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

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).