Stocks To Watch: Bank Of Baroda, GM Breweries, HUL, TCS, Yes Bank
Sensex erased its 2018 advance on Thursday as the biggest stock sell-off since February rolled from the U.S. through Asia.
The S&P BSE Sensex fell 2.2 percent or 760 points to 34,001 and the NSE Nifty 50 Index dropped 2.2 percent or 225 points to 10,235.
Here Are The Stocks To Watch In Trade On Today’s Session:
- Sundaram Clayton inaugurated its new foundry in Chennai with an investment of Rs 150 crore to significantly expand its capacity. This expansion will primarily serve to Hyundai Motor India Limited.
- Castrol India entered into a strategic agreement with Mahindra & Mahindra, in which the auto company will endorse a range of Castrol products like aftermarket engine oils and transmission fluids for Mahindra tractors.
- Bank of India raised MCLR by five basis points across the overnight and one-month tenors to 8.05 percent and 8.15 percent respectively. These rates are effective from Oct. 10.
- PNC Infratech declared appointment date, i.e. Oct. 10 for two EPC Project Packages worth Rs 2,520 crore by Uttar Pradesh Expressways Industrial Development Authority.
- OnMobile Global acquired 100 percent stake in Sweden based ‘Appland AB’ for $15 million. This expansion will help the company foray into mobile games subscription market.
- Bank of Baroda extended term of the current CMD PS Jayakumar by one year till Oct. 12 next year or until any further order, whichever is earlier.
- Government of India increased stake in Corporation Bank from 79.87 percent to 86.77 percent, after 86.9 crore equity shares were allotted to the government on a preferential basis.
- Yes Bank appointed Korn Ferry to search for new CEO. The lender’s panel for identifying successor to MD and CEO Rana Kapoor has mandated global advisory firm Korn Ferry to assist in evaluating of candidates.
Data To Watch
- 2:30pm: SIAM to release India car sales data for month of September.
- 5:30pm: India August Industrial Production (YoY), Est. 4.0 percent, prior 6.6 percent.
- 5:30pm: India September CPI (YoY), Est. 4.01 percent, prior 3.69 percent.
Earnings Reactions To Watch
TCS (Consolidated, QoQ)
- Dollar revenue up 3.2 percent at $5.22 billion.
- Revenue up 7.6 percent at Rs 36,854 crore.
- Net profit up 7.6 percent at Rs 7,901 crore.
- EBIT up 13.9 percent at Rs 9,771 crore.
- Margin at 26.5 percent versus 25 percent.
- Interim dividend of Rs 4 per share to be given, record date set on Oct. 24.
GM Breweries (Q2, YoY)
- Revenue up 10.5 percent at Rs 111.8 crore.
- Net profit up 23.6 percent at Rs 19.4 crore.
- EBITDA up 22.1 percent at Rs 30.4 crore.
- Margin at 27.2 percent versus 24.6 percent.
Nifty Earnings To Watch
- Hindustan Unilever
Other Earnings To Watch
- Karnataka Bank
- Tata Sponge Iron
Capri Global Capital
- Albula Investment Fund acquired 38 lakh shares (2.17 percent) at Rs 81.5 each.
- Wellington Management Company LLP sold 36.4 lakh shares (2.08 percent) at Rs 81.5 each.
Who’s Meeting Whom
- Finolex Industries to meet IDBI Capital, Kotak Securities and other investors on Oct. 12.
- Mahanagar Gas to meet Lazard Asset Management on Oct. 15.
- JSW Steel promoter group acquired 10.1 lakh shares from Oct. 8-9.
- Apollo Tyres promoter group Classic Auto Tubes acquired 75,000 shares from Oct. 8-9.
- Kitex Garments promoter acquired 55,000 shares from Oct. 10-11.
- Astra Microreowave Products promoters acquired 15,600 shares from Oct. 5-8.
- Hinduja global Solutions promoter sold 70,000 shares on Oct. 8.
- Cox & Kings promoter acquired 65,500 shares on Oct. 9.
- Sadbhav Infra Project promoter acquired 38,300 shares on Oct. 10.
- Just Dial record date to determine buyback eligibility.
- Larsen & Toubro ex-date to determine buyback eligibility.
- Garden Reach Shipbuilders & Engineers Limited added to BSE IPO Index.
- Nifty October futures closed trading at 10,252, premium of 18 points
- Nifty October open interest down 0.2 percent; Nifty Bank October open interest up 21 percent
- Max open interest for October series at 10,500 Call (open interest at 35.2 lakh shares)
- Max open interest for October series at 10,000 Put (open interest at 37.2 lakh shares)
Stocks In Ban
- IDBI Bank
- Nifty PCR at 1.08 versus 1.16.
- Nifty Bank PCR at 0.92 versus 1.34.
- Maintained ‘Buy’ with a price target of Rs 2600, implying a potential upside of 31 percent from the last regular trade.
- Second quarter review: strong growth, slight margin miss and an improving growth outlook.
- Strong revenue growth led by improving BFSI and retail.
- Margin expansion slightly lower as TCS invests to exploit demand.
- Maintained ‘Outperform’; cut price target to Rs 2345 from Rs 2,350, implying a potential upside of 18 percent from the last regular trade.
- Double-digit revenue growth momentum driven by the ramp-up of large deal wins.
- Growth momentum has been picking up in the BFS sector.
- Cut price target to factor in lower other income.
- Maintained ‘Reduce’ with a price target of Rs 1950, implying a potential downside of 1.5 percent from the last regular trade.
- September quarter review: Revenue growth was below expectations, while margins were in line.
- Expect marginal downside to growth numbers and possible tempering of multiples.
- Prefer HCL Tech as only Buy.
- Maintained ‘Neutral’ with a price target of Rs 1,775, implying a potential downside of 10 percent from the last regular trade.
- Solid September quarter but not enough for upward earnings revisions.
- Well placed in digital technologies but no pick-up in financial services.
- No concerns yet around trade wars and Brexit.
- Maintained ‘Hold’ with a price target of Rs 1,740, implying a potential downside of 12 percent from the last regular trade.
- Rev-growth accelerates, management signals good visibility for the current financial year.
- U.K. and Europe have maintained strong growth rates.
- Robust operating metrics; Digital is now 28 percent of revenues.
UBS on Cipla
- Maintained ‘Buy’ with a price target of Rs 730, implying a potential upside of 18 percent from the last regular trade.
- Niche launches to sustain the growth momentum.
- Portfolio rationalisation and new launches to enhance the U.S. gross margins.
- Potential headwinds facing the South African business.
- Continue to prefer Cipla among Indian pharma companies.
Macquarie on Coal India
- Maintained ‘Outperform’ with a price target of Rs 335, implying a potential upside of 26 percent from the last regular trade.
- Well placed as market tightness persists.
- E-auction realisation could surprise; Linkage auction encouraging.
- Dividend and valuation limits downside; Buyback could flip the overhang.