Dear Customer,
Markets always tend to be interesting with something or the other happening all the time. Our Morning Mantra is released before the opening bell and it includes the market commentary along with Corporate & Global news for the day.
- US stocks edged higher on Monday, with optimism over Greece’s crisis and strong earnings reports pushing the S&P 500 and the Nasdaq Composite in record territory.
| Dow Jones |
18100.4
|
+14.0
|
+0.08%
|
| Dow Futures |
17981.0
|
-22.0
|
-0.12%
|
| Hangseng |
25479.9
|
+75.1
|
+0.30%
|
| Nikkie |
20739.8
|
+88.9
|
+0.43%
|
| SGX Nifty |
8623.5
|
-2.5
|
-0.03%
|
- Asian stocks rose as a weaker yen buoyed Japanese equities and consumer shares advanced.
- Market is expected to open on flattish note and likely to witness some profit booking during the day.
- IOL chemical received USFDA approval for its Ibuprofen plant. Now it can suuply Ibuprofen to US market.
- Sun Pharma has said that due to ongoing halol plant resolution, consolidated revenues would remain flat or would decline in fy16. Also restraints of supply of few products due to halol plant and one time charges for Ranbaxy integration profitability would be adversely impacted. Negative
- Tata Steel may be forced to further reduce assets in its Europe business, hurt by continued challenges due to adverse currency volatility and surging Chinese imports, company mentioned in its annual report
- Bharti in talk with Orange to sell 4 countries operation in Africa.
- Goldman Sachs, Warburg Pincus To Invest Rs 1,500 cr In Piramal Realty
- SpiceJet’s promoter Ajay Singh pledges nearly 34% of his stake in co
| Ultratech Cement - Insti |
- UltraTech Cement (UCL) posted a very good set of numbers for 1QFY16, withbetter-than-expected performance on all parameters. EBITDA at Rs11.5bn was above our as well as consensus estimates on account of better realisation and volume as well as lower operating costs. Volume improved 3.8% YoY whereas realisation increased 3.2% YoY. Operating costs grew at a modest rate of only 2.7% YoY led by lower power and fuel expenses as pet coke prices were down by ~30% in US dollar terms. As a result, EBITDA/mt rose 5.7% YoY to Rs928
|
| Kajaria Ceramics - Insti |
- Despite our below consensus revenue estimate, reported revenue of Kajaria Ceramics (KCL) for 1QFY16 was 3.3% below our estimate. With weak volume growth at 6.4% against 14.0%/12.8% in FY14/FY15, respectively, net revenue grew by a mere 9.3% to Rs5,487mn. Higher operating margin on account of a rise in in-house manufacturing and lower power and gas costs by 168bps aided net profit growth. Growth in blended realisation moderated to 2.5% in 1QFY16 against 5.4% in FY15 and in the wake of weak demand we expect KCL to go for price cut to improve volume. Capacity utlisation decreased from 97.7%/97% YoY/QoQ, respectively, to 94.9%, while the working capital cycle increased to 29 days from 23 days YoY. KCL is expanding its capacity by 26.8% in FY16, the utilisation of which will come under further pressure. As a result, we expect the operating margin to decline to 15.7% in FY16 from 16.9% in 1QFY16. We expect a reduction in Bloomberg FY16 PAT estimate, which is 10% above our estimate. Currently, KCL stock trades close to its higher valuation, and at 24.5x/12.7x FY17E P/E and EV/EBITDA, respectively, there is little room for upside in the near term. With weak demand, likely pressure on margins and deteriorating return ratios, we expect a de-rating of KCL in the near term. We have retained Accumulate rating on KCL with a revised target price of Rs735 (Rs728 earlier), based on 12.0x/23.2 FY17EV/EBITDA and 23.0x P/E respectively.
|
| CCL Products |
- result good. Sales came at 212 cr vs exp 201cr and yoy 175cr Q1 is seasonally weak qtr and q4 is best qtr. As such qoq result not comparable. In last qtr concall company said some despatcg of order got delayed in Vietnam facility which must have been done in Q1 this has led to higher sales in this qtr. EBITDA has also improved substentially both at India and Vietnam Facility to Rs.48cr vs exp 43cr yoy 36cr. Margin came at 23% vs yoy 20.5% PAT came at Rs.30.2cr vs yoy 20.2cr qtr EPs is Rs.2.27.
|
| Federal bank - Insti |
- Federal Bank’s 1QFY16 bottom-line was down 36% YoY on account of slippage of a large corporate loan account in the metal sector worth Rs1.4bn. Excluding this oneoff, loan slippage was in line with our estimate of Rs1.7bn. PAT was also lower on account of MTM (mark-to-market) investment provision of Rs0.5bn. The bank made healthy NPL provisioning for the quarter. As a result, despite a 55bps increase in gross non-performing assets or GNPAs, net non-performing assets or NNPAs increased by only 25bps. Provision coverage ratio was healthy at 80.5%. Net interest income (after adjusting for interest reversal on loan slippage worth Rs160mn) grew 10%. Adjusted net interest margin (NIM) was down 10bps sequentially to 3.2%. Noninterest income grew 24% on the back of healthy traction in forex income and recovery from written-off loan accounts. Growth in fee income was muted at 6%. Operating expenses grew 17% as the bank provided for a wage hike. Deposits grew at a healthy rate of 17%, with the CASA (current account savings account) deposit ratio improving 84bps on a sequential basis to 31.3%. NRE deposits grew 29%, shrugging off market fears. Credit off-take was moderate at 10% on account of muted growth in corporate and gold loans. We have cut our ABV estimates by 3% each for FY16/FY17. We have retained Buy rating on Federal Bank with a target price of Rs89, valuing the stock at 1.65x P/ABV FY17E financials.
|
| Welspun India |
- result marginally ahead of exp. Sales came at 1248cr vs exp 1326cr qoq 1224cr EBITDA came at 360cr vs exp 338cr qoq 344cr yoy 250cr PAT came at 163cr vs exp 156cr qoq 161 yoy 105cr
|
| Hindustan Zinc |
- result ahead of exp. Sales came at 3596cr vs exp 3638cr qoq 4073 yoy 2962cr EBITDA came at 1660cr vs exp 1559cr qoq 1978 yoy 1352cr PAT came at 1921cr vs exp 1620cr qoq 1978cr yoy 1617cr
|
| Tata Coffee |
- Result is not good
- Sales is Rs 380.1 cr vs QOQ Rs 424.4 cr YoY Rs 357.5 cr
- EBITDA is Rs 65.9 cr vs QoQ Rs 96.7 cr YoY Rs 80.4 cr
- PAT is Rs 25.4 cr vs QoQ Rs 39.4 cr YoY Rs 41.8 cr
|
| Kitex Garments |
- result below exp sales came at 97cr qoq 147cr yoy 96cr EBITDA came at 30cr vs qoq 66cr yoy 27cr PAT came at 16cr vs qoq 42cr yoy 14.4cr.
|
| LIC Housing Fin |
- result operationally ahead of exp but Provision also increased so overall result inline. NII came at 658cr vs exp 637cr qoq 649cr yoy 506cr PBP came at 623cr vs exp 597cr qoq 586cr yoy 497cr provision came at 44cr vs qoq 10cr yoy 9cr PAT came at 382cr vs exp 374cr qoq 378cr yoy 322cr.
|
| Sasken |
- result improved qoq but flat yoy. Qtr EPS 4.62
|
| Tinplate |
- company result good. Sales came at Rs.223cr vs qoq 246cr yoy 179cr EBITDA came at 42.78cr vs qoq 31.64cr yoy 32.78cr Adj PAT came at Rs.17.8cr vs qoq 12.44 yoy 10.63cr Qtr EPS Rs.1.70. At Q1 annualised EPS share is trading at 8.8 PE
|
| Rane Brakes |
|
| Triton Valves |
|
- Result to be Announced (Reported PAT Rs cr)
| Companies |
June’14
|
Mar’15
|
June’15 Exp
|
NBIE
|
| Can Fin Homes Ltd. |
19.0
|
22.9
|
26.1
|
#N/A
|
| Century Plyboards (India) |
25.7
|
48.0
|
40.5
|
#N/A
|
| Edelweiss Financial |
71.8
|
88.4
|
94.8
|
#N/A
|
| Eicher Motors Ltd. |
178.5
|
195.3
|
227.2
|
#N/A
|
| HDFC Bank Ltd. |
2233.0
|
2806.9
|
2732.2
|
2822.1
|
| Hindustan Unilever Ltd. |
1056.9
|
1018.1
|
1109.9
|
#N/A
|
| Honeywell Automation |
28.6
|
7.1
|
32.7
|
#N/A
|
| Indiabulls Housing Fin |
423.8
|
551.0
|
na
|
#N/A
|
| Idea Cellular Ltd. |
728.2
|
941.8
|
911.3
|
#N/A
|
| Infosys Ltd. |
2886.0
|
3097.0
|
3020.3
|
3073
|
| Maharashtra Scooters |
0.9
|
3.5
|
na
|
#N/A
|
| Rane Engine Valve Ltd. |
-0.1
|
27.1
|
na
|
#N/A
|
| Sanofi India Ltd. |
57.5
|
64.5
|
60.5
|
#N/A
|
| Supreme Petrochem Ltd. |
7.7
|
20.5
|
na
|
#N/A
|
| Tata Sponge Iron Ltd. |
44.3
|
8.6
|
14.3
|
#N/A
|
| Welspun Corp Ltd. |
-37.7
|
143.8
|
75.9
|
#N/A
|
| Whirlpool Of India Ltd. |
83.0
|
55.3
|
95.0
|
#N/A
|
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