All You Need To Know Going Into Trade On June 12

Stocks To Watch

• State Bank Of India: Approves divestment of 2.1 crore shares, totalling to 2.1% stake in SBI Life Insurance. Divestment in order to achieve minimum public shareholding of 25%. The divestment will be done through an Offer for Sale (OFS) process as per SEBI guidelines. Offer opens on June 12 for non-retail investors and June 15 for retail investors. The floor price of Rs 725 per share is a 2.1% discount to Thursday's closing price.
• Lupin: Gets approval for Albendazole tablets from the U.S. FDA. It will market a generic equivalent of Impax Laboratories' Albenza tablet. The drug is used to treat tapeworm diseases.
• Oil India: Fire at the company's well in Assam has been contained from spreading to nearby villages.
• Allcargo Logistics: Prepaid NCDs worth Rs 160 crore on June 11.
• Redington India's Covid-19 Impact: Vendors believe that business should be as usual from the second quarter of FY21. All the warehouses are currently operational while 70% of them operated through May.
• Hikal's Covid-19 Impact: Current capacity utilisation of 80-85% across manufacturing sites. No cancellation of orders. Not opted for any moratorium and continue to meet all debt obligations.
• NMDC: Clarifies on news of Chhattisgarh government disallowing the company to carry out iron ore storage in its Bailadila mines. The previous government in 2013 had issued a demand notice, levying a storage fee for loading the plants. The company paid the required amount and then filed a Writ Petition in the Bilaspur High Court, challenging the demand notice. The court directed the government to refund the storage fee which was adjusted against the royalty amount payable. The state government has now filed a review petition against the High Court order. The company states that it will present all facts before the government to resolve the issue amicably.
• Trent: Bloomberg News reports that Inditex plans to increase Zara's presence in India. The company has signed up for at least four to five new properties with mall developers for expasion. It may also consider consolidating underperforming stores.
• Wipro: Partners with iCloudKnox Security to secure multi-cloud and hybrid cloud infrastructure. Wipro Ventures, the corporate investment arm of Wipro, invested in iCloudKnox through its recently announced $150 million fund , to strengthen the strategic partnership.
• HDFC AMC: Board re-appointed Milind Barve as Managing Director till January 2021.
• MAS Financial Services: To consider raising funds via NCDs on June 16.
• HDFC: Issued NCDs worth Rs 4,000 crore.
• Hindalco Industries: To report fourth quarter earnings today.
• Kirloskar Ferrous Industries: Commissions 20 MW power generation plant attached to the coke oven plant in Karnataka. The power will be generated by using waste gas generated from the coke oven plant.It will be utilized primarily for captive consumption resulting in reduction of power cost.
• Lemon Tree Hotels: WF Asian Reconnaissance Fund increased its stake from to 5.68% from 4.55% on June 9.
• Non-Nifty Earnings Today: Castrol India, Indo Count Industries, IOL Chemicals, Suprajit Engineering, Goodyear India, Vascon Engineers.

Earnings Reported After Market Hours

Sundram Fasteners Q4FY20

• Revenue down 28.3% to Rs 719.6 crore
• Net profit down 56.4% to Rs 46.8 crore
• Ebitda down 33.4% to Rs 117.8 crore
• Ebitda margin down to 16.4% from 17.6%
• Export sales were impacted in March
• Key customers in the U.S. faced a slowdown due to the cyclical nature of the industry
• All numbers are standalone and compared on a year-on-year basis

Redington India Q4FY20

• Revenue flat at Rs 12,666.7 crore
• Net profit down 29.4% to Rs 119.2 crore
• Ebitda down 4.5% to Rs 243.9 crore
• Ebitda margin at 1.94% from 2.03%
• High employee expenses and inventory impacted profit
• De-growth seen in the India business
• Overseas revenue saw a growth of 5% to Rs 8,254.5 crore, led by the mobility business
• Covid-19 impact of Rs 800 crore for the India business and $137 million for the overseas business
• All numbers are consolidated and compared on a year-on-year basis

EID Parry Q4FY20

• Revenue up 16.4% to Rs 4,245.1 crore
• Net profit flat at Rs 157.2 crore
• Ebitda up 34.4% to Rs 624.5 crore
• Ebitda margin widens to 14.7% from 12.7%
• Lower raw material costs aid margins
• Growth seen in sugar, nutrient and crop protection business
• Higher realisation from the distillery segment coupled with effective cost and cash management aided operational numbers
• All numbers are consolidated and compared on a year-on-year basis

Westlife Development Q4FY20

• Revenue flat at Rs 336 crore
• Ebitda down 30% to Rs 18.5 crore
• Ebitda margin narrows to 5.5% from 7.8%
• Net loss of Rs 17.5 crore from net profit of Rs 1.3 crore
• All numbers are standalone and compared on a year-on-year basis

Earnings Expectations: Mahindra & Mahindra Q4FY20

• Revenue seen 16% lower at Rs 11,799 crore
• Net profit seen 46% lower at Rs 462 Crore
• Ebitda seen 41% lower at Rs 967 crore
• Ebitda margin may narrow to 8% from 12%
• All estimates are standalone and compared on a year-on-year basis

Factors At Play For Mahindra & Mahindra:

• Volumes fell 36% in Q4FY20
• Weaker operating leverage to impact margins
• Rural demand likely to pick up
• Update on M&M-Ford JV plant and new product launches some key things to watch

Earnings Expectations: Eicher Motors Q4FY20

• Revenue seen 13% lower at Rs 2,171 crore
• Net profit seen 25% lower at Rs 408 crore
• Ebitda seen 26% lower at Rs 506 crore
• Ebitda margin may narrow to 23% from 27%
• All estimates are consolidated and compared on a year-on-year basis

Key Factors At Play For Eicher Motors:

• Volumes fell 20% in Q4
• Weak operating leverage to impact margins
• Realisations may improve due to BS-VI transition
• Management commentary on the 650 cc twins in local as well as international market a key factor to watch

Pledged Share Details

• JSPL: Promoter Danta Enterprises revoked pledge of 1.25 lakh shares on June 9.
• Adani Ports & SEZ: Promoter SB Adani Trust revoked pledge of 32 lakh shares on June 10.
• JSW Energy: Promoters revoked pledge of 62 lakh shares on June 9.
• Adani Transmission: Promoter SB Adani Trust revoked pledge of 7 lakh shares on June 10.
• Zee Learn: Promoter Asian Satellite Broadcast invoked pledge of 13 lakh shares on June 4.
• Sun Pharma: Promoter Raksha Valia created pledge of 68 lakh shares on June 9.

(As Reported On June 11)

Who’s Meeting Whom

• Radico Khaitan: To meet HDFC AMC, TATA AMC, ICICI Prudential AMC on June 12
• CG Consumer Electricals: To meet Malabar Group on June 15.
• Syngene International: To meet Renaissance Investment Managers on June 12.
• Affle India: To meet Edelweiss AMC, Goldman Sachs and other investors between June 12-17.

Trading Tweaks

• Ex Date For Amalgamation and Spinoff: Max India
• Price Band Revised From 10% To 5%: Ashapura Minechem, Avadh Sugar & Energy, Dwarikesh Sugar Industries.
• Price Band Revised From 20% To 10%: Ramco Systems, Panacea Biotec.
• Move Into ASM Framework: Suzlon Energy.
• Move Into Short-Term ASM Framework: Shilpa Medicare, Avadh Sugar & Energy, TV18 Broadcast, Dwarikesh Sugar Industries, Sanghi Industries, Network18 Media & Investments, SMS Lifesciences.
• Move Out Of Short-Term ASM Framework: Genus Paper & Boards, Healthcare Global Enterprises.

Insider Trading

• Birlasoft: Promoter National Engineering acquired 21.73 lakh shares on June 9.
• Aarti Drugs: Promoter Jaya Gogri acquired 24,546 shares between June 8-9

(As Reported On June 11)

F&O Cues

• Nifty June futures closed at 9,895; discount widens to 8 points from 3 points.
• Nifty June futures add 4% and 4.3 lakh shares in Open Interest
• Nifty Bank June futures closed at 20,509; discount of 16 points from 19 points
• Nifty Bank June futures shed 5.9% and 1 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.02 from 1.35 across all series

Nifty Weekly Expiry: June 18

• Maximum Open Interest on Call side at 10,500 strike (14.2 lakh shares)
• Maximum Open Interest on Put side at 9,500 strike (12.2 lakh shares)
• Active Options: 9,500 Put (+7.5 lakh shares), 10,100 Call (+7.8 lakh shares)

Nifty Monthly Expiry: June 25

• Maximum Open Interest on Call side at 10,000 strike (20.8 lakh shares)
• Maximum Open Interest on Put side at 9,500 strike (29 lakh shares)

Securities In Ban

• Enter F&O Ban: Adani Enterprises, Escorts
• Out of F&O Ban: Vodafone Idea, NCC
• Stocks In F&O Ban: Adani Enterprises, BHEL, Escorts, JSPL, Just Dial, PVR

F&O Buzzers On Thursday & Fund Flows