The domestic markets ended the volatile session with marginal gains on Tuesday, August 10, 2021. The session turned volatile towards the fag-end of the session as hefty profit booking emerged in public sector banks, metals and FMCG stocks. However, the buying in heavyweight in IT stocks, Bharti Airtel, Reliance Industries, HDFC and Kotak Bank, has limited the downside
The domestic markets ended the volatile session with marginal gains on Tuesday, August 10, 2021. The session turned volatile towards the fag-end of the session as hefty profit booking emerged in public sector banks, metals and FMCG stocks. However, the buying in heavyweight in IT stocks, Bharti Airtel, Reliance Industries, HDFC and Kotak Bank, has limited the downside. In the intraday trade, S&P BSE Sensex touched a fresh record high of 54,779.66. The S&P BSE Sensex added 151.81 points or 0.28 per cent to 54,554.66. The Nifty 50 index advanced 21.85 points or 0.13 per cent to 16,280.10. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, August 11, 2021. List of such five stocks:
Power Grid + Siemens + Lupin + Trent
Power Grid: State-owned electric utility company has reported a 3x YoY rise in the profit at Rs 6,085.4 crore for the quarter ended June 30, 2021, as against Rs 1,979 crore posted in the same quarter last year. Sequentially, the profit rose 73% as compared to Rs 3,516 crore posted in the previous quarter ended March 31, 2021. Revenue from operations grew 8.8% YoY to Rs 9,776.6 crore as against Rs 8,989 crore posted last year. Sequentially, the revenue dropped 1.7% as compared to Rs 9,942 crore posted in the previous quarter. The EBITDA grew 8.8% YoY at Rs 8,572.4 crore as compared to Rs 7,877 crore posted last year. Sequentially, EBITDA fell 2% against Rs 8,746 crore posted in the previous quarter. The margin remained almost flat on a year-on-year basis at 87.7% in Q1FY22 as compared to 87.6% in Q1FY21 and 87.9% posted in Q4FY21. Highlights:
– Exceptional gain of Rs 3,170 crore boosts profit
– Last year’s profit base was low because of a one-time rebate of Rs 1,075 crore to power cos
– Transmission Revenue at Rs 9,686 crore, up 7%
– Consultancy Revenue at Rs 52.4 crore, up 55%
– Telecom Revenue at Rs 119 crore, down 36.7%
Siemens: The automation company has reported a standalone profit of Rs 161.5 crore for the quarter ended June 30, 2021, as against a standalone loss of Rs 4.6 crore posted in the same quarter last year. Sequentially, the profits dropped 51% from Rs 328 crore posted in the previous quarter ended March 31, 2021. Revenue from operations on the standalone basis rose 2.25x YoY to Rs 2,708 crore as against Rs 1,319 crore posted last year. Revenue declined 19.3% sequentially from Rs 3,354 crore. The company has reported an EBITDA profit of Rs 228.3 crore in the period under review as against an EBITDA loss of Rs 9 crore posted last year. EBITDA declined 48.3% QoQ from Rs 441.4 crore posted in the previous quarter. The margins stood at 8.4% in Q1FY22 as against 13.1% posted in Q4FY21.
– New orders at Rs 4,341 crore, up by 2.5x (YoY)
– Total order book at Rs 14,267 crore
– Highest Order Backlog ever
Lupin: The pharmaceutical company has reported a 407% YoY rise in the consolidated profit at Rs 542 crore for the quarter ended June 30, 2021, as against a profit of Rs 107 crore posted in the same quarter last year Sequentially, the profit grew 18% from Rs 460 crore posted in the previous quarter ended March 31, 2021. Revenue from operations grew 22% YoY to Rs 4,237 crore as against Rs 3,468 crore posted last year. Sequentially, the revenue grew 13% from Rs 3,759 crore posted in the previous quarter. The EBITDA grew 90% YoY at Rs 928 crore as against Rs 488 crore posted last year. Sequentially, the EBITDA grew 13% from Rs 3,783 crore posted in the previous quarter. The margin stood at 22% in the reported quarter Q1FY22 as compared to 14% posted in Q1FY21 and 19% posted in Q4FY21.
– North America: up 9.6%
– India: 27%
– APAC+ LATAM: 23%
– API: (40%)
– Lisensing income of Rs 3,734 crore helped Profits
-US Sales Decline QoQ
Trent Limited: The Mumbai-based retail hand of Tata Group has reported a loss of Rs 84 crore for the quarter ended June 30, 2021, as against a loss of Rs 139 crore posted in the same quarter last year. Sequentially, the company has posted a profit of Rs 57 crore in the previous quarter ended March 31, 2021. Sales grew 240% YoY to Rs 327 crore as against Rs 96 crore posted last year. Sequentially, the sales declined 57.7% as compared to Rs 774 crore posted in the previous quarter. The company has posted an EBITDA loss of Rs 32 crore in the reported quarter against an EBITDA loss of Rs 119 crore posted last year. The Company has posted a positive EBITDA of Rs 137 crore in the previous quarter. The operator of retail chain Westside’s margin stood at -9.7% in Q1FY22 as against -123.9% posted in Q1FY21 and 17.7% posted in Q4FY21.
Management Commentary
– Witnessing a sharp recovery in our fashion business with July registering revenue recovery of over 80% vis-à-vis FY20 levels.
– In recent weeks, over 90% of our stores are operational on most days of a week with local restrictions being increasingly eased.
Zomato + Galaxy Surfactants + Gujarat Alkalies + Godrej Agrovet
Zomato: The Indian multinational restaurant aggregator and food delivery company has reported a consolidated loss of Rs 360.7 crore for the quarter ended June 30, 2021, as against a loss of Rs 99.8 crore posted in the same quarter of the previous financial year. Revenue from operations grew 2.17x YoY to Rs 844.4 crore as against Rs 266 crore posted last year. The company has reported an EBITDA loss of Rs 376.5 crore in the quarter under review as against an EBITDA loss of Rs 80.6 crore posted last year.
Galaxy Surfactants: The chemical manufacturing company has reported a 37.5% YoY rise in the consolidated profit at Rs 77 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 56 crore in the same quarter of the previous financial year. Sales on a consolidated basis grew 36% YoY to Rs 826 crore as against Rs 607 crore posted last year. EBITDA grew 20% YoY to Rs 108 crore as against Rs 90 crore posted last year. Margin declined to 13% in Q1FY22 as against 14.8% posted in Q1FY21.
Gujarat Alkalies: The chemical manufacturing company has reported a 98.4% YoY rise in the consolidated profit at Rs 63.1 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 31.8 crore in the same quarter of the previous financial year. Revenue from operations on the consolidated basis grew 44.3% YoY to Rs 716.4 crore as against Rs 496.6 crore posted last year. EBITDA grew 20.4% YoY to Rs 126.9 crore in the quarter under review as against Rs 105.4 crore posted last year. However, the margins contracted to 17.7% in Q1FY22 as against 21.2% posted in Q1FY21.
Godrej Agrovet: The agribusiness company has reported a 4.1% YoY rise in the consolidated profit at Rs 104.8 crore for the quarter ended June 30, 2021. The company has posted a profit of Rs 100.6 crore in the same quarter of the previous financial year. Revenue from operations grew 28.2% YoY to Rs 1,992.8 crore as against Rs 1,554.2 crore posted last year. EBITDA grew 2.2% YoY to Rs 169.5 crore as against Rs 165.8 crore posted last year. The margin dropped to 8.5% in Q1FY22 as against 10.7% posted in Q1FY21.
IPO Updates
Chemplast Sanmar IPO: Specialty chemicals manufacturer Chemplast Sanmar’s initial public offering (IPO) was subscribed 0.16 times on the first day of opening, i.e., Tuesday, August 10, 2021. The retail portion was subscribed 0.39 times, while the NII and QIB portion was subscribed 0.02 times while the QIB portion has not begun. The issue will close on Thursday, August 12, 2021. The price band for the offer has been fixed at Rs 530-541 per equity share. Investors can subscribe to the IPO by applying for a minimum of 27 shares or multiples thereof. The company aims to raise Rs 3,850 crore through its public offer. The issue comprises fresh issuance of shares, aggregating up to Rs 1,300 crore, and an offer for sale of up to Rs 2,550 crore by promoters and existing shareholders.
Aptus Value Housing Finance IPO: South-India based home finance lender Aptus Value Housing Finance’s initial public offering (IPO) was subscribed 0.24 times on the first day of opening, i.e., Tuesday, August 10, 2021. The retail portion was subscribed 0.33 times, while the NII and QIB portions were subscribed 0.01 times and 0.25 times, respectively. The issue will close on Thursday, August 12, 2021. The price band for the subscription of the offer has been fixed at Rs 346-353 per equity share. Investors can subscribe to the IPO by applying for a minimum of 42 shares or multiples thereof. The company aims to raise Rs 2,870 crore from the initial stake sale. The issue comprises fresh issuance of shares, aggregating up to Rs 500 crore, and an offer for sale of up to Rs 2,280 crore by promoters and existing shareholders.
Nuvoco Vistas IPO: Cement major Nuvoco Vistas Corporation’s initial public offering (IPO) was subscribed 0.29 times on the second day of subscription. The retail portion was subscribed 0.51 times, while the NII and QIB portions were subscribed 0.04 times and 0.11 times, respectively. Today is the last day for the subscription of the issue. The price band for the offer has been fixed at Rs 560-570 per equity share. The company plans to raise Rs 5,000 crore through its public offer. Investors can subscribe to the IPO by applying for a minimum of 26 shares or multiples thereof.
CarTrade Tech IPO: Multi-channel auto platform CarTrade Tech’s initial public offering (IPO) was subscribed 0.99 times on the second day of subscription. The retail portion was subscribed 0.81 times, while the NII and QIB portions were subscribed 0.09 times and 0.55 times, respectively. Today is the last day for the subscription of the issue. The price band for the offer has been fixed at Rs 1,585–1,618 per equity share. The company plans to raise Rs 2,998.5 crore through its offer, at the upper end of the price band of Rs 1,618 per share. Investors can subscribe to the IPO by applying for a minimum of 9 shares or multiples thereof.
Steel Stocks + Vedanta
Steel Stocks In Focus
Steel Stocks: Steel stocks will be in focus today as the iron ore prices have dropped to a 3-month low as China curbs steel output. China has asked 20 steel mills in Tangshan to stop work for a week.
Vedanta: Amid a robust outlook for mineral-led growth in India, Vedanta Limited is looking to invest up to $20 billion across its businesses. The investment plan also includes doubling the silver production and steel capacities.
Sugar Stocks: Sugar stocks will be in focus today as Raw Sugar prices with a jump of 6% have surged to the highest level in over four years on Tuesday. Sugar production in Brazil’s centre-south region fell 11%.
