Stocks To Watch: Bajaj Finance, HDFC, Gati, Tech Mahindra, Titan, Yes Bank

Asian stocks and U.S. futures gained on Tuesday after further records were reached on Wall Street, spurred by signs that the U.S. and China are inching toward a trade deal.

Stocks opened higher in Tokyo after a holiday Monday, with more restrained gains in Sydney; shares were little changed in Seoul. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.15 percent to 11,966.50 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.

Nifty Earnings To Watch

• Tech Mahindra
• Titan Company

Other Earnings To Watch

• Jindal Steel & Power
• REC
• Godrej Properties
• Berger Paints
• Dabur
• Divi's Laboratories
• Future Enterprises
• Ajanta Pharma
• Apollo Tyres
• BEML
• Ballarpur Industries
• Titagarh Wagons
• Torrent Power
• Transport Corporation of India
• GATI
• Birla Corporation
• NCC
• Prism Johnson
• Procter & Gamble Hygiene and Health Care
• Punjab National Bank
• Cholamandalam Investment and Finance Company
• Cimmco
• Redington
• GE T&D India
• Gillette India
• Greaves Cotton
• Grindwell Norton
• GTL Infrastructure
• Gujarat Gas
• Gujarat Narmada Valley Fertilizers and Chemicals
• HCL Infosystems
• Indo Rama Synthetics
• JMC Projects
• National Fertilizers
• Shyam Century Ferrous
• Sandhar Technologies
• Star Cement
• V.S.T Tillers Tractors

Earnings Reactions To Watch

Taro Pharma (Sun Pharma’s Subsidiary) (Q2, YoY)

• Net sales up 1 percent to at $160.9 million.
• Net profit down 11 percent to $56.2 million.
• Operating profit down 20 percent to $62.6 million.
• Margin at 38.9 percent versus 49.5 percent.

TCI Express (Q2, YoY)

• Revenue rose 9 percent to Rs 269.5 crore.
• Net profit rose 60.1 percent to Rs 26.1 crore.
• Ebitda rose 12.5 percent to Rs 30.7 crore.
• Margin stood at 11.4 percent versus 11 percent.

Persistent Systems (Q2, QoQ)

• Dollar revenue rose 5 percent to 125.5 million.
• Revenue rose 6.3 percent to Rs 884.6 crore.
• Net profit rose 4.4 percent to Rs 86.1 crore.
• EBIT fell 3 percent to Rs 77.3 crore.
• Margin stood at 8.7 percent versus 9.6 percent.

Bharat Electronics (Q2, YoY)

• Revenue fell 19 percent to Rs 2,748.3 crore.
• Net profit fell 40.9 percent to Rs 343.9 crore.
• Ebitda fell 36.3 percent to Rs 548.6 crore.
• Margin stood at 20 percent versus 25.4 percent.
• Order Book stood at Rs 56,178 crore as On Oct. 1.

SRF (Q2, YoY)

• Revenue fell 1 percent to Rs 1,737.8 crore.
• Net profit rose 2 times at Rs 301.1 crore.
• Ebitda rose 5.6 percent at Rs 335.2 crore.
• Margin stood at 19.3 percent versus 18.1 percent.

Mahindra Holidays & Resorts (Q2, YoY)

• Revenue rose 7.7 percent to Rs 555.7 crore.
• Net profit stood at Rs 23.9 crore versus net loss of Rs 1.6 crore.
• Ebitda rose 3.9 times to Rs 99.6 crore.
• Margin stood at 17.9 percent versus 5 percent.

Sudarshan Chemical (Q2, YoY)

• Revenue rose 10.3 percent to Rs 400.3 crore.
• Net profit rose 87.8 percent to Rs 46.2 crore.
• Ebitda rose 35.7 percent to Rs 63.1 crore.
• Margin stood at 15.8 percent versus 12.8 percent.
• Other Expenses fell 7 percent to Rs 74.4 crore.

Godrej Agrovet (Q2, YoY)

• Revenue rose 16.5 percent to Rs 1851.1 crore.
• Net profit rose 10.4 percent to Rs 104 crore.
• Ebitda fell 14.9 percent to Rs 119.7 crore.
• Margin stood at 6.5 percent versus 8.9 percent.

Intellect Design Arena (Q2, QoQ)

• Revenue fell 4.8 percent to Rs 326.6 crore.
• Net loss stood at Rs 16.1 crore versus net profit of Rs 3.4 crore.
• Ebitda loss stood at Rs 5.8 crore versus EBITA of Rs 11.6 crore.
• Employee expenses rose 4 percent to Rs 218.1 crore.

Indian Overseas Bank (Q2, YoY)

• Net Interest Income stood flat at Rs 1,203.9 crore.
• Net loss stood at Rs 2,253.6 crore versus net loss of Rs 487.3 crore.
• Provisions rose 49 percent at Rs 2,996 crore.
• Gross non-performing asset stood at 20 percent versus 22.53 percent QoQ.
• Net NPA at 9.84 percent versus 11.04 percent QoQ.

HSIL (Q2, YoY)

• Revenue fell 24.5 percent to Rs 469.9 crore.
• Net profit rose 3.2 times to Rs 15 crore.
• Ebitda rose 42.9 percent to Rs 73.6 crore.
• Margin stood at 15.7 percent versus 8.3 percent.

CARE Ratings (Q2, YoY)

• Revenue fell 26 percent to Rs 71.6 crore.
• Net profit fell 19.3 percent to Rs 36.7 crore.

Pledge Share Details

• Adani Enterprises promoter SB Adani Family Trust revoked pledge of 18.62 lakh shares on Nov. 1.
• Emami promoters created pledge of 4.5 lakh shares on Oct. 31.
• Adani Transmission promoter SB Adani Family Trust revoked pledge of 7.9 lakh shares on Nov. 1.
• Future Retail promoter Future Corporate Resources revoked pledge of 60 lakh shares on Oct. 31.

Trading Tweaks

• Bharat Gears, Shalby, Patel Engineering, Reliance Power, Vakrangee to move into short term ASM Framework.
• Newgen Software Technologies, GSS Infotech to move out of short term ASM Framework.
• Bharat Gears, Uniply Industries, RPG Life Sciences price band revised to 10 percent.
• Uniply Décor, Astron Paper & Board Mill price band revised to 5 percent.

Who’s Meeting Whom

• Mahindra & Mahindra to meet Vaughan Nelson Investment Management on Nov. 12.
• PNB Housing Finance to meet ICICI Securities and JM Financial from Nov. 6-7.

Insider Trading

• V2 Retail promoter Ricon Commodities acquired 2.3 lakh shares on October 31.

Money Market Update

• The rupee closed at 70.76/$ versus 70.81/$ on Friday.

F&O Cues

Index Futures

• Nifty November futures closed at 11979.7, premium of 38.4 points versus 37.6 points.
• Nifty November Futures open interest up 1 percent, adds 1.1 lakh shares in open interest.
• Nifty Bank November futures closed at 30,396, premium of 62.9 points versus 43.6 points.
• Nifty Bank November futures series open interest up 12 percent, adds 1.1 lakh shares in open interest.

Options

• Nifty PCR at 1.43 versus 1.41 (across all series).

Nifty Weekly Expiry: Nov. 7

• Max open interest on call side at 12,000 (24.6 lakh shares).
• Max open interest on put side at 11,800 (21.5 lakh shares).
• open interest addition seen at 11,900P (+4.8 lakh shares), 11,950C (+3.7 lakh shares).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (18.3 lakh shares).
• Max open interest on put side at 11,600 (19.1 lakh shares).

Brokerage Radar

On HDFC

HSBC

• Maintained ‘Buy’ with a price target of Rs 2,700.
• Moderation in wholesale loan growth overshadows healthy growth in core individual home loans.
• Stable asset quality with improving provision coverage ratio provides comfort.
• Retain HDFC as our preferred housing finance company name.

Emkay

• Maintained ‘Buy’; hiked price target to Rs 2,466 from Rs 2,421.
• Steady Q2; disbursements growth for individual loans remained relatively subdued.
• Cost of funds stabilized; margins likely to remain under pressure due to competition.
• Diversified liability franchise to drive growth.

Edelweiss

• Maintained ‘Buy’; hiked price target to Rs 2,653 from Rs 2,589.
• Individual growth steady; conservative in corporate segment.
• Asset quality rises further due to corporate slippage.
• Amidst prevailing systemic risk aversion, growth will consolidate in favour of strong players.

Nomura

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 2,550 from Rs 2,300.
• Steady performance; steady NII growth.
• Individual book steady; builder book not a big worry.
• Risk-reward incrementally getting favourable.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 2,600.
• Positives were strong underlying NII growth and individual AUM growth.
• Corporate NPLs increased, largely as expected.
• HDFC used one-off capital gains to strengthen provision coverage.

On Bharat Electronics

Edelweiss

• Maintained ‘Hold’ with a price target of Rs 125.
• Muted defence execution; adjusted margin springs negative surprise.
• Healthy order book, but large orders’ pipeline weak.
• Limited near-term triggers.

PhillipCapital

• Maintained ‘Buy’; hiked price target to Rs 160 from Rs 145.
• Result on expected lines; strong H2 will be a re-rating catalyst.
• Despite lower profits and elevated working capital BEL generated operating cash flow.
• On track to meet its 2019-20 sales guidance; expect revenues during the second to rise by 29 percent backed by large supplies.

On Jindal Steel & Power

Edelweiss

• Maintained ‘Buy’ with a price target of Rs 145.
• Cost reduction and ongoing volume ramp-up are double bonanza from Gare Palma coal block.
• See reduction in coal procurement cost of at least Rs 500 crore per year.
• Expect upside potential of 7 percent to FY21 Ebitda

Prabhudas Lilladher

• Upgraded to ‘Buy’ from ‘Accumulate’; hiked price target to Rs 170 from Rs 125.
• Regains coal block at attractive price.
• Best equipped to maximise the value from mine .
• Coal cost to come down by Rs 1300 per tonne with option to sell 25 percent of production in open market.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 139.
• Win would be positive; estimate it could potentially benefit 2020-21 Ebitda by 5-9 percent.
• Mine to partially replace e-auction/imported coal requirement and linkage coal to some extent.
• Company could take another 3-6 months to get the mine operational.