Stocks To Watch: Bharti Airtel, ITC, Maruti Suzuki, PNB Housing Finance, Syngene

Asian stocks climbed, tracking gains in U.S. shares, after U.S. President Donald Trump reached an agreement with European Commission President Jean-Claude Juncker aimed at averting a transatlantic trade war. The yen climbed and the dollar retreated.

Equities in Tokyo and Seoul advanced after the S&P 500 Index hit an all-time high, with the two sides agreeing to suspend new tariffs while negotiating over trade.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent higher at 11,170.50 as of 7:48 a.m.

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

• Infosys arm to provide core banking solution to Myanmar based Farmers Development Bank.
• JSW Steel completes 100 percent acquisition of Aferpi and 69.27 percent stake purchase in Piobino Logistics.
• PNB invites bids for sale of stake in PNB Housing Finance.
• Aurobindo Pharma: FDA approves ANDA for ophthalmic drops.
• Glenmark says GBR 310 shows biosimilarity to Omalizumab.
• ICICI Bank says not received any communication from SFIO.
• L&T maintains FY19 order inflow and revenue guidance.

Offerings

• HDFC Asset Management IPO continues on Day 2. The issue is subscribed 1.03 times.

Nifty Earnings To Watch

• Bharti Airtel
• Dr. Reddy's Laboratories
• ITC
• Maruti Suzuki India
• Yes Bank

Earnings To Watch

• Bharat Financial Inclusion
• Biocon
• CESC
• Colgate
• Petronet LNG
• SBI Life
• Shriram Transport
• Tata Power

Earnings Reaction To Watch

L&T (Q1, YoY)

• Revenue up 19 percent at Rs 28,283 crore.
• Net profit up 36 percent at Rs 1,215 crore.
• Ebitda up 40 percent at Rs 2,913 crore.
• Margin at 10.3 percent versus 8.7 percent.

Hero MotoCorp (Q1, YoY)

• Revenue up 10.4 percent at Rs 8,809.8 crore.
• Net profit at Rs 909.2 crore versus Rs 914 crore.
• Ebitda up 6.3 percent at Rs 1,377.3 crore.
• Margin at 15.6 percent versus 16.2 percent.

Ambuja Cements (Q1, YoY)

• Revenue up 5.7 percent at Rs 3,016.9 crore.
• Net profit up 27.2 percent at Rs 499 crore.
• Ebitda down 4.4 percent at Rs 622.3 crore.
• Margin at 20.6 percent versus 22.8 percent.

Canara Bank (Q1, YoY)

• Net income up 43.1 percent at Rs 3,882.9 crore.
• Net profit up 12 percent at Rs 281 crore.
• Provisions up 72 percent at Rs 2,466.2 crore.
• NNPA at 6.91 percent versus 7.48 percent.
• GNPA at 11.05 percent versus 11.84 percent.

IFB Agro Industries (Q1, YoY)

• Revenue up 24.3 percent at Rs 284.2 crore.
• Net profit at Rs 11.8 crore versus Rs 7.3 crore.
• Ebitda at Rs 18.5 crore versus Rs 12.9 crore.
• Margin at 6.5 percent versus 5.6 percent.

Reliance Nippon Asset Management (Q1, YoY)

• Revenue up 7.1 percent at Rs 394 crore.
• Net profit up 1.8 percent at Rs 111 crore.
• Ebitda up 24.8 percent at Rs 141 crore.
• Margin at 35.8 percent versus 30.7 percent.

ADF Foods (Q1, YoY)

• Revenue up 4.7 percent at Rs 51.4 crore.
• Net profit at Rs 6 crore versus Rs 4.9 crore.
• Ebitda at Rs 8.5 crore versus Rs 4.1 crore.
• Margin at 16.5 percent versus 8.4 percent.

Syngene International (Q1, YoY)

• Revenue up 39.5 percent at Rs 406 crore.
• Net profit up 6.5 percent at Rs 66 crore.
• Ebitda up 23.4 percent at Rs 98.6 crore.
• Margin at 24.3 percent versus 27.4 percent.

Sanofi India (Q1, YoY)

• Revenue up 15.1 percent at Rs 639.5 crore.
• Net profit up 35.1 percent at Rs 99.6 crore.
• Ebitda up 70.5 percent at Rs 120.4 crore.
• Margin at 18.8 percent versus 12.7 percent.

Shriram City Union Finance

• Net Interest Income up 13.8 percent at Rs 937.7 crore.
• Net profit up 14.72 percent at Rs 229.6 crore.

Bharti Infratel (Q1, QoQ)

• Revenue up 0.3 percent to Rs 3,674 crore.
• Net profit up 5 percent to Rs 638 crore.
• Ebitda down 5 percent to Rs 1521 crore.
• Margin at 41.4 percent versus 43.9 percent.

GE T&D India Ltd (Q1, YoY)

• Revenue down 3.9 percent at Rs 1,162.4 crore.
• Net profit up 33.1 percent at Rs 82.1 crore.
• Ebitda up 36.7 percent at Rs 144.2 crore.
• Margin at 12.4 percent versus 8.7 percent.

Rane Madras (Q1, YoY)

• Revenue up 34.1 percent at Rs 394.2 crore.
• Net profit at Rs 4.1 crore.
• Ebitda up 19.3 percent at Rs 27.8 crore.
• Margin at 7.1 percent versus 7.9 percent.

Security and Intelligence Services (India) (Q1, YoY)

• Revenue up 29.6 percent at Rs 1,611.4 crore.
• Net profit at Rs 39.5 crore versus Rs 21.5 crore.
• Ebitda up 11 percent at Rs 74.4 crore versus Rs 67 crore.
• Margin at 4.6 percent versus 5.4 percent.

KPIT Technologies (Q1, QoQ)

• Revenue up 5 percent at Rs 1013.8 crore.
• Net profit up 2 percent at Rs 77.4 crore.
• EBIT up 11.2 percent at Rs 90.4 crore.
• Margin at 8.9 percent versus 8.4 percent.

IRB Infra Developers (Q1, YoY)

• Revenue down 15.4 percent at Rs 1,538 crore.
• Net profit up 5.1 percent at Rs 250.1 crore.
• Ebitda down 8.7 percent at Rs 746.7 crore.
• Margin at 48.6 percent versus 45 percent.

Intellect Design Arena (Q1, QoQ)

• Profit up 58 percent at Rs 43.5 crore on higher other income
• Revenue down 2.6 percent at Rs 299 crore
• EBIT down 78 percent at Rs 3.8 crore
• EBIT margin at 1.3 percent versus 5.6 percent
• Other income includes gain of Rs 37.7 crore on sale of land held by company

Bulk Deals

Navin Fluorine International

• New World Fund acquired 3.87 lakh shares or 0.79 percent equity at Rs 604.06 each.
• Grantham, Mayo, Van Otterloo & Co. LLC sold 3.87 lakh shares or 0.79 percent equity at Rs 604.07 each.

Who’s Meeting Whom

• Inox Leisure to meet DSP Blackrock on July 26.
• ACC to meet Ashmore Investments on July 26.
• Jain Irrigation System to meet Kopernik Global Investors on July 26.

Trading Tweaks

• Petron Engineering Construction Ltd. and Nagreeka Capital & Infrastructure Ltd. placed under ASM framework.

Rupee

• Rupee closed at 68.79/$ on Wednesday from 68.95/$ on Tuesday

F&O Cues

• Nifty July futures closed trading at 11,136.4 premium of 4.4 points versus 8 points.
• Nifty August futures closed trading at 11,162.9 premium of 31 points versus 33 points.
• Across series: Nifty open interest down 1 percent; Bank Nifty open interest up 2 percent.
• Rollover: Nifty at 51 percent, Bank Nifty at 51 percent.
• India VIX ended at 12.2, down 2 percent.
• Max open interest for July series at 11,200 Call (open interest unchanged at 32.1 lakh)
• Max open interest for July series at 11,000 Put (open interest at 49.7 lakh, down 10 percent)

F&O Ban

In ban: Adani Enterprises

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

Active Stock Futures

Brokerage Radar

CLSA on Bharti Infratel

• Maintained ‘Outperform’; cut price target to Rs 320 from Rs 364.
• June quarter results were above estimates.
• Tenancy exits continue; Additions remain muted.
• Near-term pressures remain, but long-term growth will revive.

Macquarie on Crompton Consumer

• Maintained ‘Outperform’ with a price target of Rs 292.
• Crompton reported strongest top line growth aided by low base.
• Margin expansion continues on reduced ESOP costs and better product mix.
• Revenue growth recovering indicating effects of GTM strategy waning.
• H2 to witness commercial launch of two key products.
• Impressive margin performance to sustain.

IDFC Securities on PVR

• Maintained ‘Outperform’ with a price target of Rs 1,568.
• Good start to the year; Content pipeline looking strong.
• Strong exhibition segment metrics.
• Stock is more looking at the outcome of the F&B issue going on.

Brokerages On L&T

Investec

• Maintained ‘Buy’ with a price target of Rs 1,620.
• In-line performance by Core; Stellar show by Services.
• Strong orderflow momentum is likely to continue.
• Management maintained its guidance on all parameters.
• Continue to see L&T as a beneficiary of government capex.

BofAML

• Maintained ‘Buy’; cut price target to Rs 1,522 from Rs 1,541.
• June quarter’s beat on strong services income; Core business a marginal miss on weak infra margins.
• Order flows miss estimates; Trend encouraging.
• Seek more clarity on realty, other segments.
• Valuations attractive vs. its peers & its growth/RoE.

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 1,600.
• June Quarter Review: Big picture looks good, but Realty hit a dampener.
• Consolidated top-line beat, led by service businesses.
• Core EBITDA bogged down by large provisions and impairment.
• The Realty business drag on June quarter results.

Brokerages On Hero MotoCorp

CLSA

• Maintained ‘Sell’; cut price target to Rs 3,000 from Rs 3,115.
• Weak June quarter results with net profit below estimates.
• Hero to focus on brand over pricing.
• Remain concerned on margins as Co.’s will find it difficult hike prices.
• Stock is not cheap despite a recent correction.

Macquarie

• Maintained ‘Outperform’; cut price target to Rs 4,300 from Rs 4,400.
• Margin declined as tax incentives at Haridwar ended.
• Rural demand growing faster than urban.
• Expect Hero to consolidate its dominant leadership.
• Like Hero for its strong franchise, robust FCF, high dividend yield and healthy return ratios.

Brokerages On Jubilant Foodworks

Macquarie

• Maintained ‘Outperform’; raised price target to Rs 1,600 from Rs 1,551.
• June Quarter Review: Net profit ahead of estimates driven by higher same-store-sales growth (SSSG).
• SSSG continues to surprise on the positive side.
• Steady gross margin allays concerns on margin dilution from new EDV offer.
• Jubilant Foodworks is top pick in the India consumer space.

CLSA

• Maintained ‘Buy’; raised price target to Rs 1,900 from Rs 1,575.
• Big beat, once again; Strong SSSG despite a decent base.
• Gross margin steady despite extension of the Every Day Value.
• Retain our faith despite 115 percent return in the past 12 months.

Brokerages On JSW Steel

IDFC Securities

• Maintained ‘Underperform’ with a price target of Rs 312.
• June Quarter Review: Higher steel prices boost profitability.
• Marginal beat due to higher volume, realisation and higher incentive income.
• Key Positives: Higher steel realisation improving spreads; EBITDA/t of Rs 12,590.
• Expect steel profitability to taper off in subsequent quarters.

B&K Securities

• Maintained ‘Outperform’ with a price target of Rs 340.
• Better than expected EBITDA on account of higher blended realisations.
• Higher than expected other income and lower tax rate further boost net profit.
• Expect steel spreads to witness marginal decline.

Brokerages On Ambuja Cements

Nomura

• Maintained ‘Neutral’ with a price target of Rs 300.
• Strong June quarter similar to subsidiary ACC.
• Strong result driven by beats on all key parameters.
• Volume growth to get better ahead of 2019 elections.
• Believe that cement sector on the cusp of an upturn.
• Prefer UltraTech and Shree Cement.

CLSA

• Maintained ‘Buy’; cut price target to Rs 300 from Rs 325.
• June quarter was well ahead of estimates.
• Unit EBITDA got a boost from realisations and costs.
• Factor in lower spot cement prices which leads to 8-13 percent cut in consolidated EPS estimates.

Brokerages On BHEL

Daiwa Capital

• Maintained ‘Buy’; cut price target to Rs 100 from Rs 110.
• June quarter review: still awaiting pick-up in execution.
• Order backlog rose 15 percent YoY with 85 percent backlog executable.
• Execution pick-up still awaited, although better likelihood now.
• See better visibility in order execution and improved operational performance over FY19-20.

Deutsche Bank

• Maintained ‘Buy’; cut price target to Rs 120 from Rs 130.
• June quarternet profit and EBITDA ahead of estimates.
• Orders are more diversified now - none from power in June quarter.
• Re-rating will depend on recovery of receivables.
• BHEL is preferred midcap industrials stock.

Brokerages On Canara Bank

Macquarie

• Maintained ‘Underperform’ with a price target of Rs 200.
• Net profit beats estimates on lumpy recoveries in June quarter.
• Believe that making quarterly forecasts may be difficult in light of the lumpiness of resolutions.
• Asset quality improves; Ambitious targets set for 2018-19.
• Management expects SME stress to ease in second and third quarter.

Kotak Securities

• Maintained ‘Add’ with a price target of Rs 300.
• Gross NPLs shows the final sign of reversals; Possibility of further improvement.
• Gradual shift in focus from slippages to aid valuation expansion.
• Expect stock price to show a positive momentum as these events unfold.