CNBC-TV18's research analysts speak of stocks that made headlines in the past few hours and are likely to be in focus for following reasons.
Coal India (CIL), the world's biggest coal miner, said it has decided to relinquish about three-fourths of the two blocks it was allotted in Mozambique in 2009 for exploration and development. Coal India Africana Limitada (CIAL), a fully-owned subsidiary of the state-owned firm, was allotted two leasehold licences for extraction of coal of about 224 square kilometre in Tete province of Mozambique in August 2009. The company's board has approved retaining "54 sq km of leasehold licence area which will be of actual interest with coal bearing horizon occurring within a 500-metre depth and relinquish the remaining 170 sq km area out of total leasehold licence area of 224 sq km", CIL said in a regulatory filing.
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Tata Motors sees Rs 250 crore of delivery based selling on Tuesday. Stock of Tata Motors hit fresh 52-week low by 21 percent in 2015. Big weakness seen in China retail sales in June.
June JLR Retail SalesTotal sales flat at 39,602 units year on year. Landrover sales down by 1 percent at 32,447 units year on year. Jaguar sales down by 6 percent at 7,155 units year on year. Retail sales in China down by 27 percent. Retail sales in China down by 46 percent year on year. China sales weak due to softening market conditions. Delay in production ramp-up of local Evoque also hit China sales. Ex- China volume growth was strong. Retail volumes in Europe down by 47 percent & in UK up by 25 percent year on year. North America volumes up 12 percentyear on year.
Small-sized private sector lender DCB Bank reported a marginal 5 percent rise in net profit at Rs 47 crore for the June quarter of this fiscal, from Rs 45 crore in the year-ago period. The bank said profit would have been higher had it not been for the doubling of taxation from this fiscal after it cleaned up its books. During the quarter, the bank paid taxes at 34.6 percent while till March, its effective tax rate was only 15.5 percent, Managing Director and Chief Executive Murali M Natrajan said here. The retail-focussed bank's assets grew 26 percent to Rs 10,426 crore driven by higher advances in retail lending dominated by mortgaged-backed loans, which constitute 46 percent of its loan book. But on a sequential basis, the loan book was flat, he said. Its net NPAs rose marginally to 1.22 percent from the earlier 0.97 percent while gross NPAs were up at 1.96 percent as two large loans turned dud. Interest income rose to Rs 404 crore in the period under review from Rs 352 crore a year ago. Net interest income inched up to Rs 140 crore, taking the total income to Rs 204 crore. Natrajan, however, expressed confidence that the bank will contain NPAs at the current level during the rest of the financial year. During the reporting period, net advances grew to Rs 10,426 crore, up 26 percent, while the net interest margin stood at 3.81 percent, up from the earlier 3.71 percent. Going forward, Natrajan expects the loan book to grow at 20-22 percent driven by retail, agri and SMEs. The bank's capital adequacy ratio reads 14.27 percent under Basel III, he said.
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Century Plyboards (India) Ltd said its wholly owned subsidiary has incorporated a new entity in Indonesia for trading wood products and providing related services. "The company's wholly owned subsidiary Century Ply (Singapore) Pte Ltd in Singapore has incorporated a stepdown subsidiary by the name PT Century Ply Indonesia in Indonesia on July 3 2015," the company said in a BSE filing. It further said: "The said subsidiary has been incorporated with the object of trading in timber, manufacturing and trading in plywood and all wood products & materials and providing related services." During the financial year 2015-16 , Century Plyboards' consolidated net profit grew over two-fold to Rs 149.95 crore as against Rs 63.33 crore in the previous fiscal.
Adhunik Metaliks Ltd has announced on Tuesday that Orissa Manganese & Minerals Limited (OMML), wholly owned subsidiary of the Company, have been granted extension of lease for their three manganese ore mines (Patmunda, Orahuri & Kusumudhi) till March 31, 2020 under merchant category. The requisite stamp duty and registration charges have already been deposited to the State Government of Odisha. Patmunda mine has already re-started operation. OMML has requested the Government to extent the lease of these mines for further 10 years under captive clause.
Pharma firm
Kopran said it has received Board's approval for sale of consumer care unit, which manufactures and sells oral care and lifestyle products. The Board of Directors has approved the sale with effect from April 1, 2015, Kopran said in a BSE filing. The board of directors of the company at its meeting held on July 14, 2015, approved the sale of consumer care division with effect from April 1, 2015, along with all its assets and liabilities," the company said. Kopran is the group company of Parijat Enterprises and its consumer care division manufactures deodorant, deo talc, face wash, moisturiser and tooth paste. In FY2015, the company had a revenue of Rs 325.59 crore.
Jindal Steel and Power Ltd (JSPL) said one of its promoter has pledged 3.49 percent stake in the company with Axis Trustee Services Ltd. In a BSE filing, the steel and power producer said its promoter OPJ Trading Pvt Ltd has pledged 3.49 percent stake in the firm with Axis Trustee Services Ltd on July 6, 2015. OPJ Trading Pvt Ltd holds 20.51 percent stake in JSPL as of June 2015. With this, the total pledging by the promoter has reached 13.96 percent of the total stake it holds in JSPL, the filing added. Last month, JSPL informed the exchange that OPJ Trading Pvt Ltd had pledged 2.48 percent on June 3 and 0.91 percent stake in the firm on June 5 with Axis Trustee Services Ltd, taking its total pledged stake to 10.47 percent.
Realty major
DLF is likely to raise about Rs 2,500-3,000 crore by next month via private equity and is in talks with Singapore government’s investment arm GIC to sell stake in a new housing project. According to market sources, the company is in advanced stage of talks with sovereign wealth fund GIC to sell up to 49 percent stake in the new residential project in the National Capital. The deal is expected to close in the next one month, they added. DLF is planning to launch a new residential project spread over 20-25 acres near Moti Nagar, adjacent to its existing housing project ‘Capital Green’. The regulatory approvals are in place to launch this project, comprising about 3,000 apartments, sources said. When contacted, the company spokesperson said: “We do not comment on market speculations.” In August 2007, DLF had bought 38 acres of land from DCM Shriram Consolidated and Lohia Group for Rs 1,675 crore. On about 30 acres, the company is developing a housing project ‘Capital Green’ having 2,800 flats. DLF had announced in February this year that it would raise over Rs 3,000 crore through divestment or joint ventures in certain projects as part of its strategy to improve cash flow and reduce debt. In its analyst presentation, DLF had said it intends to keep the net debt of DevCo (development arm) range bound “through tactical divestments or JV’s with strategic or financial investors of certain projects”. In view of sluggish housing sales in last few years, DLF has decided to raise private equity funds at project levels to boost cash flows. “Since sales are slow, we are planning to raise about Rs 3,000 crore through private equity. In the short term, PE fund will be the substitute for the cash flow which would have normally come from sales,” DLF CFO Ashok Tyagi had said in February. DLF’s net debt stood at Rs 20,965 crore at the end of last fiscal, of which about Rs 14,000 crore pertained to rental business and the rest was towards DevCo. In 2014-15 fiscal, DLF’s net profit dipped by 16 percent to Rs 540.24 crore from Rs 646.21 crore in previous year. The company’s income from operations fell by 8 percent to Rs 7,648.73 crore in the last fiscal from Rs 8,298.04 crore in 2013-14.
NIIT Tech First quarter earnings on Tuesday positively surprised. NIIT Tech 2 straight quarters of good earnings. Stock rises by 20 percent in 1 year even after yesterday's 10 percent gain. Brokerages increase EPS and fair value on stock.
Credit Suisse View on NIIT Tech: Maintain Outperform; Raise Target to Rs 600/share versus Rs 475/share. Increase EPS by 2-8 percent. Consistency will be key, near-term momentum seems positive; Margins can expand. Valuations attractive even after recent performance. Management has a positive outlook on companies pipeline. Management expects continued margin improvement through FY16.
CLSA View on
Larsen & Toubro: Reiterate Buy; Raise Target to Rs 2,275/share. Profitable hi-tech defence businesses to explode. DNA orders are set to multiply 4-5x over FY15-18e. DNA: Defence, Nuclear and Aerospace. DNA orders can equal 12 percent of group inflow. DNA businesses also offer higher margins than E&C. DNA is key to co sustaining high growth from a higher base post-FY18. Expect a pick-up in EPS growth to 26 percent to support valuations. Remains best proxy to a domestic capex revival. Value creation through divestments. Realty monetization; Play on expansion in its DNA portfolio.
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