Stocks To Watch: Ashok Leyland, Britannia, Hero MotoCorp, Kotak Mahindra Bank, IGL, InterGlobe Aviation, Reliance Industries, TVS Motor

Asian stocks opened in mixed fashion, while U.S. futures slipped as investors assessed prospects for the deployment of the U.S. military to quell social unrest. Benchmarks in Tokyo and Seoul climbed, while Sydney fluctuated.

Here are the stocks to watch in trade today:

• Kotak Mahindra Bank Uday Kotak, the founder and chief executive officer of the Bank, is offering up to 5.6 crore shares at Rs 1,215-1,240 per share. The objective of sale is to help Uday Kotak reduce stake in line with the resolution agreed with the Reserve Bank of India to lower his holding to 26% by August, 2020. Block deal will be of $900-$918 million comprising 2.83 percent of equity. Price range represents a discount of 0.7% to 2.7% to the last closing price of June 1. 100% secondary placement is the way stocks are being offered.
• Camlin Fine Sciences on Covid-19 impact: Expects elongation of its working capital cycle. Anticipating such a situation and with a view to effectively manage the cash flows, the company has taken cautionary measures by approaching its bankers for additional working capital of around Rs 30 crore. Company has also opted for a moratorium from all its working capital lenders as well as term lender viz. Exim Bank.
• Adani Power on Covid-19 impact: Some of the power plants are operating at lower plant load factor. The management believes that the demand will recover as the lockdown eases and industrial activity picks up. The availability of contractual manpower has been impacted. Group maintain sufficient inventory of fuel, consumable spares, and capital spares, to ensure that all plants keep operating reliably. Covid-19 has impacted and delayed the schedule of implementation and commissioning of 1600 MW ultra-supercritical coal-based thermal power project in the state of Jharkhand
• V-Guard Industries on Covid-19 impact: Sales loss during summer months has a significant impact on the overall financial results, due to seasonality of certain products. All warehouses have started functioning. The Wires factories at Chavadi and Kashipur reopened in the last week of May and are operating at about 30% capacity. The Company plans to reopen its other factories and branch offices progressively during June. Financials of fiscal 2021 will be impacted. The Company has not resorted to any layoffs or salary cuts. The cost-containment measures focus on avoiding discretionary spends and improving the effectiveness of spends. Does not foresee any incremental risk in terms of impairment of receivables, investments or assets.
• Tata Power has acquired 51% stake in TP Central Odisha Distribution for Rs 178.5 crore. Government of Odisha will hold the remaining stake in the venture. Company will manage power distribution in central Odisha from June 1.
• Adani Green Energy on Covid-19 impact: All solar and wind plants have been operational to full capacities during lockdown period. The electricity generated from all plants is being off-taken on a continuous basis in normal course and there have been no material curtailment, save as in some such issues Tamilnadu and Andhra Pradesh. There may also be increase in project costs. Company has been receiving the regular payments from the discoms and counterparties. No major overdueexist in the receivable from any counterparty barring TANGEDCO. Company expects appropriate relief of force majeure condition in the power purchase agreeements and supply chain at large.
• Max India received NCLT nod for scheme to merge its healthcare assets into Max Healthcare.
• NCC received four new orders for Rs.1136 crore in May.
• Eicher Motors said in a press release that by May-end, nearly two-third of the dealerships are open for business. These dealerships attained nearly the pre-COVID level of bookings towards the end of the month.
• NMDC sales of iron ore for May fell by 24% to 2.55 million tons, while production declined by 25% to 2.29 million tons.
• Coal India’s production for May fell by 11.3% at 41.43 million tons, while offtake declined by 23.3% at 39.35 million tons.
• Bajaj Finance allotted NCDs worth Rs 250 crore.
• Ircon International signed a Memorandum of Understanding with National Investment and Infrastructure Fund Limited and Ayana Renewable Power to explore and collaborate on opportunities in the solar energy sector.
• Bank of India on Covid-19 impact: Due to postponement of repayment of principle and interest from March 1 to Aug. 31, Bank’s recoveries may get affected in the second quarter of fiscal 2021 onwards. Due to this revenue and provisioning of the Bank may get affected for later quarters. Bank is having sufficient liquidity to honour its debts and other financial arrangements.
• Ratnamani Metals and Tubes received orders of Rs 57 crore for steel tubes.
• KEC International to consider repurchase of NCDs worth Rs 100 crore on June 4, which were issued in October, 2016.
• Lumax Auto Tech on Covid-19 impact: Company is witnessing increase in its inventory levels and corresponding creditors for which creditors are extending extended credit terms wherever possible. Supply chain is adversely affected due to global lockdown. The situation is getting improved due to lifting of lockdown and relaxations given by the government in lockdown 4.
• Welspun Enterprises: Board approved raising Rs 300 crore via equity and increasing share capital from Rs 180.05 crore to Rs 275 crore. Balkrishna Goenka re-appointed as Executive Chairman till June 2025. Post April 14, work has started on all projects. Company has written to authorities invoking Force Majeure which ensures interest of the company is protected under concession agreement.

May Auto Sales-Revival In Demand

• SML Isuzu sales down 99% at 16 units.
• Hero MotoCorp total sales down 83% at 112,682 units.
• Eicher Motors total sales down 69% at 19,113 units. VECV sales stood at 686 units.
• TVS Motor total sales down 81% at 58,906 units.
• Atul Auto total sales down 88% at 410 units.
• Ashok Leyland total sales down 89% at 1,420 units.

Resumption Of Operations

• Kajaria Ceramics
• Rama Steel Tubes
• Kirloskar Oil Engines

Other Earnings

V-Guard Industries Q4 (Standalone, YoY)

• Revenue down 27.5% at Rs 536.6 crore (Est Rs 725 crore )
• Net profit down 45.1% at Rs 32.5 crore (Est Rs 53 crore)
• Ebitda down 42.1% at Rs 45.2 crore (Est Rs 72 crore)
• Margins at 8.42% versus 10.5%
• Margins decrease due to higher other expenses and lower sales
• Electronic segment revenue down 27% at Rs 150.3 crore
• Electricals segment revenue down 32% at Rs 242.2 crore
• Consumer durables segment revenue down 20% at Rs 144.1 crore
• Lockdown led to revenue loss of Rs 250 crore in financial year 2020

Orient Electric Q4 (Standalone, YoY)

• Revenue down 11.7% at Rs 563.1 crore
• Net profit down 7.25% at Rs 35.8 crore
• Ebidta down 7.65% at Rs 65.2 crore
• Margins at 11.6% versus 11.1%
• Slight increase in margins due to lower other expenses
• ECD segment revenue down 4% at Rs 454.5 crore
• Lighting and Switchgear revenue down 33% at Rs 108.6 crore
• Lower borrowing costs were due to better utilisation of borrowed funds
• Effect of accounting change of leased assets impacted the higher depreciation cost
• No new tenders for street lighting came up in the quarter and pricing pressure remained for lighting segment.

Welspun Enterprises Q4 (Consolidated, YoY)

• Revenue down 35.1% at Rs 470.7 crore
• Net profit up 3 times at Rs 90.7 crore
• Ebidta down 27.5% at Rs 65.2 crore
• Margins at 13.9% versus 12.4%
• Deferred tax reversals and lower taxes aid profit numbers
• Gain of Rs 22.2 crore realized from associate and JV companies
• Other Income of Rs 30.9 crore in current quarter
• Revenue adversely affected due to delay in certain regulatory approvals, unseasonal rains and lockdown on account of Covid-19.

Earnings Today

• Britannia
• Granules India
• InterGlobe Aviation
• Motherson Sumi Systems
• Spandana Sphoorty Financial
• Sun Pharma Advanced Research

Bulk Deals

• SH Kelkar: Promoter Kedar Ramesh Vaze acquired 8.5 lakh shares (0.6%) at Rs 58.45 per share and HDFC MF sold 14.35 lakh shares (1.02%) at Rs 58.41 per share.
• IFB Industries: Plutus Wealth Management acquired 2.55 lakh shares (0.63%) at Rs 392.62 per share.
• NCC: Aditya Birla Sun Life Insurance acquired 40 lakh shares (0.66%) at Rs 25.92 per share.
• Supreme Petrochem: Promoter Supreme Petrochem acquired 5.34 lakh shares (0.55%) at Rs 161.65 per share.

Who’s Meeting Whom

• Mahindra Lifespace Developers to meet ICICI Prudential AMC on June 3
• Supreme Industries to meet Kotak, Enam AMC and other investors from June 2-3

Pledged Share Details

• Sadbhav Engineering promoter Shantaben Patel created pledge of 10 lakh shares on May 22
• Ajanta Pharma promoter Aayush Agrawal created pledge of 95,000 shares from May 27-28
• Zuari Global promoters released pledge of 4.95 lakh shares on May 26

(As Reported On June 1)

Trading Tweaks

• Price Band Revised From 10% to 5%: Federal-Mogul Goetze
• Move Into Short-Term ASM Framework: JBF Industries, Andhra Cements.
• Move Into ASM Framework: Nagarjuna Fertilizers and Chemicals, Gyscoal Alloys.

Insider Trading

• Apollo Tyres promoter PTL Enterprises acquired 5.45 lakh shares from May 28-29
• Aarti Drugs promoters sold 13,000 shares from May 26-28
• Mindtree promoter Subroto Bagchi sold 7,000 equity shares on May 29

(As Reported On June 1)

F&O Cues

• Nifty June futures closed at 9,791, discount of 35 points versus discount 86 points
• Nifty June futures open interest up 1%, adds 1 lakh shares in open interest
• Nifty Bank May futures closed at 19,894, discount of 64 points versus premium 200 points
• Nifty Bank May futures open interest down 4.3%, sheds 64,000 shares in open interest
• India VIX up 1.7% at 30.7
• Nifty Put Call Ratio at 1.53 versus 1.61 across all series

Nifty Weekly Expiry: June 4

• Max open interest on call side at 10,000 strike (19.9 lakh shares)
• Max open interest on put side at 9,000 strike (27.7 lakh shares)
• Active options: 10,000 Call (+6.2 lakh shares), 9,900 Call (+5.5 lakh shares)

Nifty Monthly Expiry: June 25

• Max open interest on call side at 10,000 strike (18.8 lakh shares)
• Max open interest on put side at 9,000 strike (25.9 lakh shares)