Stocks To Watch: Aurionpro Solutions, Bank Of Maharashtra, Coal India, KM Sugar Mills

• Coal India examining the feasibility of producing methanol.
• Bank of Maharashtra to raise Rs 650 crore via equity.
  
• KM Sugar Mills sold 7.30 lakh shares (73 percent) in subsidiary KM Energy.

Indian equity benchmarks were little changed for the second day in a row as gains in ICICI Bank, Larsen & Toubro Ltd. and Reliance Industries Ltd. were offset by losses in HDFC Bank, Infosys Ltd. and Maruti Suzuki Ltd.

The S&P BSE Sensex was little changed at 33,793 and the NSE Nifty 50 Index was little changed at 10,443. Mid- and small-cap shares outperformed large cap peers as the S&P BSE MidCap Index rose 0.5 percent and the S&P BSE SmallCap Index advanced 0.98 percent.

The Singapore traded SGX Nifty, an early indicator of Nifty 50 Index's performance in India, rose 0.2 percent to 10,500 as of 7:30 a.m.

All you need to know as you gear up for Thursday's trade.https://t.co/gulWd1GvBc pic.twitter.com/8A9KjEIDts

January 4, 2018

Here Are The Stocks To Watch Out For In Thursday's Trade

• HDFC: The mortgage lender said its third quarter profit on the sale of investments stood at Rs 5,270 crore compared to Rs 3 crore a year ago. The figure includes Rs 5,250 crore from the IPO of HDFC Life. Its dividend income stood at Rs 151 crore from Rs 179 crore year-on-year. HDFC said it will also make additional special provision of Rs 1,575 crore.
• Coal India examining feasibility of producing methanol.
• SJVN to consider share buyback on Jan. 8.
• Bank of Maharashtra to raise Rs 650 crore via equity.
• NBCC secures total business of Rs 315 crore in Dec.
• Kridhan Infra's Rs 128 crore institutional share sale closes. Investors include Singapore government, DSP Blackrock and HDFC AMC.
• Rushil Décor to import plywood as well as low thickness MDF boards.
• Aurionpro Solutions subsidiary Cyberinc to sell its Identity and Access Management business to KPMG in an all cash deal worth Rs 217.6 crore.
• KM Sugar Mills sold 7.30 lakh shares (73 percent) in subsidiary KM Energy.
• HPCL: ONGC may pay Rs 45,000 crore (45 percent premium to market cap) for company's stake (Financial Express)
• Greaves Cotton: To make new BS-VI engines for Piaggio (PTI)

Real estate stocks rule the roost in 2017.https://t.co/rtOmfUVwbL pic.twitter.com/QcxkL00A6Y

January 4, 2018

Bulk Deals

• WPIL: Promoter V N Enterprises bought 1.08 lakh shares or 1.1 percent stake at Rs 679.18 each.
• Viceroy Hotels: ICPA Health Products bought 2.50 lakh shares or 0.6 percent stake at Rs 21.27 each.

Aro Granite Industries

• Dilipkumar Lakhi bought 1.5 lakh shares or 1 percent stake at Rs 80.93 each.
• Surefin Financial Cons. Pvt Ltd sold 96,000 shares or 0.6 percent stake at Rs 81.01 each.

Navkar Corp

• Ashish Kacholia bought 10 lakh shares or 0.7 percent stake at Rs 187 each.
• Everest Finance and Investment Co. bought 10 lakh shares or 0.7 percent stake at Rs 187.06 each.

Orchid Pharma

• Fortune Intercontinental sold 11.28 lakh shares or 1.3 percent stake at Rs 20.2 each (average).
• Serum Institute of India sold 13.12 lakh shares or 1.5 percent stake at Rs 20.1 each.

India, Thailand risk FX manipulator watchlist as reserves swell.https://t.co/RyptlphxeE pic.twitter.com/hZVepqqQht

January 4, 2018

F&O setup

• Nifty January futures trading at 10,469, premium of 26 points from 30 points earlier.
• January series: Nifty open interest up 3 percent; Bank Nifty open interest up 14 percent.
• India VIX ended at 13.6, down 0.4 percent.
• Max open interest for January series at 11,000 Call (open interest at 43.3 lakh, down 2 percent).
• Max open interest for January series at 10,300 Put (open interest at 48.3 lakh, down 3 percent).

F&O Ban

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

Only intraday positions can be taken in stocks which are in F&O ban. There will be a penalty in case of a rollover of these intraday positions.

Brokerage Radar

Equirus on FIEM Industries

• Initiated ‘Long' rating with price target of Rs 1,336.
• Second largest player in Indian automotive lighting market.
• Key beneficiary of shift to LED usage in two wheelers.
• Effective AHO regulations to fuel LED usage in two wheelers.
• LED lamps to drive strong value growth; Lower competition to aid RoIC.
• Strong track record of adding new products.
• Margin and return profile to rebound after a blip in the previous financial year.
• Expect RoIC to rebound to 13 percent by March 2020.
• Expect revenue, operating income and net profit to grow at a compounded rate of 18 percent, 21 percent and 33 percent over the financial years through March 2020.

Equirus on Lumax Industries

• Initiated ‘Long' rating with price target of Rs 2,486.
• Market leader in automotive lighting market in India with 35 percent market share.
• Set to be a key beneficiary of shift to LEDs in two and four wheelers.
• Focus on increasing market share in commercial vehicles, tractors and two wheelers.
• Expect gain in share in Hero Motor's light sourcing.
• Large exposure to Maruti provides good growth visibility.
• Maruti recently introduced LED in mid to premium segment.
• Return matrix to improve led by growth, margin expansion.
• Expect revenue, operating income and net profit to grow at a compounded rate of 15 percent, 24 percent and 27 percent over thr financial years through March 2020.

IIFL on IRB InvIT

• Initiated ‘Buy' with fair value of Rs 97.
• Natural hedge against inflation.
• Established and stable concession agreements.
• Significant government support for highway development.
• Strong leverage to underlying traffic growth.
• Healthy balance sheet provides room to expand portfolio.
• Large pipeline of assets from IRB Infrastructure.
• Fair value assuming 8 percent toll revenue growth.

CLSA on Consumer Sector

• Expect 2018 to witness a pick-up in demand.
• Triggers: recovery in consumer sentiment, supportive base, GST-rate cuts and return to normalcy for channels.
• Rise in oil prices and related derivatives is a worry.
• Expect margins to sustain led by price hikes, premiumisation, cost savings and volume recovery.
• More positive on rural India given rising government spending and 2019 elections.
• ITC: Maintained ‘Buy'; raised price target to Rs 330 from Rs 310.
• Asian Paints: Upgraded to ‘Buy' from ‘Underperform'; raised price target to Rs 1,365 from Rs 1,250.
• Emami: Maintained ‘Buy'; raised price target to Rs 1,585 from Rs 1,450.
• GSK: Maintained ‘Buy'; raised price target to Rs 7,850 from Rs 7,500.
• Varun Beverages: Maintained ‘Buy'; raised price target to Rs 885 from Rs 665.
• Jubilant Foodworks: Maintained ‘Buy'; raised price target to Rs 2,300 from Rs 2,200.
• Westlife: Maintained ‘Buy'; raised price target to Rs 450 from Rs 320.
• HUL: Maintained ‘Outperform'; raised price target to Rs 1,515 from Rs 1,460.
• Titan: Downgraded to ‘Outperform' from ‘Buy'; raised price target to Rs 970 from Rs 900.
• Nestle: Maintained ‘Outperform'; raised price target to Rs 8,950 from Rs 8,500.
• Godrej Consumer: Upgrade to ‘Outperform' from ‘Underperform'; raised price target to Rs 1,150 from Rs 1,025.
• Dabur: Maintained ‘Outperform'; raised price target to Rs 400 from Rs 365.
• United Spirits: Maintained ‘Outperform'; raised price target to Rs 4,000 from Rs 3,500.
• Kansai: Downgraded to ‘Outperform' from ‘Buy'; raised price target to Rs 640 from Rs 600.
• Marico: Upgraded to ‘Underperform' from ‘Sell'; raised price target to Rs 330 from Rs 300.
• Colgate: Upgraded to ‘Underperform' from ‘Sell'; raised price target to Rs 1,120 from Rs 1,000.

Credit Suisse on India Steel Sector

• Odisha shutdown takes out 10 percent of India's output.
• With output cut, India to turn iron ore importer again.
• Iron ore prices to rise if India turns net-importer.
• Steelmaking cost up $55-60/tonne vs $60/tonne rise in steel prices.
• Cost-push steel price hikes good for Tata Steel.

IIFL on Axis Bank

• Upgraded to ‘Buy' from ‘Add'; raised price target to Rs 650 from Rs 520.
• Increase in share capital to boost capital position by over 200 basis points.
• Share capital boost to enhance ability to absorb large write-downs.
• Expect earnings growth to rebound strongly by March 2020.
• Expect sharp decline in loan loss provisions.
• Profitability could normalise by March 2019 under Indian Accounting Standards.
• Positives: crystallization of loan losses, reduced uncertainty on capital adequacy and resumption of loan growth.

This drugmaker's stock can gain nearly 50% in 2018. https://t.co/sBQDBWGCR8 pic.twitter.com/kpnNdy1lOm

January 3, 2018

Media Reports

• TRAI invites inputs on new telecom policy (PTI).
• India's GDP growth to slip below 7 percent this fiscal, say experts (PTI).
• Electoral bonds printing to have currency notes-like secrecy (PTI).
• India cancels $500 million missile deal with Israel's Rafael (PTI).
• SBI earns Rs 1,772 crore in minimum balance penalty during April-November (PTI).

Business suffered as Mumbai came to a halt. #BhimaKoregaonViolencehttps://t.co/Tv1VACC4J0 pic.twitter.com/DNgLCJ5qNB

January 4, 2018

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