Stocks To Watch: Bajaj Finance, HPCL, UPL, NTPC, Tata Motors

The Singapore-traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India gained 0.35 percent to 9,910

Here are the stocks to watch out for in today’s session:

• NTPC: Government to sell 41.22 crore shares or 5 percent stake in company via offer for sale. Floor price set at Rs 168 per share.
• Century Plyboards: Acquired additional 2 percent in Huesoulin wood processing factory increasing holding to 51 percent
• Magma Fincorp: Acquires 26 percent stake in Magma ITL Finance from International Tractors Ltd.
• Infosys: Company informed that some members of the promoter and promoter group may participate in the proposed buyback
• Vijaya Bank: Bank opened QIP. Floor price of Rs 66.36 per share
• Jaypee Power: Lenders of Jaypee Power seek bids for 30 percent stake dilution (PTI report)

The Nifty Rejig

Bulk Deals

Thyrocare Technologies:

• Reliance MF bought 11.30 lakh shares or 2.1 percent stake at Rs 670 each
• Birla Sun Life MF bought 10 lakh shares or 1.9 percent stake at Rs 670 each
• Norwest Venture Partners VII A. Mauritius sold 50 lakh shares or 9.3 percent stake at Rs 670.44 each
• Reliance MF Pharma Fund bought 5 lakh shares or 0.9 percent stake
• Reliance MF Tax saver ELSS Fund bought 6.30 lakh shares or 1.2 percent stake

Talwalkars Fitness:

• Promoter Talwalkar Girish Madhukar sold 8.20 lakh shares or 2.8 percent stake through multiple transactions
• Shivanand Shankar Mankekar (HUF) bought 3.80 lakh shares or 1.3 percent stake at Rs 282 each.

Sarla Performance Fibers:

• Promoters Satidham Industries ltd bought 10 lakh shares or 1.2 percent stake at Rs 46.96 each. It had bought 5 lakh shares on August 24
• Hindustan Cotton Company sold 10 lakh shares or 1.2 percent stake at Rs 46.94 each. It had sold 5 lakh shares on August 24

Dion Global Solutions:

• Cresta Fund Ltd sold 5.35 lakh shares or 1.7 percent stake at Rs 51.4 each
• Ralph James Horne bought 5.35 lakH shares or 1.7 percent stake at Rs 51.4 each

Onward Technologies: Kuber India Fund bought 1.1 lakh shares or 0.7 percent stake at Rs 105 each

F&O Setup

• Nifty August Futures premium moves to 4 points from 16 points
• Nifty rollover at 18 percent and Bank Nifty rollover at 27 percent
• Highest call base at 10,000 strike with 58 lakh shares
• Highest put base at 9800 strike with 65 lakh shares (open interest up 7 percent)
• Unwinding seen on call strikes 9800, 9850 strikes & open interest addition seen on 9900 & 9950 call strikes
• Open interest Addition seen put strikes 9800, 9850, 9900, 9950
• September series maximum open interest concentration at 10000 call & 9700 put
• All data points are of August series unless mentioned otherwise

Active Stock Futures

• Nestle sees open interest addition of 40 percent on long side
• L&TFH sees open interest addition of 17 percent on long side
• Ramco Cement sees open interest addition of 16 percent on long side
• Adani Ent sees open interest addition of 9 percent on long side
• Dr Reddy sees open interest addition of 5 percent on short side
• Infy sees open interest shedding of 10 percent, short covering seen
• DLF sees open interest shedding of 11 percent, long unwinding seen

F&O Ban

• BEML
• GMR Infra
• HDIL
• Indiabulls Real Estate
• India Cement
• JP Associates
• JSW Energy
• Justdial
• Reliance Capital New

Earnings To Watch

• Dharamsi Morarji Chemicals
• Dhunseri Tea
• JHS Svendgaard
• KEI Industries
• Minda Industries

Earnings Reaction To Watch

Camlin Fine (Q1, YoY)

• Revenue down 2.1 percent to Rs 140 crore
• EBITDA margin contracted to (8 percent) from 11.6 percent
• Net loss of Rs 11 crore from a profit of Rs 3 crore

Suryalakshmi Cotton Mills (Q1, YoY)

• Revenue down 9 percent to Rs 172 crore
• EBITDA halved to Rs 13.5 crore
• Margins narrowed to 7.8 percent from 14.3 percent
• Profit fell 93 percent to Rs 0.5 crore

Rajshree Sugars (Q1, YoY)

• Revenue up 47.6 percent to Rs 211 crore
• EBITDA fell 34.3 percent to Rs 22 crore
• Margins narrowed to 10.9 percent from 33.5 percent
• Profit up 140 percent to Rs 18 crore

8K Miles (Q1, QoQ)

• Revenue up 16.8 percent to Rs 195 crore
• EBITDA grew 7.6 percent to Rs 64 crore
• Margins narrowed to 32.8 percent from 35.6 percent
• Profit went up 11.8 percent to Rs 38 crore

Sayaji Hotels (Q1, YoY)

• Revenue up 26.6 percent to Rs 40.5 crore
• EBITDA up 37.5 percent to Rs 5.5 crore
• Margins expanded to 13.6 percent from 12.5 percent
• Net loss widened to Rs 5 crore from Rs 4 crore.

NGL Fine Chem (Q1, YoY)

• Revenue fell 8 percent to Rs 23 crore
• EBITDA fell 66.7 percent to Rs 2 crore
• Margins at 9.5 percent from 25 percent
• Profit fell 60 percent to Rs 1.6 crore

Virinchi (Q1, YoY)

• Revenue up 51 percent to Rs 84 crore
• EBITDA up 124.5 percent to Rs 22 crire
• Margins expanded to 26.2 percent from 17.7 percent
• Profit grew 75 percent to Rs 7 crore

Brokerage Radar

Glenmark Pharma

• Nomura maintained Buy, however, reducing target price to Rs 856 from Rs 966.
• Cut EPS estimates for FY18/19 by 22 percent/27 percent.
• The drugmaker has interesting product opportunities; timely approval and launch remains key.
• India business to sustain growth, U.S revenues to remain under pressure and R&D at elevated levels.

FMCG Sector

• Credit Suisse said that the stock performance over next 2-3 years depends on innovation success, distribution expansion and competitive intensity.
• Near term, the critical factor will be a strong volume recovery in H2FY18.
• Stock valuations are stretched, P/E expansion is largely due to the falling interest rate.

Consumer Durables

• Motilal Oswal maintained that restocking picked up in August post a weak July.
• No price hikes in AC; price hikes in the range of Rs 150-500 for washing machine/refrigerator.
• Voltas’ share in inverter ACs is still quite low.
• Symphony still highest selling brand in air coolers, followed by Bajaj and Orient.
• Sell rating on Voltas; Neutral rating on Blue Star.