Stocks slid at the open in Asia Friday, and U.S. futures dropped, after President Donald Trump announced a new round of tariff hikes on Chinese imports.
Japanese benchmarks fell more than 1.5 percent and Korean stocks dropped more than 1 percent in early trading, while Australian equities saw a more modest retreat. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.48 percent to 10,963.50 as of 7 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Here Are The Stocks To Watch Out For In Today’s Trade
- Talwalkars Better Value Fitness defaulted in the payment of term loan’s interest aggregating to Rs 94 lakh which was due on July 31.
- Talwalkars Healthclubs defaulted in payment of loan interest worth Rs 2.5 crore which was due on July 31.
- Coal India’s July production fell 5.1 percent to 38.5 million tonnes. July offtake declined 2.9 percent to 46.82 million tonnes.
- Power Grid Corporation of India was declared successful bidder to establish two transmission projects in Gujarat, Rajasthan, Haryana and Delhi.
- Dishman Carbogen Amcis’ manufacturing site in Switzerland received zero form 483 observations from the U.S. FDA’s pre-approval inspection. This facility develops and manufactures highly potent compounds.
- Adani Transmission received two Letter of Intent for Centre Sector Transmission projects in Rajasthan and Gujarat. On a combined basis both projects add 772 ckt kilometers of transmission lines and a 3,000 MVA transformation capacity.
- Dewan Housing Finance defaulted on two NCDs interest worth Rs 35 lakh which were due on July 31 and Aug. 1.
- Bank of India: RBI levied penalty of Rs 1.5 crore on the bank for non-compliance with the RBI guidelines on frauds in Rotomac Group case.
- Allahabad Bank: RBI levied penalty of Rs 2 crore on the bank for non-compliance of rules.
- Oriental Bank of Commerce RBI levied penalty of Rs 1 crore on the bank.
- JK Tyres & Industries’ board approved acquiring 26 percent stake in Treel Mobility Solution for Rs 6 crore. The company stated that the acquisition will help in synergizing the sensors business with Tyre business as a -added product offering to its customers.
- Tata Motors to cut prices of its Electronic Vehicle segment by up to Rs 80,000 from August, according to Bloomberg report.
- Quess Corp promoter company HWIC Asia Fund acquired 2.56 lakh shares on July 31.
- NALCO entered into a JV with Hindustan Copper and Mineral Exploration Corporation to develop strategic minerals overseas for supply to India for meeting domestic requirements and for sale to any other countries for commercial use.
- PSP Projects received project orders worth Rs 86.2 crore for institutional projects. The company has received work orders worth Rs 848.85 crore so far in the current financial year.
- Lakshmi Vilas Bank said that it has no exposure to Coffee Day Group.
- Vodafone Idea founder group IGH Holdings increased stake to 1.3 percent in the company.
- Dhunseri Tea and Industries entered into binding agreement with Tata Global Beverages for the sale of its branded business. In April, both parties had entered into a non-binding term sheet for the same transaction.
- SRF has signed a sale agreement of its engineering plastics business to DSM India with effect from Aug. 1.
- Bajaj Electricals: CARE Ratings downgraded credit rating of commercial paper worth Rs 500 crore from A1+ to A1 due to moderation in liquidity profile marked by large accumulation of receivables under engineering procurement commissioning division.
July Auto Sales
- Eicher Motors sales down 22 percent to 54,185 units versus 69,063 units.
- Tata Motors sales fell 34 percent year-on-year to 32,938 units
Nifty Earnings To Watch
- HDFC
- ITC
- State Bank of India
- Power Grid Corporation
Other Earnings To Watch
- Ujjivan Financial Services
- Nestle India
- INOX Leisure
- Laurus Labs
- Somany Ceramics
- Deepak Nitrite
- Dhampur Sugar Mills
- Exide Industries
- Bata India
- BEML
- Birla Corporation
- BSE
- V-Mart Retail
- Xpro India
- Camlin Fine Sciences
- Capri Global Capital
- ACRYSIL
- Aditya Birla Capital
- Alphageo
- Andhra Bank
- Elgi Equipments
- Filatex India
- Firstsource Solutions
- Godrej Agrovet
- Gujarat State Petronet
- Insecticides
- Kaya
- National Fertilizers
- Parag Milk Foods
- Rico Auto Industries
- Shriram Asset Management
- Sical Logistics
- Surya Roshni
- TCPL Packaging
- Union Bank of India
- Astral Poly Technik
- eClerx Services
- Elgi Equipments
- Equitas Holdings
- Fortis Malar Hospitals Limited
- GATI
- HUDCO
- IRB Infrastructure Developers
- Lumax Industries
- McDowell Holdings
- Tata Communications
Earnings Reaction To Watch
Bharti Airtel (Q1, QoQ)
- Revenue up 0.7 percent to Rs 20,738 crore.
- Net loss at Rs 2,866 crore versus net profit of Rs 107 crore.
- Ebitda up 25 percent to Rs 8,289 crore.
- margin at 40 percent versus 32.2 percent.
- ARPU at Rs 129 versus Rs 123.
Tata Power (Q1, YoY)
- Revenue up 6.2 percent to Rs 7,766.7 crore.
- Net profit down 90.9 percent to Rs 151.3 crore versus Rs 1,670.9 crore.
- Ebitda up 29.9 percent to Rs 2302.1 crore.
- Margin at 29.6 percent versus 24.2 percent.
- Net profit before exceptional items at Rs 254 crore versus Rs 252 crore.
- Other Income up 20 percent to Rs 108 crore.
- exceptional gain of Rs 1,897 crore in the base quarter due to gain on sale of investment in associates.
Prestige Estates Project (Q1, YoY)
- Revenue up 83.8 percent to Rs 1,538.7 crore.
- Net profit down 5.2 percent to Rs 115.3 crore versus Rs 121.6 crore.
- Ebitda up 2.1 times to Rs 527.7 crore.
- Margin at 34.3 percent versus 30.6 percent.
- Land cost of Rs 467.9 crore recognized in base quarter.
- Depreciation up 2.8 times to Rs 163.2 crore.
- Exceptional gain of Rs 38 crore versus Rs 89.4 crore.
GSK Consumer Healthcare (Q1, YoY)
- Revenue up 7.9 percent to Rs 1,194.3 crore.
- Net profit up 23.8 percent to Rs 248.1 crore versus Rs 200.4 crore.
- Ebitda up 21.8 percent to Rs 280.4.
- Margin at 23.5 percent versus 20.8 percent .
Raymond (Q1, YoY)
- Revenue up 14.7 percent to Rs 1,435.1 crore.
- Net loss at Rs 14.9 crore versus net profit of Rs 0.02 crore.
- Ebitda up 58.9 percent to Rs 109.5 crore.
- Margin at 7.6 percent versus 5.5 percent.
- Depreciation up 74 percent to Rs 81.3 crore.
- Finance cost up 40 percent to Rs 73.6 crore.
- Property development cost of Rs 57.5 crore in current quarter impacted bottomline numbers.
JK Tyre & Industries (Q1, YoY)
- Revenue up 5.6 percent to Rs 2,575.4 crore.
- Net profit down 73.6 percent to Rs 16.9 crore versus Rs 64.1 crore.
- Ebitda down 26.4 percent to Rs 239.6 crore versus Rs 325.5 crore.
- Margins at 9.3 percent versus 13.3 percent.
- RM as percent of sales at 66.6 percent versus 59.9 percent.
Bulk Deals
- Reliance Infra: KBC Equity Fund acquired 34.17 lakh shares or 1.32 percent equity at Rs 50.05 each.
- Lakshmi Vilas Bank: Eriska Investment Fund sold 20 lakh shares (0.63 percent) at Rs 46.33 each.
Trading Tweaks
- Jain Irrigation Systems to move into ASM Framework.
- Lakshmi Vilas Bank price band revised to 5 percent.
Stocks Moving Into Short-Term ASM Framework
- GTPL Hathway
- Orient Green Power
- Rane Engine Valve
- Sical Logistics
- GE T&D India
- Healthcare Global Enterprises
- JBM Auto
- LG Balakrishnan & Bros
- Bajaj Electricals
- ITD Cementation
- Muthoot Capital Services
- Magma Fincorp
- Balaji Amines
- Sasken Technologies
- Sadbhav Engineering
- Astec Lifesciences
- Gravita India
- Lakshmi Vilas Bank
- Future Consumer
- Navkar Corporation
- Shankara Building Products
- Avadh Sugar & Energy
- Khadim India
- Spencer's Retail
- Yuken India
- Coffee Day Enterprises
Stocks Moving Out Of Short-Term ASM Framework
- Jindal Worldwide
- Arshiya
- Pokarna
- HT Media
- LT Foods
- S Chand And Company
- Hubtown
Insider Trading
- Astec Lifesciences promoter Chitralekha Ashok Hiremath acquired 40,000 shares on July 29.
Brokerage Radar
On Godrej Consumer
CLSA
- Downgraded to ‘Underperform’ from ‘Buy’; cut price target to Rs 645 from Rs 800.
- Downgrading due to another earnings miss.
- Believe business may need time to stabilise and pick-up.
- Cut EPS estimates by 3-4 percent for FY20-21.
Macquarie
- Maintained ‘Outperform’ with a price target of Rs 762.
- June quarter’s operational performance broadly in line.
- Believe turnaround in India HI and Africa business is possible in 2019-20.
- Valuations factoring no significant turnaround.
On Marico
CLSA
- Maintained ‘Buy’; hiked price target to Rs 475 from Rs 465.
- Strong start to 2019-20 led by smart margin gains.
- Good Parachute, moderate VAHO and weak Saffola.
- Hike earnings estimates on higher margin expectations.
Macquarie
- Maintained ‘Outperform’ with a price target of Rs 412.
- Net profit was ahead of estimates on higher margins.
- Like the strategy of using a deflationary input cost environment to step-up investments.
- Marico is one of the top picks in consumer sector.
On Bharti Airtel
BofA Securities
- Maintained ‘Buy’ with a price target of Rs 400.
- June quarter review: once again good India cellular revenue growth.
- Divergence versus Vodafone Idea visible.
Morgan Stanley
- Maintained ‘Equal-weight’ with a price target of Rs 360.
- Indian wireless performance in line.
- 4G subscriber addition momentum was robust.
- Adjusted Ebitda of homes and business was better.
Citi
- Maintained ‘Buy’ with a price target of Rs 405.
- June quarter was operationally ahead; India mobile performance robust.
- Bharti’s superior execution is clearly driving an improvement in India mobile operations.
More Calls
Citi on Tata Power
- Maintained ‘Buy’ with a price target of Rs 76.
- June quarter review: Decent; net debt increased quarter-on-quarter and remains a monitorable.
- Adoption of IND AS-116 impact net profit negatively, though not very materially.
Nomura on Apollo Tyres
- Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 170 from Rs 247.
- June quarter was in line; demand outlook worsens.
- Sharp original equipment decline mars outlook despite healthy growth in replacement.