Opening Bell

August 13, 2021

Market Outlook Today’s Highlights

Indian markets are likely to open on a flat note on the back of Results: Glenmark, NCL , Maharashtra mixed global cues amid increasing Covid-19 risks and Seamless, MOIL, Petronet LNG, Jagran concerns over the recent regulatory crackdown in China. Prakashan, TCNS, , Suven, DB Corp, , Techno Electric,

ONGC, AIA Engineering, Time Techno, eClerx

Index Movement

Markets Yesterday 55000 17000 . Domestic markets ended higher tracking gains in IT and 52000 16000 select BFSI stocks 49000 15000 46000 14000 . US markets ended higher amid release of macro-economic 43000 13000 data 40000 12000

6-Aug 9-Aug 3-Aug

16-Jul 19-Jul 25-Jul 31-Jul 22-Jul 28-Jul

13-Jul 12-Aug BSE (LHS) NSE (RHS) Key Developments . CPI inflation in July came in at 5.59% compared to 6.26% Close Previous Chg (%) MTD(%) YTD(%) in June 2021. Lower food inflation at 3.96% in July against Sensex 54844 54,526 0.6 4.3 14.9 5.15% in June drive the headline print lower. The Nifty 16364.4 16,282 0.5 3.8 17.0

favourable base effect of vegetables within food is the Institutional Activity major reason for the low food inflation. MoM vegetable prices rose by 5.7% (second consecutive month of 5% CY19 CY20 YTD CY21 Yesterday Last 5 Days rise). Pulses and oil & fats started to decline. Fruits also FII (| cr) 40,893 64,379 13,018 -212 -518 contributed to lower food inflation. On negative side, meat DII (| cr) 44,478 -28,544 16,853 308 280 & fish and milk products saw higher print. In core, except footwear and recreation, all other items were lower or flat. World Indices – Monthly performance France BSE NSE Dow Jones U.K. MoM rise of 1.6% in transport and communication but favourable base led to lower print 6,882 54,844 16,364 35,500 7,193 4.9% 4.7% 4.3% 1.8% 1.0% Nasdaq Germany Kospi Shanghai Nikkei 14,816 15,938 3,208 3,525 28,015 0.9% 0.9% -1.2% -1.2% -2.5%

Nifty Heat Map 187 1,387 Tata 306 1,097 1,623 Power Grid TechM HCL Tech L&T Motors 6.0% 4.8% 3.6% 2.8% 2.5% 1,824 119 675 Tata 774 3,769 Titan NTPC HDFC Life 1.9% 1.9% 1.3% Consum 1.2% 1.1% 701 Bajaj 14,341 606 1,690 704 ICICI Bank Adani Ports Finserv 1.1% 1.0% 0.8% 0.7% 0.7% Markets Today (Not updated – Technical error) 1,435 Bajaj 6,200 1,501 777 1,788 HDFC Bank UPL Kotak Bank 0.6% Finance 0.5% 0.4% 0.4% 0.4% Commodities Close Previous Chng (%) MTD(%) YTD(%) Gold (|/10 gm) 45,885 45,886 0.0 -4.1 -8.5 2,669 Bharti 623 144 3,352 7,469 HDFC Ltd TCS Ultratech Silver (|/kg) 62,560 62,637 -0.1 -7.8 -8.1 0.4% Airtel 0.4% 0.3% 0.2% 0.2% Crude ($/barrel) 69.9 69.0 1.2 -8.4 34.9 Shree 26,593 437 209 Asian 2,976 2,392 Copper ($/tonne) 9,343 9,446 -1.1 -3.7 20.6 Hindalco ITC HUL Cement 0.2% 0.1% 0.1% Paints 0.1% 0.1% Currency USD/INR 74.4 74.6 -0.2 0.0 -1.8 2,783 749 Sun 779 1,134 3,621 Hero Moto JSW Steel SBI Life Britannia EUR/USD 1.2 1.2 -0.1 -1.2 -4.0 0.0% 0.0% Pharma -0.1% -0.1% -0.1% USD/YEN 110.5 110.7 -0.2 -0.7 -6.5 7,012 18,134 4,909 427 Reliance 2,111 ADRs Maruti Nestle Divis Lab SBI -0.1% -0.2% -0.2% -0.2% Ind. -0.3% HDFC Bank 75.2 74.0 1.6 6.5 4.0 ICICI Bank 19.2 19.0 0.7 3.0 28.9 776 448 757 905 104 M&M BPCL IOC 19.9 20.1 -1.2 1.0 57.7 -0.3% -0.4% -0.4% -0.5% -0.5% Infosys 22.9 22.8 0.3 3.4 35.0 Indusind 1,035 4,716 116 1,492 2,617 Dr Reddy ONGC Grasim Ind Eicher Dr Reddys Labs 64.5 64.4 0.1 3.0 -9.6 Bank -0.6% -0.6% -0.6% -0.7% -3.7% Wipro 8.5 8.5 0.1 1.9 50.3

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Key Data Points Exchange Cash Turnover (| crore) Key Economic Indicator Period Latest Prior Values 100000

RBI Cash Reserve Ratio N/A 4.00% 4.00%

67,893 63,604 63,068 63,858

57,244 55,989 RBI Repo Rate N/A 4.00% 4.00% 50000

RBI Reverse Repo Rate N/A 3.35% 3.35%

7,400

5,992

5,892

5,028 4,790 CPI YY Jul 5.59% 6.26% 4,337 0

Current Account Balance Q4 -8.1bln $ -2.2bln $ 5-Aug 6-Aug 9-Aug 10-Aug 11-Aug 12-Aug Exports - USD Jun 32.5 bln$ 32.3 bln$ BSE Cash NSE Cash FX Reserves, USD Final Jun 610 bln$ 598 bln$

GDP Quarterly yy Q4 1.60% 0.40% GDP Annual FY21 -7.30% 4.20% NSE Derivative Turnover (| crore) Imports - USD Jun 41.8 bln $ 38.6 bln $ 15000000 Industrial Output yy Jun 13.6% 29.3% Bell Opening

10000000 9,519,296

Manufacturing Output Jun 13.0% 34.5% 11,220,389

6,381,495 4,842,278

Trade Deficit Govt - USD Jun -9.4bln $ -6.3bln $ 4,145,176

5000000 3,142,137 WPI Food yy Jun 6.7% 8.1% WPI Fuel yy Jun 32.8% 37.6% 0 WPI Inflation yy Jun 12.1% 12.9% 5-Aug 6-Aug 9-Aug 10-Aug 11-Aug 12-Aug WPI Manuf Inflation yy Jun 10.9% 10.8% NSE Derivative

Corporate Action Tracker Sectoral Performance – Monthly Returns (%) (Not updated) Security name Action Ex Date Record Date Status Price (|) IT 8.1 Jagran Prakashan Buyback Ongoing Real Estate 7.6 Navneet Education Buyback Ongoing Metals 6.7 Banks 3.5 Infosys Buyback Ongoing Capital Goods 1.9 Balkrishna Indusries Dividend 12-Aug-21 14-Aug-21 4.00 Healthcare 1.9 Consumer Durables 1.7 Endurance Technologies Dividend 12-Aug-21 6.00 BSE Small Cap 0.7 Greenply Industries Dividend 12-Aug-21 0.40 FMCG 0.0 Dividend 12-Aug-21 3.00 BSE Midcap -0.2 Auto -1.9 JK Lakshmi Cement Dividend 12-Aug-21 3.75 PSU -2.0 Research Equity Retail

Munjal Showa Dividend 12-Aug-21 4.50 Oil & Gas -2.6 – Power -3.8 NGL Fine-Chem Dividend 12-Aug-21 1.75 -5.0 0.0 5.0 10.0 Suven Pharmaceuticals Dividend 13-Aug-21 17-Aug-21 1.00 (%)

ICICI Securities Key News for Today Company/I News View Impact ndustry Tata Steel Tata Steel’s consolidated topline for the Tata Steel reported a steady performance quarter was at |53372 crore (up 110% YoY, for Q1FY22 wherein consolidated topline, 7% QoQ), broadly in line with our estimate of EBITDA came in line with our estimates, | 51636 crore. Consolidated EBITDA for the while PAT was marginally higher than our quarter was at | 16111 crore (up 14% QoQ), estimate. Standalone operations reported in line with our estimate of | 16186 crore. an EBITDA/tonne of | 35190/tonne, higher Ensuing consolidated PAT for the quarter was than our estimate of | 33000/tonne at | 9768 crore, up 36% QoQ, higher than our (EBITDA/tonne of | 27775/tonne in Q4FY21 estimate of | 9136 crore and |5920/tonne in Q1FY21). European operations reported EBITDA/tonne of US$89/tonne, marginally lower than our expectation of US$100/tonne. Tata Steel BSL reported EBITDA/tonne of | 27856/tonne, broadly in line with our estimate of |27500/tonne

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Hero HMCL’s Q1FY22 revenues were down 36.8% The performance was muted and below MotoCorp QoQ to | 5,487 crore amid volume decline of our estimates. A 3.3% ASP decline on a (HMCL) 34.7% to 10.25 lakh units. EBITDA margins at QoQ basis is indicative of some pricing 9.4% were down 460 bps sequentially while pressure. While gross margins contracted PAT was down 57.7% QoQ to | 365 crore 210 bps QoQ, other expenses were well  controlled on percentage of sales basis at ~10%

Bharat BPCL’s topline was down 9.2% QoQ (up BPCL reported Q1FY22 results that were Petroleum 77.2% YoY on lower base) to | 89687.1 crore weaker than our estimates. As per our Corporatio as fuel demand reduced during the quarter understanding, overall marketing n (BPCL) due to second wave of Covid-19. Marketing segment's performance was broadly in line sales were at 9.6 MMT, down 13.8% QoQ, up with estimates on account of some 27.9% YoY. Reported GRMs were at improvement in margins QoQ. However, US$4.1/bbl. EBITDA was at | 3252.7 crore, GRMs are still subdued and affecting the down 35.7% QoQ. BPCL reported an refining performance. Improvement in exceptional loss of | 77.1 crore and other GRMs and recovery in fuel demand income was lower than expected. (mainly diesel) will be important for BPCL's Consequently, reported PAT was at | 1501.6 performance in the near term. Also, crore, down 87.4% QoQ as it had reported divestment process and its timeline will be exceptional gain of | 6993 crore in Q4FY21 the key monitorable NMDC For Q1FY22, NMDC reported topline of | 6512 NMDC reported an operationally healthy crore, up 236% YoY but down 5% QoQ. set of numbers for Q1FY22 wherein on the EBITDA for the quarter was at |4178 crore (up back of lower than expected increase in 453% YoY but down 2% QoQ) while ensuing operating costs, EBITDA, PAT were higher PAT for the quarter was at | 3193 crore (up than our estimate. EBITDA came in at 499% YoY, 13% QoQ) |4178 crore, higher than our estimate of | 3589 crore while PAT came in at | 3193 crore, higher than our estimate of | 2704  crore. EBITDA/tonne for Q1FY22 was at |4421/tonne, higher than our estimate of | 3750/tonne

Eicher EML posted relatively steady Q1FY22 results. Operational performance was better than Motors Consolidated revenues at | 1,974 crore were expected, with 7% QoQ RE ASP increase (EML) down 32.9% QoQ, with margins declining 319 to |1.52 lakh/unit and ~130 bps gross bps to 18.4% on negative operating leverage. margin expansion being key highlights. Consequent consolidated PAT was at |237 VECV losses, however, were far sharper crore. Share of losses from VECV JV came in than anticipated. Mr Dasari’s resignation at |39.4 crore for the quarter. Vinod Dasari, comes as a substantial negative surprise CEO of Royal Enfield (RE) would be stepping but Mr Govindarajan’s vast body of down from his role to pursue personal experience within the organisation interests, with COO of RE, B Govindarajan, set provides comfort to head RE as Executive Director

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Ashok ALL’s Q1FY22 operating income declined ALL posted a weak performance for the Leyland 57.8% QoQ to | 2,951 crore, slightly better quarter, with quantum of loss at EBITDA (ALL) than 59.2% volume decline to 17,987 units. and PAT level being a disappointment. EBITDA for the quarter was at negative | 140 ASPs rose 3.3% QoQ to | 16.4 lakh/unit crore against margins of 7.6% in Q4FY21. despite M&HCV:LCV mix deteriorating to Consequent loss after tax was at | 282 crore 50:50 vs. 60:40 in the previous quarter.  Margin performance was severely hurt by negative operating leverage with ~280 bps gross margin expansion being a silver lining

Gujarat GPPL reported its Q1FY22 results. While On the volume front, the company Pipavav revenues remained flat YoY to | 193 crore, reported 19% de-growth in container (GPPL) EBITDA de-grew 8% to | 88 crore, due to 498 volumes at 1.5 lakh TeUs but on the bulk bps contraction in EBITDA margins (55.1%). side it reported more than 60% YoY Subsequently, PAT de-grew 32%, as lower volumes to 0.7 MMT. However, liquid and operational performance was further RoRo volumes have yet to take off. The impacted by | 11 crore of exceptional management commentary regarding any  expense (certain repair of property, plant and certainty on its “concession agreement” equipment, damaged by Cyclone Tauktae) with GMB, remains a key trigger to watch

Matrimony Matrimony reported healthy set of Q1FY22 The company expects double digit growth numbers. Revenues increased 4.3% QoQ in revenues and EBITDA to continue from (21.5% YoY) to | 105 crore mainly led by Q2FY22E onwards. This coupled with aim 4.3% QoQ growth in matchmaking services. to improve market share in north, EBITDA margins increased from 17.1% to introduction of new products (like IIMIIT 21.1% mainly led by lower advertising matrimony) and inorganic opportunity expenses and other expenses. PAT increased (due to healthy cash) are expected to drive 36.5% QoQ and 47.6% YoY to | 13.8 crore revenues in the long term. Further, expectation of stable advertising expenses and operating leverage benefit are anticipated to lead to healthy margins

Hester Revenues grew 51% YoY to | 60.2 crore due Despite exports being impacted due to Bioscience to 50.2% growth in poultry segment to | 44.8 Covid, Hester posted steady result being s crore and animal healthcare segment, which partly offset by sequential decline in grew 95.7% YoY to | 15.4 crore. EBITDA poultry segment. Going ahead, margins declined 150 bps YoY to 28.4%, opportunities panning out from animal subsequently EBITDA came in at | 17.1 crore vaccines such as Classical Swine Fever, (up 43.4% YoY). PAT for the quarter came in Lumpy skin disease (only player) and at | 12.5 crore vs | 5.7 crore in Q1FY21 Sheep Pox (only player) in the domestic space besides increased focus on health products, growth prospects looks promising for Hester. As the company strengthens its hold in the overall animal healthcare space, the next important aspect would be its progress in the human vaccines space (via maiden Covaxin adjuvant foray) in the long run

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KNR KNR Constructions reported a healthy KNR’s order book (at the end of March Constructio performance during Q1FY22 with topline and 2021) was robust at | 11,441 crore (4.2x ns bottomline at standalone level beating our book to FY21 revenues). We currently estimates. Revenue improved 54.4% YoY to | have a positive outlook on KNR 740 crore, albeit on the washout base of Constructions considering a) strong Q1FY21. On QoQ basis, topline declined execution, b) elevated level of margins, c) 20.9% on account of lower labour efficiency best in class working capital cycle, d) amid Covid second wave. The company monetization of BOT/HAM assets, e)  continued to deliver industry leading EBITDA healthy balance sheet, and f) strong return margin at 19.4%. PAT improved 83.5% YoY ratios growth (to | 73 crore) backed by benign interest and depreciation expenses

Minda For Q1FY22, MCL posted 29.7% QoQ revenue The topline performance was better than Corporatio decline to |559 crore while margins slid by sequential volume decline recorded by the n (MCL) 570 bps sequentially to 5.5%. Consolidated OEM industry during the quarter. Margin PAT for the quarter at| 7.1 crore was lower by reading was bore the impact of negative 45% QoQ operating leverage as gross margins rose by 80 bps QoQ. Sharp PAT decline was despite large exceptional charge of | 42 crore booked in the previous quarter. A positive development was the company’s receipt of EV-specific lifetime orders of | 238 crore during the quarter

Goodyear GYI’s net sales dipped 6.2% QoQ to | 534 In line with other tyre players, topline India (GYI) crore in Q1FY22. EBITDA margins came in at decline for GYI was limited despite Covid- 8.4%, down ~340 bps sequentially. PAT for 19 second wave impact on account of high the quarter was down 37.8% QoQ to | 27 exposure to the aftermarket channel. crore Margin performance was creditable as gross margin depletion was limited to ~140 bps

Page reported a steady operational New initiatives (focus on kids wear Industries performance despite a challenging quarter. segment, implementation of auto On a low base, the company reported replenishment system, new launches in revenue growth of 76% YoY to | 501.4 crore athleisure wear and thrust on increasing (I-direct estimate: | 459.1 crore, recovery penetration in rural areas) to propel sales rate: ~60%). Gross margins remained and earnings growth. Continues to have constant QoQ (up 963 bps YoY) to 57.7% (I- healthy balance sheet with robust liquidity direct estimate: 55.0%). However, owing to position (| 327 crore) and strong RoCE of negative operating leverage, EBITDA margins 55%+. came in at 6.8% (I-direct estimate: 4%, Q4FY21: 19.3%, Q1FY21: -12.2%). PAT was at | 10.9 crore (Q4FY21: | 115.6 crore, Q1FY21: (-) | 39.6 crore)

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Gulf Oil Gulf Oil Lubricants' revenue increased 73.1% While we await sales volume data, the Lubricants YoY (and down 19.3% QoQ) to | 417.4 crore sales volume was impacted QoQ by in Q1FY22. Gross margin was | 169.4 crore second wave of Covid-19. While B2B against | 110.5 crore in Q1FY22. EBITDA demand was relatively better, retail jumped 65.7% YoY to | 42.1 crore leading to segment sales were down QoQ.Agri and reported PAT of | 30.4 crore, up 76.7% YoY rural demand was more impacted on a (and down 49.2% QoQ) YoY basis. Personal mobility and CVO reported growth YoY. The company has seen demand pickup since June onwards. However, increase in raw material costs led to reduction in gross margins and is likely to affect the margins in near term. Sustained growth in volume and margins will be important, going ahead

Aurobindo Aurobindo Pharmaceuticals’ Q1FY22 Quarterly fluctuations notwithstanding, operational performance was below I-direct Aurobindo possesses one of the best estimates amid decline across US market & enduring generics ecosystem among ARVs whereas PAT was in line with estimates peers (vertically integrated model, lower amid higher than expected other income and product concentration) to withstand the a lower tax rate. Revenues de-grew 3.8% YoY volatility in the US generics space. The to | 5702 crore (I-direct estimate: | 6233 company has also significantly improved crore) tracking a 13.7% YoY decline in US its net debt position from foregoing the business to | 2681 crore (I-direct estimate | Sandoz deal and from the sale of its Natrol 2965 crore) partially offset by 19.7% YoY business. On the regulatory front, while a growth in Europe formulations to | 1582 few other plants still remain under the crore (I-direct estimate: | 1624 crore) & USFDA scrutiny, the erstwhile clearance of growth of 13.7% YoY in RoW markets to | a critical plant (Unit IV) indicates that the 329 crore (I-direct estimate | 347 crore). On company continues to work towards the other hand, ARV segment de-grew 30.3% stricter adherence. We will be revisiting YoY to | 296 crore (I-direct estimate | 489 our estimates after the conference call crore) while API segment grew 4.1% YoY to | 811 crore (I-direct estimate | 795 crore). EBITDA margins remained flat, down 1 bps YoY at 21.2% (I-direct estimate: 20.7%). EBITDA de-grew 3.8% YoY to | 1209 crore against I-direct estimates of | 1292 crore. Adjusted PAT de-grew 1.4% YoY to | 770 crore (I-direct estimate: | 767 crore) in line with operational performance, higher other income and lower tax rate

Natco Natco’s Q1FY22 revenues de-grew 27.2% Q1FY22 results were lower than I-direct YoY to | 410.3 crore due to decline export and consensus estimates on all fronts due formulations (declined 47% YoY to | 145.4 to weak export business although partially crore) & APIs which declined 57.2% YoY to | offset by surge in domestic sales due to 61.6 crore. Domestic formulations posted covid. However, the company expects strong growth of 60.1% YoY to | 201.1 crore growth in FY22 due to few high value due to sales of covid portfolio. EBITDA launches in the US, continued grwoth in margins contracted 361 bps YoY to 26.8% domestic formulations with new products and EBITDA declined 35.8% YoY to | 109.8 and contribution from Crop Health crore. Ensuring net profit declined 38.9% YoY division. to | 75 crore.

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Healthcare Healthcare Global’s (HCG) Q1FY22 revenues While revenues improved, bottomline was Global grew 67% YoY, 8.4% QoQ to | 323 crore lower than expected mainly due to lower while EBITDA margins improved 701 bps than expected gross margins. YoY, 253 bps QoQ to 16%. Ensuing EBITDA Normalisation of OPD/IPD inflow is likely grew 196.8% YoY, 28.7% QoQ to | 51.8 to improve operational leverage, going crore. The company has reported exceptional forward. HCG, with its integrated, one-stop- impairment charges of | 13 crore. Net loss for solution and focused model, is well poised the quarter was at | 12.5 crore against | 39.8 to capture the growing potential with pan- crore & | 16.6 crore in Q1FY21 & Q4FY21, India focus on cancer therapy. However, respectively. Shrinkage of losses mainly due weaker return ratio profile still remains a to improvement in operational performance key concern for the stock. We will come out with further update post management conference call

Key developments (Continued…)

 Index of industrial production (IIP) grew 13.6% YoY in June 2021 (on a lower base) as opposed to an increase of 28.6% in May 2021. Manufacturing sector grew 13% YoY. Mining and power output grew 23.1% and 8.3% YoY respectively. Under use-based segments, Capital goods increased 25.7% YoY. Consumer durables grew 30.1% YoY while consumer non-durables de-grew 4.5% YoY. IIP during April-June 2021 showed a sharp growth of 45% YoY as the IIP was impacted by nationwide lockdown during the corresponding period a year ago  ONGC’s oil production is expected to decline 5% YoY and 3.1% QoQ in Q1FY22. Gas production is estimated to fall 4.4% YoY and 5.1% QoQ. Oil production is estimated at 5.4 MMT while gas output expected at 5.3 MMT in the quarter. We expect sharp increase in realisations YoY as well as QoQ to $ 67.1/bbl due to higher average crude oil prices. Hence, we expect PAT of ₹ 4184 crore, up 743.6% YoY. PAT is expected to decline 37.9% QoQ as exceptional gains of | 2613 crore as well as higher other income was reported in Q4FY21  For Q1FY22E, we expect 's revenues to be impacted due to second Covid wave. We expect revenues to decline 1.3% QoQ to | 286 crore mainly led by 2% QoQ decline in recruitment revenues and 4% decline in 99 Acres partially offset by 5% QoQ increase in other revenues (mainly led by Jeevansathi). We expect margins to be flat QoQ at 18.3%. Key things to watch in Monday’s conference call are recovery of key verticals post second wave, acquisition via fund raising, update on venture fund and update on Zomato, Policybazaar & other new investments  Indraprastha Gas’ (IGL) volumes are expected to increase 108.1% YoY in Q1FY22. However, a decline of 17.2% QoQ is estimated. Total volumes are expected at 5.6 mmscmd (CNG: 3.9 mmscmd, PNG: 1.8 mmscmd). We expect gross margins to increase by ₹ 0.4/scm YoY to ₹ 13.9/scm due to higher realisation as well as lower gas prices. Margins will increase | 0.4/scm QoQ due to higher realisation. EBITDA/scm is expected at ₹ 8.1 per scm, up ₹ 4.7/scm YoY. Consequently, PAT is estimated at ₹ 280.9 crore, up 782.3% YoY and down 15.1% QoQ  We expect Petronet LNG’s topline to increase 61.8% YoY to ₹ 7899.8 crore in Q1FY22. Total volumes are expected to be 7.9% higher YoY at 205 trillion British thermal units (tbtu) (~4 MMT) on account of higher sales volume. On QoQ basis, volumes will decline 6%. Blended margins are expected at | 57.5/mmbtu, up 4.3% YoY and down 3.1% QoQ. PAT is expected to increase 14.1% YoY to ₹ 593.7 crore. On QoQ basis, profitability is expected to fall 4.8% as blended margins decline from higher levels seen in previous quarters  Despite restructuring in pharmacy, Apollo Hospital’s overall revenues is likely to grow ~28% YoY to | 2772.3 crore, mainly due to strong growth in hospital segment albeit on lower base. EBITDA margins are likely to be at 13.8% against 1.6%/14.4% Q1FY21/Q4FY21. Net profit is expected to be ~| 140.2 crore against loss of | 208 crore in Q1FY21  Sun TV to report Q1 numbers today. We expect ad revenues to increase 105% YoY on a washout base but down 18% QoQ, owing to second wave impact. Subscription revenues are expected to be flattish YoY but up 3.5% QoQ driven by SunNxt. We bake in IPL revenues of | 130 crore. We expect ex- IPL EBITDA margins at 66%, down 390 bps QoQ, owing to negative operating leverage. Key Monitorable: Tamil market viewership, SunNXT traction  TV Today is expected to report TV broadcasting revenue growth of ~16% YoY to | 160.2 crore but down ~9% sequentially on a muted ad environment amid second wave. Radio business is estimated to be flattish QoQ at | 2.5 crore. Digital revenues are expected to maintain growth trajectory and grow 25% YoY (flattish QoQ). We expect EBITDA of | 45.7 crore with EBITDA margin of 23.2% for the quarter (flattish QoQ). Key Monitorable: TV broadcasting revenue growth, digital revenue growth

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’s revenue jumped 72% YoY to | 3007 crore in Q1FY22 due to better oil realisation. Oil production during the quarter was 0.7 MMT while gas production was 0.7 BCM. EBITDA was at | 1233.1 crore, up 525% YoY. Subsequently, reported PAT stood at | 507.9 crore against net loss of | 248.6 crore on Q1FY21  ’s Q1FY22 results were strong across key operational parameters. Standalone net sales rose by 4.9% QoQ to ₹ 1,372 crore despite 4.2% tonnage de-growth to 53,512 MT, with 25.3% jump in exports leading the increase. Among segments, industrial segment posted 29% growth in revenues. Standalone margins at 28.5% were up 105 bps QoQ on account of ~230 bps gross margin expansion and favourable product mix. Reported standalone PAT stood at ₹166.6 crore post exceptional charges of ₹61.6 crore related to VRS compensation for employees at Chakan, Pune  For Q1FY22, Midhani consolidated operations reported a topline of |114 crore, down 67% QoQ. Consolidated EBITDA for the quarter stood at | 26 crore as compared to | 6 crores in Q1FY21 & |103 crores in Q4FY21, while EBITDA margin for the quarter stood at 22.4% as compared to 5.1% in Q1FY21 & 29.8% in Q4FY21. Ensuing consolidated PAT for the quarter stood at | 19 crore  Sanghi Industries reported revenue de-growth of 14% QoQ to | 281.9 crore. EBITDA margins also declined 500bps QoQ to 23.5%. While PBT was down 47% QoQ, PAT was down only 10% to | 22.3 crore due to tax adjustments  Ineos Styrolution India's revenue fell 29% QoQ to | 454.7 crore in Q1FY22. EBITDA was at | 126.3 crore, down 44% QoQ as lower demand during thr quarter affected the performance. Subsequently,PAT stood at | 86 crore, down 47% QoQ  Redington reported Q1FY22 numbers. The company’s revenues declined 13.2% QoQ to | 13,474 crore. EBITDA margin declined 50 bps QoQ to 2.4%. Consequently PAT declined 21.8% QoQ to | 237 crore  As per latest RBI data, Bank credit grew by 6.11% YoY to |109.1 lakh crore and deposits by 9.8% YoY to |155.4 lakh crore in the fortnight ended July 30,2021. In the previous fortnight ended July 16, 2021, bank credit increased by 6.45% YoY and deposits by 10.65% YoY  Cipla has received USFDA final approval for ANDA Difluprednate Ophthalmic Emulsion 0.05% (Generic for Durezo of Novartis). The drug is indicated for treatment of inflammation and pain associated with ocular surgery & endogenous anterior uveitis. It has an estimated market size of US$106 million (IQVIA, June 2021)  As per media reports (financial express), government is readying a national monetisation plan of ~ | 6 lakh crore, which will include a range of assets including pipelines, power transmission lines and national highway stretches (12 bundles of highways of 6,000 km by 2024 to raise up to | 60,000 crore via TOT route). Private sector participation is also sought in the running of 150 passenger trains and redevelopment of 50 railway stations. Monetisation of assets including land is seen to give a big boost to the government’s non-dent receipts and help consolidate its fiscal position  DCB Bank has received RBI nod to conduct government related transactions. Through this arrangement, DCB Bank will carry out specific banking services on behalf of both the central and state governments, while continuing to offer SME, micro-SME and individual customers the convenience of routine financial transactions through its advanced banking platform, as reported in financial express  Domestic airlines are now allowed to operate with 72.5% of capacity vs 65% of capacity earlier which bodes well for SpiceJet and Indigo Airlines  has entered into an agreement to buy 51% stake in Cronus for | 420 crore. Cronus is a Hyderabad based generic veterinary pharmaceutical products company engaged in development, manufacturing and sale of veterinary pharmaceutical products for regulated markets and CRO services. It has 67 products in its pipeline, of which 22 have been filed and 6 approved by the Centre for Veterinary Medicine, USFDA. This acquisition will provide Aurobindo entry into the US$48 billion global animal health market  IDFC First Bank has signed of a Memorandum of Understanding (MoU) with the Indian Navy to offer Honour FIRST, a premium banking solution, to serving personnel and veterans of the Indian Navy as reported in financial express  Two five star hotel properties in Pune in Bund garden and Hinjewadi are up for sale due to severe cash crunch

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Nifty Daily Chart Technical Outlook

The index concluded weekly expiry session on a buoyant note amid firm global cues. The Nifty settled at 16364, up 82 points or 0.5%. In the coming session, we expect index to resolve higher while maintaining a higher high-low formation. Hence use intraday dips towards 16310-16335 to create long for target of 16423. Going ahead, we expect index to extend the ongoing upward momentum and gradually head towards our earmarked target of 16600 in coming weeks. The multi sector participation backed by improving market breadth signifies rejuvenation of upward momentum after past five sessions shallow retracement wherein index retraced preceding six session gains by just 23%. Meanwhile, banknifty is also undergoing slower pace of retracement, highlighting healthy consolidation. We believe, the revived traction in banking along with IT, Telecom and metals (which represent over 50% weightage in Nifty) would drive Nifty towards 16600 as it is 138.2% extension of mid-June rally (15450-15915) projected from June high of 15915 is placed at 16575

Pivot Points CNX Nifty Technical Picture

Index/Stocks Trend Close S1 S2 R1 R2 Nifty 50 Intraday Short Term SENSEX Positive 54844.0 54630 54415 54967 55089 Trend Up Up Nifty 50 Positive 16364.4 16309 16253 16397 16431 Support 16310-16270 15900 AARTI INDUS LTD Neutral 926.6 919 912 936 944 Resistance 16400-16450 16600 LTD Neutral 2975.5 2961 2946 2988 3000 20 day EMA 0 16053 GODREJ PROPERTIE Positive 1557.0 1530 1501 1577 1597 200 day EMA 0 14557 SBI Neutral 427.2 426 423 431 433 GRANULES INDIA Positive 372.5 366 358 380 386 Advances/Declines INDIA Positive 948.9 920 892 974 1000 Tata Motors Positive 306.0 301 294 311 314 Advances Declines Unchanged JSW STEEL LTD Positive 748.9 742 735 755 761 BSE 2314 898 114 BHARAT HEAVY ELE Positive 55.9 56 54 58 58 NSE 1598 413 49 TCS Neutral 3351.8 3330 3307 3372 3391 HERO MOTOCORP LT Neutral 2783.0 2771 2760 2797 2812 Daily Technical Calls CONTAINER CORP Positive 673.0 658 644 685 698 Daily Technical Calls MAHINDRA & MAHIN Positive 776.2 769 761 790 803 1. Buy Tata Motors in the range of 306.00-308.00 Positive 2110.5 2102 2093 2123 2135 1. Buy in the range of 2760.00-2765.00 AUROBINDO PHARMA Negative 826.2 812 796 854 880 All recommendations of July Future COAL INDIA LTD Positive 144.4 143 142 146 148 See Momentum Pick for more details

Nifty Call – Put Strike (Number of shares in lakh) – August, 2021 Intraday Derivative Strategy i) Titan Buy TITIND August Fut at | 1825.00-1827.00 CMP: 1825.40 Target 1: 1850 Target 2: 1886 Stop Loss: 1802

ii) Motherson Sumi Sell MOTSUM August Fut at | 223.50-224.00 CMP: 224.40 Target 1: 221.2 Target 2: 217.3 Stop Loss: 226.3

See Derivatives view for more details

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Results/Events Calendar

26 July 27 July 28 July 29 July 30 July 31 July Monday Tuesday Wednesday Thursday Friday Saturday Navin Fluorine,Vedanta Ltd. Dr.Reddy's,KPR Mill, IndusInd Bank Intellect,, Wabco Firstsource,Dwarikesh,JyothyLab , IOC, Gokaldas, Finolex, KEC IDFC First Bank Ltd. Zensar,TataMotors,L&T Oriental Hotels,Torrent Pharma Nestle,, Birlasoft TechMahi,AjantaPhrma, Jindal SH , BHEL, PI Industries Sarda Energy & Minerals Ltd. Axis Bank Ltd.,Alembic, SBI Life GM Breweries, VST Ind, Filatex JM Financial Ltd.,Sagar Cement TVS Motors,IndusTwrs,Colgate,PVR Nerolac,Zydus,Vguard,Sunteck,ABFLD-Link India, Relaxo Footwear M&M FinServ, Jindal Stainless Ltd. TTK Prestige, Anup Engineering TCI Express, Nestle, Moldtek Pack Laurus Labs, MRPL, Concor, MOSL Bluedart,Jindal SAW, Vinati Organics , ApolloPipe Granules,, DixonTech Teamlease, LICHousing, ShoppersStop, Hawkins ,Sunflag,Dalmia Sugar KEI Ind, Surya Roshni

02 August 03 August 04 August 05 August 06 August 07 August Monday Tuesday Wednesday Thursday Friday Saturday Castro, HDFC Ltd, OrientCem TATA Consumer, TATA Steel BSL Bosch,Sumitmo,AdaniTotlGs,Titan Escorts,GAIL,Thermax Hindalco, Bharat Ele, Abbott,TajGVK HindusthanCopper,Divis,NeogenChe Kalyani Steel Ltd., Indo Count, Kajaria, Everest Ind ChamblFerti,GodrejCon,ApolloTyres Ipca, Ador Welding, Hikal,Birla corp SudarshanChem,Berger,Zee,JKTyre , Amber Ent, CUB Avadh Sugar, Elgi Equipments, Kakatiya, HPCL,Butterfly Gandhimati,BlueStar Cipla,NCC,Accelya,Brigade,CaplinPt , Huhtamki, GraphiteInd,M&M Affle,NRBBearings, DCB Bank US UK EU - Manufacturing PMI Inox, , Pratap Snacks Gabriel,MayurUni,BharatForge, SBI Quess Corp, Bajaj Cons, Guj Gas Astral,NatAluminium,ArvindFashion QuickHeal, AdvancedEnzyme IN Imp/Exp, TradeBal, Manu PMI JPY Services PMI Tata Comm, HG Infra, Srikalahasthi Narayana Hrudayalaya, Somany AartiIndus,Phoenix,PPAP Auto,SAIL CH Trade Bal IMP/EXP Forex

09 August 10 August 11 August 12 August 13 August 14 August Monday Tuesday Wednesday Thursday Friday Saturday ShreeCem, GSPL , Ashoka Buildcon, CoalInd Pidilite,PNCInfra, Cadila, Aster DM HeroMoto,EsabInd,BPCL,MindaCorp NCLInd,MaharashtraSeamless,MOIL JKCement, Sobha Shankara Building Products CAMS, Pricol, PowerGrid,Siemen Indoco Remidies, Nesco, VIP Indus AshokLeyland,GujSidhee,TATASteel PetronetLNG,JagranPrakshan,TCNS Minda Inds Balrampur chini Motherson Sumi, Lupin, Vmart Bata, Greaves Cotton, Navneet MishraDhatu,NMDC,KNR,GulfOilLub ApolloHos,Glenmark,Suven, DBCorp Shalby Century Ply, Wonderla,Siyaram HEG, Bajaj Ele, Wimplast, Rupa PageInd,GujPipavav,Natco,EicherM Indraprastha Gas,TechnoEle,ONGC InfoEdge Man Industries Jindal Pwr&Steel CESC, HEG AurobindoPhar,HesterBio,Engg. Ind AIA Engg., TimeTechnoplast,Eclerx Triveni Eng.,

16 August 17 August 18 August 19 August 20 August 21 August Monday Tuesday Wednesday Thursday Friday Saturday 0 0 0 0 0 0 0 US Retail Sales 0 0 0 0 IN WPI Food Fuel Inflation, Imp/Exp Industrial/Manufacturing Production 0 0 0 0 US NY Empire State Manu Index EU Unemployment Rate, GDP GB CPI, RPI, PPI 0 0 0 US Overall Net Capital Flow GB Unemployment Rate US Housing Stats EU Current Account GB Retail Sales 0

23 August 24 August 25 August 26 August 27 August 28 August Monday Tuesday Wednesday Thursday Friday Saturday 0 0 0 0 0 0 0 0 0 0 0 0 US Existing Home Sales 0 0 0 0 0 US Manu Composite Service PMI 0 0 JP CPI 0 0 EU Manu Composite Service PMI US New Home Sales 0 US GDP (QoQ) US Goods Trade Balance 0

Major Economic Events this Week Result Preview

Date Event Country Period Actual Expected Company Revenue Chg(%) EBITDA Chg(%) PAT Chg(%) | Crore Q1FY22E YoY QoQ Q1FY22E YoY QoQ Q1FY22E YoY QoQ 11-Aug M3 Money Supply IN Aug 9.90% - Petronet LNG 7,899.8 61.8 4.3 985.1 8.3 -9.7 593.7 14.1 -4.8 11-Aug Core CPI (MoM) US Jul 0.3% 0.4% ONGC 22,219.3 70.8 4.9 11,256.8 90.5 11.2 4,184.0 743.6 -37.9 11-Aug Crude Oil Inventories US Jul -0.447M -1.271M Indrprstha Gas 1,329.9 108.3 -14.2 415.7 398.3 -15.5 280.9 782.3 -15.1 12-Aug CPI (YOY) IN Jul 5.6% 5.8% AIA Engg. 652.5 12.4 -24.1 130.5 5.7 -22.9 111.8 -13.7 -16.4 12-Aug Cum. Industrial Product IN Jun 45.0% - Apollo Hosp. 2,772.3 27.7 -3.3 383.6 981.2 -6.9 140.2 -167.4 -6.7 12-Aug Industrial Production IN Jun 13.6% 13.5% 12-Aug Manufacturing OP(MoM) IN Jun 13.00% - 12-Aug GDP (YoY) GB Q2 22.20% 22.10% 12-Aug Trade Balance GB Jun -11.99B -9.10B 12-Aug Manu Production (MoM) GB Jun 0.20% 0.40% 12-Aug Initial Jobless Claims US Jul 375K 375K 12-Aug PPI (MoM) US Jul 1.00% 0.60% Date Event Country Period Expected Previous Recent Releases 13-Aug Bank Loan Growth IN Jul - 6.50% Date Report 13-Aug Deposit Growth IN Jul - 10.70% 13-Aug FX Reserves, USD IN Jul - 620.58B July 19,2021 Result Update- Siyaram Silk Mills 13-Aug Imports USD IN Jul - 46.40B July 17,2021 Result Update- SBI Cards and Payments 13-Aug Trade Balance IN Jul -11.22B -11.23B July 17,2021 Result Update – Bajaj Electricals 13-Aug Exports USD IN Jul - 35.17B July 16,2021 Result Update- VIP Industries 13-Aug Trade Balance EU Jun - 7.5B July 16,2021 Result Update- Lupin

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V

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) Mumbai – 400 093 [email protected]

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