Pedestrians look up at an electronic ticker board showing a budget news report outside the Bombay Stock Exchange (BSE) in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: TCS, BHEL, Eveready, Fortis, Religare

Summary
  • TCS announces 1:1 bonus issue along with fourth quarter results; Q4 net profit up 6 percent to Rs 6,904 crore.
  • Fortis Healthcare approves evaluation of binding offers; will have advisory panel to assess rival offers.
  • CCI orders Eveready to pay Rs 171.55 crore in fine for cartelisation
  • Religare raises Rs 145 crore via issue of 11.14 crore warrants at Rs 52.30 each on preferential basis.

Asian stocks dipped as technology shares came under earnings-related pressure. Equity indexes in Japan, Australia and South Korea were lower.

Tech shares were among the biggest losers after Taiwan Semiconductor Manufacturing Co.’s disappointing forecast rekindled concerns the the handset boom is waning.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.4 percent to 10,548 as of 7 a.m.

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

  • TCS announces 1:1 bonus issue along with fourth quarter results.
  • Fortis Healthcare approves evaluation of binding offers; will have advisory panel to assess rival offers. The company also received a new unsolicited offer from Radiant Life Care to buy the hospital business for Rs 165 per share.
  • UBS Principal Capital Asia hikes stake by 0.43 percent in Fortis to 5.21 percent.
  • NTPC to exit joint venture with BHEL.
  • Info Edge invests Rs 3 crore in marketplace firm Bizcrum Infotech.
  • Thomas Cook says Supreme Court restored order passed by Competition Commission of India imposing penalty of Rs 1 crore. The board also approved acquisition of 4.44 percent stake in Travel Corporation (India) for Rs 16.69 crore.
  • Indian Metals & Ferro Alloys gets Rs 123 crore notices for excessive mining.
  • CCI orders Eveready to pay Rs 245 crore in fine. (Bloomberg)
  • Lasa supergenerics gets WHO-GMP certificate for unit situated at Mahad.
  • Liberty House UK moves NCLT to challenge resolution professional's decision in ABG Shipyard.
  • Kakatiya Cement resumes operation at Telangana plant after its closure on pollution grounds.
  • JB Chemicals gets orders from pollution control board directing closure of formulation unit at Daman.
  • Religare raises Rs 145 crore via issue of 11.14 crore warrants at Rs 52.30 each on preferential basis.
  • Mahindra forms unit in Bangladesh Mahindra Susten.

F&O Setup

  • Nifty April Futures closed trading at 10,578 with a premium of 12.8 points
  • April series: Nifty open interest unchanged, Bank Nifty open interest up 1 percent
  • India VIX ended at 13.7, down 2.5 percent
  • Max open interest for April series at 10,700 (open interest unchanged at 50.6)
  • Max open interest for April series shifts to 10,500 (open interest at 54.4 lakh, up 12 percent)

F&O Ban

  • In ban: Balrampur Chini, IRB Infrastructure Developers, Jet Airways (India), Jaiprakash Associates, Reliance Communications, TV18 Broadcast
  • New in ban: Balrampur Chini

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

  • Sundaram Finance Holding: Reliance MF bought 30 lakh shares or 2 percent equity at Rs 151.65 each.

Hathway Cables:

  • Old Bridge Capital Management bought 1.64 crore shares or 2 percent equity at Rs 39.5 each.
  • Morgan Stanley Asia (Singapore) Pte sold 1.79 crore shares or 2.2 percent equity at Rs 39.5 each.

Uniply:

  • Malabar India Fund bought 14.44 lakh shares or 6 percent equity at Rs 411 each.
  • Promoter Keshav Narayan Kantamneni sold 14.50 lakh shares or 6.1 percent equity at Rs 411 each.

Nifty Earnings To Watch

  • Indiabulls Housing Finance

Other Earnings To Watch

  • Amal
  • Biopac India Corporation
  • Harmony Capital Services
  • Sasken Technologies

Earnings Reactions To Watch

TCS (Q4, QoQ)

  • Revenue up 4 percent at Rs 32,075 crore.
  • Net profit up 6 percent at Rs 6,904 crore.
  • EBIT up 5 percent at Rs 8,147 crore.
  • Margin at 25.4 percent from 25.2 percent.
  • Dollar revenue up 3.9 percent at $4.97 billion.

Reliance Power (Q4, YoY)

  • Revenue down 2 percent at Rs 2,428 crore.
  • Net profit up 16 percent at Rs 250.5 crore.
  • Ebitda up 2 percent at Rs 1,084 crore.
  • Margin at 44.6 percent from 43.2 percent.

Mahindra CIE (Q1, YoY)

  • Revenue up 32 percent at Rs 612 crore.
  • Net profit up 132.5 percent at Rs 38.6 crore.
  • Ebitda up 69 percent at Rs 74.5 crore.
  • Margin at 12.2 percent from 9.5 percent.

Cyient (Q4, QoQ)

  • Revenue up 8 percent at Rs 1,062 crore.
  • Net profit up 34 percent at Rs 118 crore.
  • Ebitda up 4.5 percent at Rs 117 crore.
  • Margin at 11 percent from 11.4 percent.

Macroeconomic Data

  • India March refinery output at 2.11 crore tonnes versus 2.13 tonnes (YoY).
  • India March gas production at 2.78 bcm versus 2.75 bcm (YoY).
  • India March crude oil output at 3.04 million tonnes from 3.09 million tonnes (YoY).

Trading Tweaks

  • Sequent Scientific circuit filter revised to 20 percent and shifted to B group.
  • Indiabulls Ventures circuit filter revised to 10 percent.
  • Mishra Dhatu Nigam and MBL Infrastructures circuit filter revised to 5 percent.

Who’s Meeting Whom

  • Purvankara to meet White Oak Capital Mgmt on April 20.
  • Crisil to meet First State Investments on April 20.
  • Navin Fluorine to meet investors/ analysts on April 20.

Insider Trades

  • VIP Industries promoters acquired 1.47 lakh shares on April 13.
  • Plastiblends promoter Jyoti V Kabra acquired 2,559 shares from April 12–16.
  • Aarti Industries promoter Chandrakant Gogri sold 12,000 shares from April 16-18.
  • Arcotech promoter Vasudha Commercial Pvt. Ltd sold 10 lakh shares on April 18.
  • CL Educate promoter Satya Narayanan acquired 2,000 shares on April 19.

Brokerage Radar

Motilal Oswal on Cyient

  • Maintained ‘Buy’; raised price target to Rs 750 from Rs 675.
  • March quarter’s revenue came inline; margins beat.
  • Strong double-digit growth despite challenges.
  • Upward momentum bodes well for the next year.
  • Expect industry leading growth coupled with long-term opportunities.

Brokerages On IndusInd Bank

Nomura

  • Maintained ‘Buy’ with a price target of Rs 1,950
  • March quarter’s net profit missed marginally due to lower growth in income fees.
  • Steady performance on all metrics.
  • Asset quality stable - No major issues from divergence.
  • Completion of the merger would be the next stock catalyst.

Axis Capital

  • Maintain ‘Buy’ with a price target of Rs 2,060
  • March quarter’s results in line led by superior growth in advances and stable margins
  • Financial year 2016-17 net divergence miniscule
  • Loan growth remains strong at 28 percent; growth in vehicle segment too picked up.
  • Watchful on the developments on the acquisition front.

Investec

  • Maintained ‘Hold’; raised price target to Rs 1,975 from Rs 1,325.
  • Results positive on growth but weak on NIMs.
  • Performance weaker than usual owing to higher asset quality stress.
  • Major concerns is relatively higher dependence on wholesale funding.
  • Expect weaker NIMs and pressure on the consumer yields in the current financial year.

Brokerages On TCS

Prabhudas Lilladher

  • Maintained ‘Accumulate’; raised price target to Rs 3,380 from Rs 2,770.
  • March quarter’s results strong with beat on revenue and net profit.
  • Strong exit revenue run‐rate raises momentum.
  • Expect TCS to show acceleration in revenue growth in the current financial year.
  • TCS can deliver higher constant currency growth compared to Accenture.

Motilal Oswal

  • Maintained ‘Neutral’; raised price target to Rs 3,000 from Rs 2,700.
  • In-line quarter; Positive outlook on growth.
  • Green shoots in North America BFS.
  • Robust growth seen in energy & utilities and travel & hospitality.
  • Key trigger: Incremental improvements in BFS.
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