Traders work on the trading floor of the Motilal Oswal Financial Services Ltd. office in Mumbai. (Photographer: Vivek Prakash/Bloomberg)

Stocks To Watch: Idea Cellular, IndiGo Aviation, HDFC, Kotak Mahindra Bank, Reliance Industries

Stocks in Asia were off to a muted start on Monday, with Japan and China closed for holidays, as investors weighed the ongoing earnings season against signs of slowing economic growth.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.2 percent to 10,745.50 as of 7:05 a.m.

Here Are The Stocks To Watch Out For On Monday’s Trade

  • Aditya Ghosh resigned as president and whole-time director of InterGlobe Aviation.
  • Cadila Healthcare: Takeda, Lundbeck drop suit against the drugmaker on Trintellix patents.
  • Fortis Board to consider all binding bids received on May 1.
  • Axis Bank board approves increasing borrowing limit to upto Rs 2 lakh crore.
  • Indian Oil to invest Rs 4,221 crore in Paradip petrochem plant.
  • Wockhardt to consider fund raising in May 4 meeting.
  • Jagran Prakashan to buyback upto 1.5 crore shares or 4.82 percent equity at a price of Rs 195.
  • Nitesh Estates says arbitral tribunal awarded Rs 42.50 crore to subsidiary in a land dispute.
  • RBI says restriction on Tata Chemicals’ share purchase withdrawn. Foreign share holding in Tata Chemicals below threshold.
  • Dilip Buildcon says it executed concession agreement with NHAI for orders worth Rs 917 crore.
  • PC Jeweller to consider buyback on May 25.

Nifty Earnings To Watch

  • HDFC
  • Kotak Mahindra Bank

Other Earnings To Watch

  • Ceat
  • Container Corp
  • DHFL
  • Hindustan Zinc
  • Prakash Industries
  • KPR Mill
  • Som Distilleries

Earnings Reactions To Watch

Reliance Industries Q4 (QoQ)

  • Revenue up 15 percent at Rs 84,037 crore.
  • Net profit up 3 percent at Rs 8,697 crore.
  • Ebitda down 2 percent at Rs 13,425 crore.
  • Margin at 16 percent versus 18.8 percent
  • Jio ARPU at Rs 137.1.

Also Read: Reliance Industries Profit Misses Estimate In March Quarter

UPL Q4 (YoY)

  • Net profit down 1 percent at Rs 736 crore.
  • Revenue up 7 percent at Rs 5,691 crore.
  • Ebitda up 8 percent at Rs 1,218 crore.
  • Margin at 21.4 percent versus 21.1 percent.

Shree Cement Q4 (YoY)

  • Revenue up 15.3 percent at Rs 2,811 crore.
  • Net profit up 31 percent at Rs 399 crore.
  • Ebitda up 11.5 percent at Rs 629 crore.
  • Margin at 22.4 percent versus 23 percent.

Equitas Q4 (YoY)

  • Net Interest Income up 15 percent at Rs 279 crore.
  • Net profit up 400 percent at Rs 35 crore.

IDFC Q4 (YoY)

  • Net Interest Income down 7 percent at Rs 743.5 crore.
  • Net profit down 99 percent at Rs 1.6 crore.

RBL Bank Q4 (YoY)

  • NII up 42 percent at Rs 500 crore.
  • Net Profit up 37 percent at Rs 178 crore.
  • Provisions at Rs 113 crore versus Rs 82.3 crore (QoQ).
  • Gross NPA at 1.40 percent versus 1.56 percent (QoQ).
  • Net NPA at 0.78 percent versus 0.97 percent (QoQ).

Idea Q4 (QoQ)

  • Net loss at Rs 962 crore versus net loss of Rs 1,285 crore.
  • Revenue down 6 percent at Rs 6,137 crore.
  • Ebitda up 18 percent at Rs 1,447 crore.
  • Margin at 23.6 percent versus Rs 18.8 percent.
  • Other Income up six times to Rs 250 crore.

Also Read: Idea Cellular Q4: Net Loss Narrows On Higher Margins, Other Income

Shoppers Stop Q4 (YoY)

  • Revenue down 7 percent at Rs 850 crore.
  • Net profit of Rs 21 crore versus net loss of Rs 36 crore.
  • Ebitda flat at Rs 52 crore.
  • Margins at 6.1 percent versus 5.7 percent.

NELCO Q4 (YoY)

  • Revenue up 5 percent at Rs 39 crore.
  • Net profit up 300 percent at Rs 4 crore.
  • Ebitda up 100 percent at Rs 8 crore.
  • Margins at 20.5 percent versus 10.8 percent.

Merck Q4 (YoY)

  • Revenue up 27 percent at Rs 301 crore.
  • Ebitda up 84 percent at Rs 42 crore.
  • Margin at 13.8 percent versus 9.9 percent.
  • Net profit up 53 percent at Rs 22.7 crore.
  • Exceptional gain of Rs 6.5 crore related to sale of office property in Mumbai in March quarter.

LG Balakrishnan Q4 (YoY)

  • Revenue up 12 percent at Rs 342.5 crore.
  • Ebitda up 20 percent at Rs 49 crore.
  • Margin at 14 percent versus 13.5 percent.
  • Net profit up 4 percent to Rs 22.7 crore.

MCX Q4 (YoY)

  • Revenue up 13 percent at Rs 70.6 crore.
  • Ebitda up 77 percent at Rs 23 crore.
  • Margin at 32.5 percent versus 20.7 percent.
  • Net Profit up 56.5 percent at Rs 34.2 crore.
  • Tax expenses lower at 24.7 percent versus 32.7 percent.
  • Other Expenses down 19 percent at Rs 13.6 crore.

Greenply Q4 (YoY)

  • Revenue down 21.5 percent at Rs 339 crore.
  • Ebitda down 3 percent to Rs 54 crore.
  • Margin at 16 percent versus 12.9 percent.
  • Net profit up 10 percent at Rs 34.3 crore.

Who’s Meeting Whom

  • M&M to meet Wellington Management on April 30.

Insider Trades

  • VIP Industries promoter DGP Enterprises acquired 14,100 shares on April 23.
  • Jindal Drilling promoter Jindal pipes acquired 1 lakh shares on April 23.

Trading Tweaks

  • Pioneer Distilleries Ltd.’s circuit filter revised to 10 percent.
  • 5Paisa Capital Limited, Kingfa Science & Technology (India) Limited, Vimta Labs last trading day under T group

Rupee

  • Rupee ended at 66.66/$ on Friday versus 66.76/$ on Thursday.

F&O Cues

  • Nifty May Futures closed trading at 10,723.8 with a premium of 31.8 points versus 14.7 points.
  • All series-Nifty OI up 4 percent, Bank Nifty OI up 19 percent.
  • India VIX ended at 12.01, down 0.17 percent.
  • Max OI for May series at 11,000, OI at 51 lakh, OI up 16 percent.
  • Max OI for May series shifts to 10,500, OI at 37.6 lakh, OI up 23 percent.

F&O Ban

None

Put-Call Ratio

  • Nifty PCR at 1.51 versus 1.48.
  • Nifty Bank PCR at 1.64 versus 1.25.

Brokerage Radar

On Reliance Industries

Deutsche Bank

  • Maintained ‘Buy’; hiked price target to Rs 1,180 from Rs 1,150
  • March quarter reported strong earnings, led by a robust performance from petchem business.
  • Lower throughput, lower GRMs and rupee appreciation impact refining business.
  • Jio: Tariff competition impacts APRU; Jio to maintain focus on net adds.
  • Expect Jio revenue ramp-up and contribution from core sector projects.

Edelweiss

  • Maintained ‘Buy’; hiked price target to Rs 1,201 from Rs 1,174
  • Reported in-line quarterly results during January-March period on consolidated basis.
  • Retail and petchem delivered stellar performances led by volume-led growth.
  • Refining: GRM lower than estimate; New projects to revive earnings.
  • Expect Jio to be cost competitive and gain market share.

Motilal Oswal

  • Maintained ‘Buy’ with a price target of Rs 1,150.
  • Standalone operating income below estimates due to lower throughput.
  • Net profit benefiting from higher other income and lower depreciation.
  • Petchem drives standalone profitability.
  • Robust volume growth and healthy deltas benefit petchem.
  • Jio: Moderate growth pulled down by ARPU cuts.

On Maruti

Kotak Securities

  • Maintained ‘Add’; cut price target to Rs 9,700 from Rs 10,000.
  • Higher other expenses and increase in variable pay lead to slight miss.
  • Cut operating income for the current and next financial year by 2-3 percent due to reduction in margin assumptions.
  • Believe Maruti’s capacity will be booked for next three years.
  • Expect volume to grow at 11 percent compounded over the next three years.

JP Morgan

  • Maintained ‘Overweight’ with a price target of Rs 10,200.
  • March quarter net income was below expectations on lower EBIT margins.
  • Higher commodity costs and Gujarat scale-up are headwinds to margins in the current financial year.
  • Volume growth to be in double digits despite capacity constraints.
  • Expect 12 percent volume growth for the current and next financial year.

CLSA

  • Maintained ‘Buy’ with a price target of Rs 11,300
  • Good growth but margin miss in March quarter.
  • Demand outlook remains strong.
  • Cost pressures exists but Maruti has levers to offset.
  • Cut earnings per share estimates for the current and the next financial year by 3 percent to factor in slightly lower margins.

On UPL

CLSA

  • Maintained ‘Buy’; cut price target to Rs 940 from Rs 960.
  • Weak quarterly results with modest revenue growth across key markets.
  • Revenue guidance for the current financial year of 10-12 percent; potential tailwind from stronger pricing.
  • UPL to benefit from improving industry dynamics in 2018.
  • Cut earnings per share for the current and the next financial year by 6-8 percent, owing to margin cut on increase in input prices.

Investec

  • Maintained ‘Buy’; hiked price target to Rs 1,050 from Rs 975
  • March quarter was Operationally in-line.
  • Performance in the U.S. is encouraging.
  • Control on working capital and reduced gearing are major positives.
  • Expect 13 percent compounded growth rate in earnings per share over the fiscal 2018-2020 with Return on equity of 22 percent.

On Shriram Transport

Nomura

  • Maintained ‘Buy’; hiked price target to Rs 1,900 from Rs 1,750.
  • March quarter reported operationally strong performance.
  • Higher credit cost/coverage a small negative but conservative.
  • Cyclically growth trends very strong; Asset quality trends to improve.
  • Expect Shriram to deliver return on equities of 18-19 percent in the current and next financial year.

Morgan Stanley

  • Maintained ‘Overweight’ with a price target of Rs 1,600
  • March quarter reported good underlying numbers.
  • Net profit impacted by one-off gains from sale of stake.
  • Net profit ex-one-off gains missed due to additional provisions.
  • Pre-provisioning operating profit growth strong at 24 percent.

HSBC on SBI Life

  • Maintained ‘Buy’; hiked price target to Rs 840 from Rs 835.
  • Reported good set of March 2018 full year results.
  • SBI Life reported better persistency in all but the 61st month.
  • Expect SBI Life to continue to gain market share.
  • Focusing on more profitable products such as credit life.

JPMorgan on InterGlobe Aviation

  • Maintained ‘Overweight’ with a price target of Rs 1,690.
  • Aditya Ghosh to step down from the company.
  • Believe operational disruption at IndiGo will be minimal.
  • Await more details/clarification from the company.

Kotak Securities on Cummins India

  • Maintained ‘Reduce’; cut price target to Rs 715 from Rs 855.
  • Absence of drivers of bottom-line beyond market growth.
  • Target multiple lowered due to multiple factors.
  • Do not see any positive triggers to increase the multiple.
  • Factors:- weak exports, margin pressure, competition and lack of clarity on business scope of unlisted sister concerns.
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