Stock brokers work on the trading floor. (Photographer: Nana Buxani/Bloomberg)

Stocks To Watch: Bharat Financial, Dr. Reddy’s, GAIL, Thermax

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 9,356.

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

GAIL (India)

  • Awarded 131 kilometres long pipeline laying work contracts worth Rs 200 crore
  • Contract for the Kochi-Koottanad-Mangaluru pipeline
  • Contracts for another 111 kilometres to be allotted in July 2017
  • Target to complete the entire project by December 2018

Dr. Reddy's Laboratories

  • U.S. FDA completes audit of formulations manufacturing plant-3 at Bachupally in Hyderabad
  • Issued a Form 483 with 11 observations
  • Company plans to address them within the stipulated time
These observations are mostly procedural in nature, reflecting the need to improve people capabilities and strengthen documentation and laboratory systems.
Dr. Reddy’s Press Release

Lupin

  • U.S. FDA completed inspection of the formulations facility in Goa on April 7
  • Issues Form 483 citing three observations
  • The company said it’s in the midst of putting together a response

Thermax

  • Receives export order from Nigeria worth $157 million
  • Order for supply of three packages comprising utility boilers, heat recovery steam generators and flue gas steam generators, for refinery and petrochemical project to be set up in the country
  • Financials of the deal are not disclosed

IDBI Bank

  • Shareholders vote in favour of issuing 24.74 crore equity shares, aggregating up to Rs 1,900 crore, to the government on a preferential basis
  • Shareholders also vote to offer issue and allot up to 7.81 crore equity shares, aggregating up to Rs 600 crore, to financial institutions, including insurance companies, banks and mutual funds, if any, on a preferential basis

Info Edge (India)

  • Clarifies on media report of Zomato raising $20 million
  • Said report is erroneous in nature and factually incorrect
  • Said Zomato has increased its authorized share capital recently in order to issue bonus shares to existing shareholders as a part of its share capital restructuring exercise

Sumeet Industries

  • Seeks shareholder approval to convert loans worth Rs 25 crore into equity shares
  • Seeks shareholder approval to increase borrowing limit and charge on asset limit to Rs 1,250 from Rs 1,000 crore
  • Also seeks shareholder nod to issue NCDs worth Rs 50 crore on a private placement basis
  • Aurobindo Pharma: Completes acquisition of 100 percent stake in Generis Farmaceutica
  • ONGC: Made a total of 23 new discoveries in FY2017
  • State Bank of India: Reduces medium and long-term deposit rates for individuals by upto half a percentage point. New rates will apply to new deposits and renewals of below Rs 1 crore.
  • Punjab National Bank: Board approves raising funds up to Rs 3,000 crore via issue of compliant Tier-I and II bonds each
  • Strides Shasun: Successfully completes U.S. FDA inspection at oral dosage facility in Puducherry with zero 483 obeservations
  • Rane Madras: Order from Nexteer Automotive Poland in July 2016 for supply of steering gears worth Rs 850 crore over a 6-year period starting from Q2 2018 may get cancelled
  • Cerebra Integrated Technologies: Issues 1.19 crore shares on preferential basis to strategic investor Kuber Global Fund and 53 lakh warrants, convertible into equity shares on preferential basis to certain promoters
  • Oricon Enterprises: Wholly-owned subsidiary Oriental Containers Ltd. enters into an agreement with Pelliconi C. & S.P.A., Italy to jointly develop closure business in the Indian market by implementing new business lines besides the product manufactured by Oriental Containers Ltd.
  • Bombay Rayon Fashions: EGM on May 20 to consider, offer, issue and allot up to 48.26 lakh fully paid-up equity shares of the company having a face value of Rs 10 each at a price of Rs 165.88 per share
  • JK Paper: Board of Directors to meet on May 6 to conider allotment of equity shares upon conversion of FCCBs held by the remaining two holders
  • Mangalore Chemicals & Fertilizers: Resumes the operations of Ammonia, Urea and ABC plants after annual maintainence activities since March 3, 2017
  • Brigade Enterprises: QIP closed on April 28 and issue price approved at Rs 227.50 which is a 4.89 percent discount to the floor price of Rs 239.20
  • Aksh Optifibre: Approves setting up a subsidiary in Dubai for expansion of the optical fibre business and in China for expansion of FRP business with a total investment of $16.5 million to be funded via debt and internal accruals
  • IDFC: Approves borrowing of funds up to Rs 10,000 crore through issuance of Non-Convertible Debenture and Commercial Papers on Private Placement Basis
  • Omkar Speciality Chemicals: National Company Law Tribunal sanctions scheme of arrangement between company and Lasa Laboratory Pvt. Ltd., Urdhwa Chemicals Company Pvt. Ltd., Rishichem Research Ltd., Desh Chemicals Pvt. Ltd. and Lasa Supergenerics Ltd.
  • Neuland Labs: To seek shareholder approval for Scheme of Amalgamation and Arrangement between the company and Neuland Health Sciences Pvt. Ltd. and Neuland Pharma Research Pvt. Ltd. and their respective shareholders and creditors
  • Atul: Received notice from Central Pollution Control Board for closure of operations at its Tarapur Plant. This will result in a loss or damages worth Rs 56 lakh
  • Sintex: Allotted 36.5 lakh equity shares to FCCB holders one exercise of their conversion right
  • DCB Bank: Raises Tier-I capital worth Rs 379 crore via QIP
  • Srikalahasthi Pipes: Company approves raising of funds worth Rs 250 crore

Bulk Deals

  • Aditya Birla Money: Sucharithra Reddy sells 2.93 lakh shares at Rs 56.29 each
  • Amtek Auto: Ancient Suppliers buys 39.75 lakh shares at Rs 38.75 each
  • Bharat Financial Inclusion: CIMB Bank Berhad buys 12 lakh shares at Rs 807.73 each
  • Metalyst Forgings: HDFC MF sells 4.37 lakh shares at Rs 54.95 per share
  • Pincon Spirits: Capston Capital Partners buys 2.68 lakh shares at Rs 72 each

Media Reports

  • Motilal Oswal Financial Services: Bain in talks to invest Rs 800 crore in company's arm. (Economic Times)
  • Indraprastha Gas: Takes over two gas pipelines of GAIL. (PTI)
  • Cairn India: Cairn Energy accuses finance ministry official of ordering dividend freeze. (Mint)
  • Reliance Industries: Approaches SAT against SEBI order. (Mint)
  • Balrampur Chini Mills: National Green Tribunal imposes fine worth Rs 25 lakh on company. (Business Standard)

Earnings Reactions To Watch

Ambuja Cement (Q1, YoY)

  • Profit up 360.7 percent at Rs 246.5 crore compared to Rs 53.5 crore
  • Sales from operations up 5.3 percent to Rs 2,893.4 crore compared to Rs 2,745.5 crore
  • Volume growth of 2.73 percent year-on-year at Rs 6.02 million tonne
  • Realisation improved by 2.5 percent year-on-year to Rs 4,208.3 per tonne

Dabur India (Q4, YoY)

  • Revenue falls for the second quarter in a row.
  • Revenue for January-March quarter fall 4.8 percent to Rs 1,914.6 crore
  • Operational profit rose 3 percent to Rs 482.6 crore
  • Operating margins expanded 190 basis points to 25.2 percent
  • Recommends a final dividend of Re 1 per share

Bharat Financial Inclusion (Q4, YoY)

  • Posts net los of Rs 234.9 crore compared to a profit of Rs 884 crore
  • Provisioning and write-offs for bad debt rose more than 90 times to Rs 334 crore sequentially
  • Bad loans during the quarter rose to 6 percent from 0.06 percent in the previous quarter

Raymond (Q4, YoY)

  • Net profit down 37.5 percent to Rs 33.9 crore compared to Rs 54.3 crore
  • EBITDA down 20.4 percent at Rs 117.9 crore compared to Rs 148.14 crore
  • Revenues up 5.1 percent at Rs 1,473.6 crore compared to Rs 1,402 crore

Cholamandalam Investment and Finance (Q4, YoY)

  • Net profit up 14.3 percent at Rs 219.55 core compared to Rs 192 crore
  • Income from operations up 6.5 percent at Rs 1,207 crore compared to Rs 1,132.5 crore
  • NIM for the quarter at 9.3 percent
  • Provisions down to Rs 52.85 crore compared to Rs 100.3 crore (QoQ)
  • Gross NPA at 4.7 percent compared to 4.8 percent (QoQ)

Navin Flourine International (Q4, YoY)

  • Net profit down 6.6 percent at Rs 29.4 crore compared to Rs 31.5 crore on account of higher tax outgo
  • EBITDA up 16 percent at Rs 49.7 crore compared to Rs 42.85 crore
  • Announces dividend of Rs 13 per share
  • Announces stock to be split in the ratio of 5:1

JSW Energy (Q4, YoY)

  • Net profit down 92 percent to Rs 24.8 crore compared to Rs 299.9 crore
  • EBITDA down 45 percent at Rs 587 crore compared to Rs 1,077 crore
  • EBITDA margins contract to 31.5 percent from 41 percent

April Auto Sales

Maruti Suzuki India

  • April sales grow 19.5 percent to 1,51,215 units
  • Exports fall 29 percent to 6,723 units
  • Domestic sales grow 23 percent to 1,44,942 units

Eicher Motors

  • Overall sales grow 25 percent to 60,142 units
  • Exports grow 36 percent to 1,578 units

Tata Motors

  • Overall sales for April decline 21 percent to 30,972 units compared to 39,389 units in April 2016
  • Domestic sales fall 19 percent to 28,844 units
  • Passenger Vehicle sales grow 23 percent to 12,827 units

Escorts

  • Overall tractor sales grew 20 percent to 4,899 tractors
  • Exports in April 2017 grew 266 percent to 139 tractors
  • Domestic tractor sales grew 18 percent to 4,760 tractors

Hero MotoCorp

  • Overall sales in April decline 3.5 percent to 5,91,306 units
  • Hikes prices in the range of Rs 500 to Rs 2,200 effective from May 1, 2017

Stocks In F&O Ban

  • Adani Enterprises
  • Bharat Financial Inclusion
  • JSW Energy