Stocks To Watch: Allcargo Logistics, Asian Paints, Axis Bank, Bharti Airtel, Gati, Havells India, L&T, Vodafone Idea, Zee Entertainment
Asian stocks began Wednesday mixed as investors mull reports that China’s coronavirus had migrated to the U.S. mainland.
Early trading Wednesday suggested an easing in the risk-off moves. Stocks in Japan and South Korea were little changed, along with U.S. equity futures, while Australian shares edged up. Futures in Hong Kong pointed higher after a sharp slide in stocks there yesterday.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.07 percent to 12,199 as of 6:50 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Here are the stocks to watch in today’s trade:
- Bharti Airtel received approval from the Department of Telecommunications for increasing the limit of foreign investment up to 100 percent of the paid-up capital of the company.
- Glenmark Pharma will sell its Gynaecology business in India and Nepal to True North Fund’s unit Integrace for a deal valued at Rs 115 crore. The company expects complete the sale by March 31.
- Biocon said that it has received the subscription money aggregating to Rs 536.25 crore from True North Fund. The board of Biocon Biologics has approved allotment of 50.25 lakh shares at Rs 1,067.07 per share to True North Fund.
- Piramal Enterprises will consider shareholders nod for divestment of its Healthcare Insights and Analytics Business on Feb. 13. The company also stated that based on the preliminary information the total application for its Rights Issue has been over-subscribed.
- Reliance Power: Axis Bank has filed the application for initiation of Corporate Insolvency Resolution Process against company’s arm Vidarbha Industries Power for a claim of Rs 553.28 crore.
- Vodafone Idea filed an application for modification of Supreme Court’s order on dues. Supreme Court has directed the application to be listed next week.
- Gati approved allotment of 1.33 crore shares to Allcargo Logistics on a preferential basis at a price of Rs 75 per share, aggregating to Rs 100 crore. Allotment price is at a premium of 13 percent to the closing prices as of Jan. 21.
- Dredging Corporation of India: LIC reduced stake from 6.97 percent to 4.91 percent in the company.
- Aster DM Healthcare planned to sell dollar bonds as soon as this quarter. (BN)
- Usha Martin: Adjudicating Authority issued an order confirming the provisional order for provisional attachment of certain immovable properties of the company valued at Rs 190 crore. The company said that it has filed an appeal against the said order on Jan. 10 with the Appellate Tribunal.
- Suven Life Sciences said that post demerger, its resultant company Suven Pharma will be listed on the exchanges. The company said that shareholders to apportion their original cost of acquisition in shares at 47.54 percent for Suven Life Sciences and the remaining 52.46 percent for Suven Pharma.
- Indian Overseas Bank: Board has approved issuing equity shares on preferential basis to the Government for the capital infusion of Rs 4,360 crore received during FY20.
- IL&FS Transportation Networks defaulted in payment NCDs interest worth Rs 14.9 crore which was due on Jan. 21.
- Themis Medicare said that the company has received orders for supply of Feracrylum Gel, which has been mandated by the Government in first aid kit for all types of vehicles. The company said that it is also negotiating with various parties for utilising spare capacity for carrying out contract manufacturing of finished products.
- ZF Steering said that its Pithampur plant has started commercial production with effect from Jan. 21
- Cera Sanitaryware: Board will consider the appointment of Deepshikha Khaitan as Joint managing director on Feb. 5.
- Beekay Steel Industries: Board approved the acquisition of Durable Ispat & Alloys.
- Mayur Uniquoters said that its PU plant in Madhya Pradesh has commenced operations from Jan. 21.
- Allahabad Bank to consider a proposal for raising equity capital via preferential allotment up to Rs 2,153 crore on Jan. 24.
- OnMobile Global dissolved its U.K. arm with effect from Jan. 2.
Earning Reactions To Watch
Zee Entertainment Enterprises (Q3, YoY)
- Revenue fell 5.5 percent to Rs 2,049 crore. (Estimate: Rs 2,116 crore)
- Ebitda fell 34 percent to Rs 526 crore. (Estimate: Rs 597 crore)
- Net profit fell 38 percent to Rs 349 crore. (Estimate: Rs 428 crore)
- Margin stood at 25.5 percent versus 36.6 percent. (Estimate: 28 percent)
Polycab (Q3, YoY)
- Revenue rose 23.8 percent to Rs 2,507.3 crore.
- Net profit rose 13.2 percent to Rs 218.8 crore.
- Ebitda rose 6.8 percent to Rs 339.1 crore.
- Margin stood at 13.5 percent versus 15.7 percent.
Havells (Q3, YoY)
- Revenue fell 9.9 percent to Rs 2,269.9 crore. (Estimate: Rs 2,614.1 crore)
- Net profit rose 2.4 percent to Rs 200.4 crore. (Estimate: Rs 209.8 crore)
- Ebitda fell 9.2 percent to Rs 267.4 crore. (Estimate: Rs 295.3 crore)
- Margin stood at 11.8 percent versus 11.7 percent. (Estimate: 11.3 percent)
HDFC AMC (Q3, YoY)
- Revenue rose 10 percent to Rs 524.7 crore.
- Net profit rose 44.9 percent to Rs 352.6 crore.
- Quarterly Average AUM rose 14 percent to Rs 382,500 crore.
Tejas Networks (Q3, YoY)
- Revenue fell 52.8 percent to Rs 87 crore.
- Net loss at Rs 112.1 crore vs Net Profit at Rs 32.8 crore.
- Ebitda fell 98.9 percent to Rs 0.4 crore.
- Margin stood at 0.5 percent versus 19.7 percent.
IndiaMART InterMESH (Q3, YoY)
- Revenue rose 23.4 percent to Rs 164.9 crore.
- Net profit rose 2.2 times to Rs 62 crore.
- Ebitda rose 58.5 percent to Rs 43.6 crore.
- Margin stood at 26.4 percent versus 20.6 percent.
Snowman Logistics (Q3, YoY)
- Revenue fell 1 percent to Rs 58.8 crore.
- Net loss was at Rs 3.4 crore versus net profit of Rs 2.4 crore.
- Ebitda fell 5.6 percent to Rs 13.5 crore.
- Margin stood at 23 percent versus 24.1 percent.
Jay Bharat Maruti (Q3, YoY)
- Revenue fell 12.1 percent to Rs 402.7 crore.
- Net profit fell 39.3 percent to Rs 6.8 crore.
- Ebitda fell 11.7 percent to Rs 34.6 crore.
- Margin was flat at 8.6 percent.
Nifty Earnings To Watch
- Larsen & Toubro
- Asian Paints
- Axis Bank
Other Earnings To Watch
- RBL Bank
- Ujjivan Small Finance Bank
- SBI Life Insurance
- Alembic Pharmaceuticals
- Agro Tech Foods
- AU Small Finance Bank
- CreditAccess Grameen
- Cigniti Technologies
- Eimco Elecon
- Gateway Distriparks
- Genus Power Infrastructures
- Hindustan Media Ventures
- Hi-Tech Pipes
- IIFL Wealth Management
- India Grid Trust
- Motilal Oswal Financial Services
- Rane Engine Valve
- Sharda Cropchem
- Supreme Petrochem
- Syngene International
- Tata Communications
- VST Industries
Pledge Share Details
- Vipul promoters created pledge of 2.73 crore shares on Dec. 24.
- Gati promoters invoked pledge of 37 lakh shares from Jan. 15-16.
- Suven Lifesciences record date for demerger.
- Dynacons Systems & Solutions, GSS Infotech, Shreyas Shipping & Logistics to move into short term ASM Framework .
- Somany Home Innovation, Madhucon Projects to move out of short term ASM Framework.
- Jaiprakash Power Ventures, Shyam Century Ferrous , Zuari Agro Chemicals, Emami Realty, Technofab Engineering, Ashapura Minechem, Goa Carbon, Mirc Electronics to move into ASM Framework.
- Williamson Magor price band revised to 5 percent .
Money Market Update
- The rupee closed at 71.21/$ versus 71.11/$ on Monday.
- Nifty January futures closed at 12,203, premium of 33.3 points versus 38.6 points.
- Nifty January futures open interest down 1.2 percent, sheds 1.6 lakh shares in open interest.
- Nifty Bank January futures closed at 31,042.8, premium of 95.3 points versus 101.2 points.
- Nifty Bank January futures open interest up 2.4 percent, adds 34.5k shares in open interest.
- Nifty PCR at 1.07 versus 1.13 (across all series).
Nifty Weekly Expiry: Jan. 23
- Max open interest on call side at 12,300 (27.8 lakh shares).
- Max open interest on put side at 12,000 (15.7 lakh shares).
- Open interest addition seen at 12,200C (+12.7 lakh shares), 12,250C (+6 lakh shares), 12,100P (+5.5 lakh shares).
- Open interest shedding seen at 12,300P (-6.3 lakh shares), 12,250P (-3 lakh shares).
Nifty Monthly Expiry: Jan. 30
- Max open interest on call side at 12,500 (34.5 lakh shares)
- Max open interest on call side at 12,500 (34.5 lakh shares)..
Goldman Sachs on Apollo Hospitals
- Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 1,920 from Rs 1,490.
- Strong execution of more than 10 new hospitals.
- Encouraging patient volumes in Proton Center.
- Promoter pledge to reduce post Apollo Munich transaction.
Goldman Sachs on Fortis Healthcare
- Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 176 from Rs 150.
- Sustainable recovery in hospitals; growth pick-up in diagnostics.
- See scope for more cost cuts.
- Market underappreciates the scope and magnitude of turnaround underway.
Citi on Havells India
- Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 636 from Rs 766.
- Very weak revenue in the third quarter; saw de-growth in switchgears, lighting and cables.
- Llyod AC performance was reasonable but LED TVs led to a decline in revenue.
- Margin and balance sheet did well though underlying the quality of business.
Morgan Stanley on Tata Global
- Maintained ‘Underweight’; hiked price target to Rs 323 from Rs 165.
- Diversification of the business is a long-term positive but has a wide risk-reward skew.
- Negatives: weak return ratios, high commodity dependence and large presence in relatively weak growth geographies/categories.
Bernstein on Reliance Industries
- Upgraded to ‘Outperform’ from ‘Market Perform’; hiked price target to Rs 1,890 from Rs 1,370.
- India's answer to Exxon, AT&T and Amazon rolled into one.
- Fintech is another area in which Reliance is well-positioned.
- Media offers unique opportunities and synergies with the telco.
- Telecom will overtake energy to be the largest contribution of Ebitda by March 2023.
On HDFC AMC
- Maintained ‘Neutral’; hiked price target to Rs 2,900 from Rs 2,700.
- December quarter review: AUM growth slows but PMS income aids profit growth.
- Market share moderated across the board.
- Underlying retail investor base was intact.
- Maintained ‘Equal-weight’ with a price target of Rs 3,300.
- Reported good numbers driven by higher revenues.
- Given weak equity flows, it offers limited upside from higher earnings/valuation.
- Strong long-term fundamentals, equal-weight rating is more from a one-year perspective.
On ICICI Prudential
- Maintained ‘Buy’; hiked price target to Rs 590 from Rs 565.
- Margin performance sustained; non-linked segments growing well.
- Higher protection/lower ULIP driving up margin; co. targets doubling VNB.
- Expect further upside as APE growth improves and robust VNB growth continues.
- Maintained ‘Neutral’; hiked price target to Rs 535 from Rs 510.
- New business profit margin was stable but savings growth and persistency remain key drags.
- Protection growth continues to drive VNB growth.
- Trends in ULIP growth and persistency remain weak.
- Growth revival needed for further re-rating.