday.
- USD/INR near-term forward premiums surged on Monday amid a glut of dollars in the banking system, with traders citing inflows related to PowerGrid InvIT IPO for which foreign funds may have sold dollars in spot and taken a contrary position in forwards
- The second, much deadlier wave of virus infections in India is likely to cause further rupee weakness until September, according to Bloomberg Economics’ forecasting model
- 10-year bond yields fell 3bps to 6%; yields dropped after the reported deals segment showed Rs 3100 crore of 10-year changed hands, leading traders to suspect RBI intervention
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