Stocks To Watch: Adani Transmission, Federal Bank, Fortis Healthcare, Merck
Here are the stocks to watch out for in Friday’s trade.
- Fortis Healthcare to be out of F&O if it does not declare quarterly results by March 1.
- Bank of Baroda said that it has no exposure to LOUs issued by PNB in the alleged fraud case involving Nirav Modi.
- Adani Transmission gets approval to build Rajasthan power line.
- Merck third quarter profit rose 42 percent to Rs 27 crore.
Asian stocks look set to close out a lackluster week on a positive note on Friday as investors continue to debate the outlook for central bank policy normalisation and the impact of higher bond yields.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.1 percent to 10,399 as of 7:10 a.m.
Indian equity benchmarks edged lower on Thursday dragged down by Reliance Industries, Maruti Suzuki and Axis Bank. The S&P BSE Sensex was little changed at 33,819 and the NSE Nifty 50 Index declined 0.14 percent to 10,383.
Here Are The Stocks To Watch Out For In Friday’s Trade
- Fortis Healthcare: All existing F&O contracts will expire on March 28, and no fresh contracts will be available if the firm fails to submit results for quarters ended September and December 2017 by March 1.
- Federal Bank: Board approved buying 26 percent stake in Equirus Capital.
- Mahanagar Gas will bid for more city gas networks in the next auction.
- Genus Paper & Boards signed two MOUs for setting up Kraft Paper manufacturing plant.
- Bank of Baroda said that it has no exposure to LOUs issued by PNB in the alleged fraud case involving Nirav Modi.
- Dilip Buildcon bagged engineering, procurement, and construction project worth Rs 157 crore from Karnataka government.
- Aditya Birla Idea Payments Bank has commenced operations.
- Great Eastern Shipping completed its sale of vessels.
- Adani Transmission received letter of intent for one inter-state transmission project in Rajasthan.
Scam-hit PNB is said to bank on Bhushan sale for capital boost.https://t.co/xNlJAk84ui pic.twitter.com/ffq3s1JMqU
— BloombergQuint (@BloombergQuint) February 22, 2018
F&O Setup
- Nifty March Futures trading at 10,389, premium of 6 points versus 17 points.
- All series-Nifty Open Interest up 10 percent, Bank Nifty Open Interest unchanged.
- Rollover-Nifty Rollover at 62 percent, Bank Nifty at 65 percent.
- India VIX ended at 14.8, down 6.8 percent.
- Maximum Open Interest for March series at 11,000 call strike, Open Interest at 20 lakh, OI up 9 percent.
- Maximum Open Interest for March series at 10,000 Put, Open Interest at 27 lakh, up 10 percent.
China, India compete for bourses as regional rivalry expands.https://t.co/QzfjATeyDZ pic.twitter.com/3kGuvGzDgF
— BloombergQuint (@BloombergQuint) February 23, 2018
F&O Ban
None.
Alert: Only intraday positions can be taken in stocks which are in F&O ban, in case of rollover of these intraday positions there is a penalty.
Active Stock Futures
Bulk Deals
- Fortis Healthcare: Earc Trust SC 304 sold 36.93 lakh shares, or 0.7 percent equity, at Rs 147.42 each.
- Karnataka Bank: Macquarie Emerging Markets Asian Trading sold 17.48 lakh shares, or 0.6 percent equity, at Rs 128.72 each.
Indiabulls Real Estate
- UBS Principal Capital Asia bought 1.61 crore shares, or 3.4 percent equity, at Rs 211 each.
- Orient Global Cinnamon Capital sold 1.64 crore shares, or 3.5 percent equity, at Rs 211.01 each.
Singh Brothers say they need time to resolve issues.https://t.co/1aXUUlAhYy pic.twitter.com/jXuBx6fJaU
— BloombergQuint (@BloombergQuint) February 22, 2018
Earnings Reactions To Watch
Sanofi India Q4 (YoY)
- Revenues up 11 percent at Rs 670 crore.
- Net profit rose 43 percent to Rs 76 crore.
- Ebitda up 23 percent at Rs 134 crore.
- Margins at 20 percent versus 18 percent.
Merck Q3 (YoY)
- Revenues up 22 percent at Rs 304 crore.
- Net profit rose 42 percent to Rs 27 crore.
- Ebitda up 30 percent to Rs 30.5 crore.
- Margins at 10 percent versus 9.4 percent.
KSB Pumps Q3 (YoY)
- Revenues jumped 31 percent to Rs 328 crore.
- Net profit up 17 percent at Rs 27 crore.
- Ebitda up 12 percent to Rs 42.5 crore.
- Margins at 13 percent versus 15.1 percent.
Anil Agarwalâs Vedanta expected to benefit from higher commodity prices and capacity expansion, reports @OnlyNickey.https://t.co/789VTw0FqB pic.twitter.com/MWtHq5mUg1
— BloombergQuint (@BloombergQuint) February 22, 2018
Brokerage Radar
Deutsche Bank on Siemens
- Maintained ‘Sell’ with price target of Rs 1,030.
- Mobility business separated just before potential uptick.
- It was a growing division with good prospects given Railways and Metro capex.
- Valuations look steep; Expect 26 percent compounded growth rate in net profit over the financial years through March 2020.
Goldman Sachs on Avenue Supermarts
- Maintained ‘Buy’; raised price target to Rs 1,672 from Rs 1,611.
- Expect Avenue to open 24,28 and 30 stores over the next three financial year.
- Lower SSSG estimates to 11.6 percent from 12.3 percent for the financial years between April 2019-March 2021.
- Higher number of stores will lead to some cannibalization.
Edelweiss on Prataap Snacks
- Increasing presence in South and west India and launch of new products to boost revenue.
- Planning to launch 5-6 products over the next three years in sweet snack.
- Sweet snack – relatively untapped and higher margin segment.
- Streamlining procurement process to protect raw material from market volatility.
- Targeting revenue to compound at 18‐20 percent over the next three years.
- Strategic location of plants, outsourcing bolster distribution network.
- Product mix to improve return on equity.
Jefferies on Federal Bank
- Maintained ‘Buy’ with price target of Rs 145.
- Acquisition augurs well with strategy of building up corporate & institutional banking team.
- Bank is significantly capitalized and can easily pay for this acquisition.
- Primary synergies lie in broadening product offerings to corporate & SME clients.
Neelkanth Mishra believes there could be some pressure on the rupee and domestic liquidity. pic.twitter.com/E6TeIL9D0D
— BloombergQuint (@BloombergQuint) February 22, 2018
Media Reports
- ITC merges its tobacco leaf, agri-business units. (Economic Times)
- Religare’s new auditors pull up PW over 'Unmodified Report' (Economic Times)
- JSW Group offers highest bid for Jaypee Infra, offering a little over Rs 9,900 crore to bank (Economic Times)
- Axis Bank asks CIO Amit Sethi to resign following whistleblower complaint. (Economic Times)
- Jewellery Export Council may cancel Firestar, Gitanjali Gems’ membership. (Economic Times)