All You Need To Know Going Into Trade On September 29

Stocks To Watch

• State Bank of India: Shuts down six floors of its corporate headquarters on September 25 after detection of a few Covid-19 cases. The lender will follow the business continuity plan accepted by the board. The floors are likely to reopen today following the sanitsation process. The top management will see full attendance today onwards while other officials will attend on alternate days.
• BPCL: Capex for FY21 seen at Rs 8,000 crore as diesel consumption is still below pre-Covid-19 levels. Management says government trying to complete privatisation by end of FY21. Decision on sale of treasury stock via bulk or block deal likely by October 15. The company is in talks with Bharat Oman Refinery for acquiring the remaining stake in the venture. GRMs for Q2FY21 likely to be superior on a sequential basis. Oil India-Enginers India are interested to buy the Numaligarh refinery, according to the company.
• IIFL Finance: Moody's downgrades corporate family rating and senior secured debt rating to B2 from B1. The rating outlook changed to stable from rating under review. The downgrade reflects expectations that the company's asset quality and profitability will deteriorate as loan delinquencies and defaults increase. The weakening will be driven by declining earnings and cash flow due to Covid-19-led economic contraction.
• Infosys: Signs agreement with process mining player Minit to deliver digital solutions.
• Cosmo Films: Launched BOPP fragranced packaging films.
• Balaji Telefilms: Board has approved liquidation of company’s arm Chhayabani Balaji Entertainment.
• Shalby: Board approved issuing equity shares, convertible securities worth up to Rs 117.02 crore. Shareholders passed an enabling resolution to reduce promoter’s holding from 79.45% to 75% to comply with SEBI’s minimum public shareholding norms.
• Anuh Pharma: Received approval from WHO-Geneva for prequalification for pyrimcthamine APl which is used as an anti-malarial drug.
• India Grid Trust: Completed the acquisition of 74% stake of Jhajjar KT Transco from Kalpataru Power Transmission and Techno Electric & Engineering for an enterprise value of Rs 310 crore.
• Central Bank of India: Board has approved allotment of 16.58 crore shares worth Rs 254 crore to Qualified Institutional Buyers.
• Symphony: Launched universal packaged air-coolers for industrial and commercial applications.
• Jagran Prakashan: Subscribed to the rights issue in its wholly-owned arm Mid-day Infomedia for Rs 8 crore.
• KPI Global Infra: Board approved proposal of the migration of equity shares of the company from SME Platform of BSE to the Main Board of BSE.
• Prataap Snacks: Board has deferred proposal of amalgamation of its two wholly owned arms with self.

IPOs Opening Today

• UTI Asset Management Company: Raises Rs 644.6 crore from 67 anchor investors ahead of the IPO. Price Band has been set between Rs 552-554 per share.
• Mazgaon Dock Shipbuilders: Price band set between Rs 135-145 per share.
• Likhita Infrastructure: Price band set between Rs 117-120 per share.

Brokerage Radar

Morgan Stanley On Maruti Suzuki

• Overweight rating maintained
• Price target raised to Rs 7,570 from Rs 5,987
• PV market is slowly emerging from a deep downcycle
• September registrations positive; discount per car coming down
• Ebit per car set to recover on rising utilisation and lower discounts
• Cut FY21E EPS by 20% and FY22E EPS by 9% as we build a gradual ramp-up in production
• Any regulation that pushes the sector towards only EVs would be a key downside risk

Morgan Stanley On Cement

• Demand has been resilient and can surprise positively
• Realisations holding up despite excess supply
• Step-up in spreads seen during FY20 likely to be maintained
• Recent underperformance, low valuations make risk-reward favourable
• Expect to see prices stabilise in Q4CY20 and improve in H1CY21
• Raise FY22-23 Ebitda estimates by 2-10%

Stock Recommendations:

• Ambuja Cement: Overweight rating maintained; price target raised to Rs 266 from Rs 251
• UltraTech: Upgrade to overweight from equalweight; price target raised to Rs 4,870 from Rs 4,590
• Shree Cement: Upgrade to overweight from equalweight; price target cut to Rs 22,750 from Rs 23,450
• Grasim: Downgrade to equalweight from overweight; price target raised to Rs 822 from Rs 740

Emkay On JK Cement

• Upgrade to buy from hold
• Price target raised to Rs 1,801 from Rs 1,642
• Channel checks indicate strong volume growth in Q2 due to benefits from new capacities
• Expect 23-25% volume growth year-on-year for grey cement in Q2 and 8.5% / 14.6% and 5% year-on-year growth in FY21/FY22 and FY23E respectively
• Recovery in white cement / wall putty segments has been better than expect; see 3.5% volume growth in Q2
• Environment clearance for the proposed expansion at Panna in Madhya Pradesh likely to be received in Q3FY21
• Raise volume estimates of grey cement by 4-5% and Ebitda estimates by 3-4% for FY21-23
• Cost saving strategies to help grey cement profits

Prabhudas Lilladher On Crompton Greaves Consumer

• Buy rating maintained
• Price target raised to Rs 308 from Rs 288
• Geysers, air coolers and mixer-grinders to drive next leg of growth
• Lighting margins likely to improve gradually due to price stability
• Net cash position superior than peers
• Estimate 13.8% PAT CAGR over FY20-23
• Expect valuation gap with Havells to narrow over time

Pledged Share Details

• Emami: Promoter Prabhakar Viniyog created pledge of 18 lakh shares on September 23.
• Olectra Greentech: Promoter Trinity Infraventures released pledge of 58 lakh shares on September 24.
• JSW Energy: Promoter Danta Enterprises created pledge of 1.3 crore shares on September 24.

(As Reported On September 28)

Who’s Meeting Whom

• India Energy Exchange: To meet Ocean Dial and Fidelity Management Research on September 29.
• TVS Motor Company: To meet Premji Invest on September 29.

Bulk Deals

• Shree Pushkar Chemical & Fertilizers: Promoter Gautam Makharia acquired 1.8 lakh shares (0.58%) at Rs 113.1 per share.
• Welspun Corp: Promoter Welspun Group Master acquired 15.46 lakh shares (0.49%) at Rs 107.24 per share.
• Max Financial Services: Promoter Max Ventures Investment Holdings sold 60.33 lakh shares (2.24%) at Rs 600.7 per share.
• Max Healthcare Institute: Promoter Max Ventures Investment Holdings sold 1.67 crore shares (1.85%) at Rs 108.88 per share and Smallcap World Fund acquired 1.14 crore shares (1.26%) at Rs 108.75 per share.
• Take Solutions: Promoter Envestor Ventures sold 77.47 lakh shares (5.24%) at Rs 45 per share.
• Rushil Décor Rights Issue: Anand Rathi Global Finance sold 26,030 shares at Rs 20.05 per share, Aspire Emerging Fund sold 57,000 shares at Rs 16.41 per share, Leman Diversified Fund sold 39,311 shares at Rs 21.93 per share and Davos International Fund sold 75,166 shares at Rs 21.95 per share.

Trading Tweaks

• AGM Date: Andhra Cement, APL Apollo Tubes, Apollo Pipes.
• Fund Raising: Vertoz Advertising.
• Ex-Date For Share Buyback: Rites.
• Ex-Date For Share Split: Laurus Labs (face value split from Rs 10 to Rs 2 per share).
• Price Band Revision From 10% To 5%: Nucleus Software Exports.
• Price Band Revision From 20% To 10%: Mindpool Technologies.
• Move Into ASM Framework: Prince Pipes And Fittings, Xchanging Solutions, IOL Chemicals and Pharmaceuticals.
• Move Into Short Term ASM Framework: Pearl Polymers, GMM Pfaudler.
• Move Out Of Short Term ASM Framework: Skipper, Vinati Organics, Oswal Chemicals & Fertilizers, McDowell Holdings, Sarla Performance Fibers.

Delivery Buying & Selling

• MCX: Shares gained as much as 9.2% to end near a record high. 70% of the total traded shares were marked for delivery.
• Tube Investments: Shares ended with gains of 9.7%. 65% of the total shares traded were marked for delivery.
• Nocil: Shares ended 13% higher on Monday with 58% of the total shares traded marked for delivery.
• Laurus Labs: Shares gained 10% in Monday's session with 54% of the total shares marked for delivery.
• FDC: The stock saw gains of 12% on Monday with 45% of the total shares traded marked for delivery.

Source: NSE

Insider Trades

• Arvind: Promoter Aura Business Ventures acquired 12 lakh shares between September 24-25.
• HFCL: Promoter MN Ventures acquired 17 lakh shares on September 28.
• CCL Products: Promoter acquired 1.4 lakh shares from September 22-24.

(As Reported On September 28)

Money Market Update

• The rupee ended with losses in Monday's trading session, closing at 73.79 against the U.S. Dollar as compared to Friday's close of 73.61.
• The currency was the second worst performer in Asia on Monday.

F&O Cues

• Nifty October futures closed at 11,243; premium of 15 points from discount of 18 points
• Nifty October futures add 9% and 7.3 lakh shares in Open Interest
• Nifty Bank October futures closed at 21,753; premium of 87 points from discount of 46 points
• Nifty Bank October futures shed 0.3% and 5,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.31

Nifty Weekly Expiry: October 1

• Maximum Open Interest on Call side at 11,500 strike (38.6 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (28.3 lakh shares)
• Active Options: 11,100 Put (16 lakh shares) and 11,500 Call (13 lakh shares)

Nifty Monthly Expiry: October 29

• Maximum Open Interest on Call side at 11,500 strike (17.6 lakh shares)
• Maximum Open Interest on Put side at 10,500 strike(33.6 lakh shares)