Stocks To Watch: Eveready Industries, Godfrey Phillips, JSPL, Maruti Suzuki, ONGC, Vedanta, Vodafone Idea

Asian stocks started a new quarter in a muted fashion, as investors assessed mixed data on the global economy amid concern over the coronavirus spread and Sino-American tensions. Shares were little changed in Japan, with sentiment capped as confidence among large manufacturers in the country fell to the lowest since 2009. Stocks ticked higher in Australia, while South Korea saw a bigger advance. Hong Kong is closed for a holiday.

Here are the stocks to watch in trade today:

• Jindal Steel and Power’s Mauritius arm accepted a binding offer from Templar Investments Limited to divest its entire stake in its Oman asset, Jindal Shadeed Iron and Steel. The enterprise value of the deal is over $1 billion, to enable company’s debt reduction plans. Company expects the transaction to close in approximately a month. The transaction subject to approval from shareholders of Jindal Steel and Power and lenders of JSIS Oman. Templar Investments, an investment company, part of Promoter Group of JSPL.
• IOC Middle East FZE, Dubai, a wholly-owned arm of Indian Oil Corporation and Beximco LPG of Bangladesh, signed an agreement for the formation of a 50:50 joint venture company for LPG business in Bangladesh. As per the business plan, the venture will begin functioning by acquiring Beximco’s existing LPG assets. New venture aims to set up a large LPG terminal at a deep-water port in Bangladesh to facilitate receipts of LPG.
• Petroleum and Natural Gas Regulatory Board has accepted the proposal made by Gujarat State Petronet to transfer the authorizations for developing city gas distribution network in the geographical areas of Amritsar district and Bhatinda district to Gujarat Gas. Regulatory board has permitted Gujarat Gas to take over the activities of laying, building, operating or expanding CGD Network in the afore-mentioned areas.
• Vedanta Resources Plc is seeking to increase a planned $2.5 billion loan by $250 million to help it advance a decision to delist its main India unit. (Bloomberg News)
• Kalpataru Power Transmission received new order for transmission and distribution segment for Rs 956 crore.
• IndianOil Corporation, NTPC and SDMC join hands to develop waste-to-energy facilities at Okhla landfill site. SDMC would provide a 1-acre land on lease at the landfill site, while Indian Oil Corporation and NTPC will invest 50% each towards setting up and operating the facilities.
• Bank of Baroda: Board approved raising Rs 2,000 crore via Basel compliant bonds.
• GMM Pfaudler to acquire De Dietrich Process Systems’ Hyderabad factory for 6.25 million euros. Facility is equipped to manufacture glass lined equipment.
• NCLT has reserved order on SBI's plea against Anil Ambani. SBI, along with other lenders, had moved NCLT to initiate insolvency resolution process against Anil Ambani. SBI had filed an application under Sec. 95 of IBC which allows initiation of insolvency proceedings against an individual. Anil Ambani had extended personal guarantees to Reliance Communications and Reliance Infratel, both of which are undergoing insolvency resolution process.
• Hero MotoCorp has commenced the dispatches of its new motorcycle – the Hero Xtreme 160R.
• Lakshmi Vilas Bank: Board has appointed Hariharan K as CFO of the Bank with effect from June 30.
• Indian Bank reduced MCLR by 10 basis points across various tenors with effect from July 3. One year MCLR AT 7.4% and One-month MCLR at 7.15%. With effect from July 1, there will be a 40 basis points reduction in benchmark rates for all loans/advances linked with external benchmark.
• Mahindra & Mahindra Financial Services on Covid-19 impact: Moratorium guidelines announced by RBI led to almost 75% of customers opting for moratorium on their EMIs, thus impacting the Company’s daily cash flow and liquidity. New business in April and May 2020 was substantially lower than the previous year’s volumes. Company expects business operations to normalise only post the moratorium period i.e. from September 2020 onwards. However, repayment from heavy commercial vehicles and aggregator taxi segments could be further delayed. Demand and financing for pre-owned vehicles and agri machinery (tractors) are expected to increase.
• Cyient: Aditya Birla Sun Life Mutual Fund increased stake from 3.08% to 5.1% on June 26.
• Marico has increased its stake from 45% to 100% in Zed Lifestyle. The target company belongs to the fast moving consumer goods industry.
• Mahindra Holidays and Resorts said that it has recommenced its operations in 10 of its Resorts starting from mid-June onwards, which includes 9 resorts in India and 1 in Dubai. Further, its material subsidiary, Holiday Club Resorts Oy, Finland has now recommenced its operations in 30 out of the 33 resorts in Finland, Spain and Sweden.
• Indiabulls Housing Finance to consider raising capital on July 3.

Nifty Earnings

ONGC Q4 (Standalone, QoQ)

• Revenue down 9.51% at Rs 21,456.2 crore(Est Rs 20,557 crore)
• Net loss at Rs 3,098.3 crore versus Net profit at Rs 4,226.5 crore (Est Net Profit at Rs 2,581 crore)
• Ebidta down 30.2% at Rs 8,587.9 crore (Est Rs 9,348 crore)
• Margins at 40% versus 51.9% (Est 45.5% )
• Impairment loss of Rs 4,900 crore in current quarter due to Covid-1 impacts profit
• Deferred tax reversal of Rs 1,641.5 crore in current quarter
• Net Realizations at $49.01/bbl versus $58.24/bbl (Est $51/bbl)

Other Earnings

Godfrey Phillips Q4 (Consolidated, YoY)

• Revenue down 3.91% at Rs 588.7 crore
• Net profit up 36.4% at Rs 48.3 crore
• Ebidta up 80% at Rs 90 crore
• Margins at 15.3% versus 8.16%
• Provision of Rs 15 crore in base quarter on declining value of investments
• Margins improve due to lower raw material costs and ad expenses and higher depreciation
• Topline impacted by higher excise duty
• Excise duty tripled to Rs 88.9 crore for current quarter
• Higher depreciation due to change in accounting treatment

RITES Q4 (Consolidated, YoY)

• Revenue down 22.6% at Rs 570.7 crore
• Net profit down 4.32% at Rs 143.9 crore
• Ebidta down 10% at Rs 163.6 crore
• Margins at 28.7% versus 24.7%
• Domestic Consultancy revenue down 13% at Rs 286 crore
• Domestic construction projects revenue down 35% at Rs 170.1 crore
• Export sale revenue down 43% at Rs 59 crore

Mishra Dhatu Nigam Q4 (Standalone, YoY)

• Revenue down 39.5% at Rs 203.6 crore
• Net profit down 49.7% at Rs 40.4 crore
• Ebidta down 54.7% at Rs 50.1 crore
• Margins at 24.6% versus 32.9%

Earnings Today

• Eveready Industries

Pledged Share Details

• Adani Transmission promoters created pledge of 2.9 crore shares on June 30
• Zee Media Corporation promoter ARM Infra and Utilites invoked pledge of 1.05 crore shares on April 7
• Apollo Tyres promoter Motlay Finance released pledge of 45.7 lakh shares on June 25
• Jindal Stainless Steel promoters created pledge of 20 crore shares from June 24-26
• Adani Ports and SEZ promoter Flourishing Trade and Investment acquired 10 lakh shares on June 29

(As Reported On June 30)

Who’s Meeting Whom

• Tata Communications to meet Baron Capital on July 1

Trading Tweaks

• Record Date for Rights Issue: Aditya Birla Fashion and Retail. Rights issue at 9:77 partly paid.
• Price Band Revised From 10% To 5%: Aban Offshore, Nitin Spinners, Refex Industries
• Price Band Revised From 20% To 10%: Omaxe
• Move Into ASM Framework: Expleo Solutions, ARSS Infrastructure Projects, Tilaknagar Industries
• Move Into Short-Term ASM Framework: Edelweiss Financial Services, Shree Digvijay Cement, Sharda Cropchem
• Move Out Of Short-Term ASM Framework: Inox Wind, Usha Martin, Balaji Telefilms , Borosil Renewables.

Insider Trades

• Apollo Tyres promoters acquired 4.14 lakh shares from June 16-25
• Tourism Finance Corporation promoter Koppara Thomas acquired 7.5 lakh shares on June 29
• Info Edge promoters sold 1 lakh shares from June 26-29
• Quess Corp promoter Ajit Isaac acquired 3 lakh shares on June 29

(As Reported On June 30)

F&O Cues

• Nifty July futures closed at 10240, discount of 60 points versus discount of 57 points
• Nifty July futures open interest up 0.8%, adds 87,900 shares in open interest
• Nifty Bank July futures closed at 21214, discount of 156 points versus discount of 124 points
• Nifty Bank July futures open interest up 8.9%, adds 1 lakh shares in open interest

Options

• Nifty PCR at 1.2 versus 1.33 (across all series)

Nifty Monthly Expiry: July 2

• Max open interest on call side at 10500 (32.5 lakh shares)
• Max open interest on put side at 10000 (27.9 lakh shares)
• Active options: 10100 Put (+-8.5 lakh shares), 10400 Call (+10.2 lakh shares)

Nifty Monthly Expiry: July 30

• Max open interest on call side at 11500 (20.2 lakh shares)
• Max open interest on put side at 10000 (25.7 lakh shares)