Employees ride an elevator next to an electronic ticker board that indicates the latest stock figures inside the atrium at the National Stock Exchange. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Max Hospitals, Precision Camshaft, UltraTech Cement, Jyothy Labs

Indian shares advanced on Friday, paced by gains in consumer shares. A rally in global equities also aided key local indexes, which rebounded from a six-week low on Wednesday and capped their best week in more than a month.

The benchmark S&P BSE Sensex closed 0.9 percent higher at 33,250.30 as 25 of 31 stocks rose. The NSE Nifty 50 Index closed 1 percent higher at 10,265.65.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.2 percent at 10,309.50 as of 6:40 a.m.

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

  • UltraTech Cement to set up 3.5 mtpa integrated cement plant at Pali, Rajasthan with investment of Rs 1,850 crore.
  • Delhi Govt cancels license of Max Hospitals Shalimar Bagh.
  • Precision Camshaft to provide corporate guarantee of Rs 149 crore to Bank of Baroda on behalf of subsidiary.
  • Sadbhav Infra signs maintenance contract worth Rs 150 crore with subsidiary.
  • KDDL to invest Rs 20 crore in Ethos.
  • Jyothy Labs to borrow Rs 400 crore and provide corporate guarantee of Rs 60 crore to one of its subsidiary.
  • Tata Chemicals receives NCLT nod for sale of Ure and fertilizer business to Yara Fertilizers India.
  • Punjab Chemicals to raise Rs 150 crore via equity/debt.
  • IL&FS Engineering wins 216 crore pipeline laying contract from GAIL.
  • Power Grid has entered into loan agreement with Asian Infrastructure Investment Bank for $100 million.
  • Govt to sell 67.50 lakh shares in NBCC at a discounted price of Rs 156.12 via OFS to employee. OFS to remain open from Dec. 28 - Jan. 05.

Bulk Deals

  • Blue Star: SAIF India IV FII Holdings sold 17.4 lakh shares or 1.82 percent equity at Rs 800 each.
  • Rama Steel Tubes: Bharti AXA Life Insurance bought 1 lakh shares or 0.6 percent equity at Rs 185 each.
  • Indoco Remedies: FS INV ICVI Stewart Investors Asia Pacific Fund sold 10 lakh shares or 1.1 percent equity at Rs 266.04 each.
  • Sadbhav Infra: Xander Investment Holding XVII sold 35.89 lakh shares or 1 percent equity at Rs 133.19 each.
  • Religare Enterprises: Yes Bank sold 19 lakh shares or 1.1 percent equity at Rs 60.8 each
  • Websol Energy System: India Max Investment Fund sold 7.95 lakh shares or 3.2 percent equity at Rs 100.33 each.
  • Pincon Spirits: Lively Equipment’s Suppliers sold 2.25 lakh shares or 0.5 percent at Rs 32.41 each.
  • Ruchi Soya: Cresta Fund sold 36.91lakh shares or 1.1 percent equity at Rs 19.42 each.

Shilpi Cables

  • Swiss Finance Corporation (Mauritius) Ltd sold 16.48 lakh shares or 1.5 percent equity at Rs 13 each.
  • UBS Principal Capital Asia bought 16.48 lakh shares or 1.5 percent equity at Rs 13 each.

Rupee

  • Rupee ends at 64.46/$ on Friday versus 64.57/$ on Thursday.

IPO

  • Future Supply Chain Solutions IPO subscibed 7.6 times on final day.

Who’s Meeting Whom?

  • Matrimony to HDFC Mutual Fund, IDFC, Credit Suisse, ICICI Securities and others on Dec. 11 - 12.
  • Prabhat Dairy to meet DSP Blackrock MF, Kotak Mutual Fund, Birla MF, SBI Life Insurance and others on Dec. 11.
  • Seya Industries to meet Tata Mutual Fund, Axis Mutual Fund, Max Life and others on Dec. 12.
  • Tata Motors to meet DSP Merrill Lynch and Credit Suisse on Dec. 12 - 13.

Earnings Reaction To Watch

Omax Auto (Q2 YoY)

  • Revenue up 11 percent at Rs 289 crore.
  • Net profit up 230 percent at Rs 3.3 crore.
  • Ebitda up 43 percent at Rs 14.6 crore.
  • Margins at 5.1 percent versus 3.9 percent.

Global Vectra Helicorp (Q2 YoY)

  • Revenue up 11 percent at Rs 99 crore.
  • Net profit down 20 percent at Rs 3.6 crore.
  • Ebitda down 18.5 percent at Rs 15.4 crore.
  • Margins at 15.6 percent versus 21.2 percent.

KDDL (Q2 YoY)

  • Revenue down 15 percent at Rs 100.7 crore.
  • Net profit up 200 percent at Rs 1.5 crore.
  • Ebitda up 8.5 percent at Rs 7.05 crore.
  • Margins at 7.0 percent versus 5.5 percent.

Aegis Logistics (Q2 YoY)

  • Revenue up 84 percent at Rs 1,241 crore.
  • Net profit up 108 percent at Rs 52 crore.
  • Ebitda up 46 percent at Rs 67 crore.
  • Margins at 5.4 percent versus 6.8 percent.

Federal Mogul (Q2 YoY)

  • Revenues up 4 percent at Rs 329 crore.
  • Net profit up 8 percent at Rs 22.8 crore.
  • Ebitda up 1 percent at Rs 50 crore.
  • Margins at 15.2 percent versus 15.7 percent.

Kellton Tech Solutions (Q2 YoY)

  • Revenue up 21.8 percent at Rs 184 crore.
  • Net Profit up 11.1 percent at Rs 14.6 crore.
  • Ebitda up 28.8 percent at Rs 26.7 crore.
  • Margin at 14.6 percent versus 13.8 percent.

Aurionpro Solutions (Q2 YoY)

  • Revenue up 1.9 percent at Rs 168.7 crore.
  • Net Profit up 497 percent at Rs 13.7 crore.
  • Ebitda up 110 percent at Rs 29.8 crore.
  • Margins at 17.7 percent versus 8.6 percent.

Soril Holdings and Ventures (Q2 YoY)

  • Revenue down 11.5 percent at Rs 42.7 crore.
  • Net loss of Rs 18.8 crore versus net loss of 3.7 crore.
  • Ebitda loss of Rs 0.6 crore versus Ebitda profit of Rs 10.2 crore.
  • Margins at -1.4 percent versus 21.1 percent.

Sharda Motor Industries (Q2 YoY)

  • Revenue up 17.1 percent at Rs 305 crore.
  • Net Profit up 62.7 percent at Rs 20.3 crore.
  • Ebitda up 5.7 percent at Rs 36.4 crore.
  • Margin at 12.0 percent versus 13.2 percent.

IFGL Refractories (Q2 YoY)

  • Revenue up 3.3 percent at Rs 199 crore.
  • Net Profit down 46.8 percent at Rs 9.4 crore.
  • Ebitda down 9.0 percent at Rs 26.8 crore.
  • Margin at 13.4 percent versus 15.3 percent.

Earnings To Watch

  • Aarvee Denims
  • Andrew Yule
  • APL Apollo Tubes
  • ARSS Infra
  • Associated Alcohol
  • BF Utilities
  • Centrum Capital
  • Colgate Palmolive
  • Lasa Supergenerics
  • Mawana Sugars
  • MT Educare
  • Nandan Denim
  • PBM Polytex
  • Repro India
  • V2 Retail

F&O Cues

  • Nifty December Futures trading at 10,291.6, premium of 26 points versus 37 points.
  • December Futures: Nifty OI up 3 percent , Bank Nifty OI down 12 percent.
  • India VIX at 13.6, down 4.2 percent.
  • Max OI for Dec series at 10,500 Call, OI at 56.2 lakhs, OI down 9 percent.
  • Max OI for Dec series at 10,000 Put, OI at 86.8 lakh, OI up 1 percent.

F&O Ban

  • In Ban: HDIL, IRB Infra, Jet Airways, Jain Irrigation, Jaiprakash Associates and JSW Energy.
  • New In Ban: Jaiprakash Associates and JSW Energy.
  • Out Of Ban: None.

Alert: Only intraday positions can be taken in stocks which are in F&O ban, incase of rollover of these intraday positions there is a penalty.

Active Stock Futures

Stocks To Watch: Max Hospitals, Precision Camshaft, UltraTech Cement, Jyothy Labs

Brokerage Radar

ICICI Direct on Narayana Hrudayalaya

  • Initiated ‘Buy’ with price target of Rs 340.
  • Blended model of affordability and high-quality services.
  • Government drive on affordability favours company’s cost efficient, affordable model.
  • Improvement in case mix to boost average realisation per operating bed.
  • NH is well poised to thrive in the domestic healthcare delivery.
  • Expect return on capital employed to improve to 19 percent by March 2020, compared to 12.5 percent clocked in the previous financial year.
  • Expect revenue and net profit to grow at a compounded rate of 17 percent and 34 percent by March 2020.

Edelweiss Investment on GNA Axles

  • Initiated ‘Buy’ with price target of Rs 455.
  • Strong presence in exports and domestic market provides competitive edge.
  • Cost reduction and new initiative to fuel the rise in topline and bottomline.
  • Expect strong growth momentum in North America heavy truck market to drive exports.
  • Healthy domestic demand scenario in M&HCV and OH to drive domestic business.
  • Positives: healthy order book, focus on productivity improvement and limited capex.
  • Triggers: healthy CV and tractor demand, cost reduction measure and plans to enter high realization SUV and LCV segment.
  • Bull Case price target of Rs 505.

HSBC on Motherson Sumi

  • Maintained ‘Buy’; raised price target to Rs 425 from Rs 376.
  • Increased focus on innovation and integration.
  • Expect innovation and cross selling to support business growth.
  • Remain positive as it is well placed to benefit from increasing role of auto component suppliers.
  • Innovative products on camera based technologies positions it for higher long-term growth.
  • Recent fund raising to help for multiple acquisitions to achieve its 2020 goal.

Jefferies on Reliance Industries

  • Downgraded to ‘Underperform’ from ‘Hold’; raised price target to Rs 790 from Rs 626.
  • Ebitda may double to $20 billion by March 2023, much of that appears priced in.
  • Expect refining margins to ease from the current fiscal highs.
  • Capex to stay elevated led by telecom and E&P.
  • Telecom ramp-up may be bumpier as ARPU/subscribers may not rise together.
  • Return ratios to remain modest and net debt higher.
  • Valuations are rich; Appears to have brushed off risks.
  • Stiff hurdle for Reliance to outperform from here on.

Axis Capital on Tech Mahindra

  • Maintained ‘Buy’; raised price target to Rs 605 from Rs 550.
  • Management betting on integrated digital experience, interconnectivity through IoT, software transformation and network of the future.
  • Financial performance bottomed out in the fourth quarter of previous fiscl.
  • Expect revenue trajectory to witness slow and steady recovery.
  • Margin improvement to drive earnings momentum over next four quarters.
  • Expect $ revenue and net profit to grow at a compounded rate of 8 percent and 11 percent respectively by March 2020.

IDFC Securities on Jet Airways

  • Maintained ‘Underperformer’; raised price target to Rs 666.
  • Better yields on domestic routes.
  • Higher fuel cost and lower traffic/yields on Gulf routes.
  • Downgraded operating income for the current financial year due to forex loss; Upgraded net profit for the current and the next financial year due to lower finance cost.
  • Expect tepid fleet additions to restrict Jet’s growth by March 2019.
  • High leverage and cash generation in the current and next financial year to fall short of scheduled debt repayments.

Edelweiss on Jet Airways

  • Upgraded to ‘Buy’ from ‘Hold’; Raised price target to Rs 822 from Rs 548.
  • Confident on strategic measures initiated by the new CEO to turnaround stressed financials.
  • Focusing on sustaining growth via cost rationalisation and balance sheet improvement.
  • Renewed focus on domestic market by adding 15 percent fuel‐efficient B737‐Max.
  • Enhanced code share to lead to market share gain on international routes.
  • Expect operational efficiencies to improve from the next financial year.

Morgan Stanley on Maruti Suzuki

  • Maintained ‘Overweight’; raised price target to Rs 10,563 from Rs 9,102.
  • Maruti is one of the most profitable car OEMs globally.
  • End-market opportunity and superior return on capital employed justify premium valuation.
  • Maruti a key beneficiary of coming turn in demand.
  • Suzuki-Toyota alliance to help set Maruti up for electric vehicles.
  • Expect earnings per share to grow at a compounded rate of 22 percent by March 2020.
  • Bull case price target of Rs 14,400.

Media Reports

  • Mukesh Ambani drives 45% of India Inc’s capex since FY14 (Business Standard).
  • Advertising spends to revive in India in 2018 (Business Standard).
  • Airte, Jio in race to provide cloud services to govt (Business Standard).
  • Thyssenkrupp makes offer to workers for Tata Steel deal (Financial Express).
  • PNB, Indian Bank, Syndicate Bank likely to launch QIPs this month (Mint).
  • BoB buys partners stake in mutual fund business; ownership reshuffle was necessary after a French co with stake in SBI MF bought the MF (Economic Times).
  • Axis, BoB sell part of Essar loan at a discount; Axis sold $90 mn (~Rs 580 cr) at little less than 60 cents a dollar while Bank of Baroda got 71 cents a dollar (Economic Times).