Stocks To Watch: Aurobindo Pharma, DHFL, Minda Industries, Tata Motors, Titan

Asian stocks dropped Wednesday after a slump on Wall Street spurred by escalating U.S.-China trade tensions, though declines were more modest than in the U.S.

Japan’s benchmark Topix in early trading was down by about half the 1.6 percent drop in the S&P 500 Index overnight, continuing the pattern of outperformance seen last month. U.S. futures were little changed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.18 percent to 11,117.50 as of 6:55 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.

• Aurobindo Pharma clarified that none of the observations that were issued by the U.S. FDA were related to data integrity and the drugmaker said it is confident of addressing them within the stipulated timeline.
• Tata Motors: Jaguar September sales were down 15.2 percent year-on-year to 16,235 units. Land Rover September sales rose 6.9 percent on a yearly basis to 40,597 units. Second quarter Jaguar Land Rover sales fell 0.7 percent year-on-year to 1.28 lakh units. And China sales continued to recover in the September quarter.
• Titan Company said sales growth of its mainstay jewellery business remained muted in the quarter ended September as rising gold prices deterred buyers. Jewellery sales fell sharply in July but rose 15 percent year-on-year between August and September, the Tata Group company, which owns the Tanishq brand, informed the exchanges. Retail sales, therefore, grew 7 percent for the quarter ended September, it said.
• Talwalkars Health defaults on payment of Rs 2.38 crore interest. Total amount of borrowing is Rs 463.15 crore and the lender to co. is Lakshmi Vilas Bank.
• PI Industries launched a new product under Herbicide segment to control pest of Wheat crop. New product will cater only to the domestic market.
• DCM said Board of Directors of the company to consider various options for restructuring of engineering business/ securing strategic/ financial partner on Oct. 21.
• TCS tied up with Pandora for digital transformation project.
• Gujarat Gas: CARE Ratings reaffirmed its credit rating on long and short term bank facilities worth Rs 2,000 crore at ‘AA’ with positive outlook.
• DHFL to consider June quarter results on Oct. 17.
• Mahindra Lifespace: Launched new residential project in Andheri East.
• NCL Industries: Cement production during September quarter fell 24 percent on a yearly basis for to 3,71,636 million tonne. Cement dispatches declined 25 percent year-on-year to 3,67,956 million tonnes during the period.
• Jammu & Kashmir Bank: The Reserve Bank of India appointed RK Chhibber as the Chairman and Managing Director of the Bank with effect from Oct. 10 for a period of six months. Chhibber is currently Interim Chairman and Managing Director.
• India Infrastructure Trust: Will distribute Rs 6.7 to unit holders. Record date fixed on Oct. 16.
• Prime Focus sold its VFX business division to subsidiary – DNEG Creative Services – for Rs 270 crore. The sale was done to consolidate the VFX business under one company.
• Minda Industries: The company is set to acquire 100 percent stake of Delvis Group which is engaged in automotive lighting design and engineering for €21 million (Rs 164 crore). Transaction is subject to appropriate regulatory approvals and is expected to complete in two months.
• Indiabulls Real Estate and Indiabulls Ventures to consider buyback of equity shares on Oct. 11.

Earnings To Watch

• Goa Carbon

Who’s Meeting Whom

• Eicher motors to meet DCNA finance on Oct. 9.
• Mahindra Logistics to meet Axis MF and Motilal Oswal AMC on Oct. 9.
• Acrysil to meet investors on Oct. 9.

Pledge Share Details

• Promoter pledged additional 22.7 lakh shares on Oct. 3 and 4.

F&O Cues

Futures

• Nifty October futures closed at 11162, premium of 35.6 points versus 40.4 points.
• Nifty October futures up 0.3 percent, adds 44,600 shares in open interest
• Nifty Bank futures closed at 27,871.5, premium of 104 points versus 121.9 points
• Nifty Bank October futures open interest down 12 percent, sheds 2 lakh shares in open interest.

Options

• Nifty PCR at 0.95 versus 0.97 (across all series).

Nifty Monthly Expiry: Oct. 10

• Max open interest on call side at 11,500 (23 lakh shares).
• Max open interest on put side at 11,000 (13.2 lakh shares).
• open interest addition seen at 11,200C (+10.9 lakh shares), 11,250C (4.9 lakh shares), 11,100C (+4.6 lakh shares).

Nifty Monthly Expiry: Oct. 31

• Max open interest on call side at 12,000 (25.5 lakh shares).
• Max open interest on put side at 11,000 (27.4 lakh shares).

Brokerage Radar

On Titan

Macquarie

• Maintained ‘Neutral’ with a price target of Rs 1,078.
• September quarter review: moderate quarter for jewellery.
• Expect margin expansion due to higher retail gold prices.
• Expect hedging losses due to high gold price movement.

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 1,370.
• Subdued September quarter sales update.
• Sequential improvement noted due to promotions.
• All eyes on festive offtake.

Citi

• Downgraded to ‘Neutral’ from ‘Buy’; hiked price target to Rs 1,370 from Rs 1,175.
• September quarter updates inline with expectations; do not see any impact on margins.
• Stock valuations and challenging environment cap upside.
• Medium-term upside appear priced-in and hence downgrade.

HSBC

• Maintained ‘Buy’; cut price target to Rs 1,410 from Rs 1,450.
• September quarter’s operating statement suggests retail jewellery sales grew 15 percent in August-September.
• Titan can weather demand weakness with its offers and deliver stronger growth in the second half.
• Remains long-term structural winner and valuation remains appealing.

More Calls

JPMorgan on Aurobindo Pharma

• Maintained ‘Overweight’ with a price target of Rs 875.
• Buying opportunity for upside from Sandoz deal, ex U.S.-growth and ex-oral U.S. pipeline.
• Unit VII is important but not the only OSD facility for Aurobindo.
• Current stock price barely factoring in the current earnings run rate.

Nomura on Container Corp

• Maintained ‘Buy’; hiked price target to Rs 670 from Rs 652.
• Incentive-linked correction looks overdone.
• Expect Rs 14/share impact due to disallowance of SEIS income.
• Stock attractive due to potential premium by strategic buyer and WDFC linked gains.