Balkrishna Industries net profit likely to plunge in Q4

Balkrishna Industries, one of the leading automobile component players in the country, will announce its financial results for the fourth quarter ended March 31, 2016 on May 18.

Balkrishna Industries, one of the leading automobile component players in the country, will announce its financial results for the fourth quarter ended March 31, 2016 on May 18.

As per IIFL’s forecast, the company is expected to register a net revenue of Rs.770 crore, a growth at 2.7% qoq, while a decline of 13.8% on yoy basis.

Operating profit margin of the company is likely to be at 24.7%, a rise of 891 bps yoy and 12 bps qoq.

IIFL estimates the company’s net profit to be at Rs.83 crore, which constitutes a drop of 38.9% qoq and 46.2% yoy.

According to IIFL estimates, autos are to register strong PAT growth (32.4% yoy) with most major players doing well. Auto volumes were robust across segments, except cars. OPM of most companies under coverage will rise on account of benign commodity prices and operating leverage.

Auto component players are expected to see another quarter of decent growth as revenues rise on the back of good OEM demand and margins expand as a result of benefits of operating leverage. Replacement demand in certain segments such as tyres has also started picking up.

Other key quarterly results on May 18 include Corporation Bank, IFB Industries, Indian Hotels, JK Lakshmi Cement, JSW Steel, Kirloskar Oil Engine, Majesco Ltd, PNB, PTC India, Ratnamani Metals, Skipper, Tata Communication and Torrent Power.

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.

Axis Bank keeps MCLR unchanged

The bank's marginal cost of funds based lending rate for overnight loans will be 8.95%; the rate for one month will come in at 9.05% and for three months it will be 9.25%.

Axis Bank has kept its lending rates based on marginal cost of funds unchanged effective from 18 May 2016. The bank's marginal cost of funds based lending rate for overnight loans will be 8.95%; the rate for one month will come in at 9.05% and for three months it will be 9.25%.

The MCLR on 6-month loans will be 9.3% and will be 9.35% for one-year loans. MCLR will be 9.45% on two-year loans and it will be 9.5% for three-year loans.

Stock view:

Axis Bank Ltd is currently trading at Rs. 497.3, down by Rs. 5.7 or 1.13% from its previous closing of Rs. 503 on the BSE.

The scrip opened at Rs. 500 and has touched a high and low of Rs. 502.95 and Rs. 496 respectively. So far 1265395(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 119988.82 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 613.4 on 16-Jul-2015 and a 52 week low of Rs. 366.65 on 18-Jan-2016. Last one week high and low of the scrip stood at Rs. 507 and Rs. 477.4 respectively.

The promoters holding in the company stood at 29.73 % while Institutions and Non-Institutions held 56.64 % and 10.27 % respectively.

The stock is currently trading above its 200 DMA.

SBI gains; seeks nod for subsidiaries merger

State Bank of India has announced that it is seeking "in principle sanction" of the Central Government to enter into negotiation with the subsidiary banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank Limited to acquire their businesses including assets and liabilities.

SBI stock was up by 1% at Rs.178. State Bank of India has announced that it is seeking "in principle sanction" of the Central Government to enter into negotiation with the subsidiary banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank Limited to acquire their businesses including assets and liabilities. 

While the decision is purely exploratory at this stage and there is no certainty in relation to our completing the acquisitions, the Bank, as a matter of good corporate governance to ensure complete transparency, are intimating this decision.

The scrip opened at Rs. 177.1 and has touched a high and low of Rs. 179 and Rs. 173.65 respectively. So far 7730226(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 137439.97 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 305 on 22-May-2015 and a 52 week low of Rs. 148.3 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 189.4 and Rs. 175.3 respectively.

The promoters holding in the company stood at 60.18 % while Institutions and Non-Institutions held 27.88 % and 10.07 % respectively.

The stock is currently trading below its 200 DMA.

RBL Bank plans to launch IPO in July

The company received a conditional approval from the capital markets regulator for its initial public offer (IPO) last month.

RBL Bank Ltd (formerly Ratnakar Bank) is planning to launch IPO in July, according to reports.

Report says that the company received a conditional approval from the capital markets regulator for its initial public offer (IPO) last month.

The company has been waiting for approval for almost 11 months.

The bank had planned to raise Rs.1,100 crore through IPO On 21 December 2015.

Top 14 stocks in focus today: SBI, Punjab National Bank, Piramal Ent

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

The Indian stock market to open on a flat note. On the gobal front, Asian stocks trading mixed. US stock indices ended lower on Tuesday, with the technology shares leading the fall, after Federal Reserve officials indicated that interest rates could be raised as early as June.

Wall Street is likely to witness more swings on Wednesday when the April FOMC meeting minutes are released.

The Dow Jones Industrial Average tumbled 180.73 points, or 1%, to end at 17,529.98. The S&P 500 index fell by 19.45 points, or 0.9%, to close at 2,047.21, with nine of the 10 main sectors finishing lower. The Nasdaq Composite index declined 59.73 points, or 1.3%, to settle at 4,715.73.

West Texas Intermediate (WTI) crude oil rose by 1.2% to settle at US$48.31 a barrel. Crude oil had jumped by more than 3% on Monday.

Among stocks to watch:
SBI: State Bank of India may merge its five associate banks and Bharatiya Mahila Bank (BMB) with itself to emerge as a financial behemoth, with assets worth Rs.37 lakh crore, as per media reports. State Bank of India is reportedly planning to sell a part of its non-core assets in National Stock Exchange (NSE), according to reports.

Piramal Enterprises: Ajay Piramal plans to merge all his finance entities and those of the Shriram Group, where he is the single largest shareholder, reports a business daily. 

Punjab National Bank: Punjab National Bank, one of the leading public sector banks in India, will announce its Q4 numbers today. IIFL estimates the bank’s net loss to widen to Rs.60 crore, at a rate of 120% yoy and 217% qoq.    

Infosys: Infosys is partnering with three of the world’s leading e-learning firms - Udacity, Coursera and edX - in a bid to help its 194,000-odd employees learn new artificial intelligence (AI) technologies, reports a business daily.

JSW Steel: JSW Steel Ltd, one of the leading steel producers in India, will announce its Q4 results today. As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is likely to plummet to Rs. 10,704 crore, at a rate of 15% yoy; however, the same is expected to increase 23.1% qoq.        

Tata Steel, Tata Metaliks: Tata Steel has recalled its plan sent to the Bombay High Court for a merger of Tata Metaliks and Tata Metaliks DI Pipes with itself.

Bajaj Auto: Bajaj Auto Managing Director Rajiv Bajaj has reportedly criticized NCAP's stand on the safety rating for the Bajaj Qute, India's only quadricycle, reports a business daily.

Reliance Jio: Reliance Jio has become the fifth largest smartphone company by shipments owing to an increased offtake of 4G handsets, according to International Data Corp (IDC).

Tata Comm: Tata Communications, one of the leading telecom service providers in the country, will announce its Q4 numbers today. As per IIFL’s forecast, the company is expected to register a net revenue of Rs.5,179 crore, growing at 1.5% qoq and 5.4% on yoy basis.

GlaxoSmithkline Consumer: GlaxoSmithkline Consumer Healthcare posted a net profit of Rs. 1806.80 mn for the quarter ended March 31, 2016 as compared to Rs. 1967.80 mn for the quarter ended March 31, 2015.

SBBJ: State Bank of Bikaner and Jaipur has announced that in-principle approval of the Board of Directors of the Bank accorded to enter into negotiation with State Bank of India for acquisition of the business including assets and liabilities of State Bank of Bikaner and Jaipur by State Bank of India.

Hindustan Unilever, LT Foods: Hindustan Unilever has received Competition Commission of India's nod to sell its rice export business to Delhi-based LT Foods. The deal, announced in March, allows transfer of the brands and inventory to LT Foods for Rs.25 crore.

HDFC: The company said it will raise Rs.1,500 crore by issuing debentures on a private placement basis.

Coal India: The Competition Appellate Tribunal has quashed Rs.1,770 crore penalty on Coal India, as per a TV report.

Mahindra Holidays & Resorts India Ltd: The company reported a standalone net profit of Rs.32.09 crore for the quarter ended March 31, 2016.

United Bank of India: The bank posted a net loss of about Rs.413.04 crore for Q4 of FY16, against a profit of around Rs.105.52 crore in the same period last year.

Syndicate Bank: The bank reported a net loss of Rs.2,158.17 for the quarter ending March 2016 due to more than three-fold rise in provisions for bad loans and contingencies.

Voltas: The company posted a net profit of Rs.1764.30 mn for the quarter ended March 31, 2016 compared with Rs.1180.40 mn for the quarter ended March 31, 2015. 

Motherson Sumi: The company has posted a net profit of Rs.4137.20 mn for the quarter ended March 31, 2016 compared with Rs.3401 mn for the quarter ended March 31, 2015.

Opening Bell - Sensex slips over 150 points; Nifty below 7850

At 9:15 AM, the S&P BSE Sensex is trading at 25,592 down 182 points, while NSE Nifty is trading at 7,827 down 64 points.

At 9:15 AM, the S&P BSE Sensex is trading at 25,592 down 182 points, while NSE Nifty is trading at 7,827 down 64 points.

The Indian rupee opened lower by 8 paise at 66.95/$ against US Dollar on Wednesday as against the previous close of 66.87/$. The rupee hit 2-month on persistent dollar demand from banks and importers on the back of higher greenback in the overseas market.

JSW Steel, PTC India and PNB are among the companies which will announce their numbers today. Global cues are weak. US stock indices ended lower on Tuesday, with the technology shares leading the fall, after Federal Reserve officials indicated that interest rates could be raised as early as June. Wall Street is likely to witness more swings on Wednesday when the April FOMC meeting minutes are released. The Dow Jones Industrial Average tumbled 180.73 points, or 1%, to end at 17,529.98. The S&P 500 index fell by 19.45 points, or 0.9%, to close at 2,047.21, with nine of the 10 main sectors finishing lower. The Nasdaq Composite index declined 59.73 points, or 1.3%, to settle at 4,715.73.

West Texas Intermediate (WTI) crude oil rose by 1.2% to settle at US$48.31 a barrel. Crude oil had jumped by more than 3% on Monday.

As part of an immediate relief kit to the farmers and rural population suffering an oppressive drought, the government should take the load of their bank loan repayments upon itself, besides reaching food grains to the affected areas at highly subsidized rates, ASSOCHAM President, Mr Sunil Kanoria said today.

Piramal Enterprises Ltd is reportedly planning to bring all his finance entities under one roof, including those of the Shriram Group, according to media reports.Report says that a merger will create one of the biggest financial services companies in India, with a presence in both institutional and retail business

The Tata group is set to launch its e-commerce venture on 27th May under the brand name, Tata CLiQ. The e-commerce platform will be housed under Tata Unistore, a Tata Industries incubated business venture.

Bajaj Auto Managing Director Rajiv Bajaj has reportedly criticized NCAP's stand on the safety rating for the Bajaj Qute, India's only quadricycle, reports a business daily.

Motherson Sumi Systems rallies 8% on Q4 results

The company has posted a net profit of Rs. 4137.20 million for the Quarter ended March 31, 2016 as compared to Rs. 3401.00 mn for the Quarter ended March 31, 2015.

Motherson Sumi Systems was higher by 8% at Rs. 288. The company has posted a net profit of Rs. 4137.20 million for the Quarter ended March 31, 2016 as compared to Rs. 3401.00 mn for the Quarter ended March 31, 2015. 

The company has posted a net profit of Rs. 4137.20 million for the Quarter ended March 31, 2016 as compared to Rs. 3401.00 mn for the Quarter ended March 31, 2015. 

The scrip opened at Rs. 269.9 and has touched a high and low of Rs. 290 and Rs. 262.1 respectively. So far 9465676(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 35459.77 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 395.85 on 06-Aug-2015 and a 52 week low of Rs. 206.2 on 25-Feb-2016. Last one week high and low of the scrip stood at Rs. 268.8 and Rs. 248.25 respectively.

The promoters holding in the company stood at 65.61 % while Institutions and Non-Institutions held 23.52 % and 10.87 % respectively.

The stock is currently trading above its 200 DMA.

Motherson Sumi likely to be soft in Q4 performance

Motherson Sumi Systems, one of the leading automobile component players in the country, will announce its financial results for the fourth quarter ended March 31, 2016 on May 17.

Motherson Sumi Systems, one of the leading automobile component players in the country, will announce its financial results for the fourth quarter ended March 31, 2016 on May 17.

As per IIFL’s forecast, the company is expected to register a net revenue of Rs.10,310 crore, growing at 4.6% qoq and 8.8% on yoy basis.

Operating profit margin of the company is likely to be at 10.0%, a rise of 44 bps yoy and 12 bps qoq.

IIFL estimates the company’s net profit to be at Rs.330 crore, which constitutes a 7.5% rise qoq, however a decline of 2.9% yoy.

Motherson is expected to be slightly soft in this quarter. According to IIFL estimates, autos are to register strong PAT growth (32.4% yoy) with most major players doing well. Auto volumes were robust across segments, except cars. OPM of most companies under coverage will rise on account of benign commodity prices and operating leverage.

Auto component players are expected to see another quarter of decent growth as revenues rise on the back of good OEM demand and margins expand as a result of benefits of operating leverage. Replacement demand in certain segments such as tyres has also started picking up.

Other key Q4 results on May 17 are Glaxosmithkline Consumer Healthcare, Mahindra Holidays & Resorts, Bharat Forge, MPS Ltd, MT Educare, OCL India, Symphony Limited and Voltas Limited.

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.

Petronet LNG: Q4 net profit at Rs.239.3 crore

The board of directors of the company at its meeting held on May 16, 2016, inter alia, has recommended dividend @ 25% on Paid up share capital of the company (i.e. Rs. 2.50 per Share) for the year ended March 31, 2016.

Petronet LNG Ltd has announced the following results for the quarter & year ended March 31, 2016.

The company has posted a net profit of Rs. 239.3 crore for the quarter ended March 31, 2016 as compared to Rs. 300.7 crore for the quarter ended March 31, 2015. Total Income has decreased from Rs. 7219.3 crore for the quarter ended March 31, 2015 to Rs. 6107.9 crore for the quarter ended March 31, 2016.

The audited standalone results for the Year ended March 31, 2016.

The company has posted a net profit of Rs. 9140.20 million for the year ended March 31, 2016 as compared to Rs. 8825.20 million for the year ended March 31, 2015. Total Income has decreased from Rs. 396557.30 million for the year ended March 31, 2015 to Rs. 273038.70 million for the year ended March 31, 2016.

The audited consolidated results for the year ended March 31, 2016

The company has posted a net profit of Rs. 9285.30 million for the year ended March 31, 2016 as compared to Rs. 9048.00 million for the year ended March 31, 2015. Total Income has decreased from Rs. 397834.00 million for the year ended March 31, 2015 to Rs. 273955.60 million for the year ended March 31, 2016.

The board of directors of the company at its meeting held on May 16, 2016, inter alia, has recommended dividend @ 25% on Paid up share capital of the company (i.e. Rs. 2.50 per Share) for the year ended March 31, 2016.

Top 20 stocks in focus today: Motherson Sumi, TCS, Pfizer

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

Motherson Sumi: Motherson Sumi Systems, one of the leading automobile component players in the country, will announce its Q4 numbers today. As per IIFL’s forecast, the company is expected to register a net revenue of Rs.10,310 crore, growing at 4.6% qoq and 8.8% on yoy basis.

BPCL, IOC, HPCL: Petrol price was on Monday hiked by 83 paise a litre and diesel rate by Rs 1.26 per litre - the second increase in rates this month. 

NTPC, Coal India: NTPC Ltd and Coal India Ltd (CIL) on Monday formed a joint venture that will set up two urea factories on the premises of ailing Fertilizer Corporation of India Ltd (FCIL) to help in its revival.

BHEL: BHEL has bagged a Rs.16 billion order from a joint-venture company of NTPC and SAIL to set up a coal-based thermal power project in Odisha.

Piramal Enterprises Ltd: Piramal Enterprises reported a consolidated net profit of Rs.180.24 crore for the March quarter. Business tycoon Ajay Piramal-led Piramal Enterprises has decided to demerge its healthcare and financial services businesses to grow the unrelated divisions separately, marking an important turn in the legacy of the diversified conglomerate.

L&T: Saudi Aramco has awarded a US$1 billion-plus contract to India’s Larsen & Toubro Ltd (L&T) and Singapore-based Emas AMC for the expansion of the offshore Hasbah sour gas field, reports a business daily.

Gujarat Heavy Chemicals Ltd: GHCL has entered the honey market through its FMCG brand i-Flo, reports a business daily. GHCL has roped in Nector Fresh located in Mysuru for Karnataka and other southern states, reports the daily. For spices and sprinklers, the company has an understanding with GT Foods located in Tamil Nadu.

Aurobindo Pharma Ltd: Aurobindo Pharma has received final nod from the US health regulator to manufacture and market its anaesthetic Bupivacaine Hydrochloride injection in the American market.

Voltas: Voltas Ltd.,makers of aircoolers and airconditioners, will announce its financial results for the fourth quarter result today. IIFL estimates the company’s net profit to increase to Rs.120 crore at 1.7% yoy and 121.4% qoq.

Pfizer: Pfizer Inc. will buy Anacor Pharmaceuticals Inc. in a deal valued at $5.2 billion, net of cash, for access to Anacor’s non-steroidal topical gel to treat eczema, as per media reports.

Tata Consultancy Services, Siemens: TCS, a leading global IT services, consulting and business solutions organization, and Siemens, a leading global technology powerhouse, are leveraging their longstanding partnership to expand and enhance the delivery of big data analytics to the global manufacturing industry.

Essar Power, Monnet Ispat: The Government will issue notices to Essar Power for not paying dues to Jharkhand over the Tokisud North coal block and Monnet Ispat & Energy for late payment of upfront fees on a mine it won in auction, a senior official has been quoted as saying by a business daily. 

L&T Finance Holdings: L&T Finance Holdings is considering selling stake to a foreign partner, reports a business daily. The non-banking finance company (NBFC) arm of engineering giant Larsen & Toubro (L&T) is also not averse to exiting the business altogether, says the financial newspaper.

Tata Power: The Tata Power is planning to sign $460 mn 5-year refinancing with 19 Lenders, according to reports.

Wipro Ltd:  Wipro Ltd has partnered with Xactly for Cloud-based Solutions to help customers improve sales performance and drive growth.

GSK Consumer Health: GlaxoSmithKline Consumer Healthcare Ltd, one of the leading firms in consumer healthcare space in India, will announce its Q4 numbers. IIFL estimates that the company’s net profit is expected to surge to Rs. 201 crore, at a rate of 2.3% yoy and 52.6% qoq.   

Tourism Finance Corporation of India: Tourism Finance Corporation of India, financial services company, reported standalone net profit of Rs. 32.47 crore for the quarter ended March 31, 2016, registering growth of 189.21% yoy and 108.56% qoq.

NBCC: The company’s consolidated revenue stood at Rs. 2,313.38 crore, up 108.68% yoy and 69.78% qoq.

Gujarat Fluorochemicals: The company’s consolidated revenue stood at Rs. 2,384.36 crore, up 53.51% yoy and 48.44% qoq.

Symphony: Symphony, one of the leading consumer goods companies in the country, will announce its Q4 numbers today. IIFL estimates the company’s net profit to be at Rs.34 crore, which constitutes a 28.1% drop qoq and 6.1% yoy.