A man reads a newspaper at a securities brokerage in Beijing, China. (Photographer: Qilai Shen/Bloomberg)

Stocks To Watch: Wipro, Kitex, Future Retail, Emami

Asian stocks traded mixed following a choppy U.S. session that saw equities close slightly higher as investors assessed the ongoing earnings season and the implications of rising U.S. bond yields.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded rose 0.3 percent o 10575 as of 7:05 a.m.

Here Are The Stocks To Watch In Thursday’s Trade

  • Wipro to sell hosted data center service operations for $450 million to Ensono
  • Kitex Garments will form two new subsidiaries and invest Rs 200 crore in each of them
  • Future Retail says Mumbai bench of NCLT approved scheme of arrangement with Hypercity
  • Indoco Remedies gets statement of GMP non-compliance from UK-MHRA for Goa plant-1
  • Emami to consider bonus issue on May 3
  • Soril Holdings & Ventures approves issue of shares worth up to Rs 330 crore to FPIs including Steadview Capital Mauritius, ABG Capital and LTR Focus Fund
  • Shah Alloys signs settlement pact with ARCIL
  • Airtel to transfer core network infrastructure assets to unit Nxtra Data and sell submarine cables to Network i2i
  • Cadila Healthcare says Zydus gets final approval from U.S. FDA for Methylprednisolone
  • Fortis says Manipal-TPG sought to impose onerous conditions on the company that would cap ability for competitive bid process
  • Uniply to allot 45.14 lakh equity shares at a premium of Rs 400.85 per share on a preferential basis to non-promoters. It will also allot 96.28 lakh convertible warrants at a premium of Rs 400.85 per warrant on a preferential basis

F&O Setup

  • Nifty April futures closed trading at 10,569 with discount of 1.5 points versus premium of 3.6 points
  • Nifty May futures trading at 10,591.7 with premium of 21 points versus 27.7 points
  • Nifty rollover at 45 percent, Bank Nifty rollover at 49 percent
  • All series: Nifty open interest up 3 percent, Bank Nifty open interest up 7 percent
  • India VIX ended at 12.3, up 4.2 percent
  • Max open interest for April series at 10,700 (open interest at 40.5 lakh, down 10 percent)
  • Max open interest for April series shifts to 10,500 (open interest at 44.9 lakh, down 9 percent)

F&O Ban

  • In ban: Balrampur Chini, Dewan Housing, GMR Infra, Raymond, Wockhardt
  • New in ban: Raymond

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

Active Stock Futures

Stocks To Watch: Wipro, Kitex, Future Retail, Emami

Earnings To Watch

Stocks To Watch: Wipro, Kitex, Future Retail, Emami
Stocks To Watch: Wipro, Kitex, Future Retail, Emami
  • AU Small Finance Bank
  • Biocon
  • Parag Milk Foods
  • Rallis India
  • Reliance Capital
  • SBI Life Insurance Company
  • Shriram City Union Finance
  • Tata Elxsi
  • Accelya Kale
  • Aditya Birla Money
  • Artson Engineering
  • Automotive Stampings
  • Coromandel Engineering
  • Essel Propack
  • HIL
  • Indian Energy Exchange
  • JL Morison
  • Jindal Stainless (Hisar)
  • Kirloskar Pneumatic
  • Oil Country Tubular
  • Supreme Industries
  • Tata Metaliks

Earnings Reactions To Watch

Wipro Q4 (QoQ)

  • Revenue up 0.7 percent at Rs 13,769 crore
  • Profit down 6.7 percent at Rs 1,800 crore
  • EBIT down 3.9 percent at Rs 1,883 crore
  • Margin at 13.7 percent versus 14.3 percent

ICICI Lombard Q4 (YoY)

  • Gross domestic premium up 10 percent at Rs 2,926 crore
  • Profit up 18 percent at Rs 212 crore
  • Combined ratio at 99.5 percent versus 97.1 percent

Indiabulls Real Estate Q4 (YoY)

  • Revenue at Rs 2,028 crore versus Rs 437 crore
  • Net profit at Rs 1,648 crore versus Rs 80 crore
  • EBITDA at Rs 1,961.5 crore versus Rs 142 crore
  • Margin at 96.7 percent versus 32.5 percent

Mahindra & Mahindra Financial Services Q4 (YoY)

  • Income from operations grew 12.8 percent to Rs 2,060 crore
  • Net profit grew 81 percent to Rs 424 crore
  • Provisions at Rs 157 crore versus Rs 199 crore (QoQ)

Future Supply Chain Q4 (YoY)

  • Revenue up 50 percent at Rs 222 crore
  • Net profit up 6 percent at Rs 18 crore
  • Ebitda up 31.2 percent at Rs 31.5 crore
  • Margin at 14.2 percent versus 16.2 percent

Syngene International Q4 (YoY)

  • Revenue up 40.5 percent at Rs 409 crore
  • Net profit up 8 percent at Rs 84 crore
  • Ebitda up 28 percent at Rs 128 crore
  • Margin at 31.3 percent versus 34.4 percent

Jindal Stainless Q4 (YoY)

  • Revenue up 38 percent at Rs 3,173 crore
  • Net profit down 29 percent at Rs 115 crore
  • Ebitda up 24 percent at Rs 388 crore
  • Margin at 12.2 percent versus 13.6 percent

Wendt Q4 (YoY)

  • Revenue up 7 percent at Rs 40.5 crore
  • Net profit at Rs 5 crore versus Rs 3 crore
  • Ebitda at Rs 16.5 crore versus Rs 12 crore
  • Margin at 40.7 percent versus 31.6 percent

Agro Tech Foods Q4 (YoY)

  • Revenue up 4 percent at Rs 214 crore
  • Net profit up 7 percent at Rs 7.5 crore
  • Ebitda up 7 percent at Rs 15 crore
  • Margin at 7 percent versus 6.8 percent

Who’s Meeting Whom

  • Indusind Bank to meet Blackrock, Norges Bank Invt Mgmt, Fidelity, JP Morgan AMC etc on April 25.
  • Atul to meet investors/analysts on May 4
  • Gabriel India to meet investors/analysts at its Chakan plant on April 26
  • Himadri Specialty to meet investors/analysts on April 26

Brokerage Radar

CLSA on Bharti Infratel

  • Maintained ‘Outperform’ with a price target of Rs 364.
  • Indus Towers valued at par with Bharti Infratel on EV/EBITDA.
  • Indus Towers valued at 12 percent discount to Bharti Infratel on EV/tower.
  • Bharti Infratel’s capital structure to be sub-optimal most merger.
  • Bharti Airtel and Vodafone holdings will be a stock overhang.
  • Merger is positive and creates a dominant tower company.

Nomura on Cummins

  • Upgraded to ‘Buy’ from ‘Neutral’; cut price target to Rs 890 from 898.
  • Stock correction provides buying opportunity.
  • Expect turnaround from current lows in powergen and exports.
  • Outsourcing to group companies has no impact on growth/margins.
  • Cummins trades at a discount to sector despite better RoE.

Citi on Maruti Suzuki

  • Maintained ‘Buy’; cut price target to Rs 10,800 from Rs 11,600.
  • Previous fiscal estimates cut due to volatility in other income.
  • Volume estimates for the current and the next financial cut due to lower industry volume outlook.
  • Expect market share to increase given strong model line-up.
  • Expect revenue, operating income and net profit to rise 14 percent, 31 percent and 25 percent respectively in the previous quarter.

Morgan Stanley on Oberoi Realty

  • Maintained ‘Overweight’ with a price target of Rs 549.
  • March quarter results were inline with estimates.
  • Revenue driven largely by Esquire project.
  • Net profit beats largely due to lower tax rate.
  • New sales down largely due to lower contribution from high-value Worli.

Nomura on Wipro

  • Maintained ‘Reduce’ with a price target of Rs 270.
  • Missed estimates on revenue margins and current quarter guidance front.
  • Growth dragged by India and APAC geographies.
  • BFSI/Manufacturing led growth; communications and consumer declined.

Investec on Wipro

  • Maintained ‘Hold’; cut price target to Rs 290 from Rs 304.
  • Disappointing March quarter with IT services revenues lower than expectations.
  • Revenue growth guidance for current quarter was also weak.
  • Client specific issues continue to haunt.
  • Margins likely to improve in the current financial year.
  • Valuations likely subdued versus peers.

Nomura on Ultratech Cement

  • Maintained ‘Buy’ with a price target of Rs 5,150.
  • March quarter results were strong; revenue/EBITDA ahead of estimates
  • JPA capacity fully integrated in just nine months; PBT break-even due by June 2020.
  • Volume growth to get better ahead of 2019 elections.
  • Continue to believe that cement sector is on the cusp of a cyclical upturn.
  • UltraTech appears best geared for upturn.