world indices & indian adrs (us$) 30-jan-17 · · 2017-01-31reliance defence bags rs.916 cr...

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EQUITY

Latest 1 Day P/E* P/B*

SENSEX 27,849.6 (0.1) 20.8 2.8

NIFTY 8,632.8 (0.1) 21.6 2.8

CNXMIDCAP 15,638.7 (0.0) 27.3 1.9

30-Jan-17

*Source: Bloomberg

NET INFLOWS (Rs. Crs.) 27-Jan-17

NET MTD YTD

FII 227.3 (7416.0) 10162.9

MF** 211.3 19971.3 30516.0

*YTD From January till date **As on 25-Jan-17

31 January 2017

Sushil Financial Services Private Limited Member BSE : SEBI Regn.No. INB/F010982338 | NSE : SEBI Regn.No.INB/F230607435. Regd. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected]

Please refer to important disclosures at the end of the report For private Circulation Only.

30-Jan-17

Latest Points % Chg.

NIKKEI 225 * 19110.9 (257.9) (1.3)

HANG SENG * 23360.8 (13.4) (0.1)

DOWJONES 19971.1 (122.6) (0.6)

NASDAQ 5613.7 (47.1) (0.8)

SGX NIFTY FUT* 8628.0 (26.0) (0.3)

INFY 13.8 (0.1) (0.9)

HDFC BANK 68.4 (1.2) (1.8)

ICICI BANK 7.9 (0.2) (2.6)

TATA MOTORS 38.8 (1.1) (2.8)

WIPRO 9.3 (0.2) (2.3)

DR REDDY 44.4 (0.1) (0.1)

* At 08:20 a.m. IST on 31-Jan-17

WORLD INDICES & INDIAN ADRs (US$)

COMMODITIES 27-Jan-17

Latest Points % Chg.

GOLD 1199.6 4.0 0.3

CRUDE OIL (WTI) 52.4 (0.2) (0.4)

CRUDE OIL (Brent) 55.1 (0.1) (0.2)

FII ACTIVITIES IN DERIVATIVES 30-Jan-17

FII Net Buy (Rs.

Crs)

Open

Interest

Ch. in Open

Int. (DOD)Index Futures (368.9) 15977.5 3.8

Index Options (136.9) 56159.8 16.2

Stock Futures 515.8 62078.2 1.4

Stock Options 128.5 2908.1 33.1

30-Jan-17

Closing % Chg.

Dollar Index 100.3 (0.10)

Rs. / $ 67.9 (0.13)

Rs. / EURO 72.6 (0.24)

Rs. / UK Sterling 85.1 (0.21)

EXCHANGE RATE

G.SEC. YIELD 30-Jan-17

Yield (%)

GS CG2025 8.2% 6.41

US 10 Year Gsec 2.47

KEY OVERNIGHT DEVELOPMENTS

Major US stock indexes posted their largest drop so far in 2017 on Monday as

investors worried that a curb on immigration ordered by Donald Trump was a

reminder that some of the US president's policies are not market-friendly.

Asian shares were on the defensive on Tuesday as stringent curbs on travel to

the US ordered by President Donald Trump brought home to investors that

he is serious about putting his radical campaign pledges into action.

MUST KNOW…. Rs.7,400 cr debt: SBI turns to SC for recovery of loans from JSPL (Rs.82,

+3%)

Ashoka Buildcon receives LOA for power project in Bihar (Rs.188, +2%)

Om Metals' JV bags contract in Africa; shares rises (Rs.46, +2%)

Revenue growth of 14% achievable for FY17: Bharat Electronics (Rs.1586,

+3%)

Growth can't be taken for granted: Gujarat Alkalies MD (Rs.390, -3%)

Kalindee Rail Nirman gains on Rs.197 crore order win (Rs.118, +2%)

Indian Farmers Fertiliser to invest in Swan Energy (Rs.172, -11%)

Rural Electrification Corp signs MoU for extending financial assistance of

Rs.60000 cr (Rs.147, -2%)

Suven Life gets patent for anti-neuro degenerative drug (Rs.179, +1%)

Reliance Defence bags Rs.916 cr contract from Defence Ministry (Rs.62,

+8%)

Volume intact in Q3; hope to maintain margin at 8-9%: Zuari Agro (Rs.340, -

1%)

GMR signs MoUs with firms on setting up units in Kakinada SEZ (Rs.13, -2%)

Note ban hit new customer additions by 7-8%: Justdial (Rs.382, +3%)

Battery volumes to grow by 3-4%, topline by 7-8%: Eveready India (Rs.246,

+2%)

Expect volume growth to recover in Q4, says APL Apollo (Rs.1042, +1%)

Expect revenue to grow at 24% for brands business: Arvind (Rs.379, +2%)

GCPL Q3 net shrinks 4.3% to Rs.352 cr after cash ban (Rs.1604, +3%)

PNB Housing Finance to raise Rs.1025 crore via issue NCD (Rs.910, -2%)

Piramal to acquire drugs from UK's Mallinckrodt for Rs.1,162 cr (Rs.1723,

0%)

SAIL in talks with CIL over coaking coal price hike (Rs.64, +1%)

Idea zooms as Vodafone confirms merger talks with AB Group (Rs.98,

+26%)

Grasim Industries Q3 net grows 13.7% to Rs.728 cr (Rs.970, +4%)

Tata Chemicals signs MoU with Government of Andhra Pradesh (Rs.538, -

1%)

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Corporate Announcements & Financial Scoreboard Pfizer Ltd has posted an unaudited net profit of Rs.623.70 mn for Q3FY17 vs Rs.597.60 mn for Q3FY16.

Total Income has decreased from Rs.5509.60 mn for Q3FY16 to Rs.5367.50 mn for Q3FY17.

Dish TV India Ltd has posted an unaudited net profit of Rs.478.60 mn for Q3FY17 vs Rs.1003.90 mn for

Q3FY16. Total Income has decreased from Rs.6161.70 mn for Q3FY16 to Rs.4900.80 mn for Q3FY17.

The Group has posted an unaudited consolidated net profit of Rs.266.80 mn for Q3FY17 vs Rs.684.90

mn for Q3FY16. Total Income has decreased from Rs.7756.80 mn for Q3FY16 to Rs.7660.70 mn for

Q3FY17.

Shree Cement Ltd has posted an unaudited net profit of Rs.2354.30 mn for Q3FY17 vs Rs.2337.50 mn

for Q3FY16. Total Income has increased from Rs.21272.10 mn for Q3FY16 to Rs.22267.90 mn for

Q3FY17.

Bajaj Finserv Ltd has posted an unaudited net profit of Rs.63.20 mn for Q3FY17 vs Rs.102.00 mn for

Q3FY16. Total Income has decreased from Rs.304.30 mn for Q3FY16 to Rs.253.80 mn for Q3FY17. The

Group has posted an unaudited consolidated net profit after tax, minority interest and share of profit

of associates of Rs.6137.60 mn for Q3FY17 vs Rs.4372.90 mn for Q3FY16. Total Income has increased

from Rs.24439.00 mn for Q3FY16 to Rs.32935.70 mn for Q3FY17.

Emami Ltd has posted an unaudited net profit of Rs.1400.70 mn for Q3FY17 vs Rs.1311.50 mn for

Q3FY16. Total Income has increased from Rs.6812.20 mn for Q3FY16 to Rs.6903.50 mn for Q3FY17.

The Group has posted an unaudited consolidated net profit after taxes, minority interest and share of

profit of associates of Rs.1343.40 mn for Q3FY17 vs Rs.1342.80 mn for Q3FY16. Total Income has

increased from Rs.7301.10 mn for Q3FY16 to Rs.7341.20 mn for Q3FY17.

Tech Mahindra Ltd has posted an audited net profit of Rs.8518.90 mn for Q3FY17 vs Rs.6234.30 mn


Q3FY17.

Monsanto India Ltd has posted an unaudited net profit of Rs.599.30 mn for Q3FY17 vs Rs.407.60 mn


Q3FY17.

GE T&D India Ltd has posted an unaudited net profit of Rs.443.1 mn for Q3FY17 vs net loss of

Rs.(384.0) mn for Q3FY16. Total Income has increased from Rs.7835.2 mn for Q3FY16 to Rs.12668.6

mn for Q3FY17.

Grasim Industries Ltd has posted an unaudited net profit of Rs.3313.50 mn for Q3FY17 vs Rs.2718.80

mn for Q3FY16. Total Income has increased from Rs.25754.50 mn for Q3FY16 to Rs.27936.40 mn for

Q3FY17. The Group has posted an unaudited consolidated net profit of Rs.7281.90 mn for Q3FY17 vs

Rs.6404.70 mn for Q3FY16. Total Income has increased from Rs.96220.70 mn for Q3FY16 to

Rs.97435.20 mn for Q3FY17.

Info Edge (India) Ltd has posted an unaudited net profit of Rs.471.15 mn for Q3FY17 vs Rs.267.56 mn


Q3FY17.

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Bajaj Finance Ltd has posted an unaudited net profit of Rs.5556.50 mn for Q3FY17 vs Rs.4084.60 mn


Q3FY17.

Housing Development Finance Corporation Ltd has posted an unaudited net profit of Rs.17012.10 mn

for Q3FY17 vs Rs.15205.10 mn for Q3FY16. Total Income has increased from Rs.72801.70 mn for

Q3FY16 to Rs.81486.10 mn for Q3FY17. The Group has posted an unaudited consolidated net profit

after tax, minority interest and share of profit of associates of Rs.27286.60 mn for Q3FY17 vs

Rs.24190.00 mn for Q3FY16. Total Income has increased from Rs.122590.00 mn for Q3FY16 to

Rs.149888.70 mn for Q3FY17.

Godrej Consumer Products Ltd has posted an unaudited net profit of Rs.2314.00 mn for Q3FY17 vs

Rs.1939.10 mn for Q3FY16. Total Income has decreased from Rs.12994.80 mn for Q3FY16 to

Rs.12960.80 mn for Q3FY17. The Group has posted an unaudited consolidated net profit of Rs.3517.80

mn for Q3FY17 vs Rs.3677.50 mn for Q3FY16. Total Income has increased from Rs.23028.80 mn for

Q3FY16 to Rs.25046.50 mn for Q3FY17.

Rs.7,400 cr debt: SBI turns to SC for recovery of loans from JSPL (Rs.82, +3%)

A consortium of eight banks led by the State Bank of India (SBI) has asked the Supreme Court to implead it

as a part in the mining case related to Jindal Steel and Power (JSPL), in a bid to recover outstanding dues

worth Rs.7,400 crore. The consortium has said that any order to refuse permission to JSPL to lift and

transport iron ore from its Sarda Mines plant will worsen its chances of recovery. Earlier in Jan, another

SBI-led consortium of 12 banks had approached the apex court seeking intervention in Aircel-Maxis case

over outstanding dues worth Rs.20,000 crore. Another 17-bank consortium led by SBI has sought recovery

of Rs.9,000 crore dues from Kingfisher Airlines. The mining case relates to processed ore stocks lying at the

dispatch point of Sarda Mines for delivery to JSPL. The mining department in Mar 2014 had directed SMPL

to stop all mining activities on the ground that its environment clearance had expired. Subsequently, it

denied a transit permit to JSPL for transportation of iron ore. The SBI-led consortium’s application is

coming up for hearing on Mon.

Ashoka Buildcon receives LOA for power project in Bihar (Rs.188, +2%)

Ashoka Buildcon Ltd has informed BSE regarding "Receipt of Letters of Award for Power Project in the State

of Bihar".

Om Metals' JV bags contract in Africa; shares rises (Rs.46, +2%)

Share price of Om Metals Infraprojects advanced as its joint venture company secured a contract from

Africa. The company's joint venture, Om Metals-SPML, has secured a letter of intent (LOI) from Office of

Director General, Rwanda Agriculture Board for the work related to development of irrigation and

watershed development in Mpanga Sector (LOT 1) in Rwanda (Africa) for USD 1,65,84,644 exclusive of

taxes and duties in Rwanda.

Revenue growth of 14% achievable for FY17: Bharat Electronics (Rs.1586, +3%)

MV Gowtama, CMD, Bharat Electronics Limited (BEL), is optimistic of achieving revenue growth of around

14% in FY17. He is also very positive on order inflows. Currently, the company's order book stands at

Rs.34,000 crore with inflows of orders worth Rs.6000 crore till the third quarter. "Many more orders are in

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the pipeline,” Gowtama told media. The total income for the company was up 37% year on year at

Rs.2,191.3 crore. EBITDA margin too came in at 22% aided by 80 basis points fall in material cost to sales.

The YoY net profit was up 33% at Rs.373.5 corore. Only other income was down 42% YoY due to cash

outflow on account of buyback. The current fiscal is turning out to be a good year on back of new products

and manufacturing, he said.

Growth can't be taken for granted: Gujarat Alkalies MD (Rs.390, -3%)

Prem Kumar Gera, Managing Director of Gujarat Alkalies & Chemicals, said on Mon that the fall in power

prices had reduced costs and propelled the state-owned PSU to a strong show in the third quarter.

Speaking to media, Gera said the chemicals company had to contend with huge competition in the

business, adding that “growth can’t be taken for granted”. Gujarat Alkalies & Chemicals Ltd posted a

229.53% increase in net profit at Rs.47.32 crore in the third quarter ended Dec 31 from Rs.14.36 crore

recorded in the same period last year. Profit Before Tax (PBT) for the third quarter was Rs.63.33 crore, an

increase of 130.79% from Rs.27.44 crore in the corresponding period of previous year. The company has

achieved its highest-ever net sales, profit before tax and PAT for the nine months ended Dec 31. Gera said

that his company was tying up with National Aluminium Company Limited to set up a Rs.2,000 crore caustic

soda plant over the next three years.

Kalindee Rail Nirman gains on Rs.197 crore order win (Rs.118, +2%)

Shares of Kalindee Rail Nirman (Engineers) rose on order win worth Rs.197 crore from Dedicated Freight

Corridor Corporation of India. "Kalindee Rail Nirman (Engineers), a subsidiary of Texmaco Rail &

Engineering , has secured a prestigious order worth Rs.197 crores from Dedicated Freight Corridor

Corporation of India for design, supply and construction of track & track related works for Eastern

dedicated freight corridor," company said in BSE release. "This order is an important milestone to the

company’s railway track construction expertise, matching global standards," it added. The company's

board meeting will be held on Jan 30 to consider the fixation of record date for issuance and allotment of

equity shares of Texmaco Rail to the shareholders of the company pursuant to the Scheme of

Amalgamation between Texmaco and the company and their respective shareholders and creditors.

Indian Farmers Fertiliser to invest in Swan Energy (Rs.172, -11%)

Swan Energy Ltd has informed BSE that M/s. Indian Farmers Fertiliser Cooperatives Limited (IFFCO) are

willing to invest upto 10% of the Equity in the Swan Energy Limited.

Rural Electrification Corp signs MoU for extending financial assistance of Rs.60000 cr (Rs.147, -2%)

Rural Electrification Corporation Ltd has informed BSE regarding "Memorandum of Understandings signed

by REC for extending financial assistance to the tune of Rs.60,000 crore. in the state of Andhra Pradesh".

Suven Life gets patent for anti-neuro degenerative drug (Rs.179, +1%)

Drug firm Suven Life Sciences has been granted a patent by the US for a drug to cure neuro-degenerative

diseases. In a BSE filing, Suven Life said it has been granted "one product patent from the US corresponding

to the new chemical entities (NCEs) for the treatment of disorders associated with neuro-degenerative

diseases". The patents are valid till 2034, the company added. Suven Life CEO Venkat Jasti said: "We are

very pleased by the grant of these patents to Suven for our pipeline of molecules in the CNS arena, which

are being developed for cognitive disorders with high unmet medical need with a huge market potential

globally." With these new patents, Suven has a total of 25 granted patents from the US. "These granted

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patents are exclusive intellectual property of Suven and are achieved through internal discovery research

efforts. Products out of these inventions may be out-licensed at various phases of clinical development like

phase-I or phase-II," Suven said.

Reliance Defence bags Rs.916 cr contract from Defence Ministry (Rs.62, +8%)

Reliance Defence and Engineering Ltd (RDEL) has signed Rs.916 crore contract with Defence Ministry for

design and construction of 14 fast patrol vessels for Indian Coast Guard. RDEL is a wholly-owned arm of

Reliance Infrastructure Ltd (RInfra). RDEL emerged winner through a competitive bidding process

undertaken by Ministry of Defence with participation from almost all the private sector and public sector

shipyards namely, L&T, Cochin Shipyard Ltd, Goa Shipyard Ltd, Garden Reach Shipbuilders & Engineers Ltd

(GRSE), the company said in a statement. This is the first time a private sector shipyard has been awarded a

contract to design and build such class of ships for Indian Armed Forces. RDEL will be developing the design

in-house, it said. Fast Patrol Vessels (FPVs) are medium range, high speed vessels; they are primarily

utilised for patrol within Exclusive Economic Zone (EEZ), coastal patrol, anti-smuggling, anti-piracy, search

and rescue operations. They also support front line warships in the hour of need. Reliance Shipyard, with

the largest dry-dock of the country, has successfully mastered the block-construction technique through

unique 'modular construction technology' for building large ships for both commercial usage and Navy, the

statement said. The shipyard, with state-of-the-art technology, processes and skilled manpower, is well

poised to deliver any class of vessel in a most optimum time-frame.

Volume intact in Q3; hope to maintain margin at 8-9%: Zuari Agro (Rs.340, -1%)

Zuari Agro Chemicals' volumes remained intact during the third quarter but drop in international prices

leading to lower prices here caused a topline decline, said MD & Group CEO Kapil Mehan in an interview to

media. The company posted a near-15% year-on-year drop in third quarter total income at around Rs.950

crore. However, gross margins posted a healthy growth to 32.5% from 22.7%. Lower gas prices led to

decline in subsidy revenue for the urea business, Mehan said. Overall market also remained subdued with

fertiliser sales slipping nearly 5.5%, he said. He expects EBITDA margin to maintain at 8-9% going ahead.

Borrowings, which are mostly short term, have come down from Rs.3,747 crore in Mar to Rs.2,651 crore as

at end of Dec, while subsidy level is down from Rs.1,711 crore as at end of Mar to Rs.1,170 crore by Dec-

end, he said.

GMR signs MoUs with firms on setting up units in Kakinada SEZ (Rs.13, -2%)

Kakinada SEZ Ltd (KSEZ), a subsidiary of GMR Infrastructure Limited (GIL), said today it has signed a series

of MoUs with firms interested in setting up of manufacturing units in Kakinada SEZ in Andhra Pradesh.

GMR Group is developing an industrial zone Kakinada SEZ, spread over 8500 acres and an all-weather,

multi-cargo, deep water port, with an estimated phase 1 capacity of 16 mn tonnes. MoUs were signed by

KSEZ during last week's CII Partnership Summit 2017 at Visakhapatnam with five companies -- Oil Country

Tubular, Kamineni Steel & Power, United Seamless Tubular, Deepak Phenolics and DCM Shriram -- for

setting up manufacturing facilities with a total investment of Rs.7,000 crore spread over 550 acres at

Kakinada SEZ Ltd., Kakinada, Andhra Pradesh, a GIL statement said. These MoUs would be followed up with

technical and commercial discussions for lease of land in Kakinada SEZ to these firms over the coming

months, it said. Kakinada is often referred to as the 'Houston of India' owing to the existence of hydro-

carbon reserves and the oil & gas infrastructure, according to the statement. Acknowledging the advantage

of Kakinada SEZ which is the largest industrial area with port connectivity in this region, Indian oil & gas

PSU majors are joining together to set up a cracker unit, with a proposed investment of Rs.40,000 crore in

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2000 acres of GMR's Kakinada SEZ, it said, adding, an MoU in this regard was signed among GAIL, HPCL and

Government of Andhra Pradesh, during the summit. G M Rao, Group Chairman, GMR Group, said, GMR

Group is proud to be partnering with the State of Andhra Pradesh in the development of a port based

investment region near Kakinada in the East Godavari District. We strongly support Prime Minister

Narendra Modi's 'Make In India' campaign, and Chief Minister N Chandrababu Naidu's endeavours to

cement the place of Sunrise State of AP as the most attractive destination for global investments into India.

GMR group's Kakinada SEZ is all set to transform the industrial landscape of the Godavari districts bringing

in significant investments and employment. Kakinada SEZ, which is centred in the Kakinada node of the

Visakhapatnam Chennai Industrial Corridor being developed by Asian Development Bank, would house

various industries including petrochemicals, food & agro processing, discrete manufacturing, electronics,

toys, sports goods & apparel, offering a combination of export oriented SEZs and domestic market oriented

DTAs, GIL said.

Note ban hit new customer additions by 7-8%: Justdial (Rs.382, +3%)

Ramkumar Krishnamachari, Chief Financial Officer of Justdial, said on Monday that the note ban in

November hit new customer additions by 7-8%. Speaking to media, Krishnamachari said that despite the

difficulty in signing up customers from certain segments, the impact of demonetisation had turned out to

be neutral as the local search service had witnessed better payouts from existing clients. He said that the

core search business had grown better than in the previous quarter and expects sales growth to improve in

the final quarter. Krishnamachari also said that while bottom performers had been weeded out from the

sales force, Justdial will undertake hiring in Q4, saying it takes six to eight months for new employees to

become productive. Justdial reported a 5.90% rise in net profit at Rs.27.44 crore for the third quarter

ended Dec 31, 2016. The company had reported a net profit of Rs.25.91 crore in the corresponding quarter

a year ago. Justdial's total income from operations grew by 8.48% to Rs.180.27 crore in the quarter under

review as against Rs.166.17 crore in year-ago period, it said in a BSE filing. Going into the next financial

year, Krishnamachari said the focus would be on core business, which he said had “immense potential”.

Battery volumes to grow by 3-4%, topline by 7-8%: Eveready India (Rs.246, +2%)

It was a subdued third quarter for Eveready Industries India. Revenue was flat at Rs.344.7 crore versus

Rs.342.3 crore for the same quarter earlier fiscal. EBITDA too was flat at Rs.35.2 crore versus Rs.37.5 crore

YoY. According to the Eveready management, a disturbance in turnover in Nov and Dec due to

demonetisation. Speaking to media, Amritanshu Khaitan, MD of the company said flashlight and battery

business was impacted due to demonetisation. However, both businesses will show see huge growth in

volumes in FY18, he added. Volumes for the battery business are expected to grow in a range of 3-4% going

ahead, said Khaitan. The topline is also expected to grow by 7-8% growing ahead, said Khaitan.

Expect volume growth to recover in Q4, says APL Apollo (Rs.1042, +1%)

In an interview with media, Ashok Gupta, MD of APL Apollo Tubes, spoke about the results and his outlook

for the company. He said that domestic market volume saw growth at 4%. "We expect volume growth to

recover to 10-11% in Q4," he said. APL Apollo passed on the steel price increase to customers, said Gupta.

He further added that value added products are growing at a faster pace than normal volumes. Gupta said

that exports contribute 10% to total revenues.

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Expect revenue to grow at 24% for brands business: Arvind (Rs.379, +2%)

For the third quarter of FY17, textile manufacturer Arvind reported a 14.4% increase in revenue to Rs.2323

crore year-on-year (YoY) and its EBITDA fell 8.2% to Rs.235 crore (YoY). In an interview with media, Kulin

Lalbhai, ED of Arvind, said that the drop in EBITDA was on the back of trade channels that witnessed a

liquidity crisis. He said that post the temporary shock due to demonetisation, business is now seeing a

strong recovery. Lalbhai expects revenue to grow at 24% for its brands business

GCPL Q3 net shrinks 4.3% to Rs.352 cr after cash ban (Rs.1604, +3%)

FMCG firm Godrej Consumer Products Ltd (GCPL) logged a 4.34% decline in consolidated net profit at

Rs.351.78 crore for the Dec 2016 quarter partly due to the impact of demonetisation. Its net profit for Oct-

Dec last year stood at Rs.367.75 crore. GCPL's total income was up 8.75% during the period under review at

Rs.2,485.77 crore as against Rs.2,285.74 crore a year earlier, it said in a BSE filing. Godrej Group Chairman

Adi Godrej said: "In India, while demonetisation has resulted in some near-term disruptions, we have

outperformed the overall market with secondary sales growth of 2% during the quarter... Through our

focus on operating efficiencies and judicious cost management, our Ebitda, too, has increased by 15%." He

further said: "Going forward, remonetisation should result in growth normalising in India over the next few

months. In financial year 2018, implementation of GST will provide strong momentum for a much better

economic environment and stronger consumer demand." During the quarter, GCPL's India business

primary sales came in flat due to demonetisation. Meanwhile, in a separate filing, GCPL said its board in a

meeting today declared a third interim dividend of Rs.1 per share for 2016-17.

PNB Housing Finance to raise Rs.1025 crore via issue NCD (Rs.910, -2%)

PNB Housing Finance Ltd has informed BSE regarding a Press Release dated Jan 30, 2017 titled "PNB

Housing Finance announces Private Placement of Secured Redeemable Non-Convertible Bonds (NCD) to

raise INR 1,025 crore".

Piramal to acquire drugs from UK's Mallinckrodt for Rs.1,162 cr (Rs.1723, 0%)

Piramal Enterprises said it will acquire a portfolio of intrathecal spasticity and pain management drugs from

UK-based Mallinckrodt for USD 171 mn (around Rs.1,162 crore) in an all cash deal. The company's UK-

based wholly-owned subsidiary Piramal Critical Care has entered into an agreement with Mallinckrodt for

acquiring the drugs and may also pay an additional USD 32 mn depending on financial performance of the

acquired assets over the next three years. The acquired portfolio includes Gablofen (baclofen), a severe

spasticity management product, which is currently marketed in the US and two pain management

products, which are currently under development. "We continue to invest in the growth of our

pharmaceutical businesses. This would be our 7th pharma acquisition in the last two years, taking our

investment for inorganic growth to Rs.3,000 crore across our pharmaceutical businesses," Piramal

Enterprises Ltd Chairman Ajay Piramal said in a statement. All these acquisitions are expected to be value

accretive and will improve the company's pharmaceutical segment's growth, he added. "This transaction is

a step further in our strategy to make investments, in both internal developments and acquisitions, to

expand our presence in the global generic hospital drug market, which is greater than USD 20 bn in size,"

Pirmal said. Through this strategy, the company's focus continues to be the creation of long-term value for

shareholders, he added. Completion of the transaction is subject to HSR review in the US and certain other

conditions, the Mumbai-based firm said. "This acquisition provides Piramal a leadership position within the

intrathecal spasticity segment and the opportunity to access the intrathecal pain management market,

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which is complementary to our critical care focus, and leverage our current operations and capabilities,

especially in the US, "Piramal Critical Care CEO Peter DeYoung said. These acquisitions add branded

products that are in attractive niches with barriers to entry and limited competition, he added. "Along with

our inhalation anesthesia products, we are building an exciting portfolio to offer our customers and a

substantially more diversified revenue base," DeYoung said. Piramal Enterprises Ltd (PEL) is the flagship

company of Piramal Group and has a presence in the healthcare and financial services verticals.

SAIL in talks with CIL over coaking coal price hike (Rs.64, +1%)

Worried over domestic coking coal price hike effected by state-owned Coal India, the country's largest steel

maker SAIL said it is in negotiations with the miner on the issue as it is difficult for the company to absorb

the increase. "We are under negotiations with them and working model will come out," Steel Authority of

India Ltd ( SAIL ) Chairman P K Singh told PTI on Coal India Ltd's recent hike in coking coal prices. CIL arm

Bharat Coking Coal Ltd this month increased the prices of coking coal by about 20%. Another subsidiary of

the world's largest miner Central Coalfields Ltd has also increased price of metallurgical coal this month.

"We are in dialogue with them (CIL). We have told (them) that at this stage it is difficult for us to absorb

(the hike in coking coal price). They have agreed to form a committee," Singh said. The panel which will be

constituted will have members from both the state-owned firms. SAIL too is a state-owned firm and is a

prime consumer of coking coal as well as a major customer of CIL's metallurgical coal. "We have an MoU

with Coal India. Once we are in that MoU that pact remains applicable for the entire financial year. MoU

means we also have an assured offtake from Coal India and We take coking coal from them. We take

domestic coking coal supply only from Coal India," Singh said. According to an official, the price of various

grades of coking coal of CIL varies between Rs.2,400 and Rs.5,050 per tonne. Asserting that SAIL was

unable to recover its cost of production, he said there was a lot of pressure on its operations. On possibility

of price increase by the steel PSU, he said "it will depend on market situation". Of its total requirement,

SAIL imports 86% of metallurgical coal, while the rest is sourced indigenously. The steel PSU has existing

captive coking coal production of nearly 0.5 mn tonnes per annum. The global coking coal price which was

at USD 80 per tonne in Jan last year rose to USD 283 per tonne in Dec, Indian Steel Association Secretary

General Sanak Mishra said. However, in early Jan, global price of metallurgical coal came down to USD 193

per tonne, Mishra said.

Idea zooms as Vodafone confirms merger talks with AB Group (Rs.98, +26%)

Shares of Idea Cellular zoomed after Vodafone confirmed talks with the Aditya Birla Group firm for a

possible merger. The combined entity will create India's largest telecom company with revenues of over

Rs.80,000 crore. The merger, if it goes through, will create India’s largest telecom player both in revenues

and subscribers. What fuels the talk of a merger include threat to the two incumbents and Bharti Airtel

from Reliance Jio. The latest entrant in the telecom sector, Reliance Jio is fast acquiring subscribers on the

back of free voice and data services under its Happy New Year offer. Jio acquired 72.4 mn subscribers in

the four months of commencement of services. While Vodafone has a stronger base in metros, greater

rural focus is Idea’s game.

Grasim Industries Q3 net grows 13.7% to Rs.728 cr (Rs.970, +4%)

Aditya Birla Group firm Grasim Industries Ltd posted an increase of 13.69% in its consolidated net profit at

Rs.728.19 crore for the third quarter ended Dec. Net profit stood at Rs.640.47 crore in Oct-Dec a year ago,

Grasim Industries said in a filing to BSE. Its consolidated total income from operations was up marginally by

0.84% at Rs.9,577.02 crore during the quarter under review as against Rs.9,496.84 crore in the same period

9

last fiscal. "Grasim has reported improved profitability for the quarter ended Dec 31, 2016... Ebitda at

Rs.1,878 crore was up by 7% driven by the performance from VSF and cement businesses," the company

said in a statement. Grasim Industries' total expenses came down marginally by 0.15% to Rs.8,315.27 crore

as against Rs.8,327.81 crore. Its revenue from viscose staple fiber division was up 9.83% at Rs.1,902.92

crore as against Rs.1,732.51 crore. Its cement revenue was down 1.50% at Rs.6,761 crore from the earlier

Rs.6,864.57 crore.

Tata Chemicals signs MoU with Government of Andhra Pradesh (Rs.538, -1%)

Tata Chemicals Ltd has informed BSE that the Company has signed an MOU with the Government of

Andhra Pradesh on Jan 28, 2017 during the 2nd Sunrise Andhra Pradesh Investment Meet for creation and

development of Biotechnology based nutritional products such as Oligosaccharides and other nutritional

products in Nellore district involving an investments of approximately Rs.200 - 250 Crores.

10

Information of Bulk Deals – 30th Jan 2017 on BSE

Scrip name Name of Client BUY (B) / SELL (S)

Quantity Shares

Trade Price/ W Avg. Price

Acemen Unifour Garments Llp S 50,000 15.17

Apteaml Ayay Commodity Services Private Limited S 60,000 99.8

Apteaml Chetan Jashwant Mehta B 24,020 99.8

Apteaml Jashwant Bhaichand Mehta B 24,020 99.8

Apteaml Jaydeep V Mehta B 24,020 99.8

Apteaml Kbs Broking And Financial Services Private Limited S 36,080 99.8

Apteaml Nikhil Vinod Mehta B 24,020 99.8

Austeng Dheeraj Kumar Lohia B 34,121 57.21

Gitanjali Uno Metals Limited S 11,00,000 69.79

Ibinfo Rajkumar Shyamnarayan Singh B 13,500 18.01

Ibinfo Rita Prashant Shah S 10,000 18.1

Intlcombq Utsav Pramodkumar Shrivastav B 17,500 377.2

Junction Hem Sec Ltd S 16,000 30.75

Junction Vivek Kumar Bhauka B 16,000 31.25

Lykalabs Amee Hemant Parikh B 4,75,356 62.55

Lykalabs Samanya S 4,75,356 62.55

Marsons Charu Kotia S 2,00,000 17.14

Mercator Nomura Singapore Limited S 96,00,000 42.6

Mercator Stream Value Fund S 16,67,076 43.04

Pawansut Anurodh Infrastructure Limited B 91,000 7.78

Pawansut Rajesh Bidhuri S 59,932 7.78

Raclgear Arendra Kumar S 1,00,000 35.78

Regtrus Bharat Sagalchand Tanna S 1,43,391 2.09

Regtrus Jamie Properties Private Private Limited B 1,43,391 2.09

Relicab Supriya Jatia S 36,000 41.2

Spyl Yash Infra Realty Private Limited S 20,00,000 0.74

Transfd Namrah Transport & Logistics Private Limited S 28,309 11.78

Transfd Nityasa Electricals And Engineers Pvt Ltd S 29,500 11.76

Information Of Bulk Deals – 30th Jan 2017 On NSE

Scrip name Name of Client BUY (B) / SELL (S)

Quantity Shares

Trade Price/ W Avg. Price

Globe Intl Carriers Ltd Singh Vijit S 42000 24

Gretex Industries Ltd. Navin Kumar Gupta B 54000 15.22

Gretex Industries Ltd. Ruchi Gupta B 54000 15.11

Kernex Microsystems Alaukik Mines And Power P Ltd B 71496 41.85

Lyka Labs Ltd Parikh Amee H. B 500000 62.55

Lyka Labs Ltd Samanya S 500000 62.55

Ppap Automotive Limited Trustline Holdings Private Ltd S 76000 200

11

Disclosures Under SEBI (Prohibition Of Insider Trading) Regulations, 2015

Company Name Name of Acquirer / Seller Securities Held pre Transaction

Securities Acquired / Disposed Number Value Transaction Type

Securities held post Transaction

Period

HDFC Ltd. Ashit Singh Rathore 7130 (0.00) 6,166 Disposal 964 (0.00) 30/12/2016

Dcw Ltd. Mudit Jain 1401498 (0.64) 1,00,000 3458771.1 Disposal 1301498 (0.60) 27/01/2017

Khandwala Securities Ltd. Piggero Investments Pvt Ltd 84471 (0.71) 3,000 50291.00 Acquisition (-) 25/01/2017

Khandwala Securities Ltd. Piggero Investments Pvt Ltd (-) 500 8555.00 Acquisition 87971 (0.74) 25/01/2017

Khandwala Securities Ltd. Piggero Investments Pvt Ltd 87971 (0.74) 8,040 135001 Acquisition (-) 27/01/2017

Khandwala Securities Ltd. Piggero Investments Pvt Ltd (-) 5,499 91479 Acquisition 101510 (0.85) 27/01/2017

Sonata Software Ltd. Gilroy Gomes 53798 (0.05) 38,673 8199430 Disposal 15125 (0.01) 24/01/2017

Sonata Software Ltd. Gilroy Gomes 15125 (0.01) 14,500 3032050 Disposal 625 (-) 25/01/2017

Compucom Software Ltd. Compucom Technologies Pvt Ltd 15962058 (20.17) 2,05,450 3136854 Disposal 15756608 (19.91) 29/01/2017

12

Rating Scale This is a guide to the rating system used by our Institutional Research Team. Our rating system comprises of six rating categories, with a corresponding risk rating.

Risk Rating Risk Description Predictability of Earnings / Dividends; Price Volatility

Low Risk High predictability/ Low volatility

Medium Risk Moderate predictability / volatility

High Risk Low predictability/ High volatility

Total Expected Return Matrix Rating Low Risk Medium Risk High Risk

Buy Over 15 % Over 20% Over 25%

Accumulate 10 % to 15 % 15% to 20% 20% to 25%

Hold 0% to 10 % 0% to 15% 0% to 20%

Sell Negative Returns Negative Returns Negative Returns

Neutral Not Applicable Not Applicable Not Applicable

Not Rated Not Applicable Not Applicable Not Applicable

Please Note

Recommendations with “Neutral” Rating imply reversal of our earlier opinion (i.e. Book Profits / Losses).

** Indicates that the stock is illiquid With a view to combat the higher acquisition cost for illiquid stocks; we have enhanced our return criteria for such stocks by five percentage points.

“Desk Research Call” is based on the publicly available information on the companies we find interesting and are quoting at attractive valuations. While we do not claim that we have compiled information based on our meeting with the management, we have taken enough care to ensure that the content of the report is reliable. Although we have christened the report as “Desk Research Calls” (DRC), we intend to release regular updates on the company as is done in our other rated calls.

For any information or suggestion, please contact the below mentioned…

Nishita Shah ([email protected])

Sushil Financial Services Private Limited Member BSE: SEBI Regn.No. INB/F010982338 | Member NSE: SEBI Regn.No.INB/F230607435.

Office: 12, Homji Street, Fort, Mumbai 400 001. Phone +91 22 4093 6000 Fax +91 22 2266 5758

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world indices & indian adrs (us$) 30-jan-17 · · 2017-01-31reliance defence bags rs.916 cr...

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