Stocks To Watch: Eicher Motors, Hindalco Industries, Lupin, M&M, Oil India, SBI

Asian stocks slumped on Friday after a rout on Wall Street triggered by concerns the epic rally since March was excessive given the emergence of a second wave of infections in some locations. Korean shares opened down over 4% and Japanese ones fell about 2%. U.S. futures suggested some stabilization, rising after the S&P 500 sank almost 6% Thursday, the most in 12 weeks.

Here are the stocks to watch in trade today:

• SBI approved divestment of 2.1 crore (2.1%) in SBI Life Insurance to achieve minimum public share-holding of 25% through offer for sale process as per SEBI guidelines. Offers opens on June 12 for non-retail investors and June 15 for retail investors. Floor price is at Rs 725 per share, which is at a discount of 2.14% to the closing price of June 11.
• Lupin received approval for its Albendazole Tablets from the United States Food and Drug Administration to market a generic equivalent of Albenza Tablets, of Impax Laboratories. Drug is used to treat tapeworm diseases.
• Oil India stated that fire at the company’s well in Assam has been contained to itself. Spread of fire to nearby villages has been contained.
• Allcargo Logistics has prepaid NCDs worth Rs 160 crore on June 11.
• Redington India on Covid-19 Impact: Vendors hold the view that from second quarter of fiscal 2021, business should be usual. Through the month of May, 70% of warehouses had been operation, while currently all of them are operational.
• Hikal on Covid-19 Impact: Currently running at approximately 80 - 85% capacity utilisation at all manufacturing sites. There has been no cancellation of orders. Not opted for the moratorium option and continue to meet all debt obligations
• NMDC clarified on the news of Chhattisgarh Government on disallowing the company to carry out iron ore storage, loading in its Bailadila Mines. During the year 2013, Chhattisgarh State Govt. had issued a demand notice levying storage fee for the loading plants of the iron ore Mines of the NMDC. Based on the demand notice issued by the State Government, NMDC paid the demand amount and afterwards filed a Writ Petition in the High Court at Bilaspur challenging the demand notice. Hon'ble High Court directed the State Government to refund back the storage license fee collected from the NMDC. In compliance to the above order, State Government had adjusted the amount deposited by the NMDC against the royalty amount payable. Subsequently, State Government has filed a review petition on the order passed by the Hon'ble High Court and presently matter is subjudice. Company will place all the relevant facts and legal position before the State Government to resolve the issue amicably
• Trent: Inditex is planning to increase Zara’s presence in India, with new stores potentially opening over the next 12 months. Company has at least four to five more properties it has signed up with mall developers and could consider consolidating underperforming stores, but will continue to expand. (Bloomberg News)
• Wipro has partnered with iCloudKnox Security to secure multi-cloud and hybrid cloud infrastructure. Wipro Ventures, the corporate investment arm of Wipro, invested in CloudKnox through its recently announced $150 million fund , to strengthen the strategic partnership.
• HDFC AMC Board has re-appointed Milind Barve as managing director till January 2021
• MAS Financial Services to consider raising funds via NCDs on June 16.
• HDFC issued NCDs worth Rs 4,000 crore.
• Kirloskar Ferrous Industries has commissioned 20MW power generation plant attached to the coke oven plant in Karnataka. The power will be generated by using waste gas generated from the coke oven plant.It will be utilized primarily for captive consumption resulting in reduction of power cost.
• Lemon Tree Hotels: WF Asian Reconnaissance Fund increased its stake from 4.55% to 5.68% on June 9.

Resumption of Operations

• Mahindra Holidays and Resorts

Earnings

Sundram Fasteners Q4 (Standalone, YoY)

• Revenue down 28.3% at Rs 719.6 crore (Est Rs 657 crore)
• Net profit down 56.4% at Rs 46.8 crore (Est Rs 45.4 crore)
• Ebidta down 33.4% at Rs 117.8 crore (Est Rs 98 crore)
• Margins at 16.4% versus 17.6%
• Export sales impacted in March
• Key customers in USA faced a slowdown due to the cyclical nature of the industry

Redington Q4 (Consolidated, YoY)

• Revenue up 0.66% at Rs 12,666.7 crore (Est Rs 13,463 crore)
• Net profit down 29.4% at Rs 119.2 crore (Est Rs 130 crore)
• Ebidta down 4.5% at Rs 243.9 crore (Est Rs 253 crore)
• Margins at 1.94% versus 2.03%
• Bottom line impacted by higher employee expenses and higher inventory.
• De-growth seen in India segment, overseas segment saw revenue growth of 5% to Rs 8,254.5 crore driven by mobility segment
• Covid-19 impact of Rs 800 crore for India segment
• Covid-19 impact of $137 million for overseas segment

EID Parry Q4 (Consolidated, YoY)

• Revenue up 16.4% at Rs 4,245.1 crore
• Net profit down 0.56% at Rs 157.2 crore
• Ebidta up 34.4% at Rs 624.5 crore
• Margins at 14.7% versus 12.7%
• Higher taxes impact profit numbers
• Margins rise due to lower raw material costs
• Growth seen in Sugar, nutrient and crop protection business
• Higher realizations from the distillery segment coupled with the effective cost and cash management aided operational numbers

Earnings Today

• Eicher Motors
• Hindalco Industries
• Mahindra & Mahindra
• Castrol India
• Gujarat Industries Power
• Indo Count Industries
• IOL Chemicals and Pharmaceuticals
• Mangalore Chemicals & Fertilizers
• Pudumjee Paper Products
• Suprajit Engineering
• Vascon Engineers
• Acrysil
• Fortis Malar
• Goodyear India

Pledged Share Details

• JSPL promoter Danta Enterprises revoked pledge of 1.25 lakh shares on June 9
• Adani Ports & SEZ promoter SB Adani Trust revoked pledge of 32 lakh shares on June 10
• JSW Energy promoters revoked pledge of 62 lakh shares on June 9
• Adani Transmission promoter SB Adani Trust revoked pledge of 7 lakh shares on June 10
• Zee Learn promoter Asian Satellite Broadcast invoked pledge of 13 lakh shares on June 4
• Sun Pharma promoter Raksha Valia created pledge of 68 lakh shares on June 9

(As Reported On June 11)

Who’s Meeting Whom

• Radico Khaitan to meet HDFC AMC, TATA AMC, ICICI Pru AMC on June 12
• CG Consumer Electricals to meet Malabar Group on June 15
• Syngene International to meet Renaissance Investment Managers on June 12
• Affle to meet Edelweiss AMC, Goldman Sachs and other investors from June 12-17

Trading Tweaks

• Ex Date For Amalgamation and Spinoff: Max India
• Price Band Revised From 10% To 5%: Ashapura Minechem, Avadh Sugar & Energy, Dwarikesh Sugar Industries.
• Price Band Revised From 20% To 10%: Ramco Systems, Panacea Biotec.
• Move Into ASM Framework: Suzlon Energy.
• Move Into Short-Term ASM Framework: Shilpa Medicare, Avadh Sugar & Energy, TV18 Broadcast, Dwarikesh Sugar Industries, Sanghi Industries, Network18 Media & Investments, SMS Lifesciences.
• Move Out Of Short-Term ASM Framework: Genus Paper & Boards, Healthcare Global Enterprises.

Insider Trading

• Birlasoft promoter National Engineering acquired 21.73 lakh shares on June 9
• Aarti Drugs promoter Jaya Gogri acquired 24,546 shares from June 8-9

(As Reported On June 11)

F&O Cues

• Nifty June futures closed at 9895, discount of 8 points versus discount of 3 points
• Nifty June futures open interest up 4%, adds 4.3 lakh shares in open interest
• Nifty Bank June futures closed at 20509, discount of 16 points discount of 19 points
• Nifty Bank June futures open interest down 5.9%, sheds 1 lakh shares in open interest
• India VIX up 0.8% at 29.6

Options

• Nifty PCR at 1.02 versus 1.35 (across all series)

Nifty Weekly Expiry: June 18

• Max open interest on call side at 10500 (14.2 lakh shares)
• Max open interest on put side at 9500 (12.2 lakh shares)
• Active options: 9500 Put (+7.5 lakh shares), 10100 Call (+7.8 lakh shares)

Nifty Monthly Expiry: June 25

• Max open interest on call side at 10000 (20.8 lakh shares)
• Max open interest on put side at 9500 (29 lakh shares)

Securities In Ban

• New In Ban: Adani Ent, Escorts
• In Ban: Adani Ent, BHEL, Escorts, Jindal Steel, Just Dial, PVR
• Out of Ban: Idea, NCC