Stocks To Watch: Adani Ports, Kwality, M&M, Punjab National Bank, Sun Pharma
Asian stocks rose Tuesday, though risk appetite remained subdued as earnings season continued.
Equity benchmarks ticked higher in Japan and Korea with Australian shares posting declines. Hong Kong and Chinese stocks outperformed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India was little changed at 11,434.50.
Short on time? Well, then listen to this podcast for All You Need To Know before the opening bell!
Here Are The Stocks To Watch Out For In Today’s Trade
- Sun Pharma launched Kapspargo Sprinkle in the U.S.
- ONGC board approved its entire stake sale of 49 percent in Pawan Hans (PTI).
- Unichem Labs received four observations for its API manufacturing facility in Maharashtra.
- Three Indian ports may acquire majority stake in Dredging Corporation of India.
- Kridhan Infra received civil works order worth Rs 132.6 crore in Uttar Pradesh.
- IZMO bagged multi-crore contract from leading European Automotive OEM.
- Sagar Cements: Cement sales for July up 13.4 percent at 219,748 metric tonne.
- Kwality said that its results will be delayed due to technical problems.
- Rolta India said due to unforeseen circumstances the Group will be unable to perform its obligations under restructuring pact.
Nifty Earnings To Watch
- Mahindra & Mahindra
Other Earnings To Watch
- Adani Enterprises
- Adani Transmission
- AU Small Finance Bank
- Bombay Dyeing
- Edelweiss Financial Services
- Future Lifestyle Fashions
- Future Supply Chain Solutions
- Glaxosmithkline Consumer Healthcare
- Inox Wind
- Mcdowell Holdings
- Motherson Sumi Systems
- Punjab National Bank
- Somany Ceramics
- Thomas Cook
- TVS Motor
- Wonderla Holidays
Earnings Reactions To Watch
Nava Bharat Ventures (Q1, YoY)
- Revenue up 106.2 percent at Rs 740.8 crore.
- Net profit up 5.6 times at Rs 85.4 crore.
- Ebitda up 6.2 times at Rs 275.6 crore.
- Margins at 37.2 percent versus 12.4 percent.
Ujjivan Financial Services (Q1, YoY)
- NII up 61 percent at Rs 222.4 crore.
- Net Profit of Rs 45 crore versus loss of Rs 74.9 crore.
- Provisions at Rs 15.1 crore versus Rs 34.7 crore (QoQ).
- GNPA at 2.7 percent versus 3.6 percent (QoQ).
- NNPA at 0.3 percent versus 0.7 perent (QoQ).
Adani Power (Q1, YoY)
- Revenue down 30.9 percent at Rs 3,829.7 crore.
- Net loss at Rs 825.2 crore versus net loss of Rs 452.8 crore.
- Ebitda down 25.8 percent at Rs 1,158.8 crore.
- Margin at 30.3 percent versus 28.2 percent.
Max Financial Services (Q1, YoY)
- Revenue up 37 percent at Rs 129 crore.
- Net profit up 12 percent at Rs 75 crore.
Praj Industries (Q1, YoY)
- Revenue up 3.1 percent at Rs 191.6 crore.
- Net profit up at Rs 3.5 crore.
- Ebitda up 4.7 times at Rs 4.2 crore.
- Margin at 2.2 percent versus 0.5 percent.
Dalmia Bharat Sugar (Q1, YoY)
- Revenue up 2.6 percent at Rs 653.3 crore.
- Net profit up 12.5 percent at Rs 62 crore.
- Ebitda down 13.9 percent at Rs 83.9 crore.
- Margin at 12.8 percent versus 15.3 percent.
Dixon Technologies (Q1, YoY)
- Revenue down 13.4 percent at Rs 592.7 crore.
- Net profit up 18.5 percent at Rs 12.8 crore.
- Ebitda up 23.7 percent at Rs 26.1 crore.
- Margin at 4.4 percent versus 3.1 percent.
Avanti Feeds (Q1, YoY)
- Revenue up 4.2 percent at Rs 1,040.2 crore.
- Net profit down 41.6 percent at Rs 85.7 crore.
- Ebitda down 41.3 percent at Rs 132 crore.
- Margin at 12.7 percent versus 22.5 percent.
Syndicate Bank (Q1, YoY)
- Net Interest Income down 5.9 percent at Rs 1,505.9 crore.
- Net loss at Rs 1,281.8 crore versus net loss of Rs 263.2 crore.
- Provisions at Rs 1,774.1crore versus Rs 3,544.7 crore (QoQ).
- GNPA at 12.59 percent versus 11.53 percent (QoQ).
- NNPA at 6.64 percent versus 6.28 percent (QoQ).
Adani Ports and Special Economic Zone (Q1, YoY)
- Revenue down 12.2 percent at Rs 2,411 crore.
- Net profit down 9.2 percent at Rs 690.7 crore.
- Ebitda up 1.4 percent at Rs 1,588.32 crore.
- Margin at 65.9 percent versus 57.1 percent.
Dhanlaxmi Bank (Q1, YoY)
- Net Interest Income down 5 percent at Rs 81.1 crore.
- Net loss at Rs 45 crore versus net profit at Rs 8 crore.
- Provisions at Rs 65 crore versus Rs 80.1 crore (QoQ).
- GNPA at 8.94 percent versus 7.35 percent (QoQ).
- NNPA at 3.79 percent versus 3.19 percent (QoQ).
- First State Indian Subcontinent Fund bought 4.64 lakh shares or 0.9 percent equity at Rs 500 each.
- Smaller Cap World Fund Inc sold 26.17 lakh shares or 5.1 percent equity at Rs 501.75 each.
- Manulife Global Fund - India Equity Fund sold 2.26 lakh shares or 0.6 percent equity at Rs 697.03 each.
- Satpal Khattar bought two lakh shares or 1.1 percent equity at Rs 493.11 each.
Who’s Meeting Whom
- Balaji Telefilms to meet UBS on Aug. 7.
- Vedanta to meet investors from Aug. 7-8.
- Srikalahasthi Pipes promoters acquired 35,000 shares from Aug 2-3.
(As Reported on Aug. 06)
- Vakrangee circuit filter revised to 20 percent from 5 percent.
- Den Networks, Hathway Cable, KRBL, Vimta Labs circuit filter revised to 20 percent from 10 percent.
- 5Paisa Capital, Link Pharma circuit filter revised to 10 percent from 5 percent.
- Morepen Labs, VIP Industries circuit filter revised to 5 percent from 20 percent.
- Adani Green, Morepen Labs, VIP Industries, Gujarat Ambuja Exports placed under ASM framework.
- DB Corp buy back period from Aug 8 – 23.
- Gallant Ispat stock split to Re 1 from Rs 10 per share.
Money Market Update
- Rupee ended at 68.89/$ on Monday versus 68.62/$ on Friday.
- Nifty August Futures closed trading at 11,414.2 premium of 27 points versus 34.9 points.
- August series-Nifty OI up 0.5 percent and Bank Nifty OI up 12 percent.
- India VIX ended at 12.5, up 4 percent.
- Max OI for Aug series at 11,500 Call, OI at 34.5 lakhs, OI up 10 percent.
- Max OI for Aug series at 11,000 Put OI at 50 lakhs, OI up 3 percent.
- In ban: Adani Power, Jet Airways
- New in ban: None
- Out of ban: None
- Nifty PCR at 1.69 versus 1.72.
- Nifty Bank PCR at 1.50 versus 1.34.
Active Stock Futures
Elara Capital on V-Mart Retail
- Initiated ‘Buy’ with a price target of Rs 3,316.
- Pioneer in value retailing in the organized space.
- One of the best plays in India’s organized apparel retail sector.
- Huge untapped opportunity up for grabs; Retail market to touch $1.3 trillion by March 2020.
- Expect revenue, Ebitda and net profit to grow at a compounded annual growth rate of 25 percent, 32 percent and 31 percent over FY18-20.
- Strong RoCE and free cashflow generation to continue.
HSBC on SAIL
- Maintained ‘Buy’; cut price target to Rs 100 from Rs 110.
- Ebitda missed estimates, largely driven by higher than expected costs.
- Ebitda/tonne benefited from ramping up of expanded and upgraded plants.
- Guidance for rising employee costs a concern.
- Volume guidance of 17 metric tonnes looks realistic now.
Macquarie on Graphite India
- Maintained ‘Outperform’; raised price target to Rs 1,410 from Rs 1,260.
- June quarter’s operating income came above estimates led by higher realization.
- Higher prices and utilisation should absorb cost increase in 2018-19.
- Cost to gradually increase but little risk to margins.
- Price strength to sustain; Volumes to grow with higher utilisation.
Investec on Dixon Technologies
- Maintained ‘Buy’ with a price target of Rs 3,460.
- June quarter was impacted by one-off debtor write-off, forex and commodity cost increase.
- Lighting business delivered stellar margins.
- Dixon added new large customers which significantly improves revenue visibility.
- See several drivers that should contribute to strong earnings growth.
Brokerages On Britannia
- Maintained ‘Buy’ with a price target of Rs 7,700.
- Margin improvement led improving gross margin and optimising other expenses.
- Efforts to restructure international units with sub-par profitability to continue.
- Key beneficiary of rural upswing, diversification on track.
- Maintain buy on good revenue and earnings growth visibility compared to peers.
- Maintained ‘Buy’ with a price target of Rs 7,235.
- Ebitda came below estimates as better gross margin was offset by higher other expenses.
- International markets remained flat.
- Believe Britannia has re-invested gross margin benefit in ad-spend to support volume growth.
- Bullish stance on ability to drive premiumisation by launching affordable packs of premium products.
Brokerages On Arvind
- Maintained ‘Buy’ with a price target of Rs 515.
- June quarter’s revenue growth below expectation due to subdued textile performance.
- Robust quarter for brand and engineering.
- Management maintained strong growth guidance for 2018-19.
- See marginal increase in competitive intensity for Arvind.
- Maintained ‘Buy’ with a price target of Rs 550.
- Juen quarter was a mixed quarter.
- B&R business scaling up well; Textiles margins correct.
- Lower DEPB rates, currency hedges impact textiles margins.
- In final stages of demerger approvals; Expect approvals to come in by early Q2.
Brokerages on Ujjivan
- Maintained ‘Outperform’ with a price target of Rs 490.
- June quarter was a bit of a mixed bag.
- Aggressive branch opening; but slower growth.
- Expect credit costs to drop quite significantly in 2018-19.
- Ujjivan is top pick in microfinance.
- Maintained ‘Buy’ with a price target of Rs 399.
- Lower MFI growth, higher opex leads to net profit miss.
- Calculated net interest margins seems to have declined QoQ to 9.79 percent.
- Gross NPAs came in at 2.7 percent versus 3.7 percent (QoQ).