Stocks To Watch: Thomas Cook, Bharti Airtel, Shilpi Cables, Jet Airways
A weaker yen supported Japanese equities at the start of Tuesday trading after the dollar climbed while investors maintained focus on the U.S. Treasury market, where the 10-year note flirted with 3 percent.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.4 percent to 10,550 as of 7:15 a.m.
Here Are The Stocks To Watch Out For In Tuesday’s Trade:
- Thomas Cook shareholders to get 1,889 shares of Quess Corp for every 10,000 shares held
- Shilpi Cables gets 90-day extension for corporate insolvency resolution.
- Music Broadcast to acquire radio business of Ananda Offset on slump sale basis
- Geojit Financial to set up asset management company
- MOIL will procure its entire silica sand requirement from Hindustan Copper’s Madhya Pradesh unit
- JSW Steel, Aion found eligible resolution application for Monnet Ispat: Bloomberg
- Swaraj Engines board recommends 500 percent dividend
- Jet Airways signs codeshare pact with Aeromexico
- Astron Paper enters into MoU with Balaram Papers to take over its Gujarat plant
- Bharti Airtel plans network expansion in Gujarat with 6,000 new sites and 2,000 kilometres of optic fiber in FY19 to strengthen mobile broadband footprint
- India considering sugar cane production subsidy, GST cut on ethanol
- Nifty April futures closed trading at 10,585.5 with a premium of 1.45 points versus 21.5 points
- Nifty May futures trading at 10,612.8 with premium of 28.8 points
- Nifty rollover at 18 percent, Bank Nifty rollover at 14 percent
- All series: Nifty open interest up 2 percent, Bank Nifty open interest up 5 percent
- India VIX ended at 13.1, up 1.6 percent
- Max open interest for April series at 10,700 (open interest at 48.5 lakh, down 3 percent)
- Max open interest for April series shifts to 10,500 (open interest at 57.7 lakh, up 5 percent)
- In ban: Balrampur Chini, Dewan Housing, Jet Airways, JP Associates, TV18 Broadcast
- Out of 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
Nifty Earnings To Watch
Other Earnings To Watch
- Coromandel International
- GIC Housing Finance
- ICICI Prudential Life
- IDFC Bank
- Network18 Media
- Oberoi Realty
- Persistent Systems
- TV18 Broadcast
- Zensar Tech
- Bharat Immunologicals
- DCM Shriram
- India Grid Trust
- Pioneer Distilleries
- Reliance Home Finance
- Sadbhav Engineering
- Supreme Petrochem
- Tejas Networks
Earnings Reactions To Watch
Bharat Financial (Q4, YoY)
- Revenue from operations up 46.5 percent at Rs 539 crore.
- Net profit of Rs 210.5 crore nersus net loss of Rs 235 crore.
- Provisions at Rs 0.6 crore versus Rs 8.6 crore (QoQ).
- Loan portfolio growth at 38 percent.
- Loan disbursements up 26 percent.
Bharti Infratel (Q4, QoQ)
- Revenue up 0.2 percent to Rs 3,662 crore.
- Ebtida down 0.4 percent to Rs 1,606 crore.
- Ebitda margins at 43.8 percent versus 44.1 percent.
- Net profit up 3.6 percent at Rs 606 crore.
- Tenancy ratio at 2.3 times versus 2.38 times.
Reliance Naval And Engineering (Q4, YoY)
- Revenue down 85.5 percent at Rs 33 crore.
- Net loss of Rs 409 crore versus net loss of Rs 140 crore.
- Ebitda loss at Rs 216 crore versus Ebitda profit of Rs 5 crore.
3i Infotech (Q4, QoQ)
- Revenue up 17.5 percent at Rs 279 crore.
- Net profit unchanged at Rs 23 crore.
- Ebit up 12 percent at Rs 43 crore.
- Margin at 15.4 percent versus 16.2 percent.
GNFC (Q4, YoY)
- Revenue up 46.5 percent at Rs 1,764 crore.
- Net profit up 38 percent at Rs 329 crore.
- Exceptional Gain of Rs 292 crore in base quarter.
- Ebitda up 16.5 times at Rs 471 crore.
- Margin at 26.7 percent versus 2.4 percent.
Swaraj Engines (Q4, YoY)
- Revenue up 15 percent at Rs 185 crore.
- Net profit up 20 percent at Rs 18 crore.
- Ebitda up 16.7 percent at Rs 28 crore.
- Margin at 15.1 percent versus 14.9 percent.
LIC Housing Finance (Q4, YoY)
- Net Interest Income down 1.4 percent at Rs 1,058 crore.
- Net profit up 2 percent at Rs 539 crore.
Indiabulls Ventures (Q4, YoY)
- Revenue up 131 percent at Rs 273 crore.
- Net profit up 13 percent at Rs 61 crore.
- Ebitda down 60 percent at Rs 16 crore.
- Margin at 5.9 percent versus 34 percent.
Kewal Kiran Clothing (Q4, YoY)
- Revenue flat at Rs 120 crore versus Rs 121 crore.
- Net profit down 19 percent at Rs 19.5 crore.
- Ebitda down 16 percent at Rs 26 crore.
- Margin at 21.7 percent versus 25.6 percent.
Reliance Infra (Q4, YoY)
- Revenue up 4 percent at Rs 5,167 crore.
- Net profit at Rs 160 crore versus Rs 41 crore.
- Ebitda up 49 percent at Rs 829 crore.
- Margin at 16 percent versus 11.2 percent.
- Minda Corp: Ashish Kacholia bought 10.80 lakh shares or 0.5 percent equity at Rs 182 each.
- Cimmco: Equity Intelligence India sold 1.11 lakh shares or 0.4 percent equity at Rs 94.8 each.
- Norges Bank - Government pension fund bought 17.50 lakh shares or 1.7 percent equity at Rs 508 each.
- Nomura India Investment Fund Mother Fund sold 17.54 lakh shares or 1.7 percent equity at Rs 508 each.
- Ratnabali Investment bought 43 lakh shares or 5 percent equity at Rs 83.58 each.
- Tarish Investment and Trading Company sold 31 lakh shares or 3.6 percent equity at Rs 83 each.
- SKM Egg Products Export (India) Ltd circuit filter revised to 10 percent.
- NBCC last trading day before stock split to Re 1 from Rs 2 per share.
- NSE announced physical settlement for 46 stocks trading in F&O segment.
Who’s Meeting Whom
- Hikal to meet investors/analysts on April 24.
- Shalby to meet Motilal Oswal AMC on April 24.
- KDDL to meet investors/analysts from April 24–25.
- Ganesha Ecosphere to meet investors/analysts on April 24.
- Garnet International promoter Suresh Gaggar acquired 30,331 shares on April 23.
- Liberty Shoes promoter Arpan Gupta sold 6,500 shares on April 20.
- JP Associates promoter Prabodh Vora sold 10,000 shares on April 18.
- KM Sugar Mills promoter Francoise commerce sold 2.97 lakh shares on April 20.
- Adani Power promoter Pan Asia Trade & Investments acquired 45 lakh shares on April 20.
- SH Kelkar promoter Kedar Vaze sold 77,019 shares from April 19–20.
HSBC on M&M
- Maintained ‘Buy’; hiked price target to Rs 890 from Rs 840
- March quarter results and delay in new launches to not impact the current and next fiscal estimates.
- Price target hiked to largely factor in the increase in subsidiaries’ values.
- Monsoon forecast positive for the rural-driven tractor industry.
- Stable existing auto portfolio and strong tractor market provide robust earnings visibility.
Nomura on Alkem Labs
- Upgraded to ‘Buy’ from ‘Neutral’; cut price target to Rs 2,089 from Rs 2,298.
- Stock fall factors in concerns on Daman.
- Cut earnings per share estimates by 13 percent and 9 percent for the current and the next financial years to factor in lower U.S. sales.
- Positive stance driven by high contribution from India.
- India business to sustain growth ahead of broader market.
Credit Suisse on India Life Insurance
- APE growth moderated, but structural drivers intact.
- Macroeconomics drivers in place for sustained growth.
- Players having strong bank tie-ups outperforming.
- Rising RoEV will help sustain elevated multiples.
- ICICI Pru, SBI Life top picks; HDFC Life too expensive.
- ICICI Pru: Maintained ‘Outperform’; cut price target to Rs 495 from Rs 510.
- SBI Life: Initiated ‘Outperform’ with a price target of Rs 716.
- HDFC Life: Initiated ‘Outperform’ with a price target of Rs 496.
Motilal Oswal on Infosys
- Maintained ‘Buy’ with a price target of Rs 1,330.
- Granular strategy articulated around digital, core business, sales and talent.
- Company cited that the current financial year will be a year of stabilization.
- Next financial year to be a year of momentum building and the financial year-ending March 2021 will be a year of acceleration
- Expect current financial year to be a better year for BFS than the previous financial year.
- Multi-pronged investments in sales to focus on digital, large deals and new accounts.
Credit Suisse on Infosys
- Maintained ‘Neutral’ with a price target of Rs 1,100.
- New strategy well-articulated, but similar to peers; execution would be the key.
- Management indicated intention to make sales and marketing more robust.
- No new clarity on new margin guidance.
- Investments cited by the company are valid for Infosys.
Nomura on Bharti Infratel
- Maintained ‘Neutral’ with a price target of Rs 354.
- Earnings beat estimates in March quarter; Tenancy exits accelerate.
- Net profit beat driven by spike in other income.
- Reasonable results as telco consolidation is taking a toll on tenancies.
Credit Suisse on Bharti Infratel
- Maintained ‘Outperform’; cut price target to Rs 400 from Rs 430
- March quarter results were inline with known headwinds.
- Maintained Ebitda and cash flow at healthy levels.
- Energy reimbursement margins touched an all-time high of 11 percent.
- Expect next couple of quarters to remain subdued.
Morgan Stanley on Cement
- Cement prices have strengthened/been flattish across region in Apr 2018.
- Expect prices to remain firm till mid/end May.
- Expect demand growth and rising utilisation to lend pricing power.
- Pricing power to drive margin expansion in the next financial year.
- Dealers are skeptical about the sustainability of price hike given muted demand growth.