Stocks To Watch: Axis Bank, Force Motors, ONGC, Raymond, Tata Steel, Vodafone Idea

Asian stocks opened higher Tuesday, set to round out their best quarter since 2009 in a rebound from a devastating start to the year, as optimism about a recovery overshadows concerns over an increase in U.S. coronavirus cases. Benchmarks rose more than 1% in Japan, Australia and South Korea.

Here are the stocks to watch in trade today:

• Axis Bank to consider raising funds on July 2. Board to explore the option of raising funds by issue of equity shares, depository receipts, convertible securities linked to equity shares including through qualified institutions placement etc. Board has approved the appointment of Suseel Kumar, managing director - Life Insurance Corporation of India, promoter of the Bank, as the additional non-executive (nominee) director of the Bank, with effect from July 1 till the date of ensuing annual general meeting of the Bank.
• Infosys has launched SAP-based personalized medicine solution for pharmaceutical companies.
• Minda Industries: Board approved raising Rs 250 crore via rights issue share and raising Rs 300 crore via NCDs.
• SBI Cards and Payments Service allotted NCDs worth Rs 400 crore on a private placement basis.
• Tata Power to consider raising funds on July 2.
• Bharti Airtel Arm Nxtra Data to raise $200 million from Carlyle Group. (Bloomberg News)
• Talbros Automotive Components has received aggregate orders worth Rs 234 crore including. These order span over a period of 5 years starting from second half of fiscal 2021 and expected to be completed by financial year 2026.
• Quess Corp: Board approved merger of 4 wholly-owned arms with company.
• Parag Milk: Venkat Shankar resigned from post of CEO with immediate effect
• CG Power and Industrial Solutions on Covid 19 impact: Significant impact seen in April and May. Consequent to the above and non-availability of requisite level of working capital for the operations, the cash flows may remain affected due to low sales and it may be challenging to meet operating costs. Company is putting all efforts to scale up its operations to 50% capacity utilization and then move on to attain at least the breakeven point.
• IRB Infra Developers allotted NCDs worth Rs 200 crore on a private placement basis.
• Sical Logistics defaulted in payment of NCDs interest worth Rs 5.5 crore which was due on June 29, due prevailing COVID-19 pandemic and insufficient cashflows.
• CreditAccess Grameen allotted NCDs worth Rs 145 crore on a private placement basis and completed direct assignment of Rs 222.5 crore and during the current fiscal company has raised Rs 989.5 crore in the form of term loan /facilities under special liquidity scheme of RBI.

Nifty Earnings

Tata Steel Q4 (Consolidated, YoY)

• Revenue down 20.4% at Rs 33,770 crore (Est Rs 33,774.2 crore)
• Net loss at Rs 1,095.7 crore versus Net profit at Rs 2,430.9 crore (Est Rs 90.8 crore)
• Ebidta down 38.2% at Rs 4,646.9 crore (Est Rs 4,321.3 crore)
• Margins at 13.7% versus 17.7% (Est 12.8%)
• Reported net losses wider than expected
• Net loss includes exceptional items of Rs 3,405.8 crore for the current quarter
• The exceptional items includes provision for impairment of non-current assets of Rs 3,141 crore
• Better than estimated operational performance

Tata Steel Q4 (Standalone, YoY)

• Revenue down 25.7% at Rs 14,211.43 crore (Est Rs 14,188.7 crore)
• Net loss at Rs 436.83 crore versus Net profit at Rs 2,491.1 crore (Est Net profit at Rs 1,556.9 crore)
• Ebitda down 26.2% at Rs 3,648.7 crore (Est Rs 3,547.8 crore)
• Margins at 25.6% versus 25.8% (Est 25%)
• Numbers in line with expectations

Other Earnings

Raymond Q4 (Consolidated, YoY)

• Revenue down 29.3% at Rs 1,278.7 crore
• Net loss at Rs 68.3 crore versus Net profit at Rs 67.5 crore
• Ebidta loss at Rs 6.7 crore vs Ebidta gain at Rs 167 crore
• Inventory gain of Rs 180 crore in current quarter and tax adjustments impacted bottom line
• Barring real estate, all segments saw a degrowth in revenue
• Topline and profitability impacted due to Covid-19 and channel stock correction in Branded Apparel segment
• Overall topline impact of Rs. 414 crore and Ebidta impact of Rs 134 crore due to Covid 19

Force Motors Q4 (Consolidated, YoY)

• Revenue down 38.4% at Rs 653.8 crore
• Net profit down 83.4% at Rs 6.1 crore
• Ebidta up 1.5% at Rs 74.1 crore
• Margins at 11.3% versus 6.88%
• Exceptional loss of Rs 19.5 crore in current quarter
• Other income of Rs 29.2 crore in base quarter
• Margins improve due to lower raw material costs and employee expenses

Nocil Q4 (Consolidated, YoY)

• Revenue down 12% at Rs 212.7 crore
• Net profit down 39.5% at Rs 21.9 crore
• Ebidta down 38.8% at Rs 36.7 crore
• Margins at 17.3% versus 24.8%
• Higher raw material costs impact margins

Bharat Dynamics Q4 (Consolidated, YoY)

• Revenue up 63.7% at Rs 1435.4 crore
• Net profit up 2.5 times at Rs 309.7 crore
• Ebidta up 2.4 times at Rs 404.8 crore
• Margins at 28.2% versus 13.7%

Bulk Deals

• Astron Paper And Board: Promoter Kiritbhai Patel acquired 10 lakh shares (2.15%) at Rs 41 per share
• Laurus Labs: Bluewater Investment sold 1.25 crore shares (11.68%) at Rs 506. 07 per share, BNP Paribas acquired 15 lakh shares (1.4%) at Rs 504.25 per share , Government Pension Fund Global acquired 9.41 lakh shares (0.88%) at Rs 504 per share and MK Ventures acquired 7.58 lakh shares (0.71%) at Rs 504.89 per share. MK Ventures is promoted by Madhusudan Kela.
• Wheels India: Promoters sold 23 lakh shares (9.56%) at Rs 427.6 per share, IDFC MF acquired 2.34 lakh shares (0.97%), HDFC MF acquired 9.91 lakh shares (4.12%), India Motors Parts and Accessories acquired 5.14 lakh shares (2.14%) and Royal Sundaram Alliance Insurance acquired 5.61 lakh shares (2.33%), at Rs 427.6 per share, respectively.

Pledged Share Details

• Manappuram Finance promoter V Nandakumar released pledge of 15 lakh shares on June 29
• Jindal Stainless promoter Hexa Securities created pledge of 49.27 lakh shares on June 29
• DB Corp promoter released pledge of 21 lakh shares from June 24 -26
• JSW Steel promoter JTPM Metal Traders created pledge of 16 lakh shares on June 24
• JSW Stainless promoters created pledge of 7 crore shares on June 24

(As Reported On June 29)

Who’s Meeting Whom

• Endurance Tech to meet Paragon Partners on June 30
• Bharat Forge to meet Nippon India MF, UTI MF and other investors on June 30
• Tata Consumer Products to meet USS Investment Management on July 1
• Cipla to meet SBI Life Insurance on June 30

Trading Tweaks

• Price Band Revised From 10% To 5%: Elgi Rubber, Tilaknagar Industries.
• Move Into ASM Framework: Transformers And Rectifiers, Alok Industries, Adhunik Industries, Jindal Photo.
• Move Into Short-Term ASM Framework: Future Supply Chain Solutions, Future Retail, Future Enterprises, Hilton Metal Forging, Kilpest.
• Move Out Of Short-Term ASM Framework: Globus Spirits, Elecon Engineering, Diamines and Chemicals.

Insider Trades

• Great Eastern Shipping promoters acquired 8 lakh shares from June 25-26
• Jamna Auto promoter Map Auto acquired 4.79 lakh shares from June 25-26
• Quess Corp promoter Ajit Isaac acquired 1.11 lakh shares on June 26
• Varun Beverages promoters sold 26 lakh shares on June 26

(As Reported On June 29)

F&O Cues

• Nifty July futures closed at 10,256, discount of 57 points versus discount of 65 points
• Nifty July futures open interest down 1.8%, sheds 2.1 lakh shares in open interest
• Nifty Bank July futures closed at 21,235, discount of 124 points versus discount of 130 points
• Nifty Bank July futures open interest down 2.5%, sheds 30,000 shares in open interest
• Nifty Put Call Ratio at 1.30 versus 1.33 across all series

Nifty Monthly Expiry: July 2

• Max open interest on call side at 10,500 strike (26.4 lakh shares)
• Max open interest on put side at 10,000 strike (23.9 lakh shares)
• Active options: 10,100 Put (+10.2 lakh shares), 10,300 Call (+5.4 lakh shares)

Nifty Monthly Expiry: July 30

• Max open interest on call side at 11,500 (19.8 lakh shares)
• Max open interest on put side at 10,000 (20.6 lakh shares)