Stocks To Watch: Axis Bank, HPCL, JK Tyre, IPCA Labs, Lakshmi Vilas Bank, NMDC, Shoppers Stop, Shriram Transport Finance, Tata Motors
Employees walk past electronic boards displaying stock figures in the atrium of the National Stock Exchange of India Ltd. (NSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Axis Bank, HPCL, JK Tyre, IPCA Labs, Lakshmi Vilas Bank, NMDC, Shoppers Stop, Shriram Transport Finance, Tata Motors

Asian stocks rebounded from their biggest decline since March and U.S. futures climbed after the Federal Reserve -- again -- boosted investor sentiment in face of worries over a second wave of the coronavirus. Japanese, Australian and Korean shares opened up over 2%. Futures on the S&P 500 advanced after the index erased losses and closed higher Monday.

Here are the stocks to watch in trade today:

  • Tata Motors said that first quarter of financial year 2021 will be significantly weaker and the company has deferred or cancelled low margin investment. Jaguar Land Rover outlook remains uncertain but the company is seeing gradual recovery in terms of cash flows. JLR’s free cash flow for the quarter ending June for fiscal 2021 seen less than 2 billion pounds in negative. The management stated that JLR is beginning to see recovery in China vehicle sales. Actions are underway to significantly deleverage the Tata Motors Group with JLR to become sustainably cash positive from financial year 2022. Company has planned Rs 6,000 crore cost reduction plan. Company is planning a strategic partner for passenger vehicle business. Commercial vehicle to only improve from second half of the year. The green shoots have started to come with better Freight demands. Company has agreed to buy Jayem’s stake 50% stake in JTSV.
  • Axis Bank: Pralay Mondal has resigned from post of executive director (retail banking) with effect from September 14. Bank has initiated the succession planning process for the afore-mentioned post.
  • Shriram Transport Finance: Board approved raising Rs 1,500 crore via rights issue and Rs 2,500 crore via issue of specified securities.
  • Balkrishna Industires has temporarily shut down its manufacturing operation in Bhuj, due to an earthquake felt on June 14.
  • Mindtree appointed Vinit Teredesai as CFO of the company with effect from June 15.
  • IRB Infra Developers has allotted NCDs worth Rs 300 crore via private placement.
  • Kirloskar Ferrous on Covid-19 impact: Company was able to meet the demand for the months of May and June (till date) .Company has paid installments of term loans and interest thereon and all letter of credits have been honoured on due dates.
  • Chennai Petrochem: Aditya Birla Sun Life Mutual Fund decreased their stake from 5.07% to 3.07% on June 11.
  • Castrol on Covid-19 impact: Post partial relaxation in the lockdown, the company started witnessing demand pick up for products relating to two‐wheelers. Uncertainty has been seen in the momentum for the month of June.
  • Ind-Swift Laboratories to commercially launch its key API - Fexofenadine, an AntiHistamine Drug used for the treatment of seasonal allergic rhinitis and Urticaria in US market. Company has received the commercial orders and the supplies are beginning from the current quarter.
  • Narayana Hrudayalaya to seek shareholders nod to raise Rs 200 crore via NCDs.
  • Shoppers Stop on Covid-19 impact: As on date, 53 Department stores, 7 Home Stores, 61 Beauty Stores and 2 Arcelia Stores are operational. With gradual releasing of the lockdown in the country, company expects the footfall and sales to increase in the coming quarters.
  • V.S.T. Tillers and Tractors: Mahadevan GV resigned from the post of CFO with effect from June 15.
  • Chalet Hotels: Rajeev Navar resigned from the post of CFO and executive director with effect from September 14.
  • Jindal Steel & Power: Deepak Sogani resigned from the post of CFO with effect from June 30.
  • Lakshmi Vilas Bank has signed preliminary, non-binding letter of intent with Clix Group in relation to the proposed amalgamation of Clix Group with the Bank. Under the non-binding intent, the proposed amalgamation is subject to completion of mutual due-diligence in exclusive window of 45 days, and will be subject to regulatory and other customary approvals.

Nifty Earnings

Tata Motors Q4 (Consolidated, YoY)

  • Revenue down 27.7% at Rs 62,493 crore (Est Rs 61,353 crore)
  • Net loss at Rs 9,894.3 crore versus Net profit at Rs 1,117.5 crore (Est Net loss at Rs 1,466 crore)
  • Ebidta down 70.4% at Rs 2,373.4 crore (Est Rs 4,283 crore)
  • Margins at 3.8% vs 9.3% (Est 7%)
  • Provisions of impairment of passenger vehicle business, onerous contracts and subsidiaries stood at Rs 2,548.8 crore
  • Operationally below estimates, loss higher than expected
  • Exceptional loss of Rs 2800.65 crore impacted profits
  • Steep volume decline for Tata Motors, particularly MHCV, and resulting negative operating leverage impacted profitability and cash flows.
  • Volume declined by 47% in Q4FY20

JLR Q4 (Standalone, YoY)

  • Revenue down 24% at 5,426 million pounds
  • Loss before tax at 501 million pounds
  • Ebidta down 5% at 4.8 million pounds

Other Earnings

Shoppers Stop Q4 (Standalone, YoY)

  • Revenue down 10.4% at Rs 709.2 crore (Est Rs 703 crore)
  • Net loss at Rs 132.8 crore versus Net profit at Rs 11.4 crore (Est Net loss at Rs 75 crore)
  • Ebitda up 29.6% at Rs 76.6 crore (Est Rs 74.3 crore)
  • Margins at 10.8% versus 7.47%
  • Numbers impacted by adoption of IND AS-116
  • Like-to-like sales growth contracted to 16%

JK Tyre Q4 (Consolidated, YoY)

  • Revenue down 33.6% at Rs 1,794.8 crore
  • Net loss at Rs 47.2 crore versus Net profit at Rs 33.6 crore
  • Ebidta down 19.9% at Rs 207.5 crore
  • Margins at 11.6% versus 9.58%
  • Exceptional forex loss of Rs 61.1 crore
  • Deferred tax reversal of Rs 29 crore
  • Margins improve due to lower raw material input costs
  • India segment revenue down 32% at Rs 1,634.8 crore
  • Mexico segment revenue down 36% at Rs 199.5 crore

Bulk Deals

  • Aarti Industries: Smallcap World Fund sold 26 lakh shares (1.49%) at Rs 854.71 per share

Pledged Share Details

  • JSW Steel promoter Sahyog Holdings released pledge of 1.04 crore shares on June 15

(As Reported On June 15)

Who’s Meeting Whom

  • India Energy Exchange to meet M3 Investment and ASK Investments on June 16
  • Majesco to meet White Oak Capital Management on June 16
  • Great Eastern Shipping to meet ICICI Pru on June 16
  • Marico to meet Capital International on June 19
  • Gujarat Pipavav Port to meet DSP MF, Firth Investment Managers and other investors from June 16-25.

Trading Tweaks

  • Price Band Revised From 10% To 5%: Dynamatic Technologies, Signet Industries, Trigyn Technologies
  • Price Band Revised From 20% To 10%: Aurionpro Solutions, GPT Infra, ISMT
  • Move Into ASM Framework: Excel Realty & Infra, Vivimed Labs
  • Move Into Short-Term ASM Framework: Seshasayee Paper and Boards , Kilpest
  • Move Out Of Short-Term ASM Framework: Wendt, Sicagen, Aditya Birla Money, Jindal Worldwide, Onward Technologies, Wheels India.

Insider Trading

  • Cyient promoter Suchaaritha Bodanapu acquired 20,000 shares on June 12
  • Birlasoft promoters sold 2.54 lakh shares on June 9
  • SH Kelkar promoter Kedar Vaze acquired 3.2 lakh shares on June 12
  • Varun Beverages promoter Vivek Gupta sold 11,000 shares on June 12

(As Reported On June 15)

F&O Cues

  • Nifty June futures closed at 9814, discount of 0 points versus discount of 18 points
  • Nifty June futures open interest down 7.5%, sheds 8 lakh shares in open interest
  • Nifty Bank June futures closed at 19911, discount of 1 points discount of 30 points
  • Nifty Bank June futures open interest down 2.8%, sheds 50 k shares in open interest
  • India VIX up 5.7% at 32.5

Options

  • Nifty PCR at 1.34 versus 1.46 (across all series)

Nifty Weekly Expiry: June 18

  • Max open interest on call side at 10000 (22.8 lakh shares)
  • Max open interest on put side at 9500 (24.8 lakh shares)
  • Active options: 9700 Put (+3.3 lakh shares), 10000 Call (+6.9 lakh shares)

Nifty Monthly Expiry: June 25

  • Max open interest on call side at 10500 (22 lakh shares)
  • Max open interest on put side at 9000 (37.4 lakh shares)

Securities In Ban

  • New In Ban: None
  • In Ban: Adani Ent, BHEL, Idea, Just Dial
  • Out of Ban: PVR
Stocks To Watch: Axis Bank, HPCL, JK Tyre, IPCA Labs, Lakshmi Vilas Bank, NMDC, Shoppers Stop, Shriram Transport Finance, Tata Motors
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