Apollo Tyres: Q4 earnings to sink yoy but rise qoq

IIFL estimates the company’s net profit to fall to Rs.299 crore at 2.6% yoy, but increase 7.2% qoq.

Apollo Tyres, one of the leading tyre manufacturers in India, will announce its financial results on May 11 for the fourth quarter ended March 31, 2016.

IIFL estimates the company’s net profit to fall to Rs.299 crore at 2.6% yoy, but increase 7.2% qoq.  
 
As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is expected to plummet to Rs.3,071 crore at a rate of 1.5% yoy, but the same is likely to rise 4.3% qoq.      

Operating Profit Margin is likely to come in at 17.2%, with a yoy surge of 58 bps.

Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines.

Other key quarterly results on May 11 include Asian Paints, Chambal Fertilizers, Gulf Oil, Havells India, Indian Bank, Oracle Financial, Oriental Bank of Commerce, Siti Cable, South Indian Bank, TD Power Systems, TVS Srichakra, and Vakrangee.

Ujjivan Financial Services sees steady listing

On BSE, the stock opened at Rs.227, 8% higher compared to its issue price. It touched a high of Rs.230 and low of Rs.217 on the BSE so far.

Ujjivan Financial Services trading at Rs. 237.25 on BSE. 

Ujjivan Financial Services was listed at the exchanges at Rs.231.90 per share up, 10.4% over its issue price of Rs.210 per share.

On BSE, the stock opened at Rs.227, 8% higher compared to its issue price. It touched a high of Rs.230 and low of Rs.217 on the BSE so far.

The company has already received in-principle nod to set up a small finance bank, is the second microfinance firm to go public this fiscal.

The Rs.885 crore IPO of Ujjivan Financial Services was oversubscribed nearly 41 times earlier this month. The price band for the offer was fixed at Rs.207-210 and was open for subscription from April 28-May 2.  

In two block deals, 6.6 lakh shares were traded at Rs.228.15 - 231.85 per share on the NSE. 

The Reserve Bank of India has yesterday notified that in view of listing of shares of the company, Ujjivan Financial Services Limited on stock exchange, the aggregate investment ceiling for Foreign Institutional Investor (FII) / Registered Foreign Portfolios Investors (RFPI) investment under Portfolio Investment Scheme shall remain at 49%.

Jain Irrigation Systems rallies 7%

The scrip opened at Rs. 67 and has touched a high and low of Rs. 72 and Rs. 67 respectively.

Jain Irrigation Systems Ltd stock was higher by 7% at Rs. 71.

The scrip opened at Rs. 67 and has touched a high and low of Rs. 72 and Rs. 67 respectively. So far 8911074(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3019.79 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 79 on 23-Jul-2015 and a 52 week low of Rs. 47 on 17-Feb-2016. Last one week high and low of the scrip stood at Rs. 66.95 and Rs. 62.1 respectively.

The promoters holding in the company stood at 30.9 % while Institutions and Non-Institutions held 45.91 % and 23.03 % respectively.

The stock is currently trading above its 200 DMA.

Havells India enters into agreement with Pan Projects

Havells India Ltd has announced that Karnataka Industrial Areas Development Board has allotted land admeasuring 62.09 acres to the Company, at Vasanthanarasapura Industrial Area, Tumakuru in the state of Karnataka for establishing a Unit for manufacturing of Cable & Wire, MCB, LED, Electronics, Solar Lights at a tentative rate of Rs. 40.35 lakhs per acre.

Havells India Ltd has announced that Karnataka Industrial Areas Development Board has allotted land admeasuring 62.09 acres to the Company, at Vasanthanarasapura Industrial Area, Tumakuru in the state of Karnataka for establishing a Unit for manufacturing of Cable & Wire, MCB, LED, Electronics, Solar Lights at a tentative rate of Rs. 40.35 lakhs per acre.

The Company has entered into a non-binding MoU with M/s Pan Projects for taking on lease the land for setting up of manufacturing facility in the State of Assam to enable the Company to avail of the rebates and benefits under the policies of Government of India and Assam. The arrangement is subject to change of land use and various other government approvals.

With respect to the earlier communication sent to the Stock Exchanges on 4th January, 2013, QRG Enterprises Limited, one of the promoter companies, has vide an Assignment Agreement dated 9th May, 2016, completed the assignment of the brand "HAVELLS" for electrical products, to the Company effective 1st April, 2016."

Titan eyes 15-20% growth in jewellery biz in FY17

"We are targeting about 15-20-per cent growth in the jewellery business because of three things. One is what we see the market to be in the current year - the initiatives that we have undertaken in wedding segment as well as the new product introductions. We have had great success last year. More importantly, the golden harvest scheme is available all through the 12 months," Bhat told a business news channel.

Titan is targeting 15-20 per cent growth in the jewellery business in FY17 with gold harvest and other initiatives, 

MD Bhaskar Bhat has been quoted as saying.

"We are targeting about 15-20-per cent growth in the jewellery business because of three things. One is what we see the market to be in the current year - the initiatives that we have undertaken in wedding segment as well as the new product introductions. We have had great success last year. More importantly, the golden harvest scheme is available all through the 12 months," Bhat told a business news channel.

During Q4 FY16, consumer sentiment was hit owing to the lowering of PAN card limit, while sales also suffered due to the nationwide jewellers’ strike against the proposed excise duty, he said.

"Overall, the year has been disappointing. The combination of factors are: the first 8 months there was no golden harvest in jewellery, so that was a real drop; then the regulatory impact of the PAN card and thereafter the strike," Bhat has been quoted as saying by the channel.

In watches, weak consumer sentiment led to weak growth and Titan's inability to compress cost as well as certain absence of products below INR 2,000 in brand Titan, according to Bhat. 

"We have grown, however, quite well in the watches in the higher price segment. So, that is the direction in which we are headed," Bhat said.

Eyewear continues to do well, Bhat said. "We have had both same-store growth as well as overall growth in that business. And, we are looking for aggressive expansion in that segment," he said. 

In the current year (FY17), the jewellery will continue to grow topline as well as the network; eyewear will aggressively grow network, and watches will be in a correction phase, according to Bhat.

"Overall, we see a good year, but we are cautiously optimistic," he told the channel.

Titan Company Ltd

Bharati Defence plans to hive off Pinky Shipyard

Edelweiss Asset Reconstruction Co Ltd (Edelweiss ARC), which holds ~75% of the shipyard’s outstanding debt, is in talks with a leading Russian defence shipmaker to invest up to 49% in Pinky Shipyard, says the financial newspaper.

Bharati Defence & Infrastructure Ltd (formerly known as Bharati Shipyard Ltd) plans to make its Goa-based defence shipyard Pinky Shipyard Ltd a separate entity and to bring in an international defence shipyard as an equity partner, reports a business daily.

Edelweiss Asset Reconstruction Co Ltd (Edelweiss ARC), which holds ~75% of the shipyard’s outstanding debt, is in talks with a leading Russian defence shipmaker to invest up to 49% in Pinky Shipyard, says the financial newspaper.

Edelweiss ARC believes that Bharati Defence may be able to clinch a deal with the Russian entity, given that the process of restructuring and consolidation is already behind it, Sameer Kaji, Consultant at Edelweiss Alternate Asset Advisors Ltd has been quoted as saying.

“We are adopting a two-pronged approach for the revival of Bharati Defence. Firstly, we will demerge Pinky Shipyard as a part of ring fencing it and selling equity stake up to 49% to restart defence shipbuilding orders to improve cash flows. We are talking to a government-run Russian defence ship maker so that Pinky Shipyard can start building interceptor boats and other defence projects,” Kaji told the paper.

A potential deal could be concluded in the next 3-6 months, said Kaji.

Kaji told the daily that the company was in talks with international lenders to secure ~INR 200 crore in funding to help restart commercial shipbuilding work.

Bharati Defence, with debt of INR 8,500 crore as of March 2013, went through a corporate debt restructuring (CDR) exercise with creditors. The exercise was not successful and the company exited the CDR cell in 2014.

Following this, the lenders’ consortium sold a majority of the loans to Edelweiss Asset Reconstruction Co Ltd.

Top 15 stocks in focus today: Tata Steel, Kaveri Seeds, Ujjivan Financial Services

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Ujjivan Financial Services: Ujjivan Financial Services is set to list on the BSE and NSE today. The Rs.885 crore IPO of Ujjivan Financial Services was oversubscribed nearly 41 times earlier this month. The price band for the offer was fixed at Rs.207-210 and was open for subscription from April 28-May 2.

Kaveri Seed: Kaveri Seed Company Ltd, one of the leading producers of other agricultural products in India, will announce its Q4 numbers today. As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is expected to rise to Rs. 41 crore, at a rate of 2% yoy; however, the same is likely to tumble 55.7% qoq.

Tata Steel: Tata Steel Europe reportedly said that seven expressions of interest for British operations had been taken forward to the next stage of the sale process.

Alstom India: The company reported about 62% drop in its net profit to Rs.27.40 crore for the quarter ended March 31, 2016. The company's net profit stood at Rs.71.93 crore in the same quarter a year ago. 

Dalmia Cements: Dalmia Cements Ltd withdrew a challenge to a conditional approval given by India’s anti-trust regulator to the proposed merger of cement makers Lafarge and Holcim in India.

HUL: The company’s standalone revenue stood at Rs. 7,945.66 crore, up 3.52% yoy but down 0.44% qoq.

ONGC, Gujarat State Petroleum Corp: Gujarat State Petroleum Corp (GSPC) is in talks with Oil & Natural Gas Corp Ltd (ONGC) on selling a stake in its gas block off the east coast to revive the deep water field, reports a business daily.

INKEL Ltd: The Kerala's PPP-model infrastructure development company promoted by the state government, posted 25% increase in net profit in 2015-16 with a net profit of Rs.19.67 crores, up 25% from a year earlier.

Srikalahasthi Pipes: Srikalahasthi Pipes Ltd reported a consolidated net profit rise of 55.7% to Rs.46.1 crore as against Rs.29.6 crore in the same period a year ago.

Crompton Greaves: The company said it has signed a share purchase agreement with First Reserve International, a US private equity fund for an enterprise value of 115 million euros.

Vardhaman Textiles: The board had approved the sale of around a 40% stake in its subsidiary Vardhman Yarns and Threads Ltd (VYTL) to the US-based American & Efrid Global LLC (A&E), the company said in a filing to stock exchanges.

TVS Motor: TVS Motor has secured a patent for an invention relating to an air-injection system operative during deceleration of an automobile engine, reports a financial newspaper.

Shakti Pumps: The Board has approved the Conversion 15 lakhs only Compulsory Convertible Preference Shares of Rs. 100/- each held by AFHoldings into 16,36,363 (Sixteen Lakhs Thirty Six Thousand Three Hundred and Sixty Three Only) Ordinary Equity Shares of Rs. 10/- each in the ratio of 1: 1.0909 constituting 8.90% of the paid up share capital of the Company on fully diluted basis and ranking pari passu with the existing equity shares of the Company and allotment to AFHoldings.

Zee Entertainment: Zee Entertainment Enterprises Ltd., India's top entertainment company, will announce its financial results today. IIFL estimates the company’s net profit to increase to Rs.275 crore, growing at 18.7% yoy and 0.3% qoq.

Titan: Titan is targeting 15-20 per cent growth in the jewellery business in FY17 with gold harvest and other initiatives, MD Bhaskar Bhat has been quoted as saying.

Bharati Shipyard: Bharati Defence & Infrastructure Ltd (formerly known as Bharati Shipyard Ltd) plans to make its Goa-based defence shipyard Pinky Shipyard Ltd a separate entity and to bring in an international defence shipyard as an equity partner, reports a business daily.

NIIT Ltd: NIIT Ltd, one of the leading IT training services providers in India, will announce its Q4 numbers today. As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is expected to increase to Rs. 94 crore, at a rate of 9.4% yoy and 2.2% qoq.

Deepak Nitrite: The company reported a 35% rise in net profit at Rs. 20.56 crore for the quarter ended March 31, 2016, compared to a net profit of Rs 15.23 crore in the same quarter of the previous fiscal. 

Future Group: Future Group is considering hiving off its furniture business under "HomeTown" as a listed entity after merging it with its newly acquired online retailer - FabFurnish, reports a business daily. 

VA Tech Wabag: VA Tech Wabag Ltd has announced that Beijing VA Tech Wabag Water Treatment Technology Co. Ltd., the Company’s step-down subsidiary is liquidated.

Datamatics Global Services: A consortium of Datamatics Global Services and Mikroelektronika has won a contract to provide automatic fare collection (AFC) system for the North–South corridor (Phase 1A) of the Lucknow Metro Rail Project.

Mangalore Chemicals & Fertilizers Ltd: The company said that the urea production is stopped from May 7, 2016 and the production will resume once the water is available.

Opening Bell - Sensex, Nifty open in red

At 9:15 AM, the S&P BSE Sensex is trading at 25,673 down 16 points, while NSE Nifty is trading at 7,857 down mere nine points. The BSE Mid-cap Index is trading up 0.12% at 11,115, whereas BSE Small-cap Index is trading up 0.14% at 11,050.

At 9:15 AM, the S&P BSE Sensex is trading at 25,673 down 16 points, while NSE Nifty is trading at 7,857 down mere nine points.

The BSE Mid-cap Index is trading up 0.12% at 11,115, whereas BSE Small-cap Index is trading up 0.14% at 11,050.

The Indian rupee opened lower by 8 paise at 66.66/$ against US Dollar on Tuesday as against the previous close of 66.58/$. On Monday, the rupee has lost substantial ground against the greenback, with values quoted at 66.70. Strength in US dollar against the basket of major currencies is taking a toll on the emerging market currencies as well. The recovery in US dollar is not surprising, as it has been exhibiting resilience at lower levels.

Results to watch out for include Zee Entertainment, Repco Home, NIIT, SRF and Radico Khaitan among others. The global cues are mixed for now. Japan's Nikkei is higher and so is South Korea's Kospi. China's Shanghai Composite is lower. Chinese CPI for April was flat at 2.3% while PPI for April fell 3.4% as against 4.3% fall in the preceding month. US technology shares ended modestly higher while the S&P 500 finished flat and the Dow industrials closed in the negative territory. The Nasdaq Composite index advanced 14.05 points, or 0.3%, to finish at 4,750.21.  The S&P 500 index rose by 1.55 points to close at 2,058.69, led by a 1.1% gain in Health-care stocks. The Dow Jones Industrial Average slipped by 34.72 points, or 0.2%, to close at 17,705.91.

Crude-oil futures rose overnight, but turned sharply lower midmorning as the likelihood of a production freeze from OPEC faded post the removal of Saudi Arabia’s Oil Minister, Ali al-Naimi. US traded crude oil futures fell by US$1.22, or 2.7%, to settle at US$43.44 per barrel. Market sentiment was further dented by the weak earnings, with S&P 500 companies posting their lowest EPS growth rate since the financial crisis.

Meanwhile, Minneapolis Fed President Neel Kashkari said on Monday that he supported the current dovish stance of the Federal Reserve. He also said that markets pay too much attention to statements from the US central bank.