All You Need To Know Going Into Trade On Feb. 14

U.S. equity futures slipped along with stocks in Tokyo and Seoul, though moves were modest after the Chinese province at the centre of the coronavirus outbreak reported more deaths.

On just the second day since the Hubei region changed its methods for counting infections, investors are mulling the spread of the virus in addition to the news that the Federal Reserve will dial back its liquidity injections. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 12,156 as of 6:58 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here’s a quick look at all that could influence equities today

• U.S. equities had a turbulent Thursday, fluctuating between gains and losses on mixed news about the coronavirus outbreak, only to fade after the Federal Reserve Bank of New York said it will further shrink repurchase agreement operations.
• Oil rose for a third session, the longest winning streak since early January, after the World Heath Organization rekindled optimism that the coronavirus outbreak could be abating.

Get your daily fix of global markets here.

Earnings Reaction To Watch

BPCL (Q3, QoQ)

• Revenue rose 16.2 percent to Rs 74,732.8 crore
• Net profit fell 26.2 percent to Rs 1,260.6 crore
• Ebitda rose 13.8 percent to Rs 2,703.4 crore
• Margin stood at 3.6 percent versus 3.7 percent

Vodafone Idea (Q3, QoQ)

• Revenue rose 2.3 percent to Rs 11,089.4 crore
• Net loss at Rs 6,438.8 crore versus loss of Rs 50,922 crore
• Ebitda rose 0.7 percent to Rs 3420.5 crore
• Margins stood at 30.8 percent versus 31.3 percent
• ARPU rose 2 percent to Rs 109 versus Rs 107

Nestle (Q4, YoY)

• Revenue rose 8.7 percent to Rs 3,149 crore
• Net profit rose 38.4 percent to Rs 473 crore
• Ebitda rose 23.1 percent to Rs 678 crore
• Margins stood at 21.5 percent versus 19 percent
• Domestic sales rose 10 percent to Rs 2,961 crore
• Exports fell 9.5 percent to Rs 170 crore
• Key brands Maggi, Kitkto and Ceregrow lead growth
• Raw Material costs rose 22 percent to Rs 1,469 crore

Apollo Hospital Enterprises (Q3, YoY)

• Revenue rose 17 percent to Rs 2,911 crore
• Net profit rose 83 percent to Rs 90 crore
• Ebitda rose 53 percent to Rs 428 crore
• Margin stood at 14.7 percent versus 11.2 percent
• Healthcare services segment revenue rose 12 percent to Rs 1,497.9 crore
• Pharmacy segment revenue rose 22 percent to Rs 1,232.6 crore
• Clinics segment revenue rose 22 percent
• Board approved amalgamation of its arm Apollo Home Healthcare and Western Hospitals into the company

Page Industries (Q3, YoY)

• Revenue rose 7.5 percent to Rs 793.8 crore
• Net profit fell 14.6 percent to Rs 87 crore
• Ebitda fell 16 percent to Rs 138.8 crore
• Margin stood at 17.5 percent versus 22.4 percent

Lemon Tree Hotels (Q3, YoY)

• Revenue rose 39.2 percent to Rs 199.6 crore
• Net profit fell 2.4 percent to Rs 12.2 crore
• Ebitda rose 65.4 percent to Rs 81.2 crore
• Margins stood at 40.7 percent versus 34.2 percent

All Cargo Logistics (Q3, YoY)

• Revenue fell 1 percent to Rs 1,786.8 crore
• Net profit fell 8 percent to Rs 43.9 crore
• Ebitda rose 12 percent to Rs 126.4 crore
• Margin stood at 7.1 percent versus 6.3 percent
• Deferred Tax Reversal of Rs 41.3crore

Nifty Earnings To Watch

• ONGC

Other Earnings To Watch

• SpiceJet
• Sun TV Network
• Pfizer
• Muthoot Finance
• Embassy Office Parks REIT
• Lakshmi Vilas Bank
• Glenmark Pharmaceuticals
• Steel Authority of India
• Graphite India
• Eveready Industries India
• Finolex Cables
• Edelweiss Financial Services
• Ahluwalia Contracts (India)
• Amtek Auto
• Mahanagar Telephone Nigam
• Man Infraconstruction
• Sadbhav Engineering
• Shakti Pumps
• Shree Cement
• Sical Logistics
• Simplex Infrastructures
• Mangalam Cement
• MEP Infrastructure Developers
• Mcnally Bharat Engineering
• IRB Infra
• National Peroxide
• PG Electroplast
• Puravankara
• Reliance Capital
• Reliance Home Finance
• Reliance Infrastructure
• Reliance Power
• Responsive Industries
• Ruchi Soya Industries
• Orient Refractories
• Panacea Biotec
• MMTC
• Mishtann Foods
• Mukand
• Gujarat Apollo Industries
• Gujarat Fluorochemicals
• GVK Power & Infrastructure
• Automotive Axles
• Balkrishna Industries
• BF Utilities
• Bharat Rasayan
• Bombay Rayon Fashions
• Filatex India
• Forbes & Company
• Gabriel India
• Gayatri Highways
• Gayatri Projects
• GFL
• HPL Electric & Power
• Industrial Investment Trust
• Intellect Design Arena
• Jindal Cotex
• Jindal Stainless (Hisar)
• Jtekt India
• Karda Constructions
• KDDL
• Kirloskar Electric Company
• Kridhan Infra
• La Opala RG
• Texmo Pipes and Products
• The Orissa Minerals Development Company
• Tide Water Oil Company, (India)
• UFO Moviez India
• Ujaas Energy
• Vipul
• Zeal Aqua
• Zuari Global

Indian ADRs

Stocks To Watch

• Avenue Supermarts’ promoters plan to sell 2.28 percent stake via offer for sale of shares. Promoters to sell up to 1.48 crore shares at a floor price of Rs 2,049 per share for Rs 3,032.52 crore.
• Amtek Auto: Financial creditors to the company have approved a resolution plan submitted by Deccan Value Investors. The resolution applicant, according to a person in the know, has offered Rs 2,700 crore to the financial creditors as part of the plan. Of this, Rs 500 crore would be offered upfront while Rs 1,800 crore will be repaid through future receivables over time. Deccan Value will also offer Rs 300 crore through convertible debentures over seven years, the person said. The person spoke on the condition of anonymity as the discussions are confidential.
• BPCL: Board approved to initiate the process of divestment of the company’s shareholding of 61.65 percent stake in Numaligarh Refinery as per the decision of Cabinet Committee on Economic Affairs. This divestment would be undertaken subject to the completion of all requisite formalities including inter-alia shareholders' approval.
• HDFC updated its existing medium-term note program for an amount of up to $2.8 billion to issue rupee/foreign currency-denominated bonds in international capital markets.
• Mahindra & Mahindra clarified that the Board of SsangYong Motor has approved a 3 years business plan which will lead to the profitability of the company in the year 2022. This plan requires outside funding of $380 – 425 million over a period of three years. About half of this amount is to repay the existing loan and the remaining is to augment the capex required for new product development.
• TCS: Board extended the term of V. Ramakrishnan as Chief Financial Officer till April 2021.
• Adani Green Energy has entered into a binding agreement with Total, who will invest $510 million for the acquisition of a 50 percent stake in a JV company which will house 2,148 MWAC operating solar projects presently which are 100% owned by Adani Green Energy.
• Jain Irrigation clarified on the news of forex scam where the tainted company has dealt with Jain Energy. The company said it is not part of the Jain Irrigation Group.
• Jindal Polyfilms: Board approved expansion plans for the company’s India operation by an investment of Rs 700 crore in Polyester Film Line and BOPP Film Line.
• Yes Bank sold 9.47 percent stake in Eveready Industries in various tranches.
• Godrej Industries: Nadir B. Godrej re-appointed as managing director till March 2023.
• Telecom Stocks: Supreme Court to hear telecom dues case on Feb. 14.
• Future Retail: Current Chief Executive Officer and Managing Director Kishore Biyani to become executive chairman with effect from March 2020. Rakesh Biyani to become Managing Director of the company till May 2022. Sanjay Jain to become the new CEO from March.
• NACL Industries: Board approved the formation of the new arm to take up a Greenfield project for manufacturing various chemicals including agrochemicals in the State of Gujarat, with an initial capital outlay of about Rs.150 crore. The board also of another arm to take up Company’s proposed Greenfield project at Andhra Pradesh.
• Jai Corp: Board approved the discontinuation of Masterbatch and Dyeing Unit, disposal of land and building in Daman and approved deleveraging the Balance Sheet by divesting certain non-core assets.

Bulk Deals

• Eveready Industries: Yes Bank sold 64.55 lakh shares (8.88 percent) at Rs 60 each

Brokerage Radar

Emkay on Nestle

• Downgraded to ‘Hold’ from ‘Buy’; raised price target to Rs 16,000 from Rs 15,900.
• Q4 sales in line, domestic sales growth of 10% significantly ahead of the peers.
• High input inflation limits scope for margin expansion and earnings upsides.
• Current performance and strong growth visibility appear to be priced in.

CLSA on Lemon Tree

• Retained ‘Buy’ with a price target at Rs 80 per share.
• Average daily rate on an improving trend, but macros weak.
• Company's ADR growth should outperform the industry given changing product mix towards retail customers.
• The key acquisition has been funded through Fleur subsidiary.

On Vodafone

Goldman Sachs

• Maintained ‘Neutral’; cut price target to Rs 7 from Rs 7.2.
• In line quarter but cash flow profile weak.
• Ebitda significantly below its capex and interest payment obligation.
• FY21 Ebitda to be more then 2x it's 2019-20 number.
• Investor focus to remain on leverage position and AGR issue.

Bofa Securities

• Maintained ‘Underperform’ with a price target at Rs 4.8.
• Market share loss continues
• Implied ARPU up 5 percent, good 4G net adds at 6.2 million
• Overhang from AGR remains.

On Page Industries

Credit Cuisse

• Maintained ‘Underperform with a price target Rs 19,500.
• A large slump in growth and margins, PBT falls 28 percent.
• Results significantly below estimates, cut FY20-22 earnings estimates by 10 percent.
• Weak trends on volume growth continue to play out, driven by end consumer offtakes.
• Realisation growth was driven by pricing and mix, but may not continue.
• Sharp drop in Ebitda margins was due to the result of heightened competition.

Dolat capital

• Downgraded to ‘Accumulate’ from ‘Buy’; maintained price target at Rs 25,052.
• Volumes decline, significant margin erosion.
• Overall industry has witnessed a slowdown during the quarter due to delayed winter.
• Volume growth expected to improve from here on.

Trading Tweaks

• Fermenta Biotech record date for bonus issue at 2:1
• Rajnish Wellness, Tasty Bite Eatables, Nandan Denim, Shemaroo Entertainment, Aanchal Ispat price band revised to 10 percent
• Mangalam Organics, Toyam Industries, Hind Rectifiers, Nandan Denim, Neogen Chemicals, Tasty Bite Eatables to move into short term ASM Framework
• Sadhana Nitro Chem to move out of short term ASM Framework

Who’s Meeting Whom

• Container Corporation of India to meet IIFL Securities, Edelweiss Securities and other investors from Feb. 18-20.

Insider Trading

• V2 Retail promoter V2 Conglomerate acquired 1lk shares on Feb. 11
• Alkem Lab promoter Nawal Singh sold 1lk shares from Feb. 10-12

(As Reported On Feb. 13)

Money Market Update

• The rupee ended stronger at Rs 71.33 against the dollar versus Rs 71.35 against the dollar On Wednesday.

F&O Cues

Index Futures

• Nifty Feb futures closed at 12,174.6 at par with spot nifty
• Nifty Feb futures open interest down 1.8 percent, sheds 2.3 lakh shares in open interest
• Nifty Bank February futures closed at 31,231.3, premium 1 points versus 74 points
• Nifty Bank futures open interest up 6 percent, adds 74,000 shares in open interest

Nifty Weekly Expiry: Feb 20

• Max open interest on call side at 12,200 (15.3 lakh shares)
• Max open interest on put side at 12,100 (10.5 lakh shares)
• Open interest addition seen at 12,200C (+11.5 lakh shares), 11,500P (+6.6 lakh shares), 12,400C (+6.2 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,500 (24.8 lakh shares)
• Max open interest on put side at 12,000 (38.3 lakh shares)

Stocks In F&O Ban

• Yes Bank