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.
- 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
- Maruti Suzuki India
- Yes Bank
Earnings To Watch
- Bharat Financial Inclusion
- 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
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.
- Petron Engineering Construction Ltd. and Nagreeka Capital & Infrastructure Ltd. placed under ASM framework.
- Rupee closed at 68.79/$ on Wednesday from 68.95/$ on Tuesday
- 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)
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
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
- 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.
- 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.
- 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
- 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.
- 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
- 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.
- 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
- 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.
- 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
- 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.
- 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
- 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.
- 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
- 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.
- 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.