Stocks To Watch: ACC, Britannia Industries, HDFC Life, HUL, L&T, Wipro
The CNX Nifty logo is displayed on a glass wall at the National Stock Exchange (NSE) in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg) 

Stocks To Watch: ACC, Britannia Industries, HDFC Life, HUL, L&T, Wipro

Indian equity markets began the new trading week on a positive note, notching up their second straight day of gains, aided by positive sentiment in the global markets. The S&P BSE Sensex ended 1.1% higher at 40,431 while the NSE Nifty 50 index ended 0.9% higher at 11,873.

Here are the stocks to watch in trade today:

  • Wipro: Awarded five-year application management and services integration and management contract by Fortum. Fortum is one of the leading clean-energy companies in Finland. Wipro will manage Fortum's application portfolio for more than 11,500 users across 18 countries and provide 24/7 support for business-critical applications.
  • Sunteck Realty: Acquires nearly 50 acres land parcel in Vasind. The land has a potential to develop nearly 2.6 million square feet integrated residential township under the 'SunteckWorld' Brand. The company has envisaged a revenue generation potential of Rs 1,250 crore over the next 4-5 years.
  • KIOCL has announced Rs 155.92 crore buyback. Board has approved proposal to buyback 1.42 crore shares (2.28% equity stake) at Rs 110 per share. Buyback price is at discount of 19.3% to the closing prices as on Oct.19.Record date set at Oct.30.
  • Textile Stocks: Government of India extends anti-dumping duty on polyester yarn from China and Thailand until Nov.30. (Bloomberg News)
  • Zensar Tech to divest its 100% stake in PSI Holding Group to Service Express for $10 million and an additional deferred amount of $5 million based on performance. On the disposal of PSI Holding Group, the company has estimated a loss between $11-13 million. Expected date of completion is Dec.18. Company will divest its non-core third party maintenance business. The non-core business comprises of 4% of the company’s revenue as per the first quarter of fiscal 2021. Last year company had divested non-core business rest of world business. Both non-core business are divested now.
  • Mangalore Refinery and Petrochemicals: Board approved acquisition of 125 crore shares of its arm ONGC Mangalore Petrochemicals from ONGC at Rs 9.76 per share aggregating to Rs 1,217 crore. Company’s stake will increase from 51% to almost 100% in ONGC Mangalore Petrochemicals
  • Adani Transmission Sept. Quarter Update: Average system availability at 99.9% versus 99.78%. Transmission network at 14,837 ckt kms versus 14,738 ckt kms. Low network addition due to Covid-19 disruption. Construction in full swing from the second quarter of fiscal 2021. Transformation capacity unchanged at 27,280 MW. Distribution losses for Adani Electricity Mumbai at 2.94% versus 8.18%, the fell significantly due to billing basis of actual meter reading.
  • ONGC has issued NCDs worth Rs 1,140 crore on a private placement basis.
  • Ramco Systems has secured additional orders for its flagship digital solutions (ERP platform) from Jamna Auto.
  • BSE has tied up with Government of Telangana and Global Linker to help MSME’s raise equity funds.
  • Trading in securities of Hexaware Tech shall be suspended with effect from Nov.2 on account of voluntary delisting as per SEBI guidelines. Shares will be delisted with effect from Nov.9.

Nifty Earnings

Britannia Q2 (Consolidated, YoY)

  • Revenue up 12% at Rs 3,419.1 crore (Est Rs 3,562.7 crore)
  • Net profit up 23% at Rs 494.9 crore (Est Rs 503.4 crore)
  • Ebidta up 37 % at Rs 675.4 crore (Est Rs 669.9 crore)
  • Margins at 19.8% versus 16.1% (Est 18.8%)

HDFC Life Insurance Q2 (Standalone, YoY)

  • Gross Premium up 35% to Rs 10,183 crore
  • Net Profit up 6% to Rs 326 crore
  • VNB Margins moderated to 25% in H1FY21 versus 28% in H1FY20
  • 13th Month Persistency at 91% versus 89%
  • APE de-grew 4% during H1FY21 to Rs 3334 crore
  • Increased traction in Retail business backed by marginal uplift in household income and spends led to premium growth
  • Premiums improved due to strong growth in Individual business

Earnings

L&T Technology Services Q2 (Consolidated, YoY)

  • $ Revenue down $9.9% at $178 million
  • Revenue down 6.3% at Rs 1,313.8 crore (Est Rs 1,326 crore)
  • Net profit down 19.6% at Rs 165.5 crore (Est Rs 151 crore)
  • Ebidta down 17.8% at Rs 232.8 crore (Est Rs 233 crore)
  • Margins at 17.7% versus 20.2% (Est 17.5%)
  • Net profit higher than estimates due to higher other income (on account of government incentives).
  • Declared dividend of Rs 7.5 per share.
  • Industrial products, transportation and plant engineering, that were impacted on
  • account of the pandemic, showed strong growth recovery on a sequential basis.
  • FY21 Revenue guidance at decline of 7-8% in U.S. dollar terms.

ACC Q3CY20 (Standalone YoY)

  • Revenue up 0.3 % at Rs 3,537.3 crore (Est Rs 3,444 crore)
  • Net profit up 21% at Rs 363.1 crore (Est Rs 312 crore)
  • Ebidta up 20.5% at Rs 670.7 crore (Est Rs 589 crore)
  • Margins at 19% versus 15.8% (Est 17.1%)
  • Margins improve due lower power and fuel expenses

Tata Metaliks Q2 (Standalone, YoY)

  • Revenue up 1.6% at Rs 519.6 crore
  • Net profit up 3.5 times at Rs 82.2 crore
  • Ebitda up 2.7 times at Rs 109.4 crore
  • Margins at 21.1% versus 8.03%
  • Margins improve by lower raw material costs and employee expenses
  • Deferred tax reversal of Rs 13.3 crore also aid bottom line numbers

Earnings Today

  • Hindustan Unilever
  • Larsen & Toubro Infotech
  • Granules India
  • Indian Energy Exchange
  • Hindustan Zinc
  • Kajaria Ceramics
  • CCL Products
  • Mahindra CIE Automotive
  • Oriental Aromatics
  • Crisil

Pledged Share Details

  • Adani Green Energy promoter SB Adani Family Trust created pledge of 10.23 lakh shares on Oct.16
  • Zee Learn promoters invoked pledge of 58 lakh shares from Oct.13-16
  • Ajanta Pharma promoter Ravi Aggarwal released pledge of 1.25 lakh shares on Oct.16
  • Atul promoter Arvind Farms released pledge of 5 lakh shares on Oct.19
  • Emami promoters released pledge of 8 lakh shares on Oct.15
  • GNA Axles promoter Jasvider Singh released pledge of 7 lakh shares on Oct.13
  • JSW Steel promoters revoked 57 lakh shares from Oct.13-14

(As Reported On Oct.19)

Trading Tweaks

  • Price Band Revised From 10% To 5%: Subex.
  • Price Band Revised From 20% To 10%: Tata Steel Long Products.
  • Price Band Revised From 5% To 20%: Anant Raj.
  • Move Into Short Term ASM Framework: Tata Steel Long Products.
  • Move Out Of Short Term ASM Framework: Ujaas Energy, Aarti Drugs.

F&O Cues

  • Nifty October futures closed at 11,897; premium of 24 points vs premium of 7 points
  • Nifty October futures Open Interest down 0.4%, sheds 47,000 shares in Open Interest
  • Nifty Bank October futures closed at 24,321; premium of 54 points vs premium of 27 points
  • Nifty Bank October futures Open Interest up 1%, adds 16,000 shares in Open Interest

Options

  • Nifty PCR at 1.37

Nifty Monthly Expiry: Oct. 22

  • Max Open Interest on call side at 12,500 (32.8 lakh shares)
  • Max Open Interest on put side at 11,800 (23.7 lakh shares)
  • Active options: 11,800 Put (15.2 lakh shares), 12,200 Call (7.2lakh shares)

Nifty Monthly Expiry: Oct. 29

  • Max Open Interest on call side at 12,500 (24.3 lakh shares)
  • Max Open Interest on put side at 10,500 (33.4 lakh shares)
Stocks To Watch: ACC, Britannia Industries, HDFC Life, HUL, L&T, Wipro
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