Stocks To Watch: Bharti Infratel, IndusInd Bank, InterGlobe Aviation, Nestle, Tech Mahindra, Ultratech Cement, United Spirits, Yes Bank

Asian stocks had a muted start Tuesday ahead of a Federal Reserve meeting where policy makers are expected to reinforce their dovish message. Gold extended gains after hitting an all-time high, while the dollar remained under pressure. Japan’s shares were flat, while South Korea outperformed. Australia edged higher.

Here are the stocks to watch in trade today:

• Yes Bank: State Bank of India stake in the Bank falls from 48.21% to 30%, post follow-on-public offer.
• Mindspace Business Parks REIT IPO subscribed 38% on Day 1.Institutional subscription at 0.37 times.Retail subscription at 0.40 times. Institutional category doesn’t include anchor portion.
• Indian Oil Corporation and Total (France), announced the formation of a 50:50 joint venture company that will manufacture and market high-quality bitumen derivatives and specialty products for the growing road-building industry in India. The two companies have already established a business relationship in India, notably in LPG and fuel additives. The venture will set up manufacturing units across the country with cost-effective logistics solutions xplore the possibility of catering to other South Asian markets.
• SpiceJet to operate first long haul flight on Aug. 1. To fly Indians from Amsterdam in the first flight. (Twitter)
• InterGlobe Aviation has announces another round of steeper pay cuts starting September. CEO Ronojoy Dutta in an email to employees said that the company is taking deeper pay cuts to adjust cost structure down in line with the reduced revenue. Ronojoy Dutta to take a 35% paycut. All executives at the level of senior vice president and above to take a pay cut of 30%.Vice presidents and associate vice presidents to face a 15% cut in their salary. Dutta said it intends to gradually reduce the number of days without pay as it adds back more flights.
• Adani Enterprises has signed a non-binding memorandum of understanding with the Government of Tamil Nadu for exploring possibilities of setting up hyperscale data center facility.
• NBCC received projects work in Seychelles worth Rs 204.5 crore.
• Bharti Airtel: Hughes Network Systems, led by the U.K. Government and Bharti Enterprises, will acquire OneWeb out of bankruptcy. Hughes has agreed in principle to invest $50 million in the consortium. Additionally, Hughes will continue as a trusted technology and distribution partner to OneWeb, the Low Earth Orbit satellite operator.
• MT Educare promoter Mahesh Shetty to sell 17.83 lakh shares (2.47% equity) at floor price of Rs 13 per share, aggregating to Rs 3.2 crore. Offer for non-retail shareholders starts on July 28 and for retail investors it is July 29. His stake as on June 30, as per the latest shareholding pattern stood at 18.35% in the company.
• Bharti Infratel: Board has accepted resignation of D S Rawat as Managing Director & CEO with effect from Aug. 3
• HDFC to consider raising funds on July 30.
• KPI Global Infra has commissioned additional 615 KW solar power project under captive power producer category with two industrial customers.
• Birlasoft has joined the Bond-Pro Partner Ecosystem, providing its insurance sector clients digital services.
• Oil India stated on the blowout of gas well in Tinsukia stating that there was production loss of 254 MT of Crude Oil and 1.02 MMSCM of Natural Gas as reported. Cumulative loss since May 27 has been 17,071 MT Crude oil and 39.59 MMSCM of natural gas.
• Eclerx Services: Post buyback offer, SBI Mutual Funds has increased its stake from 4.72% to 4.99% in the company.
• United Spirits to subscribe 19.5 lakh compulsory convertible preference share in Hip Bar for Rs 1.95 crore. Revised shareholding in Hip Bar is expected to be 26% in Hip Bar.

Nifty Earnings

Bharti Infratel Q1 (Consolidated,QoQ)

• Revenue down 3.28% at Rs 3,505 crore (Est Rs 3,587crore)
• Net profit up 8.4% at Rs 704 crore (Est Rs 737 crore)
• Ebitda up 6.4 % at Rs 1,807 crore (Est Rs 1,813cr)
• Margins at 51.6 % vs 46.9% (Est 50.5%)
• Tenancy ratio at 1.82 times versus 1.84 times (Est 1.84 times)
• Reported an increase in quarterly profit despite lower rentals and modest tenancy additions
• The long stop date for the Infratel-Indus merger had been extended by the Board of Directors till August 31

Tech Mahindra Q1 (Consolidated,QoQ)

• $ Revenue down 6.7% at $1,208 million (Est $1,185 million)
• Revenue down 4% at Rs 9,106 crore (Est Rs 9,000 crore)
• Net profit up 20.9% at Rs 972 crore (Est Rs 749 crore)
• EBIT up 25.3% at Rs 917 crore (Est Rs 809 crore)
• Margins at 10.1% versus 7.7% (Est 9%)
• Posts earnings ahead of consensus expectations
• Margins expand due to one-off expenses in base quarter

Other Earnings

Bharat Electronics Q1 (Standalone,YoY)

• Revenue down 20.5% at Rs 1,670.6 crore (Est Rs 1,488 crore)
• Net profit down 73.6% at Rs 54.1 crore (Est Net loss at Rs 68 crore)
• Ebitda down 57.8% at Rs 146.7 crore (Est Ebidta loss at Rs 4 crore)
• Margins at 8.78% versus 16.6%
• Order book stood at Rs 53,752 cror

Nippon Life India AMC Q1 (Standalone,YoY)

• Revenue down 30% at Rs 215.4 crore
• Net profit up 22% at Rs 149.6 crore
• Other Income 2.8 times at Rs 98.8 crore
• Net Income higher due to strength in retail segment and cost efficiencies

United Spirits Q1 (Standalone, YoY)

• Revenue down 53.6% at Rs 1,030.2 crore (Est Rs 930 crore)
• Net loss at Rs 215.3 crore versus Net profit at Rs 197.4 crore (Est Net loss at Rs 79 crore)
• Ebitda loss at Rs 77.6 crore versus Ebidta gain at Rs 395.1 crore (Ebidta gain at Rs 192 crore)
• Exceptional loss of Rs 75 crore due to Covid-19 related promotional program
• Negative operating numbers driven by contraction in gross margin, negative impact of operating leverage, and Covid-19 induced ageing related provisions.
• Volume down 49% at 9.8 EUm

Pfizer Q2CY2020 (Standalone,YoY)

• Revenue down 5.42% at Rs 514.9 crore
• Net profit up 10.4% at Rs 124.5 crore
• Ebitda up 12% at Rs 186.2 crore
• Margins at 36.2% versus 30.5%
• Margins improve due to lower other expenses
• Raw material cost at % of sales at 34.5% versus 32.1%
• Hospitals and Vaccines business have a higher impact as compared to the established products business
• Result impacted by by divestment of rights and interests in certain brands in December 2019.

Earnings Today

• Nestle
• UltraTech Cement
• IndusInd Bank
• Yes Bank
• NIIT Technologies
• Castrol India
• Sanofi India
• Tata Coffee
• Greenlam Industries
• Healthcare Global Enterprises
• Orient Cement
• Quess Corp
• Sunteck Realty
• RBL Bank
• Hexaware Technologies
• HT Media
• IDBI Bank
• IDFC First Bank
• IL&FS Investment Managers
• Jiya Eco-Products
• Max Ventures and Industries
• Muthoot Capital Services
• Religare Enterprises
• Welspun Corp
• Tinplate

Pledged Share Details

• Adani Enterprises promoter SB Adani Family Trust released pledge of 1.11 crore shares on July 24
• Adani Ports & SEZ promoters revoked pledge of 1.9 crore shares on July 24
• Adani Transmission promoter SB Adani Family Trust revoked pledge of 16.15 lakh shares on July 24

(As Reported On July 27)

Bulk Deals

• Best Agrolife: Resonance Opportunities Fund acquired 1.12 lakh shares (0.51%) at Rs 610.35 per share
• Infibeam Avenues: Ravi Omprakash Agrawal acquired 34.69 lakh shares (0.52%) at Rs 74.85 per share

Who’s Meeting Whom

• Meghmani Organics to meet Abakkus Asset Managers on July 28
• Tata Steel to meet Kotak Securities, JP Asset Management and Systematix Shares and Stocks from July 28-29
• MCX to meet ICICI Pru Life Insurance, Premji Investment and other investors from July 28-Aug. 3

Trading Tweaks

• AGM Date: VIP Industries, Punjab National Bank, Union Bank of India, Bayer Cropscience, PNB Housing Finance, ADF Foods, Mahindra EPC Irrigation
• Rights Issue Opens: M&M Financial Services
• Ex-date For Rights Issue: Spencer’s Retail (2:15, at a premium of Rs 70 per share)
• Fund Raising: Godrej Properties, Havells
• Price Band Revised From 10% To 5%: Hindustan Foods
• Price Band Revised From 20% To 10%: INEOS Styrolution
• Move Into ASM Framework: Indo Count Industries
• Move Into Short-Term ASM Framework: Tanla Solutions, VA Tech Wabag, Majesco, Pricol

Insider Trades

• Mindtree promoter Siddharth Kumar sold 6,531 shares on July 24

(As Reported On July 27)

F&O Cues

• Nifty July futures closed at 11,122, discount 10 points versus discount of 14 points
• Nifty July futures open interest down 15%, sheds 14.5 lakh shares in open interest
• Nifty Rollovers across all series 37%
• Nifty Bank July futures closed at 22,859, premium 10 points versus premium 11 points
• Nifty Bank July futures open interest down 9%, adds 1.2 lakh shares in open interest
• Nifty Bank Rollovers across all series 29%

Nifty Monthly Expiry: July 30

• Max open interest on call side at 11,500 strike (45.2 lakh shares)
• Max open interest on put side at 11,000 strike (41 lakh shares)
• Active options: 11,000 Put (+5.6 lakh shares), 11,200 Call (+6.9 lakh shares)

F&O MOVERS CHART NOT IN YET