A bystander looks at an electronic screen displaying stock quotes outside of the Bombay Stock Exchange in Mumbai. (Photographer: Prashanth Vishwanathan/Bloomberg News)

Stocks To Watch: Axis Bank, Thermax, Gati, IEX

Asian stocks climbed as the latest bout of earnings results buoyed sentiment in the technology sector and traders monitored a historic meeting between the leaders of North and South Korea.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,664.50 as of 7:15 a.m.

Here Are The Stocks To Watch In Friday’s Trade

  • 15 IDBI officals named in bank fraud case, raids conducted at 50 locations: CBI Official.
  • Fortis to discuss further board restructuring on April 27.
  • Thermax won Rs 279 crore order for a captive cogeneration power plant.
  • IEX board decided not to go ahead with buyback.
  • Essel Propack’s board recommended 1:1 bonus issue.
  • Cyient acquired semiconductor firm Ansem N.V. in an all cash deal worth $17 million.
  • Gati approved inducting new strategic and/or financial partner.
  • CCI finds no Appreciable Adverse Effect on Competition in respect of Tata Steel’s proposed acquisition of Bhushan Steel.
  • Apollo Micro Systems said that the company officials were asked to appear before IT officials on April 25.
  • MOIL signed MoU with Ministry of Steel for FY19.
  • Mangalore Chemicals and Fertilisers shuts down ammonia, urea and ABC Plants for annual turnaround maintenance.

Bulk Deals

  • Coffee Day: Marina West (Singapore) Pte. Ltd. sold 12.66 lakh or 0.6 percent equity at Rs 332.05 each.
  • Karnataka Bank: Copthall Mauritius Investment sold 19.26 lakh shares or 0.7 percent equity at Rs 116.72 each.

Hawkins Cookers

  • EQ India Fund bought 46,071 shares or 0.9 percent equity at Rs 2,811.42 each
  • Equity Intelligence India bought 38,721 shares or 0.7 percent equity at Rs 2,811 each
  • Hober Mallow Trust sold 1.15 lakh shares or 2.2 percent equity at Rs 2,811.40 each

Karturi Global

  • Aspire Emerging Fund bought 2.16 crore shares or 1.4 percent equity at Rs 1.89 each.
  • Elara India Opportunities Fund sold 2.23 crore shares or 1.5 percent equity at Rs 1.89 each.

F&O Setup

  • Nifty May futures closed trading at 10,632.5 with premium of 14.7 points versus 21.7 points
  • Nifty rollover at 72 percent, Bank Nifty rollover at 83 percent
  • All series: Nifty open interest up 6 percent, Bank Nifty open interest up 5 percent
  • India VIX ended at 12.03, down 2.8 percent
  • Max open interest for May series at 11,000 (open interest at 43.8 lakh, up 62 percent)
  • Max open interest for May series shifts to 10,500 (open interest at 30.6 lakh, up 47 percent)

Active Stock Futures

Stocks To Watch: Axis Bank, Thermax, Gati, IEX

Nifty Earnings To Watch

  • RIL
  • UPL
  • Maruti Suzuki
Stocks To Watch: Axis Bank, Thermax, Gati, IEX
Stocks To Watch: Axis Bank, Thermax, Gati, IEX

Other Earnings To WAtch

  • Equitas Holdings
  • IDFC
  • RBL Bank
  • Shoppers Stop
  • Shriram Transport Finance
  • Atul
  • Automobile Corporation Of Goa
  • Industrial & Prudential Investments Co
  • Jagran Prakashan
  • JSW Holdings
  • Khaitan
  • Mahindra Lifespace Developers
  • Nelco
  • Nivi Trading
  • Salem Erode Investments
  • Shriram Asset Management Co
  • Uniphos Enterprises
  • Vardhman Special Steels
  • VTM
  • Merck

Earnings Reaction To Watch

Axis Bank Q4 (YoY)

  • Net interest income flat at Rs 4,730 crore.
  • Net loss of Rs 2,189 crore versus profit of Rs 1,225 crore.
  • Provisions up 155 percent at Rs 7,195.5 crore (QoQ).
  • GNPA at 6.77 percent versus 5.28 percent (QoQ).
  • NNPA 3.4 percent versus 2.56 percent (QoQ).

Also read: Axis Bank Posts First Ever Loss As Bad Loans Pile Up

Biocon Q4 (YoY)

  • Revenue up 26 percent at Rs 1,169.5 crore.
  • Net profit up 2 percent at Rs 130 crore.
  • Ebitda up 24 percent at Rs 232.5 crore.
  • Margin at 19.9 percent versus 20.3 percent.

SBI Life Insurance FY18 (YoY)*

  • Annualised premium equivalent up 27 percent at Rs 8,540 crore.
  • Value of new business up 34 percent at Rs 1,390 crore.
  • VNB Margin at 16.2 percent versus 15.4 percent.
  • Solvency Ratio at 2.06 versus 2.04.
  • *Quarterly figures not given

Kirloskar Pneumatic Q4 (YoY)

  • Revenue up 90 percent at Rs 309 crore.
  • Net profit at Rs 48 crore versus Rs 18 crore.
  • Ebitda at Rs 75 crore versus Rs 26 crore.
  • Margin at 24.3 percent versus 16 percent.

AU Small Finance Bank Q4 (YoY)

  • Net interest income up 30 percent at Rs 287 crore.
  • Net profit up 6 percent at Rs 83 crore.
  • Provisions down 9 percent at Rs 30 crore (QoQ).
  • GNPA at 2.01 percent versus 2.83 percent (QoQ).
  • NNPA at 1.27 percent versus 1.87 percent (QoQ).

Shriram City Union Q4 (YoY)

  • Net interest income up 14 percent at Rs 812 crore.
  • Net profit at Rs 47 crore versus Rs 12 crore.

Rallis India Q4 (YoY)

  • Revenue up 7 percent at Rs 371 crore.
  • Net profit down 35.5 percent at Rs 20 crore.
  • Ebitda down 21 percent at Rs 33 crore.
  • Margin at 8.9 percent versus 12.1 percent.

Jindal Stainless (Hisar) Q4 (YoY)

  • Revenue up 10 percent at Rs 2,254 crore.
  • Net profit up 60 percent at Rs 96 crore.
  • Ebitda up 20 percent at Rs 286 crore.
  • Margin at 12.7 percent versus 11.6 percent.

Reliance Capital Q4 (YoY)

  • Revenue down 1 percent at Rs 5,000 crore.
  • Net profit up 3 percent at Rs 428 crore.

Accelya Kale Q4 (YoY)

  • Revenue down 2 percent at Rs 93 crore.
  • Net profit down 15 percent at Rs 22 crore.
  • Ebitda flat at Rs 37.5 crore.
  • Margin at 40.3 percent versus 39.5 percent.

IEX Q4 (YoY)

  • Revenue up 8 percent at Rs 55 crore.
  • Net profit up 15 percent at Rs 31 crore.
  • Ebitda up 23 percent at Rs 43 crore.
  • Margin at 78 percent versus 69 percent.

Essel Propack Q4 (YoY)

  • Revenue up 3 percent at Rs 628 crore.
  • Net profit up 2 percent at Rs 45 crore.
  • Ebitda down 3 percent at Rs 116 crore.
  • Margin at 18.5 percent versus 19.6 percent.

Aditya Birla Money Q4 (YoY)

  • Revenue up 28 percent at Rs 43.5 crore.
  • Net profit up 7 percent at Rs 4 crore.

Tata Metaliks Q4 (YoY)

  • Revenue up 36 percent at Rs 546 crore.
  • Net profit up 37.5 percent at Rs 55 crore.
  • Ebitda up 18 percent at Rs 88 crore.
  • Margin at 16.1 percent versus 18.6 percent.

Brokerage Radar

HSBC on Sun Pharma

  • Maintained ‘Buy’ with a price target of Rs 650.
  • AbbVie/Boehringer Ingelheim filed risankizumab, an anti-IL-23 biologic psoriasis drug for review.
  • Risankizumab could be a strong rival to Sun Pharma's Ilumya and other anti-IL drugs.
  • Risankizumab has strong clinical trial data.
  • US generic business remain under pressure, but maintain Buy on specialty portfolio.

HSBC on ICICI Lombard

  • Maintained ‘Reduce’; hiked price target to Rs 620 from Rs 610.
  • Group delivered improvement in profitability but disappointments on multiple fronts.
  • Risk: Under-reserving and fragmentation in motor and increasing losses in crop insurance.
  • Biggest upside is the passage of the Motor Vehicles bill.

Jefferies on Petronet LNG

  • Maintained ‘Buy’ with a price target of Rs 290.
  • Valuations much more reasonable in a normal risk environment.
  • Risk: Rising competition, regas tariffs and capital allocation.
  • Firm contracts cushion volume risks.
  • With LNG imports up 19 percent, expect March quarter to be steady.
  • Expect earnings per share to compound at 12 percent over the fiscal 2018-21.

MOSL on Axis Bank

  • Maintained ‘Buy’; cut price target to Rs 650 from Rs 600.
  • Weak March quarter on the asset quality front; Stressed asset recognition accelerates.
  • Incremental stress addition peaked out; Expected to decline.
  • Recovery to hold from October with normalisation in credit cost.
  • Cut earnings estimate for the current and the next financial year by 22 percent and 19 percent respectively to account for lower NII growth.

MOSL on Yes Bank

  • Maintained ‘Buy’; raised price target to Rs 444 from Rs 410.
  • Strong performance in a challenging quarter.
  • NII beat on account of better than expected loan growth.
  • Net interest margins decline (QoQ) led by higher borrowings and decline in CASA ratio.
  • Expect asset quality overhang to recede.
  • Expect improved visibility of growth and profitability.

Investec on Colgate Palmolive India

  • Maintained ‘Buy’; raised price target to Rs 1,280 from Rs 1,200.
  • Attractive oral care opportunity in India.
  • Patanjali intensity plateauing; Likely to moderate ahead.
  • Colgate improved execution in ayurveda category.
  • Wholesale channel disruption temporary.

CLSA on Supreme Industries

  • Maintained ‘Buy’; raised price target to Rs 1,557 from Rs 1,482
  • March quarterly results was a strong beat.
  • Stake sale in automotive component manufacturing to boost RoCE.
  • Expect ramp-up in revenue as approvals of composite cylinder secured.
  • Upgrade earnings per share for the current and the next financial year by 5-10 percent.

CLSA on Reliance Nippon

  • Maintained ‘Buy’ with a price target of Rs 330.
  • March quarter was slightly below estimates due to higher costs/lower topline.
  • Healthy AUM growth and better mix.
  • Cut in equity AUM fees to be passed to distributors.
  • Expect compounded growth rate of 22 percent in earnings over the fiscal 2018-21.

Nomura on Axis Bank

  • Maintained ‘Buy’; cut price target to Rs 630 from Rs 675.
  • Asset quality: Quantum negative but underlying quality not bad.
  • Operating performance weak; Impacted by asset quality pressure.
  • Expect credit cost to normalise to below 100 basis points by March 2020.
  • Expect return on equities to normalise to 15 percent by March 2020.

Nomura on Yes Bank

  • Maintained ‘Buy’; raised price target to Rs 500 from Rs 375
  • March quarter addressed concerns on asset quality.
  • Operationally strong quarter.
  • Quantum of loan growth needs more explanation.
  • Believe worst is behind; Expect a re-rating now.
  • Yes Bank is preferred pick in sector.