People monitor market news outside the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Adeel Halim/Bloomberg)

Stocks To Watch: Cipla, Dr. Reddy’s, HPCL, IOC

  • Tata Sons unit Panatone to buy 4.7 percent stake of Tata Communications from Tata Power at Rs 631.12 per share.
  • Future Retail to acquire retail business of Foodworld for Rs 41 crore.
  • Nifty earnings today: Cipla, Dr. Reddy’s, HPCL, IOC, SBI

Indian equity benchmarks fell for fifth day in a row, posting their longest losing streak in over two months, amid concerns that rising crude oil prices will hurt economic and profit growth.

The S&P BSE Sensex fell 0.67 percent or 232 points to 34,616 and the NSE Nifty 50 index tumbled 0.75 percent or 80 points to 10,517.

Asian stocks slipped at the start of trading on Tuesday, despite strong overnight cues from the U.S., as traders sought fresh leads amid an apparent easing in trade tensions.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,516 as of 7:30 a.m.

Stocks To Watch In Tuesday’s Trade

  • Bharti group firm Cedar looks to exit Future Retail, in talks with Premji Invest (Economic Times).
  • Fortis EGM today on changes to board of directors.
  • Essar Shipping board approved sale of older vessels.
  • Infibeam to consider fund raising on May 30.
  • Tata Sons unit Panatone to buy 1.33 crore shares or 4.7 percent equity of Tata Communications from Tata Power at Rs 631.12 per share.
  • HDIL clarified that the company directors not served any notices or FIR.
  • CMI board approved merger of CMI Energy with self.
  • Future Retail to acquire retail business of “Foodworld” for Rs 41 crore.

F&O Setup

  • Nifty May futures close trade at 10538.75, premium of 22 points versus 0.6 points earlier.
  • Max Call open interest at 11,000 strike; open interest at 57.3 lakh shares.
  • Max Put open interest at 10,500 strike; open interest at 54.3 lakh shares.

F&O Ban

  • In ban: Balrampur Chini, DHFL, Jet Airways, Justdial, PC Jewellers, RCom, Wockhardt
  • Out of ban: JP Associates

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

Active Stock Futures

Bulk Deals

  • Sintex Plastics Technologies: Morgan Stanley France SAS bought 44.90 lakh shares or 0.7 percent equity at Rs 51.98 each.
  • ADF Foods: Mentor Capital bought 4.79 lakh shares or 2.3 percent equity at Rs 263.75 each.

Future Lifestyle Fashions

  • Bennett Coleman & Co. bought 34 lakh shares or 1.8 percent equity at Rs 438 each.
  • Spectacular Investment Pte bought 1.55 crore shares or 8.2 percent equity at Rs 434 each.
  • Pioneer Investment Fund sold 77.90 lakh shares or 4.1 percent equity at Rs 434 each.
  • Promoter Future Ideas sold 18.86 lakh shares or 1 percent equity at Rs 435.12 each.
  • Promoter Suhani Trading & Investment Consultants sold 59.24 lakh shares or 3.1 percent equity at Rs 435.18 each.
  • Promoter Ryka Commercial Ventures sold 29.82 lakh shares or 1.6 percent equity at Rs 435.54 each.

IndoStar Capital

  • Lenarco bought 13.90 lakh shares at an average of Rs 594.25 each.
  • NWB As Trustee of the Jupiter India Fund bought 4.93 lakh shares at Rs 600 each.

Nifty Earnings To Watch

  • Cipla
  • Dr. Reddy's Laboratories
  • HPCL
  • IOC
  • SBI

Other Earnings To Watch

  • Allcargo Logistics
  • Andhra Bank
  • Ballarpur Industries
  • Bata India
  • Bharat Forge
  • Bosch
  • Care Ratings
  • Future Consumer
  • Igarashi Motors India
  • LT Technology Services
  • Marathon Nextgen Realty
  • Minda Industries
  • Music Broadcast
  • Sonata Software
  • Symphony
  • VIP Industries

Earnings Reactions To Watch

Just Dial (Q4, YoY)

  • Revenue up 10 percent at Rs 200.5 crore.
  • Ebitda up 43 percent at Rs 45.9 crore.
  • Net profit up 53 percent at Rs 38.9 crore.
  • Margin at 23 percent versus 18 percent.

Navkar Corp (Q4, YoY)

  • Revenue up 16 percent at Rs 115 crore.
  • Net profit up 33 percent at Rs 28 crore.
  • Ebitda up 38 percent at Rs 49.5 crore.
  • Margin at 43 percent from 36.4 percent.

Timken India (Q4, YoY)

  • Revenue up 32 percent at Rs 345 crore.
  • Net profit down 8 percent at Rs 24 crore.
  • Current tax up 2.5 times at Rs 11.6 crore.
  • Ebitda up 18 percent at Rs 45 crore.
  • Margin at 13 percent from 14.6 percent.

Action Construction Equipment (Q4, YoY)

  • Revenue up 60 percent at Rs 367.5 crore.
  • Net profit up 11 times at Rs 21.5 crore.
  • Ebitda up 4 times at Rs 38.5 crore.
  • Margin at 10.5 percent from 4.1 percent.

Mahanagar Gas (Q4, YoY)

  • Revenue up 12 percent at Rs 587 crore.
  • Net profit up 5.5 percent at Rs 105 crore.
  • Ebitda up 8 percent at Rs 176 crore.
  • Margin at 30 percent from 31 percent.

Motilal Oswal (Q4, YoY)

  • Revenue up 43 percent at Rs 752 crore.
  • Net profit up 64 percent at Rs 148 crore.

AstraZeneca Pharma India (Q4, YoY)

  • Revenue up 30 percent at Rs 151 crore.
  • Net profit of Rs 3 crore from net loss of Rs 10 crore.
  • Ebitda up 1,500 percent at Rs 16 crore.
  • Margin at 10.6 percent from 0.9 percent.

Globus Spirits (Q4, YoY)

  • Revenue up 10 percent at Rs 229 crore.
  • Net profit down 50 percent at Rs 1 crore.
  • Tax credit of Rs 8 crore in base quarter.
  • Ebitda up 100 percent at Rs 18 crore.
  • Margin at 7.9 percent from 4.3 percent.

Redington India (Q4, YoY)

  • Revenue up 5 percent at Rs 11,314 crore.
  • Net profit down 6 percent at Rs 143.5 crore.
  • Ebitda down 1 percent at Rs 232 crore.
  • Margin at 2.1 percent from 2.2 percent.

Future Retail (Q4, YoY)

  • Revenue up 2 percent at Rs 4,575 crore.
  • Net loss of Rs 464 crore from net profit of Rs 123 crore.
  • Exceptional loss of Rs 604 crore in the current quarter.
  • Ebitda up 11 percent at Rs 201 crore.
  • Margin at 4.4 percent from 4 percent.

Punjab & Sind Bank (Q4, YoY)

  • Net interest income down 17 percent at Rs 473 crore.
  • Net loss of Rs 525 crore from net profit of Rs 8 crore.
  • Provisions up 3 percent at Rs 604 crore (QoQ).
  • Gross NPA at 11.19 percent from 10.95 percent (QoQ).
  • Net NPA at 6.93 percent from 7.20 percent (QoQ).

Bombay Burmah (Q4, YoY)

  • Revenue down 15 percent at Rs 52.5 crore.
  • Net loss of Rs 12 crore.
  • Other income of Rs 17 crore in base quarter.
  • Ebitda loss of Rs 10.5 crore.
  • Margin at negative 20 percent from negative 4.0 percent.

Gujarat State Petronet Q4 QoQ

  • Revenue flat at Rs 350 crore.
  • Net profit down 14 percent at Rs 157 crore.
  • Ebitda down 3 percent at Rs 288.5 crore.
  • Margin at 82.4 percent from 84.7 percent.

DLF (Q4, YoY)

  • Revenue down 38 percent at Rs 1,378 crore.
  • Net profit up 66 percent at Rs 248 crore.
  • Profit from JV at Rs 205.5 crore in current quarter.
  • Ebitda loss of Rs 14 crore from Rs 710 crore.
  • Margin at negative 1 percent from 31.9 percent.
  • The results are not comparable due to presence of DLF Cyber City Developers’ revenue and Ebitda in the base quarter.

Brokerage Radar

Credit Suisse On Colgate

  • Maintained ‘Neutral’; raised price target to Rs 1,225 from Rs 1,120.
  • Volume and market share trends remain weak.
  • Colgate is still losing market share in toothpaste.
  • Management hopeful for a 2018-19 recovery.

Jefferies On Colgate

  • Maintained 'Hold’; raised price target to Rs 1,220 from Rs 1,190.
  • Volumes still tepid but margin beat continues.
  • Management indicated market share stabilization going ahead.
  • Management sees maintaining current volume growth and elevated margins.

Nomura On Colgate

  • Downgraded to ‘Neutral’ from ‘Buy’, raised price target to Rs 1,299 from Rs 1,307.
  • Innovation and market share remain issues.
  • Volume growth flattish in trajectory adjusted for the favourable base effect.

Morgan Stanley On Dalmia Bharat

  • Maintained ‘Overweight’ and price target at Rs 3,475.
  • Continues to deliver industry-leading volume growth.
  • Cost focus should support Ebitda progression and cash flow.
  • Growth capex ahead implies deleveraging is largely behind us.

Goldman Sachs On Dalmia Bharat

  • Maintained ‘Buy’ with a price target at Rs 3,475.
  • In line with estimates but capacity expansion to aid growth.
  • Dalmia is likely to continue to grow faster than the industry.

HSBC On Dalmia Bharat

  • Maintained ‘Buy’; raised price target to Rs 3,350 from Rs 3,250.
  • Robust volume and Ebitda growth is well ahead of estimates.
  • Simplification of the group structure is in the final stages.

BofA-ML On Petronet LNG

  • Maintained ‘Uderperform’ with a price target of Rs 222.
  • Q4 marginally behind on lower re-gas volumes.
  • Gas volumes should recover in the near term.
  • Pipelines in the south on track, but not a surprise.

Nomura On Petronet

  • Maintained ‘Buy’ with a price target of Rs 300.
  • Q4 was a miss likely due to lower long term volumes.
  • Dahej utilisation was higher and Kochi utilisation was lower.
  • As Kochi utilisation improves, there is downside risk to tariffs.

Credit Suisse On TTK Prestige

  • Upgraded to ‘Neutral’ from ‘Underperform’; raised target to Rs 6,300 from Rs 5,900.
  • A strong quarter for growth amidst reasonable valuations.
  • Growth was consistent across both South and non-South markets.
  • Management refused to guide for 2018-19 but remains optimistic.
  • Upgrade EPS by 2-3 percent as we built in higher growth for 2018-19.