A visitor watches stock movements displayed on large video screens inside the Saudi Stock Exchange in Riyadh, Saudi Arabia. (Photographer: Simon Dawson/Bloomberg)

Stocks To Watch: Biocon, BSE, Ceat, CG Power, Titan, Vedanta, Zee Entertainment

Asian stocks dropped after the U.S. threat of higher tariffs on imports from China pushed American equities down the most since March. The yen held near a six-week high.

The brunt of equity declines was in Japan, with losses also seen in Australia and South Korea. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell fell 0.65 percent to 11,464.50 as of 7:05 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.

Indian ADR

Stocks To Watch: Biocon, BSE, Ceat, CG Power, Titan, Vedanta, Zee Entertainment

Stocks To Watch

  • Alembic Pharma entered into a joint venture contract with SPH Group and Adia to promote and sell pharma products for the Chinese markets. Subsequently, the JV plans to set up a manufacturing facility in China. The pharma company has a 44 percent stake in this arrangement.
  • Biocon retained economic interest in global commercialization of Hulio, a biosimilar drug which is licensed by Mylan and will gain a share of profits from global markets.
  • Essel Group said Zee Entertainment stake sale at advanced stage, according to a Bloomberg report.
  • BSE board approved a buyback of 67.6 lakh shares, or 13.06 percent of total capital of the company at a price of Rs 680 per share aggregating to Rs 460 crore and appointed Justice Vikramjit Sen as the Chairman.
  • IDBI Bank board to consider passing enabling resolution for equity issue on May 13.
  • Dewan Housing Finance received the National Housing Bank’s nod to sell entire stake of 9.15 percent in Aadhar Housing Finance to Blackstone’s arm.
  • India Grid Trust: Investment Manager approved preferential issue and allots 30 crore units at price of Rs 83.89 per unit aggregating to Rs 2,514 crore, to institutional investors.
  • Hindustan Unilever: NCLT ordered meeting of shareholders and unsecured creditors on June 29 to consider and approve the amalgamation of the company and GlaxoSmithKline Consumer Healthcare.
  • Mcleod Russel: ICRA revised the long term rating from ‘A’ to ‘BBB-‘
  • FDC said that a fire incident occurred in its Maharashtra plant on May 3. The company said production was disrupted for a few hours and there will not be any significant impact on the operations of the company and it also has adequate insurance coverage.
  • Bank of Maharashtra revised its MCLR across various tenors with effect from May 7. Base rate remains unchanged at 9.5 percent. One-month rate at 8.25 percent and one-year rate at 8.7 percent.
  • Vakrangee announced alliance with Dish TV for distribution of subscription recharge and providing collection services.

New Listing

  • Neogen Chemicals shares to start trading on exchnages after IPO gets oversubscribed 41.2 times at Rs 215 apiece.

Also read: Neogen Chemicals IPO: Here’s All You Need To Know

Nifty Earnings To Watch

  • Titan

Other Earnings To Watch

  • Rain Industries
  • Procter & Gamble Hygiene and Health Care
  • Alembic Pharmaceuticals
  • Axiscades Engineering Technologies
  • Tata Communications
  • Chennai Petroleum Corporation
  • KEC International
  • CroreeditAccess Grameen
  • Dhanlaxmi Bank
  • JMC Projects
  • JK Paper
  • JSW Holdings
  • Dishman Carbogen Amcis
  • EID Parry India
  • Shree Renuka Sugars
  • Emami Paper Mills
  • Gillette India
  • Indraprastha Medical Corporation
  • Kokuyo Camlin
  • KSB
  • MAS Financial Services
  • Saregama India
  • Satin Creditcare Network
  • Shriram Asset Management
  • Shriram Transport Finance
  • Srikalahasthi Pipes
  • Kopran

Earnings Reaction To Watch

Vedanta (Q4 Consolidated, YoY)

  • Revenue down 15 percent to Rs 23,468 crore.
  • Net Profit down 46 percent to Rs 2615 crore.
  • Ebitda down 20 percent to Rs 6,135 crore.
  • Margin at 26.1 percent versus 27.8 percent.
  • Exceptional gain of Rs 2,869 crore in base quarter.

Also read: Q4 Results: Vedanta’s Profit Dips On Lower Copper, Zinc Volumes

Ceat (Q4 Consolidated, YoY)

  • Revenue up 4.4 percent to Rs 1,760.5 crore.
  • Net profit down 16.6 percent to Rs 64.3 crore.
  • Ebitda down 17.8 percent to Rs 162.4 crore.
  • Margin at 9.2 percent versus 11.7 percent.
  • Exceptional loss of Rs 40.5 crore versus exceptional loss of Rs 24.6 crore.
  • Other income up 4.4 times to Rs 30.6 crore.
  • Declares dividend of Rs 12 per share.

ABB India (Q1 Calendar year 2019, YoY)

  • Revenue up 18.1 percent to Rs 1,850.3 crore.
  • Net profit up 13.4 percent to Rs 116.2 crore.
  • Ebitda up 62.6 percent to Rs 145.5 crore.
  • Margin at 7.9 percent versus 5.7 percent.
  • Finance cost down 87 percent to Rs 2.6 crore.

Essel Propack (Q4 Consolidated, YoY)

  • Revenue up 10.4 percent to Rs 693.7 crore.
  • Net profit up 17 percent to Rs 52.4 crore.
  • Ebitda up 13 percent to Rs 131.5 crore.
  • Margin at 19 percent versus 18.5 percent.

BSE (Q4 Consolidated, YoY)

  • Revenue down 20 percent to Rs 115.7 crore.
  • Net profit down 16.4 percent to Rs 51.9 crore.
  • Ebitda loss to Rs 0.1 crore versus ebitda gain of Rs 34.6 crore.
  • Declares dividend of Rs 25 per share.

Brigade Enterprises (Q4 Consolidated, YoY)

  • Revenue up 75.3 percent to Rs 760 crore.
  • Net profit up 3.3 times to Rs 59.7 crore.
  • Ebitda up 59.9 percent to Rs 215.4 crore.
  • Margin at 28.3 percent versus 31.1 percent.
  • Exceptional loss of Rs 11.5 crore in base quarter.
  • Deferred tax payable to Rs 49.1 crore versus deferred tax reversal of Rs 13.2 crore.
  • Real-estate segment revenue up 2 times to Rs 593.3 crore.
  • Hospitality segment revenue up 37 percent to Rs 89.6 crore.
  • Leasing segment revenue up 12 percent to Rs 86.5 crore.

Mahindra Logistics (Q4 Consolidated, YoY)

  • Revenue up 13.7 percent to Rs 1,014.7 crore.
  • Net profit up 14.4 percent to Rs 23.9 crore.
  • Ebitda up 8.2 percent to Rs 40.9 crore.
  • Margin at 4 percent versus 4.2 percent.
  • Employee expenses up 19 percent to Rs 71.4 crore.

Gujarat Borosil (Q4, YoY)

  • Revenue up 13.3 percent to Rs 62.1 crore.
  • Net profit down 71 percent to Rs 0.9 crore.
  • Ebitda up 11.3 percent to Rs 7.9 crore.
  • Margin at 12.7 percent versus 13 percent.
  • Exceptional loss of Rs 2 crore in base quarter.
  • Deferred tax reversal at Rs 1.8 crore versus Rs 4 crore.

Bulk Deals

CG Power & Industrial Solutions

  • Bharti SBM Holdings acquired 65.1 lakh shares (1.04 percent) to Rs 36.5 each.

Prime Focus

  • Marina IV LP acquired 41.8 lakh shares (1.4 percent) to Rs 60.62 each.
  • Standard Chartered Private Equity (Mauritius) sold 41.8 lakh shares (1.4 percent) to Rs 60.62 each.

Pledge Share Details

  • Emami promoters created a pledge of 44 lakh shares on April 30.
  • Jubilant FoodWorks promoter Jubilant Consumer revoked a pledge of 39.72 lakh shares from May 2-3.
  • Mcleod Russel promoter Woodside Parks invoked pledge of 21.42 lakh shares from April 30-May 3.
  • Mercator promoter & director Harish Kumar Mittal invoked pledge of 17.5 lakh shares from April 30-May 3.

Trading Tweaks

  • Neogen Chemicals to be listed on the bourses.
  • Uniply Industries to move into short term ASM Framework.
  • KPIT Technologies price band revised to 20 percent.
  • Uniply Industries price band revised to 10 percent.
  • Mcleod Russel price band revised to 5 percent.

Who’s Meeting Whom

  • MCX to meet SBI MF on May 8.
  • Tata Steel to meet Myriad Asset Management on May 15.
  • IRB InvIT Fund to meet Birla Sunlife, HDFC Life and other investors on May 8.

Insider Trading

  • Mindtree: L&T acquired 14.7 lakh shares on May 7.
  • RPG Lifesciences promoter Ektara Enterprises acquired 14,000 shares from May 3-6.

Money Market Update

  • The rupee on Tuesday weakened for the second straight day to close at 69.43/$ versus Monday’s closing of 69.41/$.

F&O Cues

Futures –May series

Nifty

  • Nifty futures closed trading at 11,541.9, premium of 44 points versus 58 points.
  • Nifty open interest down 1 percent sheds 1.5 lakh shares in open interest.

Bank Nifty

  • Bank Nifty futures closed trading at 29,418.4, premium of 130 points versus 190 points.
  • Bank Nifty open interest up 6 percent, adds 1 lakh shares in open interest.

Options

  • Nifty PCR at 1.13 versus 1.30 (across all series).

Nifty Weekly Expiry, 9 May

  • Max open interest on call side at 11,800 (28.1 lakh shares).
  • Max open interest at Put side at 11,500 (12 lakh shares).
  • Max open interest addition seen at 11,600 Call (+16.6 lakh shares), 11,550 Call (+9 lakh shares).
  • Max open interest shedding seen at 11,600 Put (-5.8 lakh shares), 11,700 Put (-3.4 lakh shares).

Nifty Monthly Expiry, 30 May

  • Max open interest on call side at 12,000 (15.8 lakh shares).
  • Max open interest on Put side at 11,000 (23.2 lakh shares).

Brokerage Radar

On Vedanta CLSA

  • Maintained ‘Sell’; cut target price to Rs 135 from Rs 170.
  • Q4 Ebitda ahead due to lower aluminium and zinc cost and higher zinc volume.
  • Slow volume ramp-up in zinc & oil and increased costs in HZL are concerns.
  • Zinc and oil businesses benefiting from recent uptick in commodity prices.
  • Concerns on related party transaction and future use of cash to overshadow earnings outlook.

JPMorgan

  • Maintained ‘Overweight’ with target price of Rs 300.
  • Positive Q4 brings a tough FY19 to an end.
  • For FY20, see more positive as key projects coming through.
  • Zinc India and Zinc International—volume growth to pick up from here.

Morgan Stanley

  • Maintained ‘Equal-weight’ with target price of Rs 176.
  • Core Ebitda inline with estimates.
  • Management focus remains on growth projects.
  • Improved domestic coal availability and bauxite lend improved cost visibility.

JPMorgan on Embassy Office Parks

  • Maintained ‘Overweight’ with target price of Rs 360.
  • Steady low-risk compounding; yield+growth offers attractive internal rate of return setup.
  • REIT structure can deliver outperformance versus index.
  • Expect dividend per share growth of 6 percent over FY20-23.

CLSA on Kansai Nerolac

  • Industrial under severe pressure; outlook subdued at least for next two quarters.
  • Decorative on good footing; management confident of double-digit volume growth in FY20.
  • Volatility in crude and exchange rates remain a concern.

CLSA on Indian Media

  • Zee network gains viewership share in April under new TRAI regime.
  • Sun TV share has declined driven by lower share in Tamil.
  • Pay channel viewership in rural markets is rising which could drive subscription revenues.
  • Near-term ad revenue for broadcasters will likely be impacted, in longer run the new subscription regime will be beneficial.

CLSA on India Oil & Gas

  • If current government comes back to power, expect it to take forward some unfinished policies.
  • Expect policies to slash LPG subsidies further.
  • Big reforms – gas pricing hub, GST and unified tariff – possible in gas sector.
  • More PSU M&As, stake sales and excise duty hikes are possible overhangs.
  • ONGC, Oil India and Gail are likely gainers from further reform.