All You Need To Know Going Into Trade On April 27

Stocks To Watch

• Bank Of Baroda: Approves raising additional capital up to Rs 13,500 crore till March 2021 and beyond. Out of the Rs 13,500 crore, Rs 9,000 crore will be raised by various equity methods while the rest will be raised through additional Tier-I and Tier-II capital instruments.
• Apollo Tyres: Warbug Pincus converted 5.4 crore convertible preference shares into 3.15 crore shares through an encumbrance on April 22. The total shares amount to 31.65 percent stake. Post this acquisition, Warbug Pincus now holds 40.6 percent stake in the company. It earlier held 8.92 percent stake. Also, operations at the company's plants in Kerala and Gujarat have partially resumed while those in Hungary will partially resume from April 28.
• Cummins India: The company in a conference call said that the recovery from the Covid-19 pandemic is at least 6-12 months away, adding that multiple segments have been severely affected by the resultant economic slowdown. The company also said that the implementation of the new CPCB emission norms will be deferred by a few months and that Domestic Powergen will be the last segment to recover.
• Tata Steel: Board approves raising Rs 5,000 crore via debt.
• IRB Infra: Approved fund raising of up to Rs 2,500 crore via NCDs to meet ongoing and planned capex needs, cash flow mismatches as well as general corporate purposes due to the Covid-19 impact.
• JSPL: The New South Wales Supreme Court has scheduled a hearing today on the Wollongong Coal case. The Scheme of Arrangement for restructuring of debt worth $353 million was terminated on April 3.
• Natco Pharma: Gets Establishment Inspection Report (EIR) from the U.S. FDA for its formulation facility in Kothur.
• Shriram Transport Finance: The company in its business update has stated that it has focused on cost rationalisation and reduction of overheads to conserve its cash resources. It also has sufficient cashflow to meet repayment obligations. The release further states that it ha offered moratorium to its borrowers.
• Goa Carbon: Production for March fell 71 percent in terms of quantity to 6,011.4 MT while it fell 81 percent in value to Rs 9.8 crore.
• Future Lifestyle Fashions: Crisil downgrades ratings for long-term and short-term bank facilities, NCDs and commercial papers. The downgrade reflects deterioration in the business risk profile given delayed recovery in cash flows than earlier due to lockdowns in the country and the discretionary nature of apparel products.
• Apollo Pipes: Starts billing for three plants in Uttar Pradesh, Gujarat and Karnataka. Manufacturing operations shall begin in a phased manner.
• JK Cement: Gets Government approval to commence operations at its manufacturing facilities in Rajasthan, Madhya Pradesh, Haryana and Gujarat.
• India Cements: Resumed operations of few of its plants in a phased manner.
• NHPC: Raises Rs 750 crore through private placement of bonds.
• Torrent Pharma: Issues NCDs worth Rs 195 crore on April 24.
• Oberoi Realty: CARE Ratings reaffirms ratings of facilities and instruments of the company and its subsidiaries. The outlook has been revised to negative from stable. It expects moderation in the credit risk profile of entities involved in the real estate development owing to the ongoing lockdown.
• Titan: Brickwork ratings assigns A1+ rating to the company's commercial paper issue of Rs 900 crore and reaffirm ratings for its bank loan facilities worth Rs 5,000 crore.
• Nalco: ICICI Prudential MF (Bharat 22 ETF) acquired 1.71 crore shares (0.92 percent) at Rs 34.43 per share.
• Sadbhav Engineering: Shashin Patel resigns as Chairman and Managing Director
• Zee Learn: Vikash Kumar Kar appointed as CEO after the resignation of Debshankar Mukhopadhyay
• CSB Bank: RBI extend the term of appointment of Madhavan Menon as part-time chairman of the bank till July 21, 2020.
• Reliance Power, Reliance Capital and Reliance Infrastructure: Axis Trustee Services, a security trustee of HDFC, invoked a pledge on 6.97 percent shares of Reliance Power, 6.43 percent shares of Reliance Capital and 8.21 percent shares of Reliance Infrastructure.
• Zee Media Corporation: IDBI Trusteeship, a security trustee of HDFC acquired 5.26 percent shares of the company pursuant to invocation of pledge.
• IIFL Finance: Exchanges permit listing and commencement of trading for 5.86 crore equity shares of Rs 2 each of IIFL Finance allotted to shareholder of IIFL pursuant to a composite scheme of arrangement. The equity shares are listed and permitted for trading on NSE and BSE from April 27, 2020.
• Non-Nifty Earnings Today: Adani Power, HDFC Life Insurance, Ambuja Cements, Sasken Technologies

Earnings Expectations: IndusInd Bank Q4FY20

• The Mumbai-based private lender had reported a 13 percent loan growth and 3.8 percent deposit growth this quarter, as per its business update shared earlier.
• Stressed exposure to telecom, real estate and NBFCs may lead to deterioration of asset quality and a consequent spike in provisions.
• Loan growth was likely driven by the retail segment. Non-interest income should support topline for the full year.
• NIMs may benefit from liability repricing, microfinance yields.
• Operating costs may improve gradually.
• Credit costs for FY20 may be higher than the 80 basis points guidance.

Source: Bloomberg Intelligence

Earnings Announced After Market Hours

ICICI Prudential Q4 and FY20

• Gross premium rises 5 percent to Rs 10,647 crore
• Net profit down 31 percent to Rs 179 crore
• VNB Margins rise to 21.7 percent in FY20 from 17 percent in FY19
• Increase in protection mix aids VNB margins
• Protection mix at 15.1 percent of APE in FY20 from 9.3 percent in FY19
• 13th month persistency at 83.2 percent in FY20
• Annualised premium equivalent down 5 percent to Rs 7,381 crore in FY20
• AUMs in FY20 at Rs 1,52,968 lakh crore
• Embedded Value grew 7 percent in FY20 to Rs 23,030 crore
• Maintains guidance to double FY19 VNB within four years
• Value of New Business (VNB) rose 21 percent in FY20 to Rs 1,605 crore
• All numbers are standalone and compared on a year-on-year basis

Mindtree Q4FY20

• Revenue in U.S. Dollar terms up 1.2 percent to $278.4 million
• Revenue in rupee terms up 4.3 percent to Rs 2,050.5 crore
• Net profit up 4.7 percent to Rs 206.2 crore
• Ebitda up 5.6 percent to Rs 323.6 crore
• Ebitda Margins at 15.8 percent from 15.6 percent
• Declares a dividend of Rs 10 per share
• All numbers are consolidated and compared on a sequential basis

Brokerage Radar

Kotak Securities On Mindtree

• Reduce rating maintained
• Price target raised to Rs 760 from Rs 725
• Top clients drive growth
• Expansion in margins is impressive
• Challenging year ahead
• Smooth transition to manage services model is key

Kotak Securities On Mahindra CIE

• Upgrade from buy to add
• Price target cut to Rs 100 from Rs 150
• Q1CY20 numbers better than expected
• Consolidated revenues fall mostly due to plant shutdowns
• Expect demand to remain challenging both in India and Europe in H1CY20
• Operating performance may improve thereafter due to focus on cost control

Kotak Securities On Whirlpool

• Sell rating maintained
• Price target raised to Rs 1,540 from Rs 1,260
• Near-term revenue outlook is weak
• Premiumisation-driven demand may take time to recover
• Stringent regulations for appliances to raise product prices
• Long-term penetration story remains intact, though competitive risks remain

Jefferies On Voltas

• Buy rating maintained
• Price target of Rs 615
• Some summer sales could be salvaged
• See 50 percent year-on-year drop in AC sales in Q1FY21 due to lockdown
• Every 10 percent change impacts FY21 estimated EPS by 2-3 percent

Equirus Securities On SBI

• Initiate coverage with long rating
• Price target of Rs 245
• Market leader with implicit government support
• Strong retail liability franchise
• Surplus liquidity and CET-1 of 10.2 percent are advantageous
• Fresh slippages are likely to rise post the pandemic
• Trends likely to be lower than the earlier cycle

Emkay On Cement

• Challenging year ahead with industry growth to be pushed two years back
• See 19 percent volume decline in FY21 as against earlier projection of 12.4 percent
• Industry utilisation to fall to decade-low levels
• Pricing behaviour needs to be seen
• Maintain buy rating on ACC, Ambuja on reasonable valuations and UltraTech on being a pan-India player

Pledged Share Details

• JSW Steel: Promoter JSW Techno Projects Management revoked pledge of 5.73 lakh shares on April 21.
• JSW Energy: Promoter JSW Investments revoked pledge of 6.24 lakh shares on April 21.
• Emami: Promoters revoked pledge of 1.9 crore shares between April 21-22.
• Zuari Agro Chemicals: Promoter Zuari Global revoked pledge of 30 lakh shares on April 22.
• Adani Green Energy: Promoter Adani Trading Services revoked pledge of 2 lakh shares on April 23.

Trading Tweaks

• Price Band Revised To 5 Percent From 10 Percent: LGB Forge, NBCC, Spandana Sphoorty Financial
• Price Band Revised To 20 Percent From 10 Percent: Alembic
• Move Out Of ASM Framework: Tejas Networks, Sical Logistics, Pricol, Andhra Cements, HCL Infosystems, TRF, Sanwaria Consumer, Zuari Agro Chemicals, Walchandnagar Industries, Themis Medicare, Rane Engine Valve, Shakti Pumps, Hubtown, HT Media
• Move Into Short-Term ASM Framework: Hathway Cable & Datacom, La Opala RG, Neuland Laboratories
• Move Out Of Short-Term ASM Framework: Premier Explosives, Trident, Lumax Auto Technologies, Hexaware Technologies, HEG, SMS Lifesciences, Eris Lifesciences

F&O Cues

• Nifty April futures end at 9,138; a discount of 16 points as against a premium of 17 points
• Nifty April futures shed 3 percent in Open Interest and 3 lakh shares
• Nifty Bank April futures end at 19,517; discount narrows to 69 points from 88 points
• Nifty Bank April futures shed 4.3 percent in Open Interest and add 55,000 shares
• Nifty Put-Call Ratio at 1.34 Versus 1.51 across all series

Nifty: April 30 Expiry

• Maximum Open Interest on Call side at 9,500 strike (22.6 lakh shares)
• Maximum Open Interest on Put side at 9,000 strike (29.8 lakh shares)
• Open Interest addition seen in 9,000 Call (3.3 lakh shares) while 9,000 Put sees Open Interest shedding (-4.2 lakh shares)