Stocks To Watch: Bajaj Auto, Bajaj Finserv, Bharti Infratel, InterGlobe Aviation, IOC, Tata Motors, Tata Power

Asian stocks traded mixed Thursday as investors mulled the ongoing impact of the coronavirus spread amid dovish commentary from the Federal Reserve and a slew of earnings.

Shares slipped in Japan and South Korea, and were little changed in Australia. Nasdaq futures edged higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.19 percent to 12,110.50 as of 6:50 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.

• InterGlobe Aviation: A majority of the company's shareholders voted against a proposal to amend the articles of association of the company that would’ve allowed the promoters to buy or sell stake in India’s largest airline. 51.44 percent of the participating shareholders voted against the special resolution at today’s extraordinary general meeting, according to a stock exchange filing by the parent company of IndiGo airlines. The remaining 48.6 percent were in favour. A special resolution requires support from at least 75 percent of the votes cast to go through.
• HDFC Bank: Reserve Bank of India imposed Rs 1 crore penalty on the Bank for due diligence failure in case of 39 current accounts opened for bidding in Initial Public Offering.
• Hindustan Aeronautics: Government to sell rose to 15 percent stake in the company via offer for sale, according to a statement published by the department of investment and public asset management, according to a Bloomberg report.
• Meghmani Organics will restructure its business by the demerger of its agro-chemical and pigment business into a wholly-owned arm Meghmani Organochem, which will be listed on the exchanges through mirror shareholding structure. The company also said that it will merge the remaining business of the company with Meghmani Finechem having chloro-alkali and its derivatives business, with the shareholders being issued 94 shares of Meghmani Finechem against 1,000 shares of the company.
• MOIL received environmental clearance for enhancement of production capacity from 90,000 TPA to 203,200 TPA for its manganese ore mine at Maharashtra.
• Greenlam Industries’ arm Greenlam South’s board approved setting up of the manufacturing facility at Nellore in Andhra Pradesh for manufacturing of laminates and allied products with an investment outlay of Rs 175 crore. The proposed capacity addition of 15 lakh laminate sheets per annum will be there, from the current 1.56 crore laminate sheets per annum. The company also said that it has been provisionally allotted a 65-acre land by Andhra Pradesh Industrial Infra Corporation.
• Pidilite Industries will acquire Nitin Enterprises for Rs 18.5 crore, as a part of a restructuring exercise.
• Videocon Insolvency: NCLT directed Goods and Services Tax Department to not take any coercive steps against Videocon Group Entities.
• SEBI disposed of adjudicating proceedings against Abhijit Rajan, former chairman of Gammon Infrastructure Projects, in an alleged insider trading.
• ICICI Lombard General Insurance: IRDAI imposed a penalty of Rs 1 crore on the company with respect to onsite inspection of the company which was carried out in August 2015.
• JSW Energy allotted Rs 300 crore worth of non-convertible debentures.
• Piramal Enterprises: Board approved allotment of 2.64 crore shares at Rs 1,300 per share aggregating to Rs 3,432 crore.
• JSW Steel’s Netherlands arm has completed the sale of its 39 percent stake in Geo Steel to its joint venture Partner Georgian Steel Group Holdings. Post the completion of the sale, the company holds 10 percent stake in Geo Steel.
• Himadri Speciality Chemical said that commercial operations of the proposed expansion of 60,000 MTPA plant for manufacturing carbon black at West Bengal have commenced. The overall capacity of carbon black has increased to 180,000 MTPA.
• BL Kashyap received the letter of intent for civil construction in Noida for Rs 487.9 crore from Bhutani Infra.
• ITI will consider issue price for its FPO issue on Feb. 1.

Earning Reactions To Watch

Bajaj Finserv (Q3, YoY)

• Revenue rose 31 percent to Rs 14,561 crore.
• Net income rose 32 percent to Rs 1,126 crore.
• Bajaj Finance Net Income rose 52 percent to Rs 1,614 crore.
• General Insurance Net Income fell 15 percent to Rs 191 crore.
• Life Insurance Net Income rose 28 percent to Rs 143 crore.

Tata Power (Q3, YoY)

• Revenue fell 11.4 percent to Rs 7,071 crore. (Estimate Rs 7638 crore)
• Net profit rose 26.1 percent to Rs 178.9 crore. (Estimate Rs 278.8 crore)
• Ebitda fell 3.9 percent to Rs 1,804.9 crore. (Estimate Rs 1987.7 crore)
• Margin stood at 25.5 percent versus 23.5 percent. (Estimate 26 percent)

Pidilite Industries (Q3, YoY)

• Revenue rose 4.3 percent to Rs 1,926.6 crore. (Estimate Rs 1920 crore)
• Net profit rose 55.7 percent to Rs 341.8 crore. (Estimate Rs 300 crore
• Ebitda rose 35.8 percent to Rs 463.2 crore. (Estimate Rs 414 crore)
• Margin stood at 24 percent versus 18.5 percent. (Estimate 21.6 percent)

CG Consumer Electricals (Q3, YoY)

• Revenue rose 4 percent to Rs 1,071.3 crore. (Estimate Rs 1111.7 crore)
• Net profit rose 2 times at Rs 161 crore. (Estimate Rs 101 crore)
• Ebitda rose 8.5 percent to Rs 136.8 crore. (Estimate Rs 136.6 crore)
• Margin stood at 12.8 percent versus 12.2 percent. (Estimate 12.3 percent)

Quess Corp (Q3, YoY)

• Revenue rose 35.8 percent to Rs 2,950 crore.
• Net profit rose 15.2 percent to Rs 74.9 crore.
• Ebitda rose 51.5 percent to Rs 179.4 crore.
• Margin stood at 6.1 percent versus 5.5 percent.

KPIT Technologies (Q3, QoQ)

• Revenue rose 1.1 percent to Rs 550 crore.
• Net profit rose 19.5 percent to Rs 42.9 crore.
• EBIT rose 14.1 percent to Rs 45.3 crore.
• Margin stood at 8.2 percent versus 7.3 percent.

Coffee Day Enterprises (Q2, YoY)

• Revenue fell 13.9 percent to Rs 843.2 crore.
• Net loss at Rs 154.1 crore versus Net Profit at Rs 21.2 crore.
• Ebitda fell 66.4 percent to Rs 49.5 crore.
• Margin stood at 5.9 percent versus 15 percent.

Nifty Earnings To Watch

• Bajaj Auto
• Bharti Infratel
• Indian Oil Corporation
• Tata Motors

Other Earnings To Watch

• Colgate Palmolive
• JK Tyre & Industries
• Marico
• Dabur
• Blue Star
• Bharat Electronics
• Amber Enterprises
• Arvind SmartSpaces
• Equitas Holdings
• Force Motors
• Laurus Labs
• Shriram City Union Finance
• LIC Housing Finance
• Asahi Songwon Colors
• Astec LifeSciences
• Bajaj Holdings & Inv Estimatement
• Balaji Amines
• Bharat Bijlee
• Carborundum Universal
• Dalmia Bharat Sugar and Industries
• Gujarat Ambuja Exports
• Gujarat State Fertilizers & Chemicals
• Heritage Foods
• Jagran Prakashan
• Kakatiya Cement Sugar & Industries
• Kirloskar Industries
• MOIL
• MCX
• Nath Bio-Genes (India)
• NOCIL
• Orient Green Power Company
• Parag Mi lakh Foods
• Persistent Systems
• PPAP Automotive
• Raunaq EPC International
• Thomas Cook
• Vimta Labs

Pledge Share Details

• Uflex promoter Flex International created pledge of 45,000 shares on Jan. 28.
• Axiscades Engineering Technologies promoter Jupiter Capital released pledge of 12.26 lakh shares on Jan. 27.

Trading Tweaks

• Palred Technologies to move into ASM Framework.
• Paisalo Digital, Reliance Home Finance to move into short term ASM Framework.
• Dynacons Systems & Solutions, PG Electroplast to move out of short term ASM Framework.

Who’s Meeting Whom

• Mahindra Lifespace Developers to meet Kotak MF on Jan. 31

Money Market Update

• The rupee closed at 71.25/$ versus 71.34/$ on Tuesday.

F&O Cues

Futures

• Nifty January futures closed at 12,121.5, discount 7.9 points versus premium of 12.2 points.
• Nifty futures OI across series down 2 percent, sheds 3.5 lakh shares in OI
• Nifty Bank January futures closed at 30,905.5, premium of 28 points versus 10.2 points.
• Nifty Bank futures OI across series up 1 percent, adds 26,000 shares in OI
• Rollovers: Nifty at 45 percent, Nifty Bank at 40 percent.

Options

• Nifty PCR at 1.13 versus 0.99 (across all series)

Nifty Monthly Expiry: Jan 30

• Max OI on call side at 12,200 (50.7 lakh shares)
• Max OI on put side at 12,000 (34.8 lakh shares)
• OI addition seen at 12,100P (+7.7 lakh shares), 12,150P (+7.6 lakh shares), 12,150C (+5.7 lakh shares)
• OI shedding seen at 12,100C (-17.6 lakh shares), 12,500C (-10 lakh shares)

Brokerage Radar

Goldman Sachs on Oberoi Realty

• Initiated ‘Buy’ with a price target of Rs 652.
• See several growth levers; best placed in the current environment.
• Existing inventory and new launches provide visibility for growth.
• The strong balance sheet provides firepower for inorganic growth.

Goldman Sachs on Phoenix Mills

• Initiated ‘Buy’ with a price target of Rs 1,000.
• Riding high on India’s consumption story.
• Expect doubling of retail space and tripling of commercial space over FY19-23.
• Stable cash flow from existing assets to comfortably support leverage.

Motilal Oswal on IIFL Wealth and Asset Management

• Initiated ‘Buy’ with a price target of Rs 1,525.
• Migration to a complete advisory model could be a game-changer.
• Business model less prone to cyclicality now.
• Increasing granularity and reducing cyclicality of revenues.
• Expect AUM, revenue and net profit to grow at a CAGR of 18 percent, 20 percent and 30 percent respectively over FY20-23.

Emkay on Dixon Tech

• Maintained ‘Buy’; hiked price target to Rs 5,111 from Rs 4,475.
• Ebitda beat was driven by benign commodity prices and operating leverage.
• Key positive in Q3 was stark improvement in working capital and FCF generation.
• Hike consumer electronics revenue estimates by 3.2 percent and 5.9 percent for the current and the next financial years respectively.

UBS on Yes Bank

• Maintained ‘Sell’; cut price target to Rs 20 from Rs 45.
• Delay in capital infusion and increased NPL risk driving further downgrades.
• Asset quality risks have risen in the past 12 months.
• Delay in capital raising continues to exacerbate the problems.

UBS on IndusInd Bank

• Maintained ‘Sell’; cut price target to Rs 1,150 from Rs 1,210.
• NPL risks persists – 30 percent of loan book facing headwinds.
• See continued deterioration in bank’s corporate book.
• Valuations on thin ice; expect a further de-rating.