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How India Inc.’s Debt Shrank In Pandemic-Hit FY21
Key Highlights
Net loss at Rs 1,528.76 crore
Revenue at Rs 2,187.06 crore vs estimate Rs 1,480 crore
Total costs at Rs 4,256.87 crore
Finance cost at Rs 1,017.94 crore
Other income at Rs 11.08 crore
Commentary and Context
Cites ECL, additional overlay provision for loss
Expect improvement over the next few quarters, resulting in provision reversals for 80-90% of loan contracts over Q3/Q4 FY22
During the June quarter, the Company has implemented resolution plans to relieve Covid-19 pandemic related stress of eligible borrowers in 59,455 loan accounts with a total outstanding of Rs 2,172 crore as on June 30.
Out of the 36 analysts tracking the company, 17 maintained ‘buy’, 12 maintained ‘hold’ and 7 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg hints at an upside of 21.1%. Shares of Mahindra & Mahindra Financial services shed 14.41% in 2021 so far.
Mega LIC IPO Inching Towards Reality
Shares of JSW Energy Ltd. gained for the 8th consecutive day, the longest winning streak in over 6 years. Over the last 8 sessions, shares of JSW Energy have added 44% while the S&P BSE Sensex gained 0.3 percent over the same period.
The company, which will report its June quarter earnings on Friday (July 30) has an Relative Strength Index (RSI) of 89, which indicates that the stock may be in overbought territory.
Out of the 14 analysts tracking the company, 4 maintained ‘buy’, 4 maintained ‘hold’ and 6 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 50.9%.
For a detail report on Kotak Mahindra's Q1 performance, click here.
CreditAccess Grameen Ltd. fell as much as 6.9%, the most since April 12 this year.
The stock was the worst performer among its peers.
Trading volume was 163,389 shares, 48% above the 20-day average of 110,746 shares for this time of day.
The shares are down 12% in the past 5 days and fell 14% in the past 30 days.
Analysts have 13 buy, two hold, and no sell recommendations on the stock.
The price target of Rs 779.71 represents a 19% increase from the last price
CreditAccess Grameen trades at 20 times its estimated earnings per share for the coming year.
An annual shareholder meeting is scheduled for July 30.
Patchy Monsoon Rain Raises Growth and Inflation Worries in India
Shares of Caplin Point Laboratories Ltd. gained as much as 18.7% to Rs 940 apiece, a record high for the stock.
The stock has risen for a sixth straight session after it received a USFDA nod for migraine drug Sumatriptan, a therapeutic equivalent of IMITREX injection of GlaxoSmithKline.
Shares of Caplin Point advanced 40% so far this month in comparison to the 3.8% gains for S&P BSE Healthcare. All three of the analysts tracking the company maintained the ‘buy’ recommendation. The overall consensus price of analysts tracked by Bloomberg hints at a downside of 26.6%.
The Relative Strength Index of Caplin Point Laboratories is 82.83 indicating that the stock may be in overbought territory.
Indian bonds gain amid a drop in global oil prices in Asian trading and lower sale of state debt on Tuesday. The rupee is marginally lower.
Yield on 6.1% 2031 bond steady at 6.16% after rising by 3bps on Friday; 5.63% 2026 bond yield down 2bps to 5.67%; 6.64% 2035 yield down 1bp to 6.77%
States to sell Rs 7,000 crore of debt Tuesday vs 184b rupees scheduled in the indicative calendar
NOTE: Primary dealers bought Rs 11,140 crore ($1.5 billion) of bonds out of Rs 14,000 crore of 6.1% 2031 debt offered at Friday’s sale, the RBI said in a statement
USD/INR up 0.1% at 74.4725
Reliance Industries Results: Analysts' Take On What Will Aid RIL's Growth After Q1
Nomura
Recommends ‘buy’ with a target price of Rs 1,250.
June quarter results indicative of the core profitability of the business model.
Spends are recovering well while receivables remain impacted due to the lockdowns.
Expect net credit cost to normalize going forward.
Strong profitability and low capital consumption make SBI Cards a niche play.
Firm offers good combination of superior growth with strong RoEs.
Asset quality worries are largely behind, residual stress to ease going forward.
Motilal Oswal
Recommends ‘buy’ with a target price of Rs 1,200.
June quarters earnings steady, asset quality has improved sequentially.
Stable fee income, improvements in loan mix led to margin expansion.
Lower Opex, stability in asset quality aided profitability.
Spends have started showing gradual improvement in the month of June as the second wave impact eased.
Expect RoA/RoE to improve to 7.9%/30.5% in FY23E.
Brokerages’ Take On JSW Steel’s Q1 Performance, Investment In Paint Business
ICICI Bank Q1 Review: Brokerages Up Target Prices Unfazed By Asset Quality Concerns
Shares of Jindal Steel & Power Ltd. gained 3.57% to Rs 411.30 apiece after it received a revised bid from Worldone for its thermal power arm.
In April, JSPL divested 96.42% in JPL to Worldone for Rs 3,015 crore. However, after feedback from several investors and shareholders who pointed out that the deal value is lower than expected, JSPL asked for revised bids.
“Worldone will buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 crore,” said the company in a statement.
Worldone Pvt is owned by the JSPL promoter group, managing and holding investments across various listed and unlisted companies.
Out of the 25 analysts tracking the company, 20 maintained ‘buy’, 4 maintained ‘hold’ and 1 analyst maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg hinted at an upside of 28.9%. Shares of JSPL added 52.14% in 2021 so far as compared to 67.29% gains for S&P BSE Metal Index
To read what brokerages made of ITC's Q1 performance, click here.
Yes Bank Staying Away From Lending To Covid-Hit Sectors This Fiscal, Says CEO Kumar
Kerala-based ESAF Small Finance Bank Ltd. has sought approval from the markets regulator Sebi to raise Rs 800 crore ($107 million) selling new shares in an initial public offering, according to a copy of its draft prospectus on issue manager ICICI Securities’ website.
Existing shareholders and founder ESAF Financial Holdings plan to sell as much as Rs 198 crore worth of shares in an offer-for-sale as part of the IPO
The bank is planning a pre-IPO placement of Rs 300 crore of shares; new share sale will be lower if the pre-IPO sale happens
The bank plans to boost its Tier 1 capital base with the proceeds from the planned IPO, which is its second attempt to go public after an earlier filing with the regulator in 2020
Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities will manage the sale
Ten of the 19 sector sub-indexes compiled by BSE Ltd. slipped, led by a gauge of banking companies.
In earnings, 11 of the 15 Nifty companies that have announced results so far fell short of analysts’ estimates while four have beaten the consensus.
The initial public offering of Rolex Rings Ltd., a Rajkot, Gujarat-based maker of automotive components, will raise about Rs 731 crore ($98.2 million) at the top end of the price band, according to an advertisement in the Financial Express newspaper Monday.
Company plans to raise Rs 56 crore by selling new shares, while investor Rivendell PE LLC is seeking to sell 7.5 million shares in an offer-for-sale as part of the IPO
IPO opens July 28 and closes July 30, anchor investors will bid July 27
Investors can bid for minimum 16 shares of face value Rs 10 in the sale
Rivendell PE LLC held 10.9 million shares, or a 41% stake, in the company before the IPO, according to the prospectus for the sale
Equirus Capital, IDBI Capital Markets and JM Financial are managing the sale
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.jpg?downsize=1080:540 "Sensex, Nifty Close Lower As Investors Digest Earnings; RIL Drags")
