Tata Teleservices zooms 72% in 3 days

Tata Teleservices zooms 72% in 3 days

Shares of Tata Teleservices (Maharashtra) (TTML) were locked in upper circuit for the third straight day, up 20% at Rs 4.86 on the BSE on Wednesday as talks of reviving the ailing telecom services provider gathered steam.
The stock of the Tata group telecom services company was trading at its 52-week high. It has zoomed zoomed 72% in the past three days from the level of Rs 2.82 on Friday.
The Tata group is looking at reviving Tata Teleservices by taking the latter’s technical expertise and enterprise solutions for its SuperApp, which is being built.

The Tata SuperApp is expected to bring all the group’s products as well as services under one platform and enable sales to consumers directly. The SuperApp is targeted to be launched by December this year.
As of September 30, 2020, the promoters, Tata Teleservices (48.30%), Tata Sons Private Limited (19.58%) and Tata Power (6.48%) have collectively held 74.36% stake in TTML. While, individual public shareholders hold 22.89% stake in the company, shareholding pattern data shows.

TTML provides telecommunication services to its subscribers in Mumbai and Rest of Maharashtra (including Goa) telecom circles. Tata Teleservices (TTSL) provides telecommunication services in Pan India, except Mumbai, Rest of Maharashtra (including Goa), Jammu & Kashmir, North East and Assam.

TTSL also operates and maintains National Long Distance service network within territorial boundaries of India under license granted by Government of India. TTML and TTSL share certain infrastructure between them to achieve optimum cost of operations and also seamless connectivity as part of offering such services across the Country to their respective subscribers. TTML and TTSL are conducting business under one single brand ‘Tata Tele Business Services’ with no overlapping geographies or conflicting businesses.

TTML has successfully completed the demerger transaction of its consumer mobile business to Bharti Airtel on July 1, 2019. The company in 2019-20 annual report said, the enterprise segment of the telecom business is projected to witness growth in the years to come on the basis of wide optical fiber network of around 132,000 kms. (TTSL+TTML).

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HUL: Q2 net profit rises 9%

HUL: Q2 net profit rises 9%

Shares of Hindustan Unilever (HUL) edged lower Wednesday, despite reporting strong performance for the July-September quarter.
On Tuesday, after market hours, the Lux soap maker posted an 8.6% rise in consolidated net profit at Rs 1,974 crore during the quarter under review as against a net profit of Rs 1,818 crore in the same quarter a year ago.
Revenue from sales of products came in at Rs 11,510 crore, up 15.19% from Rs 10,223 crore a year ago.
The board also declared an interim dividend of Rs 14 per share.

HUL’s performance has to be evaluated in the light of the challenging economic environment. It’s growth has been competitive and profitable, which continue to demonstrate execution prowess, agility, adaptability, resilience.
Its operations and service levels are now back to pre-Covid levels and have accelerated the pace of digitizing the operations under the ‘re-imagine HUL’ agenda.
HULs’ household care segment delivered strong performance across all segments led by continued penetration gains. While in fabric wash, they have reduced the prices to pass on benefits of lower commodity costs to consumers, the category consumption of laundry has been adversely impacted due to confined living.

The skin cleansing segment grew in double digits on back of a very strong performance in ‘Lifebuoy’ and a good delivery in ‘Lux’.
The hand sanitizers and handwash segments continued to gain penetration and have delivered robust growths. Its oral care grew in double digits with accelerated momentum in ‘Close Up’, while hair care also grew in double digits.
Strong savings funnel, judicious and calibrated pricing in tea, synergies in nutrition have enabled HUL to successfully manage headwinds of commodity inflation and adverse mix.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Oberoi Realty: Building on expectations

Oberoi Realty: Building on expectations

The share price of Oberoi Realty surged in trade on Tuesday as hopes of better earnings prospects continue to fan investors expectations. The stock gained as much as 14.35% to Rs 446.15 per share on the NSE.
On Friday, the Mumbai-based real estate developer reported a flat consolidated net profit figure at Rs 137.74 crore on an yearly basis (YoY). The income declined 36% YoY to Rs 325 crore during the quarter ended September 30, 2020.
Despite the fall, the company’s management has declared that it has sufficient liquidity and expects to fully recover the carrying amount of its assets. The group will continue to monitor any material changes on future economic conditions.

The real estate developer is planning to do a platform deal with investors to unlock the value of its rental portfolio and also to fund growth, with the aim to develop a strong rental portfolio, especially in the office segment.
In the residential segment, management targets to surpass FY20 presales in FY21, driven by new launches in 2HFY21.
Oberoi is planning to launch three projects in H2FY21 – Sky City Phase 2, Exquisite Phase 3 and Thane – which should help drive FY21 sales higher than FY20.

On the lease income front, the management is reconsidering creating a lease asset platform with a private equity partner. It will likely shed a minority stake in the lease asset portfolio. This will help establish clear valuations, accelerate lease asset build-out and allow eventual REIT of the assets.
For malls, Oberoi is already offering a blanket 50% discount on FY21 base rentals and a 1-year lease extension. This can drive in Rs 145 million catch-up in mall revenues.
Such positive comments will obviously trigger re-rating in its valuation.

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Hindustan Copper: Govt mulls stake sale!

Hindustan Copper: Govt mulls stake sale!

Shares of Hindustan Copper surged more than 10% Tuesday on media reports suggesting the Centre may look at strategic sale of the only producer of copper concentrate in India, in a bid to meet the ambitious disinvestment target of Rs 2.1 trillion for 2020-21.

NITI Aayog Vice-Chairman Rajiv Kumar is set to chair a meeting on October 27 to discuss the possibility of strategic disinvestment of Hindustan Copper, the media report suggested. The NITI Aayog makes recommendations on strategic sales of state-owned units to the government.
Hindustan Coppers’ operation continues to struggle from the paucity of funds. Last month, it’s board of directors was scheduled to meet for deliberating on various proposals, including raising of up to Rs 200 crore via preference shares. However, the meeting was cancelled due to lack of time.

The board also could not take up a proposal to modify the object clause of its qualified institutional placement (QIP) to ‘expansion/ capex plan and general corporate purpose’ in place of ‘expansion/capex plan’.
Meanwhile, Hindustan Copper entered into a memorandum of understanding with Hindalco Industries for long-term purchase and sale of copper concentrate produced by the former.
With this partnership, the companies have moved towards import substitution, reducing the nation’s dependence on copper concentrate sourced from abroad.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

MRPL board approves acquisition of ONGC stake in OMPL

MRPL board approves acquisition of ONGC stake in OMPL

Shares of Mangalore Refinery & Petrochemicals (MRPL), rallied more than 2% to Rs 26.65 apiece on NSE after the company’s board approved acquisition of OMPL’s shares from ONGC.
MRPL board, in its 232nd meeting held on October 19, 2020, approved acquisition of 1,24,66,53,746 equity shares of Rs 10 each of ONGC Mangalore Petrochemicals (OMPL), a subsidiary of MRPL, from Oil and Natural Gas Corporation (ONGC).
MRPL was holding 51% of the paid up equity of OMPL, which has been increased to 99.99% pursuant to the acquisition of equity shares from ONGC.

The merger of MRPL-OMPL was needed for OMPL and MRPL in terms of revenue growth, as an integrated refinery operations will yield better benefits.
Interestingly, this merger will facilitate ONGCs’ strategy of vertical integration. After accomplishing the first step of OMPL-MRPL merger, the next step is to merge MRPL with HPCL. ONGC may be slightly short of meeting Rs 35,000 crore capital expenditure target for FY21. This is also due to difficulties in movement of essential equipment from overseas following restrictions on movement during the pandemic.

Oil demand is likely to be 10 million barrel per day less in 2020, which the company expects to pick up again with containment of COVID-19. However, oil prices will remain an important determinant for the sector’s growth and investment prospects.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Spencer Retail: Radhakrishnan Damani raises stake

Spencer Retail: Radhakrishnan Damani raises stake

Spencer Retail share price jumped over 6% Monday in early trade after ace investor Radhakishan Damani raised his stake in the company.
As per the BSE shareholding pattern for the quarter ended September 2020, Radhakishan S Damani increased his stake to 2.20% from 2.09% in the quarter ended June 2020.
He bought additional 3,25,000 share in the company in the July-September quarter from 16,61,324 shares in June 2020.

It may be recalled, in August, the multi-format omnichannel retailer raised Rs 80 crore by selling 1,06,04,563 rights equity shares at an issue price of Rs 75 per share. The money was raised for working capital requirements (Rs 60 crore) and rest for general corporate purposes.
The rights entitlement ratio is 2 rights equity shares for every 15 equity shares held by the eligible shareholders on the record date.

Spencer’s Retail reported a 27% fall in standalone revenue from operations at Rs 439 crore for the first quarter ended June 30 as compared to the same period last year, while it posted a net loss of Rs 47 crore as compared to a net profit of Rs one crore in the year ago period.

The result reflects the impact of lockdown, limited operational hours, and restrictions on selling of higher margin non-essential items such apparel, general merchandise and other non-food items. The loss of business hours was partly offset by the e-commerce business which grew five-fold in the quarter under review, while the out-of-store business such as e-commerce, sales in resident apartments and delivery business constituted double digit share of sales.

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Federal Bank Q2 net falls; Asset quality improves

Federal Bank Q2 net falls; Asset quality improves

Federal Bank share price jumped over 5% Monday morning session as investors expect improvement in asset quality and other key parameters in the near future.
For the September quarter, the lender reported a 26.2% on-year decline in profit, impacted by significant step up in provisions to further strengthen the balance sheet, but there was an improvement in asset quality.
Profit for the quarter declined to Rs 307.62 crore, compared to Rs 416.7 crore in the year-ago period. The strong growth in NII, other income and operating profit limited the decline in profit.

Net interest income surged 22.8% on-year to Rs 1,379.85 crore with muted loan growth of 6% YoY and net interest margin at 3.13% for the quarter, while deposit growth was 12% in Q2.
Provisions and contingencies increased by 135.2% on-year to Rs 592.06 crore in the quarter ended September 2020, and the sequential increase was 50%.

Asset quality has seen improvement with gross non-performing assets (NPA) falling 12bps sequentially to 2.84% in Q2FY21, while net NPA declined 23 bps QoQ to 0.99% at the end of September quarter.
Non-interest income increased 21% on-year to Rs 509.33 crore and pre-provision operating profit climbed 40% to Rs 1,006.53 crore in Q2FY21.

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HDFC Bank Q2 performance betters expectations

HDFC Bank Q2 performance betters expectations

Shares of HDFC Bank nudged lower Monday even after beating street’s expectations of earnings expectations in otherwise tough operating environment.
On Saturday, the largest private sector lender reported 18.4% rise in standalone net profit at Rs 7,513.10 crore during the September quarter.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16.7% to Rs 15,776.40 crore from Rs 13,515 crore in the year-ago quarter.
Core net interest margin (NIM) came in at 4.1%.
Provision and contingencies stood at Rs 3,703.50 crore for the September quarter, which included specific loan loss provisions of Rs 1,240.60 crore and general and other provisions of Rs 2,462.90 crore.
The private lender had made provisions worth Rs 2,700 crore in the year-ago quarter. Provisions, however, were lower than June quarter’s Rs 3,891.52 crore.
Asset quality improved, with gross non-performing assets (NPAs) falling to 1.08% of gross advances from 1.36% in June quarter and 1.38% in the year-ago quarter.
Pre-provision profit for the bank rose 18.1% to Rs 13,813 crore.
Total deposits rose 20.30% YoY to Rs 12,29,310 crore as of September 30, while advances were up 15.8% at Rs 10,38,335 crore.
Domestic retail loans grew 5.3% while wholesale loans were up 26.5% for the quarter. Overall, the retail loans stood at 48% of total advances. Overseas loans accounted for 3% of total advances.
HDFC Bank numbers are good in the context of the environment in which they are operating. They have put out a lot of data which indicates how they would have done if they had to recognise the NPAs which are not yet recognised because of the norms laid down by the Supreme Court. That is the positive part and that also indicates stability.
The loan growth was decent for the bank. The only chink in the armour is that a large part of the growth in the advances has come from the corporate rather than the retail book which was the trend earlier. The retail book grew by just 5% year on year as they have been running cautious as many of the banks and large NBFCs expect the pain to be more on the retail side this time because of job losses etc. That is where they have been playing cautious and that led to the NIM compression because a focus on the corporate side compresses NIMs.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Hind Zinc Q2 net profit falls 6.7%

Hind Zinc Q2 net profit falls 6.7%

Shares of Hindustan Zinc rose 4% on Wednesday even as reported slightly disappointing earnings performance for the July-September quarter. Higher dividend along with improved outlook has nudged investors confidence in the metal miner.
The Vedanta group company reported a 6.7% drop in net profit to Rs 1,940 crore for the quarter ended on September 30, 2020, due to high expenses. It had posted a net profit of Rs 2,081 crore in the year-ago period.
The price of zinc was down one per cent at $2335 a tonne and lead slipped eight per cent to $1873 a tonne. However, silver was up 43% to $24.26 an ounce while rupee depreciated six per cent to 74.24 against the dollar in the quarter under review.

It raised Rs 5,020 crore through non-convertible debenture and Ts 4,778 crore via short-term commercial paper. Following this, the net cash available with the company has come down to Rs 17,833 crore, against Rs 27,631 crore.
Hindustan Zinc declared highest interim dividend in 12 years, days after the failed delisting offer of its parent, Vedanta. The subsidiary announced a dividend of Rs 21.3 per share—implying a dividend yield of 9.5% to its closing price as on October 20, according to a company filing with the stock exchange. The record date for paying the dividend is October 28.

Hindustan Zinc had paid a higher dividend of Rs 30 per share in July 2008.
Vedanta, which holds 64.92% stake in Hindustan Zinc, is expected to get nearly Rs 5,842.8 crore of the total interim dividend of Rs 9,000 crore, but it’s not clear if the same will be passed through to Vedanta’s shareholders. The metal major has yet to distribute the dividend it received from its subsidiary in the quarter ended March.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

JK Tyre: A safe ride

JK Tyre: A safe ride

JK Tyre and Industries share price surged 6% to Rs 64.60 apiece on NSE after the company reported nearly 7 % on-year rise in net sales at Rs 1,473 crore in the July-September quarter.
The tyre maker’s net sales stood at Rs 1,378 crore in the corresponding quarter of the preceding fiscal.
EBITDA came in at Rs 228.08 crore in September 2020, up 11.92% from Rs 203.78 crore in September 2019.
JK Tyre reported a 34.59% decline in its consolidated net profit at Rs 109.68 crore for the quarter ended September. The company had posted a net profit of Rs 167.7 crore in the July-September period of previous fiscal. While revenue from operations increased to Rs 2,274.84 crore as compared with Rs 2,154.95 crore in the year-ago period. 

JK Tyre achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter.
JK Tyre was well-positioned to take benefit of the emerging opportunity, and as a matter of fact, it could achieve healthy sales in the replacement market, doing better than the industry. The renewed thrust on exports resulted in higher export sales of Rs 337 crore during the quarter.
The tyre maker’s share price has more than doubled, rising 109% from March low of Rs 31.50 apiece.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.