Stocks To Watch: Biocon, Coffee Day, Lupin, Reliance Capital

The Singapore-traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India climbed 0.4 percent to 9,811.

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

• Lupin: Receives Establishment Inspection Report (EIR) from the U.S. FDA for its Aurangabad facility
• Reliance Capital: To receive one free share of Reliance Home Finance for every one share held
• Biocon: Board approves slump sale of its Biosimilars business to its subsidiary
• HCL Infosystems: Signs agreement with Apple India for distribution of iPhone and other Apple products
• Subex: Board approves restructuring scheme
• McNally Bharat: Wins order worth Rs 514 crore
• Coffee Day: Acquires ONS Ventures in Malaysia for Rs 75 lakh

Central Bank of India

• Revises savings bank deposit rates
• Accounts with balance up to Rs 50 lakh to be given 3.5 percent interest
• Accounts with balance above Rs 50 lakh to be given 4 percent interest

Other Corporate Announcements

• GTPL Hathway: Board approves acquisition of remaining 49 percent stake in GTPL Deesha Cable Net Pvt. Ltd.
• V-Guard: Acquires 6.72 lakh shares or 49.43 percent stake in GUTS Electro-Mech
• Ugar Sugar: Karnataka State Appellate Authority issues stay order against Karnataka Pollution Control Board’s closure notice

Today’s Nifty Call

Bulk Deals

• Manappuram Finance: Quinag Acquisition (FPI) bought 4.36 crore shares or 5.2 percent stake at an average price of Rs 93.89 per share
• Eros Media: Promoter Eros Worldwide sold 6 lakh shares or 0.64 percent stake at Rs 183.51 each
• Gravita India: Atul Kuchhal sold 5.25 lakh shares or 0.77 percent stake at Rs 111 each. He held 2.79 percent stake as of June 30, 2017
• Websol Energy System: India Max Investment Fund sold 1.49 lakh shares or 0.66 percent stake at Rs 118.59 each

New Offering

• Apex Frozen Food IPO opens at a price band of Rs 171-175 per share

F&O Setup

• Nifty Futures adds 5.3 lakh shares in open interest, premium moves to 14.6 points versus 17 points
• Bank Nifty Futures add 1.6 lakh shares in open interest, up 8 percent
• Maximum Call open interest at 10,000 at 58.9 lakh shares
• Maximum Put open interest at 9800 at 53.2 lakh shares, open interest down 10 percent
• Call strikes 9700, 9800, 9900 see open interest addition
• Put strikes 9800, 9900 and 10,000 see open interest shedding

Stocks Seeing High Open Interest Change

• Ramco Cement sees open interest addition of 11 percent on short side
• Oil India sees open interest addition of 9 percent on short side
• UPL sees open interest addition of 7 percent on short side
• Manapuram Finance sees open interest shedding of 20 percent , short covering seen
• BEML sees open interest shedding of 12 percent, long unwinding seen
• Hexaware sees open interest shedding of 12 percent, long unwinding seen

Stocks In F&O Ban

• BEML
• Fortis Healthcare
• Indiabulls Real Estate
• Jaiprakash Associates
• JSW Energy
• Justdial

Earnings To Watch

• Ahluwalia Contracts
• CARE Ratings
• DCM Shriram
• Gati
• Mayur Uniquoters
• Pricol

Earnings Reaction To Watch

Shirpur Gold Refinery (Q1, YoY)

• Revenue up 54.8 percent to Rs 1303.5 crore.
• EBITDA increased 129 percent to Rs 16 crore.
• EBITDA margin expanded 40 basis points to 1.2 percent.
• Net profit of Rs 2.8 crore against a loss of Rs 40 lakh.

S Chand And Company (Q1, YoY)

• Revenue grew 81.2 percent to Rs 29 crore
• Net loss of Rs 8 crore versus loss of Rs 11 crore
• EBITDA loss narrowed to Rs 11.9 crore from a loss of Rs 14.4 crore
• EBITDA margin stood at -41 percent versus -90 percent

Brokerage Radar

Mindtree (Post Investor Meet)

• Axis Capital: Mindtree’s 3.0 strategy aims to drive change to maintain digital leadership. Its aim is to recoup the margin loss from FY16 levels. Stock is fairly valued.
• Citi: Mindtree seems to be investing in the right areas from a medium to longer perspective. Valuations still do not provide much comfort in this context.
• Credit Suisse: Management articulated a clear digital strategy. There were no new takeaways related to near-term financial performance. Valuations are still relatively rich.
• IDFC: Company ruled out any short-term measures to push margin higher that could hurt the business/growth outlook. Management eyes reversal in margin erosion.
• Motilal Oswal: Upgrade to Neutral as near-term softness now embedded in the price. Management presented a differentiated proposition in digital.
• Morgan Stanley: Management highlighted that it is preparing organisation for the next big leap in digital. However, near-term macro and company-specific challenges still persist.

IIFL On Redington

• Initiate coverage with target of Rs 160. See 11 percent/13 percent revenue/EPS CAGR over FY17-20. GST-related headwinds cap near-term upside. Stock price lacks near-term catalysts. “We wait for a better entry point to turn more constructive on the stock.”

HSBC On UltraTech Cement

• Raise target to Rs 3,350 from Rs 2,350. Jaypee ramp-up looks challenging. Believe Jaypee assets will operate at a capacity utilisation below 60 percent until FY20 due to challenging market. The Street is extremely optimistic on long-term profitability.

CLSA On Westlife

• Termination of franchisee agreement in north and east India with Connaught Plaza positive for Westlife. Consolidation under WDL makes the most sense to us. Domino’s and PepsiCo show merits of franchisee consolidation.

Media Reports

• NTPC: Seeks shareholder approval to raise Rs 15,000 crore via bonds. (PTI)
• NHPC: To seek shareholders' nod to raise Rs 2,000 cr via bonds. (PTI)
• ONGC: Board approves HPCL takeover. (PTI)
• Zee Entertainment: Launches reality show in the U.S. (Business Line)
• ICICI Bank: In talks to sell Unimark loans to Edelweiss ARC. (Mint)
• Tata Motors: To invest Rs 1,500 crore in CV business. (Mint)
• HCL Infosystems: To market Apple products. (Financial Express)
• Piramal Enterprises: Invests Rs 550 crore in Rustomjee’s project. (Financial Express)
• Tata Power: Launches eCar charging facility. (Financial Express)
• SBI: Waives processing fees on various loans. (Financial Express)
• IHCL: To pump Rs 3,000 crore for brand expansion in next 5 years. (Business Standard)
• Bharti Airtel: Plans to launch bundled 4G smartphone at Rs 2,500 before Diwali to counter Jio (Times of India)
• Infosys: Sebi scanner on Infosys stock movement, corporate governance. (Times of India)
• Piramal-Bain stressed assets unit, AION Capital eye Alok Industries stake (Mint)
• ICICI Bank in talks to sell Unimark Loans to Edelweiss (Mint)