People monitor market news outside the Bombay Stock Exchange (BSE) building. (Photographer: Adeel Halim/Bloomberg)

Stocks To Watch: Lupin, Cipla, BPCL, HPCL, NMDC, CreditAccess IPO

Asian equities pushed higher as markets opened Wednesday after U.S. stocks approached a fresh all-time high while China’s yuan extended gains triggered by further moves to stabilize the currency.

Equity benchmarks in Japan, Australian and South Korea ticked higher, and futures pointed to gains for stocks in Hong Kong and China. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India was little changed at 11,428 as of 6:51 am.

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

  • Mphasis board approved Rs 988.3 crore buyback of up to 73.3 lakh shares (3.79 percent equity) at Rs 1,350 each.
  • Glenmark Pharma received U.S. FDA acceptance of NDA for Ryaltris.
  • Patel Engineering bagged two hydroprojects and tunnel projects order worth Rs 2400 crore.
  • Gujarat High Court dismissed tax demand petition filed by Gujarat Sales Tax department against GAIL.
  • Dhanlaxmi Bank revised its MCLR across various tenors.
  • GOCL Corporation arm received explosives order worth Rs 203.09 crore from Singareni Collieries.
  • Butterfly Gandhimati Appliances CEO Prakash Iyer resigned.

Nifty Earnings To Watch

  • BPCL
  • HPCL
  • Cipla
  • Lupin

Other Earnings To Watch

  • APL Apollo Tubes
  • Balrampur Chini Mills
  • BEML
  • Blue Star
  • City Union Bank
  • EID Parry
  • Forbes & Co.
  • Future Consumer
  • Greenply Industries
  • HCC
  • Indian Bank
  • Jamna Auto Industries
  • Meghmani Organics
  • Minda Corp
  • Natco Pharma
  • NALCO
  • NMDC
  • Rashtriya Chemicals & Fertilizers
  • Ratnamani Metals & Tubes
  • Phoenix Mills
  • PNB Housing Finance
  • Shree Renuka Sugar
  • Siemens
  • Strides Shasun
  • Sundaram-Clayton
  • Thermax
  • Trent
  • 8K Miles Software

Earnings Reactions To Watch

Inox Wind (Q1, YoY)

  • Revenue up 4.6 times at Rs 430.5 crore.
  • Net profit up at Rs 10.4 crore.
  • Ebitda at Rs 68 crore.

Butterfly Gandhimati Appliances (Q1, YoY)

  • Revenue up 43.8 percent at Rs 124.4 crore.
  • Net profit at Rs 1.3 crore.
  • Ebitda at Rs 9.3 crore.

SRF (Q1, YoY)

  • Revenue up 34.6 percent at Rs 1741.3 crore.
  • Net profit up 28.9 percent at Rs 133.8 crore.
  • Ebitda up 64.6 percent at Rs 326.6 crore.
  • Margin at 18.8 percent versus 15.3 percent.

Mphasis (Q1, QoQ)

  • Revenue up 4.3 percent at Rs 1820.2 crore.
  • Net profit up 8.7 percent at Rs 258.3 crore.
  • EBIT up 3.3 percent at Rs 297.6 crore.
  • Margin at 16.3 percent versus 16.5 percent.

Future Supply Chain Solutions (Q1, YoY)

  • Revenue up 49.9 percent at Rs 227.9 crore.
  • Net profit up 37.7 percent at Rs 17.9 crore.
  • Ebitda up 34 percent at Rs 32.3 crore.
  • Margin at 14.2 percent versus 15.9 percent.

Edelweiss Financial Services (Q1, YoY)

  • Revenue up 17 percent at Rs 2,435.5 crore.
  • Net Profit up 31 percent at Rs 264 crore.

Glaxosmithkline Consumer Healthcare (Q1, YoY)

  • Revenue up 12.3 percent at Rs 1107.1 crore.
  • Net profit up 51.6 percent at Rs 200.4 crore.
  • Ebitda up 38.1 percent at Rs 230.3 crore.
  • Margin at 20.8 percent versus 16.9 percent.

Prataap Snacks (Q1, YoY)

  • Revenue up 19.2 percent at Rs 268.6 crore.
  • Net profit up 6.1 percent at Rs 10.4 crore.
  • Ebitda down 9 percent at Rs 18.1 crore.
  • Margin at 6.7 percent versus 8.8 percent.

Birla Corporation (Q1, YoY)

  • Revenue up 13.5 percent at Rs 1655.8 crore
  • Net profit up 94.2 percent at Rs 83.9 crore.
  • Ebitda up 2.5 percent at Rs 246.5 crore.
  • Margin at 14.9 percent versus 16.5 percent.
  • Exceptional expense of Rs 12.5 crore. in base quarter.

Adani Enterprises (Q1, YoY)

  • Revenue down 6.9 percent at Rs 7953.8 crore.
  • Net profit up 6.3 percent at Rs 169.4 crore.
  • Ebitda up 38.3 percent at Rs 650.4 crore.
  • Margin at 8.2 percent versus 5.5 percent.
  • Exceptional expense of Rs 185.5 crore.

Dhampur Sugar Mills (Q1, YoY)

  • Revenue down 13.6 percent at Rs 734.4 crore.
  • Net profit down 49.4 percent at Rs 31.7 crore.
  • Ebitda down 35.9 percent at Rs 91 crore.
  • Margin at 12.4 percent versus 16.7 percent.
  • Other expense up 82 percent at Rs 75.9 crore.
  • Off season gain of Rs 17.2 crore in base quarter.

Lovable Lingerie (Q1, YoY)

  • Revenue down 9.3 percent at Rs 54.9 crore.
  • Net profit down 33.9 percent at Rs 4.1 crore.
  • Ebitda down 27.4 percent at Rs 5.3 crore.
  • Margin at 9.7 percent versus 12.1 percent.

Mirza International (Q1, YoY)

  • Revenue up 3.8 percent at Rs 261.8 crore.
  • Net profit down 11.3 percent at Rs 18.1 crore.
  • Ebitda down 2.5 percent at Rs 43.1 crore.
  • Margin at 16.5 percent versus 17.5 percent.

Thomas Cook (Q1, YoY)

  • Revenue down 7.5 percent at Rs 2084.5 crore.
  • Net profit up 6.5 percent at Rs 70.6 crore.
  • Ebitda down 49.9 percent at Rs 82.8 crore.
  • Margin at 4 percent versus 5.8 percent.

IPO Watch

  • CreditAccess Grameen IPO at Rs 418-422 per share opens, close on Aug. 10.
  • Shyam Metalics seeks SEBI approval to raise Rs 909 crore in IPO.

Bulk Deals

Techno Electric and Engineering Co.

  • ECAP Equities acquired 35 lakh shares or 3.1 percent equity at Rs 279.1 each.
  • JP Financial Services Pvt sold 35 lakh shares or 3.1 percent equity at Rs 279.1 each.

Who’s Meeting Whom

  • ACC to meet Northern Cross, USA on August 8.
  • Mahindra Logistics to meet White Oak Capital, Goldman Sachs and other investors from August 8-14.

Insider Trades

  • Chambal Fertilisers & Chemicals promoter acquired 40,000 shares on August 3.

Money Market Update

Rupee ends at 68.69/$ versus previous close at 68.68/$.

F&O Cues

  • Nifty Aug Futures closed trading at 11,418 premium of 29 points versus 27 points.
  • August series-Nifty OI up 1 percent and Bank Nifty OI up 3 percent.
  • India VIX ended at 12.5, up 0.1 percent.
  • Max OI for Aug series at 11,500 Call, OI at 38.5 lakh, OI up 11 percent.
  • Max OI for Aug series at 11,000 Put OI at 51.1 lakh, OI up 1 percent.

F&O Ban

  • In Ban: Adani Enterprises, Adani Power, Jet Airways, PNB
  • New In Ban: Adani Enterprises, PNB

Put-Call Ratio

  • Nifty PCR at 1.67 versus 1.69
  • Nifty Bank PCR at 1.37 versus 1.50

Active Stock Futures

Brokerage Radar

Motilal Oswal on Punjab National Bank

  • Maintained ‘Neutral’ with a price target of Rs 85.
  • Asset quality stabilizes marginally.
  • Weak performance continues.
  • Recoveries and upgrades increased sharply.
  • Expect PNB to come back to profitability from April 2019.

Citi on TVS Motor

  • Maintained ‘Sell’; cut price target to Rs 475 from Rs 490.
  • June quarter reported weak gross margins, high tax rate hit profits.
  • TVS will not be taking price cuts.
  • Sharp increase in margins will be difficult in current environment.

Citi on AU Small Finance

  • Maintained ‘Sell’ with a price target of Rs 590.
  • June quarter review: Strong AUM growth sustains; Capital raise boosts Tier 1.
  • Pre-provisioning operating profit below estimates; Net profit inline.
  • Disbursements remains strong.

Brokerages On Hindalco

UBS

  • Maintained ‘Buy’ with a price target of Rs 330.
  • Novelis June quarter’s operating income was ahead of estimates.
  • Quarter had a tailwind in terms of better scrap spreads.
  • Expect investors to react positively to the solid performance at Novelis.

IDFC Securities

  • Maintained ‘Outperform’ with a price target of Rs 346.
  • Novelis June quarter review: On a firm footing.
  • Key positives: favourable scrap spread, Ebitda per tonne of $417; S&P Credit rating upgrade to BB- from B+.
  • Improved financial performance of Aleris also bodes well for the stock.

Brokerages On Motherson Sumi

Citi

  • Maintained ‘Sell’ with a price target of Rs 280.
  • June quarter review: Parent/SMP disappoints; PKC ahead of estimates.
  • Lower minority interest was offset by higher tax rate.
  • PKC margins are expected to improve further from current levels.

UBS

  • Maintained ‘Buy’ with a price target of Rs 380.
  • June quarter review: Miss on India; Accounting change impacts India and SMP revenues.
  • Overall business momentum remains robust.
  • Capex phase coming to an end; Margin improvement to continue.
  • Setting up for a strong 2019-2020 finish.

Brokerages On M&M

UBS

  • Maintained ‘Buy’ with a price target of Rs 1,000.
  • June quarter review: Strong Ebitda growth helped by strong quarter for tractors.
  • Tractor inventory remains substantially below industry; Auto inventory remains inline.
  • Current quarter is likely to be flattish for tractors due to a delayed festive season.

Citi

  • Maintained ‘Buy’; raised price target to Rs 1,060 from Rs 1,010.
  • June quarter was another steady quarter.
  • Growth outlook for tractors and utility vehicles unchanged for now.
  • Management thinks dealer network can support three new launches.
  • M&M is a key buy in the auto sector.