Traders and electronic stock boards are seen through a glass window at a stock exchange. (Photographer: Asim Hafeez/Bloomberg)

Stocks To Watch: Vedanta, IRB Infrastructure, J Kumar Infraprojects

Asian stocks began trade on a mixed note as investors awaited the monthly U.S. jobs report, and as a rally off the lows in U.S. equities wasn’t enough to send the S&P 500 into positive territory.

Australian stocks were little changed, while South Korean equities slipped. With Japan closed for a public holiday, no equities will trade in Tokyo and Treasuries will remain shut until the London session.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,671.50 as of 7 a.m.

Here Are The Stocks To Watch In Friday's Trading:

  • Emami board approves 1:1 bonus issue
  • JSW Energy increased capex aim for electric vehicles to Rs 6,500 crore
  • Fortis Healthcare says board to meet on May 10 to consider various bids/proposals received by the company
  • J Kumar Infraprojects wins order worth Rs 445 crore for Pune metro
  • Vedanta India capex guidance $1.5 billion for FY19
  • IRB Infra sees Rs 10,000 crore revenue, Rs 1,000 crore of net profit by FY20
  • Cera Sanitaryware board approves Rs 100 crore capex for FY19
  • Indigo says has not received any communication from SEBI
  • BASF India approves proposal to transfer paper wet-end and water chemicals business to Solenis
  • Thirumalai Chemicals board approves 10:1 stock split
  • Tata Motors to sell its defense and aerospace portfolio to Tata Advanced Systems Limited (TASL) (a wholly-owned subsidiary of Tata Sons Limited) to unlock their full potential.

F&O Setup

  • Nifty May Futures closed trading at 10,706.5 with premium of 26.9 versus 29.4 points
  • All series: Nifty open interest unchanged, Bank Nifty open interest up 2 percent
  • India VIX at 12.9, up 1.1 percent
  • Max open interest for May series at 11,000 (open interest at 59.7 lakh, open interest down 1 percent)
  • Max open interest for May series shifts to 10,500 (open interest at 45 lakh, open interest down 1 percent)

Bulk Deals

  • Uniinfo Telecom Service: Systematix Shares and Stocks (India) Limited bought 60,000 shares at Rs 52.9 each.

Fortis Healthcare

  • York Asian Opportunities Investments Master Fund, L.P. bought 95 lakh shares (1.8 percent) at Rs 157 each.
  • York Asian Strategic Metric Master, L.P bought 1.57 crore shares (3 percent) at Rs 157 each.
  • York Multi-Strategy Master Fund, L.P. bought 29.60 lakh shares (0.6 percent) at Rs 157 each.
  • UBS Principal Capital Asia Ltd sold 2.82 crore shares (5.4 percent) at Rs 157 each.

F&O Ban

  • In ban: PC Jeweller, IRB Infra, Just Dial, Jet Airways
  • New in ban: Just Dial, Jet Airways

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

Active Stock Futures

Stocks To Watch: Vedanta, IRB Infrastructure, J Kumar Infraprojects

Trading Tweaks

  • Pioneer Distilleries circuit filter revised to 5 percent.
  • Jaypee Infratech shifted to T group.
  • Prism Cement Ltd.’s name changed to Prism Johnson Ltd.
  • Pudumjee Industries Ltd.’s name changed to 3P Land Holdings Ltd.

Insider Trades

  • KM Sugar Mills promoters sold 45,000 shares on May 2.
  • Vishal Fabrics promoter Vedprakash Chiripal acquired 41,250 shares from April 20 – 30.

Earnings Reactions To Watch

Vedanta (Q4, YoY)

  • Revenue up 22.7 percent at Rs 27,630 crore
  • Net Profit up 81.41 percent at Rs 4,802 crore
  • EBITDA up 6.6 percent at Rs 7,837 crore
  • Margin at 28 percent vs 33 percent

L&T Finance Holdings (Q4, YoY)

  • Income from operations up 27 percent to Rs 2,748 crore
  • Net Profit grew 28.6 percent to Rs 406 crore
  • Gross NPA at 4.80 percent vs 5.49 percent (QoQ)
  • Net NPA at 2.34 percent vs 2.87 percent (QoQ)

JSW Energy (Q4, YoY)

  • Revenue down 4.7 percent at Rs 1,775 crore
  • Net loss of Rs 483 crore vs net profit of Rs 23.7 crore
  • One-time loss of Rs 418 crore
  • EBITDA down 28.2 percent at Rs 421.4 crore
  • Margin at 23.7 percent vs 31.5 percent

Thirumalai Chemicals (Q4, YoY)

  • Revenue up 8 percent at Rs 331 crore
  • Net profit up 110.5 percent at Rs 40 crore vs Rs 19 crore
  • EBITDA up 56 percent at Rs 70 crore
  • Margin at 21.1 percent vs 14.7 percent

Orient Cement (Q4, YoY)

  • Revenue up 4 percent at Rs 620 crore
  • Net profit down 21 percent at Rs 13 crore
  • Tax crore of Rs 2 crore in base quarter
  • EBITDA down 3 percent at Rs 74 crore
  • Margin at 11.9 percent vs 12.7 percent

Trent (Q4, YoY)

  • Revenue up 18 percent at Rs 529 crore
  • Net profit down 52 percent at Rs 12 crore
  • Exceptional gain of Rs 25 crore in base quarter
  • EBITDA up 82 percent at Rs 25.5 crore
  • Margin at 4.8 percent vs 3.1 percent

Nucleus Software (Q4, QoQ)

  • Revenue up 5 percent at Rs 111 crore
  • Net profit down 6 percent at Rs 17 crore
  • EBIT down 18 percent at Rs 14 crore
  • Margin at 12.6 percent vs 16.0 percent

Castrol India (Q1, YoY)

  • Revenue up 5 percent at Rs 927 crore
  • Net profit up 11 percent at Rs 100 crore
  • EBITDA up 4 percent at Rs 274 crore
  • Margin at 29.6 percent vs 29.8 percent

Hexaware Technologies (Q4, QoQ)

  • Revenue up 4.3 percent at Rs 1,049 crore
  • Net profit up 11 percent at Rs 134 crore
  • EBITDA up 2 percent at Rs 147 crore
  • Margin at 14 percent vs 14.3 percent

HCC (Q4, YoY)

  • Revenue up 6 percent at Rs 1,443 crore
  • Net profit down 5 percent at Rs 20 crore
  • EBITDA down 28 percent at Rs 160 crore
  • Margin at 11.1 percent vs 16.5 percent

Earnings To Watch

  • Ambuja Cements
  • Bank Of Maharashtra
  • BSE
  • Capital First
  • Godrej Properties
  • Indo Count Industries
  • NIIT Technologies
  • PVR
  • Wockhardt

Brokerage Radar

Citi on Adani Ports

  • Maintained ‘Buy’ with a price target of Rs 575.
  • Healthy underlying numbers despite impact on coal volumes.
  • Consistent improvement in balance sheet, cash flow and Capex.
  • Outlook remains strong; Valuations are attractive.

JP Morgan on Adani Ports

  • Maintained ‘Overweight’ with a price target of Rs 440.
  • Higher interest and tax rate led to an in-line net profit.
  • SEZ income surprises; 2017-18 was record year for SEZ income.
  • Company to continue to focus on net debt reduction.
  • Free cash flow to increase to Rs 1,750 - 2,000 crore in the current financial year.

Citi on L&T Finance

  • Maintained ‘Buy’ with a price target of Rs 235.
  • Operationally strong quarter.
  • Strong AUM growth, fee income and improved asset quality led March quarter.
  • AUM growth led by rural and housing sectors.

Deutsche Bank on Castrol India

  • Maintained ‘Buy’ with a price target of Rs 235.
  • March quarter was below estimates due to lower than expected volume growth and gross margins.
  • Long-term volume growth outlook remains robust.
  • Expect robust margins going forward.

Deutsche Bank on MRF

  • Maintained ‘Buy’ with a price target of Rs 89,000.
  • Operational miss in March quarter due to higher raw material cost.
  • Volume growth continues to witness an uptick.
  • Recent price hikes to offset increase in commodity costs.
  • Expect truck tyre companies to take adequate prices hikes in the current financial year.
  • Expect healthy volume growth and high capacity utilisation.

Kotak Securities on MRF

  • Downgraded to ‘Reduce’ from Add; maintained price target at Rs 77,000.
  • March quarter’s Ebitda was below estimates due to weaker customer mix and higher other expenses.
  • Price hikes to help sustain margins at 18-19 percent.
  • Expect 10 percent compounded growth rate in revenue over the fiscal 2018-2021.
  • Like company’s strong execution track-record and brand-positioning.
  • Believe the stock is trading at fair valuation.

Credit Suisse on Pidilite

  • Downgraded to ‘Neutral’ from ‘Outperform’; raised price target to Rs 1,050 from Rs 1,000.
  • Near-term margins to hurt on high crude inflation.
  • Pricing power comes with a lag of 4-6 months.
  • Margins near all-time highs; management has guided for a lower range.
  • Run up in stock now makes it expensive versus peers.

Edelweiss on Emami

  • Maintained ‘Buy’; cut price target to Rs 1,244 from Rs 1,328.
  • March quarter’s net profit below estimates owing to one-time MAT credit reversal.
  • Core products stable; Kesh King improving.
  • Cut earnings per share estimates by 15 percent and 9 percent for the current and the next financial year respectively, to factor in slower off take and heightened ad spends.
  • Expect revenue growth to improve led by rural recovery.

Credit Suisse on Emami

  • Maintained ‘Outperform’; cut price target to Rs 1,230 from Rs 1,260.
  • March quarter was below estimates as margins fell sharply due to a spike in ad spends.
  • Some recovery in growth is visible.
  • Drags like Kesh King, international and OTC are improving.
  • Cut current and next financial year’s estimates by 10 percent to build in increase in ad spends.

Morgan Stanley on Hexaware Tech

  • Maintained ‘Underweight’ with a price target of Rs 325.
  • Robust quarter of revenue growth; Margins softer than expectation.
  • Hexaware’s full-year outlook could turn out to be conservative.
  • Focus on maintaining margins while gaining market share.
  • Believe the stock is already more than pricing in potential upside.

Morgan Stanley on Edelweiss

  • Maintained ‘Overweight’ with a price target of Rs 340.
  • Consolidated net profit above estimates.
  • Asset quality stable, with GNPL ratio at 1.75 percent.

Credit Suisse on PNB Housing

  • March quarter remained fastest growing HFC with healthy asset quality.
  • Company to invest in geographic expansion and infrastructure.
  • Cut earnings per share estimates for the current and the next financial year by 5 percent and 7 percent respectively on heightened opex investments.
  • PNB Housing remains one of the players with highest earnings growth visibility.

CLSA on Vedanta

  • Maintained ‘Buy’; cut price target to Rs 390 from Rs 410
  • March quarter’s Ebitda was ahead of estimates led by higher volumes and commodity prices.
  • Strong volume growth in zinc, oil and aluminium businesses.
  • Rising costs in aluminium and zinc hurting though.
  • Expect strong compounded growth rate of 17 percent and 24 percent for Ebitda and earnings per share respectively in the fiscal 2019-2020.