Thursday, 28 April 2016

28 April 2016 - Today's View & News

Market View

Markets are likely to open on flat to positive note. Nifty is facing resistance at 8000 level. Today being expiry of F&O one can see volatility in market.

Nifty Spot Levels 

Support 7923 – 7870 – 7820
Resistance  8040 – 8080 - 8140
Market Update

Sgx Nifty +27 pts ‎Dow +51.23 pts ,Nsdq -25.14 pts , S&P +3.45 pts ‎, Bovespa +1400 pts , Ftse +35 pts , Dax +40 pts  , Cac +26 pts  , Nikkei  +236 pts , now, Crude @ $45.25 brl (-0.08), Brent @ $47.52 brl (+1.52) , Gold @ $1247.20 (-3.20), Silver @ $17.24 (-0.04), Euro @ $1.1326, JPY @ $111.3200, INR @ $66.4525

Global Market Update

US stocks ended slightly higher on Wednesday after fears eased that the Federal Reserve would strongly signal it would raise interest rates in June, though a slump in Apple shares weighed on the Nasdaq index.
The Fed next meets on June 14-15. While the labor market continues to gain strength, inflation remains below the central bank's 2 percent target and mixed economic data could cloud the path to future rate hikes.
The Dow Jones industrial average rose 51.23 points, or 0.28 percent, to 18,041.55.
Today's Corporate Action  28th Apr Ex Date

CRISIL Interim Dividend - Rs. - 5.0000
DLINK  Buy Back of Shares 

Today's Key Results  28 th. Apr‎



Aurobindo gets tentative nod from USFDA to manufacture and market Tadalafil, used in treating erectile dysfunction and for treatment of pulmonary hypertension – Positive for Aurobindo.

Torrent Pharma recalls 21000 cartons of hypertension drug telmisartan in US due to presence of ‘foreign substance’ – Sentimentally negative for Torrent Pharma

Strong result: Exide Industries: Reported strong numbers, ahead of our as well as consensus estimates. Topline grew 7% yoy to Rs 1,761 cr beating forecasts, margins improved 70 bps yoy to 15.2% and net profit grew 29% yo to Rs 178 cr (higher other income and lower tax) (further details in investments calls).

Call drop case- Positive comments from Supreme court ; positive for incumbents like Bharti & Idea
Supreme court hears out the call drop case, states that all the burden cannot be put on the telecos, final hearing date 3rd May- Positive comments on telecos  by supreme court along with good results from Bharti Airtel (along with Buyback) augurs positive for incumbent teleco players like Bharti Airtel and Idea Cellular


Infosys invests in Silicon Valley-based data analytics startup Trifacta
Infosys, has invested an undisclosed amount in U.S-based Trifacta. Trifacta is a provider of data wrangling software that enables non-technical users to easily transform data for analysis. As part of this investment, Trifacta will provide a data wrangling solution for the Infosys Information Platform (IIP) and Infosys’ other platforms and offerings, Infosys said in a statement. Infosys has been actively scouting for companies working on innovative technologies. Last year, Infosys had announced a USD 500-million Innovation Fund, earmarked for investments in the growth of disruptive new technologies. The company has stated that it will invest in companies that develop innovative technologies on automation, Internet of Things (IoT), and artificial intelligence

Delta Corp - Maharashtra may allow offshore casinos to boost tourism – if allowed would be positive for Delta corp
The Maharashtra government is expected to discuss whether or not to legalise casinos in the state. It has suggested the state to allow offshore casinos which could operate from a yacht off the coast where entry would be limited to foreign tourists. If the venture turns out to be successful, the government may consider allowing Indians as well to play

DLF launches Mall of India (2 million sq ft built at an investment of Rs1700 crore) – Positive for DLF
As per media reports, DLF officially launched Mall of India in Noida. The mall built at an investment of Rs1700 crore is spread across 2 million square feet. As much as 95% of the space in the mall has been leased out with as many as 14 anchor partners. The mall is expected to generate revenue worth Rs250 crore per annum for DLF. The development is positive for DLF.

MEP Infrastructure JV receives Rs826 crore hybrid annuity project – Positive for the stock
MEP Infrastructure Developers – Sanjose India Infrastructure has received Letter of Acceptance from Ministry of Road Transport & Highways for rehabilitation and upgradation of NH 66 to four lanes in Maharashtra on Hybrid Annuity Mode. The construction period is 2 years with concession period of 15 years. The Bid project cost is Rs826.28 crores and O&M bid is Rs11.6 crores for the first year. The company will receive Bi-annual annuity from MORTH. The development is positive for MEP Infrastructure.

Va tech Wabag has received wastewater treatment plant order, funded by Asian Development Bank in Nepal worth Rs 141 crore. It also includes Operations & maintenance of the plant for 10 years. – Positive for Va tech wabag (News came during market hours)

Oil India: Fitch Ratings has affirmed BBB- rating to Oil India with the stable outlook citing the Oil India’s operational and financial links to Government of India.- Sentimentally positive for Oil India
More News

US continues to keep India on IP priority watch list
Bankruptcy law okayed; good times over for wiful frauds
DIPP moves cabinet note on 100% FDI in food processing
Rise in pvt sector debt posing risk to economies: Fitch
Bharti Airtel Q4 net profit up 2.8%, beats estimates 
ED seeks to recall exemption given to Vijay Mallya
UN chief urges end to nuclear weapons testing
GST rollout, infra funding an uphill climb for India: Moody's
NHPC share sale subscribed 1.56 times
US Federal Reserve keeps rates unchanged
Biocon's Q4 net profit jumps 250% to Rs 361 crore on exceptional income
SC asks Sahara to submit list of all group assets
India likely to become net importer of sugar as drought dries fields
AgustaWestland not blacklisted under UPA rule: Govt
Iran seeks interest on $6.5 bn due from Indian oil refiners 
Kerala gets first heat wave warning on blazing El Nino trail 
GNFC back in black with Rs. 226 cr profit in FY-16  
Walmart India awaits FDI policy guidelines for marketing food products
 Adani’s mining project in Australia faces another legal hurdle
MCX copper slips below 200-day moving average
Indian stainless-steel-bar exporters may face renewed EU tariffs
Tata Steel UK’s pension hurdle could be £2.5 billion: Report
TPG Growth buys India-focused cancer treatment chain
Coromandel International’s net profit rises 35% in Mar quarter
Start-up report says 50% decline in funding in March quarter
Alembic Pharma net profit up 30%
Infosys buys minority stake in US-based start-up Trifacta            
India's World Bank ranking has improved: Nirmala Sitharaman
TRAI to take action for call drops to protect consumer
Indian Railways to harness 1000 MW solar power by 2020
Slow networks in India preventing Apple from full bloom: Tim Cook
4,983 complaints against UIDAI operators for charging money
Dumping duty on telecom gear from Huawei, ZTE
Telephone subscriber base increases to 105 cr in Feb
Non-core income pushes Yes Bank net by 27%
KYC norms relaxed for import of gifts through courier
Thyrocare raises Rs 144 crore from anchor investors
Telenor threatens to exit India on incurring operating loss worth Rs 2,500 crore 
Shipping companies see rise in Baltic Dry Index as a blip
P&G moving away from unprofitable businesses in India: Global CFO
Will take action for call drops to protect consumer interest: Trai to Supreme Court
Infosys invests in US-based analytics software firm Trifacta
Ujjivan Financial Services Mops Up Rs. 265 Crore From Anchor Investors
JSW Energy to announce acquisition of 1000 MW power plant
Reliance Jio Infocomm and the Cellular Operators Association of India (COAI) are at loggerheads over the GSM industry body's recent call for a uniform annual levy for using airwaves.
Torrent Pharma   (BS) Recalls 21000 cartons of hypertension drug in US
Aviation stocks-Airlines to refund development fee charged for Delhi passengers beyond April 30
Monnet Ispat   & energy; Bankers: Lenders seek to sell 51 percent stakes Ev as of FY15 : Rs 8247  crore
Govt says no proposal to merge BSNL and MTNL
Purvankara to exit its investment of  Rs 403 crore at Raidurg
Empee Distilleries   Board approves allotment of 14 percent NCDs aggregating to Rs 37.5 crore to select investors under private placement
Adani Ports & SEZ Co incorporates wholly owned subsidiary ‘Adani Petroleum Terminal Ovt Ltd’ Infosys invests In US-based Data Wrangling Startup Trifacta
Rico Auto Industries Commercial production begins in Chennai plant
Websol Energy   revises conversion price of FCCBs to Rs 62/Sh, extends maturity by 5Y.

Sharekhan Stock Update

Yes Bank
Reco – Buy
Cmp Rs 916
Price Target Rs 1050
Robust operating performance, healthy growth outlook, PT revised to Rs1,050
Key points
Strong NII growth, margins remain stable: Yes Bank has delivered a strong set of numbers for Q4FY2016 as its net profit was up by 27.4% YoY driven by a healthy net interest income growth of 27.1% and a stable net interest margin. The non-interest income grew by 36.0% YoY owing to a 74.3% surge in the corporate banking fees. The liability franchisee continued to show an improvement as the CASA ratio was up by 142BPS to 28.1% on a sequential basis. 
Asset quality shows a slight deterioration but outlook remains stable: For Q4FY2016 the bank has reported a slight deterioration in its asset quality as its GNPA are up by 10BPS QoQ to 0.76%. Accounts worth around Rs360 crore slipped during the quarter partly due to the RBI’s asset quality review (AQR). However, this has been now completely factored in by the bank and hence moving ahead, the outlook remains stable. The bank sold to ARC one account from restructured category having a book value of about Rs40 core during the quarter as a result of which the restructured book declined to 0.53% of the total advances as compared to 0.67% in the previous quarter. The bank did not carry out any 5:25 refinancing or SDR during the quarter. It has guided for a credit cost of about 50 to 70BPS for FY2017 which is similar to the levels of FY2016 (credit cost for FY2016 was 50BPS). 
Valuation and outlook: Yes Bank continues to deliver a strong operational and business performance in a challenging environment. Despite a slight deterioration in the asset quality it remains the best among the system. The bank would continue to focus on growing its retail and SME segments and has shown a strong improvement in its liability base by garnering higher CASA and retail deposits. We believe the margin expansion and healthy loan book growth would continue to drive the earnings. We expect the earnings to grow at 25.1% CAGR over FY2016-18E which would result in an RoA of 1.9%. We have rolled over our valuations to FY2018E. This has resulted in a new price target of Rs1,050, by valuing the bank at 2.3x FY2018E BV.

Inox Leisure
Reco – Buy
Cmp Rs 212
Price Target Rs 285
Missed on operating parameters, maintain Buy with revised PT of Rs285
Key points
In-line revenue performance, missed margin expectations: For Q4FY2016 Inox Leisure Ltd (ILL) has reported a revenue growth of 31.8% at Rs286.9 crore, driven by a strong gross box-office (GBOC) revenue growth of 41.7% year on year (YoY) and a food & beverages growth of 52.3% YoY. The advertisement revenues were down by 2% YoY. Further, the footfalls increased by 36.9% YoY during the quarter. However, ILL reported a lower than expected performance on the margin front with margins at 5.2% in Q4FY2016, up 42 basis points (BPS) YoY. The decline in the margins on a sequential basis was primarily due to an increase in the entertainment tax rate as the entertainment tax exemption for six properties expired during the quarter, the entertainment tax rate spiked for four properties in the Delhi region and the other expenses increased (up 28.7% YoY). The net profit was Rs16.1 crore in Q4FY2016 compared with a loss of Rs4.1 crore in Q3FY2015; the net profit performance was largely aided by a tax benefit from Satyam Multiplex acquisition of Rs26.1 crore. 
Operating metrics lack improvement: (1) ILL added three new properties during the quarter (it has a presence in 57 cities) and seven new screens, taking the total number of properties to 107 with 420 screens and 108,931 seats. The lower than expected addition was on account of some regulatory issues. (2) The average ticket price (ATP) increased by 5.7% YoY to Rs167, the food & beverages spending per head (SPH) increased by 9.4% YoY to Rs58 while the occupancy rate grew by 300 basis points (BPS) YoY at 23% and fell by 500BPS sequentially. The management expects the occupancy rate to be in the range of 29-30% going ahead and the ATP to increase 5-6%. (3) The advertising revenue per screen declined by 13% YoY to 0.49 million on account of a weaker quarter and a price hike during the fag end of the third quarter of FY2016 (it takes a longer time for customers to absorb hikes). (4) The entertainment tax increased to 18.6% as compared with 16.9% in Q4FY2015, led by six properties falling out of tax exemption and also an overall increase in the entertainment tax rate in the Delhi region. (5) The share of Internet booking went up to 27% in Q4FY2016. (6) The NBOC for “Jungle Book” has been Rs140 crore and that for “Fan” has been Rs80 crore till now; the same will be booked in Q1FY2017. (7) ILL expects to add 20 new properties in FY2017 taking the total to 127. It expects to add 89 screens, taking the total to 509 screens by the end of FY2017. It is on track to take the total number of screens to 688 in the next two to three years on the back of the agreements signed. It has also added five IMAX Theaters. 
Maintain Buy with revised PT of Rs285: ILL has missed expectations of an improvement in the operating parameters like advertisement revenues and screen addition. It has also missed the expectations on the margin front. We have revised down our earnings estimates for FY2017 and FY2018 by 4.8% and 6.8% respectively. Nevertheless, we remain positive on ILL, given its aggressive growth plans and healthy balance sheet (lower financial leverage). We expect a gradual improvement in the operating parameters over FY2017 and FY2018. With its strong brand and extended reach ILL is also well poised to leverage the opportunity in India’s under penetrated multiplex sector and growing spending of moviegoers. We maintain our Buy rating on ILL with a revised price target of Rs285.

No comments: