Stocks To Watch: Vodafone Idea, Lupin, Rain Industries, Bank Of India

Asian stocks opened modestly lower after a rally in U.S. equities fizzled on fresh U.S.-China tensions. The dollar held losses. Sentiment is being tested as global equities round out a second month of gains, with President Donald Trump saying he’ll announce new U.S. steps on China on Friday, after it passed a national security law curbing freedoms in Hong Kong. Japanese shares dipped modestly along with those in Seoul and Sydney.

Here are the stocks to watch in trade today:

• Google is considering buying stake of about 5% in Vodafone Idea. The process is at a very early stage. (Financial Times)
• Rain Industries on Covid-19 impact: Group’s plants in Europe and North America continued to operate, without any break during the second quarter of calendar year 2020. Commercial operations of hydrogenated hydrocarbon resins plant in Germany started on May 18.
• Bajaj Electricals on Covid-19 impact: Supply chains have been put under stress which has resulted in loss of business and temporary pressure on cash flows/liquidity/profitability/margins due to lower collection of receivables, operating expenses, payment obligations towards vendors and statutory authorities. Most of vendors of the Company have also resumed operation, presently with 30% - 35% capacity. To reduce the capital employed in the EPC business.
• Cadila Healthcare’s formulation manufacturing facility at Baddi has received an Establishment Inspection Report with classification as No Action Initiated from U.S. FDA. Inspection has been closed with nil observations.
• Pharma Stocks: Government of India has freed export of Paracetamol API with immediate effect. (Bloomberg News)
• NHPC: Board approved proposal regarding diversification of business, by development of solar power projects as intermediary procurer through solar power developers.
• Sandur Manganese and Iron Ores on Covid-19 impact: Revenue and earnings are expected to be adversely impacted for the quarter ending June, 2020 on account of prevalent tepid demand conditions in the domestic steel industry. Company has requested the term lenders for deferment of interest that is payable for March - May 2020. The repayment of monthly installments for the Rs 400 crore term loan starts from 31 March 2021.
• Narayana Hrudayalaya on Covid-19 impact: The present situation has impacted the financials of the company with consolidated operational revenue for the month of April 2020 registering around 35% of pre-Covid revenue. This has resulted in negative profitability and consequently negative cash flows in this period.
• Pidilite Industries has completed acquisition of 70% stake in Tenax India Stone Products.
• RBI levied Rs 5 crore penalty on Bank of India and Rs 1.2 crore on Karnataka Bank for not following asset classification norms.
• Astron Paper and Board Mill on Covid-19 impact: Production has been gradually stepped up and currently we are operating at around 70% of installed capacity at both plants. First half of financial year 2021 to bear the full brunt of Covid-19. Indian Kraft paper prices which broadly track global prices, have also remained muted. The supply chain disruption and rupee depreciation has resulted in higher cost of raw-material imports of waste paper.
• Texmaco Infra and Holdings on cyclone Amphan: Adverse impact on workings of plant at Kolkata for next 5-7 days. Main facility is protected and safe.
• Greenply Industries on cyclone Amphan: Damage has been there to damage to the factory shed and building, machineries including chimney and some materials situated at Kriparampur unit in West Bengal. Plant is adequately covered under insurance and the overall impact is not expected to be material.
• A2Z Infra Engineering on Covid-19 impact: Not able to resume execution of most of the EPC projects and power plants as staff and working labours were moved away from the sites being mostly in remote areas. In the present situation company doesn’t foresee to restart EPC operations. Company will require special concession and support from its lenders during the short and middle term till its revenue start normally after resuming the complete operations. At present Company’s accounts are NPA with all the lending banks and Company has entered into settlement with various banks and financial institutions.
• LT Foods stated that the company is adequately covered for the demand for financial year 2021, and the procurement is complete.
• Tata Teleservices (Maharashtra): Board to consider raising Rs 5,000 crore on June 2, via debt and preference shares.
• Raymond to consider raising Rs 80 crore via NCDs on May 31.

Other Earnings

CEAT Q4 (Consolidated, YoY)

• Revenue down 10.6% at Rs 1,573.4 crore (Est Rs 1,539 crore)
• Net profit down 19.3% at Rs 51.9 crore (Est Rs 40.3 crore)
• Ebidta up 23.4% at Rs 200.4 crore (Est Rs 148 crore)
• Margins at 12.7% vs 9.2%
• Other Income of Rs 30.6 crore in base quarter
• Exceptional cost of Rs 28 crore relating to VRS for employees and Covid-19 impact

Rain Industries Q1CY20 (Consolidated, YoY)

• Revenue down 9.35% at Rs 2,897.7 crore
• Net profit up 54.8% at Rs 106.5 crore
• Ebidta up 22.6% at Rs 431.4 crore
• Margins at 14.9% versus 11%
• Tax Reversals aid profit numbers
• Inventory related write-down of Rs 900 crore for financial year 2020
• Increased margins due to lower raw material costs and appreciation of dollar against rupee

Heidelberg Cement India Q4 (Standalone, YoY)

• Revenue down 6.18% at Rs 509.8 crore
• Net profit up 8.86% at Rs 66.3 crore
• Ebidta up 2% at Rs 127.4 crore
• Margins at 25% versus 23%
• Margins improve due to lower power, fuel and freight expenses
• Sales volume down 10% at 1,090 KT
• Ebidta/ton up 13.2% at Rs 1,168

Earnings Today

• P&G Health
• Voltas
• 3M India
• Equitas Holdings
• Everest Industries
• Jagran Prakashan
• Rashtriya Chemicals and Fertilizers
• Sagar Cements
• Sundaram Clayton
• V-Mart Retail
• Dilip Buildcon
• Jubilant Lifesciences
• KEC International
• Lemon Tree Hotels
• Metropolis Healthcare
• Majesco
• NCC
• Shipping Corporation of India
• Sundaram Finance
• Symphony
• Welspun Enterprises

Resumption of Operations

• Finolex Cables

Bulk Deals

• KPIT Technologies: CLS Investments acquired 20 lakh shares (0.72% ) at Rs 46.91 per share
• Sequent Scientific: Satpal Khattar sold 42.53 lakh shares (1.7%) at Rs 84.26 per share

Pledged Share Details

• Bodal Chemicals promoter Bhavin Patel created pledge of 24.75 lakh shares on May 26
• UFLEX promoter group Flex International revoked pledge of 2.25 lakh shares on May 27
• Max India’s promoter group Max venture Investment Holdings created pledge of 12 lakh shares on May 21

(As Reported On May 28)

Trading Tweaks

• Price Band Revised From 10% To 5%: Aries Agro, Hindustan Oil Exploration
• Price Band Revised From No Band To 20%: CESC, Yes Bank
• Move Into Short-Term ASM Framework: OCL Iron and Steel
• Move Out Of Short-Term ASM Framework: Shree Digvijay Cement, Orient Green Power, Rushil Decor

Insider Trading

• Chambal Fertilizers & Chemicals promoter Hindustan Times acquired 70,000 shares on May 28

(As Reported On May 28)