A trader watches a quote screen minutes before the start of trading on the floor of the New York Stock Exchange. (Photographer: Daniel Acker/Bloomberg News.)

Stocks To Watch: Cadila Healthcare, Sun Pharma, GIC

Asian stocks drifted at the open, with energy shares tumbling after oil posted its biggest drop in about a year. U.S. stocks fell on lighter than normal volume on Friday heading into the Memorial Day holiday weekend though S&P 500 futures pointed to gains.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 10,649 as of 8:40 a.m.

Stocks To Watch In Monday’s Trade

  • Cadila Healthcare to raise up to Rs 10,000 crore via QIP issue and up to Rs 5,000 crore via issue of FCCBs.
  • Sundaram Finance Holdings to amalgamate Sundaram BPO India with Sundaram Business Services.
  • GIC announced 1:1 bonus issue.
  • Himatsingka Seide subsidiary’s retail division to be demerged from self.
  • DCM Foods approved modernisation of first extrusion line which will add 3,800 MT per annum to its capacity.
  • Dilip Buildcon declared L1 bidder for NHAI project in Karnataka for Rs 1,027 crore.
  • Lakshmi Vilas Bank in talks with banks, PE funds to sell up to 26 percent equity (Economic Times).

F&O Setup

  • Nifty May Futures closed trading at 10,602 discount of 2.6 points versus 8.6 points
  • May series-Nifty Open Interest down 2 percent and Bank Nifty Open Interest down 9 percent
  • India VIX ended at 12.6, down 3.8 percent
  • Maximum Open Interest for May series at 10,800, Open Interest at 52.9 lakh, Open Interest up 7 percent
  • Maximum Open Interest for May series at 10,500, Open Interest at 67.3 lakh, Open Interest up 22 percent

F&O Ban

  • In Ban: BEML, DHFL, IDBI, Jet Airways, Jain Irrigation, Just Dial, Reliance Communications
  • New In Ban: IDBI, Just Dial

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

Active Stock Futures

Bulk Deals

Laurus Labs

  • Promoter Satyanarayana Chava bought 6.3 lakh shares at Rs 453.99 each

Fuel Price Update

Petrol and diesel prices continued to rise for the 15th straight day as state-run oil marketers increased rates in line with crude oil prices.

The price of petrol was hiked by 15 paise today to Rs 86.08 a litre in Mumbai, while diesel was raised by 11 paise to Rs 73.64 a litre, according to data released by Indian Oil Corporation Ltd.

Nifty Earnings To Watch

  • L&T
  • NTPC

Other Earnings To Watch

  • Apex Frozen
  • Aurobindo Pharma
  • Bank of India
  • Finolex Cables
  • GNA Axles
  • Mercator
  • NLC India
  • NMDC
  • Oil India

Earnings Reactions To Watch

Sun Pharma (Q4, YoY)

  • Revenue down 2 percent to Rs 6,977 crore.
  • Net profit up 7 percent to Rs 1,309 crore.
  • Ebitda up 9 percent to Rs 1,683 crore.
  • Margin at 24.1 percent versus 21.7 percent.

Tech Mahindra (Q4, QoQ)

  • Revenue up 3.6 percent to Rs 8,054.5 crore.
  • Net profit up 30 percent to Rs 1,222 crore.
  • EBIT up 12.4 percent to Rs 1,113 crore.
  • EBIT margins at 13.8 percent versus 12.7 percent.

Eris Life Sciences (Q4, YoY)

  • Revenue up 16.2 percent to Rs 194 crore.
  • Net profit up 9.3 percent to Rs 57.4 crore.
  • Ebitda up 30.1 percent to Rs 72 crore.
  • Margins at 37.1 percent versus 33.2 percent.

Gujarat Fluorochemicals (Q4, YoY)

  • Revenues down 46.8 percent at Rs 991.7 crore.
  • Net profit of Rs 54.5 crore versus net loss of Rs 122.2 crore.
  • Ebitda down 91.1 percent to Rs 33.3 crore.
  • Margins at 3.4 percent versus 20.1 percent.

Power Mech (Q4, YoY)

  • Revenues up 18.1 percent to Rs 407.8 crore.
  • Net profit up 44 percent to Rs 22.9 crore.
  • Ebitda up 28.8 percent to Rs 51.4 crore.
  • Margins at 12.6 percent versus 11.6 percent.

Jindal Saw (Q4, YoY)

  • Revenue up 35.6 percent to Rs 2,488.8 crore.
  • Net profit up 45.1 percent to Rs 165.4 crore.
  • Ebitda up 13.4 percent to Rs 436 crore.
  • Margins at 17.5 percent versus 21 percent.

SH Kelkar (Q4, YoY)

  • Revenue up 14.8 percent to Rs 282.7 crore.
  • Net profit down 28.1 percent to Rs 19.7 crore.
  • Ebitda up 85.7 percent to Rs 24.7 crore.
  • Margins at 8.7 percent versus 5.4 percent.

TCI Express (Q4, YoY)

  • Revenue up 23.1 percent to Rs 249.3 crore.
  • Net profit up 49.6 percent to Rs 17.8 crore.
  • Ebitda up 51.3 percent to Rs 28.3 crore.
  • Margins at 11.4 percent versus 9.2 percent.

Amber Enterprises (Q4, YoY)

  • Revenue up 12.1 percent to Rs 692 crore.
  • Net profit up 46.9 percent to Rs 33.8 crore.
  • Ebitda up 20.4 percent to Rs 67.9 crore.
  • Margins at 9.8 percent versus 9.1 percent.

PC Jeweler (Q4, YoY)

  • Revenue down 2.4 percent to Rs 2,103 crore.
  • Net profit up 7.4 percent to Rs 118.3 crore.
  • Ebitda up 19.8 percent to Rs 212.1 crore.
  • Margins at 10.2 percent versus 8.2 percent.

Lakshmi Machine Work (Q4, YoY)

  • Revenue up 10.1 percent to Rs 747.3 crore.
  • Net profit down 10.4 percent to Rs 61.2 crore.
  • Ebitda up 17.5 percent to Rs 67.5 crore.
  • Margins at 9 percent versus 8.5 percent.

Bank of Baroda (Q4)

  • Net interest income rose 11.7 percent to Rs 4,002.3 crore (YoY).
  • Net loss of Rs 3,102 crore versus net profit of Rs 154.7 crore (YoY).
  • Provisions at Rs 7,052.5 crore versus Rs 3,155.3 crore (QoQ).
  • Gross NPA at 12.26 percent versus 11.31 percent (QoQ).
  • Net NPA at 5.49 percent versus 4.97 percent (QoQ).

NBCC (Q4, YoY)

  • Revenue dropped 3.4 percent to Rs 2,545.8 crore.
  • Net profit down 16.1 percent to Rs 146 crore.
  • Ebitda down 9 percent to Rs 191.5 crore.
  • Margins at 7.5 percent versus 8 percent.

Saurashtra Cement (Q4, YoY)

  • Revenue up 66.7 percent to Rs 178.5 crore.
  • Net profit up 4.8 times to Rs 26.3 crore.
  • Ebitda down 90.9 percent to Rs 0.7 crore.
  • Margins at 0.4 percent versus 7.2 percent.

Lakshmi Vilas Bank (Q4)

  • NII down 47.1 percent at Rs 120.4 crore (YoY).
  • Net loss at Rs 622.3 crore versus net profit of Rs 52.2 crore (YoY).
  • Provisions at Rs 921.4 crore versus Rs 85.3 crore (QoQ).
  • Gross NPA at 9.98 percent versus 5.66 percent (QoQ).
  • Net NPA at 5.66 percent versus 4.27 percent (QoQ).

Excel Crop Care (Q4, YoY)

  • Revenue down 12 percent to Rs 207.3 crore.
  • Net loss at Rs 0.5 crore versus net profit of Rs 6 crore.
  • Ebitda down 44.2 percent to Rs 4.8 crore.
  • Margins at 2.3 percent versus 3.7 percent.

NALCO (Q4, YoY)

  • Revenue up 12.3 percent at Rs 2,863.2 crore.
  • Net profit down 4 percent at Rs 257 crore.
  • Ebitda up 14.5 percent at Rs 489.67 crore.
  • Margin at 17.1 percent versus 16.7 percent.

Brokerage Radar

Deutsche Bank On Sun Pharma

  • Maintained ‘Hold’; cut price target to Rs 431 from Rs 496.
  • Q4 in line; U.S. revenue offset weak India business growth.
  • Specialty launches to drive sentiment near term.
  • Execution in U.S. business remains key monitorable.

HSBC On Sun Pharma

  • Downgraded to ‘Hold’ from ‘Buy’; cut price target to Rs 510 from Rs 650.
  • Q4 gross margins expand on better product mix and lower costs.
  • Expect operating expenses to increase on account of speciality drugs.
  • Headwinds continue for U.S. generic business.Kotak On Page Industries
  • Maintained ‘Sell’; Raised price target to Rs 21,000 from Rs 18,200.
  • Sharp improvement in product mix drove strong growth.
  • Overall volume growth modest.
  • Fundamentals strong, but valuations rich.

Goldman Sachs On Tech Mahindra

  • Maintained ‘Buy’; raised price target to Rs 880 from Rs 824.
  • Q4 results above expectations on continued margin beat.
  • Entire topline growth led by enterprise business in Q4.
  • 5G remains key structural growth opportunity.

Macquarie On Tech Mahindra

  • Maintained ‘Neutral’ with a price target of Rs 670.
  • Q4 profit above estimates due to forex gains and profit on sale of land.
  • Expect EBIT margin normalisation to continue.
  • Outlook for telecom business remains muted; 5G spend at least a year away.

Kotak Securities On Cummins India

  • Maintained ‘Reduce’; Cut price target to Rs 680 from Rs 715.
  • Ended 2017-18 on a weak note; outlook suggest no respite.
  • Competition expanding aggressively; full impact yet to play out.
  • FY19-20 likely to be challenging years.

Credit Suisse On Cummins India

  • Maintained ‘Outperform’; cut price target to Rs 850 from Rs 975.
  • Lackluster Q4 results on spike in expenses.
  • Target price cut to factor in lower revenues and margins.
  • Retain rating on sharp underperformance in last two years and likely recovery.

Edelweiss On Cadila Healthcare

  • Maintained ‘Buy’ with a price target of Rs 510.
  • Strong Q4 led by robust U.S. performance.
  • Generic Tamiflu and exclusive sales of generic Lialda drive U.S.
  • Cadila to deliver strong earnings growth on the back best complex pipeline.

JPMorgan On Cadila Healthcare

  • Maintained ‘Neutral’; cut price target to Rs 400 from Rs 425.
  • Q4 in line; growth aided by U.S. as India was muted.
  • Continued launch momentum crucial for maintaining U.S. revenue base.
  • Gross margins to be at risk in FY19-20 due to erosion in key products.

Edelweiss On Bank of Baroda

  • Maintained ‘Buy’ with a price target of Rs 180.
  • Q4 marred by higher slippages.
  • Loan growth strong with better rated corporate and retail segments.
  • Expect quality growth to gain traction.

Morgan Stanley On Bank of Baroda

  • Maintained ‘Equal-weight’ with a price target of Rs 170.
  • Underlying trends in asset quality improved.
  • Key negative was miss in core pre-provisioning operating profit owing to weak NII.
  • Expect double-digit return on equity by FY20.