A monitor showing the prices of virtual currencies is displayed at the Bithumb exchange office in Seoul, South Korea. (Photographer: SeongJoon Cho/Bloomberg)

Stocks to Watch: Adani Ports, Britannia, HDFC AMC’s Debut, ICRA, Wipro

Asian stocks open modestly higher Monday as earnings seasons rolls on. The yuan held on to its gains after a surprise move by the central bank to make it more expensive to bet against the currency triggered a rally in China’s currency.

Equity benchmarks edged higher in Japan, Australia and South Korea, while futures signaled a higher open for Hong Kong ahead of results from regional heavyweights HSBC Holdings Plc and Softbank Group Corp.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent higher at 11,420.50 as of 7:20 a.m.

Short on time? Well, then listen to this podcast for a quick summary before the opening bell!

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

  • Avendus set to buy IDFC mutual funds and securities units in deal valued between Rs 5,000-6,000 crore (The Economic Times)
  • Wipro to settle National Grid lawsuit for $75 million in the U.S.
  • ICRA proposing a buyback of shares on Aug. 9.
  • Allahabad Bank mulls raising equity capital by was preference issue to GoI on Aug. 14.
  • Premier Explosives bagged orders worth Rs 68.9 crore from Coal India.
  • Puravankara’s Goa arm received bookings for more than 800 units for residential project.
  • Tata Group and Dabur India to bid for Kraft Heinz $1 billion sale of India business. Cadila Healthcare arm shows interest in the Kraft Heinz offer for sale. (Bloomberg)
  • TCS’ board approved buyback. Record date fixed at Aug. 18.
  • Dr. Reddy’s files IPR challenges to Celgene patents on Revlimid.
  • Alembic Pharma: Bimatoprost ANDA gets tentative approval from USFDA.

Also read: Kraft Heinz Is Narrowing Bidders in $1 Billion India Sale

New Listing

  • HDFC AMC shares to start trading on BSE/NSE after IPO that got 83 times demand at Rs 1,100 each.

Also read: HDFC AMC’s Initial Public Offering: Here’s All You Need To Know

Nifty Earnings To Watch

  • Adani Ports & SEZ

Other Earnings To Watch

  • Adani Power
  • Arvind
  • Avanti Feeds
  • Britannia Industries
  • Caplin Point Laboratories
  • Dena Bank
  • Firstsource Solutions
  • Graphite India
  • Max Financial Services
  • Monsanto India
  • Nava Bharat Ventures
  • Parag Milk Foods
  • Ujjivan Financial Services
  • Punjab National Bank
  • Syndicate Bank
  • Ujjivan Financial

Also read: Fiat Chrysler Seeks to Block Mahindra Jeep Knock-Off in U.S.

Earnings Reaction To Watch

Relaxo Footwear (Q1, YoY)

  • Revenue up 17.3 percent to Rs 566.5 crore.
  • Net profit up 23 percent to Rs 46 crore.
  • Ebitda up 17 percent to Rs 83 crore.
  • Margins at 14.6 percent versus 14.7 percent.

Suzlon Energy (Q1, YoY)

  • Revenue down 50.5 percent to Rs 1,277.5 crore.
  • Ebitda down 83.8 percent to Rs 77 crore.
  • Net Loss of Rs 572.8 crore versus Rs 49 crore profit.
  • Forex gain of Rs 253.6 crore versus Rs 42.4 crore.

Wockhardt (Q1, YoY)

  • Revenue up 13.1 percent to Rs 1,007.7 crore.
  • Ebitda at Rs 28.8 crore versus Ebitda loss of Rs 79.3 crore.
  • Margin at 2.8 percent versus -8.9 percent.
  • Net loss narrows to Rs 86.2 crore versus Rs 409.7 crore.

KEC International (Q1, YoY)

  • Revenue up 13.4 percent to Rs 2,104.7 crore.
  • Net profit up 37.8 percent to Rs 86.8 crore.
  • Ebitda up 22.6 percent to Rs 216 crore.
  • Margin at 10.3 percent versus 9.5 percent.

Sical Logistics (Q1, YoY)

  • Revenue up 32.1 percent to Rs 323.5 crore.
  • Net profit down 64 percent to Rs 4 crore.
  • Ebitda down 13 percent to Rs 38.4 crore.
  • Margin at 11.9 percent versus 18 percent.

Berger Paints (Q1, YoY)

  • Revenue up 18.9 percent to Rs 1,483 crore.
  • Net profit up 19.5 percent to Rs 135 crore.
  • Ebitda up 22.6 percent to Rs 227 crore.
  • Margin at 15.3 percent versus 14.8 percent.

Waterbase (Q1, YoY)

  • Revenue up 22.5 percent to Rs 154.3 crore.
  • Net profit up 23 percent to Rs 17.7 crore.
  • Ebitda up 3.6 percent to Rs 26 crore.
  • Margin at 16.8 percent versus 19.8 percent.

Steel Authority of India (Q1, YoY)

  • Revenue up 37.4 percent to Rs 15,907 crore.
  • Net profit of Rs 540.4 crore versus net loss of Rs 801.4 crore.
  • Ebitda at Rs 2,576.5 crore vs Ebitda loss at Rs 83.8 crore.

Indo Count Industries (Q1, YoY)

  • Revenue up 10.2 percent to Rs 440.3 crore.
  • Net profit down 10 percent to Rs 28.8 crore.
  • Ebitda up 44.4 percent to Rs 47.5 crore.
  • Margin at 10.8 percent versus 8.2 percent.

Jaiprakash Power Ventures (Q1, YoY)

  • Revenue up 8.75 percent to Rs 1083.07 crore.
  • Ebitda up 24.4 percent to Rs 436.8 crore.
  • Margin at 40.3 percent versus 35.2 percent.
  • Net profit at Rs 4.14 crore versus net loss of Rs 19.02 crore.

Laurus Labs (Q1, YoY)

  • Revenue up 12.7 percent to Rs 539 crore.
  • Net profit down 57.3 percent to Rs 16.6 crore.
  • Ebitda down 16.6 percent to Rs 80.5 crore.
  • Margin at 14.9 percent versus 20.2 percent.

Adlabs Entertainment (Q1, YoY)

  • Revenue down 2.2 percent to Rs 84.7 crore.
  • Net loss of Rs 20.9 crore versus net loss of Rs 22.5 crore.
  • Ebitda up 5.9 percent to Rs 34.1 crore.
  • Margin at 40.3 percent versus 37.2 percent.

Shipping Corporation of India (Q1, YoY)

  • Revenue up 3.4 percent to Rs 894.3 crore.
  • Net loss of Rs 206 crore versus net loss of Rs 6.7 crore.
  • Ebitda down 98.2 percent to Rs 3 crore.
  • Margin at 0.3 percent versus 19.2 percent.

Entertainment Network (India) (Q1, YoY)

  • Revenue up 16.4 percent to Rs 121.6 crore.
  • Net profit up 102.2 percent to Rs 9.3 crore.
  • Ebitda up 65.5 percent to Rs 28.3 crore.
  • Margin at 23.3 percent versus 16.4 percent.

Sandhar Tech (Q1, YoY)

  • Revenue up 25 percent to Rs 493 crore.
  • Net profit up 48 percent to Rs 22 crore.
  • Ebitda up 15 percent to Rs 49 crore.
  • Margin at 10 percent versus 10.8 percent.

PI Industries (Q1, YoY)

  • Revenue up 9.5 percent to Rs 606 crore.
  • Net profit down 18.4 percent to Rs 82 crore.
  • Ebitda down 9.4 percent to Rs 118 crore.
  • Margin at 19.5 percent versus 23.6 percent.

Bulk Deals

  • Delta Corp: Morgan Stanley France sold 23 lakh shares, or 0.9 percent equity at Rs 266.07 each.
  • PVR: Fidelity Investment Trust-Fidelity International Discovery Fund sold 4.03 lakh shares, or 0.9 percent equity at Rs 1172.59 each.

Indiabulls Housing Finance Ltd

  • Jasmine Capital Investments Pte Ltd bought 22.7 lakh shares, or 0.5 percent equity at Rs 1374.6 each.
  • Orient Global Cinnamon Capital Limited sold 22.7 lakh shares, or 0.5 percent equity at Rs 1374.6 each.

Tejas Networks Ltd

  • Eastbridge Capital Master Fund Limited bought 19.17 lakh shares, or 2.1 percent equity at Rs 259.98 each.
  • Birla Sun Life MF bought 8 lakh shares, or 0.9 percent equity at Rs 260.25 each.
  • Samena Spectrum Co. sold 45 lakh shares, or 4.9 percent equity at Rs 260.27 each.

Trading Tweaks

  • TVS Electronics Ltd. placed under the ASM framework.
  • Venkys circuit filter revised to 10 percent.
  • Music Broadcast buyback worth Rs 57 crore at a maximum Rs 385 per share starts today.

Who’s Meeting Whom

  • Indian Toner’s and Developers to meet investors on Aug. 6.
  • CRISIL to meet Motilal Oswal Securities and other investors from Aug. 6-20.
  • Infosys to meet investors from Aug. 7-9.

Insider Trades

  • JSW Steel promoter JSW Techno Projects Management Ltd. acquired 8 lakh shares from July 31–August 1.
  • Singer India promoter Retail Holdings (India) B.V. sold 4,500 shares on Aug. 2.
  • Cosmo Films promoter Ashok Jaipuria acquired 16,244 shares from Aug. 1–2.
  • Plastiblends India promoter Jyoti V Kabra acquired 11,085 shares from July 23–Aug. 1.

As reported on Aug. 3

Rupee

  • Rupee ended at 68.62/$ versus 68.71/$ on Thursday.

F&O Cues

  • Nifty August Futures closed trading at 11,395.7, premium of 34.9 points versus 37 points.
  • August series-Nifty Open Interest up 3 percent and Bank Nifty Open Interest up 15 percent.
  • India VIX ended at 12, down 3.8 percent.
  • Maximum Open Interest for August series at 11,500 Call, Open Interest at 31.4 lakh, Open Interest down 12 percent.
  • Maximum Open Interest for August series at 11,000 Put Open Interest at 49.5 lakh, Open Interest up 7 percent.

F&O Ban

  • In Ban: Adani Power, Jet Airways
  • New In Ban: Jet Airways
  • Out Of Ban: None

Active Stock Futures

Brokerage Radar

Deutsche Bank on Berger Paints

  • Initiated ‘Buy’ with a price target of Rs 375.
  • Product differentiation and distribution expansion to drive double-digit volume growth.
  • New niche segments a strong medium-term growth driver.
  • Expect moderate margin expansion to continue.
  • Expect revenue and net profit grow at a compounded annual growth rate of 17 percent and 22 percent respectively over FY18-21.

Deutsche Bank on Kansai Nerolac

  • Initiated ‘Buy’ with a price target of Rs 575.
  • Fastest-growing paint company and key beneficiary of a likely capex cycle revival.
  • Margin expansion to continue led by premiumisation and operating leverage.
  • Leveraging parents global technology for new launches.
  • Capacity to increase by 50 percent over next three years.
  • Expect revenue and net profit to grow at a compounded annual growth rate of 17 percent over FY18-21.

Morgan Stanley on GAIL (India)

  • Maintained ‘Overweight’; cut price target to Rs 473 from Rs 511.
  • Fundamentals are getting strong.
  • Positives: push to lower pollution, clarity on hike in pipeline tariff.
  • Weaker U.S. gas prices coupled with higher oil prices to lead to upside risks.
  • Cut price target due to lower multiples across its businesses due to higher bond yields in India.

JPMorgan on HCL Tech

  • Maintained ‘Overweight’ with a price target of Rs 1,050.
  • Risk-reward balance delicately poised.
  • Judicious course-correction can shift balance in a more favorable direction.
  • Do not see HCL making disruptive moves to improve its positioning in digital.
  • Maintaining margins can be difficult in the face of continued growth difficulties.

Morgan Stanley on Tata Global Beverages

  • Maintained ‘Underweight’; raised price target to Rs 170 from Rs 150.
  • June quarter earnings were in-line with estimates.
  • Another quarter of weak operating performance.
  • Low earnings visibility remains the key concern.

Citi on HDFC Bank

  • Maintained ‘Buy’ with a price target of Rs 2,590.
  • Capital raise to boost capital ratios and support growth.
  • Accelerated growth to help net interest margins.
  • See good lending opportunities across wholesale and SME space as well.

Brokerages On Hero MotoCorp

Citi

  • Maintained ‘Buy’ with a price target of Rs 4,250.
  • Supportive macro for two wheeler growth in India.
  • Hero plans to counter opposition by product action rather than price action.
  • Access and cost of finance could be big demand drivers.
  • Second hand bike market could see a spurt.

Deutsche Bank

  • Maintained ‘Hold’ with a price target of Rs 3,550.
  • Hero to continue its strategy of "better features, higher pricing".
  • Rapid growth in 125cc segment to help improve overall scooter market-share.
  • Remain cautious on mass-market two wheeler companies.
  • Expect several headwinds for margins.

Brokerages On Godrej Properties

JPMorgan

  • Maintained ‘Neutral’ with a price target of Rs 850.
  • Accounting change impacts net earnings.
  • Like-to-like financials much better.
  • Pre-sales come off partly on higher base.
  • Real estate companies to now focus on deliveries rather than hitting revenue recognition thresholds.

Morgan Stanley

  • Maintained ‘Equal-weight’; raised price target to Rs 707 from Rs 682.
  • Opening net worth lower by Rs 740 crore due to IND AS.
  • Management optimistic on pickup and expects consolidation to continue.
  • Expect Godrej to continue to deliver on new project acquisitions.
  • Expect new launch momentum in the ensuing quarter.

Brokerages On Nestle

UBS

  • Maintained ‘Neutral’ with a price target of Rs 10,750.
  • June quarter was a strong quarter where profit surpassed estimates and volume were in line.
  • New launches continue; management warns about raw material inflation.
  • Margins to come under pressure in the near term.
  • Strong performance priced in; limited upside.

CLSA

  • Maintained ‘Outperform’; raised price target to Rs 11,700 from Rs 10,200.
  • June quarter results were ahead of estimates.
  • Good growth with strong margin expansion.
  • Input costs are inching up but strong pricing power allays margin concerns.
  • Believe Nestle is on a good growth trajectory.

Brokerages On Titan

CLSA

  • Maintained ‘Outperform’ with a price target of Rs 1,050.
  • June quarter results ahead of estimates; Massive margin gains in watches.
  • Jewellery: Higher Ebit, but weaker revenues.
  • Management sounded positive and maintained its guidance for above 25 percent jewellery growth.
  • Sustained pick-up in growth is critical for stock-price performance.

Morgan Stanley

  • Maintained ‘Overweight’ with a price target of Rs 1,080.
  • June quarter reported in line earnings.
  • Key positive for the quarter is the watch business margin.
  • Key disappointment during the quarter was the jewellery business margin.