Stocks To Watch: Apar Industries, Dixon Technologies, Punjab & Sind Bank

• Reliance Industries commissions a refinery off-gas cracker at Jamnagar with a capacity of 1.5 MMTPA.
• Punjab & Sind Bank to raise Rs 1,000 crore via equity.
  
• Orient Green Power sold 8 biomass subsidiaries to Janati BioPower for Rs 49 crore.
  
• Orient Exports to consider buyback of equity shares on Jan. 5.
  
• VST Tillers Dec. sales up 79 percent to 3,615 units.

Indian equity benchmarks closed little changed after intraday fluctuations, in contrast to a strong rally in Asia, on concern the government may impose higher capital gains tax on stocks amid slow economic recovery.

The S&P BSE Sensex was little changed at 33,812 and the NSE Nifty 50 Index was also little changed at 10,442.

The Singapore traded SGX Nifty, an early indicator of Nifty 50 Index's performance in India, was a little changed at 10,503 as of 6:50 a.m.

Where will the market swing today?https://t.co/8er5OTZ8hn

January 3, 2018

Here Are The Stocks To Watch In Wednesday's Trade:

• Reliance Industries commissions a refinery off-gas cracker at Jamnagar with a capacity of 1.5 MMTPA.
• Titan says third quarter jewelry retail growth is in-line with the company's expectation.
• Punjab and Sind Bank to raise Rs 1,000 crore via equity.
• Apar Industries enters into a 40:60 joint venture with PPS Motors.
• SEBI revokes shell company status of Gallantt Ispat.
• Orient Green Power sold 8 biomass subsidiaries to Janati Bio Power for Rs 49 crore.
• SORIL Holdings and Ventures allots 3.5 crore warrants to promoters at Rs 132 per share.
• Lasa Supergenerics files new CEP application with European Medicines Directorate.
• Orient Exports to consider buyback of equity shares on Jan. 5.
• Indowind Energy to raise Rs 30 crore through a QIP or rights issue.
• Dixon Technologies commences manufacturing of CCTVs and DVRs at its Tirupati facility.
• VST Tillers Dec. sales up 79 percent to 3,615 units.

SBI earns Rs 1,772 crore in minimum balance penalty during April-November.https://t.co/RAv22BuIuv pic.twitter.com/k8dLu5QQ8y

January 3, 2018

Bulk Deals

• Capri Global Capital: Promoter Capri Global Holdings Pvt Ltd bought 13.56 lakh shares or 0.8 percent equity at Rs 119.51 each.
• Euro Ceramics: Aspire Emerging Fund sold 2.65 lakh shares at Rs 8.07 each.
• Reliance Naval: IL&FS Financial Services sold 94 lakh shares or 1.3 percent equity at Rs 63.02 each.
• Uttam Galva Steel: Eriska Investment Fund sold 8.50 lakh shares or 0.6 percent equity at Rs 21.83 each.
• Ashapura Intimates Fashion: Sunglow Capital sold 3.10 lakh shares or 1.6 percent equity at an average of Rs 453.3 each.

Websol Energy System:

• Garnet International bought 17.62 lakh shares or 7 percent equity at an average of Rs 127.7 each.
• India Max Investment Fund sold 14.14 lakh shares or 5.6 percent equity at Rs 121.31 each.

#GST is becoming bad news for truckers.https://t.co/dZqJmCdXWR pic.twitter.com/m8HQqQK1vo

January 3, 2018

F&O Setup

• Nifty January futures trading at 10,472.2, premium of 30 points versus 64 points.
• January Series: Nifty open interest up 1 percent; Bank Nifty open interest up 3 percent.
• India VIX ended at 13.6, up 2.4 percent.
• Max open interest for Jan. series at 11,000 Call (open interest at 44 lakh, up 7 percent).
• Max open interest for Jan. series at 10,300 Put (open interest at 49.9 lakh, up 6 percent).

F&O Ban

• In ban: GMR Infrastructure, HDIL, IFCI, JP Associates, Reliance Communications, Reliance Power.
• New in ban: GMR Infrastructure, IFCI, Reliance Power.

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

Active Stock Futures

Brokerage Radar

Goldman Sachs on Indian Steel

• Indian steel sector is in midst of a multi-year upcycle.
• Positives: higher spreads, rising capacity utilization and improving iron ore supply.
• Steel prices to be strong led by supply discipline in China.
• Elevated steel prices with softening input costs to drive profitability.
• Increased focus on infrastructure and rural spending to drive demand.
• Pick up durable/auto sales and real estate to drive demand.

Goldman Sachs on JSW Steel

• Initiated ‘Buy' with price target of Rs 315.
• Best placed to benefit from shift in macro-economic landscape.
• Capex to drive growth and realisations.
• Expect strong free cash flow generation and deleveraging.
• Net debt to EBITDA to reduce to 2.6 times by March 2020.
• Expect revenue, operating income and net profit to grow at a compounded rate of 8.6 percent, 14 percent and 28 percent respectively over the financial years through March 2020.
• Expect return on equity and return on capital employed to expand to 23 percent and 13 percent respectively by March 2020.
• Expect dividend payout to remain stable at 15 percent over the medium term.

Goldman Sachs on Tata Steel

• Initiated ‘Neutral' with price target of Rs 780.
• Phase 1 of Kalinganagar to drive near-term volume growth.
• India profitability to be impacted by narrowing spreads.
• European profitability to remain stable over medium term.
• Don't take view on European JV deal materializing; Estimates don't incorporate European JV.
• Positives have been fairly priced in.
• Expect volume, operating income and net profit to grow at a compounded rate of 6 percent, 10 percent and 21 percent respectively over the financial years through March 2020.
• Expect return on equity and return on capital employed to expand to 17 percent and 8 percent respectively by March 2020.
• Could turn constructive on visibility of timely execution of expansion plan.

BoFAML on Hindustan Zinc

• Initiated ‘Buy' rating with price target of Rs 345.
• Elevated prices to coincide with revival in volume growth.
• Zinc - our favored exposure with strong fundamentals.
• Expect high dividend payout given significant cash needs of parent.
• Captive access to 100 percent of its requirements allows to capture the benefit of positive pricing outlook for zinc.
• Expect volumes to grow at a compounded rate of 13 percent over the financial years through March 2020.
• Premium valuations justified by strong zinc price outlook and superior profitability.

BoFAML on Hindalco

• Initiated ‘Buy' rating with a price target of Rs 340.
• Combination of globally competitive upstream business and world-class downstream business.
• Uniquely positioned on cost leadership and technical expertise.
• Upstream cost positioning improved significantly with higher margins in downstream.
• Deleveraging to continue with 9 percent FCF yield.
• Earnings volatility to reduce providing strong case for upward re-rating.
• Expect Novelis to contribute more than 54 percent of operating income over the financial years through March 2020.

CLSA's top investment themes for the financial sector in 2018. https://t.co/Ne4aB4SFa5 pic.twitter.com/zb08coLUPr

January 2, 2018

Ventura Securities on Sagar Cement

• Re-initiated ‘Buy' with price target of Rs 1,715; potential upside of 89 percent over 24 Months.
• Enthused by company's astute understanding of the cement cycle.
• Favorite way to play the cement growth story in south India.
• Strong revenue growth on the cards.
• Strategic capacity expansions to help lower freight costs.
• Significant cost savings initiatives to boost profitability.
• Expect EBITDA per ton to grow at a compounded rate of 20 percent.
• Expect volumes and operating income to grow at a compounded rate of 19 percent and 43 percent respectively over the financial years through March 2020.
• Expect net profit to rise to Rs 158 crore by March 2020 versus net loss of Rs 4 crore in the prevous financial year.

Jefferies on Punjab National Bank

• Maintained ‘Hold' with price target of Rs 190.
• Capital boost to allow faster loan book growth.
• Growth to improve from the previous quarter with uptick in corporate loans.
• Stressed assets steady; Provision coverage to improve.
• NIM to improve with IBC or other resolutions coming through.
• Expect pre-provision operating profit to grow at a compounded rate of 22 percent over the financial years through March 2020.

JPMorgan on Titan

• Maintained ‘Overweight'; raised price target to Rs 890 from Rs 750.
• Significant opportunity exists to grow on account of market share gains.
• Expect 8-10 percent share possible over the next 3-4 years vs current 4-5 percent.
• Expect revenue and earnings per share to grow at a compounded rate of 19 percent and 27 percent respectively over the financial years through March 2020.
• Store additions pace could be accelerated for Tanishq.
• Reduction in GST rates for watches/sunglasses/frames bodes well.
• Operating leverage should kick in with scale.
• Premium valuations to sustain.

Goldman Sachs on Titan

• Maintained ‘Buy' with price target of Rs 826.
• Trading update in the previous quarter was in-line with estimates.
• Previous quarter was driven by strong festival season, new collections and market share gains.
• Tanishq has increased focus on high ticket jewellery - more collections and lower making charges.
• Expect net addition of 17 new jewellery stores in the current financial year.

IDFC Securities on Indian IT Services

• Overweight as cyclical slowdown is bottoming, expectations remain modest and valuations turn attractive.
• Slowdown cyclical as not visible across all segments.
• Expect growth to improve led by improving U.S. economy.
• Play Infosys and TCS on cyclical recovery; Mindtree on micro growth.
• TCS: Initiated ‘Outperformer' with price target of Rs 2,950.
• Infosys: Initiated ‘Outperformer' with price target of Rs 1,250.
• Wipro: Initiated ‘Neutral' with price target of Rs 290.
• HCL: Initiated ‘Neutral' with price target of Rs 925.
• Tech Mahindra: Initiated ‘Outperform' with price target of Rs 610.
• Mphasis: Initiated ‘Neutral' with price target of Rs 750.
• Mindtree: Initiated ‘Outperform' with price target of Rs 650.

Choose between advisory or distribution business, says SEBI. https://t.co/G37tgDzgiZ pic.twitter.com/AxaTPu4D1m

January 2, 2018

Media Reports

• NBFC's may grab 50 percent of consumer goods credit by FY21 (BUsiness Standard).
• LIC to reduce exposure in Tata Sons (BUsiness Standard).
• Amara Raja to double revenue in 3 years and overtake Exide in terms of market share (BUsiness Standard).
• Punjab National Bank sells stake in Principal Financial Group JV (Mint).
• MovieTime cinemas to invest Rs 125 crore on expansion (Economic Times).
• FM Arun Jaitley strongly defends insolvency amendment; passed in Rajya Sabha too (Financial Express).

Coal India may fall short its production target of 600 million tonnes in FY18. https://t.co/SwmVPQdiGH pic.twitter.com/C2f1tTuPNT

January 2, 2018

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