Stocks To Watch: Bandhan Bank, Dr. Reddy’s, Havells, Kotak Mahindra Bank, Maruti Suzuki, Nestle India, Vedanta

The risk-off sentiment that’s crept back into global markets took hold further on Wednesday as Asian stocks opened lower with U.S. equity futures following warnings on the fragility of the economic recovery. Treasuries held on to gains. S&P 500 futures fell about 0.8 percent. Japanese shares fell along with those in Sydney and Seoul.

Here are the stocks to watch in trade today:

• Vedanta: Promoter Vedanta Resources to meet on May 18 to decide on de-listing of the company. Vedanta Resources has expressed its intention to acquire all public shareholding of the company. As on date, the Public Shareholders hold 169.1 crore equity shares aggregating to 48.94 percent of the paid-up equity share capital. Vedanta Resources to consequently voluntarily delist Vedanta from the Equity Shares from BSE and NSE .To also delist Vedanta’s ADR from New York Stock Exchange. Promoters to accept the equity shares tendered by the public shareholders at a price of Rs 87.5 per share. This represents a discount of 2 percent from closing price of Rs 89.3 per share on May 12.
• Jubilant Lifesciences has entered into a non-exclusive Licensing Agreement with Gilead Sciences,that will grant the company the right to register, manufacture and sell Gilead’s investigational drug, Remdesivir, a potential therapy for Covid-19 in 127 countries including India. Under the licensing agreement, Jubilant will have the right to receive a technology transfer of the Gilead manufacturing process to scale up production to enable expedited access of the medicine to Covid-19 patients upon approvals by regulatory authorities in respective countries.
• Adani Ports & SEZ confirmed the news that it has walked out of Bhavanapadu port deal in Andhra Pradesh. There is no material impact of this article on the Company, as the Company had received only letter of intent to award and no further action was taken with respect to the project
• Indo Amines: NCLT approved amalgamation of Core Chemicals and Key Organics with the company
• Apollo Microsystems has extended timeline for making investment in Ananya SIP RF Technologies for a further period of 90 days (total 180 days), as the investment gets delayed due to the prevailing pandemic COVID-19.
• JK Paper has temporarily suspended operations at its manufacturing facility - Unit CPM at Fort Songadh, Gujarat on May 11, for about a week due to lower market demand and extended lockdown in Western Region.

Resumption Of Operations

• Borosil Renewables
• TTK Prestige
• DCM Shriram
• Tata Metaliks
• HPL Electric & Power
• Kokuyo Camlin

Nifty Earnings

Nestle India Q1CY20 (Standalone, YoY)

• Revenue up 10.7 percent at Rs 3,325.3 crore (Est Rs 3,098 crore)
• Net profit up 13.4 percent at Rs 525.4 crore (Est Rs 512 crore)
• EBITDA up 5.3 percent at Rs 793.4 crore (Est Rs 720 crore)
• Margins at 23.8 percent versus 25.1 percent (Est 23.2 percent)
• Higher profits due to lower tax rates
• RM costs / sales at 44.6 percent versus 40.2 percent
• Gross margins down 230 basis points at 56.3 percent
• Higher costs led by dairy inputs

Other Earnings

Havells Q4 (Standalone, YoY)

• Revenue down 19.5 percent at Rs 2,216.1 crore
• Net profit down 11.7 percent at Rs 177.2 crore
• EBITDA down 22.1 percent at Rs 245.3 crore
• Margins at 11.1 percent versus 11.4 percent
• Margins remained flat due to lower employee and ad spends despite contraction in topline numbers
• All segments show degrowth, dragged mainly by Cables and Lighting Segment

Blue Star Q4 (Consolidated, YoY)

• Revenue down 18.6 percent at Rs 1,299.4 crore
• Net profit down 88.8 percent at Rs 8.9 crore
• EBITDA down 65.8 percent at Rs 37.4 crore
• Margins at 2.9 percent versus 6.9 percent
• Margins impacted due to higher employee expenses and raw material costs
• Revenue impacted by lockdown due to Covid-19 in last week of March

IndiaMART InterMESH Q4 (Consolidated, YoY)

• Revenue up 23.3 percent at Rs 170.1 crore
• Net profit up 57.1 percent at Rs 44.3 crore
• EBITDA up 2.6 times at Rs 52.3 crore
• Margins at 30.7 percent versus 14.6 percent
• Margins improved due to lower employee expenses and higher depreciation
• Revenue driven by an increase in the number of paying subscribers as well as higher realization from existing customers

SeQuent Scientific Q4 (Consolidated, YoY)

• Revenue up 6.6 percent at Rs 300.6 crore
• Net profit down 1.6 percent at Rs 16.9 crore
• EBITDA up 27 percent at Rs 51.1 crore
• Margins at 17 percent versus 14.3 percent

JK Paper Q4 (Consolidated, YoY)

• Revenue down 8.8 percent at Rs 735.9 crore
• Net profit down 17.5 percent at Rs 92.7 crore
• EBITDA down 19.1 percent at Rs 176.6 crore
• Margins at 24 percent versus 27 percent

Earnings Today

• Dr. Reddy's Laboratories
• Kotak Mahindra Bank
• Maruti Suzuki
• ABB India
• Godrej Consumer Products
• Mphasis
• Schaeffler India
• Siemens

Bulk Deals

• Healthcare Global Enterprises: Buena Vista Fund sold 5.64 lakh shares (0.64 percent) at Rs 85.41 per share

Pledged Share Details

• Uflex promoters released pledge of 2.5 lakh shares on May 11
• Emami promoters created pledge of 23.7 lakh shares on May 11
• Sun Pharma Advanced Research promoters released pledge of 24 lakh shares on May 8

(As Reported On May 12)

Who’s Meeting Whom

• Crisil to meet FSSA Investment, Singapore on May 15
• Allcargo Logistics to meet Equirius on May 13

Trading Tweaks

• Ex-Date For Rights Issue: Reliance Industries (Rights at 1:15 at Rs 1,247 per share)
• Price Band Revised From 20% To 10%: Hathway Cable & Datacom, NDTV
• Move Into ASM Framework: DB Realty, AU Small Finance Bank
• Move Into Short-Term ASM Framework: Infibeam Avenues, Alok Industries
• Move Out Of Short-Term ASM Framework: Advanced Enzyme Technologies, GATI, LT Foods

Insider Trading

• Apollo Tricoat Tubes promoter Lakshmi Metal Udyog acquired 14.7 lakh shares on May 11

(As Reported On May 12)

F&O Cues

• Nifty May futures closed at 9,212, premium of 15 points versus 14 points premium
• Nifty May futures open interest down 0.4 percent, sheds 29,000 shares in open interest
• Nifty Bank May futures closed at 18,839, discount of 22 points versus 35 points discount
• Nifty Bank May futures open interest up 3.5 percent, adds 49,000 shares in open interest
• Nifty Put Call Ratio at 1.28 versus 1.26 across all series

Nifty Weekly Expiry: May 14

• Max open interest on call side at 9,500 strike (20.1 lakh shares)
• Max open interest on put side at 9,000 strike (17.4 lakh shares)
• Active Options: 9,100 Put (+3.9 lakh shares), 9,200 Call (+5.8 lakh shares)

Nifty Monthly Expiry: May 28

• Max open interest on call side at 10,000 strike (23.4 lakh shares)
• Max open interest on put side at 9,000 strike (24.8 lakh shares)