Shares of Mumbai-based company extended gains for the second consecutive trading session and rose as much as 10.6 percent to Rs 105.80.
The construction firm said it will sell stake in its road business to the Government of Singapore for Rs 4,400 crore, according its stock exchange filing. The company will transfer nine of its build–operate–transfer assets into a private Infrastructure Investment Trust in, which IRB will hold a 51 percent controlling stake.
Besides, the company announced its June quarter results.
Key Earnings Highlights (Q1, YoY)
- Revenue rose 15.3 percent to Rs 1,773 crore. (estimate Rs 1,844 crore)
- Net profit fell 17.4 percent to Rs 206.6 crore. (estimate Rs 211 crore)
- Ebitda rose 14.6 percent to Rs 855.3 crore. (estimate Rs 768 crore)
- Margin at 48.2 percent versus 48.5 percent.
- Finance cost jumped 46 percent to Rs 362.2 crore.
The trading volume was more than 50 times its 20-day average for this time of the day, Bloomberg data showed.
Pidilite Industries
- Stock rose as much as 3.3 percent to Rs 1,314.40
- Revenue up 10.0 percent to Rs 2016.81 crore
- Net Profit up 23 percent to Rs 292.89 crore
- Ebitda up 17 percent to Rs 443.73 crore
- Margin at 22.0 percent versus 20.8 percent
L&T Infotech
- Stock rose as much as 3.6 percent to Rs 1,594.40.
- Morgan Stanley Initiate coverage on the stock
- Initiated ‘Overweight’ with a price target of Rs 1,780.
- Expect core business growth to outpace that of most peers.
- L&T's purchase of Mindtree could suggest an opportunity to benefit from synergies.
- Valuation is attractive; preferred mid-cap pick.
Torrent Power
- Stock rose as much as 7.3 percent to Rs 304.80.
- High OI build up of 32 percent
Oil India
- Stock rose as much as 2.9 percent to Rs 155.45.
- This after Brent crude fell 1.24 percent intraday to 59.07 a barrel.
Shares of Titan pared losses and rose as much as 2.6 percent to Rs 1,063.60 after the company announced its quarterly results.
Key Earnings Highlights (Q1, YoY)
- Revenue up 14.4 percent to Rs 4,939 crore.
- Net profit up 6.2 percent to Rs 371 crore.
- Ebitda up 13.8 percent to Rs 564 crore.
- Margin at 11.4 percent versus 11.5 percent.
It is ideal for investors to spread across the buying or accumulation over the next three-to-four months as any material recovery in the economy could only happen from December quarter. The base effect will also start playing out positively in many sectors from December quarter, he said.
Kolte-Patil (Q1, YoY)
- Stock rose as much as 16.1 percent to Rs 242.30.
- Revenue up 50.0 percent to Rs 585.68 crore
- Net Profit up 206 percent to Rs 115.88 crore
- Ebitda up 44 percent to Rs 195.07 crore
- Margin at 33.3 percent versus 34.7 percent
Minda Industries (Q1, YoY)
- Stock rose as much as 3.3 percent to Rs 300.
- Revenue up 0.7 percent to Rs 1439.75 crore
- Net Profit down 24 percent to Rs 53.48 crore
- Ebitda up 6 percent to Rs 172.2 crore
- Margin at 12.0 percent versus 11.3 percent
Aditya Birla Fashion and Retail (Q1, YoY)
- Stock rose as much as 5.6 percent to Rs 198.50.
- Revenue up 7.9 percent to Rs 2,065.46 crore
- Net Profit up 285 percent to Rs 21.56 crore
- Ebitda up 176 percent to Rs 314.22 crore
- Margin at 15.2 percent versus 5.9 percent
Hawkins (Q1, YoY)
- Stock rose as much as 7.9 percent to Rs 2,980.
- Revenue up 17.7 percent to Rs 142.1 crore
- Net Profit up 28 percent to Rs 13.68 crore
- Ebitda up 32 percent to Rs 22.1 crore
- Margin at 15.6 percent versus 13.9 percent
Arvind (Q1, YoY)
- Stock fell as much as 6.1 percent to Rs 52.45.
- Revenue up 4.8 percent to Rs 1896.45 crore
- Net Profit down 61 percent to Rs 24.1 crore
- Ebitda down 23 percent to Rs 154.4 crore
- Margin at 8.1 percent versus 11.1 percent
Pidilite Industries (Q1, YoY)
- Stock rose as much as 3.3 percent to Rs 1,314.40
- Revenue up 10.0 percent to Rs 2016.81 crore
- Net Profit up 23 percent to Rs 292.89 crore
- Ebitda up 17 percent to Rs 443.73 crore
- Margin at 22.0 percent versus 20.8 percent
JSW Energy (Q1, YoY)
- Stock swung between gains and losses to trade 0.3 percent lower at Rs 67.05
- Revenue up 2.2 percent to Rs 2,412 crore.
- Net profit up 6.6 percent to Rs 244 crore
- Ebitda up 4.3 percent to Rs 809 crore
- Margin at 33.5 percent versus 32.9 percent
Indian equity benchmarks were trading at day’s high.
The S&P BSE Sensex rose over 300 points to trade above 37,000 as of 12:55 p.m. and the NSE Nifty 50 rose 0.86 percent to 10,954. The broader market represented by the NSE Nifty 500 rose 0.96 percent.
About 20 lakh shares of Indian Hotels changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
Indian equity benchmarks continued to trade higher.
The S&P BSE Sensex rose 0.45 percent or 170 points to 36,870 as of and the NSE Nifty 50 rose 0.45 percent to 10,912. The broader market represented by the NSE Nifty 50 rose 0.57 percent
In addition to India’s improved valuations relative to the rest of the region, the country has high real rates, a negative correlation with global bond yields and low sensitivity to the dollar and renminbi. Falling inflation opens ample policy space for rate cuts and EPS is proving more resilient than for the region as a whole.Credit Suisse
IndiGo Chairman M Damodaran said:
- Fear that IGE Group will push questionable decisions does no credit to Independent Directors
- To schedule board meeting of Audit Committee, the NRC and the board after the AGM
- RPT policy to be cleared at the board meeting following meeting of Audit Committee post AGM
- The NRC Meeting post AGM to select Woman Independent Director
The yield on the 10-year benchmark fell 4 basis points to 6.35 percent.
Traders will focus on the sale of Rs 14,500 crore of debt by the state governments.
The yields have declined 51 basis points in July as traders boosted bets for further RBI easing and government said it’s selling $10 billion of offshore bonds. The RBI will announce its rate decision on Wednesday and is widely expected to deliver its fourth straight quarter-point rate cut.
The crucial interim support for the Nifty is seen close to 10,730, which is expected to bring in a mild positive push, according to Geojit Financial Services.
The Index might extend fall towards 10,600 if it falls below 10,730, the homegrown research firm said in a report.
Berger Paints (Q1, YoY)
- Stock rose as much as 5.2 percent to Rs 351.65.
- Revenue rose 15.7 percent to Rs 1,716.5 crore. (estimate Rs 1,646.3 crore)
- Net profit jumped 32 percent to Rs 176.8 crore. (estimate Rs 150 crore)
- Ebitda was up 27.4 percent to Rs 305.1 crore. (estimate Rs 258 crore)
- Margin at 17.8 percent versus 16.1 percent.
Entertainment Network (Q1, YoY)
- Stock fell as much as 5.4 percent to Rs 387.90.
- Revenue rose 8.9 percent to Rs 132.4 crore. (estimate Rs 131.6 crore)
- Net profit fell 58.1 percent to Rs 3.9 crore. (estimate Rs 11 crore)
- Ebitda was up 17 percent to Rs 33.1 crore. (estimate Rs 30.9 crore)
- Margin at 25 percent versus 23.3 percent.
- Depreciation jumped 64 percent to Rs 25 crore, finance cost was up 5.4 times to Rs 4.9 crore.
- Production expenses rose 41 percent to Rs 28.8 crore.
Dilip Buildcon (Q1, YoY)
- Stock fell as much as 6.1 percent to Rs 367.
- Revenue fell 6.1 percent to Rs 2,288 crore. (estimate Rs 2,506 crore)
- Net profit was down 50.9 percent to Rs 125.2 crore. (estimate Rs 150 crore)
- Ebitda was down 4.7 percent to Rs 412.1 crore. (estimate Rs 448.5 crore)
- Margin at 18 percent versus 17.8 percent.
- Depreciation surged 39 percent, finance cost rose 31 percent.
Indian Hotels (Q1, YoY)
- Stock rose as much as 3.9 percent to Rs 140.65.
- Revenue rose 4.1 percent to Rs 1,020 crore.
- Net profit was down 62.7 percent to Rs 5.7 crore.
- Ebitda jumped 56.9 percent to Rs 173.5 crore.
- Margin at 17 percent versus 11.3 percent.
- Finance cost surged 81 percent to Rs 84.7 crore, depreciation rose 28 percent to Rs 100.4 crore.
KEI Industries (Q1, YoY)
- Stock rose as much as 4.2 percent to Rs 428.40.
- Revenue rose 22.3 percent to Rs 1,081.4 crore. (estimate Rs 1,052.2 crore)
- Net profit was up 42.3 percent to Rs 45.8 crore. (estimate Rs 40.5 crore)
- Ebitda was up 32.4 percent to Rs 114.1 crore. (estimate Rs 109.5 crore)
- Margin at 10.6 percent versus 9.8 percent.
Torrent Power (Q1, YoY)
- Stock rose as much as 7.3 percent to Rs 304.80.
- Revenue rose 5.9 percent to Rs 3,736.1 crore.
- Net profit was up 21.9 percent to Rs 275.3 crore.
- Ebitda rose 8.8 percent to Rs 833.7 crore.
- Margin at 22.3 percent versus 21.7 percent.
Mangalam Cement (Q1, YoY)
- Stock rose as much as 14.1 percent to Rs 254.
- Revenue rose 30.9 percent to Rs 333.2 crore.
- Net profit was at Rs 33.2 crore versus net loss of Rs 15.3 crore.
- Ebitda was up 14 times to Rs 68 crore.
- Margin at 20.41 percent versus 1.9 percent.
PNB Gilts (Q1, YoY)
- Stock rose as much as 4.6 percent to Rs 39.45.
- Revenue jumped 93.7 percent to Rs 193.5 crore.
- Net profit stood at Rs 45.2 crore versus net loss of Rs 44.2 crore.
Nifty’s 11,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract which is set to expire on Thursday fell 36.62 percent to Rs 50.55. Over 5.83 lakh shares were added to the open interest which stood at over 28.17 lakh shares.
Indian equity benchmarks traded higher after a shaky start.
The S&P BSE Sensex rose 130 points or 0.35 percent to 36,824 as of 10 a.m. and the NSE Nifty 50 rose 0.38 percent to trade above 10,900.
Sterling & Wilson Solar IPO: Here’s All You Need To Know
Shares of the budget carrier fell as much as 2.6 percent to Rs 1,452.
The company’s co-founder Rakesh Gangwal, will not vote to change the company’s articles of association at an annual general meeting scheduled for Aug. 27, according to his letter to the board.
Gangwal said:
- Proposed Indigo board change gives Rahul Bhatia extra powers
- The move based on "serious unresolved issues"
- Will not vote to change AOA under current terms
The sharp underperformance of mid caps compared with the Nifty has further widened their valuations discount to the benchmark, Motilal Oswal said.
“We believe that the Nifty is still expensive at 18.8 times 2019-20 estimated earnings,” the homegrown brokerage said in a report.
“The Nifty and the broader markets have corrected substantially from the recent highs, led by deepening economic pressures, weak earnings growth and certain policy decisions in the Budget on taxation. Also, tepid commentaries from corporates suggest more legs to earnings downgrades,” it said.
Motilal Oswal, however, continues to prefer large caps. “The mid caps are more vulnerable to the ongoing liquidity and credit availability pressures in the economy.”
Rakesh Gangwal said:
- Proposed Indigo board change gives Rahul Bhatia extra powers
- The move based on "serious unresolved issues"
- Will not vote to change AOA under current terms
Source: Bloomberg
Indian equity benchmarks are set to open lower.
The S&P BSE Sensex traded little changed at 36,750 during the pre-market and the NSE Nifty 50 fell 0.63 percent to 10,797.
- GFL ex-date for demerger.
- Coffee Day Enterprises, Sical Logistics, SPML Infra to move into ASM Framework.
- Alphageo, Bliss GVS Pharma, CARE Ratings to move into short term ASM Framework.
- Gati price band revised to 10 percent.
- Coffee Day Enterprises, Sical Logistics price band revised to 5 percent.
Sterling & Wilson Solar IPO: Here’s All You Need To Know
Nifty Earnings To Watch- Indiabulls Housing Finance
- Titan
Other Earnings To Watch
- JSW Energy
- Arvind
- Pidilite Industries
- REC
- Thomas Cook
- Aditya Birla Fashion and Retail
- Fortis Healthcare
- JK Lakshmi Cement
- Sheela Foam
- Gujarat State Fertilizers & Chemicals
- Hawkins Cookers
- Alkyl Amines Chemicals
- Asahi India Glass
- Asian Granito
- BASF India
- Bharat Gears
- Borosil Glass Works
- Khadim
- KIOCL
- Kolte-Patil Developers
- Lakshmi Vilas Bank
- Linc Pen & Plastics
- Lux Industries
- Manali Petrochemicals
- Max Financial Services
- Metropolis Healthcare
- Minda Industries
- National Peroxide
- Central Bank of India
- Deccan Cements
- Excel Crop Care
- HSIL
- Indo Rama Synthetics (India)
- IRB Infrastructure Developers
- JHS Svendgaard Laboratories
- Nilkamal
- NLC India
- Shemaroo Entertainment
- Shree Renuka Sugars
- Shriram EPC
- Sundaram Finance
- Investment Trust Of India
- Xelpmoc Design And Tech
- Zensar Technologies
Earnings Reaction To Watch
Berger Paints (Q1, YoY)
- Revenue rose 15.7 percent to Rs 1,716.5 crore. (estimate Rs 1,646.3 crore)
- Net profit jumped 32 percent to Rs 176.8 crore. (estimate Rs 150 crore)
- Ebitda was up 27.4 percent to Rs 305.1 crore. (estimate Rs 258 crore)
- Margin at 17.8 percent versus 16.1 percent.
Entertainment Network (Q1, YoY)
- Revenue rose 8.9 percent to Rs 132.4 crore. (estimate Rs 131.6 crore)
- Net profit fell 58.1 percent to Rs 3.9 crore. (estimate Rs 11 crore)
- Ebitda was up 17 percent to Rs 33.1 crore. (estimate Rs 30.9 crore)
- Margin at 25 percent versus 23.3 percent.
- Depreciation jumped 64 percent to Rs 25 crore, finance cost was up 5.4 times to Rs 4.9 crore.
- Production expenses rose 41 percent to Rs 28.8 crore.
Dilip Buildcon (Q1, YoY)
- Revenue fell 6.1 percent to Rs 2,288 crore. (estimate Rs 2,506 crore)
- Net profit was down 50.9 percent to Rs 125.2 crore. (estimate Rs 150 crore)
- Ebitda was down 4.7 percent to Rs 412.1 crore. (estimate Rs 448.5 crore)
- Margin at 18 percent versus 17.8 percent.
- Depreciation surged 39 percent, finance cost rose 31 percent.
SRF (Q1, YoY)
- Revenue rose 9.1 1 percent to Rs 1,828.4 crore. (estimate Rs 1,913 crore)
- Net profit was up 41.4 percent to Rs 189.2 crore. (estimate Rs 146 crore)
- Ebitda was up 9.9 percent to Rs 350.1 crore. (estimate Rs 326.8 crore)
- Margin at 19.1 percent versus 19 percent.
- Other income of Rs 15 crore and tax reversal of Rs 13.2 crore in current quarter.
- Declared dividend of Rs 7 per share.
Indian Hotels (Q1, YoY)
- Revenue rose 4.1 percent to Rs 1,020 crore.
- Net profit was down 62.7 percent to Rs 5.7 crore.
- Ebitda jumped 56.9 percent to Rs 173.5 crore.
- Margin at 17 percent versus 11.3 percent.
- Finance cost surged 81 percent to Rs 84.7 crore, depreciation rose 28 percent to Rs 100.4 crore.
KEI Industries (Q1, YoY)
- Revenue rose 22.3 percent to Rs 1,081.4 crore. (estimate Rs 1,052.2 crore)
- Net profit was up 42.3 percent to Rs 45.8 crore. (estimate Rs 40.5 crore)
- Ebitda was up 32.4 percent to Rs 114.1 crore. (estimate Rs 109.5 crore)
- Margin at 10.6 percent versus 9.8 percent.
Torrent Power (Q1, YoY)
- Revenue rose 5.9 percent to Rs 3,736.1 crore.
- Net profit was up 21.9 percent to Rs 275.3 crore.
- Ebitda rose 8.8 percent to Rs 833.7 crore.
- Margin at 22.3 percent versus 21.7 percent.
Mangalam Cement (Q1, YoY)
- Revenue rose 30.9 percent to Rs 333.2 crore.
- Net profit was at Rs 33.2 crore versus net loss of Rs 15.3 crore.
- Ebitda was up 14 times to Rs 68 crore.
- Margin at 20.41 percent versus 1.9 percent.
PNB Gilts (Q1, YoY)
- Revenue jumped 93.7 percent to Rs 193.5 crore.
- Net profit stood at Rs 45.2 crore versus net loss of Rs 44.2 crore.
- Bank of Baroda reduced MCLR rates by 15 basis points across various tenors with effect from Aug. 7. One month MCLR is at 8.15 percent versus one-year MCLR at 8.45 percent.
- SRF board approved setting of an integrated facility for development of PTFE at an estimated cost of Rs. 424 crore, which will add 5,000 MTPA of capacity addition. The company stated that it will enter into fluoropolymers segment of fluorocarbons to derive cost advantage from the integrated value chain.
- Yes Bank: Moody's Investors Service extended its review for downgrade of the bank’s ‘Ba1’ long-term foreign-currency issuer rating. Moody's also extended its review for downgrade of the bank’s long-term foreign and local-currency bank deposit ratings of ‘Ba1’, foreign-currency senior unsecured MTN program rating of ‘(P)Ba1’, and Baseline Credit Assessment and adjusted BCA of ‘ba2’.
- Cox & Kings defaulted on payment of commercial papers worth Rs 5 crore which was due on Aug. 5.
- Tata Motors: ICRA downgraded long-term facilities to ‘AA-’ from ‘AA’, with outlook remaining negative due weakening of financial profile at Jaguar Land Rover Business.
- Wabco to close operations in five of its plants for three-17 days in August in view of weak demand and customer schedules.
- Music Broadcast acquired commercial rights to sell advertising space at Lucknow metro stations and play curated content for three years.
- IL&FS Transportation Networks defaulted on non-convertible debentures interest payment worth Rs 14.7 crore which was due on Aug. 5.
- Tata Power’s arm commissioned 70 KW solar roof top installation at Delhi’s India International Centre.
- HCL Tech and Oracle Health Services to collaborate to life science companies for generation of digital clinical trials.
- Minda Corporation: The National Company Law Tribunal approved amalgamation of five domestic arms with self.
- Wipro’s arm opened a new strategic design studio in Sydney.
- Muthoot Finance to consider raising funds on Aug. 12.
- IOL Chemicals & Pharma stated that they have made pre-payment of term loan of Rs 14 crore due to banks in addition to regular repayment schedule. Till date the company has prepaid Rs 98.18 crore of pre-payments to reduce debt.
(Corrects an earlier version that misstated Tata Motors' rating.)
- More than $700 billion was wiped from the value of U.S. equities on Monday, with all but 11 members of the S&P 500 Index falling.
- The rally in sovereign bonds continued, sending 10-year Treasury yields to the lowest since October 2016, Australian ones to record levels and Japanese rates below the central bank’s target range.
- The international oil benchmark closed below $60 dollars a barrel for the first time in almost two months.
- Investors are starting to grasp the potential for a protracted conflict between the two nations, with a Treasury-market recession indicator hitting the highest alert since 2007.
- As demand for haven assets spiked, gold made a run toward $1,500 an ounce.
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