Stocks To Watch: ITC, Piramal Enterprises, Axis Bank, Tata Steel, Coal India, NTPC
A stock broker trades in a trading room in Mumbai, India. (Photographer: Kuni Takahashi/Bloomberg)

Stocks To Watch: ITC, Piramal Enterprises, Axis Bank, Tata Steel, Coal India, NTPC

Asian markets have opened the new trading week with losses as concerns mount over rising Coronavirus cases across the United States. Markets in Japan and Australia have declined in early trade. South Korean shares and the Won is underperforming after the country's finance minister ruled out another budget for this year.

Futures on the Dow Jones are trading lower by over 70 points, as of 6:20 a.m. The benchmark index fell over 730 points on Friday to post losses for the week.

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

  • ITC: Net profit up 9.1% while sales fell 6.4% compared to last year. Higher excise weighs on operating margins while gross margins are boosted due to inventory gains. The company has declared a dividend of Rs 10.5 per share.
  • Coal India: Net profit down 23% due to a decline in e-auction realisations. E-auction realisations fell 23.6% compared to the previous year. Volumes remained flat due to lower demand from the power sector.
  • NTPC: Net profit down 71.2% due to settlement of income tax disputes under the Vivad se Vishwas scheme, resulting in additional provisions worth Rs 2,660 crore. Core generation revenue grew 26% compared to the previous year to Rs 27,079 crore.
  • Piramal Enterprises: Approves divesting 20% stake in Piramal Pharma to the Carlyle Group for an equity investment of $490 million. The proposed transaction values the pharma business at an Enterprise Value of $2,775 million. The Enterprise Value will have an upside component of $360 million based on its FY21 performance. The final amount of the equity investment will depend upon net debt, exchange rate and performance. Separately, one of the company's affiliates has acquired 100% stake in G&W PA lab for a consideration of $17.5 million, in an all cash deal.
  • IDBI Bank: Board approves selling stake in IDBI Federal Life Insurance. Bank to sell 23% stake to Ageas and 4% to Federal Bank for a total sum of Rs 595 crore. Deal subject to regulatory approvals to be taken by all related parties.
  • Axis Bank: S&P Global Ratings lowered the lender's credit rating to below investment grade, on expectations of a looming recession in India due to Covid-19. Rating cut to BB+ from BBB- while the outlook has been retained as stable. The ratings agency expects the asset quality of Indian banks to deteriorate, credit costs to rise and profitability to decline over the next 12 months.
  • Mahindra Logistics: The Board of Directors have approved further investment in Lords Freight (India). The company will purchase 3.8 lakh shares of Lords from the existing promoter shareholders. Post the acquisition, Mahindra Logistics will now hold 99% shares of the company. The consideration worth Rs 4 crore will be done in cash. The company expects the acquisition to be completed by September 2020.
  • Power Finance Corporation On S&P's Rating Downgrade: Downgrade done after the withdrawl of S&P rating mandate by the company. Will manage to sail through this slowdown with strong government support. Change in credit rating does not reflect any change in the company's financial position.
  • Adani Transmission: To acquire 100% stake in Kharghar Vikhroli Transmission. Project comprises of nearly 34 km of 400 kV and 220 kV transmission lines along with 1,500 MVA 400 kV GIS substation in Vikhroli. The company shall build, own, operate and maintain the transmission project in the state of Maharashtra for 35 years.
  • BHEL: CARE Ratings downgrades the company's long-term bank facilities to CARE AA from CARE AA+ while the outlook has been maintained as stable. Decline in execution of orders, further aggravated by Covid-19, high concentration of orders in the thermal power segment which is beset with overcapacity, declining competitiveness are some of the reasons mentioned for the downgrade.
  • Investment Trust of India: NCLT approves merger of company's reinsurance arm with itself.
  • Phoenix Mills: To consider raising equity on June 29.
  • ITI: Signs accord with Tech Mahindra for wireles technology in the areas of 4G and 5G smart networks, smart cities and healthcare services.
  • Jay Bharat Maruti: Board approved proposal to issue securities up to Rs 150 crore.
  • Andhra Paper: SBI Mutual Fund acquired 7.88% stake in the company's OFS on June 25.
  • Nifty Earnings Today: Tata Steel
  • Non-Nifty Earnings Today: Phoenix Mills, Raymond, MRF, CESC, Petronet LNG, MIDHANI, Lux Industries, Central Bank of India, Bharat Forge, Hindustan Copper, Minda Industries, Parag Milk Foods, Rail Vikas Nigam, Spencer's Retail, Venky's, Welspun India.

Earnings Reported After Market Hours

Sun TV Q4FY20

  • Revenue down 17.3% to Rs 735.2 crore
  • Net profit down 11.7% to Rs 250 crore
  • Ebitda down 17.2% to Rs 503.6 crore
  • Ebitda margin flat at 68.5%
  • Subscription revenue up 25% to Rs 398.8 crore
  • All numbers are standalone and compared on a year-on-year basis

Avanti Feeds Q4FY20

  • Revenue up 21% to Rs 1,034 crore
  • Net profit up 28% to Rs 67 crore
  • Ebitda up 34% to Rs 124.6 crore
  • Ebitda margin at 12% from 10.9%
  • Shrimp feed business revenue up 14.7% to Rs 764.59 crore
  • Processed Shrip business revenue up 38% to Rs 270.64 crore
  • Final dividend of Rs 0.10 per share
  • Impact of Covid-19 on the future is premature since virus is still aggressive in India
  • All numbers are consolidated and compared on a year-on-year basis

Glenmark Pharma Q4FY20

  • Revenue up 8% to Rs 2,767.1 crore
  • Net profit up 36% to Rs 220 crore
  • Ebitda up 28% to Rs 465.2 crore
  • Ebitda margin at 16.8% from 14.2%
  • India business revenue up 14.5% to Rs 764 crore
  • North America business revenue flat at Rs 761 crore
  • Rest of the World revenue down 12.6% to Rs 336 crore
  • European revenue up 29.2% to Rs 411.5 crore
  • Latin America revenue up 46.9% to Rs 176.8 crore
  • API revenue up 5% at Rs 261 crore
  • Board recommends dividend of Rs 2.5 per share
  • All numbers are consolidated and compared on a year-on-year basis

Oil India Q4FY20

  • Revenue down 16% to Rs 2,589.5 crore
  • Net profit of Rs 925.6 crore from net loss of Rs 208.54 crore
  • Ebitda loss of Rs 1,101.4 crore from Ebitda positive of Rs 1,079.3 crore
  • Higher expenses impact operational performances
  • Expenses up 60% to Rs 4,076.5 crore
  • Exceptional item of Rs 1,026 crore in the base quarter
  • Tax write-back of Rs 1,418.4 crore this quarter
  • Adoption of lower tax rate resulted in reversal of deferred tax liability of Rs 821.01 crore during the quarter
  • Crude oil segment revenue down 16.2% to Rs 2,011 crore
  • Natural Gas segment revenue down 17.2% to Rs 447.6 crore
  • LPG segment revenue up 9.5% to Rs 35.7 crore
  • Pipeline Transportation revenue down 13.6% to Rs 64.62 crore
  • Renewable Energy segment revenue down 20.7% to Rs 26.44 crore
  • All numbers are standalone and compared on a year-on-year basis

NALCO Q4FY20

  • Revenue down 30% to Rs 1,935.9 crore
  • Net profit down 56% to Rs 102.7 crore
  • Ebitda down 60% to Rs 208.3 crore
  • Ebitda margin down to 10.8% from 18.7%
  • Chemicals segment revenue down 15% to Rs 1,171 crore
  • Aluminium segment revenue down 32% to Rs 1,132 crore
  • All numbers are consolidated and compared on a year-on-year basis

Rupa & Company Q4FY20

  • Revenue down 55.4% to Rs 178.8 crore
  • Net los of Rs 4.3 crore from net profit of Rs 27.4 crore
  • Ebitda down 85.7% to Rs 7.4 crore
  • Ebitda margin at 4.1% from 12.9%
  • Declares dividend of Rs 3 per share
  • All numbers are consolidated and compared on a year-on-year basis

BEML Q4FY20

  • Revenue down 22% to Rs 1,066.4 crore
  • Net profit up 15% to Rs 186.3 crore
  • Ebitda down 43% to Rs 143.7 crore
  • Ebitda margin at 13.5% from 18.5%
  • Tax write-back of Rs 44.3 crore this quarter
  • Declares dividend of Rs 2.50 per share
  • All numbers are compared on a year-on-year basis

West Coast Paper Q4FY20

  • Revenue up 28% to Rs 742.8 crore
  • Net profit more than doubles to Rs 119.9 crore
  • Ebitda up 18% to Rs 175.66 crore
  • Ebitda margin at 23.6% from 25.7%
  • Higher finance costs impact margins
  • Higher other income contributes to rise in profit
  • Other income nearly triples to Rs 10.91 crore
  • Tax credit of Rs 47.84 crore this quarter
  • Paper and Paper Board revenue up 38% to Rs 726 crore
  • Telecommunication cables revenue down 69% to Rs 16.87 crore
  • All numbers are consolidated and compared on a year-on-year basis

HUDCO Q4FY20

  • Revenue up 28% to Rs 1,888.5 crore
  • Net profit up 87% to Rs 440.9 crore
  • Ebitda up 31% to Rs 1,724.9 crore
  • Ebitda margin at 91.3% from 89.1%
  • Declares revenue of Rs 2.35 per share
  • All numbers are consolidated and compared on a year-on-year basis

Bulk Deals

  • Andhra Paper: Bright Star Investment acquired 5 lakh shares (1.26%) at Rs 206.23 per share
  • Eveready Industries: Dovetail India Fund acquired 4.8 lakh shares (0.66%) at Rs 79.05 per share
  • Mangalore Chemicals and Fertilizers: Recovery Officer DRT sold 5.95 lakh shares (0.50%) at Rs 40.92 per share
  • Varun Beverages: Promoter Ravi Jaipuria sold 15 lakh shares (0.52%) at Rs 685.01 per share
  • Wheels India: Promoter Titan Europe sold 1.76 lakh shares (0.73%) at Rs 431.2 per share
  • Gujarat Pipavav Ports: Promoter APM Terminals Mauritius acquired 48.35 lakh shares (1%) at Rs 89.99 per share

Who’s Meeting Whom

  • Tata Consumer Products: To meet Axis AMC, Baillie Gifford and other investors on June 29
  • Mahindra & Mahindra: To meet Lazard Asset Management, DSP Mutual Fund and other investors between June 29 to July 3.
  • Dr Lal Pathlabs: To meet Ambit Capital on June 29.
  • Cipla: To meet Nomura AMC and Capital Research Global Investors between June 29-30
  • Prince Pipes and Fittings: To meet TATA Mutual Fund and HDFC Mutual Fund between June 29-30
  • Akzo Nobel: To meet UTI Mutual Fund, Tata Mutual Fund and other investors on June 29.

Trading Tweaks

  • Price Band Revised From 10% To 5%: Indian Overseas Bank, Megasoft, Oswal Agro Mills, Hilton Metal Forging
  • Price Band Revised From 20% To 10%: BLS International Services, Elgi Rubber
  • Move Into ASM Framework: Ester Industries, Ashapura Minechem, Bhagyanagar India, Lyka Labs, CG Power and Industrial Solutions
  • Move Out of ASM Framework: Future Lifestyle Fashions, Titagarh Wagons, NACL Industries, Reliance Power, Welspun Corp, V2 Retail, VA Tech Wabag, TCI Finance, Jaiprakash Associates, Punj Lloyd, Jet Airways, Videocon Industries
  • Move Into Short-Term ASM Framework: Surya Roshni, Trent, Greenlam Industries, Texmo Pipes and Products, Adani Transmission, A2Z Infra Engineering.
  • Move Out Of Short-Term ASM Framework: GTPL Hathway

Insider Trades

  • Mangalam Cement: Promoter acquired 3.32 lakh shares on June 24
  • IOL Chemical and Pharma: Promoter NCVI Enterprises acquired 4 lakh shares on June 25
  • IndusInd Bank: Promoter IndusInd International Holdings acquired 1.66 lakh shares between June 24-25
  • Granules India: Promoters sold 50 lakh shares on June 25
  • Dr Lal Pathlabs: Promoter Dr Vandana Lal sold 2 lakh shares on June 23

F&O Cues

  • Nifty July futures ended at 10,318; discount widens to 65 points from 57 points
  • Nifty July futures add 9.4% and 9.9 lakh shares in Open Interest
  • Nifty Bank July futures end at 21,462; discount widens to 130 points from 80 points
  • Nifty Bank July futures shed 6.2% and 78,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.33 from 1.27 across all series

Nifty: July 2 Expiry

  • Maximum Open Interest on Call side at 11,000 strike (27.2 lakh shares)
  • Maximum Open Interest on Put side at 10,000 strike (20.1 lakh shares)
  • Active Options: 10,000 Put (+6.3 lakh shares) and 11,000 Call (+14.4 lakh shares)

Nifty: July 30 Expiry

  • Maximum Open Interest on Call side at 11,500 strike (18.9 lakh shares)
  • Maximum Open Interest on Put side at 9,000 strike (21 lakh shares)

F&O Buzzers & Fund Flows

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