Stocks To Watch: Tata Power, L&T, PNB, IDBI Bank

India’s benchmark equity index extended its streak of gains to eight days, longest in two months, as investors awaited the release of quarterly data on the nation’s economic growth.

The S&P BSE Sensex rose 0.13 percent to 33,724 on Monday while the NSE Nifty 50 Index was little changed at 10,399.55.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,382 as of 6:50 a.m.

Here Are The Stocks To Watch Out For In Tuesday’s Session:

• Bharat 22 ETF to list today on exchanges.
• L&T seeks relief from Telangana Government on metro project delay.
• IDBI Bank’s board approved sale of 7.4 million shares or 1.5 percent stake in NSE.
• Punjab National Bank to sell upto 99.94 lakh shares in PNB Housing Finance on Nov. 28 & Nov. 29 via OFS.
• Tata Power Solar commissions 300 kilowatt rooftop solar project in Delhi.
• TVS Electronics says shareholders approved scheme of amalgamation between Prime property holdings and self.
• HDIL seeks shareholders nod to issue two crore warrants to promoter.
• Patel Engineering completes implementation of S4A Scheme.

F&O Setup

• Nifty Nov futures closed at 10,418.5, premium of 19 points versus 19.6 points.
• Nifty Dec Futures trading at 10,457, premium of 57 points.
• All series- Nifty open interest up 2 percent , Bank Nifty open interest down 2 percent.
• Rollover-Nifty at 32 percent, Bank Nifty at 15 percent.
• India VIX at 13, down 3.5 percent.
• Max open interest for Nov series at 10,500 Call, open interest at 61.4 lakhs, open interest up 3 percent.
• Max open interest for Nov series at 10,300 Put, open interest at 60.9 lakh, down 1 percent.

F&O Ban

• In Ban: DHFL, Fortis Healthcare, GMR Infrastructure, HDIL, Infibeam Incorporation, Jet Airways, Jain Irrigation, Jaiprakash Associates, JSW Energy, Just Dial, Oriental Bank, Syndicate Bank, TV18 Broadcast and Wockhardt.
• New In Ban: Oriental Bank and TV18 Broadcast.
• Out Of Ban: Reliance Communications

Alert: Only intraday positions can be taken in stocks under F&O ban. There will be a penalty in case of rollover of these intraday positions.

Active Stock Futures

Bulk Deals

• UFO Moviez: SBI mutual fund sold 2 lakh shares or 0.7 percent stake at Rs 485.05 each.
• Cantabil Retail: Seminary Tie up pvt ltd sold 2.70 lakh shares or 1.7 percent stake at Rs 75 each.
• Pincon Spirit: Capston Capital Partners sold 2.29 lakh shares or 0.5 percent stake at Rs 41.6 each.
• BCL Industries: Sarva priya exports pvt ltd sold 2.20 lakh shares or 1.6 percent stake at Rs 137.2 each.
• Gitanjali Gems: Ramesh Shah sold 18 lakh shares or 1.5 percent stake at Rs 93.05 each.
• Websol Energy Systems: India Max Investment Fund sold 1.75 lakh shares or 0.7 percent stake at RS 113.71 each.
• Rallis : Franklin Templeton mutual fund bought 17.81 lakh shares or 0.9 percent stake at Rs 230 each.

Brokerage Radar

Credit Suisse on Eris Lifesciences

• Initiated ‘Outperform’ rating with a price target of Rs 770.
• Eris is a pure play in India pharma market with scalable business model.
• It has generated high free cash flow and used the same to accelerate growth.
• Free cash flow generation at 60 percent of Operating Income.
• Eris has the best return profile and growth in the sector
• Return on capital employed at 100 percent and expected profit to grow at a compound annual growth rate of 24 percent over the financial years till March 2020.
• Turnaround of recent four loss-making acquisitions could re-rate the stock.
• With synergies coming in, market should be convinced on Eris’ ability to accelerate growth inorganically.

Motilal Oswal on Mahanagar Gas

• Initiated ‘Neutral’ rating with price target of Rs 1,219.
• Expect total volumes to grow at a compound annual growth rate of 11 percent over the financial years till March 2022, led by conversions and expansion in new areas.
• Industrial demand in Mumbai remains low, Raigad to offer good growth area.
• Rising concerns on pollution to boosting CNG sales.
• Expect continued growth from the under-penetrated commercial segment.
• PNGRB’s bidding round could be opportunity for expansion beyond Mumbai.
• Expect operating income and earnings per share to grow at a compound annual growth rate of 7 percent each till March 2020. Expect strong free cash flow generation with higher dividend payout during the period.
• Bull Case Target Price of Rs 1,580

Ventura Securities on Talbros Automotive

• Initiated ‘Buy’ rating with price target of Rs 353
• Talbros to resume high growth trajectory after a period of consolidation
• Expect revenue, operating income and net profit to grow at a compound annual growth rate of 14 percent, 16.5 percent and 33.5 percent respectively till March 2020.
• Electric vehicles are a threat but impact coming into play post 2023.
• Forgings segment to boost because new international orders from OEMs.
• Expect JVs to see positive traction; Gasket segment to resume growth trajectory.
• Heat shields and aftermarket segment will help it achieve high growth.

ICICI Direct on Time Technoplast

• Initiated ‘Buy’ rating with price target of Rs 230.
• Expansion in value added products and new launches to boost Time Technoplast.
• VAP’s revenue contribution to sharply increase to 23 percent by March 2020.
• Better utilisation, stable raw material prices and lower interest outgo to help drive profitability.
• Expect revenue and net profit to grow at a compound annual growth rate of 16 percent and 25 percent respectively till March 2020.
• Better earnings growth to expand return on equity and return on capital employed to 15 percent and 18 percent by March 2020.
• Composite cylinder: Driver for future revenue growth; Company to launch this product by the second half of the next financial year.

Edelweiss on Bharat Electronics

• Maintained ‘Buy’ with price target of Rs 240.
• BEL successfully moved up the defence manufacturing value chain.
• Rising demand for electronic warfare systems, augurs well for the company.
• Focus on improving capabilities to provide competitive edge.
• Do not foresee any major challenge on execution and operating margins over the next three years.
• Expect orders worth Rs 70,000 crore to be awarded over the next three years.
• Expect order book and net profit to grow at compound annual growth rate of 14 percent and 17 percent till March 2019.

UBS on UltraTech Cement

• Maintained ‘Neutral’ with price target of Rs 4,590.
• Petcoke ban impacts 20 percent of its clinker capacity.
• Management would reconsider capex on petcoke switch after regulatory clarity.
• Management more confident of a ramp up in JPA assets after the September quarter.
• Stock price factors in management optimism.

Media Reports

• Provisional ratings for debt rejig; rating will be used to see if a firm can be revived before moving NCLT (Economic Times).
• Reliance Jio may pitch for Reliance Communication’s 4G airwaves in key markets (Economic Times).
• RBL Bank, CDC, Faering Cap invest in Utkarsh Micro Finance’s rights issue (Economic Times).
• SASF settled default cases for IDBI Bank with 90 percent haircut (Financial Express).
• L&T hopes to sell assets by March to fuel IT buying (Financial Express).
• Adani may not receive $900mn govt loan (Business Standard).
• Oriental Insurance to list on bourses in FY19 (Business Standard).