News from trendlyne

Reliance Industries Limited (RIL)    
21 Jan 2018, 10:43AM
Deepak Shenoy: Jio not profitable, large interest costs taken on by Reliance click to expand

Investment advisor Deepak Shenoy pointed out today that Reliance Industries' reporting approach in its balance sheet is what has made Jio look profitable just 1.5 years after starting operations - RIL has provided it strong cash flow by first taking out a loan, and then buying shares in Jio. This way, Jio pays no interest on the cash injection, since those interest payments are taken on by the parent company. 

While this form of accounting is legal, for investors this approach may be troubling, since it doesn't truly reflect the profit situation and ROE of Jio. Reliance ha already invested more than Rs. 80,000 crore in Jio - for a standalone company, this would be a massive interest payment burden and depreciation costs. But thanks to RIL's accounting, Jio's books look clean and the telecom business looks more successful than it currently is.

The amount of debt that RIL has taken on for Jio has already raised flags for brokerages such as Jeffries and UBS, and UBS had issued a sell call on Reliance citing the massive debt. 

Reliance Industries .. has an average target of 927.25 from 8 brokers.
Reliance Industries Limited (RIL)    
19 Jan 2018, 07:27PM
Airtel's loss is Jio's gain: Reliance's telecom business reports a profit click to expand

Reliance Industries was gaining in share price in the leadup to results, and the company delivered with an impressive quarterly net profit and revenue performance - consolidated net profit was up 25% YoY. Revenue from operations during the quarter was up 21.74% YoY to Rs 1,02,500 crore compared with Rs 84,189 crore reported for the same quarter last year. The numbers were helped by RIL's strong gross refining margins which stood at $11.6 a barrel compared to $10.8 a barrel in the December quarter of FY17. 

The number that is likely to excite a lot of investors is the performance of Reliance Jio - the telecom operator has taken a big chunk of market share from its competition. The company said that Reliance Jio, despite the deep discounts offered to its subscribers, has turned profitable in this December quarter. Jio has reported a net profit of Rs 504 crore, compared to the losses it saw of Rs. 271 crore in the September quarter. Jio's December results are in contrast to Airtel's which were announced yesterday, and which showed profits falling for the sixth straight quarter.

Reliance had been cautious through the year of committing when the telecom arm would turn profitable. Jio had been positive in terms of EBITDA in the September quarter - earnings before deductions for tax and depreciation, interest etc. Jio has a subscriber base of 160.1 million at the end of December.

Porinju V Veliyath    
19 Jan 2018, 06:19PM
Porinju Veliyath invests in Kerala Ayurveda, BCL Industries, Sarda Plywood click to expand

As per the latest data, Porinju Veliyath and Equity Intelligence India are investing in some new stocks as of the December quarter. Porinju has added 200,000 sharess of BCL Industries and 140,000 shares of Kerala Ayurveda to his portfolio. His investments in Kerala Ayurveda seem strategically timed, considering that the government is looking to strengthen this sector via certifications and greater regulation. 

BCL Industries has been a multibagger, delivering over 240% returns in the last 12 months. Veliyath has also upped his stake in Sarda Plywood in the December quarter.


Trendlyne Marketwatch    
19 Jan 2018
The Closer: Markets end day in the green, Biocon hits record high click to expand

Markets closed higher by 0.71%, ending a bumper week for the Sensex and Nifty. Market breadth is balanced. Of the 2902 stocks traded today, 1301 showed gains, and 1457 showed losses. Bangalore-based pharma firm Biocon Limited is among the top gainers today, hitting a record share price high on news of a global collaboration with Sandoz to develop, manufacture and commercialize biosimilar products in immunology and oncology. This comes after Biocon's success with trastuzumab, a breast cancer biosimilar it launched with Mylan. 

Riding High:

Largecap and midcap gainers today include Gruh Finance Limited (654.00 9.98%), Jubilant Foodworks Limited (2085.00 7.39%) and Biocon Limited (569.95 5.62%).


Largecap and midcap losers today include Berger Paints (I) Limited (246.50 -2.91%), Jubilant Life Sciences Limited (876.10 -2.63%) and Hindustan Zinc Limited (300.65 -2.61%).

Movers and Shakers

18 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Cyient Limited (656.75 12.98%), Jubilant Foodworks Limited (2085.00 7.39%) and Wonderla Holidays Limited (415.00 5.79%).

Top high volume losers on BSE were Relaxo Footwears Limited (635.80 -2.17%), Schaeffler India (Fag bearings) (5624.00 -1.51%) and Linde India Limited (536.60 -1.10%).

Solar Industries India Limited (1138.00 -0.61%) was trading at 233.1 times of weekly average. Sunteck Realty Limited (418.00 4.97%) and ICICI Bank Limited (353.40 2.11%) were trading with volumes 85.3 and 15.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks made 52 week highs, while 3 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Biocon Limited (569.95 5.62%), Cyient Limited (656.75 12.98%) and Finolex Cables Limited (744.45 5.01%).

Stocks making new 52 weeks lows included - Balrampur Chini Mills Limited (123.45 -1.91%) and Sequent Scientific Limited (94.00 -1.16%).

10 stocks climbed above their 200 day SMA including Canara Bank (360.70 3.52%) and Reliance Infrastructure Limited (520.85 2.80%). 7 stocks slipped below their 200 SMA including Berger Paints (I) Limited (246.50 -2.91%) and ICRA Limited (3901.05 -2.45%).

Photo by Appaiah

The Baseline    
19 Jan 2018
Volume Shockers today: Cyient gains on results, ICICI Bank and Biocon up click to expand

Companies in the volume shockers today include Cyient, the midcap IT company that has risen to a two year high on strong December results. Trendlyne first highlighted the company in July 2017, when the firm was seeing promising order bookings in aerospace and defence. Other big stocks in the volume shockers include ICICI Bank, which is up by 2% in share price, as well as Kiroskar Oil and Biocon. For the full screener click here

Reliance Industries Limited (RIL)    
19 Jan 2018
The winner is the consumer: mudfight between telcos brings down average revenue per user click to expand

Africa is keeping Airtel in profit, as the company works hardin India  to match Reliance Jio's offerings. The result is bleeding all around -  Airtel has posted falling profit and revenue numbers for the seventh quarter in a row. Industry ARPU is lower than ever and falling. The ARPU (average revenue per user) in the industry has fallen to Rs. 123 from the already low Rs. 145 in the quarter ending September. ARPU had stood at Rs. 185 in June 2016. The reduction of IUC charges by TRAI - a move that Reliance supported while other telcos opposed - also took a hit on the company's revenues. 

Airtel, Vodafone and Idea have been matching Reliance Jio discount for discount, after Jio resumed the price war following a brief tarriff hike in October. Airtel has shown itself willing to sacrifice its India margins to retain its market share. How much is Reliance going to be willing to spend going forward? That is the many-billions-of-dollars-question: Reliance has already spent more than $31 billion to get a foothold in the market, and Moody's estimates that the company may have the wherewithal to spend at least $23 billion more.

However recent analysis from Jeffries and UBS noted that Reliance will not see significant cash flows from its newly commissioned petrochem projects, limiting how much it can provide its young new telecom business. Any remarks in this regard by Ambani today will get close attention. 

HDFC Securities released a Results Update report for Reliance Industries Limited (RIL) on 20 Jan, 2018.
Dolly Khanna    
19 Jan 2018
Dolly Khanna reportedly amps up investments in Prakash Industries, cuts it elsewhere click to expand

Prakash Industries has had quite a journey in the last six months - from being branded as a "shell company" by SEBI in August 2017, (which SEBI then retracted after re-examining the company) to becoming a hot favorite among superstar investors, including Rakesh Jhunjhunwala, Mukul Agrawal and now reportedly Dolly Khanna.

Media reports from insiders say that she has added Prakash Industries to her portfolio, although this has yet to be reflected in the shareholder filings. Khanna has cut some old favorites from her portfolio, including UP-based firm Dhampur Sugar, yarn company Nitin Spinners, and Sterling Tools and Thirumalai Chemicals. She has joined Ashish Kacholia in upping her stake in Butterfly Gandhimathi, and also bought more shares in Rain Industries and Gujarat Narmada Valley Fertilizers

The Baseline    
19 Jan 2018
Bulk deals for Jan 18: Arman Financial Services, Gammon Infra, Bannari Amman Spinning Mills click to expand

Arman Financial Services saw high volumes today on two bulk deals, where Reliance Mutual Fund sold 3.94 lakh shares and Param Capital bought 3.25 lakh shares.

Bannari Amman Spinning Mills saw a bulk deal purchase of 3 lakh shares by Shankar Resources. Investor Hiten Sheth sold 1.25 lakh shares.

Gammon Power sold 1 crore shares in Gammon Infrastructure

BP Fintrade bought 4.2 lakh shares of Prakash Constrowell

AKG Invest sold 25 lakh shares in DQ Entertainment

United Insurance continues selling of Shah Alloys, with another 1 lakh shares sold today in a bulk deal. General Insurance Corporation also sold 1.12 lakh shares.