Daily Market Update – APR 20

Untitled 5 Daily Market Update   APR 20

 

Cement major, ACC Ltd, reported 74% growth in net profit at Rs.563 crore for the Mar-21 quarter. Consolidated sales revenues for the quarter were up 23% at Rs.4,213 crore in the quarter. ACC saw growth in sales volume and also in price leading to a boost to volumes and realizations. EBITDA was up 47% in the Mar-21 quarter at Rs.860 crore while OPM improved 330 bps to 20.4%. In the Mar-21 quarter, ACC also commissioned a new grinding unit at Sindri in Dhanbad district with a capacity of 1.40 million TPA.

Even as the government opened up vaccinations to people above 18 years of age, the stock markets panicked at the spurt in daily COVID afflictions to above 2.75 lakhs. Investor wealth to the tune of Rs.360,000 crore was wiped out by the end of trading on Monday. At one point the Sensex was nearly 1300 points down but closed 883 points lower. Pharma index was marginally in the green while IT and FMCG were marginally lower. Banks, NBFCs, autos, realty and metal stocks were among the worst hit.

In the midst of the chaos in the market, Glenmark Pharma appears to be celebrating as the stock touched a 23-month high of Rs.588 on Monday. The company has seen a surge in interest after it announced an IPO of its API division, Glenmark Life Sciences Ltd. It will raise Rs.1160 crore via fresh issue and have an additional OFS of 73 lakh shares by Glenmark as part of the IPO. APIs are hot property globally and it looks like Glenmark wants to make hay while the sun is still shining. Glenmark has total debt of Rs.3,614 crore.

Jubilant Pharmova, the pharmaceutical subsidiary of the Jubilant Group, saw its stock price rally by over 10% after it announced the launch of an oral version of Remdesevir, the drug used to treat COVID-19. It has also sought approval from the Drug Controller General of India or DCGI. The idea is to provide an affordable and convenient drug that can be orally administered. This assumes importance in the light of the current shortage of Remdesevir in India. Jubilant has a licensing agreement with Gilead for the same.

Macrotech Developers, part of the MP Lodha group, listed at a discount of 10% to its IPO price of Rs.486 per share. The stock debuted on the NSE at Rs.436. It had got a tepid response from retail investors but the spurt in COVID cases only worsened the listing. However, post listing the stock did show some bounce by close of trade. While Macrotech touched an intraday low of Rs.422 on the NSE, it closed at Rs.458, still a discount to the issue price. One concern for markets has been Macrotech’s Rs.16,700 crore debt pile.

India’s top life insurer, LIC, appointed Paytm as the official facilitator for digital payments. LIC wants to be in sync with the increased shift to digital mode. According to LIC, Paytm has a smoother payment process and a wider variety of payment options including banks, cards and wallets. Paytm was selected amongst 17 payment platforms that bid for the prestigious LIC account. The contract will entail expanding its digital premium collections of Rs.60,000 cr and integration of all digital payments including agent remittances.

Based on the NCLAT order, the bankrupt RCOM will now have to go into liquidation unless the Supreme Court overturns the NCLAT order. The NCLAT orders states that the spectrum held by RCOM can be sold under the insolvency process after government dues are cleared. The COC plans to file an appeal against the order. This order pertains to Aircel and between Aircel and RCOM, the banks are owed Rs.64,000 crore. Between the two defaulting companies, they owe Rs.38,400 crore to DOT in the form of AGR dues.

Financials came under tremendous pressure on 19 August after extended lockdowns raised the risk of rising bank NPAs once again. Banks, NBFCs, MFIs and SFBs all came under the hammer on Monday. But, brokers are confident that due to underlying credit appetite the impact on banks may be temporary at the very worst. Most brokerages are of the view that even through credit appetite may not be impacted, the lenders were likely to get cautious. The growth would first return to the secured borrowing segment.

World Indices At 9 AM

%name Daily Market Update   APR 20

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