Friday, 22 September 2017

22 September 2017 - Views & News


ALERT: India eyes extra $7.7 billion spending to halt economic slowdown – Positive for EPC companies like L&T, Sadbhav Engg, IRB, KNR Construction among others as govt spending likely on infra; additional export driven sectors could also get some incentives (sentimentally positive push to engg, textiles, garments, pharma, IT). On the Negative side; the bond yield could harden further if govt slips on fiscal consolidation which is negative for banks and NBFCs.

Cadila gets USFDA approval for Itraconazole capsules (used to treat fungal infections) which shall be manufactured at formulation facility at Moraiya – Positive for Cadila.

KNR constructions: The company’s Joint Venture KNR-HES-ACPL has bagged order worth of Rs. 884..47 Crores towards formation of Konda Pochamma Sagar for a capacity of 15.00 TMC in Telangana to be completed within a period of 18 months from the appointed date. Positive for KNR Constructions.

Tata Motors: Launches compact SUV Tata Nexon at a starting price of Rs 5.85 lakh; positive read thru as it will enable market share gains in UV space…(detail in other news)


Tata Motors: Launches compact SUV Tata Nexon at a starting price of Rs 5.85 lakh; positive read thru as it will enable market share gains in UV space
Tata Motors launched it much awaited and first-ever compact crossover Nexon at a starting price of Rs 5.85 lakh, ex-showroom, Delhi. Nexon is a sub-four metre crossover and will compete with the likes of Maruti Brezza, Honda WR-V, Ford Ecosport and Mahindra TUV300. A standout aspect of the Nexon is its design, which is primarily due to the fastback-styled roof, raised stance and a muscular appeal, partly due to the flared wheel arches. The Nexon has been launched in both petrol (1.2 litre engine) and diesel (1.5 litre engine) versions and is based on a new platform. The Nexon also comes with some segment-first features including a pop-out style touchscreen on the top of the centre console. Beyond other options such as Bluetooth, AUX-in, USB and FM, the Nexon also gets a Jaguar F-Pace styled wristband key, which can be used to lock/ unlock the car and start the ignition as well. Nexon is company’s first product in fast growing compact UV segment and will enable Tata Motors to regain market share.

Real Estate, building materials sectors: Government unveils new policy to spur ‘Housing for All’ – positive read thru for Puravankara Projects, Mahindra Lifespace Developers, Godrej Properties, Ashiana Housing and Building material companies (Cera Sanitaryware, Kajaria Ceramics, HSIL, Somany Ceramics, Century Plyboards, Greenply among others)
The central government announced new PPP policy for affordable housing that allows extending central assistance of up to Rs2.5 lakh per house that are to be built by private builders even on private lands. Eight PPP models have been provided for the private sector to invest in the affordable housing segment. It has also opened the potential for private investments in affordable housing projects on government lands in urban areas.

Unitech: The Supreme Court once again refused to grant bail to Unitech MD Sanjay Chandra insisting he could not be freed without ensuring that the interests of 16,300 home buyers in 61 of the developer’s projects were protected. The court also asked Unitech’s customers to decide whether they wanted the apartments they had booked or a refund of their money. Negative read thru for the stock.

Adani Power: Shareholders have approved a proposal to hive off its flagship Mundra power station (4620MW) to its subsidiary. Adani Power board had in June approved a proposal to hive off its flagship Mundra power station to its subsidiary so that it can focus on investment and power generation separately.

Oil & gas: Oil PSUs planning to buy 20% stake in a producing oil field in UAE; sentimentally positive for Oil India, BPCL and ONGC
A consortium of Oil India, BPCL and ONGC Videsh is mulling to buy 20% stake in a producing oil field in UAE. No details about the reserves of the oil fields has been given neither the acquisition cost - sentimentally positive for Oil India, BPCL and ONGC.

Ashok Leyland: To broaden LCV exports; positive
Ashok Leyland will start exporting LCVs with left hand drive version as 80% of the world market is for left hand drives. The company is working on the LHD version of Dost LCV and the Mitr range. Restrictions imposed on the company by it earlier JV partner, Nissan had limited exports only to the SAARC region, but now the company is in a position to export LCVs to a wider market and is targeting the Gulf nations, Russia, Africa, Ukraine and south-east Asia. It already has network in place and will soon add LCVs to the exports.

Eicher Motors: Plans to invest Rs 400-450 cr in the CV business in FY2018 on new products and BS6 technology. The company expects MHCV industry revial seen in July-August 2017 to continue and expects strong growth in H2FY2018 on back of demand revival from fleet owners post temporary blip due to GST and transition from BS3 to BS4 norms. Positive

Sunil hitech: allots 11.9 crore worth warrants to promoters & non- promoters at 14.43/share

Zee Entertainment: Forays into global production with a studio in Canada
ZEEL has set up a production company, ZEE Studios International in Canada. This marks ZEEL’s entry into global production for mainstream audiences which will facilitate production requirement for ZEEL’s platforms as well as international markets.

Bharti Airtel: UIDAI lens on Airtel over opening payments bank account using eKYC – negative read-thru
The UIDAI in the notices stated that Airtel retailers are allegedly opening Airtel payments Bank account at the time of performing Aadhaar e-KYC verification without informing the purpose of e-KYC and also without taking informed consent of the customer. Acts of not taking consent and informing the purpose of authentication was a violation of rules and punishable with financial penalties.

Thursday, 21 September 2017

21 September 2017 - Views & News


Markets are expected to open flat to negative. Further extension on the upside can be expected once the swing high of 10179 is crossed; beyond which 10300-10385 would be the short term target area. On the flip side, the gap area of 10131-10115 is proving to be a key support zone from near term perspective.

Nifty Spot Levels

Support 10115 – 10043 – 9950
Resistance  10179 – 10310 - 10385


• The S&P 500 and the Dow ended slightly higher on Wednesday, adding to their string of closing records, after the Federal Reserve signalled it expects another interest rate hike by year-end and disclosed timing for reducing its balance sheet.
• The Fed left rates unchanged for now, as was widely anticipated, but investors' expectations changed for December after the US central bank signalled one more rate hike by year-end despite recent weak inflation readings.
• In line with expectations the Fed said it would begin in October to cut its roughly USD 4.2 trillion in US Treasury bonds and mortgage-backed securities holdings by initially cutting up to USD 10 billion each month from the amount of maturing securities it reinvests.
• The Dow Jones Industrial Average rose 41.79 points, or 0.19 percent to end at 22,412.59, its seventh straight record close.


ALERT: NPPA caps prices of 39 drugs used to treat cancer, malaria – Negative for Cipla, IPCA, Sun, Biocon, Cadila, Natco.
National Pharmaceutical Pharma Authority (NPPA) has fixed ceiling price for 39 (18 drug price is fixed while balance 21drug price is revised) more drug formulations (which includes drugs used to treat cancer, tuberculosis, Malaria and hepatitis B). With the latest price revision, the prices of around 821 formulations that are on the national list of essential medicines (NLEM) 2015, have been capped. The normal range of reduction is between 10-30 per cent.

RIL: Plans to expand refinery capacity by 30mmt to 100mmt by 2030 - no near term impact on financials; sentimentally positive 
Reliance Industries (RIL) may expand its refining capacity at Jamnagar by 30mmt to 100mmt by 2030 as per media reports. The expansion plan implies capacity CAGR of 3% over 2017-2030, which is largely in-line India’s long term petroleum consumption growth outlook – No near term impact on financials; sentimentally positive for RIL.  

Max Financial Services: As per media reports, Max Financial Services (MFS) is in talks with Birla Sun Life to explore merger of their life insurance businesses. While the promoter (Analjit Singh) of MFS is also said to have talks with UK based Northern Trust to sell 30% stake - stock to remain in focus

Bharat Electronics: Management of BEL at its annual analyst meet 2017, stated at order inflows momemtum to continues and expect 15000 inflows annually over FY18-20E (double digit growth). For FY18E, management guided for 16% revenues growth. BEL-Thales JV will take time to ramp up.  Stock to be in focus, we have a HOLD rating on the stock with TP of Rs200.

Novartis: Board meeting on 25th September 2017 to consider buyback of equity shares – Positive for Novartis.

Dishman Carbogen Amcis Limited (DCAL – 540701), erstwhile Dishman Pharmaceutical Limited, will be listed today (21st September 2017) in T2T segment for 10 days.


ICICI Bank: Prudential and ICICI Bank plan to sell 6% stake in ICICI Prudential Life insurance company – Positive read thru for ICICI Bank

Crompton Greaves, Havells and Finolex stock to be focus: IFMA approaches GST Council for reduction in tax on electric fans from 28% to 18% as to treat fans as a necessity item. IFMA said it is also working with the Bureau of Energy Efficiency, Energy Efficiency Services Ltd and Bureau of Indian Standards to develop a road map for manufacturing better energy efficient fans that would help to optimise power consumption and contribute to energy management. 
Automobiles: As per Moody's, Car sales in India are expected to grow by 9% in 2017 riding on the back of GST regime as well as new product launches. Indian car sales will remain robust, growing 7% in 2018, supported by the impact of India's new goods and services tax (GST) as well as new model launches. Positive read thru but stocks are already factoring similiar healthy growth of about 8-10%.

BHEL: eyes rail track electrification order

L&T:  looks at North Africa to offset Hydrocarbon slip in India

Yes Bank: Goes Ex-date for 1:5 stock split

Mahindra and Mahindra: Eyes half of farm equipment biz revenue from abroad by 2019; positive
M&M is expecting half its revenues in the farm equipment business to come from overseas exposure by 2019. The company recently  announced acquisition of the manufacturing and foundry businesses of Turkish tractor company Erkunt Sanayi at an estimated cost of Rs 735 crore at the event. According to M&M, the acquisition could boost its top line by around Rs 600 crore annually. Turkey is the fourth largest tractor market in the world and Erkunt acquisition will help Mahindra foray into new markets such as the West Asia, North Africa and the CIS countries.

ONGC: To relinquish Raniganj CBM block; neutral read through
Oil and Natural Gas Corp (ONGC) is expected to relinquish coal bed methane block in Raniganj (West Bengal) as the block is difficult to be developed for commercial production - neutral for ONGC as street does not build any production from Raniganj block.

Unitech, Parsvnath Developers: The Supreme Court ordered Unitech to pay Rs80000 each to 39 home buyers at a residential project in Gurgaon as compensation for the mental agony caused to them by the company’s failure to deliver projects on time and towards litigation cost. In another case, the court asked parsvnath developers to pay interest at 10% per annum to 70 home buyers of its Exotica project in Ghaziabad for delay in giving possession of apartments. Negative read thru for both the stocks.

Matrimony.com: Shares of Matrimony.com will be listed today and admitted to dealings on the Bombay Exchange in the list of 'B' Group of Securities. Internet companies like Info-edge and Just dial to remain in focus today.

IT Sector: NASSCOM signs agreement with local Chinese government to push for AI
NASSCOM signed a framework agreement with Dalian Municipal People's Government, allowing more Indian companies to penetrate into huge Chinese software market. Dalian houses China's most high tech manufacturing firms specialising in ship building, automotive and chemical industries.

RCom: Ericsson, RCom first round talks are said to be inconclusive – . Negative read-thru for Reliance communication and also for ADAG group stocks.
As per media news, the first round of talk between Ericsson and Reliance Communications has been inconclusive. Ericsson said it expected Rs 550 crore to be paid upfront because RCom had promised them that amount in different stages of the process. Ericsson, Reliance, State Bank of India are said to have discussed if an out- of-court settlement was workable. On September 11, Ericsson had filed for insolvency in the NCLT under the Insolvency and Bankruptcy Code to recover Rs1,150 crore from RCom for services and equipment it had earlier supplied.


ThyssenKrupp, Tata in 50:50 JV to form Europe's second-largest steel firm
M&M to buy Turkish tractor firm for Rs 815 crore
NBCC to launch 1,000 flats for sale during festive season
Tata Group to change face in next 10 years: Ratan Tata
Nasdaq-listed Yatra raises $15.4 mn in debt from Innoven Capital
Coca-Cola banks on local products to boost double-digit growth
Trai asks telcos to cut voice costs to level of OTT applications
Vedanta's Anil Agarwal to boost Anglo American stake by $2 bn
Shoppers Stop enters into commercial arrangement with Amazon India
Car sales in India to grow by 9% in 2017: Moody's
Hero MotoCorp surpasses 75 mn sales milestone
Reliance Home Finance to list on bourses on Friday
Zydus Cadila gets final FDA nod for skin disorder, hypertension drugs
Big Bazaar to launch 100 stores in next one year as part of expansion plan

Wednesday, 20 September 2017

20 September 2017 - Views & News


Sgx Nifty  -11 pts ‎Dow +39.45 pts ,Nsdq +9.96 pts , S&P +2.78 pts Bovespa -16 pts , Ftse +21 pts , Dax +2 pts , Cac +8 pts , Nikkei -7 pts now , Crude @ $50.22 brl (+0.32), Brent @ $55.30 brl (-0.08) , Gold @ 1313.98 (+3.38), Silver @ $17.363 (+0.08), Euro @ $1.1989, JPY @ $111.6200, INR @ $64.302

Today's Corporate Action 20th Sep Ex Date

ACE Final Dividend - Rs. - 0.3000
ALPHAGEO Dividend - Rs. - 4.0000
ASTAR Dividend - Rs. - 1.5000
BANARBEADS Dividend - Rs. - 1.0000
BASF Dividend - Rs. - 1.0000
CHAMANSE Dividend - Rs. - 0.4000
CHDDLTD Final Dividend - Rs. - 0.1000
COASTCORP Dividend - Rs. - 1.5000
CTL Dividend - Rs. - 0.0750
CYBERTECH Dividend - Rs. - 1.0000
GLENMARK Dividend - Rs. - 2.0000
GMDCLTD Dividend - Rs. - 3.0000
GOLKUNDIA Dividend - Rs. - 0.3500
GRANULES Final Dividend - Rs. - 0.2500
GSPL Dividend - Rs. - 1.5000
GUJGAS Dividend - Rs. - 3.0000
HINDUJAVEN Dividend - Rs. - 17.5000
HOPFL Dividend - Rs. - 3.0000
INANI Dividend - Rs. - 0.0400
INDIANVSH Final Dividend - Rs. - 0.0200
ITL Dividend - Rs. - 0.5000
JAGRAN Dividend - Rs. - 3.0000
JKIL Dividend - Rs. - 2.0000
JUPITERIN Dividend - Rs. - 0.1000
KOLTEPATIL Final Dividend - Rs. - 1.6000
KRIINFRA Final Dividend - Rs. - 0.2000
LOYALTEX Final Dividend - Rs. - 10.0000
MANCREDIT Dividend - Rs. - 0.2500
MIRZAINT Dividend - Rs. - 0.9000
MUKESHB Dividend - Rs. - 1.0000
NECLIFE Final Dividend - Rs. - 0.0500
NIDL Dividend - Rs. - 0.2500
OMAXE Final Dividend - Rs. - 0.7000
OMMETALS Dividend - Rs. - 0.2000
PODARPIG Final Dividend - Rs. - 1.0000
POLYMED Dividend - Rs. - 0.5000
SATRAPROP Dividend - Rs. - 0.1000
SHRJAGP Dividend - Rs. - 1.0000
SKCIL Final Dividend - Rs. - 1.0000
SMSPHARMA Dividend - Rs. - 0.2000
SOTL Final Dividend - Rs. - 13.5000
SSWL Final Dividend - Rs. - 3.0000
TALBROSENG Final Dividend - Rs. - 2.0000
UCALFUEL Dividend - Rs. - 5.0000
VIKASECO Final Dividend - Rs. - 0.0500
ZENLABS Dividend - Rs. - 0.2500

ALERT - Telecom: Telecom regulator (TRAI) has reduced interconnect usage charges (IUC) to 6 paisa from 14 paisa – Negative for incumbents like Idea, Bharti Airtel (as IUC contributed to 15%/10% of revenues and would result in 8%/4% cut in operating profits); Positive for Rel Com  and Reliance Industries (ie. JIO) as they pay more IUC than receive from other operators due to lower base of subscribers.

MEP Infrastructure: The company has received letter of Intent for toll & environment compensation charge collection at Border points from specified commercial vehicles entering Delhi – positive for MEP
The contractual amount for the said project is Rs1206 crores per annum payable to SDMC on a weekly basis. The period of contract is 5 years.

Indian Oil Corp: IOC has paid Rs 2935 crore to Odisha government as part of the settlement reached to get back part of the tax incentives for the Paradip refinery project in the state – Sentimentally negative only as it was expected and factored by analyst in their financial working

Tyres: Finance Ministry has accepted the recommendations of Directorate General of Anti-dumping & Allied Duties (DGAA) for imposition of anti-dumping duty (‘ADD’) of US$245-452/MT on truck and bus radial tyres imported/produced from China. The amount of duty is 9-14% of the tyre price and will remain in force for a period of five years. The move will enable domestic players regain market share in CV segment. Positive for MRF, Apollo tyres,  Ceat, and JK tyre 

Banking Sector: The Reserve Bank of India has assured banks that they can classify priority loans extended to defaulting companies in the bankruptcy process as standard debt in a move aimed at ensuring that entities which can be revived are able to raise resources - Positive for banks 


The Phoenix Mills: India Ratings and Research has upgraded the company’s long term issuer rating to ‘IND A+’ from ‘IND A’ indicating stable outlook. Short term rating too is upgraded from ‘A1’ to ‘A1+’. Positive read thru for the stock.

Restaurant industry: Pizza Hut India plans to double its outlets to over 700 in the next five years (currently has 360 restaurants), based on the growing popularity of western fast-food in the country – sentimentally negative read through for Jubilant Foodworks (Dominos) as this will lead to rise in competition and can affect revenue in a longer run.

M&M: Unveiled driverless tractors and plans to launch after Government approvals . The company is also working towards launching an electric tractor. With the new technology being used for the tractors, the productivity as well as yield is expected to improve. Positive

Unitech: The company announced that both managing directors have been granted bail by the court and matter is listed before mediation centre for amicable settlement of dispute. The matter relates to delay in construction property. Sentimentally positive for the stock.

Shreyas Shipping and logistics: The company has signed a MOA for acquisition of container vessel of about 1500 TEUs. The delivery of the vessel is expected by mid October 2017. Positive for the stock.

Surya Roshni: Obtained orders through competitive e-bidding for LED Luminaire and LED Street Lights amounting to Rs.49 crores for supply of LEDs Luminaire in United Kingdom; positive

IT Sector: US resumes premium processing of H-1B visas – positive read-thru for Indian IT companies
The US has resumed fast processing of H-1B work visas in all categories. Premium processing of H-1B visa was suspended in April to handle the huge rush of new petitions. The US Citizenship and Immigration Services (USCIS) resumed premium processing for all H-1B visa petitions subject to the FY2018 cap. The FY2018 cap has been set at 65,000.

ENIL: Commences broadcast from its radio station at Jammu (98.3 FM) – stock to remain in focus

PVR: Introduces 'P[XL]'-sub-brand on home-grown 'big screen' format – stock to remain in focus
PVR Cinemas on unveiled their new sub-brand, P[XL] - PVR's home grown big movie screen format known as Premium Extra Large at Mani Square, Kolkata. P[XL] auditoriums are equipped with extra-large wall - to - wall screen, state of the art DOLBY ATMOS moving sound technology and Dual 4K projection system with customized 3D glasses to bring alive every little detail of the movie.

RIL, Hero group, Adani: plans to enter battery manufacturing business 

Reliance Industries (RIL), Hero Group and Adani are planning to enter battery manufacturing and battery pack assembly over the next decade as the India targets to become all electric car nation by 2030

Monday, 18 September 2017

18 September 2017 - Views & News


The Nifty is likely to open on positive note followed by Asian markets. Nifty may cross all time high today. The next resistance level for Nifty will be 10244 with support level at 10000.

Nifty Spot Levels

Support 10000 – 9913 – 9861

Resistance  10137 – 10186 - 10244


• Wall Street reached record highs on Friday, with the S&P 500 surpassing 2,500 points as telecommunications shares rose and technology bounced back after two days of declines.
• Wall Street largely shrugged off reports showing an unexpected drop in US retail sales last month and the first drop in industrial output since January.
•The Dow Jones Industrial Average rose 0.29 percent to end at 22,268.34 points.


Sgx Nifty  +41 pts ‎Dow +64.86 pts ,Nsdq +19.18 pts , S&P+4.61 pts Bovespa +1099 pts , Ftse -79 pts , Dax -21 pts , Cac -11 pts , Nikkei Clsd , Crude @ $50.35 brl (-0.09), Brent @ $55.51 brl (+0.04) , Gold @ 1320.57 (-4.63), Silver @ $17.611 (-0.09), Euro @ $1.935, JPY @ $111.2200, INR @ $64.130

Today's Corporate Action 18th Sep Ex Date

GALLISPAT Dividend - Rs. - 0.5000
AARTIIND Final Dividend - Rs. - 1.0000
ALANKIT Final Dividend - Rs. - 0.1000
ALICON Final Dividend - Rs. - 4.2500
ARROWTEX Dividend - Rs. - 1.5000
BASANTGL Dividend - Rs. - 0.0500
BLISSGVS Dividend - Rs. - 0.6000
BSL Dividend - Rs. - 1.2000
FLUIDOM Dividend - Rs. - 1.7500
GRAUWEIL Dividend - Rs. - 0.4000
HBLPOWER Dividend - Rs. - 0.2500
HIGHGROUND Dividend - Rs. - 0.1000
IGL Final Dividend - Rs. - 5.0000
INTRGLB Dividend - Rs. - 0.5000
JAYUSH Dividend - Rs. - 2.0000
KAMDHENU Dividend - Rs. - 0.8000
LEEL Final Dividend - Rs. - 1.5000
PHOENIXLTD Final Dividend - Rs. - 2.4000
PIXTRANS Final Dividend - Rs. - 2.0000
POLYSPIN Final Dividend - Rs. - 1.2000
RAIREKMOH Dividend - Rs. - 0.1000
RISHDIGA Final Dividend - Rs. - 1.5000
RUBYMILLS Dividend - Rs. - 1.7500
SANDUMA Special Dividend - Rs. - 2.0000
SEINV Final Dividend - Rs. - 1.0000
SETCO Dividend - Rs. - 0.6500
SHAKTIPUMP Dividend - Rs. - 2.0000
SIGNETIND Dividend - Rs. - 0.0500
SUNPHARMA Dividend - Rs. - 3.5000
VAMA Final Dividend - Rs. - 0.1000
WINDMACHIN Dividend - Rs. - 0.7500


Tyres: International rubber prices (Tokyo rubber futures) dropped 3%. The rubber prices are trading at 2 week lows. Positive for MRF, JK tyres, Apollo Tyres and Ceat

Petronet LNG: Management expects Kochi terminal to operate at 40% utilization by December-2018 with likely completion of Kochi- Mangaluru pipeline section; positive read through
Petronet LNG Ltd (PLNG) expects its 5mtpa Kochi re-gas terminal to operate at over 40% utilization rate by December-2018 (vs 15% utilization rate currently) as GAIL is expected to complete the Kochi to Mangaluru pipeline section by December-2018 – positive read through for PLNG. 

Dr Reddy: USFDA audit of API plant in UK facility reported three observations with form 483 – Negative for Dr Reddy.

Cadila: Received USFDA approval for Modafinil tablets (used to improve wakefulness) & Solifenacin Succinate tablets (used to treat overactive bladder). Both the drugs will be manufactured at the group’s formulation manufacturing facility at Ahmedabad Pharma SEZ – Positive read-thru

Maruti Suzuki: targets 20% volume contribution from premium Nexa showrooms in FY18 from 15% currently – positive…(details in other news)

TVS Motors: working towards launching electric two wheelers soon. The company is in the process of developing an electric scooter and a motorcycle. Positive read thru

Oil & gas: BPCL likely to acquire government's majority stake in GAIL for Rs18,000-20,000 crore; Positive read through GAIL but sentimentally negative for BPCL
Bharat Petroleum Corp (BPCL) is in talks with GAIL (India) to acquire government's majority stake in it for around Rs18,000-20,000 crore as per media reports. The quoted valuation price as per media reports is at 0-8% premium to GAIL’s last closing price - Positive read through GAIL but sentimentally negative for BPCL (due to slight premium to acquire government’s majority stake in GAIL).

Scooters India: is planning to launch an electric three-wheeler in the next six months. The company is also looking at exporting three-wheelers to neighbouring countries. Currently, Scooters India holds the majority of the market share in the 1+6 three-wheeler segment, under the brand Vikram, with around 90% of the total 12,000-15,000 units market. It has a capacity of producing 12,500 units a year in a single shift. 


Restaurants: Hardcastle, Jubilant Foodworks, Speciality Restaurant, Moon Beverages, Lite Bite keen to partner McDonald’s – long term positive for Jubilant Foodworks as it has expertise in Quick Service Restaurants, but it will add to the cost in the near term
As per media reports, five leading restaurant and foods firms have either written to McDonald’s or evinced interest in the US burger chain’s north and east business as potential franchise partners, even as its prolonged legal battle with estranged partner Vikram Bakshi-led Connaught Plaza Restaurants Ltd (CPRL) continues. Speciality Restaurants, which owns fine-dining brands Mainland China and Oh! Calcutta; Jubilant FoodWorks, which operates well known global brands Domino’s Pizza and Dunkin Donuts and Coca-Cola’s largest Indian franchise bottler Moon Beverages, Lite Bite Foods, promoter of brands such as Punjab Grill and Asia Seven are among those keen on partnering McDonald’s.

Oil & gas: MRPL likely to merged with HPCL post ONGC-HPCL deal; positive read through for HPCL and MRPL
Hindustan Petroleum Corp (HPCL) management has indicated likely merger of MRPL post the ONGC-HPCL deal is completed. We highlight here that ONGC is promoter of MRPL with 71.63% stake and HPCL also owns 16.96% stake in MRPL – positive read through for HPCL and MRPL.  

Aditya Birla Fashion & Retail: Simon Carter enters India via tie-up with the company – positive read through for the stock
Simon Carter announced its foray into the India market through an exclusive partnership with Aditya Birla Fashion Retail (ABFRL). ABFRL had in May last year signed a licensing agreement to bring the London- based designer brand to India. The brand, which launched its store in Mumbai, plans to open 10 more outlets in cities, including Bengaluru, Chennai, Mumbai, Delhi, Pune and Chandigarh by the end of FY18. Simon Carter's product range comprises of suits, jackets, shirts, blazers, jewellery and accesories for men, among others. ABFRL sees this brand to be about Rs 250-300 crore in the next three years.

Maruti Suzuki: targets 20% volume contribution from premium Nexa showrooms in FY18 from 15% currently; positive
Maruti expects to sell 300,000 units from Nexa in FY18, thus upping the premium showroom’s total share in the company’s overall sales volume to 20%. In FY17, Maruti achieved 15% of its total sales in volume terms from Nexa, three years ahead of schedule. In value terms,  the contribution of high-end vehicles, which are retailed through Nexa showrooms, is expected to be around 30-33% as against 25% currently. The premium distribution network strategy for bigger cars has worked well for Maruti and has been one of key factors in establishing Maruti brand for larger cars

ITC:  plans to 40 new hotels with 5,000 rooms in pipeline – positive read through for ITC Hotel’s business
ITC plans to open 40 new hotels, adding around 5,000 rooms over a period of time, as part of the strategy to strengthen its hospitality business. The company is working on opening 10 new hotels in the next three and half years under its ongoing expansion programme across different verticals entailing overall investment of Rs. 25,000 crore. The upcoming ITC hotels are in Kolkata, Hyderabad, Ahmedabad and Srinagar while another four will be under Welcom Hotels brand at Coimbatore, Bhubaneswar, Guntur and Amritsar. The Colombo property is ITC’s first overseas project and is being undertaken by a wholly-owned subsidiary in Sri Lanka.

UPL: wins in UK High Court against toll manufacturers, positive read-thru
UPL has won case against UK toll manufacturers in UK High court regarding illegal production of herbicides of Metafol also known as Bettix. Bettix is UPL’s authorized herbicide which contains 700 grams per litre of the active substance metamitron used for the treatment of sugar beet in EU markets. This is positive development as Europe contributes ~13% to UPL’s revenues and reported growth of ~12% in FY17.

Tata Motors: to launch compact SUV Nexon on 21st September 2017. With the launch of the Nexon Tata Motors is eyeing for a 3-4th spot in the utility vehicle space from 7th currently in 1-2 years time frame. UV is the fastest growing PV segment forming 29% of overall market  Positive read thru.

Tata Motors: to invest Rs 1500 crs per year in the CV business to develop new products. Also the company has indicated to consolidate its market share up from 43% now and plans to outpace the CV industry for FY2018. This points towards a strong double digit growth (more than 15%) for the 9MFY2018 as against a sharp drop registered in Q1FY218. Apart from domestic market, company is also tapping new export markets to drive growth. Strong agricultural income, govt spending on infrastructure and ban on overloading is driving growth in CV sales. Positive read thru

Bank of India: The board of Bank of India is examining the possibility of merger with other banks, based on the kind of synergy in business. However, the bank is in the process of strengthening its systems and processes before exploring merger possibilities – Neutral read thru

General Insurance Sector: As per media reports, Out of the five state-owned general insurance companies, New India Assurance (NIA) and GIC Re are gearing up to hit the capital market over the next few weeks – Positive read thru as the sector will be in focus, will also result in Govt raising over Rs 15,000 crore from the IPO

HDFC Ltd: HDFC Life's initial public offering (IPO) is likely to get pushed to the third quarter (October-December) of the fiscal – Neutral Read thru for HDFC Ltd.

Federal Bank: The company looks to find strategic partner for its wholly own subsidiary FedBank Financial Services  - Positive read thru for Federal Bank

L&T, Tata Power, Tech Mahindra ,TCS & HPL electric: stock in focus as they fray for smart meter tenders
Vodafone, TCS, Larsen & Toubro, Tech Mahindra, Tata Power and France’s EDF are eyeing government’s purchase of 50 lakh smart meters, which will give them access to big data on power consumption and create a market for 50 lakh SIM cards for connecting the devices. Forty companies, which also include equipment makers and trade bodies, have held discussions with Energy Efficiency Services (EESL), which has tendered for 50 lakh smart meters in Uttar Pradesh and Haryana in the first phase as part of the smart-grid project. Bids are expected next week. The initial phase will see deployment of 40 lakh smart meters in Uttar Pradesh and 10 lakh in Haryana. Other states like Bihar, Jharkhand, Gujarat and even Delhi are keen on deploying smart meters. The tender is divided into two parts — meter procurement and system integration. System integrator will see meter installation, data storage on cloud, preparing dashboards, among other things.

NTPC: Invites developers to set up 100 waste-to-energy plants across the country under the Swachh Bharat mission. In order to expedite these plants, the NTPC would provide land, ensure supply of waste from local bodies besides giving support in getting regulatory clearances and arranging power purchase agreements. According to Ministry of New and Renewable Energy estimates, the solid waste generated from cities/towns in India has a potential to generate power of approximately 500 MW, which can be enhanced to 1,075 MW by 2031 and further to 2,780 MW by 2050.

NBCC to be focus: Government to sell Air India properties owned by them
The government has decided to sell some of Air India’s real estate directly to expedite the Air India’s divestment. This follows the discovery that some of the assets are not owned by the carrier but on a 99-year lease from the government. We believe NBCC to act as project management consultant and earn PMC fees which would help to augment its earnings. Positive


Government to sell Air India properties owned by them
HPCL plans Rs 61,000 crore investment in 5 years
CAD seen at 1.2-1.3 per cent of GDP in FY18: Icra
Tata Motors plans to breathe fresh life into its PV portfolio
Just two bidders for Rs 37k cr Aamby Valley auction
Gold imports jump three-fold to $15 bn in April-Aug
SES urges Bharti shareholders to reject Telenor deal
Fosun Pharma to buy 74% stake in Gland for $1.09 billion
Drug makers dial foreign regulators on quality issues
Sebi board to take stock of suspected shell cos on Monday
Tata Motors eyes larger share of utility market with SUV Nexon
GSTN reopens composition scheme window for small businesses
Members want preferential treatment in NSE's Rs 10Kcr IPO
Banks to gain as steel sector shows signs of growth
India likely to be 3rd largest economy by 2028: HSBC
Monnet Ispat: IRP calls for expression of interest
CVC to probe govt employees deposits post demonetisation
FPIs pull out Rs. 3,000 cr from stocks in September so far 
India-Japan ties set on high growth trajectory
SBI reviewing minimum balance charges for savings accounts
Govt may raise over Rs15,000 crore from share sale of 2 PSU insurers
TVS Motor to roll out electric two-wheelers soon
External debt of India drops 2.7 pct to $471.9 bn, records first such drop in 5 years
Government asks state-owned banks to discuss ways to merge at board level
Bankruptcy board to register 100 more insolvency professionals to add to 940
Indian start-up Kheyti wins prestigious award in Israel
Mergers boost finance sector consolidation
GIC Re IPO next month, over 14% stake dilution can fetch up to Rs 11k cr
Govt to monitor iron ore output
Centre eyes record rabi crop output
RBI may keep policy rate on hold till FY18-end


1. Dr Reddys gets Form 483 with 3 observations for API Mirfield Plant in U.K.
2. Mangalam Drugs received final approval from WHO for the drug Emtricitabine
3. Laurus Labs U.S. FDA clears Vizag Unit-2; German Authorities and WHO complete audit
4. Shipping Corporation takes delivery of a secondhand gas container of 53503 DWT capacity
5. Mahanagar Gas commences PNG supply in Dombivali
6. Axis Bank Keeps MCLR unchanged at 8.25 percent
7. Wipro partners with HP to deliver enterprise cloud solutions
8. Balrampur Chini Mills approves investment of Rs 175 crore in education sector over 5 years
9. Tide water Oil Promoter Standard Greases and Specialties acquires 1.74 lakh shares of the company.
10. Sunil Hitech Board decides to refrain from participation in the offer for sale in the proposed IPO of its subsidiary 'SEAM Industries'.
11. Reliance Power Promoters Reliance Wind Turbine Installators pledged 3 crore shares (1.07 percent) to L&T Finance
12. Wipro, Hewlett Packard enterprise to deliver cloud solutions
13. Aircel denies reports on bankruptcy filing
14. Hit Kit forms joint venture for development of resort at Lonavala
15. Circuit Changed: Mirc Electronics (10 percent), Apex Frozen Foods (10 percent)
16. Cadila Health gets U.S. FDA final okay for Oseltamivir powder
17. Asian Granito will launch over 200 new designs with over 30 ranges of new products
18. Gujarat Industries successfully commissioned 80MW PV solar power project at Gujarat Solar Park
19. British designer brand Simon Carter enters India with Aditya Birla Fashion
20. ITC says 40 new hotels with 5,000 rooms in pipeline (PTI)
21. TVS eyes electric two-wheeler space, to roll out products soon (PTI)
22. Tata Elxsi: Ex-date for 1:1 bonus. F&O lot size revised to 800.
23. Tube Investments: Name changed to TI Financial Holdings Ltd.
24. Reliance Defence and Engineering: Name changed to Reliance Naval and Engineering Ltd
25. Specialty Restaurants and Jubilant FoodWorks keen to partner McDonalds (Economic Times)

Friday, 15 September 2017

15 September 2017 - Views & News


Sgx Nifty  -36 pts ‎Dow +45.30 pts ,Nsdq -35.56 pts , S&P -2.75 pts Bovespa -140 pts , Ftse -84 pts , Dax 13 pts , Cac +7 pts , Nikkei +44 pts now , Crude @ $49.76 brl (-0.13), Brent @ $55.30 brl (+0.04) , Gold @ 1337.59 (+8.24), Silver @ $17.896 (+0.10), Euro @ $1.913, JPY @ $110.1200, INR @ $64.132

Today's Corporate Action 15th Sep Ex Date

DWITIYA Dividend - Rs. - 0.0200
ALPINEHOU Dividend - Rs. - 0.5000
AMARJOTHI Dividend - Rs. - 2.0000
AMMLTD Dividend - Rs. - 0.1000
ANUHPHR Final Dividend - Rs. - 2.5000
APMIN Dividend - Rs. - 0.5000
BABA Buy Back of Shares 
BASML Dividend - Rs. - 1.8000
CGVAK Dividend - Rs. - 0.5000
DENISON Final Dividend - Rs. - 10.0000
DIVISLAB Dividend - Rs. - 10.0000
DIVSHKT Final Dividend - Rs. - 1.5000
GANECOS Dividend - Rs. - 1.2000
IFSL Dividend - Rs. - 1.2000
JINDALSAW Dividend - Rs. - 1.0000
JLMORI Dividend - Rs. - 1.0000
KAKATCEM Dividend - Rs. - 3.0000
KILPEST Dividend - Rs. - 0.3000
KLBRENG-B Dividend - Rs. - 2.0000
MANGCHEFER Dividend - Rs. - 0.5000
MERCURYLAB Dividend - Rs. - 1.5000
NESCO Stock  Split From Rs.10/- to Rs.2/-
NIPPOBATRY Dividend - Rs. - 25.0000
RADIXIND Dividend - Rs. - 1.0000
RASOI Dividend - Rs. - 20.0000
RISHIROOP Dividend - Rs. - 1.0000
SABTN Dividend - Rs. - 0.6000
SAKTHIFIN Dividend - Rs. - 1.0000
SAKUMA Final Dividend - Rs. - 1.0000
SAMKRG Dividend - Rs. - 4.5000
SCHAND Final Dividend - Rs. - 1.2500
SUCROSA Dividend - Rs. - 0.7000
SUMEDHA Dividend - Rs. - 1.0000
TALBROAUTO Dividend - Rs. - 1.5000
UFO Dividend - Rs. - 10.0000
VIDHIING Final Dividend - Rs. - 0.2000

Alert: Automobiles: The NGT has stayed the ban it earlier imposed on 10 year old diesel vehicles in the Delhi and NCR region citing concerns of air pollution. This development could severely hit the sales of diesel vehicles in Delhi and NCR region. However, diesel vehicles as a percentage of total vehicles portfolio is on a declining trend over last three years and currently stood at 27% at the industry level  (from 47% in FY13) and for Maruti it stood at 27% from 30%+ in FY13. Nevertheless, the development is negative for the Auto industry and for M&M, Maruti.

FMCG: Industry sales have grown by 6 percent in volumes driven by 12% growth in rural markets in the month of July 2017 – positive read through for FMCG companies (including HUL, Britannia, Godrej Consumers, and Jyothy Labs)
Consumption of groceries and daily essentials picked up sharply in July, helped by pent-up demand from traders after orders had been slashed in June and blunted competition from unbranded products that struggled to reach retail shelves due to difficulties in goods and services tax (GST) compliance. FMCG sales by volume rose 6 per cent in July, faster than 2 per cent a year ago. This was mainly driven by 12 per cent growth in rural areas and a 7 per cent rise in the food and beverages category that has a significant chunk of unbranded players. A year ago, both segments grew 2 per cent each. 

Oil & gas: NGT refuses to lift ban on 10-year old diesel vehicle in Delhi-NCR; positive read through for IGL
National Green Tribunal (NGT) had dismissed government's plea to modify NGT's order banning 10 year old diesel vehicle in Delhi-NCR due to concern of air pollution - Positive read through for Indraprastha Gas Ltd (IGL).

HDFC:  As per media reports SEBI has raised observations regarding the HDFC Standard Life Insurances IPO based on the Draft Red Herring Prospectus filed. The regulator has sought clarification on a number of issues including the risk factors and conflict of interest between HDFC and HDFC Standard Life, among others -  Sentimentally negative read thru as this may further delay the IPO

Shree Cement, NBI Industrial Finance: Promoters of NBI Industrial Finance (one of the promoter group of Shree Cement and listed entity on NSE) may be examined by SEBI on allegations of defrauding minority shareholders as per media reports. NBI sold shares in few unlisted companies for around Rs100 crore, but the value of stake held by these unlisted entities in Shree Cement is around Rs38000 crore. Negative for both the stocks.


Maruti Suzuki: Suzuki Motor Corp lines up aggressive expansion plans at Gujarat plant; to set up a 3rd production line and set up a new lithium ion battery unit  – Positive read thru.
Maruti Suzuki’s parent company, Suzuki Motor Corp has planned to set up a 3rd production line at its Gujarat plant with a capacity of 2.5 lakh units per annum. The capex for the above is Rs 3,800 cr. Further clarity on timeline for commissioning of the new plant is awaited. Secondly, Suzuki Motor Corp along with its partners – Denso Corporation and Toshiba Corporation has also commenced work for setting up a new plant for lithium ion batteries with an investment of Rs 1,151 crore and is expected to commence operations by 2020.

Bajaj Auto: Bajaj Triumph partnership to launch their first motorcycle in 2020 in the cruiser segment in the sub 800cc category. Also as per the terms Bajaj Auto would leverage it's network in  India, Sri Lanka, Bangladesh, Nepal, Myanmar, Colombia and most of Africa to market, distribute and support Truimph. Foray in the cruiser segment would boost sales and could also lead to market share gains for Bajaj Auto. Positive read thru

M&M: to invest Rs 300-400 Cr for development of electric vehicles; plans to launch electric variants of Scorpio and XUV5OO. Positive read thru.
M&M to invest Rs 300-400 crore in the development of electric vehicles and is also scouting for a technology partner. Also the company plans to introduce the electric variants of the Scorpio and XUV 500, which is likely to be priced at around Rs 12 lakhs and Rs 15 lakh respectively, is higher by around 15-18% as compared to the petrol variants of these Vehicles.

Logistics sector: The container volumes at major ports increased 8.4% YoY in August. Compared to 4.3% growth a year ago, container volumes at major ports is up 6.4% so far this fiscal year. Similarly, total rail freight volume is up 4.9% compared to a 1.4% decline in the year ago. Positive read thru for Container Corporation of India, Gateway Distriparks.

India Cements: CARE has revised long term bank facilities and non-convertible debentures ratings from A- to A. positive read thru for the stock.

Idea Cellular: ATC, Brookfield and IDFC Alternatives front-runners for Idea-Vodafone tower assets – stock to remain in focus
As per media news, American Tower Corp. (ATC), Brookfield Asset Management and IDFC Alternatives have emerged as the front runners for the independent tower assets of Vodafone India and Idea Cellular in a combined transaction. The sale of the combined assets, pegged at over $1.5 billion in enterprise value, is being negotiated with potential buyers, with a preference for a single buyer for both assets.

Arvind: Technical textile market to grow at 12 per cent CAGR – positive read through for the stock
As per media reports, India’s technical textile market has huge growth potential and it is expected to grow at 12 per cent per annum to reach $23 billion (Rs 1,50,000 crore) in 2020 from the present $18.16 billion (Rs 1,16,000 crore). India comprises 4 per cent of the global technical textiles exports. Technical textile offers immense potential and has been termed as a sunrise industry in India.

Ujaas Energy: bags EPC order from Oil India for 500KW solar project; positive

Suzlon, Inox wind to be in focus: Wind power auction of 1GW to be delayed, now to be held on 19th September 2017.

Infosys: Partners with Renishaw for metal AM product development
Renishaw entered into a strategic partnership with Infosys on harness metal additive manufacturing (AM) technology. Together, the partners will aim to offer an end-to-end product development service to assist companies in their adoption of AM for volume production of end-use parts.


India, Japan sign open sky agreement 
Finmin, Japan sign MoU for bullet train training centre
Shell cos: Tax dept, Centre to share PAN, audit reports
Top cotton buyers flock to India as hurricanes hit US crop
'14 out of 16 loss-making ITDC hotels to be sold off'
PM Narendra Modi invites more Japanese investment
Budget likely on Feb 1, preparations begin
Coal prices to stay firm on higher power demand
Intas Pharma to bid for $4-bn deals in a month
Higher metal prices to bite corporate margins
Lower IUC to destroy all telecom operators except Jio, warns Idea
Hindustan Shipyard expects to close Hyundai JV next year
Shell cos clampdown: SEBI for forensic audit of 3 firms
Technical textile market to grow at 12 per cent CAGR 
 Idea offers formula to settle interconnect usage charges issue
Wipro joins hands with Linux for open source projects
Infinite Computer Solutions board approves bonus issue 
Bitcoin exchange BTCChina to stop trading from 30 September
India’s exports to Japan halve to $3.85 billion in four years
Tata Chemicals in talks with Indorama to sell Haldia unit for Rs400-500 crore
Rupee closes near 1-month low against US dollar
Bad loans to touch 10.5% by March as banks recognize entire stress, says Crisil
Fitch Rating has negative outlook on banks, raises capital concerns
GDP to remain below 6 percent in Q2 FY18, says SBI report
NPAs to touch 10.5 per cent by March as banks recognise entire stress
China’s economy losing some steam as investment growth hits 18-year low
Suzuki to set up third plant, lithium ion battery unit in Gujarat
Apollo Tyres plays ball in Eng, partners with Crystal Palace FC
With China in mind, Japan, India agree to deepen defence
30% of Bank Jobs may disappear in five years