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Stocks To Watch: Bajaj Auto, Bajaj Finance, Cipla, Dr. Reddy’s, Piramal Enterprises, SpiceJet, Tata Power, UltraTech Cement

Here are the stocks to watch in trade today.

Statues of a bear and a bull sit on a windowsill at a stock exchange. (Photographer: Alex Kraus/Bloomberg)
Statues of a bear and a bull sit on a windowsill at a stock exchange. (Photographer: Alex Kraus/Bloomberg)

Stocks in Asia were mixed early Wednesday as reports on Moderna Inc.’s coronavirus vaccine added to concern that a successful way to beat the pandemic remains a long way off. Treasuries held an overnight advance. Japanese shares fluctuated at the open, while equities in South Korea and Australia dipped.

Here are the stocks to watch in trade today:

  • Cipla has filed ANDA for generic version of GSK’s Advair Diskus (Bloomberg News)
  • Piramal Enterprises: Boston-based private equity firm TA Associates is in discussions to buy about a 20 percent stake in Piramal Pharma, for as much as $500 million. Piramal Group aims to reach an agreement as soon as June. (Bloomberg News)
  • SpiceJet has clarified that it has been been maintaining adequate cash flows to cover the reduced cost of operations. Company said that lessor payments, which form the bulk of fixed costs, have been mutually deferred and waived as there has been no economic value derived by the airline. SpiceJet stated in a press release that India’s aviation sector, with a huge pent up demand, and a drastic fall in ATF prices is waiting to bounce back once travel restrictions are lifted.
  • Tata Power said that its divestment plans remain on track with a closure of the Cennergi transaction earlier in April with Rs 842 crore realised from this sale including hedging gain. The company is in advanced discussions to execute sale agreement for another overseas asset. In addition, there is good progress on closing the sale of Defense business in current quarter. The divestment in Zambia hydro project is also expected to be completed by December. The restructuring of Renewable businesses including setting up the vehicle for their growth is well on track to closure. Capex plans for transmission and distribution business have been deferred for the last two quarter of fiscal year 2021. Board approved raising up to Rs 1,500 crore via NCDs.
  • Embassy Office Parks REIT said in a press release, that its properties have remained opened to support core business functions of its occupiers throughout the national lockdown and rent collections from office occupiers remained strong at 92 percent for the month of April. Demand will be likely to moderate considerably through 2020. Company to resume construction once lockdown restrictions are eased by the government.
  • Mangalam Drugs & Organics has received Certificate of Suitability for API - Hydroxychloroquine Sulphate from European Directorate for the Quality of Medicines & Healthcare.
  • Future Retail: Board approved allotment of Rs 1.48 crore shares at Rs 505 per share aggregating to Rs 750 crore to promoter entity Future Coupons, upon exercise of option for conversion of remaining equity warrant.
  • Zensar Tech has launched digital human resources solution to manage current and post Covid-19 workplace transformation initiatives.
  • South India Bank revised MCLR across various tenors with effect from May 20. One-Month MCLR at 8 percent and One-Year MCLR at 8.65 percent.
  • L&T Infotech: Board re-appointed Sanjay Jalona as CEO and MD till August, 2025.
  • Finolex Industries said that it has increased the turnover discount scheme across its dealer network. The additional scheme dealer incentive scheme will be paid to the dealers who have achieved their target and for those who could not, will be paid a token amount as a gratitude to cushion the impact of the challenging business environment. Company has decided not to deduct staff salaries.

Nifty Earnings

Bajaj Finance Q4 (Standalone, YoY)

  • Net Interest Income up 38 percent at Rs 4,459 crore (Est 4,150cr)
  • Net Profit down 20 percent at Rs 892 crore (Est Rs 844cr)
  • Contingency provision related to Covid-19 at Rs 850 crore
  • Impairment expenses up 2.3 times at Rs 1,865 crore

Other Earnings

Embassy Office Parks REIT Q4 (Consolidated, YoY)

  • Revenue down 0.5 percent at Rs 543.4 crore
  • Net profit down 77.2 percent at Rs 57.8 crore
  • Impairment loss of Rs 178 crore
  • Declared dividend at Rs 6.89 per unit aggregating to Rs 532 crore

Ujjivan Small Finance Bank (Standalone, YoY)

  • Net Interest Income up 45.9 percent at Rs 466.6 crore
  • Net profit up 14.7 percent at Rs 73.2 crore
  • Provisions at Rs 97 crore versus Rs 12.4 crore (Rs 30.5 crore QoQ)
  • GNPA at 0.97 percent versus 0.95 percent (QoQ)
  • NNPA at 0.2 percent versus 0.38 percent (QoQ)

Tata Power Q4 (Consolidated, YoY)

  • Revenue down 8.4 percent at Rs 6,620.8 crore
  • Net profit up 3.3 times at Rs 402.6 crore
  • EBITDA up 17.2 percent at Rs 1,579.8 crore
  • Margins at 23.9 percent versus 18.6 percent

Larsen & Toubro Infotech Q4 (Consolidated, QoQ)

  • $ Revenue up 3.9 percent $409.9 million
  • Revenue up 7.1 percent at Rs 3,011.9 crore
  • Net profit up 13.1 percent at Rs 426.7 crore
  • EBITDA up 9.5 percent at Rs 578 crore
  • Margins at 19.2 percent versus 18.8 percent

Apollo Tyres Q4 (Consolidated, YoY)

  • Revenue down 15.5 percent at Rs 3,610.1 crore
  • Net profit down 7.4 percent at Rs 77.8 crore
  • EBITDA up 11.9 percent at Rs 475 crore
  • Margins at 13.2 percent versus 9.9 percent

Earnings Today

  • Bajaj Auto
  • Dr.Reddy's Lab
  • UltraTech Cement
  • Ajanta Pharma
  • Birlasoft
  • GHCL
  • Grindwell Norton
  • JSW Energy
  • Jubilant Foodworks
  • Kalpataru Power Transmission
  • JK Lakshmi Cement
  • Mahindra Logistics
  • Matrimony.Com
  • NACL Industries
  • Rane (Madras)
  • Strides Pharma Science
  • Supreme Petrochem
  • Ugro Capital
  • Tata Steel BSL

Resumption Of Operations

  • PPAP Automotive

Bulk Deals

  • Equitas Holdings: Morgan Stanley Asia acquired 19.68 lakh shares (0.58 percent) at Rs 44.39 per share
  • Healthcare Global: Buena Vista Fund acquired 5.16 lakh shares (0.58 percent) at Rs 103.99 per share

Pledged Share Details

  • Uniply Industries promoter Madras Electronics invoked pledge of 2.78 lakh shares on March 21
  • AU Small Finance Bank promoters revoked pledge of 15.5 lakh shares on May 19

(As Reported On May 19)

Who’s Meeting Whom

  • Dr Lal PathLabs to meet UBS AMC and Wardferry from May 22-25

Trading Tweaks

  • Move Into ASM Framework: Inox Lesiure, Best Agrolife
  • Move Into Short-ASM Framework: Orient Green Power, Shree Digvijay Cement, Healthcare Global Enterprises.
  • Move Out Of Short-Term ASM Framework: Neuland Laboratories, Subex

Insider Trading

  • AU Small Finance Bank promoter Chiranji Lal Agarwal sold 25 lakh shares on May 18

(As Reported On May 19)

F&O Cues

Index Futures

  • Nifty May futures closed at 8884, premium of 5 points versus 3 points premium
  • Nifty May futures open interest up 0.5 percent, adds 37,000 shares in open interest
  • Nifty Bank May futures closed at 17438, discount of 48 points versus 36 points discount
  • Nifty Bank May futures open interest down 1.8 percent, sheds 25,000 shares in open interest

Options

  • Nifty PCR at 1.02 versus 0.95 (across all series)

Nifty Weekly Expiry: May 21

  • Max open interest on call side at 9000 (19.5 lakh shares)
  • Max open interest on put side at 8800 (12.9 lakh shares)
  • Active Options: 8800 Put (+3.4 lakh shares), 9000 Call (+5.9 lakh shares)

Nifty Monthly Expiry: May 28

  • Max open interest on call side at 10000 (23.9 lakh shares)
  • Max open interest on put side at 8500 (21.2 lakh shares)

Securities In Ban

  • Vodafone Idea
Stocks To Watch: Bajaj Auto, Bajaj Finance, Cipla, Dr. Reddy’s, Piramal Enterprises, SpiceJet, Tata Power, UltraTech Cement