Stocks to Watch: Adani Ports, Britannia, HDFC AMC’s Debut, ICRA, Wipro
Here are the stocks to watch out for in today’s trade.
Asian stocks open modestly higher Monday as earnings seasons rolls on. The yuan held on to its gains after a surprise move by the central bank to make it more expensive to bet against the currency triggered a rally in China’s currency.
Equity benchmarks edged higher in Japan, Australia and South Korea, while futures signaled a higher open for Hong Kong ahead of results from regional heavyweights HSBC Holdings Plc and Softbank Group Corp.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent higher at 11,420.50 as of 7:20 a.m.
Short on time? Well, then listen to this podcast for a quick summary before the opening bell!
Here Are The Stocks To Watch Out For In Today’s Trade
- Avendus set to buy IDFC mutual funds and securities units in deal valued between Rs 5,000-6,000 crore (The Economic Times)
- Wipro to settle National Grid lawsuit for $75 million in the U.S.
- ICRA proposing a buyback of shares on Aug. 9.
- Allahabad Bank mulls raising equity capital by was preference issue to GoI on Aug. 14.
- Premier Explosives bagged orders worth Rs 68.9 crore from Coal India.
- Puravankara’s Goa arm received bookings for more than 800 units for residential project.
- Tata Group and Dabur India to bid for Kraft Heinz $1 billion sale of India business. Cadila Healthcare arm shows interest in the Kraft Heinz offer for sale. (Bloomberg)
- TCS’ board approved buyback. Record date fixed at Aug. 18.
- Dr. Reddy’s files IPR challenges to Celgene patents on Revlimid.
- Alembic Pharma: Bimatoprost ANDA gets tentative approval from USFDA.
New Listing
- HDFC AMC shares to start trading on BSE/NSE after IPO that got 83 times demand at Rs 1,100 each.
Nifty Earnings To Watch
- Adani Ports & SEZ
Other Earnings To Watch
- Adani Power
- Arvind
- Avanti Feeds
- Britannia Industries
- Caplin Point Laboratories
- Dena Bank
- Firstsource Solutions
- Graphite India
- Max Financial Services
- Monsanto India
- Nava Bharat Ventures
- Parag Milk Foods
- Ujjivan Financial Services
- Punjab National Bank
- Syndicate Bank
- Ujjivan Financial
Earnings Reaction To Watch
Relaxo Footwear (Q1, YoY)
- Revenue up 17.3 percent to Rs 566.5 crore.
- Net profit up 23 percent to Rs 46 crore.
- Ebitda up 17 percent to Rs 83 crore.
- Margins at 14.6 percent versus 14.7 percent.
Suzlon Energy (Q1, YoY)
- Revenue down 50.5 percent to Rs 1,277.5 crore.
- Ebitda down 83.8 percent to Rs 77 crore.
- Net Loss of Rs 572.8 crore versus Rs 49 crore profit.
- Forex gain of Rs 253.6 crore versus Rs 42.4 crore.
Wockhardt (Q1, YoY)
- Revenue up 13.1 percent to Rs 1,007.7 crore.
- Ebitda at Rs 28.8 crore versus Ebitda loss of Rs 79.3 crore.
- Margin at 2.8 percent versus -8.9 percent.
- Net loss narrows to Rs 86.2 crore versus Rs 409.7 crore.
KEC International (Q1, YoY)
- Revenue up 13.4 percent to Rs 2,104.7 crore.
- Net profit up 37.8 percent to Rs 86.8 crore.
- Ebitda up 22.6 percent to Rs 216 crore.
- Margin at 10.3 percent versus 9.5 percent.
Sical Logistics (Q1, YoY)
- Revenue up 32.1 percent to Rs 323.5 crore.
- Net profit down 64 percent to Rs 4 crore.
- Ebitda down 13 percent to Rs 38.4 crore.
- Margin at 11.9 percent versus 18 percent.
Berger Paints (Q1, YoY)
- Revenue up 18.9 percent to Rs 1,483 crore.
- Net profit up 19.5 percent to Rs 135 crore.
- Ebitda up 22.6 percent to Rs 227 crore.
- Margin at 15.3 percent versus 14.8 percent.
Waterbase (Q1, YoY)
- Revenue up 22.5 percent to Rs 154.3 crore.
- Net profit up 23 percent to Rs 17.7 crore.
- Ebitda up 3.6 percent to Rs 26 crore.
- Margin at 16.8 percent versus 19.8 percent.
Steel Authority of India (Q1, YoY)
- Revenue up 37.4 percent to Rs 15,907 crore.
- Net profit of Rs 540.4 crore versus net loss of Rs 801.4 crore.
- Ebitda at Rs 2,576.5 crore vs Ebitda loss at Rs 83.8 crore.
Indo Count Industries (Q1, YoY)
- Revenue up 10.2 percent to Rs 440.3 crore.
- Net profit down 10 percent to Rs 28.8 crore.
- Ebitda up 44.4 percent to Rs 47.5 crore.
- Margin at 10.8 percent versus 8.2 percent.
Jaiprakash Power Ventures (Q1, YoY)
- Revenue up 8.75 percent to Rs 1083.07 crore.
- Ebitda up 24.4 percent to Rs 436.8 crore.
- Margin at 40.3 percent versus 35.2 percent.
- Net profit at Rs 4.14 crore versus net loss of Rs 19.02 crore.
Laurus Labs (Q1, YoY)
- Revenue up 12.7 percent to Rs 539 crore.
- Net profit down 57.3 percent to Rs 16.6 crore.
- Ebitda down 16.6 percent to Rs 80.5 crore.
- Margin at 14.9 percent versus 20.2 percent.
Adlabs Entertainment (Q1, YoY)
- Revenue down 2.2 percent to Rs 84.7 crore.
- Net loss of Rs 20.9 crore versus net loss of Rs 22.5 crore.
- Ebitda up 5.9 percent to Rs 34.1 crore.
- Margin at 40.3 percent versus 37.2 percent.
Shipping Corporation of India (Q1, YoY)
- Revenue up 3.4 percent to Rs 894.3 crore.
- Net loss of Rs 206 crore versus net loss of Rs 6.7 crore.
- Ebitda down 98.2 percent to Rs 3 crore.
- Margin at 0.3 percent versus 19.2 percent.
Entertainment Network (India) (Q1, YoY)
- Revenue up 16.4 percent to Rs 121.6 crore.
- Net profit up 102.2 percent to Rs 9.3 crore.
- Ebitda up 65.5 percent to Rs 28.3 crore.
- Margin at 23.3 percent versus 16.4 percent.
Sandhar Tech (Q1, YoY)
- Revenue up 25 percent to Rs 493 crore.
- Net profit up 48 percent to Rs 22 crore.
- Ebitda up 15 percent to Rs 49 crore.
- Margin at 10 percent versus 10.8 percent.
PI Industries (Q1, YoY)
- Revenue up 9.5 percent to Rs 606 crore.
- Net profit down 18.4 percent to Rs 82 crore.
- Ebitda down 9.4 percent to Rs 118 crore.
- Margin at 19.5 percent versus 23.6 percent.
Bulk Deals
- Delta Corp: Morgan Stanley France sold 23 lakh shares, or 0.9 percent equity at Rs 266.07 each.
- PVR: Fidelity Investment Trust-Fidelity International Discovery Fund sold 4.03 lakh shares, or 0.9 percent equity at Rs 1172.59 each.
Indiabulls Housing Finance Ltd
- Jasmine Capital Investments Pte Ltd bought 22.7 lakh shares, or 0.5 percent equity at Rs 1374.6 each.
- Orient Global Cinnamon Capital Limited sold 22.7 lakh shares, or 0.5 percent equity at Rs 1374.6 each.
Tejas Networks Ltd
- Eastbridge Capital Master Fund Limited bought 19.17 lakh shares, or 2.1 percent equity at Rs 259.98 each.
- Birla Sun Life MF bought 8 lakh shares, or 0.9 percent equity at Rs 260.25 each.
- Samena Spectrum Co. sold 45 lakh shares, or 4.9 percent equity at Rs 260.27 each.
Trading Tweaks
- TVS Electronics Ltd. placed under the ASM framework.
- Venkys circuit filter revised to 10 percent.
- Music Broadcast buyback worth Rs 57 crore at a maximum Rs 385 per share starts today.
Who’s Meeting Whom
- Indian Toner’s and Developers to meet investors on Aug. 6.
- CRISIL to meet Motilal Oswal Securities and other investors from Aug. 6-20.
- Infosys to meet investors from Aug. 7-9.
Insider Trades
- JSW Steel promoter JSW Techno Projects Management Ltd. acquired 8 lakh shares from July 31–August 1.
- Singer India promoter Retail Holdings (India) B.V. sold 4,500 shares on Aug. 2.
- Cosmo Films promoter Ashok Jaipuria acquired 16,244 shares from Aug. 1–2.
- Plastiblends India promoter Jyoti V Kabra acquired 11,085 shares from July 23–Aug. 1.
As reported on Aug. 3
Rupee
- Rupee ended at 68.62/$ versus 68.71/$ on Thursday.
F&O Cues
- Nifty August Futures closed trading at 11,395.7, premium of 34.9 points versus 37 points.
- August series-Nifty Open Interest up 3 percent and Bank Nifty Open Interest up 15 percent.
- India VIX ended at 12, down 3.8 percent.
- Maximum Open Interest for August series at 11,500 Call, Open Interest at 31.4 lakh, Open Interest down 12 percent.
- Maximum Open Interest for August series at 11,000 Put Open Interest at 49.5 lakh, Open Interest up 7 percent.
F&O Ban
- In Ban: Adani Power, Jet Airways
- New In Ban: Jet Airways
- Out Of Ban: None
Brokerage Radar
Deutsche Bank on Berger Paints
- Initiated ‘Buy’ with a price target of Rs 375.
- Product differentiation and distribution expansion to drive double-digit volume growth.
- New niche segments a strong medium-term growth driver.
- Expect moderate margin expansion to continue.
- Expect revenue and net profit grow at a compounded annual growth rate of 17 percent and 22 percent respectively over FY18-21.
Deutsche Bank on Kansai Nerolac
- Initiated ‘Buy’ with a price target of Rs 575.
- Fastest-growing paint company and key beneficiary of a likely capex cycle revival.
- Margin expansion to continue led by premiumisation and operating leverage.
- Leveraging parents global technology for new launches.
- Capacity to increase by 50 percent over next three years.
- Expect revenue and net profit to grow at a compounded annual growth rate of 17 percent over FY18-21.
Morgan Stanley on GAIL (India)
- Maintained ‘Overweight’; cut price target to Rs 473 from Rs 511.
- Fundamentals are getting strong.
- Positives: push to lower pollution, clarity on hike in pipeline tariff.
- Weaker U.S. gas prices coupled with higher oil prices to lead to upside risks.
- Cut price target due to lower multiples across its businesses due to higher bond yields in India.
JPMorgan on HCL Tech
- Maintained ‘Overweight’ with a price target of Rs 1,050.
- Risk-reward balance delicately poised.
- Judicious course-correction can shift balance in a more favorable direction.
- Do not see HCL making disruptive moves to improve its positioning in digital.
- Maintaining margins can be difficult in the face of continued growth difficulties.
Morgan Stanley on Tata Global Beverages
- Maintained ‘Underweight’; raised price target to Rs 170 from Rs 150.
- June quarter earnings were in-line with estimates.
- Another quarter of weak operating performance.
- Low earnings visibility remains the key concern.
Citi on HDFC Bank
- Maintained ‘Buy’ with a price target of Rs 2,590.
- Capital raise to boost capital ratios and support growth.
- Accelerated growth to help net interest margins.
- See good lending opportunities across wholesale and SME space as well.
Brokerages On Hero MotoCorp
Citi
- Maintained ‘Buy’ with a price target of Rs 4,250.
- Supportive macro for two wheeler growth in India.
- Hero plans to counter opposition by product action rather than price action.
- Access and cost of finance could be big demand drivers.
- Second hand bike market could see a spurt.
Deutsche Bank
- Maintained ‘Hold’ with a price target of Rs 3,550.
- Hero to continue its strategy of "better features, higher pricing".
- Rapid growth in 125cc segment to help improve overall scooter market-share.
- Remain cautious on mass-market two wheeler companies.
- Expect several headwinds for margins.
Brokerages On Godrej Properties
JPMorgan
- Maintained ‘Neutral’ with a price target of Rs 850.
- Accounting change impacts net earnings.
- Like-to-like financials much better.
- Pre-sales come off partly on higher base.
- Real estate companies to now focus on deliveries rather than hitting revenue recognition thresholds.
Morgan Stanley
- Maintained ‘Equal-weight’; raised price target to Rs 707 from Rs 682.
- Opening net worth lower by Rs 740 crore due to IND AS.
- Management optimistic on pickup and expects consolidation to continue.
- Expect Godrej to continue to deliver on new project acquisitions.
- Expect new launch momentum in the ensuing quarter.
Brokerages On Nestle
UBS
- Maintained ‘Neutral’ with a price target of Rs 10,750.
- June quarter was a strong quarter where profit surpassed estimates and volume were in line.
- New launches continue; management warns about raw material inflation.
- Margins to come under pressure in the near term.
- Strong performance priced in; limited upside.
CLSA
- Maintained ‘Outperform’; raised price target to Rs 11,700 from Rs 10,200.
- June quarter results were ahead of estimates.
- Good growth with strong margin expansion.
- Input costs are inching up but strong pricing power allays margin concerns.
- Believe Nestle is on a good growth trajectory.
Brokerages On Titan
CLSA
- Maintained ‘Outperform’ with a price target of Rs 1,050.
- June quarter results ahead of estimates; Massive margin gains in watches.
- Jewellery: Higher Ebit, but weaker revenues.
- Management sounded positive and maintained its guidance for above 25 percent jewellery growth.
- Sustained pick-up in growth is critical for stock-price performance.
Morgan Stanley
- Maintained ‘Overweight’ with a price target of Rs 1,080.
- June quarter reported in line earnings.
- Key positive for the quarter is the watch business margin.
- Key disappointment during the quarter was the jewellery business margin.