Stocks To Watch: Bharat Dynamics, Cipla, Hero MotoCorp, Indraprastha Gas, Shalimar Paints

Asian stocks followed their U.S. counterparts lower after President Donald Trump’s decision to slap tariffs on China heightened concern a trade war could hurt global growth.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell below 10,000-mark

Here Are The Stocks To Watch Out For In Friday’s Trade

• Anjani Portland Cement to set up an additional clinker producing unit for Rs 400 crore.
• Future Market sold Ahmedabad city mall for Rs 16.54 crore.
• Schaeffler India said shareholders and creditors vote for merger of INA India, LuK India with self.
• Hero Motocorp increased stake in Colombia joint venture to 68 percent from 51 percent.
• L&T Technology Services won multi-million-dollar order from German plastic maker Covestro.
• JSW Energy secured order from Punjab State Power Corp for supply of 200 megawatt power.
• 20 Microns subsidiary filed DRHP for IPO.
• REC board approved Rs 60000 crore market borrowing plan for FY19.
• United Spirits to consider stock split on April 13.
• Infosys invested an additional $1.5 million in Waterline Data Science.
• SQS India said German subsidiary completed winding process; awaits tax refund pending with German authorities.
• Shalimar Paints to raise Rs 49.73 crore via rights issue. Board approved issue of 35.52 lakh shares at a price of Rs 140 each.
• Alankit Ltd. sold 49 percent stake in subsidiary Alankit Technologies for Rs 1.07 crore. Also, subsidiary Alankit Life Care received FFMC (Full Fledged Money Changer) License from RBI.
• Mahindra and Ford signed MoUs to co-develop midsize and Compact SUV, EV and connected car solutions.
• Indraprastha Gas: An incentive of Rs 1 lakh will be given to industries to switch over to piped natural gas, according to a proposal in the Delhi budget.
• Cipla received Tentative nod for Darunavir 800MG: FDA (Bloomberg).
• India amended Foreign Trade Policy to provide IGST exemption (Bloomberg).
• Balesh Sharma to be CEO of Idea-Vodafone merged entity.

F&O Setup

• Nifty March Futures closed trading at 10,127.8 premium of 13 points versus 24.9 points.
• March series-Nifty open interest unchanged, Bank Nifty open interest up 7 percent.
• India VIX ended at 15.2, up 1 percent.
• Max open interest for March series at 10,500 call strike, open interest at 62.8 lakh, open interest up 3 percent.
• Max open interest for March series at 10,000 Put, open interest at 58.8 lakh, open interest up 2 percent.

F&O Ban

• In ban: HDIL, IDBI Bank, IFCI, Jet Airways, Jindal Steel, JP Associates, Reliance Communications
• New in ban: Jet Airways
• Out of ban: SAIL

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.

Active Stock Futures

Bulk Deals

• Ashapura Intimates: Promoter Harshad Thakkar bought 3 lakh shares or 1.2 percent equity at Rs 450 each.
• Jubilant Foodworks: William Blair & Co. LLC bought 3.77 lakh shares or 0.6 percent equity at Rs 2260.5 each.
• Shaily Engineering Plastics: HDFC MF bought 50,000 shares or 0.6 percent equity at Rs 1140 each.
• Jindal Drilling: Jindal Drilling & Industries Limited Employees Welfare Trust sold 2.20 lakh shares or 0.8 percent equity at Rs 164.43 each.

Quess Corp

• MEMG Family Office bought 10 lakh shares or 0.7 percent equity at Rs 1023 each.
• Ramdas Pai sold 10 lakh shares or 0.7 percent equity at Rs 1023 each.

Brokerage Radar

HSBC on Bharti Airtel

• Maintained ‘Buy’ with a price target of Rs 590.
• Revenue pressure may continue in the current quarter.
• Focused on adding quality subscribers.
• Remain positive; Expect Bharti gaining market share over the next 12 months.
• Long term market structure improvement to drive sector revenues.
• Several steps being taken to improve balance sheet.

IDFC Securities on Dish TV

• Maintained ‘Outperform’ with a price target of Rs 125.
• Videocon D2H has been merged with and into Dish TV.
• Benefits of merger to be visible incrementally from April.
• Distribution businesses has tremendous economies of scale.
• Expect the merger to yield both revenue and cost synergies.
• Expect 19 percent market share with comfortable net debt-to-ebitda.

JP Morgan on Phoenix Mills

• Maintained ‘Overweight’; raised price target to Rs 710 from Rs 605.
• Double rental growth combined with residential business to boost earnings.
• Expect operating income and net profit to compound at 12 percent and 35 percent respectively over two years.
• Phoenix should generate positive free cash flow from April.
• Funds can be used for additional growth and increase dividend payouts.
• Phoenix remains best proxy plays on retail growth in India.

Macquarie on ICICI Bank

• Maintained ‘Outperform’ with a price target of Rs 425.
• ICICI Securities IPO to bring in around Rs 35-40 billion gains.
• Monetisation and value unlocking continues.
• IPO gains could add roughly about 60 basis points to the CET1 of 13.7 percent of ICICI.
• ICICI Securities IPO priced at expensive multiples.
• Broking business is high cash generating and asset-light; Leads to high dividend payouts.

Kotak Securities on SH Kelkar

• Upgraded to ‘Buy’ from ‘Add’; maintained price target at Rs 325.
• Rating upgrade post the recent sharp correction.
• Raw material disruption impact likely to be temporary.
• RM inflation to get passed on to the customers with lag.
• RM situation could to remain challenging for the current and next quarter.

Nomura on Max Financial Services

• Maintained ‘Buy’ with a price target of Rs 605; implying a potential upside of 39 percent from the last regular trade.
• Most bad news in the price.
• Incremental risk reward better.
• Believe stock underperformance is nearing end.
• Stock trading down on the back of distribution, regulatory and M&A risks.

Nomura on NBCC India

• Upgraded to ‘Buy’ from ‘Neutral’; raised price target to Rs 258 from Rs 250.
• Management meeting boosts confidence.
• Execution hindrances now over.
• Catalysts visible as contract awards and monetisation pick up.
• Recent stock correction provides an entry point.

BoFA ML on Vedanta

• Initiated ‘Buy’ with a price target of Rs 380.
• Business mix is favorable with most coming from zinc.
• Zinc is preferred metal with strong pricing outlook.
• High visibility on growth with projects in advanced stages.
• Outlook for aluminium, oil and gas improving/stabilizing.
• Expect Ebitda to compound at 21 percent over the fiscal 2017-2019.
• Deleveraging to continue with FCF yield of 15 percent and 17 percent respectively over the next two fiscals.