A man looks up at an electronic screen displaying stock figures at the the Bombay Stock Exchange (BSE) in Mumbai, India (Photographer: Prashanth Vishwanathan/Bloomberg)  

Stocks To Watch: Adani Ports, Amtek Auto, RCom, Muthoot Capital Services

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Summary
  • Sterlite Technologies board to consider raising funds through issue of securities on April 25.
  • RCom says NCLAT to hear tower sale appeal on April 18.
  • Adani Ports signs long-term regasification pact with Indian Oil for Dhamra LNG Terminal.
  • Fortis board to meet on April 19 to consider various offers received.
  • JM Financial unit acquires additional 8.78 lakh shares in Spandana.

Stocks in Asia edged higher at the open on Tuesday as investors assessed early indications from America’s corporate earnings season and traders awaited a slew of data on China’s economy.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 10,535 as of 7:15 a.m.

Here Are The Stocks To Watch Out For In Tuesday’s Trade

  • WS Industries proposed a one-time settlement with SBI and discussed settlement with Edelweiss Arc among others.
  • Sobha will invest Rs 500 crore for residential project in GIFT City, Gujarat.
  • Sterlite Technologies board to consider raising funds through issue of securities on April 25.
  • Omkar Specialty Chemicals says Bank of Baroda classified its loan account as NPA.
  • Bajaj Electricals bags orders worth Rs 3,578 crore for rural and urban electrification projects in Uttar Pradesh.
  • Reliance Communications says NCLAT to hear tower sale appeal on tower sale on April 18.
  • BlueStar signs up with Sands International and its partners for distribution of products in Saudi Arabia.
  • Goa Carbon resumes operations at Orissa plant which was shut for maintenance.
  • Adani Ports signs long term regasification pact with Indian Oil for Dhamra LNG Terminal.
  • Fortis Board to meet on April 19 to consider various offers received.
  • HDFC says AMC units FY18 total revenue up 18 percent (YoY) to Rs 1,867 crore, net profit up 31 percent to Rs 721 crore.
  • Alok Industries says resolution professional seeks liquidation.
  • Amtek Auto says submitted resolution plan with NCLT.
  • Religare Enterprises received order from HC stating that the long stop date under SPA cannot be extended further.
  • JM Financial unit acquires additional 8.78 lakh shares in Spandana.

F&O Setup

  • Nifty April futures closed trading at 10,543 with a premium of 14.6 points versus 9.8 points.
  • April series: Nifty open interest up 1 percent, Bank Nifty open interest up 4 percent.
  • India VIX ended at 14.2, up 0.8 percent.
  • Max open interest for April series at 10,700 (open interest at 44 lakh, up 9 percent).
  • Max open interest for April series at 10,300 (open interest at 55 lakh, up 6 percent).

F&O Ban

  • In ban: Balrampur Chini, IRB Infra, JP Associates, TV18 Broadcast, Reliance Communications
  • New in ban: Reliance Communications

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Active Stock Futures

Bulk Deals

  • GSS Infotech:Nomura Singapore bought 1 lakh shares or 0.6 percent equity at Rs 61 each.
  • Majesco:Promoter Sudhakar Ram sold 1.50 lakh shares or 0.5 percent equity at Rs 520 each.
  • Goodluck India:Union KBC Equity Fund sold 2.35 lakh shares or 1 percent equity at Rs 86.74 each.

Teamlease Services

  • Franklin India Smaller Companies Fund bought 3 lakh shares or 1.8 percent equity at Rs 2,150 each.
  • Promoter HR Offshore Ventures PTE sold 1.70 lakh shares or 1 percent equity at Rs 2,150 each.
  • Promoter NED Consultants LLP sold 85,483 shares or 0.5 percent equity at Rs 2,150 each.

Earnings To Watch

  • Crisil
  • Muthoot Capital Services
  • Orchid Pharma
  • Tata Sponge Iron
  • 5paisa Capital
  • Gujarat Hotels
  • International Travel House
  • Onelife Capital Advisors
  • Schaeffler India

Earnings Reactions To Watch

Lloyds Metals (Q4, YoY)

  • Revenue at Rs 109 crore versus Rs 73 crore
  • Net profit at Rs 9.9 crore versus Rs 4.7 crore
  • Ebitda at Rs 7 crore versus Rs 12 crore
  • Margin at 6.4 percent from 16.4 percent

Jay Bharat Maruti (Q4, YoY)

  • Revenue down 1 percent at Rs 480 crore
  • Net profit down 14 percent at Rs 18 crore
  • Ebitda up 14 percent at Rs 48 crore
  • Margin at 10 percent versus 8.7 percent

Brokerage Radar

Angel Broking on Parag Milk Foods

  • Initiated ‘Buy’ with a price target of Rs 333.
  • Likely to be one of the key beneficiaries of shift towards organized sector.
  • Product portfolio shifting towards high margin products.
  • Margin expansion to be highest in industry by March 2020.
  • Reducing leverage and improving return ratios.
  • Expect revenue and net profit to compound at 13 percent and 27 percent respectively over the fiscal 2018-2020.

IIFL on Prataap Snacks

  • Maintained ‘Buy’ with a price target of Rs 1,720.
  • Attractively placed to tap the huge opportunity in organised snacks.
  • Multiple revenue drivers in sight.
  • Expect revenue and net profit to compound at 19 percent and 107 percent over the fiscal 2017-2020.
  • Margin to improve led by raw material cost saving and favorable mix.
  • Prataap is attractively valued to nearest listed competitor.

Credit Suisse on NTPC

  • Maintained ‘Outperform’ with a price target of Rs 190.
  • Coal shortage situation has not eased.
  • Coal stocks remained well below last year level.
  • NTPC plants continue to face availability issue on coal.
  • Valuations attractive with multiple earnings growth catalysts.

Motilal Oswal on L&T Finance

  • Maintained ‘Buy’ with a price target of Rs 240; implying a potential upside of 41 percent from the last regular trade.
  • Post equity raise, NBFC well capitalised for growth.
  • Don’t need to raise equity capital at least for next 3-4 years.
  • Non-fund based businesses on a strong growth trajectory.

CLSA on Nestle

  • Downgraded to ‘Outperform’ from ‘Buy’; hiked price target to Rs 9,750 from Rs 8,950.
  • Working-capital improvement and strong free cash flow generation seen in 2017.
  • Return ratios improved, but remain below the past peak.
  • Aggression on launches has increased, but near-flat advertising spends disappoint.
  • Downgraded on 13 percent rally seen in past one month.

CLSA on M&M

  • Maintained ‘Buy’; raised price target to Rs 960 from Rs 910.
  • Rural demand outlook improved with normal monsoon forecast.
  • Big hike in government support prices for agri commodities on the anvil.
  • Launch of new MPV to boost utility vehicle segment volumes.
  • Good volume growth outlook.
  • Valuations attractive despite better earnings outlook.

Brokerages on India’s Monsoon Forecast

CLSA says

  • Normal monsoon forecast to aid rural recovery.
  • Agri output likely to stay steady.
  • Expect rural wage growth to pick up.
  • Key beneficiaries: ITC, Emami, M&M, Godrej Consumer and Ramco.

Morgan Stanley says

  • IMD projects normal monsoon.
  • Don't expect any adverse impact on underlying food inflation trends.
  • Government's procurement policy of crops will be key to watch.

Kotak says

  • Normal monsoon on the cards.
  • Premature to conclude on effects on growth and prices.
  • Forecast to bode well for the rural sector.
  • Expect extended pause from the RBI.
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