Daily Market Highlights AUG 11

3 Daily Market Highlights AUG 11

Previous Day Market Update 

Sensex closed at 54,554 up by 151  points

Nifty closed at 16,280 up by 21 points

As the outlook for metals gets stronger, Vedanta plans to invest $20 billion across its businesses, including doubling of silver production and steel capacities. For now, Agarwal has only given timelines for planned capex of $5 billion over the next 3 years. Agarwal made this commitment at the 56th AGM of Vedanta. Vedanta is also looking to increase domestic production of oil and gas by 50%. For FY21, Vedanta reported EBITDA of Rs.27,341 crore and total revenues of 86,863 crore. Allocation of $2 billion is meant for oil.

Recently listed digital food delivery service, Zomato, reported widening of consolidated net loss for Jun-21 quarter to Rs.356 crore; more than thrice the loss in Jun-20 quarter. COVID pandemic meant that it had to idle capacity, even as higher expenses continued. The dine out business, especially, has been deeply impacted by COVID 2.0. However, revenues from operations were 217% higher at Rs.844 crore. After 6 years, Zomato completed delivering 1 billion orders with 10% delivered in last 3 months alone.

Bharti Airtel touched a record high of Rs.627.95, on 10 August on the back of encouraging outlook. Bharti had touched its previous all-time high of Rs.623 in Feb-21. The stock has appreciated 20% in the last 3 weeks even as the index has gained just 5%. Despite the Supreme Court dismissing the application to re-compute AGR dues by DOT, Bharti benefited from the launch of its upgraded prepaid plans and post-paid plans, which promise higher ARPUs. Bharti showed healthy 4G adds and healthy free cash flow generation.

Keventer Agro, a company specializing in food and beverages, filed DRHP with SEBI for its proposed IPO. The IPO will comprise fresh issue of shares worth Rs.350 crore and an offer of sale of 10.77 million shares by Mandala Swede SPV. Proceeds of the fresh issuance will be used to retire debt as well as to bankroll capital expenditure. Keventer, based out of Kolkata, has interests in dairy and fresh food products. It has presence across the value chain including fresh, frozen and ambient long shelf life food category products.

Despite the Reliance-Future merger deal in limbo, the stocks of Future Group companies rallied as much as 17%. This was following reports that Amazon had drawn a blueprint to bail out the cash-strapped Future Retail. This is subject to the SIAC ruling against the planned takeover of Future group by Reliance Industries. That has been the bone of contention between Future Group and Amazon, since Amazon claims it had the first right of refusal, due to its holding in Future Coupons. The final SIAC order is awaited.

GMR Infrastructure, the operator of Delhi International Airport Limited, or DIAL, will raise Rs.6,000 crore via issue of securities. A final decision is expected when the Board of Directors meet on 13th August. The funds are likely to be raised in one or more tranches via qualified institutional placement or through the issue of FCCBs. The fund infusion has become critical after Indian airport operators missed out revenues worth Rs 7,000 crore in FY21. India’s 136 airports, collectively posted a net loss of Rs.2,883 crore in FY21.

Coal India reported 52% higher net profits at Rs.3,170 crore for the Jun-21 quarter. Revenues for the quarter were higher by 37% at Rs.25,282. While production at 123.98 million tonnes was almost flat on yoy basis, the offtake was higher by 32% at 160.44 million tonnes. COVID has had a dual impact on Coal India in terms of supply chain constraints for labour and material. It is also grappling with higher costs. Coal India is India’s virtually monopoly state-owned coal miner. The stock was marginally higher at Rs.143.

Hinduja Global Solutions entered into a definitive agreement to divest its healthcare services business a unit of Baring Private Equity Asia. The deal is based on an enterprise value of $1.2 billion and the deal will be consummated in 3 months. The healthcare services business employs over 20,000 personnel across India, Philippines, Jamaica and the US. In FY21, it had recorded revenues of $400 million. The healthcare services vertical provides solutions that enable healthcare teams to deliver better patient outcomes.

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