Stocks To Watch: Bajaj Finance, Hindustan Zinc, IndusInd Bank, IOC, Prabhat Dairy, L&T Infotech, UltraTech Cement

Indian equity markets ended little changed after witnessing pressure at higher levels. The S&P BSE Sensex ended 0.3% higher at 40,544 while the NSE Nifty 50 index ended just below the 11,900 mark at 11,896, up 0.2%. Both Sensex and Nifty registered their third straight day of gains.

Here are the stocks to watch in trade today:

• Hindustan Zinc announced Rs 9,000 crore interim dividend at Rs 21.3 per share which is having a dividend yield of 9.48% to the closing prices as on Oct.20.Record date set for dividend as Oct.28. Vedanta expected to receive Rs 5,842.8 crore worth of dividend as it has 64.92% stake in Hindustan Zinc. Company stated that both back fill plants at Zawar are under commissioning and operation is expected to start the month of Oct. Due to ongoing Covid-19 restriction including visa restrictions of Chinese nationals, commissioning of Fumer plant in Chanderiya is delayed and efforts are ongoing for an early commissioning. Company is on track to meet fiscal 2021 guidance.
• Cipla has launched Nitib drug to treat lung diseases. It is priced at Rs 69 (100mg) and Rs 85 (150mg), per capsule.
• NHPC: Board approved proposal to initiate the process of merger of company’s wholly owned arm Lanco Teesta Hydro Power with self, subject to approval of the government.
• IOC has started 4 hydrogen-CNG plant in Delhi having a capacity of 4 tons/day. Company will experiment this fuel in Delhi buses for 6 months. Company has raised Rs 2,000 crore via NCDs.
• Shiva Cement: Board approved proposal for setting up of 4000 TPD clinker unit along with 1 MTPA grinding unit for Rs 1,530 crore. The cost will be funded with a mix of long term debt and equity.
• Kirloskar Oil Engines Sept. Update: Some have been noticed in collections especially in large engine business division and in government account. Power generation business is recovering but the pace of recovery is slower compared to other business divisions.
• Motherson Sumi Systems to acquire Bombardier’s electrical wiring interconnection business in Mexico. The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around US $10 million.
• Larsen & Toubro Infotech: Board approved merger of wholly owned arms, Syncordis Software Services and Ruletronics Systems with the company.
• Equitas Small Finance Bank IPO: Subscribed 0.4 times on day 1. QIB was O, Non-institutional investors subscribed 0.03 times and for the retail segment it was 0.68 times.
• Mastek’s wholly owned UK arm has sold its entire stake of 20.18 lakh shares in Majesco’s U.S. arm to the acquirer for $32.3 million in cash. Company stated that the said amount will help the UK arm to drive its growth strategy and reduce the borrowings.

Earnings

Larsen & Toubro Infotech Q2 (Consolidated, QoQ)

• $ Revenue up 3.6% at $404.5 million
• Revenue up 1.7% at Rs 2,998.4 (Est Rs 2,982 crore)
• Net profit up 9.7% at Rs 456.8 crore (Est Rs 429 crore)
• EBIT up 15.9% at Rs 595.7 crore (Est Rs 598 crore)
• Margins at 19.9% versus 17.4% (Est 20%)
• Constant currency growth at 2.3%
• Declared dividend of Rs 15 per share
• Lower operating expenses and employee costs aid margins

Hindustan Zinc Q2 (Standalone, YoY)

• Revenue up 25.5% at Rs 5,660 crore (Est Rs 5,468 crore)
• Net profit down 6.8% at Rs 1,940 crore (Est Rs 2,003 crore)
• Ebitda up 39.4% at Rs 2,952 crore (Est Rs 2,750 crore)
• Margins at 52.2% versus 46.9% (Est 50.3%)
• Declared dividend of Rs 21.3 per share.
• Higher tax expenses impacted bottom line numbers
• Margins improved due to lower employee costs and higher revenue

Indian Energy Exchange Q2 (Standalone, YoY)

• Revenue up 4.89% at Rs 70.8 crore (Est Rs 68.8 crore)
• Net profit down 4.3% at Rs 46.7 crore (Est Rs 44.4 crore)
• Ebidta up 8.27% at Rs 57.6 crore (Est Rs 55.7 crore)
• Margins at 81.4% versus 78.8% (Est 81%)
• Net profit impacted by higher taxes

Earnings Today

• UltraTech Cement
• Bajaj Finance
• Bajaj Finserv
• Syngene
• Colgate Palmolive
• GMM Pfaudler

Pledged Share Details

• Atul promoter Arvind Farms released pledge of 5 lakh shares on Oct.19
• Ajanta Pharma promoter Ravi Agrawal Trust released pledge of 3 lakh shares on Oct.20

(As Reported On Oct.20)

Trading Tweaks

• Ex-Date Rights Issue: Mold-Tek Packaging (Rights issue at 1:50)
• Price Band Revised From 20% To 10%: Just Dial
• Move Into Short Term ASM Framework: AGC Networks.
• Move Out Of Short Term ASM Framework: Mohota Industries, Dynacons Systems & Solutions, Repco Home Finance.

F&O Cues

• Nifty October futures closed at 11,895; discount of 2 points versus premium of 24 points
• Nifty October futures Open Interest up 3%, adds 3.5 lakh shares in Open Interest
• Nifty Bank October futures closed at 24,348; premium of 36 points versus premium of 54 points
• Nifty Bank October futures Open Interest down 1%, sheds 15,000 shares in Open Interest
• Nifty Put Call Ratio at 1.41

Nifty Monthly Expiry: Oct 22

• Max Open Interest on call side at 12,500 strike (33 lakh shares)
• Max Open Interest on put side at 11,700 strike (26.6 lakh shares)
• Active options: 11,900 Put (8.7 lakh shares), 12,800 Call (-8 lakh shares)

Nifty Monthly Expiry: Oct 29

• Max Open Interest on call side at 12,500 strike (25 lakh shares)
• Max Open Interest on put side at 10,500 strike (33.5 lakh shares)