DAILY MARKET AND SENTIMENTS OUTLOOK, 14TH 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 finished little changed Thursday, pausing following two days of tumult spurred by fears over Chinese growth.

Dow Jones	17408.3	+5.7	+0.03%
Dow Futures	17367.0	-2.0	-0.01%
Hangseng	24067.0	+48.2	+0.20%
Nikkie	20557.2	-38.3	-0.19%
SGX Nifty	8423.5	+20.5	+0.24%

 

• Asian stocks fluctuated, with the regional benchmark index headed for a fourth weekly decline, as investors weighed an increase in China’s yuan reference rate and a slide in energy shares on a drop in oil.
• The People's Bank of China's (PBOC) decision to set the midpoint rate for the yuan at 6.3975, slightly lower than the previous day's close of 6.3990. The move broke the central bank's devaluation pattern since Tuesday, and in line with the PBOC's announcement on Thursday that there was no basis for continued currency depreciation.
• Market is expected to open on positive note and likely to witness some positive move during the day.
• Torrent Pharma has got USFDA approval for Pfizer’s gDetrol
• Hathway Cable and Datacom has received FIPB approval to increase foreign investment limit in the firm from the existing 49% to 74% under the automatic route.
• Kaya Limited, the skin care maker from the Marico group will be listed on the stock exchanges Today
• Glenmark Pharmaceuticals will be added to the MSCI Emerging Markets Index. Indiabulls Housing Finance (India) will be added to MSCI ACWI Value Index.
• Natco Pharma gets FIPB approval to raise FII cap to 31.5% from 24%
• Bombay High Court ruled in favour of Nestle India. However Maggi Noodles won't be visible on shop shelves just yet: Nestle India has been given six weeks to prove the product is safe.

 

• Results Announced

Natco Pharma - Insti	Operating Performance In Line, Earnings Impacted By Higher Tax Natco  Pharma’s (NPL) 1QFY16 reported revenue of Rs2.2bn, up 7%/11% YoY/QoQ, respectively, was 5%/3% below our/Bloomberg consensus estimates, respectively. EBITDA of Rs575mn was 5% below our estimate but 1% above Bloomberg consensus estimate, while operating performance was in line with expectations. EBITDA margin of 25.7% was in line with our estimate but 80bps higher compared to Bloomberg consensus estimate. Reported PAT of Rs282mn was 20%/13% below our/Bloomberg consensus estimates, respectively, on account of a higher tax rate for the quarter, which stood at 28.6% versus 21.4% in 1QFY15. We are more excited about NPL’s strong US drug pipeline and do not see any risk to its earnings over the next four-five years. We continue to remain sanguine on NPL’s research and development-driven US drug pipe line and believe it has enough levers to keep growth momentum intact over the medium term, even beyond Copaxone. Accordingly, we have retained  Accumulate rating on NPL with an unchanged target price of Rs2,279, valuing  its base business (including generic Copaxone tablets) at 17x FY17E EPS and includes Rs222 for  Para-IV pipeline.
La Opala	Result ahead of Expectation
Kilburn Eng	result improved
Jubilant Foodworks	Result is below expectations Net Sales is Rs 570.6 cr vs exp of Rs 598.6 cr. QoQ Rs 542 cr YoY Rs 476.7 cr EBITDA is Rs 70.5 cr vs exp of Rs 78 cr. QoQ Rs 70 cr YoY Rs 59 cr PAT is Rs 29.5 cr vs exp of Rs 36 cr. QoQ Rs 31.5 cr YoY Rs 27.7 cr SSSG 4.6% vs Exp 8% The stock is trading at 65x on FY16E earnings
Asian Granito	result improved qoq sales came at 193cr vs qoq 236cr yoy 176cr EBITDA came at 14.5cr vs qoq 11.8cr yoy 16.96cr EBITDA margin came at 7.5% vs qoq 5% yoy 9.6% PAT came at 3.32cr vs qoq 4.35cr yoy 3.35cr. Qoq PAT declined on account of lower depreciation.
Bajaj Hindustan	Result improved on account of Rs.345cr subsidy provided by UP Govt  accounted in the quarter and become PAT positive.
Tata Power	result Ahead of expectation Sales came at Rs.9104cr vs Exp 8610cr EBITDA came at 2181cr vs Exp 1844cr PAT came at 241cr vs Exp 180cr
Tide Water Oi	result improved
IOC	Result ahead of Expectation Sales came at 101008cr vs Exp 102314cr EBITDA came at 10100cr vs Exp 6541cr PAT cmae at 6435cr vs Exp 4012cr
IRB Infra	Result marginally ahead of exp
Ricoh India	Result ok Sales came at 442cr vs yoy 226cr qoq 627cr EBITDA came at 28.4cr vs yoy 6.08cr qoq 81.32cr PAT came at 0.41cr vs yoy loss of Rs.15.3cr qoq 41.48cr
GVK Power	result inline and continue to remain weak Sales came at 999cr vs Exp 855cr EBITDA came at 358cr vs Exp 350cr PAT came at negative 124cr vs Exp negative 121cr
Lakshmi Electrical Control system	result ok
Alkyl Amines	Result flat. sales came at 126cr vs qoq 116cr yoy 124cr EBITDA came at 23.1cr vs qoq 21.4cr yoy 23.6cr PAT came at Rs.12cr vs qoq 12cr yoy 12.4cr
Ajanta Pharma	Result is marginally below expectations Net Sales is Rs 335 cr vs exp of Rs 349 cr. QoQ Rs 360 cr YoY Rs 281 cr EBITDA is Rs 110 cr vs exp of Rs 118 cr. QoQ Rs 141 cr YoY Rs 90 cr PAT is Rs 81 cr (due to higher other income – dividend received from subsidiary) vs exp of Rs 76 cr. QoQ Rs 91 cr YoY Rs 59 cr The stock is trading at 37.9x on FY16E earnings
PC Jeweller	result ok sales came at 1511cr vs qoq 2020cr yoy 1323cr EBITDA came at 161cr vs qoq 207cr yoy 148cr PAT came at 83cr vs qoq 120cr yoy 70cr
Sona Koyo Steering Systems	Result remians flat Net sales came at 372cr vs 417cr qoq & 355cr yoy EBIDTA at 44cr vs 68cr qoq and 45cr yoy PAT at 4.14cr vs 18.6cr qoq & 3.58cr yoy
Kohinoor Food	result ok
Ahluwalia Construction	result ok Sales came at 264cr vs qoq 313cr yoy 238cr EBITSA came at 32cr vs qoq 28cr yoy 33cr PAT came at 19cr vs qoq 17cr yoy 17cr. QTR EPS Rs.2.72
Cosmos Film	result improved sales came at 408cr vs qoq 390cr yoy 441cr EBITDA came at 48cr vs qoq 35cr yoy 26cr PAT came at 18.4cr vs qoq 14.3cr yoy 3.90cr
DLF	result ahead of exp sales came at 2231cr vs exp 2231cr qoq 1953cr yoy 1725cr EBITDA came at 827cr vs Exp 755cr qoq 695cr yoy 737cr PAT came at 158cr vs exp 150cr qoq 171cr yoy128cr qoq lower profit is on higher finance cost
Infinite computer solution	result  improved qoq Sales came at 469.5 cr vs qoq 424cr vs yoy 388cr EBITDA came at 38.2 cr vs qoq 24.14cr vs yoy 47.28cr  PAT came at 25.4cr qoq 10.2cr vs  yoy 26.83cr qtr EPS came at Rs.6.35
Lloyd Electrical	result improved Sales came at 729cr vs yoy 533cr qoq 618cr EBITDA came at 74cr vs yoy 55cr qoq 101cr PAT came at 34cr vs yoy 22cr qoq 50cr QTR EPS came at Rs.9.68
Phoenix Mill	result ahead of exp sales came at 396cr va exp 332cr WBITDA came at 185cr vs exp 140cr PAT came at Rs.26cr vs exp 26cr
Amrutanjan Health	Result has improved YoY Sales is Rs 28.7 cr vs QoQ Rs 48.5 cr YoY Rs 25.5 cr EBITDA is Rs 2.1 cr vs QoQ Rs 8.8 cr YoY Rs 0.3 cr PAT is Rs 1.7 cr vs QoQ Rs 5.9 cr YoY Rs 0.7 cr The stock is trading at 30.4x FY16E earnings
Mandhana Ind	result ok
NBCC	result improved Sales came at 1147cr vs yoy 837cr qpq 1788cr EBITDA came at 41cr vs yoy 31cr qoq 165cr Pat Came at 44cr vs yoy 33.5cr qo1 134cr
Mayur Uniquoters	result improved Sales came at 126cr vs Exp 133 qoq 117cr yoy 121cr EBITDA came at 32cr vs exp 28.4cr qoq 26.4cr yoy 24.4cr PAT came at 19.4cr vs exp 17.6cr qoq 18.3cr yoy 15cr
Claris Life	result good sales came at 187cr vs qoq 155 yoy 151cr EBITDA came at 49cr vs qoq 24cr yoy 28cr PAT came at 20cr vs qoq 10cr yoy 15cr QTR EPS Rs.3.72
Jindal Poly	result good Sales came at 720cr vs qoq 612cr yoy 667cr EBITDA came at 155cr vs qoq 94 yoy 49cr PAT came at 108cr vs qoq 54cr yoy 49cr Qtr EPS is Rs.25.5
ICRA - Insti	ACCUMULATE-1QFY16 Result Update- Performance In Line, But Higher Tax Outgo Hurts PAT: Following a 16.5% growth in rating revenue, ICRA posted a healthy 12.9% rise in 1QFY16 net revenue to Rs770mn, 1.1%/0.9% above our/Bloomberg estimates, respectively. Despite subdued activity in debt market, rating revenue grew by a strong 16.5% and EBIT margin of rating segment improved 63bps to 29.4%. Consulting and information technology-related businesses reported subdued 4%/(0.4)% growth, respectively, while the non-rating segment  posted a 167bps decline in EBIT margin, thereby exerting pressure on overall margin. Consolidated operating margin declined 28bps to 24.7%, 101bps/139bps below our/Bloomberg estimates, respectively. ICRA’s performance is much better than its peers Credit Analysis and Research (CARE) and Crisil in 1QFY16. ICRA’s rating revenue grew 16.5% compared to 13.0%/3.0% growth/decline in CARE/Crisil’s rating revenue, respectively.
Panace Biotech	Result is declining Sales is Rs 120.8 cr vs QoQ Rs 218 cr YoY Rs 131.5 cr EBITDA is Rs 7.8 cr vs QoQ Rs 14.2 cr YoY Rs 31 cr Net loss is Rs 36.4 cr vs QoQ loss of Rs 31.4 cr YoY loss of Rs 23.5 cr
Eimco Elecon	result remain flat
Bal Pharma	Result flat
Essar Port	Result ok
Jyoti Structure	result not good
Vishnu Chemical	Result improved yoy but declined qoq Sales came at 109cr vs qoq 120cr yoy 83cr EBITDA came at 20cr vs qoq 23cr yoy 13cr PAT came at 6.4cr vs qoq 9.8cr yoy 2.23cr QTR EPS is Rs.4.51
Vadilal Ind	Result improved
Stovac	result improved
Sunteck Reality	result ok
Orchid Chem	result continue to remain weak
IOL Chemical	result continue to remain weak company reported loss of Rs.18cr
Tara Jewel	result declining
Manugraph	result continue to remain weak
Bhansali Eng	result improved
Kanpur Plastic	result good
MMTC	result not good
Gujarat Apollo	result continue to remain weak
DCM Ltd	Result not good
Shree Renuka Sugar	result continue to remain weak
Diamond Power	result declining
ONGC	Result below expectation
Eros Int	Result declining
Shreyas Shipping	Result declining qoq one of the reason is dry docking of one of the ship. Sales came at 136cr vs qoq 145cr yoy 122cr EBITDA came at 21.1cr vs qoq 43.36cr yoy 17.01cr PAT cmae at 16.10cr vs qoq 36.44cr yoy 11.08cr Qtr EPS Rs.7.33
Kaveri Seeds	Result is below expectations Net Sales is Rs 664 cr vs exp of Rs 881 cr. QoQ Rs 40 cr YoY Rs 827 cr EBITDA is Rs 226 cr vs exp of Rs 248 cr. QoQ Rs 8 cr YoY Rs 232 cr PAT is Rs 218 cr vs exp of Rs 235 cr. QoQ Rs 1.3 cr YoY Rs 230 cr The stock is trading at 13.7x on FY16E earnings
Smart Link	result continue to remain weak
Shree Digvijay Cement	result declining
Surya Roshni	result remain flat
Unitech	result continue to remain weak
Page inds.	result below expectation Sales came at 438cr vs Exp 486cr EBITDA came at 102cr vs Exp 111cr PAT came at 63cr vs Exp 69cr
Hinduja Global	result Not good Sales came at 738cr vs qoq 707cr yoy 666cr EBITDA came at 54cr vs qoq 69cr yoy 77cr PAT came at 16.16cr vs qoq 41cr yoy 32cr
Ingersoll Rand	result declining Sales came at 141cr vs qoq 146cr yoy 145cr EBITDA came at 1.87cr qoq 2.76cr yoy 9.56cr PAT came at 11.46cr vs qoq 17.62cr yoy 13.05cr
Micr Electronic	result decline
Symphony	Result below expectation Sales came at 124cr vs Exp 187cr EBITDA came at 30cr vs Exp 60cr PAT came at 22cr vs Exp 43cr
Global Offshore	result declining

 

 

• Result to be Announced (Reported PAT Rs cr)

14/8/2015	Jun'14	Mar'15	Exp	NB Insti
Acrysil Ltd.	3.3	1.4	3.3	na
Akzo Nobel India Ltd.	55.2	44.6	61.3	na
Amara Raja Batteries Ltd.	106.0	102.3	117.3	na
Amtek Auto Ltd.	86.1	129.8	na	na
Archidply Industries Ltd.	1.3	1.4	na	na
BEML Ltd.	-95.5	168.9	6.5	na
Bharat Petroleum Corporation Ltd.	1216.3	2852.9	1861.8	na
Cipla Ltd.	294.6	259.7	456.2	463.3
DCM Shriram Industries  Ltd.	13.6	-6.8	na	na
DCW Ltd.	7.5	17.6	na	na
Deep Industries Ltd.	5.8	4.5	na	na
Dredging Corporation Of India Ltd.	11.1	40.8	na	na
Dynamatic Technologies Ltd.	-11.0	5.0	6.1	na
Elecon Engineering Company Ltd.	1.2	22.8	4.0	na
Ess Dee Aluminium Ltd.	5.5	6.7	na	na
Fluidomat Ltd.	1.0	1.3	na	na
Gajra Bevel Gears Ltd.	-0.1	4.0	na	na
Gujarat Industries Power Company Ltd.	48.6	16.0	50.0	na
Orient Green Power Company Ltd.	-26.1	-111.0	na	na
HBL Power Systems Ltd.	-17.3	8.7	na	na
Hindalco Industries Ltd.	327.5	159.5	143.4