Daily Market Highlights Jul 27

%name Daily Market Highlights Jul 27

Previous Day Market

Sensex Closed At 52,852.27 down  by 123.53  points 

Nifty Closed At 15,824.45 down by 31.60 points 

Tata Motors reported net loss of Rs.4,451 crore for the Jun-21 quarter, surely narrower than the loss of Rs.8,444 crore reported in Jun-20 quarter. A severe shortage of microchips dented volumes and had a negative impact on earnings. In addition, higher product development costs and exceptional net tax impact of Rs.1,742 crore also weighed on results. Losses are nearly twice of consensus estimates. Even the EBITDA margins were at 9%, much lower than the street consensus of 10.5%. JLR sales were up 68.1%.

A day ahead of the IPO opening on 27 July, Glenmark Life Sciences raised Rs.454 crore from anchor investors. Its total issue size in the IPO is Rs.1,514 crore. Some of the anchor investors who got allotment include HSBC, GPF Norway, Oaktree, Copthall Mauritius, Kuber Fund, Reliance General etc. The anchor placement happened at the upper end of the price band at Rs.720 per share. Glenmark Life Sciences is a leading Indian player in non-commoditised APIs for CVS, CNS disorders, diabetes and pain management.

A British court granted the bankruptcy order against Vijay Mallya which allows the banking consortium to freeze global assets of Mallya to recover debt. The law firm representing the Indian banks had argued in favour of the bankruptcy order to be granted in favour of banks. The judge remarked that there was insufficient evidence that the debt will be repaid to the petitioners in full within a reasonable period. The petitioners are the SBI led consortium consisting of 13 Indian banks with dues of $1 billion from Mallya.

DLF reported Rs.337 crore PAT for the Jun-21 quarter as against a net loss of Rs.-71.5 crore in the Jun-20 quarter. DLF reported operating revenues of Rs.1,140 crore, up 108% yoy. COVID 2.0 had its impact as operating revenues fell 33.5% and PAT fell 29.4% sequentially. New sales bookings grew 5.7X at Rs.1,014 crore. Despite challenges in the rental business due to curbs, DLF expects the demand for office space to bounce back in the second half of 2021. Net debt has fallen from Rs.5,267 crore to Rs.4,745 crore in Q1.

Chemical companies were on a roll on Monday with stocks like Alkyl Amines, Gujarat Fluoro, Balaji Amines and Navin Fluorine hitting new highs on expectations of strong earnings. Most stocks rallied 10-11% on Monday. Analysts are factoring in double-digit volume growth for specialty chemical companies in Q1. Companies like Navin Fluorine are expected to report strong revenue growth in their CRAMS portfolio. However, higher crude means higher input costs and hence margins could contract by 100-200 bps in Q1.

Axis Bank’s reported 94% growth in net profits at Rs.2,160 crore in Jun-21 quarter, helped by higher non-interest income and lower provisioning. Axis Bank reported 11% hike in net interest income or NII at Rs.7,760 crore. NIMs improved by 6 bps yoy to 3.46%. Non-interest income was up 39% at Rs.3,588 crore, largely helped by fee income. Gross NPAs fell from 4.72% to 3.85% yoy. Provisions were 20% lower at Rs.3,532 crore. Provision coverage ratio stood at 87%. Advances grew 12% yoy while deposits grew 16%.

Paytm proposes to launch its IPO towards the end of Oct-21 subject to regulatory approvals. It has already filed DRHP for a Rs.16,600 crore IPO consisting of Rs.8,300 crore of fresh issue and Rs.8,300 crore via OFS. Paytm counts marquee names like Ant Group, Softbank and Berkshire Hathaway among its investors. For FY21, Paytm narrowed losses to Rs.1,655 crore. The guidance is that Paytm could be profitable in the next 18 months. For now, core focus areas for Paytm are the online and offline payments and lending business.

Vodafone PLC and Aditya Birla Group may cede control of Vodafone Idea if a strategic investor wants to take control. Both Vodafone UK and AV Birla Group are unwilling to commit further capital to Vodafone India, considering its precarious financial position. Vodafone UK owns 45% in Vodafone Idea while AV Birla group owns 26% stake. Both promoters are willing to cede control. A $2 billion equity deal could dilute the stake of Vodafone PLC to 28% and AV Birla group to 16.25%. AGR dues continue to plague the stock.

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%name Daily Market Highlights Jul 27

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