Stocks To Watch: Arvind, DHFL, HUL, Kotak Mahindra Bank, L&T, TVS Motor

Asian stocks opened modestly higher as investors brace for a busy week of U.S. corporate earnings and potential developments in trade negotiations.

Shares in Japan, Australia and South Korea edged higher. U.S. futures were little changed after gains in technology shares lifted stocks earlier. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, climbed 0.4 percent to 11,400 as of 7:50 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 Out For In Today’s Trade

• DHFL: NSE suspended trading in company’s eight NCDs with effect from July 31. Exchange stated that the reason for the suspension is redemption. Also, its joint auditors have listed several qualifications and disclaimers to the company’s annual financial statement and said its ability to continue as going concern is in “significant doubt”.
• Vadilal Industries: Rajesh Gandhi resigned as the chairman of the company with effect from July 22. Vijay Shah to be appointed in his place.
• TVS Motor Singapore arm to invest $7 million in Scienaptic Systems.
• BSE signed MoU with Shanghai Stock Exchange to facilitate maintenance of orderly securities markets in both India and China.
• MTNL: Fire broke out in company’s office in Mumbai.

Earnings Reaction To Watch

Kotak Mahindra Bank (Q1, YoY)

• Net interest income up 23 percent to Rs 3,173 crore.
• Net profit up 33 percent to Rs 1,360 crore but misses estimate.
• NPAs, margin remains stable.
• MSMEs contribute Rs 100 crore to total slippages of Rs 750 crore.
• Loan growth at 18 percent. (YoY).
• Loan growth in CV/CE segment at 1 percent. (QoQ)
• Management says growth will come mainly from consumer lending.

TVS Motor (Q1, YoY)

• Revenue up 7.2 percent to Rs 4,468.6 crore.
• Net profit down 2.9 percent to Rs 142.3 crore.
• Ebitda up 10.8 percent to Rs 355.8 crore.
• Margin widens to 8 percent.
• Depreciation up 28 percent to Rs 119.4 crore and finance cost up 62 percent at Rs 29.1 crore.

Coromandel International (Q1, YoY)

• Revenue down 15.7 percent at Rs 2,130.7 crore.
• Net profit down 30.8 percent at Rs 62.4 crore.
• Ebitda down 8.7 percent at Rs 195.3 crore.
• Margin widen to 9.2 percent.

United Spirits (Q1, YoY)

• Revenue up 7.2 percent to Rs 2433.1 crore.
• Net profit up 37.2 percent to Rs 202.1 crore.
• Ebitda up 52.2 percent to Rs 490.5 crore.
• Margin widens to 20.2 percent.

Just Dial (Q1, YoY)

• Revenue up 13.6 percent to Rs 240.2 crore.
• Net profit up 48.8 percent to Rs 57.3 crore.
• Ebitda up 12 percent to Rs 64.3 crore.
• Margin narrows to 26.8 percent.
• Other income up 3.8 times to Rs 31.1 crore.

Kirloskar Ferrous (Q1, YoY)

• Revenue down 2.9 percent to Rs 482 crore.
• Net profit up 75.2 percent to Rs 18.4 crore.
• Ebitda up 30.3 percent to Rs 45.1 crore.
• Margins widens to 9.4 percent.
• Other income down 18 percent at Rs 103.5 crore.

Allsec Technologies (Q1, QoQ)

• Revenue up 1.7 percent to Rs 67.4 crore.
• Net profit at Rs 11.9 crore.
• EBIT flat at Rs 13.2 crore.
• Margin widens to 19.6 percent.
• Provision for impairment of goodwill at Rs 12.5 crore in base quarter.

Can Fin Homes (Q1, YoY)

• Net interest income up 16.9 percent to Rs 147.9 crore.
• Net profit up 9.4 percent to Rs 80.1 crore.

Mastek (Q1, QoQ)

• Revenue down 7.3 percent to Rs 247.5 crore.
• Net profit down 11.7 percent to Rs 24.2 crore.
• EBIT down 12 percent to Rs 26.3 crore.
• Margin narrows to 10.6 percent.

Aptech (Q1, QoQ)

• Revenue down 18.5 percent to Rs 51.6 crore.
• Net profit down 34 percent to Rs 3.1 crore.
• EBIT down 42.9 percent at Rs 3.2 crore.
• Margin narrows to 6.2 percent.

Nifty Earnings To Watch

• Zee Entertainment Enterprises
• Larsen & Toubro
• Hindustan Unilever

Other Earnings To Watch

• NIIT Technologies
• Torrent Pharmaceuticals
• Bayer Cropscience
• CRISIL
• DCM Shriram
• Everest Industries
• HDFC Life Insurance Company
• HT Media
• JK Paper
• Jyothy Laboratories
• Kajaria Ceramics
• Linde India
• Mahindra & Mahindra Financial Services
• Mahindra EPC Irrigation
• Oriental Hotels
• Poddar Pigments
• Ponni Sugars (Erode)
• Praj Industries
• Rushil Decor
• Saven Technologies
• SBI Life Insurance Company
• Schaeffler India
• Shanthi Gears
• SKF India
• Sundaram Clayton
• Elantas Beck India
• GE Power India Limited
• Indian Overseas Bank

Bulk Deals

Garden Reach Shipbuilders

• UTI AMC sold 6.71 lakh shares (0.59 percent) at Rs 129.74 each.

Who’s Meeting Whom

• Great Eastern Shipping to meet Nalanda Capital on July 24

Insider Trading

• Steel Strips Wheels promoter Sunena Garg acquired 11,000 shares on July 19.
• Hubtown promoter Rushank Shah acquired 12,000 shares on July 19.

Money Market Update

• The rupee on Monday weakened to 68.92/$ versus Friday’s closing of 68.80/$.

F&O Cues

Futures

• Nifty July futures closed at 11,360, premium of 14 points.
• Nifty futures open interest across series down 4 percent, sheds 7.3 lakh shares in open interest.
• Bank Nifty July futures closed at 29,389.6, premium of 104 points.
• Bank Nifty futures open interest across series down 7 percent, sheds 1.2 lakh shares in open interest.
• Nifty Rollover at 35 percent, Nifty Bank Rollover at 33 percent.

Options

• Nifty PCR at 1.00 versus 1.04 (across all series).

Nifty Monthly Expiry 25-July

• Max Open Interest on call side at 11,600 (32.5 lakh shares)
• Max Open Interest on put side at 11,300 (38 lakh shares)
• Max Open Interest addition seen in 11,400C (+22 lakh shares), 11,300P (+7.6 lakh shares)
• Open Interest shedding seen in 11400P (-7 lakh shares), 11500P (-4.7 lakh shares)

Stocks In Ban:

In Ban:

• DHFL
• Dish TV
• IDBI Bank
• Reliance Infrastructure

New In Ban:

• Dish TV

Out Of Ban:

• Reliance Capital