Men look up at an electronic screen displaying stock figures at the Bombay Stock Exchange (BSE) in Mumbai (Photographer: Prashanth Vishwanathan/Bloomberg)

Stocks To Watch: BHEL, BPCL, Coal India, M&M, Power Grid, Vedanta

Summary
  • Vedanta ordered by Tamil Nadu government to seal and permanently close the copper smelter plant at Tuticorin.
  • Government increases its stake in IDBI Bank by 5 percent by acquiring 109.7 crore shares to 85.96 percent.

Asian stocks were mixed, with benchmarks heading lower in Japan and flat in South Korea and Australia.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent lower at 10,650 as of 7:30 a.m.

Stocks To Watch Out For In Tuesday’s Trade

  • Vedanta ordered by Tamil Nadu government to seal and permanently close the copper smelter plant at Tuticorin.
  • Government increases its stake in IDBI Bank by 5 percent by acquiring 109.7 crore shares to 85.96 percent.
  • Arihant Superstructures subsidiary get loan sanction amounting to Rs 250 crore from HDFC for Panvel project.

F&O Setup

  • Nifty May Futures closed trading at 10,678.8 discount of 9.7 points versus 2.6 points.
  • Nifty June Futures trading at 10,691, premium of 2.4 points.
  • Nifty Rollover at 17 percent, Bank Nifty Rollover at 17 percent.
  • All series-Nifty open interest up 2 percent and Bank Nifty open interest down 3 percent.
  • India VIX ended at 13, up 3.2 percent.
  • Max open interest for May series at 10,800 Call, open interest at 50.3 lakh, open interest down 5 percent.
  • Max open interest for May series at 10,500 Put, open interest at 61.8 lakh, open interest down 8 percent.

F&O Ban

  • In Ban: Balrampur Chini, DHFL, IDBI, Jet Airways, Jain Irrigation, Reliance Communications
  • New in ban: Balrampur Chini
  • Out of ban: BEML, Just Dial

Alert: Only intraday positions can be taken in stocks which are in F&O ban, in case of a rollover of these intraday positions there is a penalty

Active Stock Futures

Bulk Deals

Advanced Enzyme Tech

  • HDFC Mutual Fund bought 15 lakh shares at Rs 222 each
  • Chandrakanth Rathi Innovations & Projects sold 17 lakh shares at Rs 222 each

KSK Energy Ventures Limit

Oriental Bank of Commerce sold 35 lakh shares at Rs 3.9 each

Nifty Earnings To Watch

  • BPCL
  • Coal India
  • M&M
  • Power Grid

Other Earnings To Watch

  • BEL
  • BHEL
  • Dilip Buildcon
  • Dish TV
  • Glenmark Pharma
  • Godfrey Philips
  • Ipca Labs
  • Torrent Power

Earnings Reactions To Watch

L&T (Q4, YoY)

  • Revenue up 11 percent at Rs 40,678 crore.
  • Net profit up 5 percent at Rs 3,167 crore.
  • Ebitda up 23 percent at Rs 5,390 crore.
  • Margin at 13.2 percent from 11.9 percent.

Lumax Industries (Q4, YoY)

  • Revenue up 45 percent at Rs 559 crore.
  • Net profit up 1.2 times to Rs 17.7 crore.
  • Ebitda up 81.6 percent at Rs 46.5 crore.
  • Margin at 8.3 percent versus 6.6 percent.
  • Deferred Tax Credit amounting to Rs 6.7 crore.

Finolex Cables (Q4, YoY)

  • Revenue up 12.2 percent at Rs 796 crore.
  • Net profit up 8.3 percent at Rs 81.8 crore.
  • Ebitda up 14.3 percent at Rs 115.4 crore.
  • Margin at 14.5 percent versus 14.2 percent.

Apex Frozen Foods (Q4, YoY)

  • Revenue up 23.8 percent at Rs 203.1 crore.
  • Net profit rose to Rs 17.5 crore.
  • Ebitda up 100 percent at Rs 24.9 crore.
  • Margin at 12.3 percent versus 7 percent.

Minda Corporation (Q4, YoY)

  • Revenue up 39.9 percent at Rs 720.5 crore.
  • Net profit up 1.4 times at Rs 38.7 crore.
  • Ebitda up 1.1 times at Rs 81.8 crore.
  • Margin at 11.4 percent versus 7.5 percent.

MM Forgings (Q4, YoY)

  • Revenue up 65.6 percent at Rs 199.5 crore.
  • Net profit rose 1.2 times to Rs 27.4 crore.
  • Ebitda up 63.6 percent at Rs 38.6 crore.
  • Margin at 19.3 percent versus 19.6 percent.

NMDC (Q4, YoY)

  • Revenue up 24.1 percent at Rs 462.2 crore.
  • Net profit up 30.3 percent at Rs 27.1 crore.
  • Ebitda up 1.7 times at Rs 51.6 crore.
  • Margin at 11.2 percent versus 5.2 percent.

Elgi Equipments (Q4, YoY)

  • Revenue up 24.1 percent at Rs 462.2 crore.
  • Net profit up 30.3 percent at Rs 27.1 crore.
  • Ebitda up 1.7 times at Rs 51.6 crore.
  • Margin at 11.2 percent versus 5.2 percent.

Bank of India (Q4, YOY)

  • NII down 26.1 percent at Rs 2,563.8 crore.
  • Net loss of Rs 3969.3 crore versus net loss of Rs 1,045 crore.
  • Provisions up 53.2 percent at Rs 6699.2 crore (QoQ).
  • GNPA at 16.58 percent versus 16.93 (QoQ).
  • NPA at 8.26 percent versus 10.29 percent (QoQ).

Oil India (Q4, QoQ)

  • Revenue up 5.1 percent at Rs 2,998.4 crore.
  • Net profit up 22.9 percent at Rs 866.5 crore.
  • Ebitda down 34.6 percent at Rs 800.7 crore.
  • Margin at 26.7 percent versus 10.29 percent.

Gravita India (Q4, YoY)

  • Revenue up 79.1 percent at Rs 362.4 crore.
  • Net profit up 20 percent at Rs 12 crore.
  • Ebitda up 29 percent at Rs 24.9 crore.
  • Margin at 6.9 percent versus 9.5 percent.

Aurobindo Pharma Q4 (YoY)

  • Revenue up 11 percent at Rs 4049 crore.
  • Net profit down 0.5 percent at Rs 529 crore.
  • Ebitda up 11 percent at Rs 805 crore.
  • Margin at 19.9 percent versus 19.8 percent.

Shilpa Medicare (Q4, YoY)

  • Revenue up 5.8 percent at Rs 234.5 crore.
  • Net profit down 18 percent at Rs 30.6 crore.
  • Ebitda down 16.1 percent at Rs 47.5 crore.
  • Margin at 20.3 percent from 25.5 percent.

United Bank of India (Q4, YOY)

  • NII up 2.3 percent at Rs 513.5 crore.
  • Net loss of Rs 260.6 crore versus net profit fo Rs 735.6 crore.
  • Provisions up 38.3 percent at Rs 1,333.4 crore (QoQ).
  • GNPA at 24.1 percent versus 20.1 percent (QoQ).
  • NPA at 16.49 percent versus 11.96 percent (QoQ).

NLC India (Q4, YoY) Standalone

  • Revenue down 10.3 percent at Rs 2,542.9 crore.
  • Net profit down 84 percent at Rs 381.3 crore.
  • Ebitda down 47 percent at Rs 878.8 crore.
  • Margin at 34.6 percent versus 58.4 percent.

Rural Electrical Corporation (Q4, YoY)

  • Revenue down 3.7 percent at Rs 5632 crore.
  • Net profit down 36.7 percent at Rs 834.8 crore.
  • Ebitda down 4 percent at Rs 4975.8 crore.
  • Margin at 88.3 percent versus 88.6 percent.

Angel Broking on Capacit`e Infraprojects

  • Initiated ‘Buy’ with a price target of Rs 340.
  • Large order book with marquee client base provides revenue visibility.
  • Focused approach leads to strengthening positioning.
  • Increased FSI to trigger construction work in Mumbai region.
  • Expanding presence in cities with a high growth potential.

CLSA on L&T

  • Maintained ‘Buy’ with a price target of Rs 1,730.
  • Q4 results beat guidance on inflow and margin.
  • Hydrocarbon - emerging star and fast-growing business.
  • L&T has a credible strategy to improve both growth and its ROE.
  • L&T is a good proxy for domestic Capex.

Credit Suisse on L&T

  • Maintained ‘Outperform’ with a price target of Rs 1,700.
  • Strong results with positive margins and working capital.
  • Strong 2018-19 growth guidance of 10-11 percent in order inflow and 12-15 percent in revenue.
  • Margin guidance allays concerns about raw material pressure.

CLSA on NTPC

  • Maintained ‘Buy’ with a price target of Rs 200.
  • March quarter results were in line; profit muted by higher cost.
  • Capacity additions clearly on track.
  • Expect a marked pick-up in profit growth due focused efforts to secure coal.

Edelweiss on NTPC

  • Maintained ‘Buy’ with a price target of Rs 202.
  • March quarter’s operating income was broadly in line; Coal allocation priority to resolve fixed cost under recoveries.
  • Expect regulated equity to compound at 15 percent over FY18-20
  • Guidelines on CERC norms could be an overhang.
  • NTPC preferred player for coal allocation; Limited downside with triggers in place.

Credit Suisse on Va Tech Wabag

  • Maintained ‘Outperform’; cut price target to Rs 700 from Rs 820.
  • Disappointing FY18; order momentum appears better now.
  • Some progress seen on Namami Gange projects.
  • Cut EPS estimates for the current and the next financial year by 14 percent and 19 percent respectively on weaker-than-expected March quarter results.
  • Maintain rating due to attractiveness of water treatment theme.

Credit Suisse on Bank of India

  • Maintained ‘Underperform’; cut price target to Rs 103 from Rs 122.
  • Q4: Capital infusion used to raise provision cover.
  • Operating performance remained weak, as loan book contracted.
  • Gross slippages stay elevated; Recoveries spike as guided.
  • Cut EPS estimates for the current and the next financial year by 17 percent and 35 percent respectively to build dilution.
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