Stocks To Watch: Jet Airways, Tata Motors, Tata Power, Cochin Shipyard, GAIL

Japan stocks led declines in Asia in early trade, with the yen extending gains amid more twists and turns on trade and emerging-market risks.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent higher at 10,448.50 as of 7:45 a.m.

Stocks To Watch In Thursday’s Trade

• Tata Power inks pact with Tata Sons for sale of 43 crore equity shares in Tata Teleservices.
• Sunteck Realty to raise Rs 2,000 crore via issue of securities.
• MEP Infrastructure raises FPI investment limit to 100 percent from 24 percent.
• Mylan, Amneal, Sun Pharma lose challenge to Epilepsy drug patent.
• Shalimar Paints to increase FPI/FII limit from 24 percent to 49 percent.

F&O Cues

• Nifty May futures close trade at 10427, discount of 3 points versus premium of 16 points earlier
• Max Call open interest at 10,800 strike; open interest at 55.5 lakh shares
• Max Put open interest at 10,500 strike; open interest at 45.9 lakh shares

F&O Ban

• In ban: BEML, DHFL, RCom
• Out of Ban: Jet Airways, Just Dial

Active Stock Futures

Bulk Deals

Kaveri Seed

• Pabrai Investment Fund II bought 7.79 lakh shares or 1.2 percent equity at Rs 487.29 each.
• BNP Paribas Arbitrage sold 7.42 lakh shares or 1.1 percent equity at Rs 488 each.

Indian Terrain Fashions

• Malabar India Fund bought 10 lakh shares or 2.6 percent equity at Rs 180 each.
• DSP Blackrock MF sold 9.99 lakh shares or 2.6 percent equity at Rs 180 each.

Nifty Earnings To Watch

• GAIL

Other Earnings To Watch

• City Union Bank
• Cochin Shipyard
• Cummins India
• Glaxosmithkline Pharmaceuticals
• Granules India
• HeidelbergCement India
• Heritage Foods
• Kaveri Seed Company
• Moil
• NCC
• Pidilite Industries
• Sequent Scientific
• Somany Ceramics
• Triveni Engineering Industries
• United Breweries
• United Spirits
• V-Mart Retail
• Zydus Wellness

Earnings Reactions To Watch

Apollo Pipes (Q4, YoY)

• Revenue up 16 percent at Rs 74 crore.
• Net profit up 140 percent at Rs 12 crore.
• Other income of Rs 6 crore in the current quarter.
• Ebitda up 14 percent at Rs 12 crore vs Rs 10.5 crore.
• Margin at 16.2 percent from 16.4 percent.

Repco Home Finance (Q4, YoY)

• Net interest income up 11 percent at Rs 122 crore.
• Net profit up 12 percent at Rs 57 crore.

Sunteck Realty (Q4, YoY)

• Revenue up 50 percent at Rs 207 crore.
• Net profit up 140 percent at Rs 12 crore.
• Ebitda up 59 percent at Rs 107.4 crore.
• Margin at 51.9 percent from 48.9 percent.

Jain Irrigation (Q4, YoY)

• Revenue up 26 percent at Rs 2,778 crore.
• Net profit up 26 percent at Rs 97 crore.
• Ebitda up 24 percent at Rs 401 crore.
• Margin at 14.4 percent from 14.7 percent.

Bayer Cropscience (Q4, YoY)

• Revenue up 39.5 percent at Rs 300 crore.
• Net loss of Rs 13 crore.
• Ebitda loss at Rs 16.5 crore.

Eros International Media (Q4, YoY)

• Revenue up 32 percent at Rs 239 crore.
• Net profit up 79 percent at Rs 61 crore.
• Ebitda up 129 percent at Rs 90.5 crore.
• Margin at 37.9 percent.

KPIT Tech (Q4,QoQ)

• Revenue up 6 percent at Rs 966 crore.
• Net profit up 23 percent at Rs 76 crore.
• EBIT up 8 percent at Rs 84 crore.
• Margin at 8.7 percent.

SML Isuzu (Q4, YoY)

• Revenue up 0.6 percent at Rs 368.1 crore.
• Net profit up 56.8 percent at 14.9 crore.
• Ebitda up 35.8 percent at Rs 24.3 crore.
• Margin at 6.6 percent versus 4.9 percent.

Natco Pharma (Q4, YoY)

• Revenue up 36 percent at Rs 768 crore.
• Net profit up 69.5 percent at Rs 300 crore.
• Ebitda up 58.9 percent at Rs 383.5 crore.
• Margin at 49.9 percent versus 42.7 percent.

Rupa (Q4, YoY)

• Revenue up 10.1 percent at Rs 420.3 crore.
• Net profit up 70.5 percent at Rs 39.9 crore.
• Ebitda up 66.7 percent at Rs 67.5 crore.
• Margin at 16.1 percent.

Tata Motors (Q4, YoY)

• Revenue up 18 percent at Rs 91,279 crore.
• Net profit down 50 percent at Rs 2,125 crore.
• Ebitda up 4 percent at Rs 11,250 crore.
• Margin at 12.3 percent vs 14 percent.

L&T Infotech (Q4, QoQ)

• Revenue up 6 percent at Rs 2,001 crore.
• Net profit up 2 percent at Rs 289.5 crore.
• EBIT down 9 percent at Rs 255.5 crore.
• Margin at 12.8 percent.

IGL (Q4 QoQ)

• Revenue up 4 percent at Rs 1,233 crore.
• Net profit up 5 percent at Rs 174 crore.
• Ebitda up 11 percent at Rs 291 crore.
• Margin at 23.6 percent.

Jet Airways (Q4, YoY)

• Revenue up 9 percent at Rs 5,925 crore.
• Net loss of Rs 1,036 crore.
• Ebitdar loss at Rs 178 crore.

Shipping Corporation of India (Q4, YoY)

• Revenue up 2 percent at Rs 917 crore.
• Net profit up 174 percent at Rs 254.5 crore.
• Tax credit of Rs 278 crore in current quarter.
• Ebitda down 39 percent at Rs 140 crore.
• Margin at 15.3 percent.

Premier Explosives (Q4, YoY)

• Revenue up 15.1 percent at Rs 83.3 crore.
• Net profit down 70.2 percent at Rs 2.5 crore.
• Ebitda down 23.7 percent at Rs 5.8 crore.
• Margin at 7 percent.

GE T&D (Q4, YoY)

• Revenue down 32 percent at Rs 814 crore.
• Net profit down 39.7 percent at Rs 27.8 crore.
• Ebitda down 89.1 percent at Rs 12 crore.
• Margin at 1.5 percent.

Shalimar Paints (Q4, YoY)

• Revenue down 18.8 percent at Rs 60.2 crore.
• Net loss at Rs 16.1 crore.
• Ebitda loss at at Rs 10.3 crore.

PNC Infratech (Q4, YoY)

• Revenue up 116.2 percent at Rs 759 crore.
• Net profit up 230.9 percent at Rs 111.5 crore.
• Ebitda up 236.1 percent at Rs 161 crore.
• Margin at 21.2 percent versus 13.6 percent.

Brokerages On Tata Motors

CLSA

• Maintained ‘Sell’; cut price target to Rs 295 from Rs 330.
• Margins of both JLR and India operations missed estimates.
• JLR outlook remains weak and margin commentary was subdued.
• Cut EPS estimates for the current and the next financial year by 7 percent and 8 percent respectively to factor in lower volume and margin and higher depreciation for JLR.

Jefferies

• Maintained ‘Buy’; cut price target to Rs 440 from Rs 510.
• Near-term demand outlook for JLR remains challenging.
• Strong macro and likely improvement in market share trends aiding standalone business.
• “Undemanding valuation” post steep correction makes risk-reward favorable in our view.

Other Brokerage Calls

Kotak On Motherson Sumi

• Maintained ‘Sell’ with a price target of Rs 265.
• Q4 results marginally better than estimates but internals quite weak.
• New orders won by SMRPBV is flattened over past couple of years.
• Orderbook could lead to slowdown in revenue growth of the company.

Edelweiss On Grasim

• Maintained ‘Buy’ and cut price target to Rs 1,332 from Rs 1,416.
• Cost-led disappointment in viscose staple fibre business offset by improved realisation in chemicals segment.
• VSF margin dipped due to impact of high cost and low volumes.

Nomura On CESC

• Maintained ‘Neutral’ with a price target of Rs 948.
• Turnaround of Chandrapur and Spencer’s well in progress.
• Earnings of renewables and distribution franchisees disappoint.
• Conclusion of business restructuring exercise is near term focus.

Nomura On Indraprastha Gas

• Maintained ‘Buy’ with a price target of Rs 425.
• Q4 results met estimates but recent rupee weakness a concern.
• Overall volume growth of 11 percent lower than 12-16 percent over past 7-8 quarters.
• Near-term focus will be on the ongoing city gas distribution licensing.

Credit Suisse On JM Financial

• Initiated coverage with ‘Neutral’ rating with a price target of Rs 150.
• Growing corporate loan book, along with a recent foray into home loans.
• Lending business generates superior return on assets on higher yields and lower credit costs versus peers.
• JM ARC has a better track record of resolutions versus peers.

Credit Suisse On AB Capital

• Initiated coverage with ‘Outperform’ rating and price target of Rs 175.
• Life insurance business is showing improving profitability.
• Key catalyst for lending business could be an upgrade in credit rating.