Lupin Q3 Result Update

Lupin Q3 net profit rises 21% to Rs 633 crore on strong US sales

India’s third largest drug maker by sales Lupin  on Thursday posted a 21 percent increase in its net profit to Rs 633 crore for the third quarter ended December beating analyst estimates on back of strong US generic sales. The company posted Rs 524.6 crore in the same period previous year. Revenues rose by 26 percent to Rs 4483 crore. 

 The EBITDA margin of the company stood at 27.1 percent versus analyst estimate of 23.9 percent. US sales grew 53.4 percent at USD 316 million on year-on-year basis. India formulation sales grew 11.9 percent to Rs.991.2 crore. Asia-Pacific sales grew 20.9 percent at Rs.560. EMEA sales increased 16.8 percent to Rs 255.5 crore. 

Technical Levels for Bank of Lupin

Support at 1480 and Resistance at 1530

Looks positive and could touch its resistance level of 1530, further upside rally will see on close above 1530 else could touch its support level of 1480

Looks weak only below 1480

More will update soon!!

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Bank of India Q3 Result Update

Bank of India turns corner, Q3 profit at Rs 102 cr; NPA improves

Bank of India   has turned profitable in October-December quarter, with net income at Rs 101.7 crore against loss of Rs 1,505 crore in year-ago period on account of fall in provisions and sharp jump in other income & operating profit. Net interest income during the quarter grew by 5.7 percent to Rs 2,862.6 crore while non-interest income (other income) shot up 70 percent to Rs 1,769.25 crore and operating profit jumped 74.5 percent to Rs 2,458.4 crore compared with year-ago quarter. 

Asset quality improved on sequential basis as gross non-performing assets (NPA) declined 7 basis points to 13.38 percent and net NPA dropped 47 basis points to 7.09 percent in the quarter gone by. In absolute terms, gross NPAs fell 0.92 percent to Rs 51,781 crore and net NPA plunged 7 percent to Rs 25,534 crore compared with previous quarter. Provisions for bad loans increased 0.3 percent sequentially to Rs 2,302.6 crore but declined 36.1 percent on year-on-year basis.

Technical Levels for Bank of India

Support at 130 and Resistance at 138.50—140

Looks positive and could touch its resistance level of 138.50—140, further upside rally will see on close above 140 else could touch its support level of 130

Looks weak only below 130.00

More will update soon!!

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Our Sell call report of USDINR and EURINR proved great. Both crashed vertically. Download your FREE copy from here

Our sell call report of USDINR ....Crashed vertically 

We clearly indicated in our FREE report to our Currency segment subscribers to SELL USDINR on rise around 68.40---68.60 and SELL EURINR AT 73.50 was successful.

USDINR has hit first target ✔67.40 and close to our Second target of ✔✔66.80.

While EURINR too moving towards achieving its target of 70 (CMP - 71.75)

Click on the link to View / Download your FREE Copy of report 📊 what we released on that day!!

https://www.docdroid.net/ETPHmRn/imv-currency-report1.pdf.html

More will update soon!!

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Indraprastha Gas Beats Estimates In Third Quarter

Natural gas distributor Indraprastha Gas Ltd. (IGL) reported a 37 percent profit growth in the third quarter of the financial year, beating street estimates by 5 percent.

Standalone net profit for the December quarter came in at Rs 145 crore versus Rs 106 crore in the corresponding quarter, last year. This is the fourth consecutive quarter of double digit profit growth for the company.

The 37 percent rise in net profit is attributable to higher sales volume/realisations, reduction in interest cost and higher other income, the company said in the press release.

IGL also holds 50 percent stake in Central U.P. Gas Ltd. and Maharashtra Natural Gas Ltd., which jointly contributed approximately Rs 36 crore, but that has not been included in IGL’s standalone numbers.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 27 percent to Rs 247 crore compared to Rs 194 crore last year. The EBITDA margin expanded by 460 basis points to 23.6 percent.

Revenue during the October-December quarter increased marginally to Rs 1,043 crore from Rs 1,021 crore in the same quarter last year. The Bloomberg consensus of analyst estimates had expected the lower revenue and net profit at Rs 923 crore and Rs 138 crore respectively.

The company saw overall year-on-year growth of 15 percent in volume during the quarter. IGL sold 4.61 million metric standard cubic meters (mmscm) per day in the third quarter of financial year 2017. Compressed natural gas (CNG) volume increased 11 percent from a year earlier and piped natural gas (PNG) volume grew 20 percent.

Higher sales volume, did not translate to a sharp jump in revenue, as the company passed on some of the benefits of lower gas prices to customers. The government had reduced administered gas prices by 18 percent to $2.5 per million British thermal unit, during the third quarter.

The uptick in gas volumes is likely to continue as IGL, the sole compressed natural gas (CNG) retailer in the national capital region, has been one of the biggest beneficiaries of the gradual shift towards CNG-fitted vehicles, on the back of stricter environmental norms and rising petrol prices.

According to Emkay Global’s report, the demonetisation move, which was announced on November 8, has had no significant impact on IGL’s business.

IGL is the top gainer amongst BSE Oil & Gas Index, over the last six months. The stock price has risen 48 percent, while the benchmark BSE Oil & Gas rose only 21 percent. 64 percent of the analyst tracked by Bloomberg have a ‘buy’ rating on the stock.

Source: Bloomberg

More will update soon!!

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MANAPPURAM FINANCE GO GOLD: INVESTMENTS IN MANAPPURAM MAY CONTINUE TO GLITTER

MANAPPURAM FINANCE

Manappuram Finance is one of the largest gold loan companies in India. It is the second largest listed player in the gold loan segment with an AUM of Rs.10,080.63 crore (FY2016). It has a strong pan-India presence through its strong branch network, spread across 23 states and four Union territories. Apart from the traditional business, the company now has diversified its business into micro-financing, housing finance and commercial vehicles loans business.

INTRODUCTION

The business operation of Manappuram Finance is largely based on gold. The company provides instant loan against gold, as the commodity can easily be accepted as a collateral. The year 2016 has been a good year for gold as compared with the last couple of years. The prices of gold are extremely important for the company as it gives loan against gold. The prices of gold corrected significantly after falling from Rs.31,000 per 10 grams at the end of 2013 to less than Rs.25,000 in mid-2015, and began rising since then. As on December 4, the gold has gained 14 per cent since the mid-September 2015 level. However, the company has delinked its business from the global gold prices which is one of its strategies of derisking. However, the gold prices still remain important to determine the LTV ratio (loan to value).

PEER GROUP PERFORMANCE: Although banks such as SBI, ICICI Bank do provide loans against gold, with Mahindra Finance also foraying into the business. Muthoot Finance is the only major competitor of Manappuram Finance enjoying largest market share in the industry with more than 4,265 branches across India.

The non-banking finance companies (NBFCs) grew better than banks in FY2016. However, the NPL phenomenon in NBFCs was the same as that of NPAs of banks. NBFCs predominantly operating in rural areas such as tractor financiers and commercial vehicle financiers faced more challenges as compared to the overall industry. Housing finance companies (HFCs) and microfinance companies were relative outperformers. HFCs continued to witness healthy growth rates, while loan book growth and earnings growth continued to be robust in the microfinance segment. In terms of financial assets, NBFCs recorded healthy growth—CAGR of 19 per cent over the past few years and now account for 13 per cent of the total credit,which is further expected to reach nearly 18 per cent by 2018–19.

DEMONETISATION WILL NOT AFFECT THE BUSINESS

Demonetisation will not affect Manappuram Finance adversely. Although the company has diversified its business operations, more than 90 per cent of the income of the company is still derived from gold loans. Manappuram Finance non-gold business is just 15 per cent and hence the impact of demonetisation on the company will be negligible. Although the volatile gold prices are a risk, however the gold prices have surged significantly after Trump's win in the US presidential election.

FINANCIALS

On the financial front, gross sales of Manappurram Finance in the financial year ended March 2016 stood at Rs.2360.23 crore, an increase of 19 per cent YoY. PBIDT increased 15 per cent and stood at Rs.1551.55 crore. The company's PAT was Rs.355.16 crore, an increase of 31 per cent as compared with the financial year ended March 2015. The net worth increased by five per cent and reserves and surplus too increased five per cent in this fiscal. In Q2FY17, Manappurram Finance posted strong results. Its net sales stood at Rs.751.50 crore, showing an increase of 45.87 per cent YoY. The PBIDT increased 65.19 per cent and stood at Rs.546.93 crore, while the PAT stood at Rs.179.70 crore, a whopping increase of 203.44 per cent.

VALUATION

Manappuram Finance has a market cap of Rs.6084.86 crore. The stock is providing a good dividend yield of 3.11 per cent and the company maintains a healthy dividend payout ratio of 54.47 per cent. The trailing 12-month P/E stands at 11.06 which is low as compared with the industry P/E of 21.47. The ROE of the company in the last three years was 10.81 per cent. Its ROA stood at 2.91 per cent whereas ROCE was 12.64 per cent. The company's EPS stood at Rs.4.01 per share. In the last six months, the share price has surged 46 per cent. In the last one year, the scrip has been more than a multibagger, surging 2.92 times. The stock's 52-two week high/low stands at Rs.106.75/24.60.

CONCLUSION

The financials of Manappuram Finance are strong and are expected to remain strong in the upcoming quarters. On the other hand, the company is not dependent on gold loans as it has diversified its operation. The company has been graceful in adopting technology in its business. The company has launched the Online Gold Loan (OGL) service, wherein taking gold loans has been made as simple as using a credit card. The service has been enabled through web, smartphone and SMS platforms. Customers depositing gold automatically become eligible for gold loan to the extent of Loan to Value (LTV) limit. Meanwhile, the RBI increased the LTV ratio for gold loans by NBFCs to 75 per cent from 60 per cent and this is bound to increase the demand for gold loans further. Delinking the global business from gold prices, which is one of the current business strategies of the company, has helped Manappuram Finance in maintaining a stable asset quality. 

In Feb 2015, Manappuram Finance acquired Asirvad Microfinance Pvt. Ltd. with AUM a little short of Rs.300 crore. Just in a year the company's AUM has tripled to Rs.1000 crore, which is an example that the company can churn a non-gold business into profits. Overall, the fundamentals of Manappuram Finance are strong and hence we recommend are reader-investors to BUY the stock. 

                      More will update soon!!                       

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Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 9th February 2017

Nifty 8769/Sensex 28289/ Bank Nifty 20245

32 Advances / 19 Declines/ 0 Unchanged

Indian benchmarks end flat as RBI holds policy rate

It turned out to be a lackadaisical performance from the Indian benchmark indices on Wednesday as they snapped the session near neutral line. 

Sentiments remained dismal after Reserve Bank of India (RBI) maintained status quo on interest rates in its sixth monetary policy review of financial year 2016-17. The central bank decided to change the stance from accommodative to neutral and kept the short-term lending rate, called repo rate, unchanged at 6.25%, opting to wait for more clarity on the trend for inflation. RBI has also cut the economic growth forecast to 6.9 percent for the current fiscal from 7.1 percent estimated earlier. However, inventors got some comfort with the central bank’s statement that demonetisation-induced ease in bank funding conditions has led to a sharp improvement in transmission of past policy rate reductions into marginal cost-based lending rates (MCLRs), and in turn, to lending rates for healthy borrowers, which should spur a pick-up in both consumption and investment demand. 

It also said the economic activity in cash-intensive sectors such as retail trade, hotels and restaurants, and transportation, as well as in the unorganised sector, is expected to be rapidly restored. Some support also came after Economic Affairs Secretary Shaktikanta Das rejecting arguments that fiscal deficit target of 3.2 per cent is optimistic, said it is realistic and there is all possibility that revenues will exceed the target as Budget has not taken into account the demonetisation windfall. Besides, he said, there would be collection taxes next fiscal from those who fail to avail Pradhan Mantri Garib Kalyan Yojana (PMGKY).

On the global front, Asian markets ended mostly lower on Wednesday on lingering political and economic uncertainty in the United States and Europe, which sapped investors’ confidence. The political situation in France with the potential for a ‘Frexit’ as well as uncertainty about President Donald Trump's policies weighed on investors’ sentiments. However, Chinese shares closed higher, led by financial shares, even as weak forex reserves data highlighted the challenges faced by Beijing in curbing capital outflows. While China's foreign exchange reserves unexpectedly fell below the closely watched $3 trillion in January for the first time in almost six years, the fall in reserves was much smaller than in the same period of last year and December. Meanwhile, European markets rose in early trade, led by mining stocks and financials on a heavy day for regional corporate results.

Back home, after getting cautious start, the local benchmarks traded in tight range, near neutral line, for most part of the morning trade as investors remained on the safer side in the absence of any major trigger. The key gauges suffered a setback in afternoon trades as sudden bouts of profit booking emerged in the local markets after RBI kept its policy rate on hold at 6.25% for a second meeting in a row. However, the bourses recovered from the lows of the day and end the session near neutral line

FII’s Activity 08-Feb-17

The FIIs as per Wednesday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 4393.68 crore against gross selling of Rs 4123.38 crore. Thus, FIIs stood as net buyers of Rs 270.30 crore in equities.

In the debt segment, the gross purchase was of Rs 2010.85 crore with gross sales of Rs 1302.64 crore. Thus, FIIs stood as net buyers of Rs 708.21 crore in debt.

Key Result

3M India Ltd

ABB India Ltd

Andhra Bank

Aurobindo Pharma Ltd

Bajaj Electricals Ltd

Bank of India

Bata India Ltd

Bharat Petroleum Corporation Ltd

Bliss GVS Pharma Ltd

Bombay Dyeing & Manufacturing Company Ltd

Edelweiss Financial Services Ltd

Escorts Ltd

Gujarat Fluorochemicals Ltd

HeidelbergCement India Ltd

ICRA Ltd

JK Tyre & Industries Ltd

Lupin Ltd

Magma Fincorp Ltd

NCC Ltd

NLC India Ltd

Omaxe Ltd

OnMobile Global Ltd

Page Industries Ltd

Power Grid Corporation of India Ltd

Religare Enterprises Ltd

Shipping Corporation of India Ltd

Steel Authority of India Ltd

T.V. Today Network Ltd

Torrent Power Ltd

Vardhman Textiles Ltd

Now what to expect next??

Nifty Levels

Support 8720 and resistance at 8850

Looks positive and could touch its resistance level of 8850, break and sustain above 8850 will take it to 8900—8950 and then to 9000+ mark in days to come else could touch its support level of 8720 again.

Fresh selling can be initiated below 8720 mark

Bank Nifty Levels

Bank Nifty unable to breach its support level of 19900 and bounced back sharply.

Now what to expect??

Support at 19900 and resistance at 20650

Trend still looks positive and could touch its resistance level of 20650, further upside rally will see on close above 20650 else could touch its support level of 19900

Looks weak only below 19900

Today's Top Pick

Reliance Capital (Cash)

Above 488... Catch it. We will see rally till 502---508 and then to 525+++ mark

Support and stop loss seen below 473.00

More will update soon!!

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Updates on Bullion, Base Metals and Energy Levels 08 Feb 2017

Gold futures ended higher on Tuesday as geopolitical uncertainty kept prices near their highest settlement level in about three months. Though, some gains were capped as the dollar strengthened against a basket of major currencies as the euro fell on weak German industry data and nervousness ahead of the French elections. Weaker output in manufacturing and construction drove the biggest monthly drop in German industrial production in nearly eight years in December.

Crude oil futures slumped on Tuesday, slipping to their 3 week low, amid signs that robust U.S. shale production will help offset OPEC's supply cuts. Evidence of a burgeoning revival in US shale production could complicate efforts by OPEC and other producers to reduce a supply glut. Traders were eyeing the inventory data with expectation that US crude stockpiles rose 2.5 million barrels last week - a fifth straight weekly build - while gasoline inventories grew 1.1 million barrels - a sixth consecutive weekly build. US supplies have been building in 2017 amid increased production and subdued demand, while ten OPEC members have achieved 91 percent of their required cuts in January.

Copper futures ended lower on Tuesday as the dollar strengthened against a basket of major currencies and on worries about demand growth in the world’s top consumer China. Traders are particularly worrying in the context of the Chinese yuan, which has been falling since the start of the year, as China accounts for about half of global demand for industrial metals. However, the prospect of supply disruptions at the world’s two biggest copper mines helped limit losses.

Technical Level

Gold

Support at 29150 and resistance at 29420---296

00.

Traders can trade in a range with strict stop loss and wait for confirmation.

Silver

Support at 42000 and Resistance at 42600

Close above 42600 will take it to 43000---43300 mark else 

could touch its support level of 42000 again.

Fresh selling can be initiated below 42000 mark

Crude oil

Support at 3430 and Resistance at 3540---3600.

Looks weak and could touch its support level of 3430. Break and close below 3430 will take it to 3350—3280 else could touch its resistance level of 3540—3600 again.

Trade with levels only.

Copper

Support at 394 and resistance at 401

Break and sustain below 394 will take it to 389---386 mark else could touch its resistance level of 401 again.

Fresh buying can be initiated above 401 mark.

Major Economic Data

09:30 P.M Crude Oil Inventories:  Previous 6.5M, Forecast 2.7M, Actual –??

Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.

More will update soon!!

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Bharat Forge Q3 Result Update

Bharat Forge reports 21% drop in Q3 net profit

Bharat Forge has reported results for third quarter ended December 31, 2016.

The company has reported 21.48% fall in its net profit at Rs 128.62 crore for the quarter ended December 31, 2016 as compared to Rs 163.81 crore for the same quarter in the previous year. Total income of the company decreased by 10.84% at Rs 1010.76 crore for the quarter under review as compared Rs 1133.64 crore for the corresponding quarter previous year.  

Technical Levels for Bharat Forge

Support at 965 and Resistance at 990

Close below 965 will take it to 950---945 and then to 920 else could touch its resistance level of 990 again.

Fresh buying can be initiated above 990.

More will update soon!!

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