Stocks To Watch: Cummins India, Infosys, IGL, Muthoot Finance, Pidilite

Asian markets are retreating at the start of trade as investors continue to weigh a rise in Covid-19 cases in some parts.

Haven assets like the Japanese Yen have edged higher. "The market is searching for a new catalyst," Sameer Sharma of Wells Fargo Investment Institute told Bloomberg TV in an interview.

Here are the stocks to watch in trade today:

• HDFC AMC offer for sale to non-retail investors gets 2.7 times demand.
• Telangana HC has set aside sales tax commissioner's assessment notice against Infosys. Notice was issued in March against for recovery of sales tax for assessment year 2015-16.Infosys argued that an opportunity of hearing was not provided by tax department. High Court set aside the notice saying tax department failed to follow principles of natural justice as the time for hearing was fixed during Covid-19 induced lockdown.
• India Cements clarified on the news of Radhakishan Damani considering taking control of the company as factually incorrect.
• DCB Bank stated that amounts in overdue categories, where the moratorium/deferment was extended as on March 31, 2020 was Rs.1908.08 crores. As on May 31, amount stands reduced to Rs 710 crore.
• Cummins India to not provide revenue guidance for fiscal year 2021 at this point of time. Customers have resumed operations partially. Company expects a significant impact to its next quarter results due to nationwide lockdown and consequential impact on economy.
• Hexaware Tech: Board to consider due diligence report for de-listing proposal on June 20.
• Borosil Renewables said that production from its furnace at Gujarat plant has started, after maintenance. Production will continue to remain unchanged.
• JK Cement on Covid-19 impact: All the four integrated and two split grinding units of grey Cement as well as one unit of wall Putty and white cement are operational and despatches are taking place from all the plants. On account of lower power demand, power plant are not consistently operating resulting lower fly ash availability. Therefore, fly ash is being secured from the other power plants having more lead distance. Capex in current financial year restricted to Rs 500 crore (including balance expenditure on the 4.2 million tonnes capacity expansion). Out of Rs.100 crores will be from internal accruals and balance would be from borrowed funds.
• NCC promoter AVSR Holdings increased stake from 6.41% to 9% over the last three years.
• Karnataka Bank launched a special health insurance policy to cover the uncertainties posed by COVID -19 pandemic. Bank in association with Universal Sompo General Insurance has launched this health policy. At a nominal premium of Rs 399 , one can avail health cover for COVID -19 under this policy. This policy will cover in-patient hospital expenses up to Rs 3 lakh, outpatient treatment expenses of Rs 3,000 and will also provide a sum of Rs 1,000 per day towards expenses incurred towards 14 days of quarantine at a government or military hospital. The validity of this policy is for a period of 120 days. The policy is available to all the customers of the Bank in the age group of 18-65 years.
• Union Bank of India said that the first two quarters of fiscal 2021 may see a revenue impact due to Covid-19, however normalcy is expected in the second half.
• CreditAccess Grameen: Board approved re-appointment of Udaya Kumar Hebbar as MD and CEO till June 2023.
• JK Cement: Board approved raising Rs 250 crore via NCDs.
• Somany Ceramics to consider raising capital via debt on June 25.
• HT Media to consider raising funds via NCDs on June 26.

Other Earnings

Pidilite Industries Q4 (Consolidated, YoY)

• Revenue down 6% at Rs 1,545 crore (Est Rs 1,570 crore)
• Net profit down 33% at Rs 157.5 crore (Est Rs 228 crore)
• Ebidta up 8% at Rs 301 crore (Est Rs 292 crore)
• Margins at 19.5% vs 17% (Est 18.6%)
• Inline numbers, operationally strong numbers
• Higher other income in base quarter (Rs 56 crore) as compared to Rs 14 crore in current quarter & Exceptional loss of Rs 33 crore in current quarter hurt bottom line
• Lower raw material cost aids operational performance
• Raw material cost as % of sales down 640 basis points to 42.1%
• Exceptional item represents impairment loss on plant and machinery at Dahej Elastomer Project amounting to Rs. 33 crore for current quarter

Indraprastha Gas Q4 (Standalone, YoY)

• Revenue flat at Rs 1,552.5 crore versus Rs 1,542.3 crore (Est Rs 1,597 crore)
• Net profit up 12.4 % at Rs 253.4 crore (Est Rs 274 crore)
• Ebidta up 13.8% at Rs 376.8 crore (Est Rs 381 crore)
• Margins at 24.3% versus 21.5%
• Margins improve due lower raw material costs
• FY20 Volume up 9% at 2,155 million scm

Muthoot Finance Q4 (Standalone, YoY)

• Net Interest Income up 29.5% at Rs 1,580.6 crore (Est Rs 1,596 crore)
• Net profit up 59.2% at Rs 815.1 crore (Est Rs 782 crore)
• Loan Assets up 22% at Rs 41,611 crore
• FY20 Capital adequacy ratio at 25.47 versus 26.05

Fortis Healthcare Q4 (Consolidated, YoY)

• Revenue down 6% at Rs 1,112.9 crore (Est Rs 1,149 crore)
• Net loss at Rs 44.5 crore versus Rs 135.6 crore (Est Net profit at Rs 26 crore)
• Ebidta up 9.39% at Rs 125.8 crore (Est Rs 150 crore) \
• Margins at 11.3% versus 9.7%
• Margins improve due to lower employee costs and zero hospital service fee expenses
• Healthcare segment revenue down 6% at Rs 913.4 crore
• Diagnostics revenue down 8% at Rs 231.9 crore
• Net profit impacted due to the de-recognizing deferred tax asset in respect of one of its subsidiaries

Cummins India Q4 (Standalone, YoY)

• Revenue down 21.5% at Rs 1,052.8 crore (Est Rs 1,227 crore)
• Net profit down 16% at Rs 118.3 crore(Est Rs 142 crore)
• Ebidta down 61.2% at Rs 66.7 crore (Est Rs 123 crore)
• Margins at 6.3% versus 12.8%
• Deferred tax reversal of Rs 24.4 crore in current quarter
• Margins impacted by higher raw material and employee expenses
• Higher other income and deferred tax reversal reduce losses
• Domestic sales down 22% at Rs 775 crore
• Exports sales down 20% at Rs 257 crore

JK Cement Q4 (Standalone, YoY)

• Revenue down 1% at Rs 1,477.4 crore (Est Rs 1,456 crore)
• Net profit down 99.9% at Rs 0.2 crore (Est Rs 144 crore)
• Ebidta up 23.9% at Rs 346.3 cr vs Rs 279.5 cr (Est Rs 290 crore)
• Margins at 23.4% versus 18.7%
• Margins improve due to lower power, fuel and freights costs
• Exceptional loss of Rs 178.2 crore due to provision for loss for Fujairah unit
• Higher deferred taxes and exceptional expenses drag profits
• Ebidta/ton up 34% at Rs 1,298 per share
• Sales Volume down 7% at 26.67 lakh ton

Earnings Today

• Whirlpool of India
• Bajaj Consumer Care
• Brigade Enterprises
• Thermax
• IRB Infra Developers
• Lumax Industries
• CARE Ratings
• Oriental Carbon & Chemicals
• Rane Madras
• MOIL
• Hikal
• Gujarat State Fertilizers & Chemicals
• Gujarat Alkalies and Chemicals
• Greenpanel Industries
• Genus Paper & Boards
• Caplin Point Laboratories
• Amrutanjan Health Care
• Capacite Infra
• City Union Bank
• Magma Fincorp
• Suven Pharma
• VST Tillers Tractors
• Thomas Cook
• Southern Petrochem
• Magma Fincorp

Bulk Deals

• Take Solutions: Shriram Group Executives Welfare Trust and Shriram Ventures acquired 1.22 crore shares (8.24%) at Rs 51.9 per share and promoters Esyspro Infotech and Asia Global Trading sold 1.22 crore shares (8.24%) at Rs 51.9 per share
• Supreme Industries: Axis Mutual Fund acquired 12.25 lakh shares (0.96%) at Rs 1,080 per share and promoter Venkatesh Investment sold 16.51 lakh shares (1.3%) at Rs 1,080.23 per share. Other buyers include SBI Mutual Fund and Axis Mutual Fund.

Pledged Share Details

• Zee Entertainment Enterprises promoters created pledge of 20.6 lakh shares on June 11
• Bodal Chemicals promoter Bhavin Patel released pledge of 24.75 lakh shares on June 16
• Adani Enterprises promoter SB Adani Family revoked pledge of 55 lakh shares on June 16
• Adani Ports & SEZ promoter SB Adani Family revoked pledge of 26 lakh shares on June 16
• Jubilant FoodWorks promoter Jubilant Consumer revoked pledge of 5 lakh shares on June 15
• Adani Transmission promoter SB Adani Family revoked pledge of 72 lakh shares on June 16

(As Reported On June 17)

Who’s Meeting Whom

• AstraZeneca Pharma to meet Hill Fort Capital on June 19
• IIFL Securities to meet RatnaTraya Capital on June 18
• Affle to meet Matthews International Capital, Ocean Dial AMC and ICICI Ventures from June 18-23
• Dixon Tech to meet ICICI Pru Life, Motilal Oswal AMC and other investors from June 18-24

Trading Tweaks

• Price Band Revised From 10% To 5%: IL&FS Investment Managers, Khadim, Shakti Pumps , Tata Communications, Xelpmoc Design & Tech, Zuari Agro Chemicals
• Price Band Revised From 20% To 10%: Century Extrusions, Morepen Laboratories, Orient Cement, Zuari Global
• Move Into ASM Framework: Nectar Lifesciences, BLB
• Move Into Short-Term ASM Framework: Morepen Laboratories, Bajaj Hindusthan Sugar, Zuari Global, Century Extrusions, Zensar Technologies.
• Move Out Of Short-Term ASM Framework: Himatsingka Seide, AGC Networks, Brigade Enterprises, Intellect Design Arena, Prism Johnson, Gujarat Fluorochemicals, PG Electroplast, Dalmia Bharat Sugar and Industries , Dishman Carbogen Amcis, Reliance Infrastructure , Gabriel India .

Insider Trading

• Kotak Mahindra Bank promoters sold 3 lakh shares on June 16
• Apollo Tyres promoter PTL Enterprises acquired 3.62 lakh shares on June 12

(As Reported On June 17)

F&O Cues

• Nifty June futures closed at 9854, discount of 25 points versus discount of 16 points
• Nifty June futures open interest down 0.1%, sheds 7950 shares in open interest
• Nifty Bank June futures closed at 20254, discount of 42 points discount of 1 points
• Nifty Bank June futures open interest up 8.5%, adds 1.4 lakh shares in open interest
• India VIX up 1.2% at 33.3

Options

• Nifty PCR at 1.23 Versus 1.28 (across all series)

Nifty Weekly Expiry: June 18

• Max open interest on call side at 10000 (27.2 lakh shares)
• Max open interest on put side at 9500 (21.8 lakh shares)
• Active options: 9800 Put (+4 lakh shares), 10100 Call (+6.8 lakh shares)

Nifty Monthly Expiry: June 25

• Max open interest on call side at 10000 (23.8 lakh shares)
• Max open interest on put side at 9000 (40 lakh shares)

Securities In Ban

• In Ban: Adani Enterprises, Escorts, Idea, JSPL, Just Dial
• New In Ban: Escorts