Stocks To Watch: Bharti Infratel, HUL, Sun Pharma, Zee Entertainment
Here are the stocks to watch out for in Wednesday’s trade.
- Sun Pharma gets license to sell the generic version of Linzess in U.S. from Feb. 1, 2031 after settling patent litigation.
- SAL Steel announces closure of corporate insolvency process.
- Amber Enterprises India IPO opens at an issue price of Rs 855-859 per share.
Asian stocks pulled back from record highs, following declines seen in their U.S. counterparts and as the yen strengthened to a four-month high against the dollar.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 10,712.50 as of 7:05 a.m.
Here Are The Stocks To Watch Out For in Wednesday’s Trade
- Sun Pharma gets a license to sell the generic version of Linzess in U.S. from Feb. 1, 2031 after settling patent litigation.
- Symphony’s wall mounted air cooler patented in South Africa; launched 2 new product ranges.
- SAL Steel announces closure of corporate insolvency process.
- GAIL, Gazprom sign pact for re-negotiated long-term LNG sale.
- Texmaco Rail considering setting up logistics hub and food park in West Bengal.
- Pioneer Distilleries’ workers at its Nanded, Maharashtra manufacturing plant go on strike.
Tata Consultancy Services signs a $690 million deal with M&G Prudential.https://t.co/1jOOr8n0vI pic.twitter.com/iWU7ebaAnj
— BloombergQuint (@BloombergQuint) January 16, 2018
F&O Setup
- Nifty January Futures trading at 10,709.5, premium of 9.5 points from 1.8 points
- January Series: Nifty open interest up 1 percent; Bank Nifty open interest down 8 percent
- India VIX ended at 14.08, down 1.5 percent
- Max open interest for January series at 11,000 Call (open interest at 52.2 lakh, up 9 percent)
- Max open interest for January series at 10,500 Put (open interest at 75 lakh, down 9 percent)
HUL says it will respond to the notice from the anti-profiteering body, stating its position. https://t.co/A6c85q9SMY
— BloombergQuint (@BloombergQuint) January 16, 2018
F&O Ban
- In ban: Balrampur Chini, Capital First, Dish TV, Fortis, HCC, IFCI, India Cement, Jet Airways, Jindal Steel, Jain Irrigation, JP Associates, Kaveri Seed, Reliance Communications, Reliance Power, Wockhardt
- New in ban: Balrampur Chini, India Cements, HCC
- Out of ban: GMR Infra, HDIL, Reliance Capital
Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.
Active Stock Futures
Bulk Deals
- Punjab Alkalies & Chemicals: IDBI Banks sold 2.61 lakh shares or 1 percent equity at Rs 35.5 each.
- Prozone Intu: Promoter Nigam Patel Family Trust sold 9 lakh shares or 0.6 percent equity at Rs 67.25 each.
Bharti Airtel
- SRS Partners (Cayman) LLC bought 3.86 crore shares or 1 percent equity at Rs 499.1 each.
- Merrill Lynch Markets Singapore PTE sold 3.86 crore shares or 1 percent equity at Rs 499.1 each.
Amber Enterprisesâ 3-day IPO that opens tomorrow. Hereâs all you need to know. https://t.co/ZFhs9BKHtT pic.twitter.com/GZxC9d4MUB
— BloombergQuint (@BloombergQuint) January 16, 2018
Nifty Earnings To Watch
- Bharti Infratel
- Hindustan Unilever
- Zee Entertainment
Other Earnings To Watch
- Adani Power
- Adani Transmission
- DCB Bank
- Jubilant Life Sciences
- Jyothy Laboratories
- Mindtree
- Srei Infrastructure Finance
- Sterlite Technologies
- Tata Sponge Iron
- Thirumalai Chemicals
Earnings Reactions To Watch
Jay Bharat Maruti Q3 (YoY)
- Revenue up 13 percent at Rs 435 crore
- Revenue up 13 percent at Rs 435 crore.
- EBITDA up 11 percent at Rs 36.6 crore.
- Margin at 8.4 percent from 8.5 percent.
Hatsun Agro Products Q3 (YoY)
- Revenue up 7 percent at Rs 1,013 crore
- Revenue up 7 percent at Rs 1,013 crore.
- EBITDA down 6 percent at Rs 87 crore.
- Margin at 8.6 percent from 9.8 percent.
Agro Tech Foods (YoY)
- Revenue up 3 percent at Rs 214.55 crore.
- Net profit up 15 percent at Rs 9 crore.
- EBITDA up 4 percent at Rs 17.85 crore.
- Margin at 8.3 percent from 8.25 percent.
Domestic-driven sectors will be the overriding theme for the Indian market in 2018, says @Avendus' @ranuvohra. https://t.co/iAeAwsnidM
— BloombergQuint (@BloombergQuint) January 16, 2018
Brokerage Radar
KR Choksey on ABB India
- Initiated ‘Buy’ with price target of Rs 1,823.
- Higher government spending on power ABB offers strong growth prospects.
- ABB’s Power Grids segment to support financial performance over medium to long term.
- Triggers: National Solar Mission, EVs in India and Railway modernisation and electrification.
- Expect order flow, revenue and net profit to grow at a compounded rate of 25 percent, 23 percent and 42.2 percent respectively over the years till 2019.
- Robust execution to support strong top-line growth.
- Increase in localization of manufacturing projects to lower operational cost.
- Higher return ratios to help company demand higher valuations.
Daiwa Capital Markets on Crompton Greaves Consumer
- Initiated ‘Outperform’ with price target of Rs 300.
- India’s electrical industry to see double-digit growth over the next five years.
- Crompton is well positioned to seize these opportunities.
- Impressive franchise, strong management pedigree and growth outlook.
- Focus on distribution, branding and segments to support sales growth.
- Company has multiple levers for growth.
- Positives: premiumisation, entry into new categories, brand building, and expanding distribution.
- Expect revenue and earnings per share to grow at a compounded rate of 17 percent and 25 percent respectively over the financial years through March 2020.
- Valuations not cheap, but strong sales and profits to support.
- Bull case price target of Rs 340.
Motilal Oswal on Laurus Labs
- Initiated ‘Buy’ with a price target of Rs 651.
- In a sweet spot to get business in regulated market due to cost efficiency and consistent compliance.
- Formulations business in take-off mode.
- Positive on forward integration to formulation in regulated markets.
- Expect U.S. sales to multiply as company targets 30 ANDA filings over three years.
- Expect revenue, operating income and net profit to grow at a compounded rate of 17 percent, 20 percent and 28 percent respectively over the financial years till March 2020.
- Addition of formulations and healthy momentum in API business to lead growth.
- Volume growth to drive ARV and Hep-C base business.
- Interest outgo to reduce; Capex to continue to support growth.
- Return ratios to improve on higher asset utilization.
- Bull case price target of Rs 769: Expect revenue and net profit to grow at a compounded rate of 20 percent and 35 percent respectively over the financial years till March 2020.
Credit Suisse on Godrej Agrovet
- Initiated ‘Neutral’ with price target of Rs 630.
- Godrej Agrovet is a diversified agri-business with strong pedigree.
- Indian agricultural value chain offers business opportunities.
- Brand and corporate pedigree a key advantage, diversification hedges risks.
- Expect earnings to grow at a compounded rate of 18 percent over the financial years through March 2020.
- Good long-term potential, but valuations leave little upside.
- Key earnings driver will be crop protection which will see new launches and exports growth.
- Animal feed will be a drag as it is facing headwinds.
- New product introductions a key lever for growth may come in from March 2019.
- Dairy margins will bounce back in the second half of the current financial year, likely to see gradual margin expansion from thereon.
- Poultry to see much faster growth if Godrej management takes over control of JV.
- Bull case price target of Rs 725.
Morgan Stanley on FMCG
- Top pick shifts from Titan to Jubilant Foodworks.
- Favorable demand trends and high visibility of margin expansion offer a clear runway for earnings growth.
- Jubilant Foodworks: Maintained ‘Overweight’; raised price target to Rs 2,400 from Rs 1,900.
- Future Retail: Maintained ‘Overweight’; raised price target to Rs 715 from Rs 660.
- Titan Company: Maintained ‘Overweight’; raised price target to Rs 1,050 from Rs 920.
- United Spirits: Downgraded to ‘Equal-weight’ from ‘Overweight’; raised price target to Rs 4,000 from Rs 2,900.
CLSA on ICICI Lombard
- Maintained ‘Buy’; raised price target to Rs 970 from Rs 820.
- Healthy premium growth with sub-100 percent combined ratio; Rates a concern.
- Competitive intensity & pricing environment improving; Regulations supportive.
- New third-party motor law may be passed in upcoming budget session; Significant positive.
- Expect earnings to grow at a compounded rate of 24 percent over the financial years till March 2020, led by healthy growth in premiums.
CLSA on GAIL
- Maintained ‘Sell’ with a price target of Rs 405.
- Supplies from Gazprom to expand Gail’s long-term LNG headache.
- This is a negative surprise, as popular belief was that Gail would avoid this contract.
- An oversupplied global LNG market will make it challenging to place these long-term volumes.
- Stock is ignoring risks of large long-term U.S. LNG portfolio.
BNP sees value in Indian equities even after multiple records.https://t.co/cuYB83vTlr pic.twitter.com/buPfDu0Z3O
— BloombergQuint (@BloombergQuint) January 16, 2018
Media Reports
- Ace Investor (Rakesh Jhunjhunwala), tech czar (Azim Premji’s Premji Invest) in race for Star Health & Allied Insurance (Times of India).
- Piramal Finance likes hospitality, plans more bets. (Piramal Enterprises) (Economic Times).