Morning update for 8 February 2021

Previous closing (5 February 2021)

Nifty50: 14,924 ▲28 (+0.1%)

Sensex: 50,731 ▲117 (+0.2%)

Nifty Bank: 35,654 ▲309 (+0.8%)

In the news

Britannia’s Q3 beats estimates 

• The FMCG major recorded a 22% YoY rise in net profits to ₹452 crore in Q3, beating street estimates of ₹424 crore. Revenues rose 6% to ₹3,165 crore, buoyed by rural demand and recovery in urban consumption.
• The company saw moderately rising input costs. However, palm oil prices rose significantly. Its stock has been witnessing range-bound movement for over six months now. 

Divi’s Labs posts strong Q3 

• The Hyderabad-based pharma company posted a 22% YoY increase in Q3 revenues, which stood at ₹1,701 crore. Profit for the quarter rose 31% to ₹470 crore, in line with street expectations. 
• Its management is optimistic about growth over the coming quarters and was confident of maintaining margins, going forward. The stock has risen 13.3% in February, so far.

BHEL’s losses narrow sequentially

• Power generation equipment maker BHEL reported a consolidated loss of ₹217 crore versus a profit of ₹162 crore last year. Its revenues dropped by 21.6% YoY to ₹4,451 crore. 
• Sequentially, however, the loss has narrowed from ₹552 crore in Q2. Further, the company has an order book of over ₹1 lakh crore, which is five times its FY20 sales. Its stock has jumped nearly 20% so far in this month, supported by an increase in volumes. 

IRCTC starts bus-ticket booking 

• The new service allows travellers to book bus tickets in addition to train and flight bookings via the IRCTC website. However, integration into the mobile app will happen by the first week of March 2021. The service is a bid to enable last-mile connectivity for travellers using IRCTC’s booking services. 
• IRCTC clocked a revenue of ₹245 crore in the Q3, down 66% YoY. Profit after tax too nosedived 62% YoY to ₹78 crore on account of Covid-restrictions. The results notwithstanding, the stock has risen 6.7% in February.

Events of the week

• Wednesday: Crude oil inventories (US)
• Thursday: Initial jobless claims (US)
• Friday: Consumer Inflation, IIP (India)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

Mahindra & Mahindra was originally founded as Mahindra & Mohammed in 1945 as a steel-trading company in Ludhiana. The company was renamed in 1948 after co-founder Ghulam Mohammed left for Pakistan and became its first finance minister.
Source: Mahindra.com

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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.