People outside the Bombay Stock Exchange (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Century Textiles, Religare Enterprises, IL&FS Engineering, Sun Pharma

  • Century Textiles may explore merger with Grasim after sale of paper division
  • Religare to divest its stake in Cerestar Advisors for Rs 5.73 crore
  • IL&FS Engineering gets contract termination letter from Paschimanchal Vidyut Vitran Nigam Ltd.
  • Andhra Bank revises marginal cost of lending rate

The Singapore-traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India, gained 0.32 percent to 9,978

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

  • Idea Cellular: To seek shareholders’ nod on October 12 for merger with Vodafone
  • Mahindra & Mahindra: Launches 3-wheeler e-Alfa mini electric rickshaw at Rs 1.12 lakh (ex-showroom Delhi)
  • IL&FS Engineering: Gets contract termination letter from PVVNL, IL&FS initiates legal action against termination
  • Religare Enterprises: To divest its stake in Cerestar Advisors for Rs 5.73 crore
  • Onward Technologies: Enters into a partnership with Dassault Systemes to expand its offerings from engineering services to industry solutions.
  • Shreyas Shipping & Logistics: Takes delivery of multipurpose vessel, fleet size rises to 11
  • RBL Bank: Partners with LIC MF for the launch of its new digital product – Insta Redemption Solution
  • Monsanto: To sell its branded cotton seed business to Tierra Agrotech Pvt. Ltd.
  • Sun Pharma: NCLT approves scheme of merger between the company and Sun Pharma Medisales, Ranbaxy Drugs, Gufic Pharma and Vidyut Investments

Other Corporate Announcements

  • Andhra Bank, Oriental Bank and Syndicate Bank revise marginal cost of lending rate
  • Auto companies in focus on back of increase in cess for big cars and SUVs
  • Supreme Court refuses to grant interim bail to Unitech promoter Sanjay Chandra
  • Jenburkt Pharmaceuticals: Board approved buyback of equity shares worth Rs 12 crore, at Rs 576 per share
  • Optic fiber company stocks in focus as government to spend Rs 18,792 crore on Phase 2 of BharatNet

IPO

  • Matrimony.com Limited IPO opened with issue price of Rs 983 - Rs 985
  • Dixon Technologies IPO closed, the issue got subscribed 117.8 times
  • Bharat Road Network IPO closed, with the issue subscribed 1.8 times

Brokerages on Matrimony.com

  • Motilal Oswal: Subscribe for long-term due to leadership positioning, limited competition and expected pick up in earnings. On annualised EPS based on Q1FY18 earnings, issue is available at P/E of 38 times.
  • KRChoksey: Subscribe rating given the nature of an internet company, leading position in the online match-making services industry, presence in a promising industry and higher profitability compared to peers.
  • IIFL: Subscribe for listing gains. IPO proceeds to be utilised for higher revenues and lower operating costs. Focused expansion of marriage services could also help the company move up the value chain.
  • Angel Broking: Subscribe for mid-to-long-term period. Expect the company to perform better considering strong brand value, leadership position, robust technology, strong user data base and expansion into marriage services.

Today’s Nifty Call

Stocks To Watch: Century Textiles, Religare Enterprises, IL&FS Engineering, Sun Pharma

F&O Setup

  • Nifty September Futures closed with a premium of 15 points versus 24.7 points
  • September Nifty Futures Open Interest up 1 percent
  • India VIX closed marginally lower by 0.35 percent at 12.9
  • September series highest call base at 10,000 (Open Interest at 47.3 lakh)
  • September series highest put base at 9,700 (Open Interest at 52.9 lakh, Open Interest up 5 percent)
  • Call strikes 9,900, 10,100 see Open Interest addition
  • Put strikes 9,800, 9,900, 10,000 see Open Interest addition

Active Stock Futures

  • Amara Raja sees Open Interest addition of 35 percent on long side
  • Oil India sees Open Interest addition of 35 percent on long side
  • Powergrid sees Open Interest addition of 15 percent on short side
  • Kajaria Ceramics sees Open Interest addition of 14 percent on long side
  • Repco Home sees Open Interest addition of 13 percent on short side
  • M&M sees Open Interest addition of 12 percent on short side
  • Dish TV sees Open Interest addition of 10 percent on short side
  • PVR sees Open Interest addition of 9 percent on long side
  • Ramco Cement sees Open Interest shedding of 11 percent, long unwinding seen

F&O Ban

  • Dewan Housing Finance
  • Indiabulls Real Estate
  • JSW Energy
  • Just Dial

Bulk Deals

  • 63 Moons Tech: Blackstone GPV Capital Partners (Mauritius) VI FII sold 9.8 lakh shares or 2.1 percent stake at Rs 78.14 each

Gulf Oil Lubricants India:

  • Promoters Gulf Oil International (Mauritius) Inc. bought 6.91 lakh shares or 1.4 percent stake at Rs 777 each.
  • IAM Ltd. sold 6.91 lakh shares or 1.4 percent stake at Rs 777 each

Results Today

  • Advanced Enzymes
  • Andrew Yule
  • Cochin Shipyard
  • Dolphin Offshore
  • Gloster
  • Indian Toners
  • Mawana Sugar
  • Multibase
  • Neuland Labs
  • Schneider Electric

Earnings Reaction To Watch

Stocks To Watch: Century Textiles, Religare Enterprises, IL&FS Engineering, Sun Pharma

Asian Oilfields (Q1,YoY)

  • Revenue up more than 5 times to Rs 51 crore versus Rs 9 crore
  • EBITDA at Rs 12 crore versus Rs 3 crore
  • Margin at 23.5 percent versus -33.3 percent
  • Net profit of Rs 11 crore versus net loss of Rs 6 crore

Everest Kanto (Q1, YoY)

  • Revenue down 14 percent to Rs 125 crore
  • EBITDA down 50 percent to Rs 5 crore
  • Margin at 4.1 percent from 7.1 percent
  • Net loss of Rs 15.3 crore

Kirloskar Electric (Q1, YoY)

  • Revenue down 37 percent at Rs 103 crore
  • EBITDA loss at Rs 18 crore versus EBITDA profit of Rs 3.52 crore
  • Margin at -19.1 percent versus 2.7 percent
  • Net loss of Rs 24 crore versus net profit of Rs 2 crore
  • Other income of Rs 11 crore in base quarter

Linc Pens (Q1, YoY)

  • Revenue down 20.6 percent to Rs 67.5 crore
  • EBITDA down 66.7 percent to Rs 3 crore
  • Margin narrowed to 4.4 percent from 10.6 percent
  • Profit down 87.5 percent to Rs 0.5 crore

Omax Auto (Q1, YoY)

  • Revenue down 9.8 percent at Rs 275 crore
  • EBITDA loss at Rs 13.5 crore versus EBITDA profit Rs 10 crore
  • Margin at -5.5 percent versus 3.7 percent
  • Net loss of Rs 22 crore versus net profit of Rs 30 lakh

Poddar Housing (Q1, YoY)

  • Revenue down 64 percent at Rs 4 crore
  • EBITDA loss at Rs 3 crore versus -1 Crore
  • Margins at -75 percent versus -9.1 percent
  • Net loss of Rs 2.3 crore versus net profit of Rs 1.2 crore

Federal Mogul (Q1, YoY)

  • Revenue up 0.5 percent to Rs 366 crore
  • EBITDA up 18.4 percent to Rs 51.5 crore
  • Margin expanded to 15.7 percent from 13.2 percent
  • Profit up 29.4 percent to Rs 22 crore

Salzer India (Q1, YoY)

  • Revenues up 16 percent to Rs 115 crore
  • EBITDA down 7 percent to Rs 10.5 crore
  • Profit down 6 percent to Rs 4.1 crore
  • Margin 9.1 percent versus 11.4 percent

APL Apollo Tubes (Q1, YoY)

  • Revenue up 19 percent to Rs 1,301 crore
  • Net profit down 11 percent to Rs 38.8 crore
  • EBITDA down 16 percent to Rs 61.2 crore
  • Margin at 5.30 percent versus 7.50 percent

Brokerage Radar

  • HDFC Bank: Credit Suisse maintained 'Outperform' on the stock with price target of Rs 1,955
  • Phoenix Mills: HSBC retained its 'Buy' rating with price target of Rs 580
  • Suzlon: IDFC Securities reiterated its 'Buy' rating with price target of Rs 28
  • Apar Industries: Edelweiss maintained a 'Buy' rating on the stock with price target of Rs 990
  • Dr. Reddy's: HSBC retained its 'Hold' on the stock with price target hiked to Rs 2,430 from Rs 2,286
  • CG Power and Industrial Solutions: Morgan Stanley maintained an 'Equalweight' rating with price target raised to Rs 94 from Rs 60

Media Reports

  • Bharti Airtel: In talks with handset companies for Rs 2,500 4G smartphone. (Economic Times)
  • Infosys: To hire 6,000 engineers annually over next 2 years. (Mint)
  • Future group stocks: Kishore Biyani sets sights on HyperCity to build bigger bazaar in future (Economic Times)
  • Jyoti Structures: Shapoorji Pallonji, SSG Capital plan joint bid for Jyoti Structures acquisition. (Mint)
  • KEC International: KEC and Kalpataru Power Transmission to pitch for majority stake in maker Jyoti Structures. (Mint)
  • Biocon: Aspiring for $1 billion revenues by FY19. (Mint)
  • ONGC: Company’s gas production plan from KG basin may miss June 2019 deadline. (Mint)
  • Zee Entertainment: Eyes HD English movies with &Prive. (Business Standard)
  • IndiGo: Eyes wet lease to cash in on winter traffic. (Business Standard)
  • Coal India: To finalise Shakti contracts soon. (Economic Times)
  • Lanco: To exit real estate business to focus on infrastructure. (Economic Times)
  • Tata Motors: China looks to ban sale of petrol and diesel vehicles. (Times Of India)