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The Federal Reserve’s continued soft monetary policy stance and least possibility of any reversal of monthly bond buying augurs well for emerging markets including India, Binod Modi, head of strategy at Reliance Securities, said in a note.
Indian shares declined for the last three sessions as most companies’ June quarter earnings performance has been unimpressive. So far, of the 24 Nifty companies which have reported earnings, 18 have missed the consensus while five managed to beat the analysts’ estimates.
Shares of PVR Limited gained 3.53% to Rs 1,383.00 apiece after reporting better-than-expected revenue in the June quarter.
June Quarter Results
Net loss at Rs 219.44 crore vs net loss of Rs 289.21 crore QoQ
Revenue at Rs 59.39 crore vs estimate of Rs 33.57 crore (Bloomberg consensus)
Total costs at Rs 417.06 crore vs Rs 508.07 crore QoQ
Other income at Rs 33.16 crore vs Rs 81.80 crore QoQ
COMMENTARY AND CONTEXT
Company expects to reopen its screen portfolio on staggered basis starting July 30.
Covid 2nd wave impacted June quarter operations significantly.
Company has restarted talks with landlords/developers to seek waivers/discounts on rent payments.
Company had total liquidity of Rs 850 crore as of June 30.
Expect rental waiver, discount discussions to conclude in 2Q as cinemas are allowed to reopen.
Expects rental waiver discussion to close in September quarter.
Out of 31 analysts tracking the company, 21 maintained ‘buy’, 4 maintained ‘hold’ and 6 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg hints at an upside of 11.6%
India’s net wireless phone subscribers were down by 6.27 million in May as the second largest carrier Bharti Airtel lost 4.6 million customers in the month, according to data released by the Telecom Regulatory Authority of India.
Vodafone Idea lost net 4.28 million subscribers , while state-run BSNL lost 9,30,814 customers
Bharti Airtel had the highest proportion of active customers at 97.99% in May, followed by 88.82% for Vodafone Idea and 78.37% for Reliance Jio
Reliance Jio had a 36.6% market share in wireless subscriber base, while Bharti Airtel had 29.6% and Vodafone Idea 23.6%
Shares of LIC Housing Finance Ltd. shed 3.98% to Rs 415.80 apiece after net profit missed average analyst estimates in the June quarter.
June Quarter Results:
Net income at Rs 153.44 crore vs estimate of Rs 695 crore (Bloomberg consensus)
Revenue at Rs 4,857.11 crore vs Rs 4,967.69 crore QoQ
Total expenses at Rs 4,666.11 crore vs Rs 4,612.37 crore QoQ
Interest income at Rs 4,825.28 crore vs Rs 4,897.80 crore QoQ
Finance cost at Rs 3,549.97 crore vs Rs 3,392.87 crore QoQ
Out of 40 analysts tracking the company, 26 maintained ‘buy’, 6 maintained ‘hold’ and 8 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 26.6%. Shares of LIC Housing Finance added 16.2% in 2021 so far.
Shoppers Stop Ltd. reported a net loss for first quarter of current financial year.
Net loss at Rs 104.89 crore vs Rs 24.10 crore QoQ
Revenue at Rs 205.23 crore vs Rs 680.45 crore QoQ
Total expenses at Rs 408.95 crore vs Rs 728.94 crore QoQ
Total income at Rs 269.50 crore vs Rs 704.70 crore QoQ
COMMENTARY AND CONTEXT
Company says recovery in sales is encouraging.
Sales driven by higher footfalls, stores were operational for 28% of June quarter.
Net debt at Rs 98 crore
Expect normalcy by Q3FY22; long festive season to aid recovery.
To launch exclusive online apparel brand in the September quarter and 50+ beauty brands in next 3 months.
Company plans to open 30+ stores in the next 24 months.
Out of the 13 analysts tracking the company, 8 maintained ‘buy’, 3 maintained ‘hold’ and 2 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9%.
Revenue from operations at Rs 1,157.86 crore vs estimate of 1,200 crore
Net income at Rs 233.23 crore vs estimate of Rs 240 crore.
Total costs at Rs 856.99 crore vs Rs 908.45 crore. QoQ
Total income at Rs 1,171.18 crore vs Rs 1,289.81 crore QoQ
Out of the 38 analysts tracking the company, 23 maintained ‘buy’, 11 maintained ‘hold’ and 4 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 0.7%
The initial public offerings of Rolex Rings Ltd. and Glenmark Life Sciences continued to witness strong retail investor interest on their second and third days respectively.
The two issues were overall subscribed 5.77 times and 41.87 times so far, respectively.
Follow their subscription updates live:
Shares of Route Mobile shed 5.26% to Rs 2,062 apiece after it reported a sequential decline in net profit in June quarter earnings on Wednesday.
Revenue from operations up 4.2% at Rs 377.52 crore vs Rs 362.44 crore
Net profit down 3.2% at Rs 34.32 vs Rs 35.47 crore
Total expenses up 6.16% at Rs 339.06 crore vs Rs 319.37 crore
Total income up 5.6% at Rs 381.98 crore vs Rs 361.83 crore
Earnings per share at Rs 5.86 vs Rs 6.17
Out of the 5 analysts tracking the company, 4 maintained ‘buy’ and 1 analyst maintained ‘hold’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied a downside of 18.9%
Emkay Global View
Recommends ‘buy’ with a 12-month target price of Rs 2,420, an upside of 11.2%
Operating performance below expectation, lower gross margin and higher employee costs weighed on Ebitda.
Decline in billable transactions due to an alleged data breach incident, teething DLT issues faced by enterprise clients and the impact of the second wave of covid infections.
Expect the stock’s near-term performance to remain subdued due to strong run-up in stock price and soft June quarter.
Medium term outlook remains intact due to strong industry tailwinds, new product expansions and presence in fast growing markets.
Acquisition of SendClean email platform to aid growth going forward
Maruti Suzuki Shares Fall After Q1 Miss, But Analysts Stay Upbeat
Shares of Bharti Airtel Ltd. jumped after brokerages gave a thumbs-up to the telecom operator’s decision to hike tariff for its entry-level plan.
The company had revised pricing of its retail and corporate postpaid plans last week. The operator has in effect increased entry-level prepaid pricing by 61.2% and postpaid cost by 20-50%.
Brokerages Goldman Sachs and JPMorgan reiterated their bullish rating on the stock.
“The average revenue per user increase from the revised plans could lead to 4-7% increase in revenues and Ebitda for Bharti's India wireless business over FY23-24 assuming limited SIM consolidation. We don't expect explicit tariff increases in the short term but such implicit tariff increases drive continued price repair and provide a rerating catalyst for the stock,” said JPMorgan.
Goldman Sachs in its note said it sees this increase in tariffs by Bharti as a significant catalyst for the sector and that it estimates a $400 million increment in annual Ebitda for every Rs 10 in incremental monthly average revenue per user
Meanwhile, Jefferies upgraded its rating on the stock to ‘buy’ citing recent positives such as the recent AGR judgement and potential delays in 5G auctions along with the projected higher future tariffs. It set a target price of Rs 655 on the stock.
Shares of Bharti Airtel gained as much as 1.25% to Rs 575.
China Looks to More Export Tariffs to Tame Booming Steel Sector
Shares of Tatva Chintan Pharma Chem Ltd., that witnessed the second-most subscription for its initial public offering so far this year, more than doubled on market debut.
The specialty chemical maker’s stock listed at Rs 2,111.85 apiece on the National Stock Exchange, a premium of 95% to its issue price of Rs 1,083. The stock saw an intraday high of Rs 2,534.20 (up 134% over IPO price) thereafter.
The Gujarat-based company’s Rs 500-crore issue was subscribed more than 182 times, surpassing online platform gaming Nazara Technologies’ IPO that received 175.46 times more bids than the shares on offer.
Biocon Biologics Ltd., a unit of Biocon Ltd., and Viatris Inc.received approval from the U.S. FDA for Semglee, an interchangeable biosimilar product for diabetes treatment: exchange filing.
“This will allow pharmacy level substitution and thereby provide convenient and affordable access to Semglee, a quality biosimilar insulin glargine,” Biocon Biologics Chairman Kiran Mazumdar Shawsays
Viatris and Biocon Biologic’s insulin glargine has received regulatory approval in more than 60 countries around the world
The Federal Reserve’s continued soft monetary policy stance and least possibility of any reversal of monthly bond buying augurs well for emerging markets including India, Binod Modi, head of strategy at Reliance Securities, said in a note.
Indian shares declined for the last three sessions as most companies’ June quarter earnings performance has been unimpressive. So far, of the 24 Nifty companies which have reported earnings, 18 have missed the consensus while five managed to beat the analysts’ estimates.
Panatone Finvest Ltd., a unit of Tata Sons Pvt., will subscribed to as many as 19.4 million shares of Tejas Networks Ltd. at Rs 258 each, according to a stock exchange filing.
The Tata Sons unit will also subscribe to 36.8 million warrants at Rs 258 each; the warrants can be converted to equal number of shares within 11 months from the date of allotment
It will also take another 15.5 million warrants, which can be converted into equal number of shares in Tejas between 12th and 18th month of the allotment date
The Tata Sons unit will also need to make a mandatory open offer to Tejas shareholders
Panatone will own 43.35% of Tejas after exercising the second set of warrants
After completion of the deal, the Tata Sons unit will become a “promoter” of Tejas
Windlas Biotech Ltd. will sell shares in a range of Rs 448 to Rs 460 each in an initial public offering that seeks to raise as much as Rs 400 ($53.8 million), according to an advertisement in the Financial Express newspaper Thursday.
The Gurgaon, Haryana-based pharmaceutical formulations contract manufacturing company’s IPO opens Aug. 4 and closes Aug. 6; anchor investors will bid on Aug. 3
The company seeks to raise as much as Rs 165 crore selling new shares, while its existing shareholders will sell as many as 5.14 million shares in the IPO
Investors can bid for minimum 30 shares of face value Rs 5 in the sale
SBI Capital, DAM Capital and IIFL Securities are managing the sale
Indian rupee advances along with stocks, tracking broader gains in Asia on China’s efforts to calm down its markets and Fed Chair Jerome Powell’s comments that the authority was still some way off before tapering asset purchases.
USD/INR fell 0.2% to 74.2325; S&P BSE Sensex rose 0.5%, snapping three days of losses
Sovereign bond traders will wait for any announcement on bond purchases by RBI for the next week
Yield on 6.1% 2031 bond steady at 6.19%; 5.63% 2026 bond yield rose 1bp at 5.72%
India’s retail and wholesale inflation will probably accelerate during the second half of this year, according to economists surveyed by Bloomberg
India’s retail and wholesale inflation will probably accelerate during the second half of this year, according to economists surveyed by Bloomberg
The wholesale price index is expected to continue to grow in double-digits, at 10.71% from a year ago during the July-September quarter, up from the previous forecast of 10.12%, before slowing to 9.13% in the last quarter of the calendar year, according to the survey. Economists also upgraded their outlooks for consumer inflation to 5.7% and 5.2% for the final two quarters of 2021 respectively
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