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Stocks in the news:

1.Axis Bank: Axis Bank has said its total exposure to SREI group does not exceed | 800 crore and the allegations by Australia-based news agency Scams Breaking on the bank's exposure to SREI Group are ‘grossly inaccurate and baseless.’ Axis Bank's total exposure to SREI group includes fund-based exposure worth Rs 731 crore and non-fund based exposure worth Rs 69 crore.

2.Indian Bank: Indian Bank has declared the NPA account of IL&FS Financial services as 'Fraud' and reported the same to the Reserve Bank of India. The bank has an exposure worth | 408 crore to the said account. The lender says that the account has been fully provided for, as per the regulatory requirement.

3.Majesco Limited: Majesco Limited has approved payment of interim dividend of | 974/- per equity share for the financial year 2020-21. The record date is 25 December 2020 and dividend payout will be 30 December 2020. Post this dividend payout company will be left with cash reserves estimated at |103 crore and real estate of ~1,20,000 square feet at Mahape, Navi Mumbai. The realisable value of this real estate is yet to be determined

4.PVR: PVR board will meet on December 18 to consider raising of funds via issue of equity or debt instruments

5.Biocon:Biocon Biologics has signed a Memorandum of understanding (MoU) with Christian Social Services Commission (CSSC), Africa in continuation of its Mission 10 cents affordable insulins program for low- and middle-income countries (LMICs). CSSC works with a network of more than 900 health facilities most of which are located in the rural area serving the rural population. Tanzania will be the first country in Africa that will benefit from this collaboration and the program is expected to roll out early next year.

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Stocks in the news:

1. Motherson Sumi Systems (MSSL): MSSL conducted a virtual investor conference whereby it outlined its next 5-year plan for 2020-25. The company is targeting US$ 36 billion in group revenues by FY25E, including 25% contribution from non-automotive space. It also aims to be highly capital efficient, with a targeted group RoCE of 40%. Other ambitions outlined include 40% consolidated dividend payout ratio and continued business de-risking via 3CX10 i.e. no component, country or customer to form more than 10% of revenues

2.Ashok Leyland: Ashok Leyland has incorporated a new wholly owned subsidiary named Vishwa Buses and Coaches for carrying on business of bus body and coach building. The company has a paid up capital of | 60 crore. Separately, Ashok Leyland's holding in UK based EV bus maker Optare PLC stands reduced from 99.24% earlier to 91.63% on account of conversion of loans by Hinduja Automotive Limited into equity shares. Optare PLC had FY20 revenues of | 336.22 crores.

3.Bharti Airtel: Bharti Airtel has picked up a 5.2% stake in Avaada MHBuldhana Pvt. Ltd, a solar power firm, for | 4.55 crore

4.Majesco: Majesco has announced buyback opening date 27 November 2020 and buyback closing date 11 December 2020. The company had proposed a buyback of 74.7 lakh shares at | 845/share.

5.IIFL Securities: IIFL Securities' board has approved buy-back of equity shares with total outlay of upto | 90 crore, comprising ~11.5% stake of consolidated total paid-up capital and free reserves as of March 2020. Maximum price for buy back is fixed at | 54 per share.

6.Relaxo Footwears: As per media reports, in a bid to cater to the strong demand for open footwear category, Relaxo Footwears plans to set up a new manufacturing plant with capex outlay of | 150 crore

7.Mphasis: As per media sources, Blackstone the promoter of Mphasis is weighing an exit and has initiated discussion with at least three global investment banks JP Morgan, Morgan Stanley and Citi for sell side advisory while KPMG has already begun vendor diligence.

Stocks in the news:

1.Titan Company: Titan Company in its business update stated that it witnessed good traction across all its businesses in the festive season. The Jewellery business witnessed ~15% growth for the 30 day festive season starting from Dussehra till Diwali over the corresponding period last year, with a decent recovery in studded Jewellery sales. The Watches and Wearables division also performed reasonably well with division reaching recovery rate of ~90%

2. L&T: L&T's transportation infrastructure business awarded another mega (>| 7000 crore) contract from NHSRCL to construct 87 km (~17% of total alignment) of the Mumbai-Ahmedabad High Speed Rail (MAHSR) project under C6 package. Earlier, it bagged the C4 package of the project involving construction of a 237 km stretch. With this, ~63% of the total project alignment is now awarded to L&T for construction related work.

3.Bharti Infratel/Vodafone Idea: The merger of Bharti Infratel and Indus Towers to create a mega tower company (renamed as Indus Towers) has been completed. Airtel stake in the combined entity will be 36.73%, while Vodafone group and Providence will hold 28.12% and 3.25%, respectively. Vodafone Idea (VIL)has received | 3,760.1 crore cash for its 11.15% holding in Indus. We note that VIL has agreed to make a prepayment of ~| 2400 crore to the merged tower entity from the cash consideration to be received from Infratel at the time of closing.

4. Mphasis: Mphasis has acquired Datalytyx Limited, a leading UK based, Snowflake and Talend partner specializing in Next-Gen Data Engineering and consultancy company for consideration up to GBP 13.3 million (~| 130 crore) for 100% stake. The acquisition is expected to provide access to strengthen Mphasis Next-Gen Data GTM Strategy and provide higher value partnership status with Snowflake and Talend for cloud-based data services. The acquisition closed on 19 November 2020 consequent to signing of the definitive agreement

5.Infosys: Infosys has built a vaccine management cloud solution on the Salesforce Platform in collaboration with Salesforce Work.com. The companies have created an end-to-end vaccine management solution to help support the federal government’s mandate for states to be ready to distribute a coronavirus vaccine.Infosys vaccine management solution built on the Salesforce Platform covers a broad spectrum of vaccine management, including campaign management, citizen registration, prioritization, provider enrollment, supply chain visibility, forecasting, vaccine administration, wellness surveys, and adverse event monitoring.

6.State Bank of India: As per media, State Bank of India (SBI), the lead lender to Dewan Housing Finance Corp. Ltd, (DHFL) has asked fellow lenders to persuade all four suitors to the bankrupt home financier to upgrade their offers as an improvement in the asset quality of the mortgage lender has made it more valuable

7. Syngene: Syngene and Deerfield Discovery and Development (3DC) have signed a five-year strategic collaboration to advance therapeutic discovery projects. This collaboration will unite core skills of the investment management company Deerfield, through its drug discovery and development arm 3DC, and Syngene’s integrated drug discovery (IDD) services.

Stocks in the news:

1. Hero MotoCorp (HMCL): HMCL reported that it retailed 14 lakh units during the just concluded festive period, i.e. 98% of last year's levels on like to like basis.

2. Tata Consultancy Services (TCS): Tata Consultancy Services (TCS)'s shareholders has approved buyback of | 16000 crore at | 3000/share. The Company has fixed Saturday, 28 November 2020, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback.

3. L&T: L&T has secured one of its biggest orders ever for its Construction and Mining Equipment business to supply 46 units of Komatsu Mining Equipment from Tata Steel. The scope includes supply of equipment and full maintenance contract for 60000 hours of equipment operation.

4. Punjab & Sind Bank: Punjab & Sind Bank’s board will meet this week to consider raising up to ₹ 5500 crore by issuing shares on a preferential basis.

5.TTK Prestige: A lockout has been declared due to strike by workers at TTK Prestige’s Manufacturing facility in Khardi, Maharashtra. The management has indicated that it has sufficient alternate capacities in other factories and the financial impact is not expected to be material

6.Wipro: Wipro has fixed 11 December 2020 as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback.

Stocks in the news:


1.Wipro: Wipro shareholders have approved | 9500 crore buyback plan at | 400/share.

2. TCI Express: As per the management of TCI Express, vaccine distribution in India (at 7-8 degree celsius) would not require significant investment by various players and the Government of India (GoI) is specifically targeting express road segment for distributing the vaccine to tier 2,3,4 towns

3.NMDC: NMDC have taken a second price hike in the month of November as prices of lump & fines have been increased by |400 per tonne & |300 per tonne respectively. After the hike, NMDC fines (64% Fe, -10mm) prices are currently at |3610/tonne ( | 3310/ tonne as on 4th Nov 20') while lumps (65.5%Fe,6-40mm) prices are at | 4000/tonne ( | 3600/ tonne as on 4th Nov 20').

4. NBCC (India) Limited: NBCC (India) Limited has secured order worth | 1,166 crore in the month of Oct’20. NBCC’s order book (OB) at the end of Sept’20 stood strong at ~| 72,000 crore. However, pick-up in execution and normalization of its margin remains key.

5. IIFL: IIFL board will meet on 20th November to consider buyback of equity shares as per its latest BSE filing.

6. L&T: L&T delivered the first hardware, the middle 'booster' segment of the world's third largest solid propellant rocket booster, 'S-200', for Gaganyan Lunch Vehicle (LV) to ISRO ahead of schedule with zero-defects

Stocks in the news:


1. Tata Steel: Tata Steel reported healthy performance for Q2FY21. For Q2FY21, sales volume for the Indian operations stood at 5.05 MT (up 72% QoQ and 22% YoY), while sales volume from the European operations stood at 2.27 MT (down 1% YoY, up 15% QoQ). Consolidated topline came in at | 37154 crore (up 7% YoY, 53% QoQ), higher than our estimate of | 34768 crore. Consolidated EBITDA came in at |6111 crore, while adjusted EBITDA came in at |5425 crore, (our estimate of |4495 crore). Standalone operations reported EBITDA per tonne of |12861/tonne (our estimate of |12000/tonne), while European operations reported negative EBITDA/tonne of US$27/tonne (our estimate of negative EBITDA/tonne of US$35/tonne). Ensuing PAT from continuing operations stood at |1635 crore.

2.Graphite India (GIL): Graphite India (GIL) reported operationally subdued set of numbers for Q2FY21, wherein it reported a consolidated loss at the EBITDA, PAT level. For Q2FY21, GIL reported a consolidated topline of | 485 crore (down 45% YoY, up 19% QoQ), higher than to our estimate of | 418 crore. Better than expected topline was on account of higher-than-expected capacity utilisation. Consolidated capacity utilisation in Q2FY21 was at 60% (61% in Q2FY20, 36% in Q1FY21), higher than our estimate of 45%. Consolidated EBITDA loss came in at | 78 crore (our estimate of consolidated EBITDA loss of | 84 crore). Subsequently, net consolidated loss for the quarter was at | 41 crore (our estimate of net loss was | 52 crore)

3.Sunteck Realty: Sunteck Realty reported a strong sales volume but weak collections. The pre- sales value was up 96% at | 200 crore driven by affordable housing. The collection at | 141 crore were down 24% YoY. On financial front, Revenue for stood at | 143 crores, up 8%. EBITDA at | 31 crore was down 32% YoY. PAT at | 14 crore was down 50%.

4.HDFC AMC: HDFC Mutual Fund’s board has approved the appointment of Navneet Munot as its next managing director and chief executive officer. Munot, who was the chief investment officer of SBI Funds Management, will succeed the present managing director Milind Barve.

5.Ratnamani Metals & Tubes Limited: Ratnamani Metals & Tubes Limited has received a Domestic Order of |140.00 Crores in Carbon Steel Division for the supply of CS Pipes for Oil & Gas Sector. The order is to be executed between January, 2021 to May, 2021.

6.Vodafone Idea: As per media reports, Vodafone Idea (Vi) is considering increasing tariffs 15-20% by the end of the year or early next year. This is on the expected lines as the company is struggling with cash burn and aiming fund raise.

7.KNR’s revenues weakness impact is expected to be among the least owing to decent execution in the irrigation project. Hence, we expect revenues to de-grow 3% YoY to | 530 crore (up 1% on adjusted basis as base quarter had | 21.8 crore interest income on arbitration claim in the topline), EBITDA margin is expected to contract 70 bps YoY to 19%, on adjusted basis. Overall, we expect bottomline to decline 40,8% YoY to | 41.5 crore, given the one-offs and lower tax in base quarter. Key Monitorable: Status on HAM projects.

8.Apollo Hospitals' board has approved raising upto | 1500 crore through preferential allotment or QIP. As per the press release, the funds would be utilized for 1) purchasing the balance 50% stake in Apollo Gleneagles, 2) any potential inorganic opportunity, 3) reducing debt, 4) technology upgradations and 5) other general corporate purposes

9.For the month of Oct 20', JSW Steel crude steel production increased by 4%MoM & 7%YoY to 13.38 million tonnes (MT)(12.88MT on Sep 20’ & 12.54MT on Oct’19).Furthermore during the month of Oct 20', production of Rolled Products: Flat was flattish on YoY basis & increased by 6%MoM as it stood at 9.76MT(9.20MT on Sep 20’ & 9.77MT on Oct 19’) & Rolled products: Long increased by 16%YoY & 2%MoM as it stood at 3.01MT(2.95MT on Sep 20’ & 2.58MT on Oct 19’)

Stocks in the news:


1. Aurobindo Pharma: Aurobindo Pharma's Q2FY21E revenues are expected to grow 14% YoY to | 6386 crore on the back of continued traction in Europe, US supported by currency tailwinds. US injectables are expected to continue to be impacted (albeit better than Q1) tracking Covid-related impact on US hospitals. EBITDA margins are likely to increase 23 bps to ~20.6% . Net profit is expected to grow 21% YoY to ~| 789 crore.

2. Shree cements: Sharp volume push in the north and eastern region is expected to drive 13% YoY, 31% QoQ growth in volumes of Shree cements during the quarter. However, considering the weak pricing in these markets, we expect average realisations to decline 2.8% QoQ. With petcoke prices inching upwards during the quarter, we expect EBITDA/tonne to fall 11.8% YoY, 8.4% QoQ to | 1,302/tonne. On an absolute basis, we expect EBITDA to decline ~0.3% YoY only to | 841 crore. PAT is expected at |387.3 crore for the quarter.

3. Exide Industries: Exide Industries reported healthy operational performance in Q2FY21. Net sales stood at | 2,753 crore (up 5.5% YoY), driven by healthy replacement demand in the automotive and UPS segment with OEM and institutional demand gaining traction during the latter part of the quarter. EBITDA margins were at 14.2% (up 17 bps YoY). RM costs rose 120 bps YoY, with other expenses down 160 bps YoY. Consequent standalone PAT came in at | 229 crore.

4. Hindalco: Hindalco’s India business reported healthy set of operational numbers for Q2FY21 wherein topline came in line with our estimates, while EBITDA and PAT came in higher than our estimates. The topline of Hindalco’s India business was at | 9565 crore (up 28% QoQ, down 4% YoY), in line with our estimate of | 9621 crore. EBITDA for Hindalco’s India business came in at | 1275 crore (up 14% YoY, 43% QoQ, higher than our estimate of | 1185 crore). EBITDA margin came in at 13.3% (up 210 bps YoY, 130 bps QoQ), higher than our estimate of 12.3% Ensuing PAT for the India business was at | 327 crore (up 86% YoY, 289% QoQ), higher than our estimate of | 240 crore

5.NCC: NCC reported topline de-growth of 11% YoY (to | 1,541 crore). Operating Profit decreased by 10% YoY from |233 crore in Q2FY20 to |210 crore in Q2FY21. The resultant EBITDA margin came in at 13.6% Additionally, reported PAT of |58.4 crore (down 27% YoY). We highlight that NCC had booked |44.2 crore ion ‘other income’ as profit against sale of land, and made provisions worth |16.5 crore for impairment of investment in Q2 FY20. Adjusted for the same, PAT decline was merely 5% YoY.

6. Mahindra & Mahindra Ltd: Mahindra & Mahindra Ltd (M&M) reported healthy operational performance in Q2FY21. Standalone net sales stood at | 11,711 crore (up 5.7% YoY), with ASPs in automotive rising 1.6% QoQ to | 7.03 lakh/unit in tractor segment rising 1.9% QoQ to | 5.19 lakh/unit. Standalone EBITDA in Q2FY21 stood at | 1,890 crore with corresponding EBITDA margins at 16.1% (up 358 bps YoY). Margin performance was attributable to lower other expenses (down 287 bps YoY) and employee costs (down 50 bps YoY). Automotive segment posted ~30 bps increase in EBIT margins YoY to 4.3% while tractor margins were up strongly by ~510 bps YoY to 24.4%. Consequent standalone PAT came in at | 77 crore. PAT came in substantially lower as the company took a large impairment hit of | 1,150 crore on certain long-term investments.

7.Aarti Industries: Aarti Ind’s gross revenues grew 23.5% YoY to | 1330.4 crore amid strong growth in both segments. Speciality Chemical revenues grew 23.9% YoY to | 1108.8 crore. Pharma revenues grew 21.7% YoY to | 221.6 crore. However, owing to higher GST outgo, operational revenues grew 8.9% YoY to | 1172.6 crore. EBITDA margins contracted 191 bps YoY to 21.7% with higher other expenditure and employee cost being partially offset by gross margin improvement of 191 bps YoY to 50.7%. Subsequently, EBITDA remained muted YoY at | 254.3 crore. Net profit declined 3.4% YoY to 142.5 crore, in sync with operational performance

8.Wipro: Wipro Limited announced that

6.Gail: Gail’s operational performance is expected to remain weak in Q2FY21E mainly on account of the gas trading segment. On the gas business front, gas transmission volumes are expected to decline 3.4% Y oY to 105 mmscmd with its EBIT at | 730.2 crore. We expect EBIT loss from the gas trading segment at | 46.8 crore on account of US LNG volumes. On the LPG liquid hydrocarbon front, EBIT is expected to increase 9% YoY to | 267.7 crore while the petchem segment is expected to report EBIT at | 38.4 crore

7. Exide Industries: Exide Industries is expected to report a steady performance in Q2FY21E primarily tracking a pick-up in wholesale volume prints at the OEM level during the quarter and robust aftermarket product demand. Net sales in Q2FY21E are expected at | 2,334 crore; down 10.6% YoY. EBITDA in Q2FY21E is expected at | 350 crore with corresponding EBITDA margins at 15.0%, up 90 bps YoY. PAT in Q2FY21E is expected at | 195 crore, down 18% YoY amidst low tax rate in base quarter


8.Tata Consultancy Services (TCS) and Deutsche Bank AG today announced an agreement under which TCS will acquire 100% of the shares of Postbank Systems AG (PBS) from Deutsche Bank AG for symbolic Euro 1. PBS is the full-range captive IT service provider that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank. PBS and its around 1,500 employees will become part of TCS. The transaction is subject to regulatory approval and is expected to be completed by year end 2020.

9.Engineers India Ltd (EIL) to consider a proposal to buyback of fully paid equity shares at its board meeting scheduled to be held on 12th Nov 2020

10.Prestige Estates Projects Ltd has agreed to sell a large portfolio of office, retail and hotel properties to global investment firm Blackstone for an enterprise value of | 9,160 crore. In October, Prestige Estates signed a non-binding letter of intent with Blackstone group entities for the sale of certain direct and indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance business. Prestige has signed term sheets yesterday with the Blackstone group, and the deal is likely to be closed next month.

Stocks in the news:

1. Ashok Leyland: Ashok Leyland reported healthy operational performance in Q2FY21 with positive EBITDA prints for the quarter – a key highlight. Revenues came in at | 2,837 crore, down 28% YoY. EBITDA for the quarter came in at ₹ 80.4 crore with corresponding EBITDA margins at 2.8%. Consequent reported loss at the PAT level was limited to | 147 crore.

2. Divis Lab: Q2 revenues grew 21.0% YoY to | 1749 crore (I-direct estimate: | 1679 crore). Generic segment grew 25.9% YoY to | 883 crore. Custom synthesis grew 18.1% YoY to | 700 crore. Carotenoids grew 9.9% YoY to | 167 crore. EBITDA margins expanded 843 bps YoY to 42.4% (I-direct estimate: 36.5%) due to significantly better gross margin performance and lower other expenditure. Subsequently, EBITDA grew 51.1% YoY to | 741 crore (I-direct estimate: | 613 crore). Net profit grew 45.6% YoY to | 520 crore (I-direct estimate: | 448 crore) in-line with strong operational performance. Delta vis-a-vis EBITDA was due to lower other income and higher depreciation

3. United Breweries: United Breweries’ reported lower than expected performance on the topline front, but higher on the profitability front, mainly due to higher other income. Net revenues grew 78% QoQ, but continued to lag behind its YoY comparable (down 43% YoY) to | 901 crore. Gross margins grew 730 bps QoQ and 70 bps YoY to 55.3% due to a better state mix and coupled with price increases to cover cost, which led to EBITDA margin of 4.5%. Subsequently, absolute EBITDA came at | 40 crore vs a loss of | 96 crore in Q1FY21. The company reported a PAT of | 4 crore and came above I-direct estimate of a loss of | 26 crore, as operational performance was further boosted by other income of | 33 crore

4.Bharat Electronics (BEL) reported revenues at | 3189 crore, strong growth of 16.3% YoY, above our estimate of | 2502 crore on the back of normalising supply chain, Ventilator order and business operations leading to execution pick-up. Absolute EBITDA for the quarter was at | 623.4 crore (vs. our estimate of | 329.4 crore) up 14.4% YoY. EBITDA margin was better than estimated at 19.6% (above our estimate of 13.2%) down marginally by ~30 bps YoY, owing to controlled operating expenses, better than expected execution. Hence, PAT came in at | 397 crore, up 16.9% owing to better execution, higher other income, which grew 82% to | 27 crore on a YoY basis.

5. Affle: Affle reported healthy set of Q2FY21 numbers. The company’s revenues increased 59.3% YoY to | 135 crore mainly led by healthy organic and inorganic growth (acquisition of Appnext & Mediasmart). Geographywise the company’s India revenues increased 43.4% YoY and Outside India grew by 78.8%. The company’s EBITDA margins were flat YoY at 25.5%. The company’s PAT increased by 73% YoY to | 27 crore mainly led by lower tax expenses and higher other income.
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6. Voltas: Voltas’s reported a healthy Q2FY21 performance with topline beating our estimates. Voltas’ consolidated topline grew by ~13% YoY to ~ | 1613 crore (Vs I-direct estimate: -11% YoY to ~| 1261 crore) led by revenue growth in all three segments. Despite a weak season, company’s UCP division sales increased by ~9% YoY to | 572 crore (Vs I-direct estimate: | 473 crore) led by pent up demand and rising work from home culture. UCP segment EBIT margin increased by ~223 bps YoY at 11% mainly due to various cost optimisation initiatives taken by the company amid period of lockdown. However, lower EBITDA margin (down by 140 bps YoY to 6.1%) is attributable to lower profitability from project business. PAT declined by ~26% YoY to ~| 80 crore (Vs I-direct estimate: | 91 crore) mainly due to lower margin and ~47% YoY decline in other income to | 38 crore.


7.Biocon: Goldman Sachs to invest | 1125 crore (~US$150 million) in Biocon Biologics. As per the proposed agreement Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of US$3.94 billion

8.NTPC: NTPC has informed the exchanges that Unit 2 of 800 MW of Lara Super thermal power station has started commercia

Stocks in the news:

1. Gujarat Gas: Gujarat Gas reported Q2FY21 results which were better than our estimates on all fronts. Revenues were flat YoY to | 2513 crore as sales volume increased 5.5% YoY during Q2FY21. Sales volume was at 9.8 mmscmd while gross margins at | 10.2/scm. EBITDA was | 733 crore, up 97.8% YoY. Subsequently, reported PAT declined 8.2% YoY to | 474.8 crore as company had negative tax outgo in Q2FY20

2.Berger paints: Berger paints reported a healthy performance during Q2FY21 with EBITDA margin and PAT coming in much ahead of our estimates. Revenues, earnings increased by 9% and 14% YoY to ~| 1743 crore and | 221 crore led by sharp increase in EBITDA margin by 350bps YoY to 19.2%

3. Somany Ceramics: Somany Ceramics reported resilient Q2FY21 numbers with sales volumes recovery faster than anticipated. The tiles sales volume was up 2.7% YoY at 12.9 MSM with realisations down 1.9% YoY, possibly owing to sales mix. The overall revenues were up 0.4% YoY. The EBITDA at | 49.4 crore, was up 10.4% YoY, largely driven by cost rationalisation initiatives (employee and other expenses down ~12% YoY) along with benign power & fuel expenses which was down 12% YoY due to lower gas prices. PAT was at | 20.5 crore, up 2.2x YoY, with growth aided by superior operating performance, lower interest costs as well as some one-offs in base quarter.

4. Ashok Leyland: CV maker Ashok Leyland's fortunes are expected to have improved substantially from the previous quarter. However, overall weakness is still seen persisting for Q2FY21E. Total volumes for the quarter were at 19,444 units, down 33% YoY. Product mix remained adverse, with MHCV: LCV ratio at ~40:60 vs. ~58:42 YoY. Consequent standalone net sales for the quarter are seen at | 2,569 crore, down 34.6% YoY. Negative operating leverage is expected to have resulted in loss at EBITDA level of | 138 crore (vs. loss of | 333 crore QoQ) , with loss after tax expected at | 273 crore (vs. loss of | 389 crore QoQ).

5. Voltas: Voltas’s consolidated revenue fall will be limited to ~11% YoY for Voltas led by fast recovery in the UCP division (revenue fall is limited to 10%) with pick up in secondary sales post ease in lockdown restrictions. However, delay in pick-up of construction activities would lead fall in revenue by 15% and 10% YoY for EMPS and EPS (project/industrial product) divisions respectively. EBITDA margin may see a fast recovery at 7%. Finally, PAT may decline by ~15% YoY to | 91 due to lower other income (down by 15% YoY)

6. Bharat Electronics (BEL): We expect Bharat Electronics (BEL) to report revenues at | 2501.5 crore with decline of 8.8%, YoY with operations inching towards pre-Covid levels while supply chain disruptions will continue to affect execution, to a certain extent. EBITDA margin is expected to decline to 13.2% vs. 19.9% YoY owing to product mix and disruptions, resulting in absolute EBITDA decline of 39.5% YoY to | 329.4 crore. Accordingly, we expect PAT to fall 43.5% YoY to | 191.9 crore. It has completed manufacturing of 30000 ventilators during the quarter while no new order announcement was made as on date for the quarter. Overall, strong order backlog of | 53752 crore is likely to augur well in the long term.

7.Construction of Suzuki Motors Gujarat (SMG) third line at Hansalpur, Gujarat has been completed, with production set to commence from FY22E onwards. The third line will take total SMG capacity to 7.5 lakh units from the present 5 lakh units (with total MSIL capacity improving to 22.5 lakh units). SMG contract manufactures cars for MSIL, with Baleno and Swift forming bulk of present sourcing.

Stocks in the news:

1. United Spirits: United Spirits reported strong set of numbers. Net revenues more than doubled QoQ, which led to mere 7% YoY decline to | 2146 crore. EBITDA Margins contracted 553 bps YoY to 12.6% mainly due to 280 bps contraction in GMs led by one-time inventory provision in AP (110 bps impact) and decline in South franchisee business. Subsequently, PAT de-grew 43% to | 129 crore but came above I-direct estimate of | 58 crore, as strong operational performance was further supported by higher other income and lower depreciation

2.Lupin: Q2 revenues declined 12.0% YoY to | 3835 crore (I-direct estimate: | 3714 crore) mainly due to Kyowa divestment. US revenues grew 5.6% YoY to | 1398 crore, whereas domestic formulations remained subdued de-growing 0.7% YoY to | 1332 crore. ROW markets remained flat at | 351 crore. However, API segment grew a robust 22.5% YoY to | 374 crore. EBITDA margins contracted 164 bps YoY to 15.2% (I-direct estimate: 15.5%) due to lower gross margins and higher other expenses. EBITDA de-grew 20.6% YoY to | 581 crore (I-direct estimate: | 576 crore). Adjusted net profit stood at | 211 crore, down 49.7% YoY (I-direct estimate: | 249 crore) in-line with lower operational performance, lower other income and higher tax rate.

3. Pidilite Ind: Pidilite Ind reported a strong Q2FY21 performance led by a notable expansion in EBITDA margin and better than expected growth in bottom-line. The consolidated topline and bottomline increased by 4% and ~10% YoY to | 1880 crore and | 356 crore respectively, led by ~688 bps YoY expansion in EBITDA margin to 27%

4. SBI: SBI’s NII surged by 14.6% YoY due to QoQ improvement in NIM. Other income declined by 29% YoY QoQ as a result of higher base due to stake sale. Provisions declined by 19% QoQ and 23% YoY owing to lesser Covid provisions. PAT for Q2FY21 jumped by 51.9% YoY to |4575 crore. SBI has estimated loans worth |60000 crore come under stress by FY21 end , this is 2.5% of the loans. Total Covid-19 provision stand at |3247 crore. Decent asset quality performance with GNPA and NNPA declining by 16 bps and 27 bps QoQ to 5.28% and 1.59%. Loan growth near industry average as gross advances were up by 6.02% YoY

5. Apollo Tyres:ATL reported healthy Q2FY21 performance, with net sales rising 7.4% YoY to | 4,283 crore while margins came in at a four year high of 16.2%. PAT rose 1.4x YoY to | 200 crore.

6. Trent: For Trent, Overall 90% of Westside and Zudio stores have re-opened. While in June, the recovery rate was 32% of pre-Covid levels, the management indicated that EOSS, which began from August saw healthy offtake leading to 55% recovery rate. We expect revenues to decline 47% YoY to | 433.5 crore in Q2FY21. PBT losses are expected to narrow down to | 73.0 crore vs. loss of | 182.2 crore sequentially.

7. Berger Paint: Berger Paint's consolidated sales likely to increase by 7% YoY to | 1715 crore led by ~8% YoY volume growth in Q2FY21. Volume growth would be largely driven by pent up demand in the eastern and southern regions where the impact of lockdown was limited. Further, lower raw material prices and improved utilisation would lead EBITDA margin expansion by 120 bps YoY at 16.9%. Company is likely to record ~11% YoY growth in PBT to | 233 crore while PAT may see a decline of 11% YoY to ~| 173 crore

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n growth was modest at 5.32% driven by retail and Agri loans

7. TVS motors: TVS motors reported healthy operational performance in Q2FY21. Net sales for the quarter stood at ₹ 4608 crore , up ~6% YoY amidst ~2% decline in volumes for the quarter. EBITDA in Q2FY21 stood at ₹ 430 crore with corresponding EBITDA margins at 9.3%, up 50 bps YoY. PAT in Q2FY21 stood at ₹ 196 crore which is not comparable on YoY basis due to exceptional gains in the base quarter

8.HPCL will consider a proposal to buy-back shares in its next board meeting on November 4

9.MCX: MCX and Indian Energy Exchange (IEX) have entered into a licensing agreement to launch electricity derivatives linked to IEX spot electricity prices on the MCX trading platform

Stocks in the news:


1. Bajaj Auto: Bajaj Auto is expected to post relatively muted performance in Q2FY21E, largely led by product mix deterioration and an element of rupee appreciation. Total volumes were at 10.5 lakh units, down 10.2% YoY (2-W down 2%, 3-W down 53%; share of 3-W in total volumes at 8.4% vs. 16.1% YoY; exports at 46% of total volumes, unchanged YoY). Net sales are expected at | 7,192 crore, down 6.7% YoY. EBITDA & EBITDA margins for the quarter are seen at | 1,231 crore and 17.1%, respectively (up 380 bps QoQ, 50 bps YoY). Consequent PAT is expected at | 1,178 crore, down 16% YoY

2. Asian paints: For Asian paints, we believe, a slow recovery in the metro regions is expected to be partially offset by strong volume recovery in semi-urban and rural regions, helping drive volume in Q2FY21. We believe company to report sales growth of 6% YoY to | 5355 crore led by volume growth of 7% in Q2FY21. On the margin front, benign raw material prices and improved operating leverage to drive EBITDA margin up by 170 bps YoY at 20.6%, which would take PBT higher by 18% YoY to | 985 crore. PAT may decline by 12% YoY at | 743 crore mainly due to reversal of tax benefits in the base period.

3.HDFC AMC: For HDFC AMC, AUM is expected to witness sequential uptick, though on YoY basis is seen to remain flattish at | 3.75 lakh crore. Gradual recovery in equity market and inflow from SIP is seen to partially offset pressure of lumpsum outflow. Operational performance is expected to revive sequentially and remain flat on YoY basis. Revenue from operation expected at | 498 crore (Yield at ~53 bps of closing AUM). Steady expense trajectory is seen to lead to support profitability with PBT at | 426 crore, i.e. 45 bps of AUM. PAT is seen at | 324 crore,~34 bps of AAUM.

4.Syngene: Q2FY21 revenues grew 11.9% YoY to ~| 520 crore led by growth in Discovery Services and Dedicated R&D Centres. EBITDA margins remained flat YoY at 30% with better gross margins due to change in product mix being offset by higher employee expenses owing to recruitment for new facilities. EBITDA grew 11.9% YoY to | 156 crore. Adjusted net profit (ex-exceptional insurance gain in Q2FY20) grew 2.6% YoY to | 84 crore. Delta vis-a-vis EBITDA was due to higher depreciation and lower other income partially offset by lower tax outgo.

5. Ultratech Cement reported good set of numbers for Q2FY21 with EBITDA margin expansion of 592bps YoY to 25.5%. Volumes for the quarter improved 8.2% YoY to 19.2MT. While realizations broadly remained flat YoY, stricter cost controls helped company to improve margins sharply. While revenues grew 8.1% YoY to |10,019 crore, EBITDA improved by 40.8% YoY to |2,552 crore due to better margins. Further, reduction in interest costs (down 31% YoY) helped to achieve robust PAT growth of 89% YoY to |1209 crore for the quarter.

6.Colgate: Colgate reported strong set of numbers with 5.3% revenue growth led by 7.1% domestic business growth. With sharp decline in crude based commodity cost, gross margins improved by 340 bps. Further, the company got the benefit of lower advertisement rates which resulted in 160 bps lower ad-spend to sales. Moreover, cost cutting measures resulted in overhead spends down by 120 bps to sales. All these factors resulted in operating margin expansion of 540 bps to 31.8%. Net profit increased by 12.3% to | 274.2 crore despite the lower tax in base quarter.

7. DLF: DLF's rental arm has given on lease 7.7 lakh sq ft office space to Standard Chartered GBS in an upcoming commercial tower in Chennai to be constructed at a cost of around | 450 crore, The construction of the prime office tower is expected to start in January 2021 and will be completed in 36 months

8.L&T: L&T construction awarded large contracts ( ranging between | 2500 to | 5000 crore) across its various businesses including buildings & factories order from reputed developer in Mumbai to construct residential & office space, an order from Punjab water supply board in water & effluent treatment business and an order from NCRTC for manufacturing & supply

Stocks in the news:

1.HUL: HUL is likely to witness 13.2% sales growth mainly on account of consolidation of acquired horlicks and boost brand. Home care and personal & beauty care businesses would see flat sales during the quarter. We believe intermediate & localised lockdowns in July would have impacted growth. Though rural sales has been growing strongly, urban sales has been impacted by down trading & shift of the migrant population to villages. Foods business is expected to grow 52% mainly due to inclusion of horlicks, boost sales. We expect 150 bps gross margin contraction due to sharp increase in tea prices. Tea prices have been up ~80% during the quarter. However, we expect lower ad spends & other cost cutting measure to result in sustainable operating margins at 25.2%. Net profit is expected to grow 7% to | 1977.9 crore

2. HDFC Life: HDFC Life reported strong premium growth at | 10183 crore, up 35% YoY, led by traction in single premium. Subsequently, APE increased by 21% YoY to | 2136 crore. Strong growth in premiums led 47% YoY NBP growth to | 5872 crore. In terms of product mix, non-par products witnessed 26% YoY decline to | 551 crore while par products grew 251% YoY to | 614 crore due to introduction of a new par product called Sanchay Par Advantage. Share of protection business stood at 11.6%. Higher APE led VNB to grow 22% YoY to | 547 crore with VNB margin at 25.6%. Stable actuarial liability was offset by increase in commissions and opex which capped PAT growth to 328 crore, up 6% YoY.

3. ACC: ACC revenues for the quarter Q3CY20 grew by 0.3% YoY to |3537.3 crore led by 0.8% YoY growth in volumes. Margins for the quarter improved by 319bps YoY to 19% leading to net profit growth of 20.3% YoY to | 363.9 crore.

4.Rallis: Rallis reported topline de-growth of 3% YoY to | 725 crore against our expectations of | 780 crore. The topline performance was remained below expectations owing to poor sales from international market, which was down by 29% YoY. On the other side, domestic agrochemical business registered a growth of 8% YoY, while the seed business grew by 29% YoY. We believe the growth from international market was partly impacted by realisation pressure in metribuzin along with lower offtake of PEKK under CRAMS portfolio. Better gross margins (+201 bps YoY) negated unabsorption of fixed overheads, resulting into OPM expansion marginally by 30bps YoY to 16.1%. EBITDA fell by 1.6% YoY to | 116.8 crore. PAT was down 4% YoY to | 81.3 crore against our estimates of | 111 crore

5.Tata Metaliks: Tata Metaliks reported healthy set of numbers for Q2FY21. Topline came in at | 520 crore, up 2% YoY , while EBITDA came in at | 109 crore, higher by 167% YoY. EBITDA margin came in at 21.1% as compared to 8.0% in Q2FY20 and 4.9% in Q1FY21. The ensuing PAT came in at | 82 crore,up 248% YoY.

6.HZL: We expect Hindustan Zinc (HZL) to report zinc sales of ~185400 tonne (up 10.4% YoY, 13.8% QoQ), lead sales of 60125 tonne (up 36.6% YoY, 33.6% QoQ) and silver sales of ~195000 k g (up 44.4% YoY, 33.6% QoQ). HZL's topline is likely to increase 25.7% YoY, 42.1% QoQ to | 5668 crore, EBITDA is likely to increase 43.2% YoY and 92.3% QoQ to | 3031 crore while PAT is likely to increase 3.1% YoY, 57.9% QoQ to | 2145 crore

7. JSW Steel: The National Company Law Tribunal (NCLT) has given JSW Steel approval to acquire bankrupt steel company Asian Colour Coated Ispat. JSW Steel has offered over ₹1550 crore for the 1 million tonne steel plant. The bid includes a ₹1,525 crore upfront payment to lenders and another ₹25 crore payment to operational creditors. On 30 June, 2019, the committee of creditors accepted accepted JSW's bid through a majority vote