Stocks To Watch: Asian Paints, Bank Of Baroda, Berger Paints, GAIL, India Cements, IOC, Sical Logistics, Union Bank

Asian stocks drifted at the open on Wednesday, while U.S. futures were flat and the dollar slipped as investors monitor a continuing acceleration in coronavirus cases across the American sun belt. Japan’s Topix opened lower, while Korean shares advanced and Australian ones saw a modest rise.

Here are the stocks to watch in trade today:

• Banks led by JPMorgan Chase & Co. are in advanced talks for a loan of as much as $2.5 billion to finance a proposed delisting of Vedanta. The syndicate may include Barclays, Citigroup, Deutsche Bank AG and Credit Suisse Group AG, and an informal agreement may be reached as early as next week. The funding largely relies on tapping dividends from Vedanta’s cash rich zinc mining unit Hindustan Zinc (Bloomberg News)
• Blackstone Sponsor Group to sell 5.59 crore units (7.2% stake) of Embassy Office Parks REIT via secondary placement of units, aggregating to Rs 1,901.5-1,957.5 crore. Selling price ranges from Rs 340-350 per unit, which is at a discount of 6.5% - 3.7% discount to the close price as on June 23.Holding for Blackstone Sponsor Group in Embassy Office Parks REIT to come down from 55.3% to 48.1%.Trade date for the offer is June 24 and settlement is on June 26.
• Adani Power has entered into agreement to acquire 49% stake in Odisha Power Generation from AES group for $135 million. Balance 51% stake will remain with Odisha government. Odisha Power Generation operates at 1,740 mega-watt thermal pant.
• Balrampur Chinni Mills: Board approved buyback of 1 crore shares (4.55% equity) at Rs 180 per share aggregating to Rs 180 crore. July 3 is record date for buyback. Buyback price is at a premium of 33% to the closing price as on June 23.
• CARE Ratings: Bajaj Holdings and Investment and Bajaj Life Insurance increased their stake from 4.84% to 5.47% from May 1-June 17.
• Shriram Transport Finance: CARE Ratings has reaffirmed its ratings in respect of non-convertible debentures, subordinated debentures and commercial papers issued by the company and revised its outlook of the instruments issued by the company to 'negative' from 'stable'. The revision in the outlook is on account of adverse impact on commercial vehicle business and challenges in maintaining the normal levels of collections in the near term on account of slowdown in economic activity due to extended lockdown imposed by the government and its after effects resulting in impact on the asset quality parameters.
• Wipro awarded strategic, multi-year infrastructure modernization and digital transformation services engagement by Germany-based energy company E.ON.
• Vardhman Textiles March quarter business update: Yarn sales down 2% at 53,155 metric tons, Grey fabric sales down 4% at 487 lakh meters and processed fabric sales declined by 9% at 325 lakh meters.
• Piramal Enterprises: Board approved issuance of NCDs worth Rs 2,590 crore.
• JMC Projects has secured new orders of Rs 938 crore. This includes water supply projects in Uttar Pradesh totalling Rs 841 crore and building project in south India totalling Rs 97 crore.
• Bharat Road Networks said that it will not will not extend the share purchase agreement for its stake sale in Ghaziabad Aligarh Expressway with Cube Highways.
• CG Power and Industrial Solutions: Aditya Birla Sun Life Mutual Fund decreased stake from 5.46% to 3.45% on June 19.
• Greenply Industries on Covid-19 impact: Gujarat and Nagaland operations were suspended till first week of May, while West Bengal facility was suspended till June 7. Despatches could not take place in March and April which were deferred to May. All operations at all plants have now begun, albeit at 50-70% capacity utilizations and Gabon operations resumed with lower capacity utilization and thereafter have been increased in a phased manner.
• Sudarshan Chemical to issue a corporate guarantee amounting to Rs 60 crore to Bank of Maharashtra, for securing capital facilities to wholly owned arm. Corporate guarantee in lieu of existing guarantee of Rs 100 crore.
• Equitas Holdings: DSP Group increased stake from 6.9% to 7.14% on June 19
• Yes Bank said that it has sold 2.84% stake in in Sical Logistics in various tranches. Bank’s stake has been reduced from 5.49% to 2.65%.

Nifty Earnings

Asian Paints Q4 (Consolidated, YoY)

• Revenue down 7.1% at Rs 4,635.6 crore (Est Rs 4,812 crore)
• Net profit down 2.1% at Rs 461.9 crore (Est Rs 512 crore)
• Ebidta down 3% at Rs 859.7 crore (Est Rs 884 crore)
• Margins at 18.5% versus 17.8% (18.4%)
• Raw material cost as % of sales down 140 basis points to 52.1%
• Gross Margins expand by 400 basis points to 45.8% versus 41.7% aided by lower input cost and higher inventory gains.
• Weak topline and higher other expenses hurt net profit.

Other Earnings

Berger Paints Q4 (Consolidated, YoY)

• Revenue down 8% at Rs 1,354.8 crore
• Net profit down 6.41% at Rs 103.7 crore
• Ebidta down 7.62% at Rs 208.4 crore
• Margins at 15.4% versus 15.3%

Union Bank of India Q4 (Consolidated, YoY)

• Net Interest Income up 10.6% at Rs 2,878.1 crore
• Net loss at Rs 2,713 crore versus Net loss at Rs 3,331.5 crore
• Provisions at Rs 3,501.7 crore versus Rs 5,766.2 crore
• GNPA at 14.15% versus 14.98% QoQ
• NNPA at 5.49% versus 6.85% QoQ
• Exceptional harmonizaton provision of Rs 2,510 crore due to amalgamation of Andhra Bank and Corporation Bank with self.

Bank of Baroda Q4 (Standalone, YoY)

• Net interest income up 40% at Rs 6,798 crore (Est Rs 7,214 crore)
• Net profit at Rs 506 crore versus Net loss at Rs 991.4 crore (Est Net loss at Rs 161 crore)
• Provisions at Rs 6,844 crore versus Rs 5,399 cr
• GNPA at 9.4% vs 10.43% QoQ
• NNPA at 3.13% vs 4.05% QoQ
• Reported Rs 2,230 crore worth tax write back in current quarter
• Fresh slippages at Rs 3,050 crore versus over Rs 10,000 crore
• Loans worth Rs 4,053.23 crore have not been classified as NPA owing to standstill on asset classification, provided 20% against loans under standstill
• Approximately 65% of loan book continues to be under moratorium
• Moratorium portfolio to come down to 35% by August

Earnings Today

• GAIL
• IOC
• United Breweries
• Power Finance Corporation
• Prestige Estates Projects
• Sobha
• Future Consumer
• India Cements
• General Insurance Corporation of India
• Asahi India Glass
• Asian Granito India
• Astra Microwave Products
• Balmer Lawrie
• Canara Bank
• Hindustan Media Ventures
• India Glycols
• Indo Rama Synthetics
• Indoco Remedies
• Monte Carlo Fashions
• PNC Infratech
• Rail Vikas Nigam
• Sanghi Industries
• Shriram EPC
• Tide Water Oil
• IG Petrochem
• HG Infra Engineering
• Sharda Cropchem
• Karur Vyasa Bank

Bulk Deals

• Mahindra CIE Automotive: Promoter Participaciones Internacionales Autometal acquired 52.32 lakh shares (1.38%) at Rs 120.01 per share and Sundaram Mutual Fund sold 43 lakh shares (1.13%) at Rs 120 per share.
• Strides Pharma Science: Promoter Lifecell International sold 9.6 lakh shares (1.07%) at Rs 450.08 per share.

Pledged Share Details

• Adani Green Energy promoter Adani Trading Services released pledge of 1.51 crore shares on June 19
• JSW Energy promoter Danta Enterprises revoked pledge of 15 lakh shares on June 19
• Coffee Day Enterprises promoters invoked pledge of 20 lakh shares from April 21-May 5

(As Reported On June 23)

Who’s Meeting Whom

• Mahindra & Mahindra to meet First State Investments, Eastspring Investments and other investors from June 24-26
• Greenlam Industries to meet Equirius Securities on June 25
• CARE Ratings to meet Franklin Templeton on June 25
• Manappuram Finance to meet Kriis Portfolio on June 24
• Cipla to meet HSBC AMC, Premji Invest and other investors on June 24
• Balaji Amines to meet Equirius Securities on June 25
• Pidilite Industries to meet Axis MF, Genesis Investment UK and other investors from June 25-29

Trading Tweaks

• Price Band Revised From 10% To 5%: Greenpanel Industries, Jay Bharat Maruti, Magadh Sugar & Energy, Sical Logistics, Websol Energy System.
• Price Band Revised From 20% To 10%: Kirloskar Industries, NACL Industries, Nitin Spinners, Skipper.
• Move Into ASM Framework: Saregama India, Hathway Cable & Datacom, Premier Explosives, Uttam Galva Steels, RSWM, Sicagen India, Jayshree Tea & Industries, ADF Foods.
• Move Into Short-Term ASM Framework: Suven Pharmaceuticals, Sterling Tools, Quess Corp, Reliance Infra.
• Move Out Of Short-Term ASM Framework: Seshasayee Paper and Boards, Kilpest

Insider Trades

• Aarti Industries promoters sold 35,000 shares on June 22
• Tourism Finance Corporation of India promoter Koppara Thomas acquired 12 lakh shares from June 19-23
• Bajaj Auto promoter Deepa Bajaj acquired 40,000 shares from June 17-19
• Dr Lal Pathlabs promoter Dr. Archana Erdmann sold 1.14 lakh shares on June 19
• Quess Corp promoter Ajit Isaac acquired 15,000 shares on June 22

(As Reported On June 23)

F&O Cues

• Nifty June futures closed at 10,468, discount of 4 points versus discount of 9 points
• Nifty June futures open interest down 9.7%, sheds 8 lakh shares in open interest
• Nifty Rollovers at 39%
• Nifty Bank June futures closed at 22,292, discount of 35 points versus discount of 11 points
• Nifty Bank June futures open interest down 20%, sheds 3.2 lakh shares in open interest
• Nifty Bank rollovers at 29%
• India VIX down 3.7% at 29.3
• Nifty Put Call Ratio at 1.63 versus 1.53 across all series

Nifty Monthly Expiry: June 25

• Max open interest on call side at 10,500 strike (36.2 lakh shares)
• Max open interest on put side at 10,000 strike (46.4 lakh shares)
• Active options: 10,400 Put (+17.4 lakh shares), 10,700 Call (+2.2 lakh shares)