Stocks To Watch: DLF, Exide Industries, L&T, Lupin, NIIT, Power Grid, SBI, UPL

Asian stocks opened mixed on Friday amid concern the recent rally has gone too far, with another big drop in American payrolls looming from the May employment report. Japanese and Australian shares dipped when trading began, while those in South Korea were slightly higher. Contracts on the S&P 500 were little changed after the index snapped a four-day winning streak Thursday.

Here are the stocks to watch in trade today:

• Department of Telecommunication in a revised assessment order has asked Power Grid to pay Rs 13,613.66 crore on account of License Fee. The order is related to NLD license fees for the financial years 2006-07 to 2009-10; includes interest, penalty, interest on penalty.
• UltraTech Cement on Covid-19 impact: Company is at present dispatching cement from all the locations. Larger part of the demand is currently from the retail markets. Some of the institutional projects have also commenced construction activities. Capex plans for the current financial year have been restricted to an amount of around Rs. 1,000 crore. Work on the 2.2 million ton Cuttack grinding unit which was scheduled for commissioning in March, 2021 has been slowed down. Brownfield capacity expansion work at the West Bengal and Bihar grinding units and Bicharpur coal block is coming to an end and should get commissioned by March, 2021.
• Lupin and Mylan stated that the European Commission has granted marketing authorization for Nepexto, a biosimilar to etanercept. The regulatory approval follows the adoption of a positive opinion by the Committee for Medicinal Products for Human Use in March this year.
• S&P Global Ratings revised its outlook on UPL to negative from stable. Affirmed 'BBB-' long-term issuer credit rating on the company. The negative outlook reflects view of a one-in-three likelihood that parent UPL Ltd.'s ratio of funds from operations to debt will not maintain its trajectory toward 25% by fiscal 2022. Nonetheless, the ratings agency expects operating performance of the company to remain resilient over the next two years, driven by the essential nature of the agriculture sector and UPL's material exposure in the fast-growing Latin American region.
• NIIT has appointed Sanjay Mal as CFO with effect from June 5. Board approved divesting of its Schools Learning business to a strategic or financial partner by way of sale of holding in its wholly owned arm MindChampion Learning Systems, or in any other appropriate manner. This will allow NIIT to conserve on cash resources as well as management bandwidth to sharpen its focus on the larger two businesses of Corporate Learning and Skills & Careers.
• RITES’ arm Railway Energy Management has secured its largest mandate from Indian Railways for handling tendering, installation supervision and managing power supply from 3 GW solar power plants to be set-up on vacant Indian Railways land. Besides Bid management fee in the beginning, Rites would earn long term revenue through supply management from these installations which may amount to approximately Rs. 20 crore per year during life of the project. Entire installation is expected to be completed by financial year 2022-23.
• Suprajit Engineering: DSP Global Services increased stake in the company from 4.85% to 5.59% on June 2
• HCL Tech to transfer its software offerings to Google Cloud. Company has expanded its strategic partnership with Google.
• Allcargo Logistics on Covid-19 impact: Significant disruptions in equipment business. However MTO segment and CFS segment comprising over 90% revenues were largely unaffected in financial impact. Demand has picked up in May.
• Gulf Oil Lubricant: Board approved re-appointment of Ravi Chawla as Managing Director & Chief Executive Officer till June 2023.
• APL Apollo Tubes on Covid-19 impact: Company does not expect any long term impact of the lockdown although there would be some impact on the revenue and profitability in the first quarter of current financial year. Company is focusing on faster receivable collection and reduction in debt.
• Safari Industries: Board approved raising shareholding limit for foreign investors from 24% to 49%.
• TD Power Systems on Covid-19 impact: Sales will recover substantially by the end of the first half of calendar year 2020. Impact of business in fiscal 2021 is not expected to be material since exports contribute to majority of sales and company does not see any material impact on demand in international business in the short term. The company may have to resort to 3rd Shift full operations to meet the targets. However, it is expected that domestic sales will be impacted both for the next two financial years.
• Can Fin Homes on Covid-19 impact: Company has not opted for moratorium offered by its lending institutions. Collection of EMIs have been postponed in some accounts due to moratorium offered to borrowers as per RBI guidelines. Loan disbursements were not made during April.
• Mahindra Logistics on Covid-19 impact: Revenue in the first quarter of financial year 2021 could be as lower as 50%-60% as compared to normal quarter. There may be some impact on receivable cycle.

Resumption of Operations

• Bombay Dyeing

Other Earnings

DLF Q4 (Consolidated, YoY)

• Revenue down 32.2% at Rs 1694.2 crore (Est Rs 2,234 crore)
• Net loss at Rs 1,858 crore versus Net profit at Rs 436.6 crore (Est Net profit at Rs 411 crore)
• Ebidta down 40.6% at Rs 316.7 crore (Est Rs 1,055 crore)
• Margins at 18.7% versus 21.3%
• Reversal of net deferred tax asset of Rs 1,916 crore due to adoption of new tax rate
• Exceptional loss of Rs 330.7 crore in current quarter
• KP Singh resigned as Chairman, appointed as Chairman Emeritus
• Rajiv Singh appointed as Chairman
• Exceptional provision of Rs 272 crore due to Covid-19

SRF Q4 (Consolidated, YoY)

• Revenue down 4.09% at Rs 1,857.8 crore (Est Rs 1,933 crore)
• Net profit down 2.67% at Rs 185.8 crore (Est Rs 201 crore)
• Ebidta up 3.85% at Rs 388.4 crore (Est Rs 397 crore)
• Margins at 20.9% vs 19.3% (Est 20.5%)
• Bottom line numbers impacted by higher fuel, employee and other expenses
• Increase in margins due to lower raw material costs
• Technical textiles segment revenue down 22% at Rs 316.8 crore
• Chemical segment revenue up 5% at Rs 881.9 crore
• Packaging films business revenue down 3% at Rs 601.5 crore
• Demand for speciality chemicals was robust.
• Fluorochemicals business adversely impacted as the automobile sector continued to remain under severe pressure as well as due to the low prices of key refrigerants.
• BOPET and BOPP packaging segments delivered steady returns to the overall performance due to improved margins, better plant efficiencies and an increased focus on sale of Value-Added Products.
• Tyre Cord Fabric segment impacted because of a double-digit de-growth in the auto sector.

Earnings Today

• Larsen & Toubro
• SBI
• Alkem Laboratories
• Gujarat Gas
• Aditya Birla Capital
• Exide Industries
• Jyothy Labs
• Saregama

Bulk Deals

• PVR: Sylebra Capital Partners Master Fund acquired 3.24 lakh shares (0.63%) at Rs 1,027.65 per share
• RBL Bank: BNP Paribas Arbitrage sold 36.84 lakh shares (0.72%) at Rs 125.86 per share
• SH Kelkar: Fidelity Group sold 8.11 lakh shares (0.57%) at Rs 65.24 per share
• HDFC Life Insurance: Promoter Standard Life sold 4 crore shares (1.98%) at Rs 496.4 per share and Capital World Growth and Income Fund acquired 1.16 crore shares (0.57%) at Rs 496.4 per share. Other buyers included Nomura Funds, American Fund Insurance, Societe General, Morgan Stanley, Vanguard, Fidelity Group.

Pledged Share Details

• JSW Holdings promoter OPJ Trading revoked pledge of 1.15 lakh shares on June 2

(As Reported On June 4)

Who’s Meeting Whom

• CG Consumer Electricals to meet Birla Sunlife AMC, Kotak MF and other investors from June 5-11
• Manappuram Finance to meet TA Associates and Ward Ferry from June 5-10
• KEI Industries to meet Philip Capital on June 5
• TVS Motor to meet Credit Suisse on June 5

Trading Tweaks

• Move Into ASM Framework: Dixon Technologies, Speciality Restaurants, RattanIndia Infrastructure
• Move Into Short-Term ASM Framework: Electrotherm , Cholamandalam Financial Holdings, Tube Investments, Trident, Marksans Pharma, TCNS Clothing, Borosil Renewables, Prataap Snacks, TFCI, Skipper. Arvind Fashion.
• Move Out Of Short-Term ASM Framework: Affle, Infibeam Avenues.

Insider Trading

• Apollo Tyres promoter PTL Enterprises acquired 5.1 lakh shares from June 1-2
• Nesco promoter Chandler and Price acquired 26,885 shares from June 1-2
• Aarti Industries promoter sold 99,000 shares from June 1-2
• Mindtree promoter sold 2.96 lakh shares from April 30-June 3

(As Reported On June 4)

F&O Cues

• Nifty June futures closed at 10,018, discount of 12 points versus discount 25 points
• Nifty June futures open interest down 3.6%, sheds 3.8 lakh shares in open interest
• Nifty Bank June futures closed at 20,780, discount of 10 points versus discount 200 points
• Nifty Bank June futures open interest down 8%, sheds 1.1 lakh shares in open interest
• India VIX down 1.2% at 29.7
• Nifty Put Call Ratio at 1.37 versus 1.58 across all series

Nifty Weekly Expiry: June 11

• Max open interest on call side at 10,500 strike (13.2 lakh shares)
• Max open interest on put side at 9,500 strike (11.7 lakh shares)
• Active options: 9,800 Put (+5.3 lakh shares), 10,200 Call (+6.2 lakh shares)

Nifty Monthly Expiry: June 25

• Max open interest on call side at 11,000 (16.7 lakh shares)
• Max open interest on put side at 9,000 (33 lakh shares)