Stocks To Watch: Electrosteel Castings, Indian Bank, Omax Auto, Shriram EPC

Asian stocks edged lower Friday after a risk-off session in global markets where technology stocks retreated and Brazilian assets slumped.

Japanese, Australian and South Korean stocks showed modest losses. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.6 percent lower at 10,710 as of 7:45 a.m.

Stocks To Watch In Friday’s Trade

• IIFL Real Estate Investment Trust receives certificate of registration from SEBI to undertake REIT activities.
• Omax Autos approves expansion of existing capacity for an investment of Rs 100- 120 crore over 2-3 years.
• Electrosteel casting says promoter holding reduced to 11.11 percent from 45.23 percent post allotment of shares to lenders.
• Shriram EPC resolves customer dispute in Iraq; order of $230 million restored to its joint venture with Iraqi Co.
• Indian Bank hikes MCLR by 10 basis points for different tenures.
• Time Technoplast receives order worth Rs 40 crore.
• McNally Bharat issues 1.20 lakh CCPS to promoters.

Bulk Deals

• Ashiana Housing: Goldman Sachs India Fund sold 28.94 lakh shares or 2.8 percent equity at Rs 147 each.
• Indoco Remedies: DSP Blackrock MF sold 15 lakh shares or 1.6 percent equity at Rs 190 each.
• Sharda Cropchem: Goldman Sachs India Fund sold 13.70 lakh shares or 1.5 percent equity at Rs 400 each.

Future Retail

• PI Opportunities Fund I bought 2.27 crore shares or 4.5 percent equity at Rs 560 each.
• Pioneer Investment Fund bought 71.42 lakh shares or 1.4 percent equity at Rs 560 each.
• Cedar Support Services sold 3.03 crore shares or 6 percent equity at Rs 560 each.

Who’s Meeting Whom Today

• Thyrocare Technologies to meet Samatva Investments on June 8.
• Endurance Technologies to meet Citigroup Global Markets India and American Century Investments on June 8.
• Shriram Transport Finance to meet LionRock Capital, Columbia Wanger Asset Management on June 8.

Trading Tweaks

• Kwality, Excel Realty and Oceanaa Biotek placed under ASM by BSE.
• HDFC Bank, Indusind Bank and Cyient FII window open.
• Soril Holdings And Ventures Ltd. name changed to Indiabulls Integrated Services Ltd.

Insider Trades

• Piramal Enterprises promoter Piramal Corporate Services Ltd. sold 1.70 lakh shares from June 4 – 5.
• Panama Petrochem promoter acquired 27,841 shares from June 5 – 6.
• Asian Granito promoters acquired 17,649 shares on June 6.
• Viaan Industries promoter Shilpa Shetty Kundra acquired 20,000 shares on June 6.
• Alkem Laboratories promoters acquired 14,000 shares from June 4 – 5.
• Laurus Labs promoter Dr. Satyanarayana Chava acquired 1.70 lakh shares from June 4 – 6.

F&O Cues

• Nifty June Futures closed trading at 10,765.2 discount of 3.1 points versus premium of 1.6 points.
• June series-Nifty open interest up 6 percent and Bank Nifty open interest up 3 percent
• India VIX ended 12.7, up 1.8 percent
• Max open interest for June series at 11,000 Call, open interest at 39.9 lakh, open interest down 4 percent
• Max open interest for June series at 10600 Put, open interest at 43.2 lakh, open interest up 7 percent

F&O Ban

• In ban: Dewan Housing, Balrampur Chini
• New in ban: None
• Out of ban: None

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

Active Stock Futures

Brokerage Radar

Morgan Stanley on Bajaj Finance

• Maintained ‘Overweight’ with a price target of Rs 2,500.
• Strong momentum in AUM growth and customer acquisition.
• Liquidity environment challenging, but liability positioning is conservative.
• New avenues of funding to help in challenging liquidity environment.
• Mortgages to see 35-40 percent growth p.a. in medium term.

Ventura Securities on Byke Hospitality

• Initiated ‘Buy’ with a price target of Rs 351; Potential Upside 106 percent over 24-30 months.
• Expect industry to report much better performance than entire past decade.
• Byke well positioned to benefit from hotel industry uptrend.
• Positives: asset light model, strategic hotel locations and adequate new capacity.
• Expect revenue to compound at 22 percent over the financial year 2018-2021.
• Expect occupancy rate to rise to 71 percent by March 2021, despite aggressive room expansion.

JPMorgan on Asian Paints Annual Report Highlights

• Maintained ‘Neutral’ with a price target of Rs 1,300.
• Positive 2018-19 demand outlook.
• Expects healthy domestic demand and better overseas performance.
• Expanded distribution, new retail formats, product innovation and new segments to aid.
• Rising raw material prices remains the key challenge.
• FCF/Return ratios moderate owing to lower margins and higher capital deployment.

Nomura on M&M Financial

• Maintained ‘Buy’ with a price target of Rs 600.
• Management upbeat on growth trends.
• Confident of normalisation of asset quality and credit costs in 2018-19.
• RoE ramp-up to be faster with improving asset quality and strong growth trends.
• Current valuations look undemanding.

JPMorgan on Vedanta

• Maintained ‘Overweight’ with a price target of Rs 400.
• Vedanta addresses key investor concerns related to copper smelter.
• Vedanta says that plant follows Zero Liquid Discharge policy.
• Past sample checks by regulator found no abnormalities in water.
• Plant accounted for 33% of India’s copper market.

Brokerages On Tata Motors

Credit Suisse

• Maintained ‘Outperform’ with a price target of Rs 460.
• Second month of positive retail sales though the base has been favourable.
• Demand in China should bounce back from July.
• Jaguar portfolio continues to see sharp declines.
• Discovery range have been steady; RR twins continue to be in ramp up mode.

Citi

• Maintained ‘Buy’ with a price target of Rs 480.
• Strong show in U.K. (low base) and North America.
• Deferment of purchase in Chinese market post the reduction in import duties.
• Demand environment subdued in Europe, partly reflecting anti-diesel trend.
• E-Pace aids Jaguar; New models/refreshes drive Land Rover.