Market Update for 24/08/2020 | Street-fluence

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WORLD MARKET:

  • The rehiring of temporarily laid-off workers will continue to bolster the U.S. labour market’s recovery in the months ahead, but Goldman Sachs expects almost a quarter of those layoffs to become permanent.
  • The Fed’s annual Economic Policy Symposium — typically held in Jackson Hole, Wyoming — is set for Aug. 27-28 via Livestream. Powell takes the virtual stage on Thursday to speak about the Fed’s long-awaited monetary policy framework review, which has focused on a new inflation strategy.

STOCK WISE NEWS:-

Tata Power: NCLT Mumbai approves withdrawal of scheme of transfer of certain renewable energy undertakings from the company to its arms Tata Power Renewable Energy, Supa Windfarm, Nivade Windfarm and Tata Power Green Energy on a slump sale basis.

ICICI Lombard: Will acquire Bharti AXA General Insurance’s non-life insurance operations in a share swap deal for an undisclosed sum. Shareholders of Bharti AXA will receive two shares of ICICI Lombard for every 115 shares held, as per the share swap ratio.

Dixon Technologies: The Board of Directors have approved raising of funds by way of issuance of any instrument or security, including equity shares, fully / partly convertible debentures, NCDs, Foreign Currency Convertible Bonds, warrants or any other combination thereof, in one or more tranches for an amount not exceeding Rs 200 crore, subject to necessary approvals.

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The government imposed an anti-dumping duty of $137 per metric ton on phosphoric acid from Korea for five years. Punjab Chemicals and Crops Protection, Gujarat Alkalies & Chemicals, Tata Chemicals in focus.

Panacea Bio: Terminates MOU with Refana for COVID vaccine.

ZEE Ltd: Board member Manish Chokhani buys 1 more lakh shares bringing his shareholding to 2 lakh shares.

RESULT CORNER:

Minda Industries Q1FY21, YoY

  • The loss at 118.3 Cr Vs Profit Of 53.5 Cr
  • Revenue Down 71% at 417.1 Cr Vs 1,439.7 Cr
  • EBITDA Loss at 59.1 Cr Vs EBITDA of 281.2 Cr

Godfrey Phillips Q1FY21, YoY

  • Net Profit Down 42.8% at 66.6 Cr Vs 116.4 Cr
  • Revenue Down 49% at 412.1 Cr Vs 807.6 Cr
  • EBITDA Down 68.7% at 63.3 Cr Vs 202.5 Cr
  • EBITDA Margin At 15.4% Vs 25.1%

Rossari Biotech Q1FY21, YoY

  • Sales down 14.3% to Rs 109.5 v/s Rs 127.8 cr
  • EBITDA Up 6.3% to Rs 23.7 v/s Rs 22.3 cr
  • EBITDA margins Up to 21.6% v/s 17.5%
  • Profit Up 9.2% to Rs 15.5 v/s Rs 14.2 cr

USFDA APPROVALS:

  • Granules India: Wholly-owned subsidiary gets U.S. FDA approval for its Abbreviated New Drug Application (ANDA) for Ramelteon Tablets. The drug is used in the treatment of insomnia. The drug had U.S. sales of approximately $33 million for the most recent twelve months ending in June 2020, as per IQVIA.
  • Sun Pharma: Gets U.S. FDA approval for Methylphenidate Hydrochloride.
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BROKERAGE UPDATES:

Morgan Stanley On Indian Steel

  • Key investor concern is around the sustainability of recent price hikes
  • Expect price hikes to be sticky See potential for profitability to hit previous peaks over coming quarters
  • Expect a fine balance between demand and supply through FY21
  • Believe Q1 formed the bottom of the cycle for profitability
  • Expect a sharp rebound in profitability in Q2

Investec On Cipla

  • Buy rating maintained Price target raised to Rs 885 from Rs 625
  • The near-term outlook remains steady
  • Building stable cash-flows for the long-term
  • Can witness more competition for its key respiratory products
  • Success for respiratory portfolio in the U.S. supports the near-term

Investec On Lupin

  • Sell rating maintained Price target raised to Rs 815 from Rs 665
  • Adjusted EPS lowest in the last decade largely due to metformin recalls in the U.S. and weakness across all businesses barring the API
  • Execution across key items remains the key
  • Cost containment plans, resolution of U.S. FDA issues across five facilities crucial

Antique Stock Broking On Indian FMCG

  • Majority companies witnessed improvement in offtake in July
  • Modern Trade, Out of Home channel remain impacted
  • Britannia, Dabur, Emami saw strong offtake while Bajaj Consumer distributors witnessed the weakest offtake.
  • Biscuits, followed by health and hygiene products driving sales
  • Upgrade HUL to buy from hold; price target of Rs 2,431
  • Downgrade Asian Paints to hold from buy; price target of Rs 1,874
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ISEC on Bharti Airtel

  • At CMP, the market is factoring negligible tariff hike!
  • AGR risk is rising but should be manageable
  • Bharti’s performance in the past few quarters has shown significant resilience
  • Our high-conviction BUY, TP Rs 655

Ambit upgrades Alkyl Amines to a target price of 4000 p/s. The previous hike in target came at the end of May the target then being 2840.

TRADING INFO:

  • Ex-date for share split of Eicher from 10:1
  • Record date for demerger of Fairchem Speciality

FII bought 410 cr
GOLD- 1943
DXY- 93.2
CRUDE- 44.9

Nifty shareholding trends for June Quarter:
– FPIs increased stake: Asian Paints, HDFC Life, HUL, Kotak, L&T, M&M.
– DIIs increased stake: Bharti Airtel, Bharti Infratel, HDFC Life,
Hero MotoCorp, HUL, ICICI, Kotak, M&M, NTPC, Power Grid
Source: Axis Cap



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Akshada Deo
Akshada posts the daily market updates in a summarized format. Stock Market, Literature, Music, and Design are her passions.
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