Stocks To Watch: Alkem Labs, Dalmia Bharat, Fortis, JSPL, UltraTech
Here are the stocks to watch out for in Wednesday’s trade.
- Jindal Steel & Power launches QIP at a floor price of Rs 227.15 apiece.
- Fortis to seek shareholders’ approval for RHT acquisition.
- Dalmia Bharat unit provides performance bank guarantee of 10 percent for upfront payment to lenders in Binani Cement.
- Transport Corp acquired a new ship to increase capacity in west coast.
- Alkem Labs: U.S. FDA conducts surprise audit at drugmaker’s Daman plant
Stocks in Asia were poised for modest advances after a rally in crude oil buoyed U.S. equities. Japan is closed for a holiday.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded flat at 10,153 as of 6:55 a.m.
Here Are The Stocks To Watch Out For In Wednesday’s Trade
- Jindal Steel opens QIP at a floor price of Rs 227.15 apiece.
- Alkem Labs: U.S. FDA conducts surprise audit at drugmaker’s Daman plant
- Amtek says Liberty’s resolution plan not yet approved by lenders.
- TCS partners with Saudi Real Estate Refinance company.
- Greenply Industries mulls demerger of MDF business. The board also approved expansion of Veneer Line at Gabon factory.
- Fortis to seek shareholders’ approval for RHT acquisition.
- Newgen Software released Mobile Medicare Enrolment solution for U.S. health plans.
- Ashoka Buildcon declared lowest bidder for two projects worth Rs 447.51 crore.
- Transport Corporation of India acquired one ship with capacity of 26,262 DWT for Rs 48.80 crore.
- Dalmia Bharat unit provides performance bank guarantee of 10 percent for upfront payment to lenders in Binani Cement.
- Mercator to sell vessel for $4.25 million to Best Oasis Ltd; will use proceeds to repay debt.
- Manappuram Finance approved business plan for FY19.
- Transport Corp acquired a new ship to increase capacity in west coast.
Dalmia Bharat provides performance bank guarantee for Binani Cement.https://t.co/r2jPMzeIRO pic.twitter.com/ToFboYRUyI
— BloombergQuint (@BloombergQuint) March 21, 2018
New Offerings
- Mishra Dhatu Nigam IPO opens at an issue price of Rs 87-90 per share.
- Hindustan Aeronautics IPO subscribed 0.99 times on final day.
- Karda Construction IPO subscribed 1.42 times on final day.
- Sandhar Technologies IPO continues on day 3. The issue is subscribed 0.4 times.
Hereâs all you need to know about Mishra Dhatu Nigamâs IPO.https://t.co/ojUlsOmMvh pic.twitter.com/d89GlfAne8
— BloombergQuint (@BloombergQuint) March 21, 2018
F&O Setup
- Nifty March futures closed trading at 10,143.2, premium of 18.9 points from 28.8 points.
- March series: Nifty open interest unchanged, Bank Nifty open interest down 5 percent.
- India VIX ended at 15.6, down 1.3 percent.
- Max open interest for March series at 10,500 call strike (open interest at 63.8 lakh, down 3 percent).
- Max open interest for March series at 10,000 Put (open interest at 66 lakh, up 5 percent).
Finance ministry to meet with primary dealers before near-record bond sales.https://t.co/6ES18XNUkV pic.twitter.com/NeBYqckP8W
— BloombergQuint (@BloombergQuint) March 20, 2018
F&O Ban
- In ban: Dewan Housing, HDIL, IDBI Bank, IFCI, Jindal Steel, JP Associates, Reliance Communications, SAIL.
- New in ban: IFCI, Jindal Steel.
- Out of ban: BEML.
Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.
Active Stock Futures
Bulk Deals
- Jindal Cotex: LTS Investment Fund sold 3.86 lakh shares or 0.9 percent equity at Rs 7.1 each.
- Intrasoft Technologies: Vora Financial services bought 86,329 shares or 0.6 percent equity at Rs 703 each.
IDFC Bank
- Copthall Mauritius Investment sold 96.74 lakh shares or 0.6 percent equity at Rs 50 each.
- Baobab Global Fund bought 96.74 lakh shares or 0.6 percent equity at Rs 50 each.
Sarveshwar Foods
- India Max Investment Fund sold 4.09 lakh shares at Rs 70.5 each.
- Krishen Bal bought 4.06 lakh shares at Rs 70.5 each.
#JustIn | Fortis Healthcare to seek shareholders' approval for RHT acquisition.
— BloombergQuint (@BloombergQuint) March 20, 2018
(Source: Exchange Filing) pic.twitter.com/frdl9bDepg
Brokerage Radar
Credit Suisse on Emami
- Maintained ‘Outperform’ with price target of Rs 1,260.
- Distribution challenges being overcome.
- Wholesale channel stabilised; E-way bill to be closely watched.
- Margins not a major concern for now.
- Focus on double-digit volume growth through a combination of existing and new products.
Credit Suisse on HDFC
- Maintained ‘Outperform’ with price target of Rs 2,250.
- Strong growth in individual segment.
- Competition picking up in corporate segment.
- RERA would lead to some consolidation of the smaller players.
- Open to inorganic opportunities in housing segment.
- Looking at opportunities in health insurance space within HDFC ERGO.
Macquarie on Indian Steel
- Demand in China is just delayed, and not curtailed.
- Domestic prices and demand remains robust.
- Raw material weakness to partially offset steel price weakness.
- Domestic fundamentals remain robust.
- Steel producers to deliver $20-30/t QoQ margin expansion in current quarter.
- Positive on both Tata Steel and JSW Steel post recent correction.
- Tata Steel offers better risk-reward.
JPMorgan on Kotak Mahindra Bank
- Maintained ‘Overweight’; raised price target to Rs 1,200 from Rs 1,100.
- Bank in a strong position to leverage reduced competitive intensity in core banking.
- Elevated valuations supported by strong growth momentum and resilient asset quality.
- Bank's subsidiaries in a sweet spot.
- Kotak Mahindra Bank one of top picks.
ICICI Securities on Dr. Reddy’s
- Upgraded to ‘Add’ from ‘Hold’; cut price target to Rs 2,378 from Rs 2,487.
- Several triggers to revive growth and margins over the next two fiscals.
- US revenue run rate likely to bottom out in current fiscal.
- Price erosion likely to remain in double digit in the next fiscal.
- Several drivers in place to offset base business price erosion and drive U.S. sales.
- Current valuations factor in all negatives.
- Successful outcome of triggers may lead to valuation re-rating.
HDFC Securities on CDSL
- Initiated ‘Buy’ with price target of Rs 425; implying a potential upside of 50 percent from the last regular trade.
- Gem of a business that investor constructive on India in the long term must own.
- Depository business is a proxy for capital market growth.
- Limited scope for any other depository to be set up.
- Diversified revenue stream with high component of annuity revenue.
- Operates at healthy operating margin with embedded non-linearity.
- CDSL gaining market share
- Robust balance sheet and cash generation.
- Pays healthy dividend; Payout could be higher.
- Expect revenue, operating income and ent profit to compound at 22 percent, 28 percent and 20 percent respectively over the fiscal 2017-2020.
- Operating margin to expand to 64 percent by March 2020, compared to 54.4 percent, clocked in the previous fiscal, led by fixed cost business model.
ICICI Direct on NGL Fine-Chem
- Initiated ‘Buy’ with price target of Rs 465 – Rs 505.
- After stagnation, capacity expansion to support future growth.
- Likely adoption of dual source strategy to benefit Indian players.
- Expect revenue, operating income and net profit to compound at 15 percent, 14 percent and 19 percent respectively over the fiscal 2017-2020.
- Stock offers a compelling value proposition based on micro and macro parameters.
UltraTech-Binani side deal will test the insolvency process. And that may be a good thing.https://t.co/UiFrblNzG3 pic.twitter.com/Hnzc4Z567x
— BloombergQuint (@BloombergQuint) March 20, 2018
Media Reports
- Arcelor Mittal likely to offer Rs 3,000 crore to Uttam Galva to settle dues (Financial Express).
- IndiGo, Qatar Airways to amake a joint bid for Air India (Financial Express).