Stocks To Watch: Cipla, Godrej Industries, Hero MotoCorp, IDFC First Bank, InterGlobe Aviation, JSW Steel, UPL

Asian stocks saw a muted open Friday as rising tension between the U.S. and China added to concern about the pace of economic recovery from the coronavirus pandemic. U.S. futures edged higher. Stocks were little changed in Tokyo, Seoul and Sydney, while futures in Hong Kong pointed lower.

Here are the stocks to watch in trade today:

• Cipla has received final approval for its ANDA for generic version of Migranal by the U.S. FDA. Drug is a nasal spray used to treat migraine headache. (Bloomberg News)
• InterGlobe Aviation said in a press release that it will be resuming domestic flights from May 25 , in a phased manner as per government directives. Company also said that it will operate 97 Kerala reparation flights to the Middle East.
• Bandhan Bank update on cyclone Amphan: In the Bank’s area of operations 49 banking units (micro banking outlets) in five districts were impacted, out of which 45 are operational on May 21. Bank expects these 5 outlets to resume operations shortly. Business of around 65,000 of micro banking borrowers, amounting to an exposure of approximately Rs 260 crore, could be impacted due to the cyclone. The major impact has been in the district of South 24 Parganas. Amphan affected portfolio expected to regularize by the third quarter of fiscal year 2021.
• GMR Infra: MIHAN India has cancelled the contract for development of Nagpur Airport awarded to the comany. (Bloomberg News)
• Hero MotoCorp: LIC has increased its stake from 5.14 percent to 7.15 percent from June 2017 till May 19, this year.
• ONGC and NTPC have signed MoU to set up joint venture for renewable energy business. As per the MoU, NTPC and ONGC will explore and set up Renewable Power assets including offshore wind, in India and overseas, and explore opportunities in the fields of sustainability, storage, E-mobility and ESG (Environmental, Social and Governance) compliant projects.
• Indian Oil Corporation has cut the run rate of its Haldia refinery in eastern India’s West Bengal state to half its capacity after the cyclone disrupted electricity and fresh water supplies. The state-run refiner will review the supply situation on May 22 to decide on Haldia operations. Indian Oil said operations at its coastal refinery in adjoining Odisha state is normal and running at about 70 percent of capacity. Indian Oil’s Paradip refinery has a capacity of 15 million tons a year, while the Haldia plant can process 7.5 million tons of crude oil annually. (Bloomberg News)
• Bodal Chemicals to consider amalgamation of Trion Chemicals (wholly owned subsidiary) with self and to re-appoint Suresh J. Patel as chairman and managing director on May 27.
• PFC has incorporated 5 SPVs for development of transmission schemes in Rajasthan and Andhra Pradesh.
• SRF stated that its BOPET film line has been commissioned and capitalized on May 21, at a cost of Rs 385 crore.
• Coforge (formerly NIIT Technologies) has offered to buy-back 19.56 lakh shares representing 3.13 percent of total issued and paid-up capital at a price of Rs 1,725 per shares aggregating to Rs 337.46 crore. Buyback price is at premium of 20 percent to closing price on May 21. Buyback opens on May 29 and closes on June 11. Record date was March 12.
• Music Broadcast has partnered with Spotify, to provide the former’s content. The radio channel’s audio intellectual property rights will be available to millions of users on Spotify. Radio City will provide content in 6 languages, including Hindi, Gujarati, Kannada, Tamil, Punjabi, and English, as well as across genres such as romance, comedy, crime, poetry, among others.
• Emami: CCI has approved acquisition of 100 percent stake in Emami Cement by Nuvuc Vistas.
• TTK Prestige update on Covid-19: Sales that could not be effected in the March quarter due to shutdown is estimated at Rs 70 crore. Both at company level and at channel level sufficient levels of finished goods maintained to meet retail demand pursuant to easing of lockdown conditions. After May 6, retail operations has started in Karnataka, Kerala, Goa and Tamil Nadu. Primary sales are expected to break-even by June. Billing operations has started from May 4 and all factories have resumed functioning from May 6. Company expects demand improvement in kitchen improvement in next two quarters and expects to see export customers shifting their sourcing to India from China and are in constant engagement with them.
• GTL Infra stated that due to cyclon Amphan, 2,500 of its radiating towers have been affected. Company’s assets are adequately insured, however, the company cannot assess financial loss of its assets.
• IRB Infra allotted NCDs worth Rs 200 crore on a private placement basis.
• Edelweiss Financial Services: Board approved increasing the limit to make loans from Rs 10,000 crore to Rs 20,000 crore and divestment of company’s investments or assets.
• Info-Edge invests Rs 7.2 crore to acquire stake in a tele health and an e-sports community platforms, respectively.

Resumption Of Operations

• Wheels India
• JK Paper
• Automotive Axles
• Saurashtra Cement
• Arvind
• Gujarat Sidhee Cement
• Jain Irrigations
• Anup Engineering
• Orient Electric
• Sheela Foam

Other Earnings

VST Industries Q4 (Standalone, YoY)

• Revenue up 7 percent at Rs 291.5 crore
• Net profit up 33.2 percent at Rs 70.6 crore
• EBITDA up 16.7 percent at Rs 94.8 crore
• Margins at 32.5 percent versus 29.8 percent
• Raw Material Cost as percent of Sales at 48 percent versus 53.6 percent
• Company says it doesn’t foresee any material impact in the recoverability of the carrying value of the assets due to Covid-19 impact
• Declared dividend of Rs 103 per share which is dividend yield of 3.3 percent
• Margins increase due to lower material costs

BSE Q4 (Consolidated, YoY)

• Revenue up 3 percent at Rs 119.6 crore
• Net loss at Rs 1.3 crore versus Net profit at Rs 51.9 crore
• EBITDA loss at Rs 22.1 crore versus EBIDTA loss at Rs 3.1 crore
• Investment Income down 42 percent at Rs 30.5 crore and Other Income down 59 percent at Rs 5.7 crore
• Declared dividend of Rs 17 per share which is dividend yield of 4 percent
• Provision of Rs 18.6 crore for additional contribution to Investor Services Fund and Investors Protection Fund
• Company received observations from SEBI in respect of inspection conducted from 2005-17 in which company was asked to plough back to these funds against expenses charged earlier

Quickheal Technologies Q4 (Consolidated, QoQ)

• Revenue down 2.1 percent at Rs 64.3 crore
• Net profit down 55.1 percent at Rs 8 crore
• EBITDA down 66.8 percent at Rs 7.7 crore
• Margins at 12 percent versus 35.3 percent
• Bottom line numbers impacted due higher purchase cost of security software products

Hawkins Cookers Q4 (Standalone, YoY)

• Revenue down 21 percent at Rs 146 crore
• Net profit down 30.4 percent at Rs 9.4 crore
• EBITDA down 34.1 percent at Rs 14.5 crore
• Margins at 9.9 percent versus 11.9 percent
• No dividend declared due to Covid-19 impact

Jubilant Industries Q4 (Consolidated, YoY)

• Revenue down 12.6 percent at Rs 124.4 crore
• Net loss at Rs 1.9 crore versus Net loss at Rs 5.2 crore
• EBITDA down 21.1 percent at Rs 6 crore
• Margins at 4.8 percent versus 5.3 percent
• Agri product segment revenue down 14 percent at Rs 40.3 crore
• Performance polymer segment revenue down 12 percent at Rs 84.1 crore

Earnings Today

• UPL
• JSW Steel
• 3i Infotech
• Alembic Pharmaceuticals
• Bosch
• Trent
• Essel Propack
• Honeywell Automation India
• Agri- Tech
• IDFC First Bank
• Neuland Laboratories
• Orient Cement
• Supreme Industries
• Birla Corporation
• BASF
• Bayer Cropscience
• Godrej Industries
• Vesuvius
• Wabco India

Pledged Share Details

• GMR Infra promoter GMR Enterprises released pledge of 3.72 crore shares on May 20
• Adani Ports & SEZ promoter Adani Tradeline revoked pledge of 4.84 lakh shares on May 19
• Max India promoter Max Ventures Holdings created pledge of 5 lakh shares on May 19

(As Reported On May 21)

Who’s Meeting Whom

• India Energy Exchange to meet Affirma Capital, Cooper Investment and other investors from May 25-28

Trading Tweaks

• Move Into Short-Term ASM Framework: Biofil Chemicals & Pharmaceuticals, FCS Software Solutions
• Move Out Of Short-Term ASM Framework: NDTV, Hathway Cable & Datacom, Alembic Pharmaceuticals, Lumax Auto Technologies

Insider Trading

• IFCI promoter Government of India acquired 20 crore shares on May 21
• Marico promoter Archana Mariwala acquired 3.23 lakh shares on May 18
• TV Today Network promoter Aroon Purie acquired 1.84 lakh shares on May 20
• Future Retail promoter Future Coupons acquired 1.48 crore shares on May 19

(As Reported On May 21)

F&O Cues

Index Futures

• Nifty May futures closed at 9075, discount 30 points versus 0.1 points premium
• Nifty May futures open interest down 3.3 percent, sheds 2.5 lakh shares in open interest
• Nifty Bank May futures closed at 17645, discount of 90 points versus 4 points discount
• Nifty Bank May futures open interest up 8.6 percent, adds 62,900 shares in open interest

Options

• Nifty PCR at 1.12 versus 1.18 (across all series)

Nifty Monthly Expiry: May 28

• Max open interest on call side at 10000 (28.6 lakh shares)
• Max open interest on put side at 9000 (32.8 lakh shares)
• Active options: 9000 Put (+7.2 lakh shares), 9200 Call (+4.5 lakh shares)