Stocks To Watch: Bajaj Finance, Bandhan Bank, Emami, Godrej Consumer, HUL, PVR, Shree Renuka Sugars, Shriram Transport
A person stands in the window of a car company's showroom in the Ambattur district in Chennai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Bajaj Finance, Bandhan Bank, Emami, Godrej Consumer, HUL, PVR, Shree Renuka Sugars, Shriram Transport

Asian stocks were mixed Tuesday after strong global gains Monday that saw U.S. shares close higher for a fifth day. The dollar remained under pressure. Shares slipped in Japan and saw modest gains in South Korea and Australia.

Here are the stocks to watch in trade today:

  • HUL has moved to Bombay High Court seeking injunctions against groundless threats by Emami in respect of its trademark "Glow and Handsome". HUL has sought at least prior 7 days written notice from Emami before it initiates any legal proceedings in relation to the trademark "Glow and Handsome". HUL said that it registered the marks "Glow and Lovely" and "Glow and Handsome" in September 2018. Prima facie, it appears that HUL is prior adopter of the trademark as it filed for the application in 2018, says Bombay High Court and has directed Emami to provide 7 days prior notice to HUL before initiating any proceedings.
  • Bajaj Finance Q1FY21 Update: Company may consider additional accelerated provisioning for COVID-19 in the aforementioned quarter as well to further strengthen its balance sheet. AUM under moratorium has reduced from 27% as of April 30 to 15.5% as of June 30.Consolidated liquidity surplus was approximately Rs 17,600 crore and capital adequacy ratio stood at 26.4% as of June 30.Deposit book up 33% at Rs 20,000 crore and AUM up 7% at Rs 138,000 crore, on a year on year basis.
  • PVR has set rights issue price at Rs 784 per share, which is at discount of 25% to the closing prices of July 6.Rights entitlement ratio at 7 shares for every 94 shares held with record date set at July 10. Issue opens from July 17 till July 31.On June 8, Board approved raising Rs 300 crore via rights issue.
  • Bandhan Bank Q1FY21 Update: Loan and advances up 18% at Rs 74,325 crore and total deposits up 35% at Rs 60,602 crore. CASA Ratio at 37.1% versus 36.8%, on sequential basis. Subsequent to Unlock 1, the collection in Micro Banking loan vertical has shown positive traction from June 01. There has been steady improvement in collection efficiency (in value terms) during the month of June and ended with 68% as on last day of the month. This number has further improved to 70% (resulting in effective moratorium of 30%) as on July 3. 70% of customers have started repaying their loans. For non-micro banking advances, collection efficiency for the month of June 2020 stands at 84% (resulting in effective moratorium of 16%).
  • Godrej Consumer Products Q1FY21 Update: At consolidated level, expect absolute sales to be marginally lower compared to the base quarter in rupee terms. Expect close to mid single digit, volume driven sales growth in the quarter. Resurgence of household insecticide category continued with strong underlying consumer demand. Strong momentum in the hygiene category, however there muted demand in hair colour and air freshener, which were temporarily impacted by the lockdown.
  • Shriram Transport Finance: Board approved rights issue of Rs 1,500 crore at an issue price of Rs 570 per share. Rights entitlement ratio at 3 equity shares for every 26 equity shares held by the eligible shareholders on the record date i.e. July 10. Promoter group has undertaken to fully subscribe to their rights entitlement and shall not renounce their rights. Issue price is at a discount of 18 percent to the closing price of July 6.
  • Modex International Securities Case: SAT has allowed Axis Bank to sell securities held in its clearing account to recover Rs 21 crores. NSE issued an order directing Axis Bank to release shares belonging to the clients of Modex International Securities.Axis Bank challenged the order on the ground that being a professional clearing member, it is the owner and can dispose the shares to recover the defaulted amount. SAT has allowed the Bank to sell securities relating to Modex's debit clients to the extent of debit balance in their accounts.Directs Axis to return any surplus arising from the sale back to Modex's clients.
  • Pharma Stocks: Mylan N.V. announced that the Drug Controller General of India has approved its remdesivir 100 mg/vial for restricted emergency use in India as part of the DCGI's accelerated approval process to address urgent, unmet needs amid the evolving coronavirus pandemic. The drug is approved for the treatment of suspected or laboratory confirmed incidences of COVID-19 in adults and children hospitalized with severe presentations of the disease. The drug will be launched under the brand name DESREM in India, and will be available to patients in July at a price of Rs 4,800 which is more than 80% less than the price at which the branded version of this product will be available to governments in the developed world. (Bloomberg News)
  • Karur Vyasa Bank has entered into an arrangement by which health products of Star Health and Allied Insurance will be made available through all 780 branches of the Bank.
  • Uniply Industries: Malabar India Fund reduced stake from 7.45% to 5.36% from July 1-2.
  • SH Kelkar Q1FY21 Update: Company witnessed encouraging demand pick-up from the last week of May continuing into June. Consequently, revenues in the current quarter stood between Rs 190 to 192 crore. Net debt reduced from Rs 299 crore to Rs 254-258 crore, on a sequential basis. From June onwards, the company has been witnessing initial signs of recovery in the FMCG industry and a gradual normalization of the supply chain system.
  • Insecticides India: Company said that the zonal and territory manager (Chhattisgarh) of the company along with 16 distributors & dealers has found to be indulged in commission of breach of trust, criminal misappropriation & fraud over a period of time, thereby causing severe loss and injury to the company for about Rs 20 crore. Complaint has been filed with the superintendent of police.
  • Punjab National Bank to consider raising capital on July 9.
  • Canara Bank to consider raising capital on July 10 for fiscal 2021.
  • Coal India: India’s coal ministry is seeking lower railway freight charges on the fuel to bring down its cost, M.Nagaraju, joint secretary at the coal ministry, said at a webinar. High cost of freight and high taxation on coal make the fuel costly in India, he said. Ministry will have a meeting with lenders around the end of July to convince them to fund commercial coal mining projects. (Bloomberg News)
  • Ricoh India: SEBI has ordered disgorgement of gains worth Rs 2.3 crores made by entities on basis of unpublished price sensitive information.

Earnings Today

  • Best Agrolife
  • Shree Renuka Sugars

Pledged Share Details

  • Adani Transmission promoter SB Adani Family Trust revoked pledge of 20 lakh shares on July 4.

(As Reported On July 6)

Bulk Deals

  • Camlin Fine Sciences: Infinity Holdings acquired 6.64 lakh shares (0.55%) at Rs 56 per share.

Who’s Meeting Whom

  • Dixon Tech to meet Sundaram MF, C Worldwide AMC and other investors on from July 7 to 14
  • Mahindra Lifespace Developers to meet Altavista Capital Advisors on July 7
  • Eicher Motors to meet Eastspring on July 7
  • Affle India to meet Morgan Stanley Investment Management on July 7
  • Escorts to meet Basant Maheshwari Wealth Advisors on July 8
  • Mahindra Logistics to meet P & Y Estates, Enam Holdings and Axis Capital on July 8

Trading Tweaks

  • AGM Date: MindTree, Hindusthan National Glass & Industries, Britannia, Sanofi India, Tata Chemicals.
  • Fund Raising Date: PI Industries.
  • Price Band Revised From 10% To 5%: Aurionpro Solutions, Cimmco, Hubtown, Intense Technologies, Walchandnagar Industries.
  • Price Band Revised From 20% To 10%: Bharat Dynamics, Omfurn India.
  • Move Into ASM Framework: Lakshmi Finance & Industrial Corporation, Transwind Infrastructures, Enkei Wheels.
  • Move Into Short-Term ASM Framework: Vertoz Advertising, Bhartiya International.
  • Move Out Of Short-Term ASM Framework: A2Z Infra Engineering, Surya Roshni, 5Paisa Capital, Indiabulls Real Estate, Trident, Allied Digital Services, Arvind Fashions.

F&O Cues

  • Nifty July futures closed at 10755, discount of 10 points versus discount of 35 points
  • Nifty July futures open interest up 2.7%, adds 2.9 lakh shares in open interest
  • Nifty Bank July futures closed at 22226, premium of 28 points versus premium of 8 points
  • Nifty Bank July futures open interest down 8%, sheds 1 lakh shares in open interest

Options

  • Nifty PCR at 1.59 versus 1.50 (across all series)

Nifty Monthly Expiry: July 9

  • Max open interest on call side at 11000 (30.8 lakh shares)
  • Max open interest on put side at 10000 (37.7 lakh shares)
  • Active options: 10600 Put (+18.4 lakh shares), 10800 Call (+8.3 lakh shares)

Nifty Monthly Expiry: July 30

  • Max open interest on call side at 11000 (24 lakh shares)
  • Max open interest on put side at 10000 (30.7 lakh shares)

Securities In Ban

  • In Ban: In Glenmark, Indiabull Housing Finance, Idea, SAIL, BHEL
  • New In Ban: BHEL
Stocks To Watch: Bajaj Finance, Bandhan Bank, Emami, Godrej Consumer, HUL, PVR, Shree Renuka Sugars, Shriram Transport
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