Stocks To Watch: HDFC Bank, PNC Infratech, Mindtree, UltraTech Cement

Asian stocks advanced after an upbeat assessment on the U.S. economy from Federal Reserve Chairman Jerome Powell comforted investors wary of a blowout in protectionism.

Equities climbed in Japan, Australia and South Korea at the open, while futures signaled a firmer start in Hong Kong. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent higher at 11,062 as of 7:30 a.m.

Here Are The Stocks To Watch Out For In Today’s Trade

• IDBI Bank board seek government’s view on LIC’s proposal to buy 51 percent stake.
• HDFC Bank to allot 3.9 crore shares to parent HDFC at Rs 2174.09 per share.
• PNC Infratech bagged order worth Rs 1,157 crore for highway project in Karnataka.
• 5Paisa Capital board approved 1:1 rights issues at Rs 80 per share.
• Kridhan Infra JV won Rs 222.6 crore order for highway project.
• Tejas Networks implements 100G DWDM network for MCM Telecom in Mexico.
• Rolta India signed pact to implement revised restructuring of bonds.
• Kansai Nerolac completed acquisition of 55 percent stake in RAK Paints Bangladesh for Rs 41.5 crore.
• Allahabad Bank, Andhra Bank, Corporation Bank, PNB, IOB in focus as government may infuse Rs 11,396 crore in five state-owned banks, says government official. Capital to be used by banks to pay interest due on AT1 bonds.

Nifty Earnings To Watch

• Ultratech Cement

Other Earnings To Watch

• Bandhan Bank
• GHCL
• JK Tyre
• JM Financial
• Mahindra CIE Automotive
• Mastek
• Mindtree
• NIIT Tech
• Reliance Communications
• Sasken Technologies

Earnings Reaction To Watch

Zee Entertainment (Q1, YoY)

• Revenue up 15 percent at Rs 1,772 crore.
• Net profit up 31.5 percent at Rs 326 crore.
• Ebitda up 17 percent at Rs 565.6 crore.
• Margin at 31.9 percent versus 31.4 percent.

Also Read: Q1 Results: Zee Entertainment Profit Matches Analyst Estimates In June Quarter

Rallis India (Q1, YoY)

• Revenue up 30 percent at Rs 573 crore.
• Net profit up 22 percent at Rs 55 crore.
• Ebitda up 22 percent at Rs 83.5 crore.
• Margin at 14.6 percent versus 15.5 percent.

Nucleus Software Exports (Q1, QoQ)

• Revenue up 2 percent at Rs 113 crore.
• Net profit up 3.5 percent at Rs 17.6 crore.
• Ebit up 21 percent at Rs 17 crore.
• Margin at 15 percent versus 12.6 percent.

Sintex Industries (Q1, YoY)

• Revenue up 34 percent at Rs 925 crore.
• Net profit up 11 percent at Rs 39 crore.
• Ebitda up 43 percent at Rs 110 crore.
• Margin at 11.9 percent versus 11.2 percent.

5Paisa Capital (Q1, YoY)

• Revenue up 4.1 times at Rs 9.1 crore.
• Net loss of Rs 5.6 crore versus net loss of Rs 6.2 crore.
• Ebitda loss of Rs 6.7 crore versus a loss of Rs 6.9 crore.

Crisil (Q1, YoY)

• Revenue up 7 percent at Rs 436 crore.
• Net profit up 15 percent at Rs 77 crore.
• Ebitda up 5 percent at Rs 108 crore.
• Margin at 24.8 percent versus 25.2 percent.

Jindal Stainless (Q1, YoY)

• Revenue up 56 percent at Rs 3,147 crore.
• Net profit at Rs 91 crore versus Rs 41.5 crore.
• Ebitda up 50 percent at Rs 375 crore.
• Margin at 11.9 percent versus 12.4 percent.

Tata Sponge Iron (Q1, YoY)

• Revenue up 49.1 percent at Rs 260.9 crore.
• Net profit at Rs 45.6 crore versus Rs 30.6 crore.
• Ebitda up at Rs 60.2 crore versus Rs 38.7 crore.
• Margin at 23.1 percent versus 22.1 percent.

8K Miles Software Services (FY18 versus FY17)

• Revenue up 61 percent at Rs 849 crore.
• Net profit up 64 percent to Rs 172 crore.
• EBIT up 56 percent to Rs 267 crore.
• Margin at 31.5 percent versus 32.4 percent.

New Offerings

• TCNS Clothing Co. IPO at Rs 714-716 a share opens; close on July 20. (More details here)
• HDFC AMC IPO price band set at Rs 1,095-1,100 per share; offer ope July 25, close July 27.

Bulk Deals

• Aksharchem: BNP Paribas Arbitrage sold 43,448 shares or 0.5 percent equity at Rs 500.14 each.
• PC Jeweller: Well Management sold 37.45 lakh shares or 0.9 percent equity at Rs 85.43 each.

Who’s Meeting Whom

• PSP Projects to meet Emkay Global Financial Services on July 18.

Insider Trades

• Waterbase promoter KCT Management Services Pvt Ltd acquired 46,056 shares from July 11–12.
• MEP Infra promoter A J Tolls Pvt Ltd acquired 2.20 lakh shares from July 13–16.
• Sadbhav Infra promoter Sadbhav Engineering Ltd acquired 3.68 lakh shares from July 13–16.

Trading Tweaks

• M.M.Forgings Limited ex date for 1:1 bonus

Money Market Update

• Rupee closed at 68.46/$ on Tuesday from 68.57/$ on Monday.
• Sovereign bonds rise with yields at 7.4 percent, lowest levels since May.

F&O Cues

• Nifty July Futures closed trading at 11,023.7 premium of 15.7 points versus 7 points.
• July series: Nifty open interest up 2 percent; Bank Nifty open interest up 3.5 percent.
• India VIX ended at 12.8, down 1 percent.
• Max open interest for July series at 11,000 Call (open interest at 35.3 lakh, down 11 percent)
• Max open interest for July series at 10,800 Put (open interest at 46.5 lakh, up 13 percent)

F&O Ban

In ban: Adani Enterprises, Adani Power, Jet Airways

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty incase of a rollover of these intraday positions

Active Stock Futures

Brokerage Radar

CLSA on ITC

• ITC has become the second-largest FMCG firm in India.
• Meaningful profits still some time away.
• Hurdles: Aggressive launches, steep learning curve in personal care and tough retail environment for apparels.
• FMCG forms 13 percent of price target; could be higher on peer multiples.

BoFA-ML on Zee Entertainment

• Maintained ‘Underperform’ with a price target of Rs 532.
• June quarter was largely inline with estimates.
• Marketing on "Zee5" will pick in current quarter.
• Zee would grow at the rate higher than industry in 2018-19.
• Underperform as valuations high in context of growth and limited clarity on traction of Zee5.

Edelweiss on Federal Bank

• Maintained ‘Buy’ with a price target of Rs 130.
• June quarter earnings show sustained buildup in operating.
• rhythm along with normalisation of asset quality.
• Core profitability gaining momentum and becoming more predictable.
• June performance reinforces our view that FB is on course to deliver return of assets and return of equity of 1 percent and 13 percent by March 2020.

HSBC on L&T Infotech

• Initiated ‘Buy’ with a price target of Rs 2,100, implying a potential upside of 13.5 percent from current levels.
• Strong brand, ability to penetrate large accounts and large deal wins support strong growth.
• Expect organic revenue to grow above industry average CAGR of 15 percent over FY18-21.
• Expect margins to improve by 250 basis points, led by operational efficiency and INR depreciation
• Better organic growth warrants higher valuation.

Macquarie on Ashok Leyland

• Maintained ‘Underperform’ with a price target of Rs 113.
• June quarter’s operating income was below estimates.
• Volume growth drives margin improvement.
• Domestic medium and heavy commercial vehicle market share at three-year low.
• Underperform on near term demand uncertainty, high competitive intensity and expensive valuations.

Citi on Glenmark Pharma

• Maintained ‘Neutral’ with a price target of Rs 640.
• Received approval of gWelchol suspensiona - $73 million brand in the U.S.
• Competition is difficult to predict.
• Market share gains key to track.
• Execution in the U.S. is key to sustained recovery

Citi on Shriram Transport Finance

• Maintained ‘Buy’ with a price target of Rs 1,580.
• SHTF sees asset quality improving gradually with gross NPA ratio declining.
• Expect net interest margins to sustain despite rise in yields.
• Merger with Shriram City Union a possibility.
• Expect 18-20 percent growth rate; can achieve 18 percent RoE in two years.

JPMorgan on ONGC

• Maintained ‘Overweight’ with a price target of Rs 265.
• Fears of subsidy, acquisition of GSPC's KG block, impending HPCL merger led to de-rating.
• Formal restructuring refining and petchem assets would be a positive.
• Net beneficiary of rupee depreciation and higher domestic gas prices.
• Higher cess is more likely than an explicit subsidy.
• Stock lacks immediate catalysts; believe risk-reward favourable for long term.