Axis Bank sticks to its caution script and so do its investors

In an update on its retail book, the private sector lender’s executives said delinquencies may spike in the third and fourth quarter of the current financial year

Axis Bank hasn't been able to bridge the valuation gap even with the sector index in a sign that investors share the bank’s caution

Things may get worse before they get better. That, in a nutshell, seems to be the message from Axis Bank’s management.

In an update on its retail book through a media interaction, the private sector lender’s executives said delinquencies may spike in the third and fourth quarter of the current financial year. To be sure, the lender has reported a sharp improvement in collections, just like its peers. Collection efficiency surged to 95% after the moratorium ended in August and gross bad loans were down to 4.18% of total loan book for the September quarter.

But the commentary from the management has been more cautious than that of rivals such as HDFC Bank and ICICI Bank. Even in Thursday’s media interaction, the management stuck to caution. The bank is right in its guarded approach. Economic indicators have been mixed, with some sectors still showing pain. Employment and wages have taken a huge hit and the recovery in both is patchy. The Reserve Bank of India’s (RBI's) consumer sentiment survey has shown that Indians remain pessimistic over future employment and income prospects. “Given the fact that a lot of people lost their jobs, some had to take salary cuts and some industries were badly affected, these will have some impact on delinquency and portfolio collections," said Sumit Bali, head of retail lending at Axis Bank at Thursday’s interaction.

Small businesses continue to remain under stress, and asset quality here is only propped up due to the government’s guarantee schemes and regulatory forbearance. Once they are removed, it would be challenging for lenders to maintain current asset quality metrics. Analysts have pointed out that bad loans in the micro, small and medium enterprises (MSMEs) loan book may increase in coming quarters.

That is not to say that Axis Bank sees pain even in FY22. In fact, the lender has stressed that asset quality metrics may see improvement in the next financial year. Most of its peers, too, have indicated the same and the recent rally in banking shares show that investors share this optimism.

Axis Bank’s shares, too, have rallied in tandem with others in the past three months. However, the stock has underperformed peers such as ICICI Bank and HDFC Bank since January. It has not been able to bridge the valuation gap even with the sector index. Perhaps this is a sign that investors share the bank’s caution.

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Vodafone Idea zooms after selling 11.15% stake in Indus

Vodafone Idea is currently trading at Rs. 9.66, up by 0.39 points or 4.21% from its previous closing of Rs. 9.27 on the BSE.

The scrip opened at Rs. 9.60 and has touched a high and low of Rs. 9.70 and Rs. 9.50 respectively. So far 35704938 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 13.45 on 04-Sep-2020 and a 52 week low of Rs. 2.83 on 18-Feb-2020.

Last one week high and low of the scrip stood at Rs. 10.02 and Rs. 8.79 respectively. The current market cap of the company is Rs. 27787.12 crore.

The promoters holding in the company stood at 72.05%, while Institutions and Non-Institutions held 7.11% and 20.84% respectively.

Vodafone Idea has sold its 11.15% stake in Indus for a cash consideration of Rs 37.6 billion in accordance with the terms of the agreement and out of the consideration received from Infratel, the Company has made a prepayment of Rs 24 billion which will be adjusted in line with terms of the agreement.

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence.

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L&T surges on bagging order for Construction and Mining Equipment Businesses

Larsen & Toubro is currently trading at Rs. 1106.55, up by 25.30 points or 2.34% from its previous closing of Rs. 1081.25 on the BSE.

The scrip opened at Rs. 1081.00 and has touched a high and low of Rs. 1109.80 and Rs. 1079.35 respectively. So far 123708 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1417.50 on 21-Nov-2019 and a 52 week low of Rs. 661.05 on 25-Mar-2020.

Last one week high and low of the scrip stood at Rs. 1116.00 and Rs. 1038.60 respectively. The current market cap of the company is Rs. 155703.98 crore.

The Institutions holding in the company stood at 53.94%, and Non-Institutions held 46.06%.

Larsen & Toubro (L&T) has bagged biggest order ever for its Construction and Mining Equipment Businesses to supply 46 units of Komatsu Mining Equipment from Tata Steel. The order comprises of 41 units of Komatsu HD785-7 (100 Ton Dump Truck), three units of Komatsu WA900-3E0 (9 Cum Wheel Loader) and two units of Komatsu D275A-5R (410HP Crawler Dozer). The scope includes supply of equipment and full maintenance contract for 60,000 hours of equipment operation.

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.

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Titan Company gains on launching first international Tanishq store in Dubai

Titan Company is currently trading at Rs. 1206.80, up by 6.25 points or 0.52% from its previous closing of Rs. 1200.55 on the BSE.

The scrip opened at Rs. 1201.00 and has touched a high and low of Rs. 1212.90 and Rs. 1194.95 respectively. So far 14427 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1340.60 on 20-Feb-2020 and a 52 week low of Rs. 720.00 on 24-Mar-2020.

Last one week high and low of the scrip stood at Rs. 1212.90 and Rs. 1154.00 respectively. The current market cap of the company is Rs. 106640.87 crore.

The promoters holding in the company stood at 52.90%, while Institutions and Non-Institutions held 29.02% and 17.73% respectively.

Titan Company has launched its first international Tanishq store in Dubai as part of expanding regions outside India. With the commencement of company’s operations in Dubai, it sees the brand being accessible to international customers and NRI communities. The brand also has launched an exclusive website for Dubai showcasing its collections.

Titan Company is an Indian designer and manufacturer of watches, jewellery, precision engineering components and other accessories including sunglasses, wallets, bags and belts

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Hero MotoCorp registers highest ever monthly sales in Oct 2020

The two-wheeler maker reported a 35% rise in its domestic wholesales at 7.91 lakh units

A positive turnaround in customer sentiments have enabled the company to achieve record numbers during the auspicious festive period,' the company said.

Hero MotoCorp Ltd on Sunday reported a 34.77% year-on-year rise in its domestic wholesales for October to 7,91,137 units due to robust recovery in sales of entry-level motorcycles in rural and semi-urban markets after the easing of lockdown measures. Overall, HeroMotoCorp registered its highest ever monthly sales of 8.06 lakh units in October 2020.

The country's largest two-wheeler maker also increased inventory at dealerships expecting good retail sales during the Diwali festival.

On a sequential basis, the company's dispatches were higher than 6,97,293 units in September and 5,68,674 units in August. The New Delhi-based manufacturer restarted operations at its Haryana and Uttarakhand factories from 5 May, selling 1,20,000 units in the month.

In October, dispatches of motorcycles, including exports, increased 32.5% to 7,32,498 units while that of scooters rose 59.6% to 74,350 units.

Hero’s exports jumped by 28.14% to 15,711 units during the month.

“A positive turnaround in customer sentiments – particularly for motorcycles across markets, continued government policy support and a credible resumption of supply chain, logistics and business operations have enabled the company to achieve record numbers during the auspicious festive period," the company said in a statement.

To offset the increase in commodity cost the company has raised prices of its vehicles by 2%, across the product portfolio.

In July, Mint had reported that expecting sales recovery to continue, especially in rural and semi urban markets, during the upcoming festival season, Hero plans to increase production to 6.5 lakh units or more from September.

Investors have been bullish about near-term prospects of the Pawan Munjal-led company since it is likely to benefit from a shift in preference to entry and executive segment motorcycles because of a quicker recovery in demand in rural areas and increasing preference for personal mobility on fears of contracting infection.

Despite witnessing decent recovery in retail sales, automakers like Hero MotoCorp are struggling to ramp up manufacturing due to disruption in supply chain network. Regional lockdowns due to rising covid-19 cases and increased inspection of imported parts from China have also added to their production woes.

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Tata Motors shines on bagging order of 6413 vehicles from Andhra Pradesh State Civil Supplies Corporation

Tata Motors is currently trading at Rs. 140.15, up by 3.15 points or 2.30% from its previous closing of Rs. 137.00 on the BSE.

The scrip opened at Rs. 139.40 and has touched a high and low of Rs. 140.25 and Rs. 137.60 respectively. So far 726579 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 201.80 on 15-Jan-2020 and a 52 week low of Rs. 63.60 on 24-Mar-2020.

Last one week high and low of the scrip stood at Rs. 140.75 and Rs. 126.40 respectively. The current market cap of the company is Rs. 42318.92 crore.

The promoters holding in the company stood at 42.39%, while Institutions and Non-Institutions held 29.06% and 18.10% respectively.

Tata Motors has bagged the prestigious order of 6413 vehicles from Andhra Pradesh State Civil Supplies Corporation. Tata Motors emerged as the top bidder, as per the terms and conditions of the government body, and will be delivering the fully-built Tata Ace Gold vehicles. The vehicles are to be used as mobile dispensing units for the doorstep delivery of supplies in the state of Andhra Pradesh, and will be customised by Tata Motors to perfectly suit the application. The Tata Ace Gold was chosen for its value-for-money, low cost of operations, durability and versatility. The e-bidding process was carried out through the Government e-Marketplace.

Tata Motors is India’s largest automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands.

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Reliance Industries soars as its telecom arm planning to launch 5G smartphone for less than Rs 5,000

Reliance Industries is currently trading at Rs. 2217.00, up by 41.50 points or 1.91% from its previous closing of Rs. 2175.50 on the BSE.

The scrip opened at Rs. 2192.00 and has touched a high and low of Rs. 2217.95 and Rs. 2156.00 respectively. So far 140661 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 2368.80 on 16-Sep-2020 and a 52 week low of Rs. 867.45 on 23-Mar-2020.

Last one week high and low of the scrip stood at Rs. 2304.20 and Rs. 2156.00 respectively. The current market cap of the company is Rs. 1493226.96 crore.

The promoters holding in the company stood at 50.37%, while Institutions and Non-Institutions held 38.54% and 11.10% respectively.

Reliance Industries’ (RIL) telecom arm -- Reliance Jio Infocomm (Jio) is planning to launch a 5G smartphone for less than Rs 5,000 and gradually reduce the price to Rs 2,500-3,000 a unit when it scales up the operation. The company will target 20-30 crore mobile phone users who use 2G connection at present.  At present, 5G smartphones are available in India in the price range starting from Rs 27,000.

Reliance Industries is India’s largest private sector company. The company’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.

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BPCL trades marginally higher on planning to raise engine oil market share to 13-14% by March

Bharat Petroleum Corporation is currently trading at Rs. 342.55, up by 1.15 points or 0.34% from its previous closing of Rs. 341.40 on the BSE.

The scrip opened at Rs. 343.00 and has touched a high and low of Rs. 343.50 and Rs. 339.70 respectively. So far 19781 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 549.70 on 21-Nov-2019 and a 52 week low of Rs. 252.00 on 24-Mar-2020.

Last one week high and low of the scrip stood at Rs. 353.75 and Rs. 337.60 respectively. The current market cap of the company is Rs. 74112.52 crore.

The promoters holding in the company stood at 52.98%, while Institutions and Non-Institutions held 33.29% and 13.73% respectively.

Bharat Petroleum Corporation (BPCL), which controls 11-12 percent of the around Rs 35,000-crore engine oil market, has set a target of raising its market share to 13-14 percent by March, given the rising rural demand as the farm sector is set for yet another bumper harvest. The second-largest national oil marketer is also expecting to increase its rural volumes to 60 percent and above by the end of this fiscal, from 45-50 percent now. Tractor oils are the largest selling product for the divestment-bound company that sells its lubes under the umbrella brand of Mak.

BPCL is into exploration, production and retailing of petroleum and petrol related products. The retail business unit of BPCL is into marketing of petrol, diesel and kerosene.

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Infosys shines as its arm unveils Infosys Health Insights Platform

Infosys is currently trading at Rs. 1100.60, up by 34.05 points or 3.19% from its previous closing of Rs. 1066.55 on the BSE.

The scrip opened at Rs. 1089.00 and has touched a high and low of Rs. 1109.75 and Rs. 1088.10 respectively. So far 165125 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1,109.75 on 08-Oct-2020 and a 52 week low of Rs. 511.10 on 19-Mar-2020.

Last one week high and low of the scrip stood at Rs. 1109.75 and Rs. 1019.00 respectively. The current market cap of the company is Rs. 454287.58 crore.

The promoters holding in the company stood at 13.15%, while Institutions and Non-Institutions held 55.90% and 13.60% respectively.

Infosys’ US-based subsidiary -- Infosys Public Services has unveiled the Infosys Health Insights Platform (IHIP) - an automated data science platform for public health agencies developed in collaboration with Amazon Web Services (AWS), Couchbase, and Knowi. The new platform is part of the Infosys Cobalt’s growing portfolio of 14,000 cloud assets. Built on AWS, this new platform will help agencies scale their analytics capabilities and turn massive amounts of data into valuable insights and actionable recommendations.

IHIP will also spur collaboration, allowing multiple groups of public health workers - including analysts, data scientists, researchers, epidemiologists, caseworkers, and policymakers - to work together to deliver proactive and specific interventions to the constituents they serve. In the context of the COVID-19 pandemic, the platform can help stakeholders explore various public health concerns, including identifying high-risk individuals, forecasting hotspots of infection spread, and recommending insights on implementing or easing restrictions to manage the crisis better.

Infosys is a global leader in next-generation digital services and consulting.

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