Stocks To Watch: Hindalco, ICICI Bank, IDBI Bank, Jet Airways, Manpasand Beverages, NBCC, Nestle, RIL, Tata Motors, Titan, Yes Bank
Asian shares started the week mixed, with volumes subdued as investors count down to the holiday break.
Equities were little changed in early trading in Tokyo and Seoul, and fell in Sydney. S&P 500 futures were little changed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 12,294 as of 6:55 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Here are the stocks to watch in today’s trade.
Earnings Reaction To Watch
Manpasand Beverages Q1FY20 Standalone (year-on-year)
- Revenue fell 89.2 percent to Rs 36.1 crore.
- Net loss at Rs 31.3 crore versus Net Profit of Rs 36.4 crore.
- EBITDA Loss of Rs 8.4 crore versus EBITDA Gain of Rs 68 crore.
Here Are The Stocks To Watch Out For In Today’s Trade
- Hindalco: Novelis received approval from China’s State Administration for Market Regulation for its aquisition of Aleris, as part of which Novelis agreed to sell the Aleris plant in Duffel, Belgium to an independent, third party, according to Bloomberg report.
- ICICI Bank acquired 45 lakh shares or 18.75 percent stake in Karvy Data Management Services pursuant invocation of pledged shares of the company for recovery of outstanding dues of Karvy Stock Broking. On Dec. 19, Bajaj Finance had acquired 10 percent stake in the same arm due to invocation of pledged shares.
- Glenmark Pharma: Bausch Health will grant Glenmark non-exclusive license effective till 2026 for its intellectual property relating to Bryhali Solution, according to Bloomberg report.
- Prestige Estate Projects: Board approved allotment of 1.34 crore shares at a floor price of Rs 323.22 to Gamnat aggregating to Rs 434.5 crore. The floor price is at discount of 7 percent to the closing prices on Dec. 20. Gamnat is an investment firm managed by Singapore’s wealth fund GIC.
- Power Finance transferred a transmission project in UP to Power Grid Corporation.
- Tata Global Beverages appointed Sunil D’Souza as the managing director and chief executive officer with effect from April 4, 2020 till 2025. He will leave the post of MD in Whirlpool in March next year.
- Gateway Distriparks completed the sale of its container freight station in Chennai for Rs 48.41 crore to Team Global Logistics.
- International Paper APPM promoter West Coast Paper Mills pledged 2.03 crore shares or 51 percent equity amounting to Rs 343 crore in favour of Standard Chartered Bank, Aditya Birla Finance and Axis Finance. This has been done to fund the acquisition of shares in International Paper APPM. West Coast Paper Mills has a stake of 72.2 percent in the company. The shares were encumbered as the promoter has issued non-convertible debentures of Rs 198 crore and availed term loan facility of Rs 145 crore.
- Godawari Power & Ispat will consider proposal of scheme of arrangement with Jagdamba Power and Alloys on Dec. 24.
- Tourism Finance Corporation: Merlin Holdings increased stake to 8.08 percent from 5.55 percent in the company.
- J&K Bank Divergence in net NPA stood at a positive 689 crore and divergence in provisioning stood at Rs 884 crore for the financial year ended-2019.
- Care Ratings Rajesh Mokashi resinged at as managing director and chief executive officer of the rating agency. TN Arun Kumar to continue to act as Interim CEO of the company.
- Rallis India: Mumbai bench of National Company Law Tribunal approved merger of Metahelix Life Science with self. NCLT Bengaluru had approved this scheme on Nov. 11.
- UFO Moviez: Board approved an investment of Rs 20 crore by way of convertible instruments in Cinestaan Digital. The company will acquire up to 62.5 percent stake in the target company over the period of three years.
- KEC International secured Rs 1,520 crore for various business segment i.e. urban & transport, railways and T&D.
- Dilip Buildcon bagged an EPC four-laning project with a cost of Rs 458 crore.
- PSP Projects emerged as L1 bidder for EPC design and build construction of tech hub at Gift city. The company has emerged as the lowest bidder with bid value of Rs 308 crore.
- NBCC received LOI from HIL to provide PMC services. This will be for development of 5.12 acre Land parcel on self-sustainable model. The estimated cost of the project will be Rs 350 crore inclusive of a fee of Rs 35 crore.
- Jet Airways: NCLT allowed 90- Day extension for Jet's Resolution Process, according to PTI report.
- Reliance Industries: Centre seeked to restrain Reliance Industries Stake sale to Saudi Aramco Times of India reported.
- Sun Pharma: Promoters released pledge on 68.5 lakh shares.
- Prince Pipes and Fittings received 2.2 times demand for shares offered.
Pledge Share Details
- JSW Energy promoter JSW Investments created pledge of 2.2 crore shares from Dec. 16-18.
- Emami promoters created pledge of 1.5 lakh shares on Dec. 18.
- Future Retail promoter Future Corporate Resources revoked pledge of 75 lakh shares on Dec. 19.
- Sensex Changes: Titan, UltraTech Cement, Nestle to be added. While Tata Motors, Tata Motors DVR, Vedanta and Yes Bank to be dropped.
- ABB India record date for demerger.
- Magma Fincorp, VIP Clothing, ITD Cementation to move out of ASM Framework.
- Gayatri Highways, Jaypee Infratech, Ortin Laboratories to move into short term ASM Framework.
- Flexituff Ventures, SPML Infra, Tanla Solutions, Sterling And Wilson Solar, Sathavahana Ispat to move out of short term ASM Framework.
- Aarvee Denims & Exports, PMC Fincorp, Manaksia Steels price band revised to 10 percent.
Who’s Meeting Whom
- Mahindra & Mahindra to meet Rare Enterprises and HDFC Life Insurance from Dec. 23-24.
- Mahindra & Mahindra Financial Services to meet Matthews International Capital Management on Dec. 24.
- Dr Lal Pathlabs to meet Ambit Capital on Dec. 23.
- Granules to meet Kotak Securities on Dec. 24.
Money Market Update
- The rupee closed at 71.12/$ versus 71.04/$ on Thursday.
- Nifty December futures closed at 12,268.9, premium of 9.2 points versus 21.5 points.
- Nifty December futures series open interest down 0.1 percent, sheds 17,000 shares in open interest.
- Nifty Bank December futures closed at 32,260.4, premium of 19 points versus 35 points.
- Nifty Bank December futures series open interest down 3 percent, sheds 38,000 shares in open interest.
- Nifty PCR at 1.74 versus 1.72 (across all series).
Nifty Monthly Expiry: Dec. 26
- Max open interest on call side at 12,300 (20.9 lakh shares)
- Max open interest on put side at 12,000 (39.7 lakh shares)
- open interest addition seen at 12,200P (+13.7 lakh shares), 12,400C (+6.8 lakh shares)
Citi on Mindtree
- Maintained ‘Neutral’; hiked price target to Rs 800 from Rs 765
- Management continues to focus on improving FY20 revenue growth, margins and reduce quarterly volatility in earnings
- See comfort in top client growth, as per management commentary
- Merger of MindTree and LTI needs to be monitored in the medium-term
IIFL on Metals
- Global outlook for metals is improving.
- Large capex and acquisitions dent returns.
- Coal India and Hindustan Zinc have benefitted from large dividend/buybacks.
- NMDC has suffered from weakness in iron-ore prices and large capital WIP for 3 MT steel plant.
- Coal India and Hindalco are our preferred picks.
Jefferies on IndiaMart InterMesh
- Initiated ‘Buy’ with a price target of Rs 2,500.
- Dominant B2B classified platform in India with strong moats to defend it against competition.
- Expect 20 percent revenue CAGR over FY20-22 despite macro headwinds related to economic slowdown.
- Expect sharp margin expansion to 28 percent by FY22 versus 16 percent in FY19 given strong economies of scale.
- Also free cash flow positive helped by upfront collections and low capex.
Morgan Stanley on Power Grid
- Maintained ‘Overweight’; hiked price target to Rs 237 from Rs 229.
- Expect steady 9% earnings CAGR over FY19-22 in a volatile macro.
- Lower capex vs. history and asset monetization through Invit implies higher FCF and dividends.
- No AGR dues are outstanding as per management.
B&K Securities on SBI
- Upgraded to ‘Buy’ from ‘Hold’; hiked price target to Rs 390 from Rs 325.
- Key beneficiary of rising NPAs recovery.
- Non-corporate slippages are volatile but efforts are underway.
- Value unlocking in subsidiaries imminent.
- Risk return turning favourable.