Investors watch the trading board at the Colombo Stock Exchange. (Photographer: Luis Enrique Ascui/Bloomberg News)

Stocks To Watch: Alembic Pharma, Century Textiles, Indiabulls Real Estate

Summary
  • Tata Steel completes acquisition of 72.65 percent in Bhushan Steel
  • Strides Shasun Board approves merger of Arrow Remedies and Fargis Medica with self
  • Indiabulls Real Estate to buy back 2.6 crore equity shares (5.45 percent) at Rs 240 each
  • RBI imposes monetary penalty of Rs 5 crore on South Indian Bank

Indian equity benchmarks fell for the fourth straight day as Indian companies reported weaker-than-estimated earnings for the January-March quarter.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded unchanged at 10,615 as of 7:20 a.m.

Stocks To Watch Out For In Today’s Trade

  • Century Textiles to demerge cement division and merges it with UltraTech Cement.
  • Endurance Tech says entitled for Rs 283 crore industrial promotion subsidy.
  • Alembic Pharma gets one Form 483 observation on Karkhadi API unit.
  • Strides Shasun board approved merger of Arrow Remedies and Fargis Medica with self.
  • Indoco Remedies received three observations under Form 483 for API plant at Patalganga.
  • Indiabulls Real Estate to buy back 2.6 crore equity shares (5.45 percent) at Rs 240 each.
  • RBI imposed monetary penalty of Rs 5 crore on South Indian Bank: Bloomberg.
  • Tata steel completed acquisition of 72.65 percent in Bhushan Steel.
  • AU Small Finance Bank to raise Rs 1,000 crore from Temasek via share sale.

F&O Cues

  • Nifty May Futures closed trading at 10,597 with premium of 0.6 points versus 13.5 points on Thursday.
  • All series-Nifty open interest up 2 percent and Nifty Bank open interest down 6 percent.
  • India VIX ended at 14.1, up 5.5 percent.
  • Max OI for May series at 11,000, open interest at 58.4 lakh, open interest up 2 percent
  • Max open interest for May series at 10,500, open interest at 53.7 lakh, open interest up 1 percent.

F&O Ban

  • In Ban: Balrampur Chini, Dewan Housing, Jet Airways, JP Associates, PC Jewellers, Reliance Communications, Wockhardt.
  • New In Ban: Balrampur Chini, Reliance Communications.
  • Out Of Ban: Just Dial.

Active Stock Futures

Bulk Deals

  • Welspun Enterprises: Promoter Balkrishan Goenka Welspun Group Master Trust bought 14.11 lakh shares or 1 percent equity at Rs 178.5 each.
  • Manali Petrochemicals: KIFS Enterprises bought 10 lakh shares or 0.6 percent equity at Rs 44.69 each.
  • Max Ventures: Indgrowth Capital Fund I bought 5.37 lakh shares or 0.7 percent equity at Rs 74.7 each.
  • Kaveri Seeds: Ashoka PTE sold 6.60 lakh shares or 1 percent equity at Rs 500.13 each.

ADF Foods

  • Alpana S Dangi bought 5.75 lakh shares or 2.7 percent equity at Rs 270 each
  • Promoter Bhavesh Ramesh Thakkar HUF sold 5.24 lakh shares or 2.5 percent equity at Rs 270 each

Balrampur Chini Mills

  • California Public Employees' Retirement System bought 12.85 lakh shares or 0.6 percent equity at Rs 62.27 each.
  • Morgan Stanley France SAS sold 11.45 lakh shares or 0.5 percent equity at Rs 62.66 each.

Earnings To Watch

  • Aster DM Healthcare
  • Astrazeneca Pharma
  • Colgate
  • DLF
  • Future Retail
  • Just Dial
  • Mahanagar Gas
  • Motilal Oswal Financial Services
  • Petronet LNG
  • Timken India
  • TTK Prestige

Earnings Reaction To Watch

Bajaj Holdings & Investment (Q4, YoY)

  • Revenue up 23 percent at Rs 221 crore.
  • Net profit up 42 percent at Rs 801 crore.
  • Share of profit after tax of associates up 38 percent at Rs 599 crore versus Rs 432.5 crore

Prabhat Dairy (Q4, YoY)

  • Revenue up 7 percent at Rs 405 crore.
  • Net profit at Rs 18 crore versus net loss of Rs 2 crore.
  • Tax credit of Rs 0.3 crore in current quarter versus tax outgo of Rs 14 crore in base quarter.
  • Ebitda up 37 percent at Rs 41 crore.
  • Margins at 10.1 percent versus 8 percent.

Sheela Foam (Q4, YoY)

  • Revenue up 15 percent at Rs 528 crore.
  • Net profit up 88 percent at Rs 32 crore.
  • Ebitda up 121 percent at Rs 53 crore.
  • Margin at 10 percent versus 5.2 percent.

Tata Chemicals (Q4, YoY)

  • Revenue up 2 percent at Rs 2,555 crore.
  • Net profit up 4 times at Rs 1,169 crore.
  • Exceptional gain of Rs 1,267 crore in current quarter from sale of fertilizer business.
  • Ebitda up 8 percent at Rs 512.5 crore.
  • Margin at 20.1 percent versus 18.9 percent.

Asian Granito India (Q4, YoY)

  • Revenue up 18 percent at Rs 392 crore.
  • Net profit up 6 percent at Rs 17 crore.
  • Ebitda up 3 percent at Rs 36 crore.
  • Margin at 9.2 percent versus 10.5 percent

Den Networks (Q4, YoY)

  • Revenue down 1 percent at Rs 315 crore.
  • Net loss of Rs 10 crore versus net loss of Rs 60 crore.
  • Exceptional loss of Rs 31 crore.
  • Ebitda flat at Rs 56 crore.
  • Margin at 17.8 percent versus 17.7 percent.

Inox Wind (Q4, YoY)

  • Revenue down 80 percent at Rs 203 crore.
  • Net profit down 56 percent at Rs 56 crore.
  • Ebitda loss of at Rs 30 crore versus Ebitda profit of Rs 229 crore.
  • Margins at -14.8 percent versus 22.5 percent.

Manappuram Finance (Q4, YoY)

  • Net interest income up 2 percent at Rs 622 crore versus Rs 609 crore.
  • Net profit down 9.5 percent at Rs 182 crore versus Rs 201 crore.

Thermax (Q4, YoY)

  • Revenue down 3 percent at Rs 1443 crore.
  • Net profit at Rs 76 crore; one-time loss of Rs 65 crore in base quarter.
  • Ebitda down 20 percent at Rs 138.5 crore.
  • Margin at 9.6 percent versus 11.6 percent.

Kalyani Steels (Q4, YoY)

  • Revenues up 12 percent at Rs 356 crore.
  • Net profit down 21 percent at Rs 30 crore.
  • Ebitda down 10 percent at Rs 55 crore.
  • Margin at 15.4 percent versus 19.2 percent.

Future Lifestyle Fashions (Q4, YoY)

  • Revenue down 1 percent at Rs 977 crore.
  • Net profit down 64 percent at Rs 26 crore.
  • Exceptional gain of Rs 13 crore and tax credit of Rs 11 crore in base quarter.
  • Ebitda down 5 percent at Rs 88 crore versus Rs 93 crore.
  • Margin at 9.0 percent versus 9.4 percent.

Kitex Garments (Q4, YoY)

  • Revenue down 26 percent at Rs 131 crore.
  • Net profit down 63 percent at Rs 10 crore.
  • Ebitda down 62 percent at Rs 18 crore.
  • Margin at 13.7 percent versus 26.8 percent.

Sobha (Q4 Consolidated, YoY)

  • Revenue up 31.8 percent at Rs 769.6 crore.
  • Net Profit up 39.1 percent at Rs 65.4 crore.
  • EBITDA up 23.8 percent at Rs 136.4 crore.
  • EBITDA margin at 17.7 percent vs 18.9 percent.

Brokerage Radar

Macquarie On Strides Shasun

  • Downgraded to ‘Neutral’ and cut target price to Rs 398.
  • Fourth quarter performance was a huge dampener.
  • U.S.-partnered portfolio shrunk significantly from nearly $25 million in the third quarter to $7 million in fourth quarter.
  • Business in Australia is on track and will grow in early double digits in 2018-19.
  • Cut financial year 2018-19’s EPS estimates sharply by 52 percent and by 50 percent for the next financial year to reflect structural issues.

Macquarie On Bajaj Auto

  • Maintained ‘Underperform’ with a target price of Rs 2,800.
  • Downside risk to the street’s expectations for Bajaj Auto’s operating margin.
  • Domestic motorcycle market share is running hard to stand still.
  • Expect Bajaj’s exports to grow 12 percent by March 2019.

Macquarie On Ashok Leyland

  • Maintained ‘Underperform’ with a target price of Rs 113.
  • Volume growth drives margin improvement in the fourth quarter.
  • Decline in the market share of the medium and heavy commercial vehicles segment in the fourth quarter.
  • Commercial vehicles demand likely to remain strong in the ongoing and next financial year.
  • Stock is trading at a 30 percent premium to its historical average valuation.

Nomura On Bajaj Auto

  • Maintained ‘Neutral’ with a target price of Rs 3,252.
  • Domestic two-wheeler performance remains weak due to high competition.
  • Three-wheeler exports benefitted from a recovery in Egypt and new markets.

Nomura On Amara Raja

  • Maintained ‘Buy’ with a target price of Rs 1,046.
  • Fourth quarter results below Nomura’s consensus estimates.
  • Management indicated that telecom demand remained muted.
  • Lead prices have started coming down, which should support margins.
  • Operating margin came at 13.3 percent, below their estimate of 16 percent.

Investec On Bajaj Finserv

  • Maintained ‘Buy’ and raised the target price to Rs 6,510 from Rs 5,615.
  • Turnaround was sustained in life insurance.
  • Life insurance capital utilisation to improve.
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