Stocks To Watch: Cipla, Grasim, HPCL, Jet Airways, Tata Motors
- Minda Industries board approves 2:1 bonus issue.
- Gravita India enters into contract with Amara Raja Batteries.
- Nifty earnings today: Grasim, Tata Motors
Asian stocks fluctuated at the open on Wednesday as investors weighed renewed geopolitical tensions against easing trade strains.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent lower at 10,529 as of 7:30 a.m.
Stocks To Watch In Wednesday’s Trade
- CCI approves acquisition of Monsanto by Bayer AG, subject to compliance of certain modifications.
- Minda industries board approves 2:1 bonus Issue.
- Majesco gets contract from Gibraltar BSN Life for distribution management solution.
- Gravita India enters into contract with Amara Raja Batteries to collect/purchase lead acid battery scrap and supply pure lead, alloys in return.
Fuel Price Update
State-run oil marketers hiked petrol and diesel prices for the tenth day in a row.
The price of petrol was hiked by 29 paise today to Rs 84.9 a litre in Mumbai and diesel was raised by 28 paise to Rs 72.76 a litre, according to data released by Indian Oil Corporation Ltd.
- Nifty May futures close trade at 10553, premium of 16 points versus 22 points earlier
- Max Call open interest at 10,800 strike; open interest at 64.8 lakh shares
- Max Put open interest at 10,500 strike; open interest at 52.4 lakh shares
- In ban: BEML, DHFL, Jet Airways, Justdial, RCom
- New in ban: BEML
- Out of ban: Balrampur Chini, PC Jewellers, Wockhardt
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
- BNP Paribas Arbitrage bought 4.85Lakh shares (0.5 percent) at Rs 365.25 each.
- Brookdale Mauritius International Limited bought 10 lakh shares (1.1 percent) at Rs 375.27 each.
Nifty Earnings To Watch
- Tata Motors
Other Earnings To Watch
- Apollo Pipes
- Bajaj Electricals
- Bayer Cropscience
- Jet Airways
- Kolte-Patil Developers
- KPIT Technologies
- Larsen & Toubro Infotech
- Motherson Sumi Systems
- Natco Pharma
- Repco Home Finance
Earnings Reactions To Watch
Bata India (Q4, YoY)
- Revenue up 7 percent at Rs 632 crore.
- Net profit up 44 percent at Rs 52 crore.
- Ebitda up 43 percent at Rs 82 crore.
- Margin at 13 percent.
Future Consumer (Q4, YoY)
- Revenue up 51 percent at Rs 807 crore.
- Net loss of Rs 4 crore.
- Ebitda at Rs 17 crore from Rs 2 crore.
- Margin at 2.1 percent.
L&T Technology Services (Q4, YoY)
- Revenue up 30 percent at Rs 1,055 crore.
- Net profit up 66 percent at Rs 159 crore.
- Other income of Rs 75.5 crore in current quarter.
- Ebitda up 21.5 percent at Rs 164 crore.
- Margin at 15.5 percent.
Minda Industries (Q4, YoY)
- Revenue up 53 percent at Rs 1,371 crore.
- Net profit up 122 percent at Rs 140 crore.
- Profit higher due to exceptional gain of Rs 38 crore in current quarter.
- Ebitda up 62 percent at Rs 170 crore.
- Margin at 12.4 percent.
Music Broadcast (Q4, YoY)
- Revenue up 13.4 percent at Rs 76 crore.
- Net profit up 3.55 times at Rs 16 crore.
- Ebitda up 54 percent at Rs 27 crore.
- Margin at 35.5 percent.
HPCL (Q4, QoQ)
- Revenue up 6 percent at Rs 60,810 crore.
- Net profit down 10 percent at Rs 1,748 crore.
- EBITDA down 8 percent at Rs 2,923 crore.
- Margin at 4.8 percent.
- FY18 GRM at $7.40/barrel versus $6.20/barrel (YoY).
Healthcare Global Enterprises (Q4, YoY)
- Revenue up 22 percent at Rs 222 crore.
- Net profit down 57 percent at Rs 3 crore.
- Ebitda up 7 percent at Rs 32 crore.
- Margin at 14.4 percent.
TV Today Network (Q4, YoY)
- Revenue up 2 percent at Rs 181 crore.
- Net profit down 11 percent at Rs 33 crore.
- Ebitda up 8 percent at Rs 52 crore.
- Margin at 28.7 percent.
Cipla (Q4, YoY)
- Revenue up 3 percent at Rs 3,698 crore.
- Net profit of Rs 179 crore.
- Ebitda up 10 percent at Rs 557 crore.
- Margin at 15.1 percent.
Igarashi Motors India (Q4, YoY)
- Revenue down 19 percent at Rs 106 crore.
- Net profit down 13 percent at Rs 16.5 crore.
- Ebitda down 7 percent at Rs 27 crore.
- Margin at 25.5 percent.
Sonata Software (Q4, QoQ)
- Revenue down 18 percent at Rs 626 crore.
- Net profit up 10 percent at Rs 54 crore.
- Other income of Rs 12 crore in current quarter.
- Ebit flat at Rs 61 crore.
- Margin at 9.7 percent.
Brokerage Calls On SBI
- Maintained ‘Underperform’; cut price target to Rs 322 from Rs 381.
- Residual stress contracting, but further capital required.
- Gross NPAs have likely peaked at 10.9 percent this quarter.
- Cut FY19 EPS by 3 percent and FY20 EPS by 20 percent on higher provisions.
Bank of America Merrill Lynch
- Maintained ‘Buy’ with a price target Rs 380.
- Recognition now behind; recovery and loan growth to drive sharp rebound.
- March-quarter weakness led by new NPL norms, treasury losses.
- SBI is the key beneficiary of asset quality cycle.
Other Brokerage Calls
CLSA On HPCL
- Maintained ‘Sell’ with a price target of Rs 300
- Core Ebitda and net profit above estimates but Ebit misses.
- Macro risks in election-heavy 2018-19 to keep buyers away.
CLSA On Bharat Forge
- Maintained ‘Buy’ with a price target Rs 915.
- Solid Q4 performance while growth outlook remains strong.
- New orders to provide a boost over the next 2-3 years.
- 27 times FY19 PE is not cheap but justified given the strong outlook.
Credit Suisse On Bharat Forge
- Maintained ‘Neutral’, cut price target to Rs 750 from Rs 780.
- A decent quarter but below estimates due to sluggish India non-autos.
- Continued strong performance in the India CV and PV businesses.
- Strong momentum in the exports business, but growth rates to slow as base gets tougher.
Bank of America Merrill Lynch On Dr. Reddy’s Laboratories
- Cut price target to Rs 2,388 from Rs 2,573.
- Q4 miss on most fronts but overall thesis intact.
- Complex generics catalysts are near but binary.
- Have moved generic Copaxone to 2HFY20 and generic NuvaRing to 1HFY20
CLSA On Dr. Reddy’s Laboratories
- Maintained ‘Outperform’; cut price target to Rs 2,260 from Rs 2,720.
- Q4 results impacted by shift in channel purchasing pattern in Russia.
- Nuvaring launch delayed by another six months to 4QFY19.
- Believe earnings have bottomed in growth markets like India and Russia.
CLSA On Cipla
- Maintained ‘Buy’; cut price target to Rs 650 from Rs 750.
- Q4 results weak despite adjusting for one-time items.
- U.S. growth impacted by supply issues but will revive in Q2FY19.
- Muted Ebitda margin expansion in FY19, but expect pick-up in FY20.
Macquarie On Cipla
- Maintained ‘Outperform’ with a price target of Rs 636.
- Ebitda margins were impacted by seasonally weak sales mix in India.
- Cipla remains our preferred large-cap pharma pick.
- Management optimistic about 2018-19; U.S. business on growth track.