All You Need To Know Going Into Trade On Nov. 13

Asian stocks fell back Wednesday as investors continued to weigh the likelihood of a partial U.S.-China trade deal.

Japanese shares slipped along with those in South Korea, while early gains for Australian shares fizzled. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.34 percent to 11,904 as of 6:55 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.

• Oil ended slightly lower amid concern that U.S. President Donald Trump may expand his trade offensive, multiplying the economic headwinds already threatening global energy demand.
• The S&P 500 eked out a gain after retreating from a record on Tuesday.

Get your daily fix of global markets here.

Earnings Reaction To Watch

Coal India (Q2, YoY)

• Revenue down 6.9 percent to Rs 20,382.6 crore (Estimate: Rs 19,220.3 crore)
• Net profit up 14.2 percent to Rs 3,522.7 crore (Estimate: Rs 2,336.9 crore)
• Ebitda down 16.5 percent to Rs 3611.2 crore (Estimate: Rs 3,164.7crore)
• Margin at 17.7 percent versus 19.8 percent (Estimate: 15.9 percent)

Britannia (Q2, YoY)

• Revenue up 6.2 percent to Rs 3,048.8 crore (Estimate: Rs 3,041 crore)
• Net profit up 33.4 percent to Rs 404.2 crore (Estimate: Rs 365 crore)
• Ebitda up 8.3 percent to Rs 492.2 crore (Estimate: Rs 479 crore)
• Margin at 16.1 percent versus 15.8 percent (Estimate: 15.8 percent)

Adani Ports and SEZ (Q2, YoY)

• Revenue up 8.2 percent to Rs 2821 crore (Estimate: Rs 2,870 crore)
• Net profit up 74 percent to Rs 1054 crore (Estimate: Rs 975 crore)
• Ebitda up 5.2 percent to Rs 1791 crore (Estimate: Rs 1,766 crore)
• Margin at 63.5 percent versus 65.3 percent (Estimate: 61.5 percent)

Hindalco (Q2, YoY)

• Revenue down 8.1 percent to Rs 9965 crore (Estimate: Rs 10,107 crore)
• Net profit down 74.7 percent to Rs 78 crore (Estimate: Rs 97.01 crore)
• Ebitda down 27.4 percent to Rs 792 crore (Estimate: Rs 756.4 crore)
• Margin at 7.9 percent versus 10.1 percent

Aurobindo Pharma (Q2, YoY)

• Revenue up 18 percent to Rs 5600 crore
• Net profit up 5 percent to Rs 640 crore
• Ebitda up 14 percent to Rs 1167 crore
• Margin at 20.84 percent versus 21.6 percent

Mahanagar Gas (Q2, QoQ)

• Revenue up 3.7 percent to Rs 861.6 crore
• Net profit up 59 percent to Rs 270.6 crore
• Ebitda down 1.2 percent to Rs 273.5 crore
• Margin at 31.7 percent versus 33.3 percent

NMDC (Q2, YoY)

• Revenue down 8 percent to Rs 2241.8 crore
• Net profit up 10.5 percent to Rs 703.3 crore
• Ebitda down 15.8 percent to Rs 1060.2 crore
• Margin at 47.3 percent versus 51.7 percent

Embassy Office Parks REIT* (Q2)

• Revenue from operations up 15 percent to Rs 520.6 crore
• Net operating income up 16 percent to Rs 438.4 crore
• Declared Distribution of Rs 6 Per Unit (Record Date-Nov. 19)
• *Numbers Not Comparable

Phoenix Mills (Q2, YoY)

• Revenue up 2.6 percent to Rs 415.1 crore
• Net profit up 6.1 percent to Rs 65.8 crore
• Ebitda up 6.4 percent to Rs 210.8 crore
• Margin at 50.8 percent versus 48.9 percent

Metropolis Healthcare (Q2, YoY)

• Revenue up 15.6 percent to Rs 223.3 crore
• Net profit up 41 percent to Rs 43 crore
• Ebitda up 31 percent to Rs 62.6 crore
• Margin at 28 percent versus 24.8 percent

Sheela Foam (Q2, YoY)

• Revenue down 7.1 percent to Rs 497.3 crore
• Net profit up 2.4 times to Rs 58.7 crore
• Ebitda up 66 percent to Rs 70.4 crore
• Margin at 14.2 percent versus 7.9 percent

Shankara Building Products (Q2, YoY)

• Revenue down 1.7 percent to Rs 633.1 crore
• Net profit up 13.2 percent to Rs 10.3 crore
• Ebitda down 14.1 percent to Rs 26.7crore
• Margin at 4.2 percent versus 4.8 percent

Prestige Estates (Q2, YoY)

• Revenue up 46.6 percent to Rs 196.27 crore
• Net profit up 53.8 percent to Rs 15.72 crore
• Ebitda up 59.9 percent to Rs 64.97 crore
• Margin at 33 percent versus 30.4 percent

Adani Gas (Q2, YoY)

• Revenue up 8 percent to Rs 514.43 crore
• Net profit up 137 percent to Rs 120.06 crore
• Ebitda up 10.7 percent to Rs 147.44 crore
• Margin at 28.6 percent versus 28 percent

Adani Enterprises (Q2, YoY)

• Revenue down 6.9 percent to Rs 8626.94 crore
• Loss at Rs 49.50 crore versus profit at Rs 172 crore
• Ebitda down 2.15 percent to Rs 540.47 crore
• Margin at 6.26 percent versus 5.96 percent

Edelweiss Financial Services (Q2, YoY)

• Net interest income down 52 percent to Rs 280.18 crore
• Net profit down 75.4 percent to Rs 67.97 crore

Info Edge (Q2, YoY)

• Revenue up 16 percent to Rs 357.7 crore
• Loss at Rs 10.92 crore versus loss of Rs 3.7 crore
• Ebitda up 15.3 percent to Rs 118.32 crore
• Margin at 33 percent versus 33.3 percent

Abbott India (Q2, YoY)

• Revenue up 7.9 percent to Rs 1083.7 crore
• Net profit up 29.5 percent to Rs 178.33 crore
• Ebitda up 6.6 percent to Rs 233.03 crore
• Margin at 21.5 percent versus 21.76 percent

Cochin Shipyard (Q2, YoY)

• Revenue up 22.8 percent to Rs 1050.8 crore
• Net profit up 40.3 percent to Rs 206.33 crore
• Ebitda up 16.9 percent to Rs 284.58 crore
• Margin at 27 percent versus 28.4 percent

Aster DM Healthcare (Q2, YoY)

• Revenue up 12.8 percent to Rs 2091 crore
• Net profit down 71.7 percent to Rs 3.12 crore
• Ebitda up 75.7 percent to Rs 248.96 crore
• Margin at 11.9 percent versus 7.6 percent

Godrej Industries (Q2, YoY)

• Revenue down 2.54 percent to Rs 556.19 crore
• Net profit down 13.7 percent to Rs 32.98 crore
• Ebitda up 7 percent to Rs 120.65 crore
• Margin at 21.7 percent versus 19.7 percent

Sun TV (Q2, YoY)

• Revenue up 6.79 percent to Rs 900.74 crore
• Net profit up 1 percent to Rs 368.79 crore
• Ebitda down 11.8 percent to Rs 554.46 crore
• Margin at 61.5 percent versus 74.5 percent

CG Power (Q2, YoY)

• Revenue down 32.7 percent to Rs 977.12 crore
• Net profit down 94 percent to Rs 0.89 crore
• Ebitda down 43 percent to Rs 102.81 crore
• Margin at 10.5 percent versus 12.5 percent

Future Consumer (Q2, YoY)

• Revenue up 10.5 percent to Rs 1127.17 crore
• Loss at Rs 16.97 crore versus loss of Rs 3.69 crore
• Ebitda up 33.6 percent to Rs 45.3 crore
• Margin at 4.01 percent versus 3.3 percent

Aditya Birla Fashion And Retail (Q2, YoY)

• Revenue up 14.7 percent to Rs 2324.35 crore
• Loss at Rs 2.35 crore versus profit of Rs 42.73 crore
• Ebitda up 120 percent to Rs 355.79 crore
• Margin at 15.3 percent versus 7.97 percent

Sundaram Finance (Q2, YoY)

• Net interest income down 11.98 percent to Rs 324.28 crore
• Net profit up 9.12 percent to Rs 185.4 crore

Natco Pharma (Q2, YoY)

• Revenue down 11 percent to Rs 518.9 crore
• Net profit down 35 percent to Rs 117.7 crore
• Ebitda down 35.7 percent to Rs 167.5 crore
• Margin at 32 percent versus 44.6 percent

Sanofi India (Q2, YoY)

• Revenue up 4.7 percent to Rs 779.1 crore
• Net profit up 6.2 percent to Rs 126.6 crore
• Ebitda up 18.6 percent to Rs 281.2 crore
• Margin at 36 percent versus 31.9 percent

VA Tech Wabag (Q2, YoY)

• Revenue down 14.72 percent to Rs 641.59 crore
• Net profit down 24.39 percent to Rs 27.09 crore
• Ebitda up 5.8 percent to Rs 66.93 crore
• Margin at 10.43 percent versus 8.4 percent

Hotel Leela (Q2, YoY)

• Revenue down 12 percent to Rs 33.22 crore
• Net profit Rs 16.66 crore versus loss of Rs 66.57 crore
• Margin at -19.8 percent versus -11 percent

Vinati Organics (Q2, YoY)

• Revenue down 15 percent to Rs 256.26 crore
• Net profit up 33.5 percent to Rs 110 crore
• Ebitda down 15.6 percent to Rs 111.05 crore
• Margin at 43.3 percent versus 43.54 percent

Nagarjuna Fertilizers (Q2, YoY)

• Revenue up 25.4 percent to Rs 482.08 crore
• Loss at Rs 99.6 crore versus loss of Rs 172.4 crore

Repco Home (Q2, YoY)

• Net interest income up 6.47 percent to Rs 115.95 crore
• Net profit up 51 percent to Rs 100.6 crore

Earnings To Watch

• SpiceJet
• NALCO
• Lemon Tree Hotels
• RITES
• Thermax
• UFLEX
• Sadbhav Infrastructure Project
• Pidilite Industries
• Rain Industries
• Muthoot Finance
• Mphasis
• IRCTC
• Lux Industries
• MMTC
• Cadila Healthcare
• Cera Sanitaryware
• Dixon Technologies
• Bata India
• Oracle Financial Services Software
• Bharat Heavy Electricals
• IG Petrochemicals
• Fine Organic Industries
• Finolex Cables
• Blue Star
• Aarti Industries
• Deepak Fertilizers and Petrochemical
• ABB India
• Adani Green Energy
• Adani Power
• Ahluwalia Contracts
• Apex Frozen Foods
• Aries Agro
• Ashapura Minechem
• Ashiana Housing
• Ashoka Buildcon
• Borosil Glass Works
• Coffee Day Enterprises
• Cosmo Films
• Daichi Karkaria
• Electrotherm
• Emmbi Industries
• Galaxy Surfactants
• Goodyear India
• Gujarat Borosil
• Gujarat Mineral Development Corporation
• Himadri Speciality Chemical
• Hindusthan National Glass & Industries
• Housing & Urban Development Corporation
• Hubtown
• Ircon International
• ITD Cementation
• Jagran Prakashan
• Jai Corp
• Kaveri Seed
• KIOCL
• Morepen Laboratories
• Mukand Engineers
• Rashtriya Chemicals and Fertilizers
• Saregama India
• Sequent Scientific
• Seamec
• Sintex Industries
• Skipper
• SML ISUZU
• The New India Assurance Company
• Vakrangee
• Veto Switchgears And Cables
• Vipul
• Zydus Wellness

Indian ADRs

Stocks To Watch

• Lupin: Board approved divestment of entire equity stake (99.82 percent) in company’s Japanese step down subsidiary Kyowa Pharma to Unis Capital Partners’ entity Plutus at an enterprise value of JPY 57,361 million or Rs 3702.4 crore. The proposed transaction is an all cash-transaction, subject to the terms of the definitive agreements executed among the parties. receipt of requisite approvals.
• Tata Power’s arm received a Letter of Award from Gujarat Urja Vikas Nigam Limited to develop a 50 MW solar project in Dholera Solar Park in Gujarat.
• Indian Hotels: Board approved acquisition of a hotel in Pune for Rs 108 crore, within the framework with Government of Singapore Investment Corporation. The company will make equity investment up to Rs 20 crore (representing 30 percent of equity) and the acquisition will be made by the JV company. Board also gave nod, subject to signing of definitive agreements, to acquire remaining 14.28 percent stake in Claridges Hotels’ arm and Excalibur for a consideration of Rs. 250 crore over a period of two years.
• Avanti Feeds said that the company and its arm Avanti Frozen Foods’ premises were searched by the Income Tax authorities from Nov. 7-11.
• NIIT buyback period from Nov. 25-Dec. 6. The company stated that it has receive final observations from SEBI on Draft Letter of Offer.
• Embassy Office Parks REIT has received an invitation of offer from Embassy Sponsor for potential sale of 6.2 million square feet of completed office premises and 2.5 million sq ft of under-construction area in Embassy TechVillage, Bengaluru.
• Balmer Lawrie: Board approved issuance of bonus shares in the ratio of 1:2 and proposal to capitalize Rs 57 crore out of the existing reserve and surplus for the company to issue the aforesaid bonus shares. Bonus shares would be credited by Jan. 10, tentatively. Board approved the Closure of Industrial Packaging-Kolkata unit & Technology and Product Development Centre-Kolkata on account of unit incurring substantial losses since the last several years. Record date for bonus issue set at Dec. 23.
• Punjab & Sind Bank: Shareholders approved issuing preference share worth Rs 787 crore to the Government of India.
• Reliance Communications: Board has postponed meeting to consider results from Nov. 12 to Nov. 15.
• Edelweiss Financial Services announced that PE firm Sanaka Capital along with co-investors will be investing up to $75 million into Edelweiss Global Investment Advisor, the group’s Investment Advisory business. Sanaka has committed to invest approximately $44 million in EGIA, while talks are on for a further investment of approximately $31 million in the business.
• Tata Motors Group global wholesales at 89,108 in October 2019, down 19 percent year-on-year. Global wholesales for Jaguar Land Rover were 47,278 vehicles. Jaguar wholesales for the month were 12,367 vehicles, while Land Rover wholesales for the month were 34,911 vehicles.
• Godrej Industries Board approves fund raising via issuance of unsecured NCDs/bonds/other instruments aggregating Rs 1,500 crore. Approved investment of up to RS 750 crore by way of subscription or purchase of securities or otherwise in Godrej Properties Ltd., its subsidiary.
• Career Point Publications Pvt. Ltd. to purchase IL&FS Group’s education business. Committee of Creditors approved sale of Schoolnet India Ltd., an IL&FS Group company, to CPPPL on Nov. 5. IL&FS Group holds 73.7 percent stake in Schoolnet India and Schoolnet holds 80 percent stake in IL&FS Skill Development Corporation and 2 other subsidiaries.
• Kesoram Industries: NCLT approves demerger of tyre business. Shareholders of Kesoram to get one share of Birla Tyres for each share held.
• Vinati Organics Board approved stock split in 1:2 ratio.
• Jaypee Infratech meeting of the Committee of Creditors to be held on Nov. 18, 2019
• Deep Industries won two contracts worth Rs 20.25 crore and Rs 28.49 crore from ONGC
• TCS expands partnership with Phoenix Group, Europe's largest life and pensions consolidator, to drive the growth and transformation of the Standard Life business and meet the future needs of its customers, workplace clients and their advisers.

Brokerage Radar

Macquarie on Cement

• Prices should firm up as demand improves in the second half.
• Capacity deep dive highlights structural supply-side improvement.
• Valuations at decadal average have upside risk.
• UltraTech Cement: Initiated ‘Outperform’ with a price target of Rs 4,945.
• Shree: Initiated ‘Outperform’ with a price target of Rs 22,772.
• Ambuja: Initiated ‘Neutral’ with a price target of Rs 219.
• ACC: Initiated ‘Neutral’ with a price target of Rs 1,784.
• Ramco: Initiated ‘Neutral’ with a price target of Rs 858.
• Dalmia: Initiated ‘Neutral’ with a price target of Rs 885.

On Britannia

JPMorgan

• Retained ‘Overweight with a price target at Rs 3,350.
• In-line revenues, margins drive earnings beat.
• Focus on innovation, distribution expansion.
• Cost-saving initiatives sustain.

Macquarie

• Maintained ‘Underperform’ with a price target at Rs 2,518.
• Margin-led beat, volumes remain subdued.
• Volumes growth remain weak at 3 percent.
• Slowing category growth can make company’s job tougher.
• Daily ramp-up, international biz cannot be a game changer.

On Coal India

JP Morgan

• Remained ‘Overweight’; hiked price target to Rs 275 from Rs 255.
• Lower costs and higher prices offset weak production.
• Stock offers attractive dividend yield of 9 percent.
• Outperformance to continue due to attractive valuations, improvement in the second half.

Goldman Sachs

• Sharp jump in FSA realisation lead to earning beat.
• Expect volumes in the near term to be impacted by adverse weather.

Edelweiss

• Maintained ‘Buy’; hiked price target to Rs 235 from Rs 227.
• FSA realisation is expected to sustain at current levels due to change in mix.
• Imminent pick up in volumes; raise EPS estimates by 4 percent and 3 percent respectively for the current and the next financial year.

On Adani Ports

Nomura

• Maintained ‘Neutral’; hiked price target to Rs 430 from Rs 415.
• Results miss on adverse mix and forex loss.
• Slowing EXIM trade hurt margins.
• Cut Ebitda estimates by 5 percent and 4 percent for the current and the next financial year respectively to factor in weak environment

HSBC

• Maintained ‘Buy’ with a price target of Rs 450.
• Port Ebitda growth slowed; container volumes remained solid.
• Diversification of cargo to drive 8-10% volume growth and 12-14 percent revenue and Ebitda growth in 2019-20
• Lower FY20-22 Ebitda and profit slightly on lower estimated volumes.

On Hindalco

Jefferies

• Maintained ‘Buy’ with a price target of Rs 246.
• Q2: India Ebitda in-line; Novelis surprise positively.
• Aluminium fundamentals are unexciting, but prices should stay range bound.
• Potential Aleris deal without autos assets could be a negative.

Kotak Securities

• Maintained ‘Buy’; hiked price target to Rs 240 from Rs 235.
• India in line while Novelis continues to shine.
• Novelis—strong run continues; Aleris deal still has multiple moving parts.
• India—muted earnings due to weak commodity prices.

Pledge Share Details

• Jyothy Labs promoter MP Ramachandran released pledge of 1.21 crore shares on Nov. 6
• JSW Steel promoter groups revoked pledge of 1.6 crore shares on Nov. 7
• Ajanta Pharma promoter Ravi Agrawal revoked pledge of 4 lakh shares on Nov. 7
• JSW Energy promoters revoked pledge of 7 crore shares on Nov. 7

(As Reported On Nov. 11)

Trading Tweaks

• Reliance Power to move into ASM Framework
• Vikas EcoTech, JMT Auto, RattanIndia Infrastructure to move into short term ASM Framework
• Hindustan Construction Company, LG Balakrishnan & Bros, Shree Digvijay Cement, MSTC to move out of short term ASM Framework.

Who’s Meeting Whom

• Container Corporation of India to meet Credit Suisse, Morgan Stanley and other investors from Nov. 13-21
• Sundaram Fasteners to meet Amansa Holdings on Nov. 14
• TVS Motor to meet Franklin Templeton on Nov. 14

Insider Trading

• Avanti Feeds promoter G Venkatesh sold 50,000 shares from Nov. 7-8
• Ultratech Cement promoter Aditya Marketing and Manufacturing sold 2.5 lakh shares on Nov. 6

(As Reported On Nov. 11)

Money Market Update

• Rupee closed at 71.47/$ on Monday from 71.28/$ on Friday

F&O Cues

Futures

• Nifty November futures closed at 11,943.7, premium of 30.3 points versus 37.2 points
• Nifty November Futures open interest down 3 percent, sheds 4.7 lakh shares in open interest
• Nifty Bank November futures closed at 31,097.8, discount of 17.7 points versus premium of 9.6 points
• Nifty Bank November futures series open interest up 12 percent, adds 2 lakh shares in open interest

Options

• Nifty PCR at 1.28 versus 1.26 (across all series)

Nifty Weekly Expiry: Nov. 14

• Max open interest on call side at 12,000 (25 lakh shares)
• Max open interest on put side at 11,900 (19.3 lakh shares)
• Open interest addition seen at 11,850P (6.8 lakh shares), 11,900P (+6.6 lakh shares), 12,150C (+5.8 lakh shares)

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (19.9 lakh shares)
• Max open interest on put side at 11,600 (20.6 lakh shares)