Private Banks, Tata Steel Fuel Sensex, Nifty Gains To New Record Close

Indian equity benchmarks extended gains for the second consecutive trading session and registered their best two-day rally in a week to close at record highs.

The S&P BSE Sensex closed 248 points or 0.63 percent higher at 39,683.29 and the NSE Nifty 50 closed at 11,924.75, up 0.68 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.85 percent higher.

The market breadth was tilted in favour of buyers. About 1,331 stocks gained and 470 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Realty Index’s 2.18 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.97 percent.

Colgate reported a net profit of Rs 197.59 crore in the three months ended March, an increase of 4.7 percent from the year ago period, according to its stock exchange filing. The company’s revenue rose 5.7 percent on a yearly basis to Rs 1,146.63 crore during the period.

Sundaram-Clayton

• Stock fell as much as 4.8 percent to Rs 2,571.30.
• Trading volume was more than 150 times its 20-day average.

Varroc Engineering

• Stock rose as much as 5.6 percent to Rs 523.70.
• Trading volume was almost 14 times its 20day average.

Page Industries

• Stock fell as much as 13.4 percent to Rs 19,007.
• Trading volume was more than 11 times its 20-day average.

Honeywell Automation India

• Stock rose as much as 14.8 percent to Rs 27,892.35.
• Trading volume was more than 10 times its 20-day average.

Suprajit Engineering

• Stock rose as much as 12.6 percent to Rs 227.
• Trading volume was more than 10 times its 20-day average.

Narayana Hrudayalaya

• Stock rose as much as 20 percent to Rs 238.85.
• Trading volume almost nine times its 20-day average.

GAIL’s net profit in the three months ended March fell 33 percent on a sequential basis to Rs 1,681 crore, according to its stock exchange filing.

Key Earnings Highlights (Q4, QoQ)

• Revenue down 5.2 percent to Rs 18,763.41 crore.
• Ebitda down 37 percent to Rs 1,684.08 crore.
• Margin at 8.9 percent versus 13.5 percent.
• Exceptional loss of Rs 326 crore due to impairment of investments.
• Company announces bonus shares in the ratio 1:1.

Shares of GAIL rose 2.1 percent to Rs 348.85 after the results announcement.

Bharat Heavy Electricals Ltd.’s net profit rose 50 percent on a yearly basis to Rs 682.70 during January-March period, according to its stock exchange filing. Its revenue rose 0.8 percent year-on-year to Rs 10,297.16 crore.

India’s Government-Owned Firms Pay A Hefty Price For Increased Borrowings

Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 12.21 percent to Rs 33.80. Over 3.4 lakh shares were added to the open interest which stood at over 40.29 lakh shares.

Avanti Feeds (Q4, YoY)

• Stock rose as much as 6.6 percent to Rs 364.
• Revenue up 2.8 percent to Rs 857.7 crore.
• Net profit down 18 percent to Rs 68 crore.
• Ebitda down 20.4 percent to Rs 93.4 crore.
• Margin at 10.9 percent versus 14.1 percent.
• Inventory gain of Rs 35.4 crore in base quarter.

Grasim Industries (Q4, YoY)

• Stock rose as much as 2.4 percent to Rs 931.45.
• Revenue up 16.1 percent to Rs 5,352.3 crore
• Net profit up 20.9 percent to Rs 451.2 crore
• Ebitda up 5.6 percent to Rs 898.6 crore
• Margin at 16.8 percent, versus 18.5 percent
• Exceptional loss of Rs 84.7 crore, compared with Rs 218.7 crore
• Employee expenses up 24 percent to Rs 425.1 crore
• Deferred tax reversal (on exceptional item) at Rs 59.4 crore in base quarter

Page Industries (Q4, YoY)

• Stock fell as much as 10.2 percent to Rs 19,700.
• Revenue flat at Rs 608 crore
• Net profit down 20.4 percent to Rs 75 crore
• Ebitda down 18.5 percent to Rs 119.7 crore
• Margin at 19.7 percent, from 24.1 percent
• Employee costs up 24 percent to Rs 124.4 crore
• Inventory gain of Rs 108 crore in current quarter

Indraprastha Gas (Q4, YoY)

• Stock rose as much as 6.7 percent to Rs 335.
• Revenue up 27.1 percent to Rs 1,542.6 crore
• Net profit up 29.1 percent to Rs 225.5 crore
• Ebitda up 13.8 percent to Rs 331.1 crore
• Margins at 21.5 percent, versus 24 percent
• Total volumes up 17 percent to 6.27 million metric standard cubic meter per day
• Ebitda per standard cubic meter down 2.7 percent to Rs 5.87

Bata (Q4, YoY)

• Stock rose as much as 2.1 percent to Rs 1,367.
• Revenue up 7.4 percent to Rs 679.4 crore
• Net profit up 72.9 percent to Rs 88.2 crore
• Ebitda up 14.8 percent to Rs 94.5 crore
• Margin at 13.9 percent, versus 13 percent
• Tax reversal of Rs 19.9 crore in current quarter

Astrazeneca Pharma (Q4, YoY)

• Stock fell as much as 5.2 percent to Rs 2,089.85.
• Revenue up 26.3 percent at Rs 190.3 crore
• Net profit up 3x at Rs 9.8 crore
• Ebitda down 58.2 percent to Rs 6.4 crore
• Margin at 3.4 percent, versus 10.2 percent
• Inventory gain of Rs 40.3 crore in current quarter
• Employee expenses up 36 percent at Rs 60.4 crore

Dixon Technologies (Q4, YoY)

• Stock rose as much as 3.8 percent to Rs 2,519.65.
• Revenue up 43.8 percent at Rs 858.8 crore
• Net profit up 17 percent to Rs 16.5 crore
• Ebitda up 36.9 percent to Rs 37.5 crore
• Margin at 4.4 percent, versus 4.6 percent
• Inventory gain of Rs 26.7 crore in current quarter
• Washing machine segment revenue up 2 percent at Rs 92.9 crore
• Moulding segment revenue up 36 percent to Rs 40.1 crore
• Mobile segment revenue down 13 percent to Rs 67.1 crore
• Other electronics segment revenue up 59 percent at Rs 698.6 crore

Dish TV (Q4, YoY)

• Stock rose as much as 5.5 percent to Rs 32.90.
• Revenue down 8.7 percent to Rs 1,398.8 crore
• Net loss at Rs 1359.9 crore, compared with a profit of Rs 121.3 crore
• Ebitda up 3.6 percent at Rs 415 crore
• Margin at 29.7 percent, versus 26.1 percent
• Exceptional loss of Rs 1562.5 crore in current quarter
• Other expenses down 54 percent at Rs 91 crore

Narayana Hrudayalaya (Q4, YoY)

• Stock rose as much as 20 percent to Rs 238.85.
• Revenue up 18.3 percent to Rs 765.2 crore
• Net profit up 3.8x at Rs 37.2 crore
• Ebitda up 70.7 percent to Rs 89.3 crore
• Margin at 11.7 percent, versus 8.1 percent

Coffee Day Enterprises (Q4, YoY)

• Stock fell as much as 3.4 percent to Rs 241.10.
• Revenue up 17 percent at Rs 1,322.2 crore
• Net profit up 2 percent at Rs 25.8 crore
• Ebitda down 28 percent at Rs 124.4 crore
• Margin at 9.4 percent, from 15.3 percent
• Finance cost up 59 percent at Rs 145 crore
• Other income of Rs 110.3 crore and exceptional gain of Rs 25.1 crore in current quarter
• Short term borrowing up 4.8x at Rs 3889.6 crore

Butterfly Gandhimathi Appliances (Q4, YoY)

• Stock rose as much as 3.9 percent to Rs 197.90.
• Revenue up 35.4 percent to Rs 149.5 crore
• Net profit up 2.2x at Rs 1.1 crore
• Ebitda up 4.3 percent at Rs 9.8 crore
• Margin at 6.6 percent, versus 8.5 percent

Excel Industries (Q4, YoY)

• Stock fell as much as 5.5 perrcent to Rs 1,070.10.
• Revenue up 4.2 percent at Rs 190.7 crore
• Net profit down 11.7 percent to Rs 30.1 crore
• Ebitda down 9.9 percent to Rs 51 crore
• Margin at 26.7 percent, from 30.9 percent

REC (Q4, YoY)

• Stock rose as much as 1.4 percent to Rs 146.35.
• Net interest income up 26.7 percent to Rs 2,332.4 crore
• Net profit up 49.6 percent to Rs 1256.1 crore

Amber Enterprises (Q4, YoY)

• Stock rose as much as 1.8 percent to Rs 873.70.
• Revenue up 40.4 percent to Rs 971.3 crore
• Net profit up 82.2 percent to Rs 61.6 crore
• Ebitda up 51 percent to Rs 102.5 crore
• Margin at 10.6 percent, versus 9.8 percent

GIC Housing Finance (Q4, YoY)

• Stock fell as much as 3.1 percent to Rs 256.05.
• Net interest income down 11.1 percent at Rs 92.6 crore
• Net profit down 23.3 percent to Rs 51 crore

Birlasoft (Q4, QoQ)

• Stock fell as much as 6.5 percent to Rs 83.10.
• Numbers not comparable due to demerger
• Revenue up 39.8 percent to Rs 788.3 crore
• Net profit up 3.4 percent at Rs 66.1 crore
• Ebitda down 4.6 percent to Rs 62.2 crore
• Margin contract to 7.9 percent, from 11.6 percent
• Other income of Rs 17 crore, and exceptional gain of Rs 17.6 crore in current quarter
• Forex loss of Rs 49.7 crore in base quarter

Mawana Sugars (Q4, YoY)

• Stock rose as much as 15.6 percent to Rs 67.
• Revenue down 21.9 percent to Rs 289.7 crore
• Net profit down 185.8 percent at Rs 21.9 crore
• Ebitda profit of Rs 58.8 crore, compared with ebitda loss of Rs 32.8 crore
• Deferred tax reversal of Rs 16 crore in base quarter
• Depreciation up 2.6x at Rs 16.3 crore

Zuari Global (Q4, YoY)

• Stock fell as much as 3.5 percent to Rs 94.75.
• Revenue down 87.7 percent to Rs 0.7 crore
• Net profit down 81 percent at Rs 0.4 crore
• Ebitda loss of Rs 2.3 crore, versus loss of Rs 1.7 crore
• Other Income up 2.1x to Rs 6.7 crore

NCC (Q4, YoY)

• Stock rosee as much as 4.5 percent to Rs 119.20.
• Revenue up 43.7 percent to Rs 3,761 crore
• Net profit up 4x at Rs 187.6 crore
• Ebitda up 58.4 percent to Rs 475.3 crore
• Margin at 12.6 percent, from 11.4 percent

Liberty Shoes (Q4, YoY)

• Stock rose as much as 2.9 percent to Rs 133.
• Revenue up 8.1 percent to Rs 143.9 crore
• Net profit down 23.5 percent to Rs 1.3 crore
• Ebitda down 2.8 percent to Rs 10.4 crore
• Margin at 7.2 percent, from 8 percent

Whirlpool (Q4, YoY)

• Stock rose as much as 1.8 percent to Rs 1,399.
• Revenue up 7.8 percent to Rs 1,355.2 crore
• Net profit rises 13.9 percent to Rs 104.1 crore
• Ebitda up 19.9 percent to Rs 171.4 crore
• Margin at 12.6 percent, from 11.4 percent

Responsive Industries (Q4, YoY)

• Stock fell as much as 3.1 percent to Rs 86.30.
• Revenue down 67.6 percent to Rs 76.6 crore
• Net loss at Rs 11.3 crore, versus net profit of Rs 3.8 crore
• Ebitda loss at Rs 2.5 crore, compared with profit of Rs 22.34 crore

Nagarjuna Fertilizers and Chemicals (Q4, YoY)

• Stock rose as much as 5.1 percent to Rs 6.20.
• Revenue down 50 percent at Rs 510.3 crore
• Net loss at Rs 138.2 crore, compared with loss of Rs 7.1 crore earlier
• Ebitda loss at Rs 51.9 crore, versus Ebitda profit of Rs 81.8 crore

Meghmani Organics (Q4, YoY)

• Stock rose as much as 3.6 percent to Rs 68.15.
• Revenue up 18.4 percent at Rs 557.7 crore
• Net profit up 32.5 percent to Rs 66.5 crore
• Ebitda up 32.3 percent to Rs 158.7 crore
• Margins at 28.5 percent, versus 25.5 percent
• Exceptional loss of Rs 15.9 crore in current quarter

NESCO (Q4, YoY)

• Stock rose as much as 5.6 percent to Rs 511.
• Revenue up 23.8 percent to Rs 93.5 crore
• Net profit up 20 percent to Rs 51.4 crore
• Ebitda up 23.4 percent to Rs 65.2 crore
• Margin at 69.7 percent, versus 69.9 percent

Camlin Fine Sciences (Q4, YoY)

• Stock rose as much as 14.5 percent to Rs 51.40.
• Revenue up 33.8 percent to Rs 171.5 crore
• Net profit up 2.3x at Rs 2.7 crore
• Ebitda down 23.4 percent to Rs 8.5 crore
• Margin at 5 percent, from 8.7 percent
• Other expenses up 41 percent to Rs 27 crore

FDC (Q4, YoY)

• Stock rose as much as 10.6 percent to Rs 219.95
• Revenue down 0.6 percent to Rs 269.8 crore
• Net profit up 7 percent to Rs 33.7 crore
• Ebitda up 41.3 percent at Rs 42.8 crore
• Margin at 15.9 percent, from 11.2 percent
• Inventory loss of Rs 16.6 crore in base quarter

Shares of the Radio City operator in India rose as much as 2.1 percent to Rs 59.10.

The company terminated its Business Transfer Agreement to acquire radio business of Ananda Offset’s ‘Friends 91.9 FM’ on account of uncertainty of receipt of regulatory approval.

Of the shares traded, 35 percent were at the ask price and 59 percent were at the bid, Bloomberg data showed. The stock traded at 28 times its estimated earnings per share for the coming year.

Futures –May series

Nifty

• Nifty futures closed trading at 11869.4, premium of 25 points versus 35 points.

Bank Nifty

• Bank Nifty futures closed trading at 31,222.8, premium of 10 points versus 69 points
• Bank Nifty OI up 14 percent adds 2.2 lakh shares in OI

Options

• Nifty PCR at 1.23 versus 1.05 (across all series)

Nifty Monthly Expiry

• Max OI on call side at 12,500 (47lk shares) followed by 12,000 (36.9lk shares)
• Max OI on Put side at 11,000 (40lk shares) followed by 11,500 (27.4lk shares)
• Max OI addition seen at 11,700P (+10.7lk shares), 11,600P (+7lk shares)
• Max OI shedding seen at 12,000C (-10.8lk shares), 12,500 C (-10lk shares)

Stocks In F&O Ban

• Adani Power
• IDBI Bank

On NBFCs

CLSA

• Tighter liquidity norms to put pressure on margins/growth.
• NBFCs with ALM gaps, lower ratings, and higher funding cost are worse off.
• Negative spreads on G-Secs can be in a wide 200-400 basis points range.
• HDFC remains our top pick in this space.

Investec

• Guidelines cover majority of listed NBFCs; NHB likely to follow.
• Guidelines to strengthen ALM and improve stakeholders’ confidence in the sector.
• See minor impact on NBFC’s profitability – less than 5 percent of net profit.
• Select NBFCs will have to increase liquidity to comply with LCR requirements.

On JSW Steel

Edelweiss

• Maintained ‘Hold’; cut price target to Rs 316 from Rs 320.
• Ebitda beat on higher domestic shipments.
• Over-leveraging concerns lurk from capex commitments.
• Expect stable Ebitda per tonne owing to ramp up of value-added capacity and cost efficiencies.

Kotak

• Maintained ‘Reduce’; cut price target to Rs 255 from Rs 265
• March quarter review: earnings beat with higher-than-expected volumes despite weak realizations
• Cost saving projects to aid margins in 2019-20; expansion to drive growth in the next financial year.
• In current environment see rising leverage as a concern.

Investec

• Maintained ‘Hold’; cut price target to Rs 289 from Rs 300.
• Core operations surprise, offsetting loss-making subs.
• Balance Sheet remains key and needs to be seen how it would acquire Bhushan Power while adhering to leverage.
• Cut price target on the back of contracting spreads and lower volume guidance.

On Ashok Leyland

CLSA

• Maintained ‘Sell’ with a price target of Rs 65.
• Subdued Q4; stock too expensive for a looming downturn.
• Product mix weakening post new axle norms.
• Market share peaking after year years of gains; competition to intensify in slowdown.

Kotak

• Maintained ‘Buy’; cut price target to Rs 130 from Rs 140.
• Weak quarter due to tough industry conditions.
• Cut EPS estimates by 5 percent for FY20-21 to build in higher discounting levels.

On IGL

Jefferies

• Maintained ‘Buy’ with a price target of Rs 340.
• Volume growth stronger than expected; margins below estimates.
• Expected margins to improve but rise in gross margins was offset by higher staff costs.

Centrum

• Maintained ‘Buy’ with a price target of Rs 361.
• Volumes growth continues unabated.
• Gross margins remain strong, opex drags Ebitda.
• See strong prospects ahead.

Nomura

• Maintained ‘Buy’ with a price target of Rs 400.
• March quarter review ahead driven by solid 17 percent volume growth.
• Remains a key beneficiary of the government’s/judiciary’s focus on the pollution in Delhi NCR.
• IGL could surprise with higher volume growth for longer.

On Whirlpool

Kotak

• Maintained ‘Sell’ with a price target of Rs 1,220.
• Weak March quarter; Ebitda was below estimates on lower-than-expected revenue growth.
• Cut FY20-21 EPS estimates by 4-5 percent on lower revenue and margin.
• Expect 12 percent EPS CAGR over FY19-21; Sell stays on expensive valuations.

Jefferies

• Maintained ‘Hold’; cut price target to Rs 1,560 from Rs 1,625.
• March quarter review: Steady quarter; most positives priced in at current valuations.
• Management indicated softness in demand in March and a possibility of commodity headwinds going ahead.
• Cut FY20/21 EPS estimates by 3-4 percent, factoring in concerns from rising competition, amidst softness in demand environment.

On Grasim

Edelweiss

• Maintained ‘Buy’; hiked price target to Rs 1,069 from Rs 988.
• VSF business disappointed with blended realisation falling QoQ.
• Given global over capacity concerns, it may remain soft in the near term.
• Overhang of capital allocation in favour of group companies remains.
• Price target hiked to factor in recent upgrade in Ultratech Cement.

Deutsche Bank Research

• Maintained ‘Buy’ with a price target of Rs 1,075.
• March quarter results disappointed on weaker margins.
• VSF margin impacted by large capacity addition by Sateri.
• Capacity expansion to be RoE accretive.

On Dish TV

CLSA

• Maintained ‘Buy’; cut price target to Rs 60 from Rs 70.
• March quarter results were below estimates impacted by TRAIs new tariff regime.
• Migration impacts Arpu and additions.
• Essel Group deleveraging will be a key trigger for the stock.
• Management has guided for 2019-20 margins to expand by 180 basis points to 35 percent.

Edelweiss

• Maintained ‘Hold’ with a price target of Rs 27.
• Tariff order impacts subscription and net addition.
• Expect Q1FY20 subscription revenue growth to be under pressure.
• Maintain hold in light of potential disruption to distribution business from OTT and threat from RJio.

More Calls

Edelweiss on NCC

• Maintained ‘Buy’; hiked price target to Rs 155 from Rs 132.
• Sustains strong execution run rate.
• Order inflows remain buoyant.
• Healthy revenue visibility and strong execution skills underpin bullish stance.

Edelweiss on Welspun India

• Maintained ‘Buy’; cut price target to Rs 72 from Rs 77.
• March quarter reported flat earnings, but bounce back in 2018-19 growth; debt stable.
• U.S. litigation settled; payout likely to be capped at $36 million.
• Management confident of double-digit revenue growth and 150-350 basis points margin improvement in the current financial year.

Kotak on Ashoka Buildcon

• Maintained ‘Neutral’; hiked price target to Rs 225 from Rs 210.
• Very strong March quarter; order backlog and strong order pipeline provide good growth visibility for 2019-20.
• Consolidated cash profits scale up in FY2019, easing balance sheet concerns.
• Scale-up in construction business and limited leverage and other positives.

Kotak on JK Lakshmi Cement

• Maintained ‘Add’; hiked price target to Rs 432 from Rs 325.
• Q4FY19 – volumes rise but weak prices disappoint.
• Mgmt. highlighted that its primary focus was on deleveraging for 2019-20.
• Hike Ebitda estimate by 6-8 percent for FY20-21 factoring lower commodity costs and contribution from captive power plant.

Investec on Dixon Tech

• Maintained ‘Buy’; hiked price target to Rs 2,680 from Rs 2,540.
• March quarter was marginally ahead led by continued strong performance of Lighting business.
• Cap employed in LED TV business rose sharply as Dixon partly funded customs duty/GST for Xiaomi.
• Addition of new customers can further enhance its scale advantages.

Nifty Earnings To Watch

• Adani Ports & SEZ
• GAIL
• Zee Entertainment

Other Earnings To Watch

• NHPC
• Motherson Sumi Systems
• Oil India
• Omaxe
• MphasiS
• Music Broadcast
• Natco Pharma
• Prestige Estates Projects
• Thomas Cook
• UFLEX
• InterGlobe Aviation
• 63 moons technologies
• Abbott India
• Adani Gas
• AIA Engineering
• Arshiya
• Bayer Cropscience
• Bharat Heavy Electricals
• Century Plyboards
• Cheviot
• Colgate Palmolive
• DCM Shriram Industries
• Dollar Industries
• Elgi Equipments
• Emami
• Eveready Industries
• Fine Organic Industries
• Force Motors
• Future Enterprises
• GE Power India
• Gujarat Fluorochemicals
• Hindustan Aeronautics
• Hotel Leela Venture
• IFB Agro Industries
• Jaypee Infratech
• Kaveri Seed
• L. P. Naval And Engineering
• Mold-Tek Packaging
• Nelcast
• Pennar Industries
• Pokarna
• Precision Camshafts
• PTC Industries
• Rane Holdings
• Reliance Communications
• Sadbhav Infrastructure Project
• Sandhar Technologies
• Setco Automotive
• Shilpa Medicare
• Shriram EPC
• Som Distilleries & Breweries
• Suprajit Engineering
• Hi-Tech Gears
• Usha

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