Markets end Samvat 2072 on flat note, Midcaps outshine

Benchmark share indices closed higher, amidst a choppy trading session, with Tata Motors benefitting the most following a rebound in Tata Group stocks while recovery in financials also helped sentiment. The benchmark S&P Sensex ended at 27,942 level up 26 points or 0.1 per cent whereas the Nifty50 Index ended at 8,638 up 23 points. The broader markets outperformed benchmark indices. The S&P BSE Midcap and Smallcap closed nearly 1 per cent higher.

An analyst said that the occurrence of a ‘Bullish Hammer’ at the retracement support escalates the expectation of a move beyond channel pattern. A breach beyond ‘8,730’ from hereon could increase the momentum. Hence longs could be started with a stop below ‘8,540’.
Asian stocks saw a mixed trend. US stocks settled with meek losses yesterday as a selloff in the government bonds hit yield-sensitive sectors like real estate and utilities.

VALUABLE METALS GLITTER DURING THE FESTIVE SEASON:

Diamond-studded or platinum jewelry is leading the trend this Diwali due to growing change in the mindset of women, particularly working women, away from their role as homemakers, who take jewelry more as a daily wearable than buying gold with a mindset of investing, a survey said.

High gold prices and innovations on the part of jewelry companies, especially the giants, are driving the change in the fashion trend. Even within gold jewelry, the trend is seen on lower-cost jewelry, though more needs to be done to allure consumers. Small items like earring, light bangles and rings witness heavy demand.

STOCK TRENDS:

Top gainers:

The top gainers from the Sensex pack were Tata Motors, Coal India, Bajaj Auto, Dr Reddy’s Labs and Tata Steel, all surging between 2 per cent-3 per cent. On the losing side, ICICI Bank, Asian Paints, Cipla, ONGC and Bharti Airtel were down 1 per cent-2 per cent. 

IT stocks:

Shares of two IT majors Infosys and Wipro hit their respective 52-week lows on the BSE in intra-day trade on Friday.

Chemical Stocks:

Shares of mid & small sized chemicals firms were in focus and rallied by up to 20 per cent on the BSE. Thirumalai Chemicals, IG Petrochemicals, Ultramarine Pigments, Plastiblends (India), Jayant Agro-Organics, Vishnu Chemicals, Keltech Energies, Mysore Petrochemcials, Sudarshan Chemical Industries, Punjab Chemicals and Philips Carbon Black were up 5 per cent to 20 per cent.

Stocks which rallied:

• Tech Mahindra rallied 5 per cent on the BSE after the firm reported dollar revenue growth of 5 per cent sequentially on a constant currency basis, best among its peers for the second quarter.
•  NMDC traded higher to its 52-week high of Rs 132 and ended up 6.2 per cent on the BSE, after the company made an announcement of signing of a tripartite pact with the Government of Madhya Pradesh and MPSMCL – Madhya Pradesh State Mining Corporation Limited for geological and geophysical exploration for numerous minerals in the state.
• Shriram City Union Finance surged 8 per cent to Rs 2,546, also its record high on the BSE, after the company registered a strong 34.3 per cent year-on-year growth in net profit at Rs 204 cr for the quarter ended September 30, 2016 on the back of healthy net interest income.

Tata stocks:

Tata Group shares were trading higher by up to 5 per cent, recouping part of their losses recorded in past 3 trading sessions. Tata Motors, Tata Communications, Tata Motors DVR, Tata Metaliks, Tata Teleservices (Maharashtra), Tata Elxsi, Tata Coffee, Tata Sponge Iron, Tata Global Beverages were up between 2 per cent-5 per cent on the BSE. TCS, however, was down nearly 1 per cent.

Tata Steel: European Consolidation Strategy is on

Tata Steel on Friday said that it was continuing to pursue European consolidation strategy and was in talks with Thyssenkrupp AG for potential joint venture (JV) for European steel business, following alleged disclosure from ousted chairman Cyrus Mistry that some group companies could face a potential writedown of 18 billion dollars.

Tata Steel said in a BSE filing that in response to the recent media reports, the company continues to pursue its European consolidation strategy and the talks with Thyssenkrupp AG (as announced on 8th July, 2016) for a potential JV – joint venture of its European steel business are presently ongoing and progressing.

It added that there could be however no guarantee that these talks would culminate in a definitive agreement between the parties. The firm put it on record that Tata Steel UK was also deeply engaged with all relevant stakeholders in the United Kingdom to find a structural solution and a way forward in regards to the affordability of the legacy pension scheme liabilities.

Tata Steel said that it was pursuing a completely separate process for the potential sale of the South Yorkshire-based Specialty Steels business in UK. It also clarified that any further announcement on the issue would be made at an appropriate time.

Meanwhile, the management team and the employees of Tata Steel continue to work on enhancing and improving the underlying performance of the European business amidst challenging business conditions, the company added. These comments from the firm come against the backdrop of the high-profile ‘Tata-Mistry’ case or ‘Tata-Mistry divorce’ to put it rhetorically.

In an explosive letter to Tata Sons board members, Mistry leveled a series of allegations against Ratan Tata and challenged that he was pushed into a position of a ‘lame duck’ chairman and changes in the decision-making process gave birth to alternative power centres in the massive Tata group. Cyrus Mistry warned that the salt-to-software conglomerate might face writedowns due to 5 unprofitable businesses he had inherited.

Cyrus Mistry further said that he had inherited a debt-laden enterprise saddled with losses and went on further to single out Indian Hotels, passenger-vehicle operations of Tata Motors, European operations of Tata Steel, part of the group’s power unit and its telecommunications ancillary as ‘legacy hotspots’.

The Tata-Mistry case has had a negative impact on the Tata stocks. However, Tata Steel share price has shown signs of recovery. The stock closed at Rs.405.45, over 2 per cent up on the National Stock Exchange (NSE).

Varun Beverages IPO Receives Tepid Demand On The Closing Day

Varun Beverages launched its initial share sale on Wednesday. The IPO closed on 28 October. Though getting fully subscribed on day 2, the initial public offering of Varun Beverages faced dull demand in the bidding process on Friday.

Data composed from BSE and NSE hinted that the issue received bids for 1,87,63,140 shares by 11.30 am on Friday against the total issue size of 1,76,50,000 shares. Major demand came from qualified institutional buyers, who bade for around 3 times their quota limit. Quota limits for HNIs and retail investors were yet to see full subscription

Many analysts have had a mixed view on the issue. Back-of-envelop calculation implies a PE of 62.5 times and EV/Ebitda of 13.3 times in CY16E for the IPO on a TTM basis. Valuations appear expensive as compared with its global peers, which are trading at 33 times PE and 13.8 times EV/Ebitda.

Snippets of day 2

Varun Beverages Ltd is the world’s second largest PepsiCo Inc. bottler. It saw its initial public offer (IPO) fully subscribed on the second day of the offering as per the data from stock exchanges.

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As on Thursday, the total subscription to the IPO stood at 1.02 times. The category for institutional investors was subscribed 2.95 times, or 295 per cent, whereas the section for high net-worth individuals and retail investors were subscribed 0.21 times (or 21per cent) and 0.29 times (or 29 per cent), respectively.

The shares have been priced in Rs440-445 per share. At the upper end of the price band, the company is going to raise a little more than Rs1,100 crore.

Promoters

Promoters namely  Ravi Jaipuria and his son, Varun Jaipuria, will sell 5 million shares each in the IPO, whereas the company will sell 15 million new shares to raise primary capital to be invested in the company.

Investors

Investment banks Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd CLSA India Pvt. Ltd and YES Securities (India) Ltd are administering the IPO.

The company is going to utilize the proceeds from the IPO to repay a part of its Rs1,700 crore debt, taken to fuel its expansion in the past few years. Taking a glance at the debt, Rs600 crore is from PepsiCo and interest-free. Nonetheless, the company still pays close to Rs110 crore in interest per annum on the remaining Rs1,100 crore, which is going to reduce by Rs70 crore post the IPO.

Timeline

2013- Between financial year 2013 and June this year, the company invested Rs2,459.14 crore in expansion and modernization of its production capacities and growing the penetration of its chilling equipment namely visi-coolers.

2015- The company extended its operations by attaining new sub-territories in the North which included four production facilities in Uttar Pradesh, Uttarakhand and Haryana.

2016- It acquired two production facilities in Goa and is also in the process of setting up a greenfield facility in Zimbabwe in anticipation of getting franchise rights for the region.

Varun Beverages accounts for 45 per cent of PepsiCo’s volume in India. The company is the only bottler and distributor for the North and East other than Jammu and Kashmir, Odisha, Bihar and Jharkhand states.

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NTPC Q2 Profit Seen Down 17% but Margin May Expand 450 Bps

State-run power generation company NTPC's Q2 or second quarter standalone profit is expected to fall 17 per cent year-on-year to Rs 2,406 cr, according to average of estimates of analysts polled by the media.

The revenue during the quarter is seen rising 2.4 per cent to Rs 18,329 cr compared with Rs 17,898 cr in same quarter last year, impacted by low generation. Operational performance may support bottomline.

EBITDA or earnings before interest, tax, depreciation and amortization may increase 22.30 per cent year-on-year to Rs 4,930 cr and margin may expand 450 basis points to 27 per cent in Q2 on lower fuel cost.

Market analysts expect generation to be low during Q2, likely to decline 1.9 per cent YoY to 59 billion units because of lesser offtake on the back of better year-on-year monsoon. Commercial capacity is estimated by analysts to be flat at 45.9 GW on sequential basis. Fuel cost is seen to decline on the back of coal rationalization while tariff rate may fall by 2.2 per cent to Rs 3.2 per unit.

Other income is estimated to be down 9 per cent YoY due to lower plant load factor incentives. Key issues to have an eagle eye on would be plant load factor for coal-based projects, incentive income and commercialization & capitalization.

NTPC share price history:

Meanwhile, NTPC share price was trading 0.10 per cent lower at Rs.151.55 on the National Stock Exchange (NSE) today. The scrip opened at Rs. 151.90 from a previous closing of Rs. 151.70. 

NTPC is analyzed by Dynamic Levels Researchers and analysts as the top 500 performing stocks for the current quarter among the 1700 stocks which are listed on the National Stock Exchange (NSE). In order to gain information about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a quick visit to NTPC share price history.

DCM Shriram Q2FY17 profit rises 48%

DCM Shriram on Thursday (27^th October 2016) registered 48 per cent increase in the net profit at Rs 92 crores for the quarter ended 30^th September 2016 on improved sugar prices accompanied by better performance of bioseeds business.

The net profit of the company stood at Rs 62 crores in the year-ago period, the company declared in a statement. Total revenue, however, fell by 2.6 per cent to Rs 1,446 crores in the second quarter of this fiscal from Rs 1,484 crores in the corresponding period of the last year.

The company attributed the second quarter earnings growth to improvement in sugar prices, better performance of bioseed business, and reduction in financial costs.

The Company is engaged in sugar, fertiliser, seeds, chloro vinyl as well as cement businesses among others.

While commenting on the performance of the Company Chairman and Senior Managing Director Ajay Shriram and Vice Chairman and Managing Director Vikram Shriram said that the company delivered encouraging performance in the second quarter. The steps taken over the last few years to improve cost structures and expand volumes in the key businesses have contributed to the sustained improvement in performance.

The capacity expansion as well as technology up-gradation project at Bharuch, commissioned in phases since the month June 2016, is expected to be fully commissioned in the month November 2016.

The Sugar co-gen capacity expansion or efficiency improvement project will also be commissioned in November 2016. Both these projects will contribute to the improved performance going forward.

They also added that the Company has also taken up the following projects to be completed by the fourth quarter of FY18. Chlor Alkali capacity expansion/ upgradation at Kota (Investment- Rs 97.3 crores); 150 kilo litres per day distillery at DSCL Sugar - Hariawan (Investment- Rs 185 crores); expansion of windows fabrication capacity at Fenesta (Investment - Rs 18.5 crores).

"These projects will improve our competitiveness and provide sustained growth over the next few years," they further added.At the moment DCM Shriram share price is trading at Rs 256.30 apiece on NSE.

PVR Q2 Net Down 5 Per Cent At Rs 29 Crore

Multiplex chain operator PVR on Friday posted 4.92 per cent fall in consolidated net profit at Rs.29.13 cr for the July-September quarter (Q2) on account of higher expenses. The firm had reported a consolidated net profit of Rs.30.64 cr for the July-September quarter (Q2) of the last fiscal.

PVR's total income from operations during the second quarter (Q2) under review was up 16.77 per cent to Rs.554.21 cr as compared to Rs.474.61 cr in the same period of last fiscal. Its expenses in the quarter under review stood at Rs.495.73 cr, an increase of 19.63 per cent, as compared with Rs.414.37 cr in the corresponding period a year ago.

PVR share price history:

Meanwhile, PVR share price was trading 0.73 per cent higher at Rs.1223 on the National Stock Exchange (NSE) today. The scrip opened at Rs.1218.95 from a previous closing of Rs.1214.15. 

PVR is analyzed by Dynamic Levels Researchers and analysts as the top 500 performing stocks for the current quarter among the 1700 stocks which are listed on the National Stock Exchange (NSE).  PVR is fundamentally strong, financially sound and is safe for investment, as per Dynamic analysts and market experts. PVR has debt equity less than 2 and its pledge is less than 25 per cent, according to Dynamic Levels Research Analysts.   

PVR has a market cap of Rs. 5674.77 (Cr) while its book value stands at 186.04. The 52-week high of the stock stands at Rs. 1334.80 (07-Sep-16) while the 52-week low reads at Rs. 645.25 (25-Feb-16). The life time high & low of the stock stands at Rs. 1334.80 (07-Sep-16) and Rs. 58.20 (02-Dec-08), respectively. Its face value stands at Rs.10.        

In order to gain information about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a quick visit to PVR share price history.

Tata Elxsi Q2 net profit up 13% at Rs 43 crore

Tata Elxsi reported a 13 per cent rise in the net profit at Rs.43 cr for the second quarter (Q2) ended September 30, 2016. The net profit stood at Rs.38 cr in the year-ago period. During the July to September quarter (Q2), the company's total income from operations increased 15 per cent to Rs.303.28 cr as compared to Rs.263.6 cr for the corresponding period of previous year, according to a BSE filing by the Tata Elxsi.

The company said that based on the recommendations of the nomination and remuneration committee, its Board had approved the re-appointment of Madhukar Dev as the MD - managing director and CEO – chief executive officer for a period from 16^th January, 2017 upto 1^st October, 2019, subject to the approval of the members of the firm.

Tata Elxsi Share Price History:

Meanwhile, Tata Elxsi share price was trading 3.42 per cent higher at Rs.1281.40 on the National Stock Exchange (NSE) today. The scrip opened at Rs.1250 from a previous closing of Rs.1239.00. 

Tata Elxsi is analyzed by Dynamic Levels Researchers and analysts as the top 500 performing stocks for the current quarter among the 1700 stocks which are listed on the National Stock Exchange (NSE).  Tata Elxsi is fundamentally strong, financially sound and is safe for investment, as per Dynamic analysts and market experts.

Tata Elxsi has a market cap of Rs.3858.03 (Cr) while its book value stands at 91.02. The 52-week high of the stock stands at Rs. 2403.00 (02-Feb-16) while the 52-week low reads at Rs. 1222.05 (27-Oct-16). The life time high & low of the stock stands at Rs. 2403.00 (02-Feb-16) and Rs. 13.75 (08-Jul-97), respectively.

 In order to gain information about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a quick visit to Tata Elxsi share price history.

MRF Reports 14% Decline in Profit for Q2FY17

Tyre manufacturer MRF yesterday announced its results for Q2FY17. The company reported a 14.36 per cent decrease in standalone net profit at Rs 385.29 crore for the Q2 ended September 30, 2016.  The company had reported a net profit of Rs 449.92 crore in the July-September quarter a year ago.

Yesterday, MRF share price had slipped over 6% on the back of declined net profit. Total income from operation decreased 1.04 per cent to Rs 3,614.63 crore during the quarter under evaluation as against Rs 3,652.78 crore of the corresponding quarter last fiscal. Total expenses were at Rs 3,109.44 crore, up 4.06 per cent, as compared to Rs 2,987.97 crore.

In the first half of the calendar year 2015-16, MRF's' standalone net profit slipped 5.72 per cent to Rs 876.22 crore as compared to Rs 929.47 crore a year earlier. Today, MRF share price traded 3% up to Rs. 47,784.95 on the NSE today rising out of the gloom of its disappointing Q2 result. Total income, in the first half of the current financial year, also declined marginally by 0.46 per cent at Rs 7,497.00 crore as compared to Rs 7,532.17 crore in the same period last financial year.

Meanwhile, in a separate filing, MRF informed BSE that its board of directors in a meeting held today announced an interim dividend of 30 per cent, which is Rs 3 per equity share for the financial year ending March 31, 2017.

At 11:09 Am, MRF share price was trading at Rs. 47674.90, up by 2.74% against 0.31% rise in the Benchmark Index Nifty. So far, nine thousand eight hundred shares were traded over the NSE trading counter. The stock is top 500 recommendations by Dynamic Levels for the quarter. For the details on the levels of support and resistance of MRF, kindly visit MRF share price forecast page of Dynamic Levels website.

Eicher Motors Q2 profit seen up 27% on Royal Enfield growth

Eicher Motors' second quarter standalone profit is seen rising 26.7 per cent sequentially to Rs 427 cr and revenue may grow 13.85 per cent to Rs 1,772.9 cr, according to average of estimates of analysts polled by the media.

EBITDA or earnings before interest, tax, depreciation and amortization is likely to jump 18.4 per cent quarter-on-quarter to Rs 567 cr and margin may expand 110 bps or basis points to 31.9 per cent in Q2.

Standalone numbers comprise of only ‘Royal Enfield’ business. Volume growth remained strong in Royal Enfield and commercial vehicle sales volumes. Royal Enfield volumes grew by 31 per cent YoY to 1.67 lac units and commercial vehicles sales increased 15 per cent YoY to 13,408 units during the quarter. Analysts said that Royal Enfield demand remained very healthy and it was on track to achieve production guidance of 9 lac by FY19. The company hiked Royal Enfield price by 1 per cent in the month of August, the second price hike of calendar year.

Eicher Motors Share Price History:

Meanwhile, Eicher Motors share price was trading 0.89 per cent higher at Rs.24710 on the National Stock Exchange (NSE) today. The scrip opened at Rs.24760 from a previous closing of Rs.24491.85. So far, 3993 shares have traded on the NSE counter having a traded value of Rs.986.16 lacs. The 52-week high & low of Eicher Motors stands at Rs.26641.30 & Rs.14,800.

>Eicher Motors is analyzed by Dynamic Levels Researchers and stock analysts as the top 500 performing scrips for this quarter among 1700 scrips which are listed on the National Stock Exchange (NSE).

For more details on the scrip and also financials and fundamentals of the company, please visit Eicher Motors share price history. Here, you will also come across the resistance and support levels of the stock.