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

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.