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Stocks To Watch: Eicher Motors, Hero MotoCorp, Indiabulls Housing Finance, ONGC

Here are the stocks to watch out for in today’s trade.



A trader watches a monitor while working on the floor of the New Stock Exchange in New York, U.S. (Photographer: Jin Lee/Bloomberg News)
A trader watches a monitor while working on the floor of the New Stock Exchange in New York, U.S. (Photographer: Jin Lee/Bloomberg News)

Asian stocks were broadly mixed at the open. Equity benchmarks South Korea and Australia slipped while Japanese shares posted modest gains. Hong Kong futures fell.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 11,370.50 as of 7:30 a.m.

Short on time? Well, then listen to this podcast for all you need to know before the opening bell.

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

  • Hindustan Copper: Government to cut stake to 66.13 percent from 76.05 percent.
  • IDBI Bank: Cabinet approves takeover by LIC
  • Hero MotoCorp July two wheeler sales up 9 percent at 6.79 lakh units.
  • Eicher Motors: Royal Enfield’s July motorcycles sales up 7 percent at 69,063 units.
  • Tata Motors July sales up 21 percent at 51,896 units..
  • L&T offered to sell L&T Technology Services’ 41 lakh shares or 4 percent equity at Rs 1,400 per share.
  • Punjab National Bank to consider capital infusion of Rs 2,816 crore by Government of India on Aug. 6.
  • Shivam Autotech reported 20 percent increase in sales in July.
  • Tata Power’s June quarter’s generation increased to 13,113 MU versus 12,429 MU.
  • Gujarat Alkalies and Chemicals PAC plant in Vadodara commences commercial production.
  • GPT Infraprojects won railways construction order worth Rs 362.2crore in Uttar Pradesh.
  • Mangalore Chemicals & Fertilizers’ board approved re-classification of three UB Group companies from promoter to public category.
  • Excel Crop Care to merge business with Sumitomo Chemicals.

Nifty Earnings To Watch

  • Indiabulls Housing Finance
  • ONGC

Other Earnings To Watch

  • Akzo Nobel India
  • Capital First
  • Deepak Nitrite
  • GE Power India
  • Godrej Properties
  • JK Lakshmi Cement
  • Mahindra Logistics
  • Manpasand Beverages
  • Marico
  • MOIL
  • Narayana Hrudayalaya
  • Pfizer
  • Ramco Cements
  • Time Technoplast
  • Torrent Pharmaceuticals

Also Read: India Monetary Policy: MPC Hikes Rates For Second Straight Time

Earnings Reaction To Watch

HEG (Q1, YoY)

  • Revenue up 7.7 times at Rs 1587.4 crore.
  • Net profit at Rs 770.3 crore versus net loss at Rs 8.4 crore.
  • Ebitda at Rs 1188 crore versus Rs 23.4 crore.
  • Margin at 74.8 percent versus 11.4 percent.

Elecon Engineering & Industries (Q1, YoY)

  • Revenue up 29.5 percent at Rs 303.5 crore.
  • Net profit at Rs 7.5 crore versus net loss at Rs 36.2 crore.
  • Ebitda at Rs 33.8 crore versus Ebitda loss at Rs 9.4 crore.

Jindal Saw (Q1, YoY)

  • Revenue up 63.5 percent at Rs 2284.3 crore.
  • Net profit up 49.5 percent at Rs 95.1 crore.
  • Ebitda up 70 percent at Rs 288.7 crore.
  • Margin at 12.6 percent versus 12.2 percent.

V2 Retail (Q1, YoY)

  • Revenue up 32 percent at Rs 187.8 crore.
  • Net profit UP 29 percent at Rs 11.2 crore.
  • Ebitda up 29 percent at Rs 20 crore.
  • Margin at 10.6 percent versus 10.9 percent.

Ballarpur Industries (Q1, YoY)

  • Revenue up 76.5 percent at Rs 824.4 crore.
  • Net loss at Rs 150.2 crore versus net loss at Rs 269.3 crore.
  • Ebitda up 48 percent at Rs 112 crore.
  • Margin at 13.6 percent versus 16.2 percent.

Pidilite Industries (Q1, YoY)

  • Revenue up 20 percent at Rs 1834 crore.
  • Net profit up 5.5 percent at Rs 239 crore.
  • Ebitda up 19 percent at Rs 381 crore.
  • Margin at 20.8 percent versus 21 percent.

Torrent Power (Q1, YoY)

  • Revenue up 15.9 percent at Rs 3528.1 crore.
  • Net profit up 11.4 percent at Rs 225.9 crore.
  • Ebitda down 3.6 percent at Rs 766.4 crore.
  • Margin at 21.7 percent versus 26.1 percent.

Triveni Engineering & Industries (Q1, YoY)

  • Revenue down 12 percent at Rs 706.6 crore.
  • Net profit down 38.7 percent at Rs 37.1 crore.
  • Ebitda down 43.4 percent at Rs 73.3 crore.
  • Margin at 10.4 percent versus 16.1 percent.

Reliance Infrastructure (Q1, YoY)

  • Revenue down 0.5 percent at Rs 7616.6 crore.
  • Net profit down 18.7 percent at Rs 271.7 crore.
  • Ebitda down 13.2 percent at Rs 1812.3 crore.
  • Margin at 23.8 percent versus 27.3 percent.

Bulk Deals

  • Talwalkars Lifestyles Ltd: American Funds Insurance Series sold 7.98 lakh shares or 2.6 percent equity at Rs 153.22 each.

Talwalkar Fitness Ltd

  • Capital World Growth and Income Fund sold 9.60 lakh shares (3.1 percent) at Rs 30.12 each.
  • Smallcap World Fund Inc. sold 6.12 lakh shares (2 percent) at Rs 27.7 each.

Who’s Meeting Whom

  • Shriram Transport Finance to meet Indus Capital Partner and Legatum Capital on Aug. 2.
  • Kiri Industries to meet Brairwood Capital and Centrum Broking on Aug. 2.

Insider Trades

  • Maharashtra Seamless promoter acquired 55,000 shares on July 26.
  • Grauer & Weil (India) promoteracquired 21,880 shares from July 30 – 31.

Rupee

  • Rupee closed at 68.43/$ on Wednesday from 68.55/$ on Tuesday.

F&O Cues

  • Nifty August futures closed trading at 11,374.3 premium of 28 points versus 15 points.
  • August series: Nifty open interest up 3 percent; Bank Nifty open interest down 11 percent.
  • India VIX ended at 12.5, up 0.4 percent.
  • Max open interest for Aug series at 11,500 Call (open interest at 29.9 lakh, up 7 percent)
  • Max open interest for Aug series at 11,000 Put (open interest at 51 lakh, up 8 percent)

Active Stock Futures

Brokerage Radar

Kotak on Apollo Tyres

  • Maintained ‘Buy’ with a price target of Rs 292.
  • June quarter’s operating income was in line with estimates; Net profit surpassed forecasts due to lower tax rate.
  • Decline in gross margin could be due to weaker product mix and higher commodity costs.
  • Strong growth in India driven by robust demand traction in truck bus radial segment.
  • Apollo Tyres is top pick in the tyre sector.

Edelweiss on Spectrum Auction

  • 700MHz spectrum is still expensive.
  • 3.3-3.6GHz: Environment not yet ready for 5G.
  • Given strained balance sheets, operators are unlikely to buy more spectrum.
  • Lack of participation to keep spectrum prices in check.

Brokerages On Exide Industries

Nomura

  • Maintained ‘Neutral’; raised price target to Rs 276 from Rs 268.
  • June quarter’s operating income was ahead of estimates; Margins lower due higher lead prices.
  • Expect steady revenue growth and margin expansion.
  • Recent drop in lead prices should support margins levels.

UBS

  • Maintained ‘Buy’ with a price target of Rs 335.
  • June quarter’s big sales surpassed estimates but net profit came inline.
  • Lower other income and higher tax rate pull down net profit.
  • Surprised by sharp correction in stock prices even after sales and operating income beat estimates.
  • Expect earnings growth to accelerate in 2018-19.

Kotak

  • Maintained ‘Sell’ with a price target of Rs 265.
  • June quarter’s operating income was above estimates on stronger revenue growth.
  • Revenue growth led by from auto industry, replacement segment and price hikes.
  • Expensive valuations don’t factor in structural issues.

Brokerages On RBI Policy

Kotak Securities

  • Neutral stance being retained indicates the rate hike cycle will be a shallow one.
  • Base case: expect RBI to pause in the near term
  • Probability of further rate hikes remain over the next 12 months.

Nomura

  • Having frontloaded hikes, we now expect rates to be left unchanged for the time being.
  • Expect any positive reaction in rupee to be limited, as this decision was widely anticipated.
  • Maintain cautious view on rupee, in line with the region.

UBS

  • Headline CPI inflation has peaked in June and will likely head lower over the next 6-months.
  • If CPI inflation sustains higher on a sustained basis, it would call for more policy tightening.
  • Base case: expect MPC to go in for an extended pause over the next six months.
  • If financial stability concerns worsen from here, the risk of a 100 basis points tightening cycle (of which 50 basis points are already done) appears very much alive.

Citi

  • Hiking cycle not yet over
  • There is still no visibility of RBI meeting its inflation target of 4 percent in its forecast horizon.
  • Pencil in another 25-50 basis points hike for 2018-19.
  • But expect RBI to skip Oct policy as it awaits the lagged transmission of the 50bps rate hike.

Morgan Stanley

  • With growth recovery on track and inflation forecast to rise, expect one more rate hike in the October meeting.
  • Further rate hikes contingent on the inflation outlook.