DAILY MARKET AND SENTIMENTS OUTLOOK- 13 AUG, 2015

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.

 

• U.S. stocks closed mostly higher on Wednesday, recovering from sharp intraday declines as gains in energy offset earlier pressures from growth concerns.

Dow Jones	17402.5	-0.3	0.00%
Dow Futures	17379.0	+12.0	0.07%
Hangseng	23924.0	+7.9	0.03%
Nikkie	20478.5	+85.7	0.42%
SGX Nifty	8389.5	+12.5	0.15%

 

• Asian stocks fell for a third day, with the regional benchmark index extending a seven-month low, as investors continued to weigh the impact of China’s shock currency devaluation.
• Market is expected to open on flattish note and likely to remain range bound during the day.
• The government on Wednesday increased the import duty on base metal items made of iron, steel, copper, nickel and aluminum by 2.5 percentage points
• July CPI  came at 3.78% vs Exp 4.40% mom 5.4% positive for Bank as it increases chance of rate cut
• Jully IIP came at 3.8% vs Exp 3.5% mom 2.70%
• Adani Port  to be included in NIFTY
• Government's claim from Nestle for selling "defective and hazardous" Maggi noodles may exceed Rs 640 crore as it is tabulating further damages to be sought, even as the company termed the class action suit as disappointing and an unprecedented step. 
• Government will sell 10 % stake in Coal India through a public offer, which could fetch about Rs 23,400 crore to the exchequer. 
• Tata Steel Ltd is continuing discussions to sell its loss-making long-products business in Europe, after talks with Swiss-based Klesch Group failed. 
• State Bank of India has ruled out merging its credit card subsidiary into the bank or buying out its partner GE that has decided to exit the joint venture. 
• Adani Group, have approved the proposal to raise up to Rs 6,000 crore through issuance of securities to sustain rapid business growth. 
• Adani Ports and Special Economic Zone Ltd said that its shareholders have approved a proposal to raise funds up to Rs 10,000 crore through securities. 
• Indusind  bank raised Rs 752 crore from promoters by way of preferential issue at Rs 857.20. With this issue, the bank has raised a total of Rs 5081 crores in a month by issuing shares to qualified institutional investors and preferential shares to promoters. 

 

• Results Announced

 

Cadila Healthcare (Inst)	(CHL) 1QFY16 reported revenue of Rs25bn was up 22%/9% YoY/QoQ, respectively, but other operating income was higher at Rs1.4bn compared to Rs0.4bn in 4QFY15 as it included income from the sale of dossiers amounting to US$10.5mn and adjusting for this reported revenue was in line with our/Bloomberg consensus estimates. Reported EBITDA of Rs 6bn was 15%/16% above our/Bloomberg consensus estimates, respectively. However, reported PAT of Rs3.5bn was down 1% each compared to our/Bloomberg consensus estimates on account of a higher tax rate for the quarter. We continue to remain sanguine on the US business growth, given the elevated drug filings/approvals and all this coupled with a likely recovery in domestic business.
Ashok Leyland	Result ahead of Expectation Sales came at 3775cr vs Exp 3711 EBITDA came at 388cr vs Exp 320cr PAT came at 159cr vs Exp 117cr
Jindal Steel & Power Ltd.	Result ahead of exp Sales is Rs4426.3 cr vs exp of Rs 4902.5cr QoQ Rs 4481cr YoY Rs 4870.4cr EBITDA is Rs 1018 cr vs exp of Rs. 828cr QoQ Rs 1047.6cr YoY Rs 1629cr PAT came negative Rs 339.3cr vs exp negative Rs. 480cr. Negative QoQ Rs 519.3cr. YoY Rs 418.1cr
Subex result	Result improved qoq but declined yoy.  Sales came at 73.51 cr vs qoq 112cr vs yoy 65.1cr EBITDA before Fx loss came at 10.38cr vs qoq 39.6cr vs yoy 3.89cr PAT came at loss of 4.75cr qoq 14.4cr vs  yoy loss of 20.6cr lower loss is due to write back of interest expense and higher EBITDA. Subex Management has guided for 7-8% revenue growth and some margin expansion. Company has substantial amount of FCCB outstanding with conversion price of Rs.13. The diluted equity post conversion of equity will be 534cr and based on that company should do Rs.1.5 EPS in FY17. At current price share is trading at 10.7 PE
Balmer Lawries Co Ltd	Result improved Sales came at 2742cr vs yoy 716cr qoq 604cr EBITDA came at 50cr vs yoy 35cr qoq 69cr PAT came at 33cr vs yoy 25cr qoq 69cr
Indian Hotel	Result improved
Plastiblen India	Result improved
Dolphin offshore	Result improved
Timken India	Result improved Sales came at 262cr vs qoq 232cr yoy 226cr EBITDA came at 45cr vs qoq 31.1cr yoy 42cr PAT came at 27cr vs qoq 17cr yoy 26cr
Kovai Medical	Result improved
Rico Auto Industries	Result improved Net sales came at 245cr vs 227cr qoq & 346cr yoy EBIDTA at 21.7cr vs 9.2cr qoq and 30cr yoy PAT at 4.3cr vs -7.2cr qoq & -1.3cr yoy
Career Point	Result improved
Cimmco Ltd	Result improved
Lotus Eye Hospital	Result has improved
Zuari Agro	Result has improved YoY
Jubilant Inds.	Result has improved
Cigniti Technology	Result improved Sales came at 130cr vs qoq 117cr yoy 77cr EBITDA came at 19.5cr vs qoq 9.6cr yoy 7.6cr PAT came at 10.7cr vs qoq 5.3cr yoy 5.6cr Qtr EPS rs.4.3
MOIL Ltd	Result is improved Sales is Rs 184.6 cr vs exp of Rs 179.3cr QoQ Rs 161.4cr YoY Rs 200.6cr EBITDA is Rs 82.2 cr vs exp of Rs. 74.7cr QoQ Rs 75.5cr YoY Rs 98.5cr PAT is Rs 89.9 cr vs exp Rs.82.8cr. QoQ Rs 102.5cr. YoY Rs 106.1cr
Mukand Ltd	Result ok Sales is Rs 675.5 cr vs  QoQ Rs 650.1cr YoY Rs 673.2cr EBITDA is Rs 76.6cr vs QoQ Rs 83.3cr YoY Rs 73.6cr PAT came negative Rs 5.6 cr vs QoQ negative Rs 4.1cr. YoY Rs 0.4cr
Waterbase	Result is improved
KCP Ltd.	Result good Sales is Rs 203.1 cr vs  QoQ Rs 163.2cr YoY Rs 134.6cr EBITDA is Rs 55.4cr vs QoQ Rs 34cr YoY Rs 5.3cr PAT is Rs 34.2 cr vs QoQ Rs 13.5cr. YoY negative Rs 7.5cr
Abbott India	Result is good Sales is Rs 623.2 cr vs QoQ Rs 581 cr YoY Rs 517 cr EBITDA is Rs 96 cr vs QoQ Rs 68 cr YoY Rs 70 cr PAT is Rs 68.6 cr vs QoQ Rs 50 cr YoY Rs 51 cr The stock is trading at 36.5x FY16E earnings
Great Easter Shipping	Result good Revenue came at 938cr vs Exp 946cr qoq 876cr yoy 803cr EBITDA came at 504cr vs Exp 363cr qoq 318cr yoy 370cr Adj PAT came at 260cr vs Exp 177cr qoq 137cr yoy 223cr
Ruchira Paper	Result good
TVS Srichakra	Result good Sales came at 499cr vs qoq 460cr yoy 447cr EBITDA came at 83cr vs qoq 64cr you 40cr PAT came at 49cr vs qoq 34cr yoy 17cr Qtr EPS Rs.64
Shipping Corporation	Result good Sales came at 1046cr vs qoq 1028cr yoy 1057cr EBITDA came at 326cr vs qoq 283cr yoy 178cr PAT came at 164cr vs qoq 101cr yoy 50cr Qtr EPS Rs.3.5
Merck	Result is in-line Sales is Rs 240.8 cr vs exp of Rs 239 cr. QoQ Rs 190 cr YoY Rs 233 cr EBITDA is Rs 26.4 cr vs exp of Rs 29.5 cr. QoQ Rs 12.9 cr YoY Rs 30 cr PAT is Rs 16.9 cr vs exp of Rs 16 cr. QoQ Rs 9.6 cr YoY Rs 21 cr The stock is trading at 23.8x FY16E earnings
Natco Pharma	Result is broadly in-line though sales is below expectations Sales is Rs 186 cr vs exp of Rs 229.6 cr. QoQ Rs 191 cr YoY Rs 191 cr EBITDA is Rs 60.6 cr vs exp of Rs 57 cr. QoQ Rs 50 cr YoY Rs 57 cr PAT is Rs 34 cr vs exp of Rs 32 cr. QoQ Rs 54.4 cr YoY Rs 33.5 cr The stock is trading at 35.2x FY16E earnings
Aurobindo Pharma	Result is broadly in-line Sales is Rs 3263.7 cr vs exp of Rs 3347.5 cr. QoQ Rs 3144 cr YoY Rs 2895 cr EBITDA is Rs 724.6 cr vs exp of Rs 704 cr. QoQ Rs 656 cr YoY Rs 658 cr PAT is Rs 432 cr (post Rs 25.6 cr forex loss) vs exp of Rs 444 cr. QoQ Rs 404 cr YoY Rs 415 cr The stock is trading at 21.6x on FY16E earnings
Indian Cement	Result inline Sales came at 1071cr vs Exp 1099cr EBITDA came at 199cr vs Exp 198cr AdJ PAt came at 30cr vs Exp 30cr
Simplex Infra	Result inline sales came at 1505cr vs exp 1408cr EBITDA came at 153cr vs Exp 151cr PAT came at 18cr vs exp 12cr Qtr EPS rs.3.61
Aksharchem	Result ok
Time Technoplast	Result ok Sales came lower at 607cr on account of decline in product price vs qoq 670cr yoy 570cr EBITDA came at 85cr vs qoq 86cr yoy 79cr PAT came at 28cr vs qoq 36cr ( on account of lower Dep)  yoy 21cr Qtr EPS Rs.1.35
Anant Raj	Result ok. Sales came at 82cr vs qoq 145 yoy 71cr EBITDA came at 29cr vs qoq 35cr yoy 23cr PAT came at 12cr vs qoq 17cr yoy 11cr
Rane Holdings Ltd	Result ok Net sales came at 544cr vs 667cr qoq & 507cr yoy EBIDTA at 53 cr vs 68cr qoq and 54cr yoy PAT at 22cr vs 28 cr qoq & 15cr yoy⁠⁠⁠⁠
Reliance Infra	Result ok Sales came at 4267cr vs qoq 4424cr yoy 4135cr EBITDA came at 749cr qoq 722cr yoy 685cr PAT came at 401cr vs qoq 459cr yoy 457cr
Zicom Electronic	Result ok
JBM Auto	Result ok
Aditya Birla Nuvo	Result ok Industrance business saw some decline but all other business has shown improvement
Honda Siel	Result ok Though Margin and profit increased but Sales declined YoY Sales came at 150cr vs yoy 160.45 qoq 182cr EBITDA came at 19.13cr vs yoy 15.08cr qoq 21.45cr PAT came at 10.87cr vs yoy 7.42cr qoq 14.45cr Qtr EPS is Rs.10.73
City Union Bank	Result ok NII stood 224at cr vs 209cr exp, 205cr qoq & 187cr yoy Non Interest Income at 105cr vs 105cr qoq & 111cr yoy PBP at cr vs 197cr exp, 179cr qoq & 173cr yoy Prov at 45cr vs 58cr qoq & 43cr yoy PAT at 112cr vs 106cr exp, 99cr qoq & 99cr yoy GNPA 359cr vs 336cr qoq at 2.01% vs 1.86% qoq NNPA 234cr vs 233cr 2.24qoq at 1.32% vs 1.30% qoq
Talbros Automotive Components Ltd	Result ok Net sales came at 96cr vs 98cr qoq & 92cr yoy EBIDTA at 9.5cr vs 8cr qoq and 10cr yoy PAT at 2.2cr vs 4.2cr qoq(inc exp. Gain of  1.8cr) & 2.9cr yoy
Pennar Ind	Result ok sales came at 274cr vs qoq 367cr yoy 290cr EBITDA came at 26cr vs qoq 45cr yoy 12.5cr PAT came at 6.6cr vs qoq 16.02cr yoy 5.81cr Qtr EPS Rs.0.55
Titaghar wagon	Result ok
Ruby Mill	Result ok
Albert David	Result ok
Asahi Songwon Colours	Result ok
Dharamsi Moraji	Result ok
Coal India Ltd.	Result ok Sales is Rs 18955.8 cr vs exp of Rs 19311.1cr QoQ Rs 20114.2cr YoY Rs 17799.5cr EBITDA is Rs 4944.2 cr vs exp of Rs. 4673.3cr QoQ Rs 5964.8cr YoY Rs 4280.9cr PAT is Rs 3764.3 cr vs exp Rs.4112.2cr. QoQ Rs 4238.6cr. YoY Rs 4033.3cr
Setco Automotive Ltd	Result flat Net sales came at 104cr vs 130cr qoq & 95cr yoy EBIDTA at 11cr vs 13cr qoq and 11cr yoy PAT at 4.25cr vs 3cr qoq & 4.5cr yoy
Wheels India Ltd.	Result remains flat Net sales came at 456cr vs 460cr qoq & 445cr yoy EBIDTA at 41cr vs 36cr qoq and 39cr yoy PAT at 7.8cr vs 6.8cr qoq & 7.8cr yoy
Bimetal Bearings Ltd.	Result remains flat Net sales came at 35.5cr vs 38.7cr qoq & 34.2cr yoy EBIDTA at 1.84 cr vs 2.5cr qoq and .8 cr yoy PAT at 1.3cr vs 3.1 cr yoy & .4cr qoq
Wonderala Holiday	Result flat
Sanghvi Movers	Result flat qoq but improved yoy
Repro India	Result Flat qoq Valuation costly
Voltas Result	Result is marginally below expectation Sales came at 1595cr vs Exp 1827cr EBITDA came at 131cr vs Exp 147cr PAT came at 111cr vs Exp 117cr
Speciality restaurant	Result below expectation sales came at 79cr vs exp 79cr EBITDA came at 7.22cr vs exp 8.67cr PAT came at 2.26cr vs exp 2.77cr Qtr EPS Rs.0.48
Dhanuka Agri	Result is below expectations Sales is Rs 180.4 cr vs exp of Rs 188.5 cr. QoQ Rs 150.2 cr YoY Rs 172.9 cr EBITDA is Rs 25 cr vs exp of Rs 30.6 cr. QoQ Rs 27.5 cr YoY rs 28.4 cr PAT is Rs 18.6 cr vs exp of Rs 22.3 cr. QoQ Rs 21.9 cr YoY rs 20.5 cr The stock is trading at 23.1x on FY16E earnings
Oil India	Result is below expectations
VST Ind	Result not good Sales came at 190cr vs qoq 217cr yoy 213cr EBITDA Came at 51cr vs qoq 65cr yoy 69cr  PAT came at 31cr vs qoq 41cr yoy 43cr
Gokaldas Export	Result not good. Sales came at 246cr vs qoq 237cr yoy 258cr EBITDA came at negative 21cr vs qoq 4.5cr yoy 4.18cr PAT came at negative 31cr vs qoq 35cr yoy negative 3cr
Asian Oil Filed	Result not good
Balrampur chini	Result not good
Maxwell India	Result not good
DFM Foods	Result not good sales came at 68cr vs qoq 85cr yoy 62cr EBITDA came at 6.05cr vs qoq 10.5cr yoy 7.2cr PAT came at 2.09cr vs qoq 6cr yoy 2.71cr Qtr EPS Rs.2.1
Bank of Maharashtra	Result declined NII stood at 1023cr vs 971cr qoq & 915cr yoy Noninterest Income 205cr vs 382cr qoq and 190cr yoy PBP at 610cr vs 676cr qoq & 471cr yoy Prov at 484cr vs 432cr qoq & 236cr yoy  PAT at 59.4cr vs 113cr qoq & 118cr yoy GNPA 7575cr vs 6402cr qoq at 7.86% vs 6.33% qoq NNPA 4708cr vs 7127cr qoq at 5.04% vs 4.19% qoq
National Aluminium Co Ltd.	Result is declining Sales is Rs 1470.1cr vs exp of Rs 1694.9cr QoQ Rs 1778.5cr YoY Rs 1651.3cr EBITDA is Rs 223.7 cr vs exp of Rs. 339.6cr QoQ Rs 428cr YoY Rs 276.5cr PAT is Rs 163.4 cr vs exp Rs.255.3cr. QoQ Rs 354.9cr. YoY Rs 271cr
Kopran Result	Result is declining
Bafna Pharma	Result is declining
NFL Result	Result has declined YoY
Ballarpur Ind	Result declining Sales came at 1233cr vs qoq 1231cr yoy 1198cr EBITDA came at 209cr vs qoq 220 yoy 235cr PAT came at 2.63cr vs qoq 27cr yoy 0.4cr
Roto Pump	Result is declining
Dhanlakshmi Bank	Result declined NII stood at 83cr vs 77cr qoq & 76cr yoy Noninterest Income 13cr vs 22cr qoq and 17 yoy PBP at 13cr vs -16cr qoq & 10cr yoy Prov at 35cr vs 251cr qoq & 7cr yoy   PAT at -23cr vs -267cr qoq & 3cr yoy GNPA 627cr vs 558cr qoq at 8.45% vs 7.00% qoq NNPA 300cr vs 253cr qoq at 4.29% vs 3.29% qoq
Emco Result	Result is declining
Semac Result	Result is declining
Man Infra	Result continue to remain weak
Jayswal Neco	Result is declining
Emkay Global Financial Services Ltd.	Result declined Income from operations came at 22.28cr vs 27.63cr qoq & 25.5cr yoy PAT at 2.8cr vs -10 cr qoq(inc exp. Item 16.9cr) & 3.7cr yoy
Hotel Leela	Result continue to remain weak

 

 

 

 

• Result to be Announced (Reported PAT Rs cr)

13/8/2015	Jun'14	Mar'15	Exp	NB Insti
Ahluwalia Contracts (India) Ltd.	16.89	17.43	13.40	na
Ajanta Pharma Ltd.	58.72	84.31	76.20	na
Amrutanjan Health Care Ltd.	0.73	5.87	na	na
Asian Granito India Ltd.	3.35	4.35	na	na
Bal Pharma Ltd.	0.98	0.56	na	na
Borax Morarji Ltd.	-2.03	-0.83	na	na
Cosmo Films Ltd.	3.90	14.32	na	na
DCM Ltd.	-11.28	17.70	na	na
Diamond Power Infrastructure Ltd.	36.47	-230.44