Stocks To Watch: Bank Of Baroda, Lupin, Strides Shasun, Tata Coffee

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, gained 0.2 percent to 9,456.

Here are some of the key stocks to watch out for this session:

Strides Shasun

• Signs definitive agreements with Vivimed Labs to set up two joint venture companies
• A 50:50 JV company will own the U.S. FDA approved formulation facility in Alathur, Chennai
• Another 50:50 JV company in Singapore through Strides Pharma Global Pte Ltd., Singapore will own certain approved ANDAs and product pipeline
• Transaction is subject to customary closing conditions and expected to be completed by May 31, 2017

• Lupin: Receives U.S. FDA approval for generic Seroquel XR Tablets which had U.S. sales of $1.27 billion
• HSIL: To consider various options in relation to the potential restructuring to unlock the intrinsic value
• India Tourism Development Corporation: Shareholders approve disinvestment of undertakings and subsidiaries of the company
• United Bank of India: Approved raising of equity up to Rs 1,000 crore via QIP, Public Issue or Rights Issue
• Sutlej Textiles: Approves stock split in the ratio of 1:10
• Capital First: Issues NCDs worth Rs 50 crore on a private placement basis
• HDFC: Issues NCDs worth Rs 1,250 crore on a private placement basis
• Ramco Cements: Successfully completes buyback of 4,45,610 shares

Today’s Nifty Quote

Brokerage Calls

• Andhra Bank: Raised to 'Reduce' at Arihant Capital with price target of Rs 60
• Apollo Hospitals: ICICI Securities initiates coverage with 'Buy' rating and price target of Rs 1,555
• JSW Steel: Raised to 'Hold' at Reliance Securities with price target of Rs 221
• NIIT Technologies: Cut to 'Hold' at CIMB with price target of Rs 535
• Bank of Baroda: Upgraded to 'Neutral' at IDFC with price target of Rs 180
• Strides Shasun: Raised to 'Buy' at Jefferies
• Jyothy Labs: Raised to 'Buy' at Sharekhan with price target of Rs 435
• CESC: Cut to 'Outperform' at Batlivala & Karani with price target of Rs 943
• DLF: Cut to 'Hold' at HSBC with price target of Rs 185

Stocks In F&O Ban

• Bharat Financial Inclusion
• Canara Bank
• Capital First
• CEAT
• CESC
• HDIL
• Indo Count Industries
• IDBI Bank
• IFCI
• Infibeam Incorporation
• Jindal Steel
• Jain Irrigation
• JP Associates
• JSW Energy
• Oriental Bank of Commerce
• TV 18 Broadcast

New F&O Entrants From May 26

• HCC
• Kajaria Ceramics
• NALCO
• RBL Bank
• Ramco Cements

Media Reports

• Tata Sons: Group companies seek CCI nod to buy Docomo's 21.6 percent stake in Tata Teleservices. (Economic Times)
• MRPL: May invest Rs 18,000 crore on expansion. (Economic Times)
• HCL Technologies: Announces services partnership with Duck Creek Technologies. (Bloomberg)
• Great Eastern Shipping: To consider raising Rs 150 crore via debentures on May 23. (Bloomberg)
• JSW Energy: To consider raising long-term funds through bonds. (Bloomberg)
• Bajaj Finserv: Won't need capital for at least five years says Sanjiv Bajaj. (Mint)
• TCS: Buyback receives tepid response on Day 1. (Hindu Business Line)

Earnings Reaction To Watch

Bank of Baroda Q4

• Net profit of Rs 154.7 crore from a net loss of Rs 3,230 crore year-on-year
• Provisions up 26 percent at Rs 2,623 crore from Rs 2,079.5 crore (QoQ)
• Gross NPA down to 10.46 percent from 11.4 percent (QoQ)
• Net NPA down to 4.72 percent from 5.43 percent (QoQ)

VIP Industries (Q4, YoY)

• Net profit up 46.5 percent to Rs 18.9 crore
• EBITDA up 40.6 percent to Rs 30.8 crore
• EBITDA Margin expands to 10 percent from 8 percent

Pidilite Industries (Q4, YoY)

• Net profit down 7 percent to Rs 157.2 crore
• EBITDA up 8.2 percent to Rs 257.8 crore
• EBITDA Margin expands to 19.9 percent from 19.3 percent

National Fertilizer (Q4, YoY)

• Net profit up 225 percent to Rs 89 crore
• EBITDA up 24 percent to Rs 164.9 crore
• EBITDA Margins expand to 8.85 percent from 8 percent

Indian Hume Pipe Company (Q4, YoY)

• Net profit up 253 percent to Rs 33.2 dcrore
• EBITDA up 103 percent to Rs 64.1 crore
• EBITDA Margins expand to 13 percent from 10.6 percent

TeamLease Services (Q4, YoY)

• Net profit up 320 percent to Rs 38.44 crore
• EBITDA up 77 percent to Rs 14.7 crore
• EBITDA Margins expand to 1.8 percent from 1.2 percent

Sadbhav Infrastructure (Q4, YoY)

• Net loss of Rs 96 crore from a loss of Rs 11 crore
• EBITDA up 3 percent to Rs 228 crore
• EBITDA Margins expand to 58.6 percent from 46 percent

Tata Coffee (Q4, YoY)

• Net profit up 235 percent to Rs 46 crore
• EBITDA up 44.6 percent to Rs 107 crore
• EBITDA Margins expand to 27 percent from 19 percent

Pennar Industries (Q4, YoY)

• Net profit up 50 percent to Rs 14 crore
• EBITDA up 40.5 percent to Rs 32 crore
• EBITDA Margins expand to 11.3 percent from 9.3 percent

Key Earnings To Watch

State Bank of India Q4 (Bloomberg Estimates)

• Net Interest Income may grow 1 percent to Rs 15,448 crore
• Net Profit seen 111 percent higher to Rs 2,670 cr
• NIM seen at 2.7 percent (QoQ)
• Loan growth seen at 3-5 percent
• Asset quality trends expected to stay weak
• Estimated range for slippages seen between Rs 9,000-11,000 crore

Factors To Watch

• Behavior of SME / rural retail delinquent loans that were granted dispensation post demonetization last quarter.
• Update on non-core stake sales.
• Outlook on FY18, both from watchlist/resolutions and associate banks’ merger cost/benefit.
• Guidance around impact on capital from i) IND-AS and ii) higher risk weights on unrated exposures.

Motherson Sumi Q4 (Bloomberg Estimates)

• Net profit seen 10.9 percent higher to Rs 459 crore
• EBITDA seen 15 percent higher to Rs 1,219 crore
• EBITDA Margins seen expanding to 10.9 percent from 10.3 percent

Factors To Watch

• Expect robust growth in India
• See steady double digit growth in Peguform and Reflectec
• Margins likely to improve on curtailed other expenses

Other Key Earnings

• Aarti Industries
• Grasim Industries
• Mahindra Holidays and Resorts
• Just Dial
• Future Enterprises
• Tata Power
• Titagarh Wagons
• V-Guard Industries