Stocks To Watch: Britannia, Coffee Day, Cyient, HCL Tech, L&T Finance Holdings, L&T Technology Services, PTC India

Asian stocks were mixed Friday amid signs of fragility in the U.S. tech rally and ongoing Sino-American tensions. The dollar dipped. Shares fluctuated in Japan, and saw modest gains in South Korea and Australia.

Here are the stocks to watch in trade today:

• BPCL’s arm has finalized senior debt financing of $ 14.9 billion for 2-Train LNG project for which final investment decision was made on June 2019.
• PTC India is exploring opportunities for monetization of its investment in PTC India Financial Services and to sell its controlling stake. PTC India has 65% stake in the PTC India Financial Services, whose market value stands at Rs 884 crore as on July 16. Last date of submission of interest in bidders is July 31.
• Endurance Tech’s Italian arm to undertake consolidation of its foundry activities whereby the plant operations, including workmen and necessary plant & machinery, from Grugliasco are shifted to the Chivasso plant. Consequent to this consolidation of plant operations, the Endurance Group in Europe now has nine manufacturing plants, of which six are in Italy and three in Germany.
• Century Plyboard said that operations at Joka unit in West Bengal has normalized after partial suspension of the plant due to cyclone Amphan on May 20.
• Symphony on Covid-19 impact: Several orders were cancelled towards the end of March. Current quarter sales has been severely impacted. Company’s OEMs are facing production constraints because of labour shortages and logistics bottlenecks.
• Aavas Financiers: SBI Mutual Fund reduced stake from 3.52% to 3.06% on July 15.
• L&T Technology Services to acquire Orchestra Technologies for $25 million, to be paid in tranches. The target company is a U.S. based a specialist technology solutions provider for the telecom industry. The acquisition of Orchestra will enhance offerings in the areas of network engineering & enterprise mobility and provide strategic access to telecom service providers who are investing in next generation digital systems for 5G and internet of things networks.
• Thomas Cook India has inked agreement to take over the portfolio of Dnata’s Travel India’s corporate travel business.
• Godrej Industries allotted NCDs worth Rs 750 crore.

Other Earnings

Cyient Q1 (Consolidated, QoQ)

• Revenue down 7.62% at Rs 991.7 crore (Est Rs 953 crore)
• Net profit up 76.2% at Rs 81.4 crore (Est Rs 52.6 crore)
• Ebit up 22.2% at Rs 40.2 crore (Est Rs 35.8 crore)
• Margins at 4.05% versus 3.06%
• Impairment of non-current assets of Rs 40 crore in base quarter
• Higher profit due to lower employee, lower other expenses and higher other income

L&T Finance Holdings Q1 (Consolidated, YoY)

• Net Interest Income down 15.7% at Rs 1,408.9 crore (Est Rs 1,347 crore)
• Net profit down 73% at Rs 148.3 crore (Est Rs 242 crore)
• Incremental provision of Rs 577 crore out of which for Covid-19 it is Rs 277 crore, in current quarter
• Exceptional gain of Rs 225.6 crore on the divestment of entire stake in the subsidiary company, L&T Capital Market.
• Reduction in Moratorium on Retail lending book at 44% versus 79% QoQ
• Overall moratorium for Infrastructure finance, IDF and Real Estate borrowers remained close to 40%.
• Disbursements momentum expected to pick up especially in rural portfolio
• Raised Rs 3,200 crore till July 15

L&T Technology Services Q1 (Consolidated, YoY)

• Revenue down 3.91% at Rs 1294.7 crore (Est Rs 1,301 crore)
• Net profit down 42.5% at Rs 117.2 crore (Est Rs 161 crore)
• Ebidta down 24.5% at Rs 205.9 crore (Est Rs 237 crore)
• Margins at 15.9% versus 20.2%
• Margins impacted by higher employee costs
• Other income of Rs 56.5 crore in base quarter

Earnings Today

• HCL Tech
• Britannia Industries
• Coffee Day Enterprises Ltd
• G N A Axles
• Granules India
• ICICI Lombard General Insurance
• Hathway Cable & Datacom

Pledged Share Details

• Future Consumer promoter Future Capital Investment invoked pledge of 1.8 crore shares on July 16
• Omaxe promoter Guild Builders created pledge of 63 lakh shares from July 13-15
• JSW Energy promoter Glebe Trading revoked pledge of 47.67 lakh shares on July 13

(As Reported On July 16)

Bulk Deals

• Eclerx Services: Eclerx Services (Buyback 2020) acquired 14 lakh shares (3.79%) at Rs 524.68 per share and Franklin Templeton Mutual Fund sold 11.26 lakh shares (3.05%) at Rs 525.01 per share

Who’s Meeting Whom

• 5paisa Capital to meet Mathews Asia, Alchemy Capital and LOBCO on July 20
• Prince Pipes and Fittings to meet Chrys Capital Advisors, Motilal Oswal Securities and Nirmal Bang on July 17

Trading Tweaks

• AGM Date: Karnataka Bank, RBL Bank, LT Technology Services, Nipon Life India AMC, Indian Hotels, Shankara Building Products, Srikalahasthi Pipes
• Fund Raising: Can Fin Homes
• Price Band Revised From 20% To 10%: Sangam
• Move Into Short-Term ASM Framework: Paisalo Digital, Silly Monks Entertainment, Vertoz Advertising.
• Move Out Of Short-Term ASM Framework: Magadh Sugar & Energy, South Indian Bank,

F&O Cues

• Nifty July futures closed at 10,714, premium of 26 points versus premium of 10 points
• Nifty July futures open interest up 10%, adds 9.5 lakh shares in open interest
• Nifty Bank July futures closed at 21,571, premium of 26 points versus premium of 20 points
• Nifty Bank July futures open interest down 5.5%, sheds 88,000 shares in open interest

Nifty Monthly Expiry: July 23

• Max open interest on call side at 11,000 strike (13.5 lakh shares)
• Max open interest on put side at 10,500 strike (13.8 lakh shares)
• Active options: 10,500 Put (+9.2 lakh shares), 11,000 Call (+7.3 lakh shares)

Nifty Monthly Expiry: July 30

• Max open interest on call side at 11,000 strike (25.7 lakh shares)
• Max open interest on put side at 10,000 strike (34.5 lakh shares)

Ban List

• In Ban: Canara Bank, Century Textiles, Idea, L&THF, PNB, Sun TV
• Out of Ban: Equitas, Escorts, Mindtree, SAIL