Stocks To Watch: Berger Paints, Natco Pharma, Power Grid, Hero MotoCorp, Vedanta

Indian equity benchmarks extended their record breaking run for second day after a report by World Bank showed that India made it easier to do business while better-than-expected corporate earnings also boosted the investor sentiment.

Gains in Wednesday’s session were led by Bharti Airtel, which rose most in over seven years and banking stocks like ICICI Bank and State Bank of India. The S&P BSE Sensex rose 1.17 percent to 33,600 and the NSE Nifty 50 Index advanced 1 percent to 10,440.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.20 percent to 10,465 as of 7:00 a.m.

Stocks To Watch

• Bharti Airtel: To transfer optical fibre business to Telesonic Networks for an overall consideration of not more than Rs 5,650 crore.
• Dredging Corporation: Government approved sale of entire 73 percent stake in the company.
• NBCC: Baged reconstruction order worth Rs 400 crore.
• Tata Teleservices: Says NTT Docomo tendered its entire stake of 21.63 percent to Tata Sons.
• Asian Granito: Entered into a joint venture with Paramshree Granito Pvt Ltd for setting up a green field facility for Quartz stone.
• TVS Motors: October sales rose 3 percent year-on-year.
• Shree Cements: Won a coal linkage auction for Chhattisgarh captive plant.
• Solar Industries: Bagged order worth Rs 1,143.63 crore from Coal India for supply of bulk explosives.
• JP Associates: Said RBI approved bond exchange plan and bondholders agreed to further extend the deadline to Nov. 30.
• AU Small Finance Bank: Entered into an agreement with Cholamandalam MS for General Insurance Business as Corporate Agent.
• GOCL: Received order worth Rs 322 crore from Coal India for supply of bulk explosives.

Other Corporate Announcements

• Jindal Worldwide: Acquired 100 percent stake in Saroj Weavers Pvt. Ltd. for Rs 4.01 crore.
• GAIL (India): UP Chief Secretary assures state government support for Rs 5,000 crore worth ongoing projects.
• Tata Communication: Company acquired 15.83 crore equity shares of Tata Teleservices.

Circuit Revisions

• Circuit filter revised to 10%: Butterfly Gandhimathi Appliances and Kavveri Telecom
• Circuit filter revised to 5%: Indowind Energy

IPO Watch

• Mahindra Logistics Limited IPO continues on day 2. The issue was subscribed 1.04 times at end of day 1.
• Khadim India IPO opens with an issue price of Rs 745-750 per share

F&O Setup

• Nifty November futures closed at 10,477, premium of 36.8 points versus 33.5 points
• November contracts: Nifty open interest up 2 percent; Bank Nifty open interest up 21 percent
• India VIX closed 2.4 percent lower at 12.13
• Max open interest for November series shifts at 10,500 Call (open interest at 34.2 lakh, up 12 percent)
• Max open interest for November series at 10,000 Put (open interest at 52.5 lakh, up 4 percent)

F&O Ban

• HDIL
• JSW Energy
• Wockhardt

Active Stock Futures

Bulk Deals

Crompton Greaves Consumer

• Franklin Templeton Investment Fund bought 46.36 lakh shares or 0.7 percent stake at Rs 217.5 each
• TIAA CREF Institutional MF International Equity Fund sold 68.13 lakh shares or 1.09 percent stake at Rs 217.5 each

JB Chemicals & Pharmaceuticals

• ICICI Lombard General Insurance bought 20 lakh shares or 2.4 percent stake at Rs 288 each
• Ashish Dhawan sold 19.52 lakh shares or 2.3 percent stake at Rs 288.12 each

Mayur Uniquoters

• Small Cap World Fund bought 2.48 lakh shares or 0.5 percent stake at Rs 460.43 each

A2Z Infra Engineering

• IL&FS Financial Services sold 9.43 lakh shares or 0.65 percent stake at Rs 38.05 each

Bharat Wire Ropes

• Mentor Capital bought 23.36 lakh shares or 5.2 percent stake at Rs 94.99 each (average)
• Aardee Multitrade sold entire stake of 15.53 lakh shares or 3.5 percent stake at Rs 95.99 each
• Cosmos Prime Projects sold entire stake of 7.92 lakh shares or 1.8 percent stake at Rs 94 each

Bhushan Steel

• EARC Trust SC 283 sold 44.36 lakh shares or 1.34 percent stake at Rs 60.4 each (average)

Cholamandalam

• Norwest Ventures Partners X FII Mauritius sold 20.92 lakh shares or 1.3 percent stake at Rs 1200.21 each (average)

Sinclair Hotels

• MCCS Investment Holding sold 3.51 lakh shares or 6.32 percent stake at Rs 335.94 each
• Prabhudas Lilladhar bought 34,969 shares or 0.6 percent stake at Rs 332.38 each

Earnings Reactions To Watch

TCI Express (Q2, YoY)

• Revenue up 10.3 percent at Rs 204 crore.
• Profit up 30 percent at Rs 13 crore.
• EBITDA up 19.9 percent at Rs 19.9 crore.
• Margin at 9.75 percent versus 8.97 percent.

Ramco System (Q2, QoQ)

• Revenue up 4.5 percent at Rs 115 crore.
• Profit of Rs 6.5 crore versus Net loss of Rs 3 crore.
• EBIT at Rs 12.3 crore versus EBIT loss of Rs 2.9 crore.
• Margin at 10.69 percent versus -2.6 percent.

GE Power (Q2, YoY)

• Revenue down 45 percent at Rs 262 crore.
• Profit of Rs 6.6 crore versus net loss of Rs 97 crore.
• EBITDA loss at Rs 1.5 crore versus EBITDA loss of Rs 116 crore.
• Margin at -0.57 percent versus -24.19 percent.

Hikal (Q2, YoY)

• Revenue up 25.6 percent at Rs 292 crore.
• Profit down 6 percent at Rs 15.3 crore.
• EBITDA up 13.8 percent at Rs 53.5 crore.
• Margin at 18.3 percent versus 20.2.

ABC Bearings (Q2, YoY)

• Revenue up 20.5 percent at Rs 47 crore.
• Profit up 43 percent at Rs 2 crore.
• EBITDA up 26.7 percent at Rs 7.6 crore.
• Margin at 16.2 percent versus 15.4 percent.

Ador Fontech (Q2, YoY)

• Revenue up 1.01 percent at Rs 39.7 crore.
• Profit up 52.2 percent at Rs 3.5 crore.
• EBITDA up 14 percent at Rs 4.9 crore.
• Margin at 12.3 percent versus 10.9 percent.

Hexaware (Q3 CY17, QoQ)

• Revenue up 0.9 percent at Rs 993 crore.
• Profit up 16.4 percent at Rs 142 crore.
• EBIT up 8 percent at Rs 157 crore.
• Margin at 15.8 percent versus 14.74 percent.

Hero MotoCorp (Q2, YoY)

• Revenue up 7 percent at Rs 8362 crore.
• Profit up 0.6 percent at Rs 1010.5 crore.
• EBITDA up 6 percent at Rs 1456 crore.
• Margin at 17.4 percent versus 17.6 percent.

Eclerx Services (Q2, QoQ)

• Revenue down 0.6 percent at Rs 331 crore.
• Profit up 12.65 percent at Rs 89 crore.
• EBIT down 4.5 percent at Rs 84 crore.
• Margin at 25.4 percent versus 26.4 percent.
• Exceptional gain of Rs 20.4 crore.

Apollo Tyres (Q2, YoY)

• Revenue up 12.70 percent at Rs 3477 crore.
• Profit down 46 percent at Rs 140 crore.
• EBITDA up down 17 percent at Rs 364.5 crore.
• Margin at 10.5 percent versus 14 percent.

Max India (Q2, YoY)

• Revenue down 5 percent at Rs 16.84 crore.
• Profit up 6 percent at Rs 2.12 crore versus Rs 2 crore.

Music Broadcast (Q2, YoY)

• Revenue up 10 percent at Rs 76 crore.
• Profit down 7 percent at Rs 13 crore.
• EBITDA down 12 percent at Rs 25 crore.
• Margin at 33 percent versus 41 percent.

Apar Industries (Q2, YoY)

• Revenue down 2.8 percent at Rs 1248 crore.
• Profit down 43.5 percent at Rs 26 crore.
• EBITDA down 11 percent at Rs 89 crore.
• Margin at 7.1 percent versus 7.7 percent.

Mahindra Holidays & Resorts (Q2, YoY)

• Revenue down 5.8 percent at Rs 243 crore.
• Profit down 3.6 percent at Rs 31.7 crore.
• EBITDA down 11.5 percent at Rs 54 crore.
• Margin at 22.2 percent versus 23.6 percent.

Nifty Results Today

• Vedanta
• Power Grid Corporation

Other Results Today

• Berger Paints
• Cera Sanitaryware
• Edelweiss
• Ge T&D India
• Glenmark Pharmaceuticals
• HCC
• ICRA
• Natco Pharma
• Shriram City Union Finance
• Ujjivan Financial Services
• Accelya Kale Solutions
• Akzo Nobel India
• Andhra Bank
• Bharat Road Network
• Borosil Glass Works
• CCL Products
• Deepak Fertilizers
• Orient Cement
• Sundram Fasteners
• Ramco Cements
• Transport Corporation Of India

Brokerage Radar

• Rain Industries: Motilal Oswal initiated ‘Buy’ rating with a price target of Rs 362; implying a potential upside of 33 percent from Wednesday’s close.
• Hexaware: Credit Suisse maintained ‘Neutral’; hiked price target to Rs 265 from Rs 230.

JSW Energy

• CLSA: Maintained ‘Sell’; hiked price target to Rs 66 from Rs 57.
• Deutsche Bank: Maintains Hold; Hiked TP to Rs 73 from Rs 68.

Hero Motocorp

• CLSA: Maintained ‘Sell’; hiked price target to Rs 3,000 from Rs 2,950.
• Credit Suisse: Maintains Neutral; hiked price target to Rs 3,560 from Rs 3,230.

Tech Mahindra

• CLSA: Maintained ‘Sell’; hiked price target to Rs 450 from Rs 380.
• Credit Suisse: Maintained ‘Outperform’; hiked price target to Rs 550 from Rs 520.

TVS

• CLSA: Maintained ‘Sell’; hiked price target to Rs 350 from Rs 315.
• Credit Suisse: Maintains Underperform; hiked price target to Rs 490 from Rs 400.

Shriram Transport Finance

• CLSA: Maintained ‘Sell’; hiked price target to Rs 1,000 from Rs 950.
• Citi: Maintained Neutral; hiked price target to Rs 1,300 from Rs 1,090

Godrej Consumer

• CLSA: Maintained ‘Sell’; hiked price target to Rs 1,025 from Rs 940.
• Credit Suisse: Maintained ‘Outperform’; hiked price target to Rs 1,125 from Rs 1,100.

Media Reports

• At least 16 Killed in Blast At NTPC Unchahar Plant (Mint)
• PSB, Metal Stocks Improve ROE Of BSE 200 Firms in FY17 (Financial Express)
• NCLT Rejects Axis Bank’s Claim Against EDU Smart Services (Financial Express)
• Adani Arm Completes Buy Of Rinfra’s Western Region Transmission Assets (Business Line)
• Allianz-Shapoorji Pallonji JV to invest in three commercial property assets (Economic Times)
• US lawsuit adds to woes of Indian generic drug makers; some top executives named in price-fixing probe (Sun, DRL, Zydus, Glenmark among cos sued) (Economic Times)