Stocks To Watch: Adani Power, Aditya Birla Fashion, Lupin, SBI, TVS Motor, United Spirits, Vedanta

Asian stocks climbed early Thursday as investors weighed continued signs of economies reopening against the increase in Sino-American tensions over Hong Kong. The yen dipped and Treasuries nudged down. Japanese shares opened about 1% higher, with gains of more than 1% in Australia and more modest ones in South Korea.

Here are the stocks to watch in trade today:

• State Bank of India to extend the moratorium by another 3 months in loan accounts of all eligible customers.
• Adani Power signed power purchase agreement with Madhya Pradesh government for procurement of 1230 MW of electricity on long term basis from a new power station of 1320 MW capacity to be set up on super critical technology.
• Aditya Birla Fashion and Retail stated that it has managed to resume operations at all manufacturing facilities and most warehouses. As of May 27, out of a total network of 3041 stores, more than 1300 stores have started operations.
• India Ratings and Research has downgraded Vedanta’s long-term issuer tating to ‘IND AA-’ from ‘IND AA’. The Outlook is Negative. The downgrade reflects likely deterioration in company’s credit profile following a substantial decline in economic activity due to the Covid-19-related lockdown, with the balance sheet leverage remaining elevated in both financial years 2020 and 2021.
• VRL Logistics on Covid-19 impact: Witnessed a mass exodus of drivers which affectected operations adversely. Business volumes are as good as non-existent and at best negligible. The exodus of migrant Iabour is expected to aggravate this situation further near short term and till the business finds alternative and competent manpower, the freight volumes are expected to be low thereby casting a shadow on capacity utilization. Company expects to post a significant loss for the quarter ending June, 2020. Expect the business volumes to start picking up significantly from August onwards and the restoration of freight volume normalcy by the last quarter of the current fiscal 2021.
• Future Consumer: Board approved termination of the joint venture arrangement with Mibelle A.G. and liquidation of joint venture company, Mibelle Future Consumer Products A.G. at Switzerland. There is no material impact on the business of the company consequent to this termination, as stated in an exchange filing.
• Bharat Forge on Covid-19 impact: The operations in Germany have restarted from the beginning of May, while plants in North American and Sweden continued to operate to address customer demand, albeit at sub optimal utilization.
• KPIT Tech on Covid-19 impact: Significant impact expected in the first half of fiscal 2021, and recovery expected to start from third quarter onwards. Medium term capex plans have been deferred. No guidance has been given for the financial year 2021.
• IndoStar Capital Finance has completed equity raise of Rs 1,225 crore from Brookfield. Post infusion capital adequacy at 40% and leverage at 1.5 times. Brookfield will become a Promoter, along with IndoStar Capital Mauritius and will have the ability to nominate two members to IndoStar’s Board of Directors. Open Offer likely to be launched in June/July, after receiving regulatory approvals.
• Indian Hotels to consider raising Rs 300 crore via NCDs on May 30.
• Vardhman Textiles to consider issue of NCDs upto Rs 200 crore on May 30.
• Filatex India: Anil Dutt Mohla resigned from CFO’s post with effect from May 27
• India Grid Trust is evaluating 2-3 proposals to acquire stressed solar assets, Chief Executive Officer Harsh Shah said in an earnings call. Revenue not linked to power flow and hence haven’t been impacted by the lockdown.

Other Earnings

United Spirits Q4 (Standalone, YoY)

• Revenue down 11.4% at Rs 1,993.8 crore (Est Rs 2,173 crore)
• Net profit down 81.1% at Rs 23.9 crore (Est Rs 161 crore)
• Ebidta down 4.30% at Rs 271.4 crore (Est Rs 284 crore)
• Margins at 13.6% versus 12.6%
• Margins improve due to lower employee and ad expenses
• Higher taxes from previous years (disputed litigations) drag profit numbers
• Gross margins down 433 basis points at 42.2% due to COGS inflation as well as the dilutive impactof the last tranche of bulk Scotch sale.
• Sharp deceleration in Prestige and Above portfolio
• Numbers include one-time bulk Scotch sale of Rs 248 crore in current quarter
• Volume contracted by 13.5%

Aditya Birla Fashion and Retail Q4 (Standalone, YoY)

• Revenue down 5.11% at Rs 1,817.4 crore (Est Rs 1,825 crore)
• Net loss at Rs 140.3 crore versus Net profit at Rs 202.6 crore (Est Net loss at Rs 74 crore)
• Ebidta up 25.3% at Rs 156 crore (Est Rs 144 crore)
• Margins at 8.58% versus 6.50%
• Deferred tax reversal of Rs 194 crore in base quarter
• Operating numbers impacted due to IND AS 116
• Sales loss due to Covid-19 stood at Rs 339 crore, while impact of gross margin was Rs 200 crore

Ujjivan Financial Services Q4 (Consolidated, YoY)

• Net Interest Income up 40.7% at Rs 496.2 crore
• Net profit up 48.5% at Rs 64 crore
• Provision for Covid-19 at Rs 70 crore

Tube Investments of India Q4 (Consolidated, YoY)

• Revenue down 23.4% at Rs 1,031 crore
• Net profit up 5.84% at Rs 59.8 crore
• Ebidta up 3.92% at Rs 127.4 crore
• Margins at 12.4% versus 9.11%
• Margins increase due to lower raw material costs and other expenses
• Revenue impacted due to de-growth in Auto Industry

India Grid Trust Q4 (Standalone, YoY)

• Revenue up 93% at Rs 328.4 crore
• Net profit up 2 times at Rs 299.3 crore
• Distribution of Rs 3 per unit

Earnings Today

• Federal Bank
• TVS Motor
• CEAT
• Heidelberg Cement India
• LT Foods
• Lupin
• Muthoot Capital Services
• Prism Johnson
• Radico Khaitan
• Rain Industries
• Tata Steel Long Products
• Agro-Tech Foods
• IIFL Finance
• Wendt

Bulk Deals

• IndoStar Capital Finance: Amundi Funds Equity India sold 4.71 lakh shares (0.51 percent) at Rs 280.01 per share.

Who’s Meeting Whom

• Manappuram Finance to meet IIFL Capital on May 28
• Endurance Tech to meet ICICI Pru Life Insurance on May 28
• HFCL to meet ICICI Securities and Maybank Kim Eng Securities on May 28
• CG Consumer Electricals to meet Motilal AMC and HDFC Life from May 29-June 1
• Info-Edge to meet Motilal Oswal on May 28
• Cipla to meet GIC, Investec Capital Services and other investors from May 28-June 22

Trading Tweaks

• Price Band Revised From 20% To 10%: Birla Corporation, Kothari Products
• Move Into Short-Term ASM Framework: Rolta, JMT Auto, Urja Global
• Move Into Short-Term ASM Framework: Affle
• Move Out Of Short-Term ASM Framework: Saurashtra Cement, Black Rose Industries

Insider Trading

• Apollo Tyres promoter PTL Enterprises acquired 15,000 shares on May 22
• Aarti Drugs promoter sold 17,000 shares from May 21-22

(As Reported On May 27)

F&O Cues

Index Futures

• Nifty May futures closed at 9309, discount 5 points versus 5 points premium
• Nifty May futures open interest down 18%, sheds 11.3 lakh shares in open interest
• Nifty Rollovers at 59%
• Nifty Bank May futures closed at 18663, premium of 47 points versus 5 points premium
• Nifty Bank May futures open interest down 39%, sheds 5.7 lakh shares in open interest
• Nifty Bank Rollovers at 50.7%

Options

• Nifty PCR at 1.56 versus 1.16 (across all series)

Nifty Monthly Expiry: May 28

• Max open interest on call side at 9500 (27.9 lakh shares)
• Max open interest on put side at 9000 (43.8 lakh shares)
• Active options: 10,000 Call (-8.8 lakh shares), 9200 Put (+14.1 lakh shares)

Securities In Ban

• Idea