Stocks To Watch: Eicher Motors, Lupin, Nestle, Jubilant FoodWorks, MCX

Asian stocks headed lower in early trading today as investors assessed the implications of President Donald Trump’s decision to scrap a nuclear deal with Iran.

The dollar traded flat after recent gains, and Treasury yields consolidated. Equity benchmarks in Japan and South Korea dipped, while Australia’s were little changed after that country’s government announced tax cuts.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.27 percent to 10,711 as of 6:17 a.m.

Stocks To Watch In Wednesday’s Trade

• Hindalco in focus as subsidiary Novelis posts strong results.
• Lupin submits new drug application for Etanercept biosimilar in Japan.
• Everest Kanto: Removes CFO for criminal activity against company.
• MCX to launch options trading in crude oil on May 15.
• Nestle clarifies that it will deposit money in consumer welfare fund formed under GST.
• Tata Steel Europe explores potential sale of non-core operations.
• Automotive Axles board approves expansion of Axle Housing and Brake capacity.

Bulk Deals

• Enkei Wheels: Blue Lotus Capital Multibagger Fund I bought 85,000 shares (0.6 percent) at Rs 420.99 each.
• Eveready Industries: Amansa Holding sold 9.78 lakh shares (1.3 percent) at Rs 290.92 each (Average).
• Shree Renuka Sugar: Promoter Khandepar Investments Pvt Ltd. sold 4.37crore shares (2.3 percent) at Rs 15.5 each.

PNB Housing Finance

• General Atlantic Singapore Fund FII Pte bought 17.30 lakh shares (1 percent) at Rs 1279.87 each.
• Quality Investment Holdings sold 80 lakh shares (4.8 percent) at Rs 1280 each.

International conveyors

• Promoter I.G.E (India) Private Limited bought 9.88 lakh shares (1.5 percent) at Rs 28.5 each.
• Lotus Global Investments sold 10 lakh shares (1.5 percent) at Rs 28.5 e

F&O Setup

• Nifty May Futures closed trading at 10,735 with premium of 17.2 points versus 25 points.
• All series-Nifty open interest up 0.5 percent and Bank Nifty open interest up 14 percent.
• India VIX ended at 14, up 2 percent.
• Max open interest for May series at 11,000, open interest at 57 lakh.
• Max open interest for May series at 10,500, open interest at 54.9 lakh, open interest up 6 percent.

F&O Ban

• In ban: Balrampur Chini, Dewan Housing, IRB Infrastructure, Jet Airways, Justdial, Wockhardt
• New in ban: Dewan Housing
• Out of ban: None

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

Nifty Earnings To Watch

• Eicher Motors

Other Results

• Arvind
• EID Parry
• Federal Bank
• GMDC
• Jindal Steel & Power
• Jubilant Life Sciences
• Oriental Bank Of Commerce
• Parag Milk Foods
• Sintex Plastics Technology

Earnings Reaction To Watch

SKF India (Q4, YoY)

• Revenue up 8 percent at Rs 704 crore
• Net profit up 24 percent at Rs 72 crore
• Ebitda up 34 percent at Rs 106.5 crore
• Margin at 15.1 percent from 12.2 percent

Sintex Industries (Q4, YoY)

• Revenue down 7 percent at Rs 617 crore
• Net profit up 15 percent at Rs 57 crore
• Ebitda up 20 percent at Rs 92.5 crore
• Margin at 15 percent from 11.6 percent

Automotive Axles (Q4, YoY)

• Revenue up 30.5 percent at Rs 469 crore
• Net profit up 56 percent at Rs 28 crore
• Ebitda up 51 percent at Rs 55 crore
• Margin at 11.7 percent from 10.2 percent

Sadbhav Infrastructure Project (Q4, YoY)

• Revenue up 96 percent at Rs 761 crore
• Net loss Rs 82 crore
• Ebitda up 25 percent at Rs 285 crore
• Margin at 37.5 percent from 58.6 percent

Whirlpool Of India (Q4, YoY)

• Revenue up 24 percent at Rs 1,258 crore
• Net profit up 23 percent at Rs 91 crore
• Ebitda up 12 percent at Rs 140 crore
• Margin at 11.1 percent from 12.3 percent
• Raw material cost up 11 percent at Rs 624 crore

Huhtamaki PPL (Q4, YoY)

• Revenue up 8 percent at Rs 553 crore
• Net profit up 12.5 percent at Rs 18 crore
• Ebitda flat at Rs 54 crore
• Margin at 9.8 percent from 10.6 percent

Mahindra Holidays & Resorts India (Q4, YoY)

• Revenue down 3 percent at Rs 296 crore
• Net profit up 22 percent at Rs 39 crore
• Ebitda up 3 percent at Rs 62 crore
• Margin at 20.9 percent from 19.7 percent

Blue Dart Express (Q4, YoY)

• Revenue up 6 percent at Rs 717 crore
• Net profit up 39 percent at Rs 34 crore
• Ebitda up 4 percent at Rs 57 crore
• Margin at 7.9 percent from 8.1 percent

The Phoenix Mills (Q4, YoY)

• Revenue down 4 percent at Rs 437 crore
• Net profit up 258 percent at Rs 93 crore
• Tax expenses of Rs 70 lakh from Rs 18 crore
• Share in profit of associates at Rs 9 crore from Rs 0.2 crore
• Ebitda up 9 percent at Rs 217 crore
• Margin at 49.7 percent from 43.8 percent

ABB India (Q1, YoY)

• Revenue up 17 percent at Rs 2525.5 crore
• Net profit up 14 percent at Rs 102.5 crore
• Ebitda up 18 percent at Rs 189.5 crore
• Margin flat at 7.5 percent

Sun Pharma Advanced (Q4, YoY)

• Revenue down 52 percent at Rs 20 crore
• Net profit of Rs 2.5 crore versus net loss of Rs 32 crore
• Exceptional gain of Rs 49 crore in current quarter
• Ebitda at loss of Rs 45 crore

Brokerage Radar

On Jubilant FoodWorks

CLSA

• Maintain ‘Buy’; Raised target price to Rs 3,150 from Rs 2,800
• Q4 marginal beat in Ebitda and margins
• Strong earnings growth likely to drive stock
• Strong SSSG coupled with margin expansion to drive over 40 percent EPS CAGR over FY18-20

Credit Suisse

• Maintain ‘Outperform’; Raised target price to Rs 3,050 from Rs 2,750
• Q4: Strong quarter again; Drivers in place for FY19
• Ebitda margins spike on operating leverage, lower Dunkin losses and cost cuts
• Expect double-digit SSSG and margin expansion in FY19

Edelweiss

• Maintain ‘Hold’; Raised target price to Rs 2,766 from Rs 2,399
• Q4FY18 revenue, Ebitda and PAT ahead of estimates
• SSSG spurts; Cost efficiencies boost Ebitda margin
• Expect 12 percent (YoY) same-store sales growth and 354 basis points Ebitda margin expansion in FY19

On Godrej Consumer Products

Jefferies

• Maintain ‘Hold’ with target price of Rs 1,100
• Q4: Topline soft, but margins remain healthy
• Branded volume growth decent; International continued to drag
• Management confident of double digit volumes and margin improvement for FY19

Credit Suisse

• Maintain ‘Outperform’ with target price of Rs 1,175
• Q4: Net profit in-line, topline growth weak across markets
• Strong margin expansion in India and Indonesia drive earnings
• Innovations to accelerate in FY19

Credit Suisse on Kajaria Ceramics

• Maintain ‘Neutral’ with target price of Rs 650
• Q4: No signs of volume pick-up
• Increasing gas prices and weaker rupee pressurise margins
• Impact could be more severe in FY19 given hike in gas price and weakness in rupee
• Can pass on cost if demand picks up or e-way bill hurts unorganised players

Jefferies on Newgen Software

• Initiate ‘Buy’ with a target price of Rs 305
• Well established product suite; Market leader in BFSI in India
• Positives: Continued shift towards digitisation and several other drivers
• Expect revenue/EPS to grow at a CAGR of 23/27 percent over FY18-20
• Economies of scale to drive margin expansion
• Management to address high debtor days which is a concern
• Valuation reasonable given strong growth prospects
• Bull Case target price of Rs 380