KEY HIGHLIGHTS
BQ Live
Closing Bell: Sensex Ends At Over Two-Month Low; Nifty Closes Below 11,150
Indian equity benchmarks ended lower for the ninth consecutive trading session.
The S&P BSE Sensex closed 372 points or 0.99 percent lower at 37,090.82, the lowest in over two months. The NSE Nifty 50 registered its longest losing streak in over eight years and ended below 11,150 after falling 1.16 percent. The broader market index represented by the NSE Nifty 500 Index closed 1.4 percent lower.
The market breadth was tilted in favour of sellers. About 1,429 stocks fell and 352 shares advanced on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 5 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.04 percent.
Delta Corp Says Company Has Not Evaded Any GST
Delta Corp, today, said in a statement that the company has not received any notice against the company or its unit for any alleged evasion of GST.
“We believe we are in compliance with GST laws and have not evaded any GST,” Delta Corp said.
Sun Pharma Recovers From 20% Drop
Shares of Sun Pharmaceutical industries fell as much as 21.3 percent, their biggest intraday fall since its listing. The stock recovered later to trade 7 percent lower.
Trading volume was more than double its 20-day average, Bloomberg data showed. The stock declined 9.7 percent in the past 12 months. The Relative Strength Index was below 30, indicating that the stock may be overbought.
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks were trading at day’s low. Sensex fell over 100 points and Nifty traded at 11,215.
ITC Falls After Q4 Results Announcement
Shares of ITC Ltd. fluctuated between gains and losses to trade 1.5 percent lower at Rs 294 after the company announced its March quarter results.
The company reported a net profit of Rs 3,481 crore, an increase of 19 percent from the year-ago period, according to its stock exchange filing. That surpassed Rs 3,240 crore that analysts tracked by Bloomberg had projected.
Key Earning Highlights (Q4, YoY)
- Revenue up 13 percent to Rs 11,992 crore.
- Net profit up 19 percent to Rs 3,481 crore.
- Ebitda up 10 percent to Rs 4,572 crore.
- Margin at 38.1 percent versus 39.1 percent.
ITC Names Sanjiv Puri As Chairman
ITC Ltd. today named Managing Director Sanjiv Puri as its chairman, according to its stock exchange filing.
This after the long-serving chairman Yogesh C Deveshwar passed away on Saturday.
Also Read: India Inc. Remembers YC Deveshwar
Stocks Reacting To Earnings Announcement
Automotive Axles (Q4, YoY)
- Stock rose as much as 7 percent to Rs 1,147.
- Net Profit at Rs 29.95 crore versus Rs 28.28 crore.
- Revenue at Rs 481.09 crore versus Rs 469.07 crore.
Trident (Q4, YoY)
- Stock rose as much as 3 percent to Rs 69.
- Net profit at Rs 92.57 crore versus Rs 51.41 crore.
- Revenue at Rs 1,405.42 crore versus Rs 1,185.56 crore.
Vimta Labs (Q4, YoY)
- Stock rose as much as 8.9 percent to Rs 199.40.
- Net profit at Rs 6.76 crore versus Rs 5.06 crore.
- Revenue at Rs 53.58 crore versus Rs 52,64 crore.
Oriental Bank of Commerce (Q4, YoY)
- Stock fell as much a 4.2 percent to Rs 91.55.
- Net profit at Rs 201.5 crore versus net loss of Rs 1,650 crore.
- Gross NPA at 12.66 percent versus 15.88 percent (QoQ).
- Net NPA at 5.93 percent versus 7.15 percent (QoQ).
- Provision at Rs 1,051.51 crore versus Rs 3719.81 crore (QoQ); Rs 2,334.92 crore (YoY).
- Net interest income up 35 percent to Rs 1,473.5 crore.
Inox Leisure Falls After Q4 Results Announcement
Shares of Inox Leisure fell as much as 2.8 percent to Rs 298.20 after the company announced its March quarter results.
Key Earnings highlights (Q4, YoY)
- Revenue up 47.8 percent to Rs 479 crore.
- Net profit down 15.7 percent to Rs 48 crore.
- Ebitda up 130.9 percent to Rs 97 crore.
- Margin at 20.2 percent versus 12.9 percent.
PSU Banks Decline; Allahabad Bank Falls Nearly 8%
The NSE Nifty PSU Bank Index fell over 3 percent, led by the declines in Allahabad Bank, Canara Bank and Union Bank of India.
Tata Motors Falls After Group Global Sales Declines 22%
Shares of Tata Motors fell as much as 1.9 percent to Rs 182.40.
The company’s Group Global sales fell 22 percent on a yearly basis in April to 79,923 units, according to its stock exchange filing.
HDFC Gains After Q4 Results Announcement
Shares of HDFC rose as much as 1.4 percent to Rs 1,958.75 after announcing its march quarter results.
Key Earnings Highlights (Q4, YoY)
- Net profit up 19 percent to 3,161 crore.
- Net interest income rose 27 percent to 2,862 crore.
- Loan growth at 15 percent
- Gross NPAs at 1.18 percent versus 1.22 percent (QoQ).
- Individual GNPA 70 basis points.
- Non-Individual NPAs at 2.34 percent.
- NIMs at 3.3 percent versus 3.5 percent (QoQ).
- Spreads 2.30 percent versus 2.26 percent (QoQ).
- Individual spreads at 1.91 percent.
- Non-Individual Spreads at 3.17 percent.
Rs 935 crore provisions made this quarterLast year’s numbers restated as per Ind-AS
F&O Check: Nifty 11,300 Call Option Falls Over 21%
Nifty’s 11,300 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract fell 21.47 percent to Rs 73.70. Over 10.85 lakh shares were added to the open interest which stood at over 22.5 lakh shares.
Passenger Vehicle Sales In April Fall 17.07%: SIAM
Passenger vehicle sales in April fell 17.07 percent on a yearly basis to 2.47 lakh units, according to data provided by Society of Indian Automobile Manufacturers.
Key sales highlights (YoY):
- Domestic passenger car sales down 19.93 percent to 1.6 lakh units.
- Total commercial vehicle sales fell 5.98 percent to 68,680 units.
- Total two-wheeler sales fell 16.36 percent to 16.38 lakh units.
- Total three-wheeler sales declined 7.44 percent to 46,262 units.
Block Deal Alert: Vodafone Idea
About 10.5 lakh shares of Vodafone Idea changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
Cadila Healthcare Falls After CLSA Downgrade
Shares of Cadila Healthcare fell as much as 5.5 percent to Rs 273.25.
Brokerage and research firm CLSA downgraded the stock rating to ‘Sell’ from ‘Buy’ and cut its price target to Rs 250 from Rs 430, implying a potential downside of 13.5 percent form the last regular trade.
Here’s what CLSA had to say:
- Moraiya plant received 14 observations; plant is critical for Cadila.
- Observations for sterile products are worrying.
- Expect approval delays, cut FY20-21 EPS by 19-24 percent.
Stocks Reacting To Results Announcement
Eicher Motors (Q4, YoY)
- Stock fell as much as 5.9 percent to Rs 19,150.
- Revenue down 1.1 percent to Rs 2,500.1 crore.
- Net profit up 18 percent to Rs 544.8 crore.
- Ebitda down 14.1 percent to Rs 684.6 crore.
- Margin at 27.4 percent versus 31.5 percent.
- Other Income up 68 percent at Rs 142.7 crore.
- Declares dividend of Rs 125 per share.
Syndicate Bank (Q4, YoY)
- Stock fell as much as 1.7 percent to Rs 37.30.
- Net interest income up 16.3 percent to Rs 1,952.3 crore.
- Net profit at Rs 128 crore versus Net loss at Rs 2,195.1 crore.
- Provisions up 3 percent to Rs 5,288.4 crore. (Rs 5,444.1 crore QoQ)
- Gross NPA at 11.37 percent versus 12.54 percent (QoQ)
- Net NPA at 6.16 percent versus 6.75 percent (QoQ)
GSK Consumer Healthcare (Q4, YoY)
- Stock rose as much as 2.1 percent to Rs 7,199.95.
- Revenue up 9 percent at Rs 1,286.1 crore.
- Net profit up 34.9 percent to Rs 285.8 crore.
- Ebitda up 27.4 percent at Rs 318.5 crore.
- Margin at 24.8 percent versus 21.2 percent.
- Declared dividend of Rs 105 per share
Relaxo Footwears (Q4, YoY)
- Stock fell as much as 1.9 percent to Rs 852.10.
- Revenue up 15.5 percent to Rs 635.7 crore.
- Net profit up 1.7 percent to Rs 54.4 crore.
- Ebitda down 2.8 percent to Rs 95.2 crore.
- Margin at 15 percent versus 17.8 percent.
- Raw Material as percent of sales at 39 percent versus 33 percent.
- Board approves issue of bonus shares at 1:1
V2 Retail (Q4, YoY)
- Stock fell as much as 4.8 percent to Rs 238.15.
- Revenue up 29.5 percent to Rs 163.9 crore.
- Net profit up 13.5 percent to Rs 4.2 crore.
- Ebitda up 38.7 percent to Rs 4.3 crore.
- Margin at 2.6 percent versus 2.4 percent.
Merck (Q1, YoY)
- Stock rose as much as 6.5 percent to Rs 3,950.
- Revenue up 16.5 percent to Rs 231 crore.
- Net profit up 79.3 percent to Rs 40.7 crore.
- Ebitda up 2.1 times at Rs 50.1 crore.
- Margin at 21.7 percent versus 12 percent.
- Other Income up 3.3 percent to Rs 17.7 crore.
- Exceptional gain of Rs 6.6 crore in base quarter.
Chalet Hotels Q4*
- Stock rose as much as 2.4 percent to Rs 335.40.
- Revenue at Rs 269.9 crore.
- Net Income at Rs 133.1 crore.
Avenue Supermarts (Q4, YoY)
- Stock rose as much as 1.9 percent to Rs 1,274.70.
- Revenue up 32 percent to Rs 5,033 crore.
- Net profit up 21.5 percent to Rs 203 crore.
- Ebitda up 27.4 percent to Rs 376 crore.
- Margin at 7.4 percent versus 7.7 percent.
Nilkamal (Q4, YoY)
- Stock fell as much as 1.7 percent to Rs 1,232.10.
- Revenue down 6.8 percent to Rs 555 crore.
- Net profit down 17.6 percent to Rs 28 crore.
- Ebitda down 18.4 percent to Rs 53 crore.
- Margin at 9.5 percent versus 10.9 percent.
Vinati Organics (Q4, YoY)
- Stock rose as much as 3.6 percent to Rs 1,849.95.
- Revenue up 39 percent to Rs 297 crore.
- Net profit up 60 percent to Rs 83 crore.
- Ebitda up 86 percent to Rs 120.2 crore.
- Margin at 40.5 percent versus 30.3 percent.
La Opala RG (Q4, YoY)
- Stock fell as much as 3.1 percent to Rs 202.05.
- Revenue up 5.8 percent to Rs 72 crore.
- Net profit up 14 percent to Rs 16 crore.
- Ebitda up 1.6 percent to Rs 24.1 crore.
- Margin at 33.4 percent versus 34.8 percent.
Motilal Oswal Financial Services (Q4, YoY)
- Stock rose as much as 6.3 percent to Rs 710.
- Revenue down 0.9 percent to Rs 656.6 crore.
- Net profit up 10.5 times to Rs 146.1 crore.
- Net profit aided by lower other expenses and lower investment losses.
- Other expenses lower due to lower bad debts write-off related to Aspire Home Finance.
GNA Axles (Q4, YoY)
- Stock rose as much as 8.8 percent to Rs 295.
- Revenue up 18.4 percent to Rs 242.19 crore.
- Net Profit down 15 percent to Rs 293.83 crore.
- Ebitda up 31 percent to Rs 38.65 crore.
- Margin 16 percent versus 14.4 percent.
*Numbers are not comparable
Corrects GNA Axles’ Ebitda and Margin details.
Vodafone Idea Surges Ahead Of Results Announcement
Shares of Vodafone Idea rose as much as 6.4 percent to Rs 14.95 ahead of its results announcement.
Here’s what analysts tracked by BloombergQuint expect the company to report on a sequential basis:
- Revenue seen down 0.2 percent at Rs 11,744 crore.
- Net loss seen at Rs 4,806 crore versus Rs 5,005 crore.
- Ebitda seen up 20 percent at Rs 1,362 crore.
- Margin seen at 11.6 percent versus 9.7 percent.
- ARPU seen up 9 percent at Rs 97.
Delta Corp Extends Fall, Shares At Over 19-Month Low
Shares of Delta Corp fell for the sixth consecutive trading session, their longest losing streak in nearly a year. The stock fell as much as 12 percent to trade at over a 19-month low at Rs 188.20.
The DG GST Intelligence has Delta Corp and its unit—Highstreet Cruises for Rs 6,189 crore GST evasion, CNBC-TV18 reported quoting unidentified sources.
Trading volume was more than eight times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought.
SRF Swings On Unit Sale Plans
Shares of the industrial chemicals maker fluctuated between gains and losses to trade little changed at Rs 2,444.85.
The company plans to sell its engineering plastics division to DSM India (wholly-owned subsidiary of Royal DSM Netherlands) for Rs 320 crore, according to an exchange filing. The company expects to complete the sale within six months. The division contributed Rs 209 crore (4.5 percent) to the total revenue of the company in 2017-18, the filing added.
The stock traded at 23 times its earnings per share for the coming year according to Bloomberg data.
L&T Falls After Q4 Results Announcement
Shares of Larsen & Toubro fell as much as 1.2 percent to Rs 1,338.85 after the company announced its March quarter results on Friday. The stock is set for its longest losing streak in over four months.
Key Earnings Highlights (Q4, YoY)
- Revenue up 10 percent to Rs 44,934 crore.
- Net profit up 8 percent to Rs 3,418 crore.
- Ebitda up 3 percent to Rs 5,599 crore.
- Margin at 12.5 percent versus 13.3 percent.
- FY19 revenue guidance of 12 -15 percent met.
- Bagged orders worth Rs 56,538 crore.
- International orders were 31 percent of the order inflow.
Here’s what Investec had to say after the company announced its fourth quarter results:
- Maintained ‘Buy’ with a price target of Rs 1,805.
- An in-line quarter; guidance exudes confidence.
- Revenue/order inflows may be slightly weaker.
- Continue to see L&T as a beneficiary of pick-up in govt capex.
Opening Bell: Sensex, Nifty Open Lower
Indian equity benchmarks opened lower for the ninth consecutive trading session.
The decline in the benchmark indices were in line with their Asian peers as investors awaited details on the counter-measures China warned it would impose following last week’s escalation in the trade war between the world’s top two economies.
The S&P BSE Sensex fell as much as 0.38 percent to 37,319 and the NSE Nifty 50 fell as much as 0.43 percent to 11,230.70. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.38 percent.
The market breadth was tilted in favour of sellers. About 844 stocks fell and 573 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Metal Index’s 0.8 percent decline. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral gainer, up 0.24 percent.
With inputs from Bloomberg
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.38 percent to 70.17 against the greenback.
Asian currencies are under pressure as investors await the China response to the U.S. tariffs. The pair may stay in a range of 69.90-70.50 a dollar in the day.
Inflation will be the key data in focus today for sovereign bonds. Consumer price index probably rose 2.99 percent in April versus 2.86 percent in March, as per a Bloomberg survey ahead of the data. Yield on the benchmark note rose two basis points in Friday to 7.41 percent. For the day, it may stay in a band of 7.39-7.45 percent.
BQ Heads-Up: Fund Flows, Indian ADRs, Insider Trading And More
Your Complete F&O Trade Setup
Futures –May series
Nifty
- Nifty futures closed trading at 11,307, premium of 28 points versus 33 points.
- Nifty open interest down 6 percent, sheds 9.9 lakh shares in open interest.
Bank Nifty
- Bank Nifty futures closed trading at 29,088, premium of 47.6 points versus 110 points
- Bank Nifty open interest down 9 percent sheds 1.5 lakh shares in open interest.
Options
- Nifty PCR at 1.29 versus 1.02 (across all series)
Nifty Weekly Expiry 16 May
- Max open interest on call side at 11,500 (20.6 lakh shares)
- Max open interest at put side at 11,000 (11.9 lakh shares)
- Max open interest addition seen at 11,300 Call (+6 lakh shares), 11,200 Put (+4.9 lakh shares)
Nifty Monthly Expiry 30 May
- Max open interest on call side at 12,000 (21.5 lakh shares)
- Max open interest on Put side at 11,000 (26.6 lakh shares)
- Max open interest addition seen at 12,000 Call (+3.9 lakh shares)
Brokerage Radar: Dalmia Bharat, Gujarat State Petronet, SBI, Voltas
On SBI
Jefferies
- Maintained ‘Buy’; hiked price target to Rs 375 from Rs 365.
- March quarter was operationally weak; 2019-20 should be better.
- Net stress trending lower; recovery pipeline strong.
- Growth improving; profitability stable.
Kotak Securities
- Maintained ‘Buy’ with a price target of Rs 410.
- Strong overall earnings; higher provisioning dents profitability.
- Balance sheet recovery accelerating with sharp improvement in asset quality.
- Focus firmly shifts to recovery of return ratios.
Nomura
- Maintained ‘Buy’; hiked price target to Rs 400 from Rs 375.
- Pre-provisioning operating profit performance to improve going forward.
- Asset quality – well recognised and provided.
- See visibility of 14 percent ROEs; valuations undemanding.
On Voltas
Citi
- Maintained ‘Buy’; cut price target to Rs 670 from Rs 690.
- Disappointing 2018-19; cautiously optimistic about summer.
- June quarter started well; price hike difficult to come by.
- Cut EPS estimates by 6-11 percent to factor in latest trends.
Kotak
- Maintained ‘Sell’; cut price target to Rs 480 from Rs 500.
- Disappointing performance amid weak demand scenario and high channel inventory.
- EMP segment profitability impacted due to its lumpy nature.
- Beko business: focus on expansion of distribution reach and strengthen product portfolio.
More Calls
Citi on Dalmia Bharat
- Maintained ‘Buy’; hiked price target to Rs 1,450 from Rs 1,350.
- March quarter’s Ebitda was in line.
- Positive on cement.
- Cash management worries priced in.
Nomura on Gujarat State Petronet
- Maintained ‘Buy’; hiked price target to Rs 240 from Rs 200.
- March quarter volumes further moderated but June quarter should see sharp jump.
- With reorganization of GSPC, concerns on weak parent abate.
- Hike earnings estimate by 30 percent for the current and the next financial year; valuations attractive.
Kotak Securities on Canara Bank
- Maintained ‘Add’ with a price target of Rs 315.
- High provisions dent earnings primarily to improve the strength of balance sheet.
- Slippages at a four-year low; gross NPLs continue to improve.
- Would be beneficiary of entire corporate NPL recovery cycle.
Kotak Securities on Eicher Motors
- Maintained ‘Sell’; cut price target to Rs 16,200 from Rs 18,400.
- March quarter’s margin deteriorated as volume pressure mounts.
- Performance of VECV weak due to volume decline and higher discount.
- Believe margin will continue downward trajectory with slowdown in volume growth.
Nomura on Kajaria Ceramics
- Maintained ‘Buy’ with a price target of Rs 635.
- Weak March quarter; both volume growth and margins miss estimates.
- Management guides strong 15 percent volume growth for 2019-20.
- Management indicated 3-4 percent price hike; expect improvement in profitability in June quarter.
CLSA on Cadila Healthcare
- Downgraded to ‘Sell’ from ‘Buy’; cut price target to Rs 250 from Rs 430.
- Moraiya plant received 14 observations; plant is critical for Cadila.
- Observations for sterile products are worrying.
- Expect approval delays, cut FY20-21 EPS by 19-24 percent.
Investec on Prism Johnson
- Maintained ‘Hold’ with a price target of Rs 113.
- Cement division reported strong operational metrics led by favourable regional exposure and cost initiatives.
- Working capital has been kept under control.
- With new Tiles CEO appointed, keep a watch on impending turnaround.
Investec on L&T
- Maintained ‘Buy’ with a price target of Rs 1,805.
- An in-line quarter; guidance exudes confidence.
- Revenue/order inflows may be slightly weaker.
- Continue to see L&T as a beneficiary of pick-up in govt capex.
Trading Tweaks: Eveready Industries, Mcleod Russel
- Eveready Industries, Mcleod Russel, Williamson Magor & Company to move out of short term ASM Framework.
- Williamson Magor & Company, Kellton Tech Solutions price band revised to 5 percent.
Pledge Share Details: Adani Transmission, Bajaj Consumer Care And More
- Bajaj Consumer Care promoter Bajaj Resources revoked pledge of 21.94 lakh shares on May 8.
- Adani Transmission promoter group Gautam Adani revoked pledge of 21.49 lakh shares on May 8.
- Future Retail promoter Future Corporate Resources created pledge of 1.25 lakh shares on May 8.
- Indiabulls Real Estate: Promoter released pledge of 3.75 crore equity shares or 8.32 percent equity.
- Indiabulls Housing Finance: Promoter released pledge of 2.75 crore equity shares or 6.11 percent equity.
Q4 Earnings Corner: Eicher Motors, HDFC, ITC, Just Dial, L&T, Vodafone Idea
Nifty Earnings To Watch
- HDFC
- ITC
Other Earnings To Watch
- Vodafone Idea
- Godrej Industries
- Andhra Bank
- IDBI Bank
- INOX Leisure
- Just Dial
- Karnataka Bank
- Linde India
- Mangalore Refinery and Petrochemicals
- Metropolis Healthcare
- Muthoot Finance
- Oriental Bank of Commerce
- Pioneer Distilleries
- SRF
- Texmaco Rail & Engineering,
- The New India Assurance Company
- Trident
- United Bank of India
- Automotive Axles
- Avadh Sugar & Energy
- Balkrishna Paper Mills
- Borosil Glass Works
- Capacit'e Infraprojects
- CCL Products (India)
- Ester Industries
- Future Supply Chain Solutions, Honeywell Automation India
- Bombay Burmah Trading
- Nirlon
- Shemaroo Entertainment
Nifty Earnings Reaction To Watch
Larsen & Toubro (Q4, YoY)
- Revenue up 10 percent to Rs 44,934 crore.
- Net profit up 8 percent to Rs 3,418 crore.
- Ebitda up 3 percent to Rs 5,599 crore.
- Margin at 12.5 percent versus 13.3 percent.
- FY19 revenue guidance of 12 -15 percent met.
- Bagged orders worth Rs 56,538 crore.
- International orders were 31 percent of the order inflow.
Eicher Motors (Q4, YoY)
- Revenue down 1.1 percent to Rs 2,500.1 crore.
- Net profit up 18 percent to Rs 544.8 crore.
- Ebitda down 14.1 percent to Rs 684.6 crore.
- Margin at 27.4 percent versus 31.5 percent.
- Other Income up 68 percent at Rs 142.7 crore.
- Declares dividend of Rs 125 per share.
Other Earnings Reaction To Watch
Syndicate Bank (Q4, YoY)
- Net interest income up 16.3 percent to Rs 1,952.3 crore.
- Net profit at Rs 128 crore versus Net loss at Rs 2,195.1 crore.
- Provisions up 3 percent to Rs 5,288.4 crore. (Rs 5,444.1 crore QoQ)
- Gross NPA at 11.37 percent versus 12.54 percent (QoQ)
- Net NPA at 6.16 percent versus 6.75 percent (QoQ)
GSK Consumer Healthcare (Q4, YoY)
- Revenue up 9 percent at Rs 1,286.1 crore.
- Net profit up 34.9 percent to Rs 285.8 crore.
- Ebitda up 27.4 percent at Rs 318.5 crore.
- Margin at 24.8 percent versus 21.2 percent.
- Declared dividend of Rs 105 per share
Relaxo Footwears (Q4, YoY)
- Revenue up 15.5 percent to Rs 635.7 crore.
- Net profit up 1.7 percent to Rs 54.4 crore.
- Ebitda down 2.8 percent to Rs 95.2 crore.
- Margin at 15 percent versus 17.8 percent.
- Raw Material as percent of sales at 39 percent versus 33 percent.
- Board approves issue of bonus shares at 1:1
V2 Retail (Q4, YoY)
- Revenue up 29.5 percent to Rs 163.9 crore.
- Net profit up 13.5 percent to Rs 4.2 crore.
- Ebitda up 38.7 percent to Rs 4.3 crore.
- Margin at 2.6 percent versus 2.4 percent.
Merck (Q1, YoY)
- Revenue up 16.5 percent to Rs 231 crore.
- Net profit up 79.3 percent to Rs 40.7 crore.
- Ebitda up 2.1 times at Rs 50.1 crore.
- Margin at 21.7 percent versus 12 percent.
- Other Income up 3.3 percent to Rs 17.7 crore.
- Exceptional gain of Rs 6.6 crore in base quarter.
Chalet Hotels Q4*
- Revenue at Rs 269.9 crore.
- Net Income at Rs 133.1 crore.
GNA Axles (Q4, YoY)
- Stock rose as much as 8.8 percent to Rs 295.
- Revenue up 18.4 percent to Rs 242.19 crore.
- Net Profit down 15 percent to Rs 293.83 crore.
- Ebitda up 31 percent to Rs 38.65 crore.
- Margin 16 percent versus 14.4 percent.
Avenue Supermarts (Q4, YoY)
- Revenue up 32 percent to Rs 5,033 crore.
- Net profit up 21.5 percent to Rs 203 crore.
- Ebitda up 27.4 percent to Rs 376 crore.
- Margin at 7.4 percent versus 7.7 percent.
Nilkamal (Q4, YoY)
- Revenue down 6.8 percent to Rs 555 crore.
- Net profit down 17.6 percent to Rs 28 crore.
- Ebitda down 18.4 percent to Rs 53 crore.
- Margin at 9.5 percent versus 10.9 percent.
Vinati Organics (Q4, YoY)
- Revenue up 39 percent to Rs 297 crore.
- Net profit up 60 percent to Rs 83 crore.
- Ebitda up 86 percent to Rs 120.2 crore.
- Margin at 40.5 percent versus 30.3 percent.
La 0pala RG (Q4, YoY)
- Revenue up 5.8 percent to Rs 72 crore.
- Net profit up 14% at Rs 16 crore.
- Ebitda up 1.6 percent to Rs 24.1 crore.
- Margin at 33.4 percent versus 34.8 percent.
Motilal Oswal Financial Services (Q4, YoY)
- Revenue down 0.9 percent to Rs 656.6 crore.
- Net profit up 10.5 times to Rs 146.1 crore.
- Net profit aided by lower other expenses and lower investment losses.
- Other expenses lower due to lower bad debts write-off related to Aspire Home Finance.
*Numbers are not comparable
Corrects GNA Axles’ Ebitda and Margin details.
Stocks To Watch: DHFL, GAIL, Reliance Industries, Tata Steel
- SRF: Signed a business transfer agreement with DSM India Pvt. Ltd. for divestment of their engineering plastics business.
- Captain Polyplast: Inaugurated new manufacturing plant at Kurnool, Andhra Pradesh.
- Larsen & Toubro: Board approved merger with L&T Shipbuilding Ltd. (a wholly-owned subsidiary).
- L&T Financial Services: Board approved the offer and issuance of cumulative compulsorily redeemable non-convertible preference shares for an amount of up to Rs. 195 crore on a private placement basis.
- Welspun India: Order sanctioning the scheme of amalgamation of Prasert Multiventure Pvt. Ltd. with company was pronounced by NCLT Ahmedabad Bench.
- Texmaco Rail & Engineering: allotted 47.85 lakh equity shares shareholders of Bright Power Projects in the ratio of 818:100 i.e. 818 fully paid-up equity shares of the Company against every 100 fully paid-up equity shares of Bright Power.
- Adani Green Energy’s arm commissioned 50 MwAC Solar Power Project in UP, whose PPA is for 25 years. Another arm of Adani Green Energy won bid of setting 250 Mwac wind power project issued by Solar Energy Corporation of India, whose PPA is for 25 years.
- Tata Steel: European Commission’s feedback on JV with Thyssenkrupp said that it is not intending to clear the proposed JV. The company said that it is remain committed to its strategy in Europe and the Indian operations are well positioned to enhance earnings and will continue to pursue deleveraging.
- Reliance Industries intended to close a 330,000 b/d crude unit in India’s Gujarat state for maintenance for two-to-four weeks, Reuters reported, citing two unidentified people in the industry. The Company will also close some secondary units for maintenance. (Bloomberg News).
- Gail said that it has accelerated work for Jagdishpur-Haldia & Bokaro—Dhamra Pipeline project and completed awards worth Rs 10,500 crore for line pipe supply and laying.
- HCL Technologies: Board approved amalgamation of three arms into the company.
- Edelweiss Financial Services: Arm ECL Finance received Rs 1,040 crore from pension fund manager ‘CDPQ’ as investment in form of compulsory convertible debentures and equity shares.
- UPL acquired 26.75 percent stake in ‘Allfresh’ for Rs 9.24 crore. The target company is engaged in procuring and supplying fresh produce.
- SBI Capital Markets confirmed Etihad bid for Jet Airways (Bloomberg News)
- DHFL March Data: Collection Efficiency at 99.3 percent , ECS Return Rate for Housing Loan at 5 percent, Non-Housing Loan at 8 percent and SME Loan at 11 percent. The company said that it has made more than Rs. 30,000 crore of principal and interest payments to its creditors including its fixed deposit holders from Sept. 24 till date.
- PC Jeweller: Company to demerge its export division to separate company – PCJ Gems & Jewellery Ltd. Export division contributed nearly 28.4 percent (Rs 2,690.4 crore) of the revenue in 2017-18. The new company will be listed on the exchanges. The shareholding structure will be the exact replica of the current company. Proposed demerger will enhance value for shareholders.
- SRF: Company to sell its engineering plastics division to DSM India (wholly-owned subsidiary of Royal DSM Netherlands) for Rs 320 crore. Sale is expected to complete within six months. The division contributed Rs 209 crore (4.5 percent) to the total revenue of the company in 2017-18.
- Welspun Corp: NCLT sanctioned the scheme of arrangement between Welspun Pipes and Welspun Corp.
- Shankara Building Products: Company started one new retail store in Bangalore measuring 5,000 square feet. Further, it has decided to close retail stores in Rajkot, Surat, Baroda, Nizamabad, Anakapalli and Sindhanoor. Some of these stores are not a part of company’s immediate geographic focus. These stores contributed only 1.32 percent of retail sales for March quarter. The net store count after this will stand at 129 stores spread over 5.5 lakh square feet.
Key Events To Watch This Week
- 5:30 p.m.: India April consumer price inflation YoY; Bloomberg estimates at 2.98 percent (prior 2.86 percent).
- Japan balance of payments is due Tuesday.
- China industrial production and retail sales are slated for Wednesday, same day as U.S. retail sales and industrial production.
- Bank of Indonesia has an interest rate decision on Thursday. It has kept rates on hold this year after six hikes last year and economists are projecting it will join Asia’s shift to dovish monetary policy.
- Australian unemployment is out on Thursday.
- A slew of Federal Reserve policy makers speak: Boston Fed President Eric Rosengren and Fed Vice Chairman Richard Clarida speak at a “Fed Listens” event hosted by the Boston Fed. New York Fed President John Williams speaks at an event in Zurich. Kansas City Fed President Esther George and Richmond Fed President Thomas Barkin also make appearances.
- U.S. Secretary of State Michael Pompeo travels to Russia where he’ll meet with his counterpart Sergei Lavrov.
Commodity Cues: Brent Crude Near $70 Per Barrel
- Brent crude traded 0.14 percent lower at $70.52 a barrel.
- West Texas Intermediate fell 0.6 percent to $61.27 a barrel.
- Gold gained 0.1 percent to $1,287.80 an ounce.
London Metal Exchange
- Copper halted a three-day fall, ended 0.39 percent higher.
- Aluminium ended higher for the second day, up 0.5 percent.
- Nickel halted a three-day decline, ended 1.2 percent higher.
- Lead ended lower for the second day, down 0.7 percent.
- Tin resumed gains after a one-day decline, ended 1.9 percent higher.
- Zinc halted a three-day fall, closed 0.77 percent higher.
Nifty Futures Suggests Stock Losses; Asian Equities Decline
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 11,251 as of 7:25 a.m.
Stocks in Asia fell along with U.S. equity futures, the yuan and Treasury yields as investors awaited details on the counter-measures China has warned it will impose following last week’s escalation in the trade war between the world’s top two economies.
Shares dropped in Shanghai and Seoul, while declines were more limited in Tokyo. Hong Kong is closed Monday for a holiday.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
With inputs from Bloomberg.
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