Stocks in Focus on August 11: Key domestic equity benchmarks ended with decent gains after a volatile session on Monday, August 10, 2020. The barometer index, the S&P BSE Sensex, was rose 141.51 points or 0.37% at 38,182.08. The Nifty 50 index added 56.10 points or 0.5% at 11,270.15. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, August 11, 2020. List of such five stocks:
Triggers: There are certain events, like Results Today, IIP, M&M Finance, Minda Industries, Ex-dividend and AGM, which can create positive/negative reactions in the markets. Find them in detail:
Nifty: Adani Ports (variable)
F&O: Motherson Sumi (12:30-3:30 pm), Bosch (12:30-2:30 pm)
Cash: Indoco Remedies, Oracle Fin Services, KRBL, Bajaj Electricals, Star Cement, Shriram City Union, RITES, Galaxy Surfactants, Somany Ceramics, PTC India, JMC Projects, Kopran, Prataap Snacks, Central Bank of India, AIA Eng, Vesuvius India, Symphony, Suven Lifesciences, Metropolis Healthcare, GE Power India, VST Tiller, RCF
M&M Finance: The Rs 3,500 crore rights issue of M&M Finance that opened on July 28, 2020, will close today. Investors will be able to apply for one rights share on every share. The company had set the rights issue price at Rs 50, which was at a steep 76 per cent discount to the prevailing level. July 23 was the record date for the rights issue.
See Zee Business Live TV streaming below:
Minda Industries: The Board of Minda Industries is scheduled to meet today, i.e. August 11, 2020, to consider and decided various matters in connection with the Rights Issue including the terms and conditions such as Issue price, rights entitlement ratio, record date, the timing of the Rights Issue and other related matters. The board has earlier approved the plan to raise Rs 250 crore through the rights issue.
June IIP data: The central government is scheduled to release the IIP growth data for June 2020 today.
AGM: Annual General Meeting of companies, like Bank of India, Bank of Maharashtra, CreditAccess Grameen Ltd, ICICI Securities Ltd, Sonata Software Ltd and Titan Company Ltd, is scheduled to be held today.
Ex-Dividend today: Agro Tech Foods, India Grid Trust, Nucleus Software Exports, Oriental Carbon & Chemicals, and Ponnie Sugars will turn ex-dividend today. The ex-dividend date for stocks is usually set one the business day before the record date.
Agro Tech Foods: Final Dividend – Rs – 3.0000
India Grid: Income Distribution (InvIT)
Nucleus Sorftware: Interim Dividend – Rs – 3.0000
Oriental Carbon: Final Dividend – Rs. – 6.0000
Ponnie Sugars: Dividend – Rs. – 4.0000
Results: These companies, namely Titan, Power Grid, Shree Cement, BoB, Akzo Nobel, Quick Heal, Triveni Engineering (+Buyback), have reported their financial results after the market hours on Monday. Find in details:
Titan: Jewellery-to-eyewear maker Titan on Monday reported a year-on-year loss of Rs 270 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 372 crore in the corresponding quarter in the last financial year. Revenue from operations in the quarter dropped by 62% to Rs 1,862 crore from Rs 4,939 crore posted last year in the same quarter. There was an EBITDA loss of Rs 246 crore in Q1FY21 compared to EBITDA profit of Rs 565 crore posted in Q1FY20. Jewellery sales declined 71% to Rs 1,182 crore in the quarter from Rs 4,047 crore posted last year. The Eyewear sales dropped to Rs 30 crore in Q1FY21 from Rs 149 crore posted in Q1FY20 and watch sales came down to Rs 75 crore from Rs 715 crore posted last year.
Bank of Baroda: The state-owned Bank of Baroda on Monday reported a loss of Rs 864 crore for the quarter ended on June 30, 2020. It posted a net profit of Rs 710 crore in the corresponding quarter last year. Net Interest Income (NII) rose 5% to Rs 6,816 crore in this quarter compared to Rs 6,496 crore posted last year in the same quarter. Net interest margin (NIM) contracted to 2.63% in Q1FY21 from 2.73% posted in Q1FY20. Total provisions increased by 71% to Rs 5,628 crore from Rs 3,285 crore provisioned last year. Gross non-performing assets (NPAs) on quarter-on-quarter basis fell to 9.39% from 9.4% Net non-performing assets dropped to 2.83% from 3.13%. There was a fresh slippage of Rs 2,780 crore in Q1FY21 from a slippage of Rs 3,050 crore posted in March quarter of last financial year. The bank has plans to raise Rs 13,500 crore of additional Capital Via Debt and Equity.
Power Grid: Power Grid on Monday reported an 18.5% year-on-year decline in standalone profit to Rs 1,979 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 2,428 crore in the same quarter last year. Revenue from operations dropped 2% to Rs 8,989 crore from Rs 8,804 crore posted last year. EBITDA stood at Rs 7,877 crore, down 0.3% from Rs 7,879 crore posted last year. The margin contracted to 87.6% in Q1FY21 from 89.7% posted in Q1FY20. The company has given a consolidated one-time rebate of Rs 1,075 crore to DISCOMs and Power Departments of States & Union Territories for passing on to end consumers on account of COVID-19 pandemic against the billing of April’20 and May’20.
Shree Cement: The cement manufacturer on Monday reported a 2% year-on-year rise in profit at Rs 370 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 363 crore in the same quarter last year. Revenue from operations fell 24% to Rs 2,326 crore in the quarter this year as compared to the revenue of Rs 3,036 crore posted last year. EBITDA stood at Rs 700 crore, down 22% from Rs 903 crore posted last year. The margin grew marginally to 30% in Q1FY21 from 29.7% posted in Q1FY20.
Akzo Nobel India Ltd.: Paints and coatings maker Akzo Nobel on Monday reported a year-on-year consolidated net loss of Rs 20.2 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 57 crore in the same quarter last year. Its revenue from operations dropped 64% to Rs 258 crore from Rs 720 crore posted last year. There was an EBITDA loss of Rs 13 crore against an EBITDA profit of Rs 103 crore posted last year.
Quick Heal Tech: Quick Heal on Monday reported a 2x jump in profit at Rs 25 crore for the quarter ended on June 30, 2020. It posted a net profit of Rs 12 crore in the corresponding quarter last year. Revenue from operations increased 28% to Rs 73.5 crore from Rs 57.6 crore posted last year. EBITDA grew 3x to Rs 32 crore from Rs 12.8 crore posted last year. The margin grew to 44% in Q1FY21 from 22% in Q1FY20.
Triveni Engineering and Industries: Triveni Engineering on Monday reported a net profit grew 2.2x (2.2 times) year-on-year at Rs 84 crore for the quarter ended on June 30, 2020. It posted a net profit of Rs 34 crore in the same quarter last year. Revenue from operations grew 32% to Rs 1,224 crore in the quarter this year from a revenue of Rs 925 crore posted last year. EBITDA stood at Rs 155 crore, up 70% from Rs 91 crore posted last year. The margin grew to 12.6% in Q1FY21 against a margin of 10% posted in Q1FY20. Board approved a share buyback of 61.9 lakh shares (2.5% equity stake) at Rs 105 per share aggregating to Rs 65 crore. August 28, 2020, is the record date for the buyback. The buyback price is a 48% premium to the closing prices as on August 10, 2020.
Telecom Stocks in Focus (AGR Update): The Supreme Court on Monday, August 10, 2020, adjourned the hearing on telecom companies under insolvency to August 14, 2020. It directed the government to come prepared with a plan for recovery of dues from the telcos under insolvency.
CONCOR: Inter-Ministerial Group (IMG) met on CONCOR issue through video conferencing, sources. No conclusion could be drawn on the land issue with Indian Railways. Any decision on EoI (Expression of Interest) to be taken up only after clarification from Indian Railways Ministry.
Qualified institutional placements: ICICI Bank, Axis Bank and Intertglobe Aviation
Interglobe Aviation: Interglobe Aviation that operates India’s largest airline company Indigo on Monday said that it will raise up to Rs 4,000 crore through QIP.
ICICI Bank: The private lender ICICI Bank on Monday announced qualified institutional placement (QIP) of equity shares to raise Rs 15,000 crore. The floor price has been set at Res 352.36 per share, while the indicative price range is Rs 355-358 per share.
Axis Bank: The private lender has launched a QIP worth Rs 10,000 crore at a floor price of Rs 420 per share. It could offer a discount of up to 5 per cent at its discretion.