Stocks To Watch: Cadila Healthcare, Sun Pharma, GIC

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.