All You Need To Know Going Into Trade On August 26

Stocks To Watch

• VA Tech Wabag: Board approves issuance of up to 75 lakh shares on a preferential basis at Rs 160 per share. The issue price is a 30% discount to Tuesday's closing. Rekha Rakesh Jhunjhunwala will be issued up to 50 lakh shares while the other 25 lakh will be issued among Basera Home Finance, Sushma Anand Jain and Anand Jaikumar Jain of Jai Corporation.
• Punjab National Bank: Recovers Rs 24 crore in the Nirav Modi case. On liquidation of Nirav Modi's assets by the U.S. Chapter 11 trustee, Rs 82.66 crore were made available for distribution to unsecured creditors including PNB. Further recovery is subject to other expenses and settlement claims of other claimants.
• TCS: S&P revises long-term issuer credit rating to stable from positive while affirming the rating as A. S&P says that the company is likely to face slower growth in revenue and profitability over the next 12-18 months, given subdued global I.T. spends. The ratings agency anticipates pricing pressures on new contracts and renewals due to low spending ability of clients in a highly competitive market.
• Hindustan Oil Exploration: Malaysia tribunal has upheld certain claims by claimant Hardy Exploration & Production in an arbitration case. The claimant has sought to enforce the award through a petition before the Gujarat High Court and the financial implication is Rs 10 crore. The company will be contesting the case in appropriate legal forums both in India and Malaysia.
• JMC Projects: Received new infra order worth Rs 554 crore in the building and factory segment. It has won orders worth Rs 4,000 crore till date in FY21.
• Indiabulls Ventures: To consider raising funds via preferential issue to foreign investors on August 28.
• UFO Moviez: SBI Trustee has acquired 7.99% stake in the company due to encumbrance (pledge) of shares on August 22.
• Acrysil: To expand capacity for quartz kitchen sinks by 20% to 6 lakh units per annum at its Gujarat plant to meet increasing demand from the export market. Total capex of Rs 15 crore will be funded by internal accruals and the new capacity will be commissioned by March 2021.
• GOCL Corporation: Promoter Hinduja Capital plans to reduce stake to 73.83% from 74.93% via open market sale, to comply with FDI norms.
• Bank of Maharashtra: Allotted 73.6 crore shares at Rs 11.29 per share on a preferential basis the Government of India aggregating to Rs 831 crore. Government’s holding in the Bank has increased to 93.33% from 92.49%.
• Birla Tyres: To consider raising Rs 1,100 crore via debt or equity on August 28.
• J&K Bank: To consider raising Rs 4,500 crore during fiscal 2021, on August 28.
• SeQuent Scientific: Kamal Sharma and Milind Sarwate appointed on the board as independent directors. Kamal Sharma will also be the Chairman of the company as Gopakumar Nair has stepped down from the post. Nominee directors from Carlyle Group - Neeraj Bharadwaj and Rahul Mukim have joined the board.
• Non-Nifty Earnings Today: Gillette, GMDC, Indraprastha Gas, Hindustan Foods, DCM

Earnings Reported After Market Hours

Can Fin Homes Q1FY21

• Net Interest Income up 23.9% to Rs 191.7 crore
• Net profit up 15.1% to Rs 93.2 crore
• Holds provisions worth Rs 72.89 lakh for Covid-19
• All numbers are standalone and compared on a year-on-year basis

IRCON International Q1FY21

• Revenue down 51% to Rs 527 crore
• Net profit down 76% to Rs 34.5 crore
• Ebitda down 66% to Rs 59.8 crore
• Ebitda margin at 11.3% from 16.4%
• All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

Investec On PSU Banks

• Moratorium 2.0 numbers is 20-25% ex-SBI
• 7-8% of advances face immediate risk of defauly
• Slippages are bound to be elevated in the near-term
• Near-term asset quality and dilution risks remain elevated
• Downgrade Bank of Baroda to hold from buy; price target cut to Rs 54 from Rs 120
• Maintain buy rating on SBI; price target raised to Rs 255 from Rs 245

Morgan Stanley On Lupin

• Overweight rating maintained
• Price target of Rs 1,016
• Turning point in the inhaler story
• Lupin can generate sales worth $120-150 million over next two years
• Low visibility of additional competition from hereon

Nomura On Lupin

• Buy rating maintained
• Price target of Rs 1,012
• Albuterol MDI market is attractive
• Expect pricing environment to remain stable
• Current market size of $1.5-2 billion can be on account of higher demand and inventory build-up which may normalise going ahead.

CLSA On Dabur

• Buy rating maintained
• Price target of Rs 590
• Conducive setting and looking to strengthen franchisees with execution
• Healthcare and expanding portfolio fits well to drive topline and margins
• RoAE and working capital days have scope for improvement
• Preferred pick in staples due to structural long-term prospects

Kotak Institutional Equities On Lupin

• Add rating maintained
• Price target raised to Rs 1,000 from Rs 900
• Expect FY21 to be a pivotal year for Lupin's inhalation efforts
• Expect progress in all other key assets including Fostair, Spiriva and Dulera
• Albuterol is a highly intensive product on manufacturing, requiring solid manufacturing execution.
• Model in sales worth $83 million in FY22E and see upside risks depending on manufacturing scale-up

Jefferies On Telecom

• TRAI's latest disclosures indicate adverse impact of lockdown in urban markets
• RUral markets delivered growth even during lockdown
• Bharti Airtel and Jio gained revenue market share between 200-470 basis points
• Vodafone Idea lost revenue market share worth 580 basis points with top three markets contributing 60% of its market share loss
• Vodafone Idea's market share loss indicates that market is moving towards a duopoly
• Maintain buy rating on Bharti Airtel with a price target of Rs 670

Pledged Share Details

• Max Heathcare: Promoter Max Ventures Investment Holdings created pledge of 1.17 crore shares on August 24.
• Atul: Promoters created pledge of 2 lakh shares on August 24.
• Jamna Auto: Promoter Pradeep Singh Jauhar created pledge of 4.1 lakh shares on August 19.
• JSPL: Promoter Danta Enterprises revoked pledge of 14 lakh shares on August 21.
• Yes Bank: Ex-promoter Madhu Kapur invoked pledge of 25 lakh shares on March 3.

(As Reported On August 25)

Who’s Meeting Whom

• Bajaj Consumer Care: To meet Invesco Mutual Fund, UTI Mutual Fund and Pari Washington Company Advisors between August 26-27.
• IIFL Finance: To meet HSBC Global AMC on August 27.

Bulk Deals

• Phoenix Mills: Royal Bank of Scotland acquired 16.64 lakh shares (0.97%) at Rs 665 per share and promoters Senior Advisory Services and Radhakrishna Ramnarain sold 1.25 crore shares (7.28%) at Rs 666.1 per share.
• Matrimony.com: Mayfield Mauritius sold 23.78 lakh shares (10.45%) at Rs 520 per share, ICICI Prudential Mutual Fund acquired 5.24 lakh shares (2.30%), Massachusetts Institute of Technologies acquired 14 lakh shares (6.15%) at Rs 520 per share and 238 Plan Associates acquired 2.2 lakh shares (0.97%) at Rs 520 per share.
• TCI Express: HDFC Mutual Fund acquired 2.17 lakh shares (0.57%) at Rs 795 per share.
• Minda Industries: Matthews Asia Dividend Fund sold 1.1 lakh rights shares at Rs 128.89 per rights share.

Trading Tweaks

• AGM Date: Insecticides, 3M India, Birlasoft, Can Fin Homes, Indorama Synthetics, Maruti Suzuki, United Breweries, United Spirits, IG Petrochemicals.
• Fund Raising: Jindal Stainless, Lakshmi Vilas Bank.
• Price Band Revised From 10% To 5%: Affle, Goldstone Tech, Munjal Showa, Allied Digital Services.
• Price Band Revised From 20% To 10%: Remsons Industries, SMVD Poly Pack, Shree Ram Proteins, Punjab Alkalies & Chemicals.
• Move Into ASM Framework: Premier Explosives, GPT Infraprojects, Sintex Industries
• Move Into Short Term ASM Framework: Anant Raj, Sundaram Finance Holdings, Remsons Industries, Premier Polyfilm, Investment Trust Of India, Indo Amines, NGL Fine Chem.
• Move Out Of Short Term ASM Framework: Nitco, Jindal Worldwide

Insider Trades

• Godrej Industries: Promoter Godrej Seeds and Genetics acquired 1.7 lakh shares between August 19-20.
• Jamna Auto: Promoters acquired 2.1 lakh shares on August 21.
• Shilpa Medicare: Promoter Ramakant Inani sold 2.5 lakh shares between August 19-24.
• Ultratech Cement: Promoter Pilani Investments sold 1.25 lakh shares on August 19.
• Dr Lal Pathlabs: Promoter and director Dr Arvind Lal sold 1.4 lakh shares from August 21-25.

(As Reported On August 25)

Money Market Update

• The rupee recovered from the day's low to end flat at 74.33 against the U.S. Dollar on Tuesday, as compared to Monday's close of 74.32.
• The currency was the third worst performer in Asia on Tuesday.

F&O Cues

• Nifty August futures closed at 11,476; premium of 4 points from 12 points
• Nifty August futures shed 21.5% and 18 lakh shares in Open Interest
• Nifty Bank August futures closed at 23,091; premium of 1 point from discount of 19 points
• Nifty Bank August futures shed 19% and 2.4 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.25
• Enters F&O Ban: Canara Bank
• Out Of F&O Ban: Adani Enterprises
• Stocks In F&O Ban: Ashok Leyland, BHEL, Canara Bank, GMR Infra, LIC Housing, Nalco, PNB, SAIL, Vedanta, Vodafone Idea

Nifty Monthly Expiry: August 27

• Maximum Open Interest on Call side at 11,500 strike (41 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (33.7 lakh shares)
• Active Options: 11,000 Put (4.4 lakh shares) and 11,800 Call (8.4 lakh shares)