All You Need To Know Going Into Trade On Nov. 29

Stocks To Watch

• HDFC Bank said it has formed a six-member committee to find a successor to Managing Director Aditya Puri who is set to retire in October next year.
• Kohinoor Foods said that it has defaulted in obligations worth Rs 296.6 crore on the borrowings which was provided by Oriental Bank of Commerce. The date of default was on Aug. 17. Oriental Bank of Commerce has declared the company as a willful defaulter. Besides, the bank has asked the company’s proposal for one-time settlement within 15 days from Nov. 28. The total amount of outstanding borrowings from Banks / Financial Institutions stood at Rs 667.99 crore.
• Canara Bank: The Securities and Exchange Board of India exempted the government from making open offer to the shareholders of the bank following the proposed equity infusion that would hike its stake in the lender by 7.9 percent. Besides, The National Company Law Tribunal has rejected Canara Bank's application for initiating insolvency resolution process against GTL. The Bank had claimed that GTL owed it Rs 458 crore as on Dec. 31, 2011.
• CG Power & Industrial Solutions said it has asked its two Belgium-based subsidiaries to initiate steps, including any protection measures, in view of fund crunch being faced by them.
• Ricoh India: NCLT has approved resolution plan submitted by consortium led by Kalpraj Dharamshi and Rekha Jhunjhunwala. The company had filed for voluntary insolvency in May 2018. It owed a total debt of Rs 2,519 crore to its financial and operational creditors. The resolution plan submitted by investors Kalpraj Dharamshi and Rekha Jhunjhunwala involves merger of Ricoh India with a new company set up by them. The plan proposes cash infusion into the new company and an optional and conditional payment of Rs 50 crore to Ricoh after a period of nine years. Besides, the resolution plan proposes full payment against workman and employee dues as well as against the claims filed by non-related operational creditors.
• Indiabulls Housing Finance has informed exchanges that MCA has filed an affidavit in Delhi High Court stating ,“As far as the loans given by Indiabulls Housing to five companies, viz, DLF, Amricorp, Vatika, ADAG and Chordia which are the subject matter of the instant Writ Petition, the report states that loans given to Amricorp, ADAG and DLF have been repaid and loans given to other two entities viz Vatika and Chordia reported to be Standard Accounts”.
• Ashoka Buildcon received a letter of award from UPEIDA for development of EPC Project in Uttar Pradesh, whose accepted bid value stands at Rs 1,079.52 crore.
• Aurobindo Pharma’s U.S. arm entered into an agreement to acquire certain business assets from Profectus BioSciences for $11.29 million. The target company is a clinical vaccine development company. Transaction expected to be completed by first half of 2020.
• BPCL said that labour and clerical workmen of marketing and refineries are observing one day's strike from morning of Nov. 28 till the morning of Nov. 29. Unions had called for this strike as a mark of protest against privatisation of the company.
• Adani Gas: The Competition Commission of India approved Total Group’s arm purchase of 37.4 percent stake in the company.
• ICICI Securities: SEBI passed settlement order in case of alleged violation of stockbroker norms.
• Aditya Birla Capital: Aditya Birla Finance listed its commercial paper due Feb. 7 on NSE. The commercial paper is worth Rs 100 crore which yields at 5.38 percent, according to Bloomberg report.
• IL&FS Engineering & Construction: Arbitration Tribunal has given an award for an amount of Rs.492 crore for the claim filed against National Highways Authority of India by Bangalore Elevated Tollway. The company has 24 percent stake in Bangalore Elevated Tollway.
• IL&FS Transportation Network: Board approved incorporation of a new arm that will act as sponsor of a proposed Infra Investment Trust to be setup and registered as per SEBI regulations. Board has also given in-principle approval to transfer the company’s shareholding in nine SPVs to the Trust.
• SSJVN: Amarjit Bindra resigned from the post of Director (Finance) with effect from Nov. 27. The company’s Chairman and Managing Director Nand Lal Sharma will be entrusted to additional charge of Director (Finance) post.
• Lemon Tree Hotels launched 101- room hotel in Vijayawada.
• Hinduja Global Solutions entered into a definitive agreement to sell its India domestic Customer Relationship Management business to Altruist India for Rs 40 crore.
• ONGC issued $300 million notes under MTN Program.
• AGC Networks stated that promoters hold 64.28 percent stake in the company, out of which 33.65 percent stake is encumbered.
• Reliance Communications: Creditors Meeting to be held on Nov. 29.
• Share India Securities to migrate from BSE SME Platform to BSE Mainboard platforms with effect from Dec. 2.
• Fortis Healthcare: CARE Ratings has withdrawn its ratings from company’s long term and short-term bank facilities.

Offerings

• BSE’s shares sale in Central Depository Services shares gets 4.94 times demand on the first day.

Brokerage Radar

CLSA on Indiabulls Housing Finance

• Maintained ‘Buy’; hiked price target to Rs 450 from Rs 350.
• Clarity on court case can lend relief; MCA affidavit should abate concerns.
• Access to debt markets and co-orgination partnership key.
• Valuations are attractive and can re-rate as concerns recede.

CLSA on Aditya Birla Fashion

• Maintained ‘Buy’; hiked price target to Rs 266 from Rs 244.
• Core business going strong; pantaloons’ upward margin trajectory to continue.
• New categories now meaningful and offer significant option value.
• Expect working capital improvement and net debt to peak in 2019-20.

UBS on Tech Mahindra

• Maintained ‘Neutral’; hiked price target to Rs 825 from Rs 680.
• Strong revenue ramp-up to offset risks due to higher cost.
• Stronger exit rates for 2020-21 to provide relative revenue stability.
• Simultaneous revenue and margin recovery likely needed for further re-rating.

Morgan Stanley on Avenue Supermarts

• Maintained ‘Underweight’; hiked price target to Rs 1,500 from Rs 1,120.
• Market expectations for revenue growth and operating margins are high.
• Valuations leave little room for disappointment in current weak macro environment.
• Avenue is one of the most efficient retailer globally.

Goldman Sachs on L&T Finance

• Initiated ‘Buy’ with a price target of Rs 140.
• Positioned to scale up while providing comfort on profitability.
• Recent concerns are exaggerated and overshadow potential market share gains.
• Expect earnings CAGR of 13 percent and RoA of 2.3 percent over FY20-22

Goldman Sachs on PNB Housing Finance

• Initiated ‘Sell’ with a price target of Rs 458.
• Structural challenges to lead to sub-optimal returns.
• Lack of visibility on bottoming of asset quality.
• Erosion of competitive advantage to limit ability to gain market share.

HSBC on India Life Insurance Companies

• HDFC Life: Maintained ‘Hold’; hiked price target to Rs 540 from Rs 510.
• ICICI Prudential: Maintained ‘Buy’; hiked price target to Rs 540 from Rs 470.
• SBI Life: Downgraded to ‘Hold’ from ‘Buy’; hiked price target to Rs 1,005 from Rs 945.
• Industry growth has slowed down in the past three months.

Edelweiss on Yes Bank

• Upgraded to ‘Buy’ from ‘Hold’; hiked price target to Rs 101 from Rs 70.
• Underlying franchise strength would attract capital.
• Asset quality problem is acute, but largely factored in.
• Management’s initiatives hinge on evolving granular business model.

Trading Tweaks

• Gammon Infrastructure Projects, Tilaknagar Industries, Tanla Solutions, Sterling And Wilson Solar, Allied Digital Services to move into short term ASM Framework.
• Pokarna, GSS Infotech, Indo Amines to move out of short term ASM Framework
• Bank of India price band revised to 20 percent.
• Tilaknagar Industries, Allied Digital Services price band revised to 10 percent.
• Hubtown, Zee Learn price band revised to 5 percent.

Who’s Meeting Whom

• Credit Access Grameen to meet Taiyo Pacific Partners on Dec. 2.
• eClerx Services to meet SAIF Partners on Nov. 29.
• Mahanagar Gas to meet American Century Investment Management on Dec. 2.
• Thyrocare Technologies to meet InvesQ Investment Advisors on Nov. 29.

Insider Trading

• Panama Petrochem promoters acquired 1.57 lakh shares from Nov. 26-28.
• UltraTech Cement promoter IGL Holdings sold 2.8 lakh shares from Nov. 25-26.
• Star Cement promoter Sriram Merchants sold 10.42 lakh shares on Nov. 26.
• IIFL Securities promoter group Orpheus Trading acquired 2.2 lakh shares on Nov.28.

F&O Cues

Index Futures

• Nifty Dec futures closed at 12,186, premium of 35 points.
• Nifty Futures across series open interest down 0.3 percent, sheds 47,000 shares in open interest.
• Nifty Bank Dec futures closed at 32,170, premium of 47.2 points.
• Nifty Bank futures across series open interest up 19 percent, adds 4.3 lakh shares in open interest.
• Rollover-Nifty 80 percent, Nifty Bank 70 percent.

Options

• Nifty PCR at 1.77 versus 1.63 (across all series).

Nifty Weekly Expiry: Dec. 5

• Max open interest on call side at 12,100 (9.6 lakh shares).
• Max open interest on put side at 12,000 (20.4 lakh).
• open interest addition seen in 12,000P (+11.9 lakh shares), 12,100P (+8.3 lakh shares), 12,200 (+4.8 lakh shares).

Nifty Monthly Expiry: Dec. 26

• Max open interest on call side at 12,500 (16.9 lakh shares).
• Max open interest on put side at 12,000 (29.5 lakh shares).