Stocks To Watch: Ashok Leyland, Coal India, Glenmark Pharma, Hindalco Industries, IDBI Bank, IndusInd Bank, Reliance Naval, SBI

Asian stocks opened in mixed fashion Wednesday as investors weighed the spreading coronavirus against expectations for policy support.

Australia’s shares ticked up after earnings from the country’s biggest bank and the nation’s bond yields advanced. Japanese stocks swung in early trading, reopening after a holiday. South Korea’s equities climbed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.18 percent to 12,149 as of 6:45 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

• IndusInd Bank: Moody’s changed its outlook on IndusInd Bank to ‘Negative’ from ‘Stable’ to account for the risk of further asset quality deterioration. The rating agency affirmed the bank’s domestic and foreign currency ratings at Baa3/P3. The affirmation of the rating was driven by the bank's strong buffers, both capital and profitability, which resulted in a strong ability to absorb asset quality stress.
• Sun Pharma Advanced Research received a complete response letter from U.S. FDA for the new drug application for Taclantis.
• Glenmark Pharma to consider raising funds via debt on Feb. 14.
• Mercator: SBI and ICICI Bank have filed proceedings against the company under the Insolvency Act to recover the dues.
• NHPC raised Rs 1,500 crore via a private placement of bonds.
• IIFL Wealth Management said that consideration of for distribution business transfer stood at Rs 419 crore and PMS Business Transfer stood at Rs 11 crore. In November last year, the board had approved the transfer of distribution business to company’s arm IIFL Wealth Finance and transfer of portfolio management services business to company’s subsidiary IIFL Alternate Asset Advisors.
• Neuland Laboratories: Amit Agarwal to resign from the post of Chief Financial Officer with effect from March 6.
• Vikas Proppant & Granite received Pollution Control Board’s nod to operate mines for mining granite in Jodhpur. The company said all statutory requirements and necessary formalities have been completed by all the Government departments and the company can start mining operations.
• Reliance Naval & Engineering received a show-cause notice from the Ministry of Defense, for termination of contract relating to 5 Naval Offshore Patrol Vessels . The company said in a media statement that it shall take all the necessary steps and actions to protect its rights including the arbitrary invocation of Bank Guarantees relating to the subject contract.
• Spencer’s Retail: Board approved to issue equity shares up to Rs 80 crore on a rights basis to its shareholders.
• Lumax Auto Technologies approved servicing the notice to Gill-Austem LLC (JV Partner) for termination of Joint Venture Agreement due to non-performance of the obligation by the JV Partner even after the expiry of the cure period in terms of the agreement.
• CRISIL reappointed Ashu Suyash as Managing Director and Chief Executive Officer till June 2025.
• NRB Bearings: Tanushree Bagrodia resigned from the post of CFO with effect from Feb. 17.

Earnings Reaction To Watch

Coal India (Q3, YoY)

• Revenue fell 7.4 percent to Rs 2,3190.5 crore
• Net profit fell 14.1 percent to Rs 3,923.9 crore
• Ebitda fell 26.8 percent to Rs 4,968.5 crore
• Margin stood at 21.4 percent versus 27.1 percent
• FSA volume fell 6 percent to 127.69 million tonnes
• E-auction volume fell 33 percent to 9.84 million tonnes

Ircon International (Q3, YoY)

• Revenue fell 3.3 percent to Rs 1,211 crore
• Net profit rose 52.5 percent to Rs 142.4 crore
• Ebitda rose 13.2 percent to Rs 153.7 crore
• Margin stood at 12.7 percent versus 10.8 percent
• Margin improved due to lower raw material costs

Hindalco: Novelis (Q3, YoY)

• Net sales fell 10 percent to $2.7 billion
• Net Income rose 37 percent to $107 million
• Adjusted Ebitda rose 7 percent to $343 million
• Shipments growth stayed flat at 797 kilo tonnes

IDBI Bank (Q3, YoY)

• Net interest income rose 12.9 percent to Rs 1,532.3 crore
• Net loss stood at Rs 5,763 crore
• Provision at Rs 440 crore vs Rs 5,074.8 crore
• GNPA at 28.72 percent versus 29.43 percent (QoQ)
• NNPA at 5.25 percent versus 5.97 percent (QoQ)

Aster DM Healthcare (Q3, YoY)

• Revenue rose 8 percent to Rs 2,321.7 crore
• Net profit rose 38.7 percent to Rs 139.1 crore
• Ebitda rose 46.4 percent to Rs 385.2 crore
• Margin stood at 16.6 percent versus 12.2 percent
• Hospital segment revenue rose 16 percent to Rs 1,210.3 crore

Hexaware Technologies (Q4, QoQ)

• $ Revenue rose 1.8 percent to $ 214.3 million
• Revenue rose 3.2 percent to Rs 1,528.8 crore
• Net profit fell 8.5 percent to Rs 168 crore
• Ebitda was flat at Rs 204.4 crore versus Rs 205.3 crore
• Margin stood at 13.4 percent versus 13.9 percent

Cochin Shipyard (Q3, YoY)

• Revenue rose 25 percent to Rs 896.1 crore
• Net profit rose 32.4 percent to Rs 169.8 crore
• Ebitda rose 25.4 percent to Rs 197.7 crore
• Margin stood at 22.1 percent versus 22 percent
• Ship building segment revenue rose 35 percent to Rs 747.4 crore
• Ship repair segment revenue fell 10 percent to Rs 148.7 crore

Bharat Heavy Electricals (Q3, YoY)

• Revenue fell 22.6 percent to Rs 5,680.8 crore
• Net profit fell 17.2 percent to Rs 162.7 crore
• Ebitda rose 49.4 percent to Rs 326.7 crore
• Margin stood at 5.8 percent versus 3 percent
• Power segment revenue fell 26 percent to Rs 4,072.7 crore
• Industry segment revenue fell 14 percent to Rs 1,386.5 crore
• Margin improved due to lower other expenses

HEG (Q3, YoY)

• Revenue fell 78.9 percent to Rs 393.7 crore
• Net loss at Rs 1.2 crore versus net profit at Rs 865.5 crore
• Ebitda fell 99.6 percent to Rs 4.7 crore
• Margin stood at 1.2 percent versus 70.4 percent
• Declared dividend of Rs 25 per share

Astral Poly Technik (Q3, YoY)

• Revenue rose 5.4 percent to Rs 664.1 crore
• Net profit rose 30.1 percent at Rs 67.5 crore
• Ebitda rose 18.1 percent to Rs 118.5 crore
• Margin stood at 17.8 percent versus 15.9 percent
• Plastic segment revenue rose 7 percent to Rs 505.7 crore
• Adhesive segment revenue rose 1 percent to Rs 158.4 crore
• Pipe business sales rose 15 percent to 3,2053 million tonnes

Novartis India (Q3, YoY)

• Revenue fell 13.3 percent to Rs 117.5 crore
• Net profit fell 40.3 percent to Rs 7.7 crore
• EBITDA fell 32.6 percent to Rs 9.1 crore
• Margin stood at 7.7 percent versus 10 percent

CESC (Q3, YoY)

• Revenue fell 3.5 percent to Rs 1,648 crore
• Net profit rose 1.7 percent to Rs 176 crore
• Ebitda rose 37.1 percent to Rs 277 crore
• Margin stood at 16.8 percent

Nifty Earnings To Watch

• Hindalco Industries

Other Earnings To Watch

• Indian Railway Catering And Tourism Corporation
• Ashok Leyland
• ABB India
• Aarti Industries
• Info Edge (India)
• IPCA Laboratories
• Natco Pharma
• Torrent Power
• PI Industries
• Welspun India
• Rail Vikas Nigam
• Dish TV India.

Bulk Deals

• HSIL: Promoter Paco Exports acquired 4.54 lakh shares (0.63 percent) at Rs 53.31 each
• Greenpanel Industries: HDFC MF sold 11 lakh shares (0.9 percent) at Rs 55.01 each
• Just Dial: New York State Common Retirement Fund sold 3.55 lakh shares (0.55 percent) at Rs 506.84 each
• Tejas Networks: Russell Investment Company Emerging Markets Fund sold 5 lakh shares (0.54 percent) at Rs 77.17 each
• Parag Milk Foods: Religare Invesco AMC sold 12.64 lakh shares (1.5 percent) at Rs 101 each

Trading Tweaks

• Alphageo, Apollo Pipes, Shankara Building Products, TD Power Systems, Everest Organics, Gujarat Themis Biosyn to move into short term ASM Framework
• GSS Infotech, Shreyas Shipping & Logistics, Premier Synthetics to move out of short term ASM Framework
• Ruchi Soya Industries, GTL, Lakshmi Vilas Bank price band revised to 5 percent

Who’s Meeting Whom

• UPL to meet Edelweiss Securities and IIFL Securities from Feb. 12-13
• Tata Motors to meet Essel MF, HSBC AMC and other investors on Feb. 13
• Majesco to meet Way2Wealth on Feb. 12
• Tata Steel to meet Edelweiss Securities on Feb. 19
• Eicher Motors to meet Amansa Capital on Feb. 14
• ITC to meet UBS Securities, Kotak Institutional Equities and Antique Stock Broking from Feb. 12-18

Money Market Update

• The rupee ended marginally stronger at Rs 71.28 on Tuesday against the dollar versus Rs 71.29 against the dollar on Monday.

F&O Cues

Index Futures

• Nifty February futures closed at 12,126.5, a premium of 18.9 points.
• Nifty February futures open interest down 3.2 percent, sheds 4.5 lakh shares in open interest.
• Nifty Bank February futures closed at 31,383.3, premium 82.7 points.
• Nifty Bank futures open interest up 8.7 percent, adds 96,500 shares in open interest.

Nifty Weekly Expiry: Feb 13

• Max open interest on call side at 12,200 (26.5 lakh shares)
• Max open interest on put side at 12,000 (25.3 lakh shares)
• Open interest addition seen at 12,100P (+10 lakh shares), 12,300C (+7.3 lakh shares), 12,000P (+3.8 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,500 (27.5 lakh shares)
• Max open interest on put side at 12,000 (34.2 lakh shares)

Securities In Ban

• In Ban: Yes Bank