Equity Research Report Ways2Capital 6 Nov 2017
Added: (Mon Nov 06 2017)
Pressbox (Press Release) -
Nifty futures and bank nifty future market closed at 10487/ 25669.according to technical analysis if nifty futures and bank nifty future moves up-word in upcoming treading sessions then 10560/ 25910 will be next resistance level, if it break this level then nifty futures and bank nifty future can touch 11100 / 28335 level . it will be hard resistance. meanwhile in reveres there is support on 10414/ 25400 for nifty futures and bank nifty future after breaking this support with volume there is big support for nifty futures and bank nifty future on 10300/24900.
NSE - WEEKLY NEWS LETTERS
✍ TOP NEWS OF THE WEEK
1 Godrej Consumer Products Q2FY18 consolidated net profit rises 12.6% yoy
1 Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 2506.60 2.80
EBITDA 570.30 13.40
EBITDA MARGIN (%) 22.80 214
NET PROFIT 361.90 12.60
Godrej Consumer Products ltd revenue for the quarter came in at Rs. 2506.6 crore, registering 2.8% yoy increase. This was primarily driven by 3.4% and 8% yoy increase in revenues from Indian and African business.EBITDA for the quarter rose by 13.4% yoy to Rs. 570.3 crore with a corresponding margin expansion of 214 bps. EBITDA margin for the quarter stood at 22.8%. This margin expansion was aided by 4.5% yoy decline in cost of raw material consumed.The PAT for the quarter came in at Rs. 361.9 crore, yoy increase of 12.6%.Board has declared interim dividend of Rs.1 per share of Rs. 1 each.
Yes Bank Q2FY18 standalone net profit rises 25% yoy to Rs 1,002 crore
2 Standalone Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
NII 1885 33.5
NPA(%) 1.82 99
PROVISION 447 176
NET PROFIT 1002 25
Yes Bank reported Q2FY18 earnings in line with street estimates. The NII for the quarter was 1.5% higher than the street estimates of Rs1855 crore. While, net profit for the quarter was slightly below the estimates of Rs.1002 crore.NII for the quarter rose by 33.5% yoy to Rs.1885 crore in Q2FY18 vs Rs.1412 crore in previous year corresponding quarter. This was largely due to 18.1% yoy to Rs.4800 crore in Q2FY18.NIM’s for the quarter showed improvement at 3.7% vs 3.4% in Q2FY17.Asset quality of the bank deteriorated drastically as GNPA’s for the quarter rose by 197% yoy to Rs.2720 crore in Q2FY18 vs Rs.916 crore in previous year corresponding quarter. In percentage to total advances GNPA’s advanced by 99 bps to 1.82% in Q2FY18 vs 0.83% in Q2FY17. Also, NNPA for the quarter rose by 75 bps to 1.04% vs 0.29% in Q2FY17.Further Bank also reported divergence in GNPA’s & NNPA’s to Rs.6355 crore & 4819 crore for FY17.Provisions for the quarter rose by 176% yoy to Rs.447 crore in Q2FY18 vs Rs.161 crore in previous year corresponding quarter.Also, provision coverage ratio for the bank looks low at 43.3% in Q2FY18 vs 64.8% in Q2FY17.However, net profit for the quarter rose by 25% yoy to Rs.1002 crore in Q2FY18 vs Rs.801 crore in Q2FY17. This was driven by higher NII, operating profit and other income.Further, Advances for the quarter rose by 35% yoy to Rs.148675 crore in Q2FY18 vs Rs.110216 crore in Q2FY17. While deposits for the quarter rose by 11.3% yoy to Rs.157989 crore in Q2FY18.Capital adequacy looks better at CAR Basel III at 17% in Q2FY18 vs 14% in Q2FY17.
Dabur India Q2FY18 consolidated net profit rises 1.2% yoy
3 Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 1959 1.20
EBITDA 420 2.70
EBITDA MARGIN (%) 21.40 80
NET PROFIT 363 1.20
Dabur India's Q2FY18 consolidated results for the quarter registered a miss versus street estimates. Revenue for the quarter came in 5 % lower than the estimated figure of Rs. 2061 crore. EBITDA for the quarter came in 0.3 % lower than the estimated figure of Rs. 421 crore. And lastly, net profit for the quarter came in 1.7 % lower than the estimated figure of Rs. 369 crore.Dabur India consolidated revenue for the quarter came in at Rs. 1959 crore, registering 1.2% yoy decline. This was primarily driven by 2% degrowth in its Consumer Care business.EBITDA for the quarter rose by 2.7% yoy to Rs. 420 crore with a corresponding margin expansion of 80 bps. EBITDA margin for the quarter stood at 21.4%. The PAT for the quarter came in at Rs. 363 crore, yoy increase of 1.2%. This was due to lower interest by 19.8%.
Symphony Q2FY18 standalone net profit rises 19.2% yoy
4 Standalone Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 184.20 22.50
EBITDA 64.20 24.40
EBITDA MARGIN (%) 34.80 55
NET PROFIT 50.60 19.20
Symphony standalone revenue for the quarter came in at Rs. 184.2 crore, registering 22.5% yoy increase. This was primarily driven by 22.4% growth in its Air Cooler business. EBITDA for the quarter rose by 24.4% yoy to Rs. 64.2 crore with a corresponding margin expansion of 55 bps. EBITDA margin for the quarter stood at 34.8%. This margin expansion was aided by 11.3% decline in its material costs. The PAT for the quarter came in at Rs. 50.6 crore, yoy increase of 19.2%. The company declared interim dividend of Rs. 1 per share having a face value of Rs. 2 per share.
LIC Housing Finance Q2FY18 standalone net profit increases marginally by 1.1% yoy
5 Standalone Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
NILL 917 2.60
NET PROFIT 489 1.10
LIC Housing Finance reported its standalone financial result for Q2FY18.NII for the quarter increased marginally by 2.6% yoy to Rs. 917 crore. This was due to marginal increase in interest earned by 6.7% for the quarter.Provision for the quarter came to Rs.57.82 crore vs 30.3 crore in corresponding quarter last year.Net profit for the quarter declined marginally by 1.1% yoy to Rs. 489 crore.
Bharti Infratel Q2FY18 consolidated net profit declines 17.5% yoy
6 Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 1659 10.90
EBITDA 798 15.30
EBITDA MARGIN (%) 48 186
NET PROFIT 638 17.50
Bharti Infratel's Q2FY18 consolidated results for the quarter registered a miss versus consensus estimates. Revenue for the quarter came in 1 % higher than the estimated figure of Rs. 1643 crore. EBITDA for the quarter came in 33.6 % lower than the estimated figure of Rs. 1202 crore. And lastly, net profit for the quarter came in 5.4 % lower than the estimated figure of Rs. 674.5 crore.Bharti Infratel consolidated revenue for the quarter came in at Rs. 1659 crore, registering 10.9% yoy increase.EBITDA for the quarter rose by 15.3% yoy to Rs. 798 crore with a corresponding margin expansion of 186 bps. EBITDA margin for the quarter stood at 48%.The PAT for the quarter came in at Rs. 638 crore, yoy decline of 17.5%. This was due to 19% yoy decline in other income.
UPL Q2FY18 consolidated net profit rises 43.4% yoy
7 Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 3770 3.10
EBITDA 677 23.50
EBITDA MARGIN (%) 18 298
NET PROFIT 238 43.40
UPL's Q2FY18 consolidated results for the quarter registered a miss versus street estimates. Revenue for the quarter came in 5.2 % lower than the estimated figure of Rs. 3978 crore. EBITDA for the quarter came in 6.7 % lower than the estimated figure of Rs. 725 crore. And lastly, net profit for the quarter came in 38.5 % lower than the estimated figure of Rs. 387 crore.UPL standalone revenue for the quarter came in at Rs. 3770 crore, registering 3.1% yoy increase. This was driven by increase in revenue from non agro activities and agro activities by 9.2% yoy and 2.6% yoy, respectively.EBITDA for the quarter rose by 23.5% yoy to Rs. 677 crore with a corresponding margin expansion of 298 bps. EBITDA margin for the quarter stood at 18%.The PAT for the quarter came in at Rs. 238 crore, yoy increase of 43.4%.
Titan Company Q2FY18 consolidated net profit rises 67.5% yoy
8 Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 3473 28.40
EBITDA 398 50.60
EBITDA MARGIN (%) 11.50 169
NET PROFIT 278 67.50
Titan's Q2FY18 consolidated results for the quarter registered a beat on street estimates. Revenue for the quarter came in 12.4 % higher than the estimated figure of Rs. 3090 crore. EBITDA for the quarter came in 25.8 % higher than the estimated figure of Rs. 317 crore. And lastly, net profit for the quarter came in 28 % higher than the estimated figure of Rs. 217.1 crore.Titan consolidated revenue for the quarter came in at Rs. 3473 crore, registering 28.4% yoy increase. This was driven by 37% yoy rise in revenue from sale of jewellery.EBITDA for the quarter rose by 50.6% yoy to Rs. 398 crore with a corresponding margin expansion of 169 bps. EBITDA margin for the quarter stood at 11.5%. This margin expansion was aided by favourable changes in inventories.The PAT for the quarter came in at Rs. 278 crore, yoy increase of 67.5%. This was due to rise in other income to Rs.44.63 crore in Q2FY18 vs Rs. 10.67 crore in Q2FY17.
The Titan company retail chain stands at 1415 stores, as on 30th September, 2017.
Power Finance Corporation Q2FY18 consolidated net profit rises 0.7% yoy to Rs.1,886 crore -
Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 2589 1.70
NET PROFIT 1886 0.70
Power Finance corporation reported its quarterly earnings today.The Q2FY18 results came in mixed vs street estimates as NII for the quarter was 11.2% below the street estimates of Rs.2915 crore. And Net profit for the quarter was 6.3% higher than estimates of Rs.1774 crore.The NII for the quarter declined by 9.8% yoy to Rs.2589 crore in Q2FY18 vs Rs.2871 crore in previous year corresponding quarter. This was largely due to muted interest income at Rs.6897 crore in Q2FY18 vs Rs.6856 crore in Q2FY18. Net profit for the quarter also remained flat at 0.7% yoy to Rs.1886 crore in Q2FY18 vs Rs.1873 crore. further, provisions for the quarter declined by 66% yoy to Rs.101 crore.Also, board declared interim dividend of Rs.6 per share for face value of Rs.10 each.
Hindalco Industries Q2FY18 standalone net profit declines 10.5% yoy to Rs.392 crore
9 Standalone Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 10308 7.8
EBITDA 1389 20.30
EBITDA MARGIN (%) 13.5 139
NET PROFIT 392 10.05
Hindalco Ltd's Q2FY18 standalone results for the quarter registered a miss versus street estimates.Revenue for the quarter came in 1 % lower than the estimated figure of Rs. 10409 crore. EBITDA for the quarter came in 15.6 % lower than the estimated figure of Rs. 1645 crore. And lastly, net profit for the quarter came in 17.8 % lower than the estimated figure of Rs. 477 crore. Hindalco Ltd standalone revenue for the quarter came in at Rs. 10308 crore, registering 7.8% yoy increase. This was primarily driven by rise in revenue from aluminium segment by 5.7% yoy. EBITDA for the quarter rose by 20.3% yoy to Rs. 1389 crore with a corresponding margin expansion of 139 bps. EBITDA margin for the quarter stood at 13.5%. This margin expansion was aided by lower depreciation The reported PAT for the quarter came in at Rs. 392 crore, yoy decline of 10.5%. Also, Novelis achieved record shipments of 802 kilo tonne and record adjusted EBITDA of $302 million.
Tata Power Company Q2FY18 consolidated net profit declines 43.6% yoy
10 Consolidated Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
REVENUE 7657.30 6.20
EBITDA 1849.80 27.30
EBITDA MARGIN (%) 24.20 401
NET PROFIT 268.50 43.60
Tata Power reported consolidated results for the quarter came in mixed versus street estimates. Revenue for the quarter came in 3.4 % higher than the estimated figure of Rs. 7409 crore. EBITDA for the quarter came in 13.9 % higher than the estimated figure of Rs. 1624 crore. And lastly, net profit for the quarter came in 50.6 % lower than the estimated figure of Rs. 544 crore. Tata Power consolidated revenue for the quarter came in at Rs. 7657.3 crore, registering 6.2% yoy increase.EBITDA for the quarter rose by 27.3% yoy to Rs. 1849.8 crore with a corresponding margin expansion of 401 bps. EBITDA margin for the quarter stood at 24.2%. This margin expansion was aided by 10.9% decrease in its power costs.Unadjusted PAT for the quarter came in at Rs. 268.5 crore, yoy decline of 43.6%. This was due to 27% increase in its finance costs and reporting of exceptional loss amounting to Rs. 148.8 crore during Q2FY18.Considering its Renewable Business, PAT for the quarter came in at Rs. 173 crore, yoy increase of 200% . Also, the company has achieved generation of 14440 MU's of power from all its power plants.
Punjab National Bank Q2FY18 standalone net profit rises 2% yoy to Rs.560.50 crore
11 Standalone Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)
NII 4015 3.50
NPA(%) 13.30 33
PROVISION 2440 24.90
NET PROFIT 560 2.00
Punjab National bank reported its quarterly earnings today. The Q2FY18 results registered beat on street estimates. The NII for the quarter was 2.6% higher than the street estimates of Rs.3913 crore. While net profit for the quarter was 53% higher than the street estimates of Rs.366 croreNII for the quarter rose by 3.5% yoy to Rs.4015 crore in Q2FY18 vs Rs.3879 crore in previous year corresponding quarter. This was largely aided by equal increase in interest earned and interest expended by 4% yoy each to Rs.12299 crore & Rs.8284 crore respectively for Q2FY18.Asset quality saw major improvement for the quarter. GNPA’s & NNPAs for the quarter declined by 33bps & 66bps respectively to 13.33% & 8.44% for Q2FY18 vs 13.63% & 9.1% for Q2FY17.Also, GNPA’s for the quarter edged up by 2% yoy to Rs.57630 crore in Q2FY18 vs Rs.56465 crore in Q2FY17.The provisions for the quarter advanced by 25% yoy to Rs.2440 crore vs Rs.1954 crore in Q2FY17. The resultant net profit for the quarter rose by 2% yoy to Rs.560 crore in Q2FY18 vs Rs.549 crore in Q2FY17.This was also aided by 5% yoy increase in other income for Q2FY18.Advances for the quarter rose by 4% yoy to Rs.410265 crore vs Rs.393730 crore in Q2FY17.
ONGC - The company plans to almost double the natural gas production within 5 years till 2022 as it plans to invest into exploration of new field discoveries, as per media reports. The company also intends to improve recovery from its existing ageing fields.The new field discoveries will revive the company’s existing portfolio consisting majorly the ageing fields and will add to higher returns resulting from the production of oil and gas out of such new discoveries.Based on this strategy, the corporation plans to increase oil production from 22.25 million tonnes in FY 2017 to 27 MT till FY 2022 and also to increase natural gas output from 22 billion cubic meters to 42 billion cubic meters.The Company, in its September, 2017 quarter press release has mentioned that it has already notified 9 discoveries in FY 2018 that will enhance the overall oil and gas output of the company. The Company posted a good set of second quarter earning by an increase of 3.1% in its net profit.The stock is trading at the price Rs 187.40, down by Rs 0.60 or 0.32% on NSE . The promoters holding in the company stood at 68.07 % while Institutions and Non-Institutions held 18.06 % and 13.87 %. The stock is currently trading above its 200 DMA.
HIMADRI SPECIALITY - Himadri Speciality Chemicals told the exchanges that it has approved raising Rs 1000 Cr via securities. According to the filing, the board of directors approved the raising of capital through issue of securities convertible into shares.The raised capital will be utilized for capacity expansion, approved for its carbon black manufacturing facility in West Bengal. This would produce 30,000 Tn per annum of yield.The Board also gave approval to set up a manufacturing facility for advance carbon material with annual capacity of 20,000 tn in West Bengal.
UCO BANK - The stock of UCO Bank reached 3 month highs. The sharp surge came after the company planned to sell its stake in 2 steel companies.Cogencies reports that the stocks of UCO Bank hit a high of Rs 38.40. The consortium of lenders, led by UCO Bank, is looking forward to sell controlling stake in two East-India based private stainless steel companies. The stake sale is planned to recover the combined debt of Rs 3150 Cr. The two companies are BRG Iron& Steel Co. And Bhuvee Stenovate, a part of BRG Group, a prominent stainless steel player based out of West Bengal. The promoters holding in the company stood at 80.5 % while Institutions and Non-Institutions held 13.49 % and 6 % respectively.
NTPC - NTPC shares dropped by 2%. The dip came after the news of explosion in its Unchahar Plant hit the market.There was an explosion in the boiler of Feroze Gandhi Unchahar Thermal Power Station situated in Rae Bareli in Uttar Pradesh. The explosion killed 26 people, and injured more than 100.Following the news built up, shares of the company fell down.The company informed that the Unit No. 6 of Feroze Gandhi Unchahar Thermal Power Station, located in Uttar Pradesh, is under shutdown. The shutdown has been initiated after an accident happened on the evening of Wednesday, November 01, 2017.As per the filing, the other 5 units of the Thermal Power Station are operating normally.
RAJESH EXPORTS - Rajesh Exports has procured a prestigious order for its products for a value of Rs 634 cr.Rajesh Exports is the largest manufacturer gold products in the world. Across its various manufacturing facilities Rajesh Exports has a total installed capacity to manufacture 400 tons of world class gold products per annum including the finest plain and studded jewelry, medallions and coins.The order has been procured beating global competition from a well established and prestigious global white label importer from UAE. The said order is to be completed by February 2018.Company will be executing the order from its facility, which is the world’s largest gold manufacturing facility. This facility has a processing capacity of 250 tons of jewelry and gold products per annum. Company is confident of executing this order well within the time frame on the back of its expertise, skilled craftsmen, artisans and exceptionally strong backward integrated infrastructure.
BAJAJ AUTO LIMITED - Bajaj Auto Limited has reported a net increase of 15% in exports to 1.35 lakh units in the October, 2017 as against 1.17 lakh units in October, 2016. This is majorly on account of 20% increase in the export of motorcycles to 1.14 lakh units. Although there has been a dip in exports of commercial vehicles by 7 % to 21,029 units.The Company has also achieved its highest ever domestic sales of commercial vehicles by 38% increase to 35,657 units in October, 2017 to 25,784 units in October, 2016. There is a minor shrink in domestic sales of motorcycles by 1% to 2.11 lakh units.Overall, the domestic sales have grown by 4 % to 2.47 lakh units in October, 2017 as against 2.38 lakh units in October, 2016.The Company’s total sales have increased by 7 % to 3.82 lakh units in October, 2017 as against 3.56 lakh units in October, 2016.
HERO MOTOCORP - Hero MotoCorp was down 2%, as its September quarter net profit at Rs 10.1 billion came flat and fell short of market expectation of Rs 10.4 billion.However, Hero MotoCorp said that the first half of 2017-18 has been exciting with the industry rebounding in the festive quarter, and with new product launches. The company added that it is confident of strong growth in Oct-Mar. The current market cap of the company is Rs 76217.19 crore.Hero Moto Corp is the world’s leading two-wheeler manufacturing company. It enjoys market share of 37% in domestic two-wheeler industry and 51% market share in domestic motorcycle market in FY17.
SHREE CEMENTS - Shree Cements has won auction for coal mines in Baroud OC, Chhattisgarh at the premium price of 45.59% over the notified price of Rs 1700 per ton for allocated quantity of 70,300 tonnes per annum.It has also won auction for coal mines in Jampali OC, Chhattisgarh at the premium price of 50.85% over the notified price of Rs 1180 per ton for allocated quantity of 5,500 tonnes per annum. The stock closed on Nov 1, 2017 at a price of Rs 19,276 up by 1.83% or Rs 346 on NSE. The Promoters hold 64.79 % stake in the company.Shree Cement Ltd is one of India’s premier cement makers and the largest in North India. The Company has three brands under their portfolio, namely Shree Ultra Jung Rodhak Cement, Bangur Cement and Rockstrong Cement. Their manufacturing units are located at Beawar, and Ras in Rajasthan.The Company also operates in short term power market, its power sales depend on the prevailing fuel prices as it directly affects its cost of generation and consequently sale price.The Company has successfully bided and won the auction for coal linkages from coal mines of South Eastern Coalfields Ltd. for its captive power plant at Raipur, Chattisgarh.
COTTON INDUSTRY BODY URGES CCI TO PROCURE 100 LAKH BALES IN 2017-18 - With a bumper Cotton crop expected during the 2017-18 season , the Indian Cotton Federation has urged the union government to direct the state-run CCI to procure 100 lakh bales .While a record crop of 400 lakh bales is estimated for the 2017-18 season making India the biggest producer of Cotton for the third consecutive season, mill consumption will be around 300-310 lakh bales, ICF noted.Cotton sowing has reached a record high of 122.6 lakh hectares in the country during the just concluded kharif season on the back of good rainfall in key growing regions.According to lnternational Cotton Advisory Committee's latest report, a similar situation is expected in other Cotton growing countries, resulting in 75% surplus cotton globally for 2017-18."Due to the oversupply in domestic and global markets and due to liquidity issues, there would not be sufficient buyers in the lndian market which would affect the Indian cotton farmer very badly," ICF stated.About 70% of the Cotton is brought to the market by farmers between November and February. The value of this cotton would be about Rs 58,300 crore."Boosting Cotton exports by incentives or other means would only bring negative impact as it would bring down global Cotton prices, which would further affect domestic market prices and also increase in import of Cotton," the ICF said.
METAL INDEX TRADED LOW DUE TO WEAK CHINA’S OCT MANUFACTURING DATA - Nifty Metal Index was trading in red after the weak results of China’s Oct Manufacturing Data. China’s manufacturing sector showed greater-than-expected slowdown, followed by the firmness in the dollar against peer currencies. This weighed on shares of domestic metal companies and dragged the Nifty Metal Index by more than 2% to 3853.70 level.China’s manufacturing sector growth was weakened due to reduction on new orders in October, and the Manufacturing Purchasing Managers’ Index falling to 51.6 from 52.4 in September.While the dollar has edged lower than last week's three-month highs, it continues to be firm. A stronger dollar makes metals less affordable for buyers paying with other currencies.Nifty metal ended trade at 3,879 level, down by 1.64%.
JAIPRAKASH POWER - Jaiprakash Power Ventures extended gains for the third day and rose over 4% on reports that Canada's Brookefield Asset Management and Resurgent Power have bid for the debt-ridden company.As per reports, Resurgent Power, in which Tata Power and ICICI Ventures hold stake, and Brookfield were among five companies that showed interest in Jaiprakash Power Ventures.In February, Jaiprakash Power had converted Rs 30.58 billion of its debt owed to banks and financial institutions into equity upon invocation of Strategic Debt Restructuring Scheme. As on Mar 31, the company's total consolidated debt stood at Rs 200.1 billion.
RELIANCE COMMUNICATION - Reliance Communication surged 12% at around 10 AM today after the debt-laden company presented a new plan to the banks, offering controlling stake in the company after its earlier merger proposal fell flat.According to an official release, RCom will pay off up to Rs 17,000 crore of its debt, out of the proceeds of monetization of Spectrum, Towers and Fiber and MCN assets. RCom will pay additional Rs 10,000 crore of its debt, out of the proceeds of sales and commercial development of DAKC and other prime real estate assets across 8-metros. The company has offered to convert debt of Rs 7,000 crore into 51% of the Company’s equity, as per the SDR guidelines of the Reserve Bank of India. Shareholders of the Company at the Annual General Meeting held on September 26, 2017 have already approved issuance of equity shares to lenders by conversion of loans.Reliance Communication is under a standstill period till December 2018 and expects to complete the SDR process as per applicable RBI guidelines. Reliance Communication (RCOM) is a diversified telecom service provider offering wireless, wireline and DTH services. It is a dual technology wireless player. It has RMS of 5% and subscriber base of 10.3 crore as on 31st March 2016.
TATA TELESERVICES - The shares of Tata Telservices Maharashtra gained to lock in 5% upper circuit at Rs 7.90. This is the one-month high, which the stocks have achieved .The surge in the share price came after the holding company, Tata Sons, announced to infuse Rs 300bn into the company in 2017-18.The infused capital through quasi-equity and intercorporate loan will be used to pay its Rs 310bn debt and payment of spectrum fees.In October, the two companies, Tata Teleservices and Tata Teleservices Maharashtra, were planning to merge their consumer mobile services with Bharti Aitel in a debt-free, cash-free deal.So far in 2017, the stock has gained by over 31%.
JET AIRWAYS - The stock has rocketed by 33% from its quarterly price low of Rs 468 made on October 23, 2017 and closed at a closing price of Rs 623 on November 3, 2017.The quarterly results of the company for September, 2017 quarter are to be declared on December 14, 2017.Earlier this week, the company had announced termination of several expatriate pilots. The airline has handed pink slips to 30 expatriate pilots since April.The airline has handed pink slips to 30 expatriate pilots since April. This will have a direct impact on the operating profits of the company.Also, an anticipated increase in air travel passengers and persisting passenger load factor on account of festive season would result into increase in the operating revenues of the company.Jet Airways is second largest commercial airline in India with 19% domestic market share as of FY17. Domestic segment contributed 45.4% while international segment contributed 54.6% to its FY17 revenue.The promoters of the company hold 51% stake in the company.
TATA POWER - Tata Power to raise up to Rs 3,500 crore on private placement basis.Tata Power Company has received an approval for issuance in one or more tranches, of non-cumulative, redeemable, taxable, listed, rated securities in the form of Non-Convertible Debentures up to an aggregate amount not exceeding Rs 3,500 crore.It is for tenor not exceeding 15 years from the date of issue on private placement basis to any persons, entities, bodies corporate, companies, banks, financial institutions and any other categories of eligible investors permitted to invest in the NCDs under applicable laws.The board of directors at its meeting held on November 3, 2017 has approved for the same. This is positive for the stock as it would help the company may refinance some part of debt which would lower its finance cost and it may also help it to finance its expansion plans.Tata Power's target is to take renewable’s proportion to 30-40% of total generation portfolio, which is a key growth driver for it. Also, its endeavour to prune debt, if successful, could be a key trigger for the stock.
POWER GRID - Power Grid is planning to raise Rs 14,000 cr via bonds in FY18. The funds will be used for capital expenditure of Power Grid and providing loans to wholly-owned projects.The move is positive for the company as it would help the company to execute and capitalize its pending projects. It also expects new orders from Indian railways for electrification.PGCIL has a strong project pipeline of ~Rs1,40,000 cr, which ensures strong visibility for capex and project completion over FY17-19E. PGCIL can sustain high capitalisation to capex ratio at more than 1.3x over the next 2‐3 years led by stepped‐up focus on commissioning.PGCIL has strongest earnings growth within the sector, best operating matrix across utilities, receding regulatory and sectoral risks, and inexpensive valuations.
HCC - Shares of Hindustan Construction Company or HCC slipped 6% after the company announced its weak Q2 Results. In a filing made to the exchanges, the company announced its Q2 results on late Thursday.The company reported a decline in profit by 50% to Rs 11.6 Cr. In three session decline, the stock slipped by nearly 7%. Though the revenue from operations rose to 6.5% YoY to Rs 970 Cr, the bottomline got weighed down by 90 basis point to 15.3%.The stock managed to pull out of its intraday lows after it announced that its Joint Venture with AL FARA’A secured an order from Maharashtra Metro Rail Corp for Pune Metro Rail Project.
VEDANTA - In the trading hours of Friday, shares of Vedanta Ltd were seen rising marginally, even after the company posted 47% rise in PAT for Q2. Its consolidated net profit grew to Rs 2090 Cr. This was marginally lower than the estimated profit of Rs 2172 Cr.The rise in net profit was led by continued strong volumes and price growth for its aluminium, copper and zinc operations. The company expects the second half of the current financial year ending March to be much stronger.
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