Home Renewable Energy All You Need To Know Going Into Trade On November 9
All You Need To Know Going Into Trade On November 9

All You Need To Know Going Into Trade On November 9

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Stocks in Asia extended a global rally, underpinned by a solid earnings season and modest gains in U.S. shares overnight, with Japan’s equity benchmarks cementing advances to two-decade highs.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,365 as of 7:00 a.m.

Global Cues
U.S. stocks rose as a surge in technology shares more than made up for weakness in financial firms sparked by concerns that the Republican tax bill faces an uphill battle in the Congress.

Asian Cues

  • Japan’s Topix index rose 0.7 percent, while the Nikkei 225 added 1.1 percent. They are trading at the highest since 1991 and 1992, respectively.
  • South Korea’s Kospi index was little changed.
  • Australia’s S&P/ASX 200 Index nudged higher.
  • Contracts on the S&P 500 were up less than 0.1 percent.
  • The MSCI Asia Pacific Index climbed 0.2 percent, extending a climb to the highest in 10 years
  • The New Zealand dollar rallied after the central bank flagged it may raise interest rates earlier than expected.
  • China Oct. consumer prices rise 1.9 percent YoY (estimate 1.8 percent). China producer prices rise 6.9 percent YoY; estimate 6.6 percent.

Here are some key upcoming events this week:

  • S. consumer sentiment probably cooled in early November from a more than 13-year high; the University of Michigan’s report is out on Friday.
  • OPEC releases its World Oil Outlook.
  • Malaysia and the Philippines have rate decisions on Thursday.

Commodity Cues

  • West Texas Intermediate crude fell 0.7 percent to $56.81 a barrel.
  • Gold rose 0.5 percent to $1,281.29 an ounce.
  • Copper gained 0.4 percent to $3.10 a pound.
  • ICE sugar closed at 14.84 cents a pound, its highest level in over seven weeks; up 0.82 percent.

Nifty Results Today

  • Tata Motors
  • Hindustan Petroleum Corporation
  • Aurobindo Pharma

Other Earnings Today

  • Allcargo Logistics
  • Amara Raja Batteries
  • Aptech
  • Bajaj Electricals
  • Capacit’e Infraprojects
  • CG Power
  • Dr Lal Path Labs
  • Granules India
  • India Cements
  • Indraprastha Gas
  • JSPL
  • NHPC
  • Page Industries
  • PTC India
  • SRF
  • Sail
  • V-Mart Retail

Petronet LNG Q2 (QoQ)

  • Revenue up 20.7 percent at Rs 7,770 crore.
  • Net profit up 34.5 percent at Rs 589 crore.
  • EBITDA up 20.7 percent at Rs 898.5 crore.
  • Margin flat at 11.6 percent.

Bombay Dyeing Q2 (YoY)

  • Revenue up 42.68 percent at Rs 692 crore.
  • Net profit at Rs 53 crore versus net loss of Rs 37 crore.
  • EBITDA up 212 percent at Rs 153.2 crore.
  • Margin at 22 percent from 10.12 percent.

Muthoot Finance Q2 (YoY)

  • Revenue up 20 percent at Rs 1,665 crore.
  • Net interest income up 49 percent at Rs 1,176 crore.
  • Net profit up 53 percent at Rs 454 crore.

Take Solution Q2 (QoQ)

  • Revenue up 13 percent at Rs 371 crore.
  • Net profit up 17.5 percent at Rs 37 crore.
  • EBIT up 8.5 percent at Rs 64 crore.
  • Margin at 17.25 percent from 18 percent.

JK Lakshmi Q2 (YoY)

  • Revenue up 18.5 percent at Rs 777 crore.
  • Net profit down 48 percent at Rs 13 crore.
  • EBITDA up 3.2 percent at Rs 96 crore.
  • Margin at 12.35 percent from 14.2 percent.

Ingersoll Rand Q2 (YoY)

  • Revenue down 1 percent at Rs 161 crore.
  • Net profit up 10 percent at Rs 22 crore.
  • EBITDA up 36 percent at Rs 17 crore.
  • Margin at 10.55 percent from 7.7 percent.

Gujarat Alkalies Q2 (YoY)

  • Revenue up 20 percent at Rs 634 crore.
  • Net profit up 22 percent at Rs 106 crore.
  • EBITDA up 33 percent at Rs 162 crore.
  • Margin at 25.55 percent from 23.1 percent.

ITD Cementation Q2 (YoY)

  • Revenue up 5.3 percent at Rs 473 crore.
  • Net profit up 137.5 percent at Rs 19 crore.
  • EBITDA up 31.25 percent at Rs 63 crore.
  • Margin at 13.3 percent from 10.7 percent.

IEX Q2 (YoY)

  • Revenue up 9.8 percent at Rs 56 crore.
  • Net profit up 10 percent at Rs 33 crore.
  • EBITDA up 27 percent at Rs 47 crore.
  • Margin at 83.9 percent from 72.5 percent.

Future Consumer Q2 (YoY)

  • Revenue up 33 percent at Rs 750.5 crore.
  • Net loss of Rs 8.8 crore from net loss of Rs 16 crore.
  • EBITDA up 212.5 percent at Rs 12.5 crore.
  • Margin at 1.7 percent from 0.7 percent.

Voltas Q2 (YoY)

  • Revenue up 7.2 percent at Rs 1,037 crore.
  • Net profit up 17.4 percent at Rs 94.6 crore.
  • EBITDA up 25.5 percent at Rs 86 crore from Rs 68.5 crore.
  • Margin at 8.3 percent from 7.1 percent.

Pidilite Q2 (YoY)

  • Revenue up 7.9 percent at Rs 1,530 crore.
  • Net profit up 9.1 percent at Rs 252 crore.
  • EBITDA up 17.3 percent at Rs 377 crore.
  • Margin at 24.6 percent from 22.7 percent.

Thermax Q2 (YoY)

  • Revenue down 3.5 percent at Rs 1,033 crore.
  • Net profit down 28 percent at Rs 57 crore.
  • EBITDA up 3 percent at Rs 95 crore.
  • Margin at 9.2 percent from 8.6 percent.

Navneet Q2 (YoY)

  • Revenue up 6.0 percent at Rs 183 crore.
  • Net profit down 11 percent at Rs 16.6 crore.
  • EBITDA up 1.8 percent at Rs 28.5 crore.
  • Margin at 15.6 percent from 16.2 percent.

Vardhman Textiles Q2 (YoY)

  • Revenue up 1.9 percent at Rs 1,523 crore.
  • Net profit down 71 percent at Rs 133 crore.
  • EBITDA down 36 percent at Rs 198 crore.
  • Margin at 13 percent vs 20.8 percent.

GSFC Q2 (YoY)

  • Revenue down 3 percent at Rs 1,540 crore.
  • Net profit down 36.8 percent at Rs 79 crore.
  • EBITDA down 50.5 percent at Rs 97 crore.
  • Margin at 6.3 percent from 12.3 percent.

Balkrishna Inds Q2 (YoY)

  • Revenue up 18 percent at Rs 1,114.5 crore.
  • Net profit down 16.5 percent at Rs 203 crore.
  • EBITDA down 0.8 percent at Rs 305.5 crore.
  • Margin at 27.4 percent from 32.6 percent.

Cupid Q2 (YoY)

  • Revenue up 2 percent at Rs 22 crore.
  • Net profit up 11 percent at Rs 6 crore.
  • EBITDA up 12.5 percent at Rs 9 crore.
  • Margin at 40.9 percent from 37.2 percent.

Welspun India (Q2 YoY)

  • Revenue down 10 percent at Rs 1,607 crore versus Rs 1,790 crore.
  • Net profit of Rs 97 crore versus net loss of Rs 147.5 crore.
  • EBITDA down 34 percent at Rs 283.5 crore versus Rs 431 crore.
  • Margin at 17.6 percent versus 24.1 percent.
  • Exceptional loss of Rs 489 crore last year.

Stocks To Watch

  • Bharti Airtel introduced new postpaid and prepaid plans.
  • HCL Info gets tax demand notice for Rs 312 crore; company will appeal to authority.
  • Jet Airways offers up to 30 percent discount on international flight fares till Nov.14 (Cogencis).
  • Pricol entered into a joint venture with Hong Kong based-Zorg industries for the manufacture and supply of parking assistance systems for the Indian mark.

Circuit Revisions/Stock Splits

  • Circuit filter revised to 5 percent: RattanIndia Infra, PTL Enterprises, Link Pharma.
  • Indraprastha Gas:Ex-date for stock split from Rs 10 to Rs 2 per share. F&O lot size revised to 2,750.

Bulk Deals

Bharti Airtel

  • Three Pillars PTE sold its entire stake of 19.98 lakh shares or 5 percent equity stake at Rs 481.3 each.
  • Merrill Lynch Markets Singapore PTE bought 2.29 crore shares or 0.6 percent equity stake at Rs 482.97 each.
  • UBS Principal Capital Asia bought 2.47 crore shares or 0.6 percent equity stake at Rs 480 each.

IPO

  • Bidding for HDFC Standard Life Insurance IPO continues on day 3. The issue was subscribed 1.2 times till end of day 2.

Who’s Meeting Whom?

  • Supreme Industries to meet over 25 fund houses including Nalanda, HDFC MF, GS on Nov. 9.
  • Cummins India to meet Goldman Sachs on Nov. 9 and Fidelity on Nov. 17.
  • PNB Housing to meet ICICI Securities on Nov. 9.
  • Motilal Oswal to meet UBS Global Asset Management on November 9 and Morgan Stanley Investment Managers on Nov.10.
  • Kansai Nerolac to meet investors on Nov. 14-15 in Gurgoan and Nov. 29-30 in Tokyo.

Insider Trades

  • Sintex Industries promoter released 65 lakh shares from pledge.
  • Bharat Gears promoter bought 3.25 lakh shares on Nov. 3 via preferential allotment.
  • Bhagyanagar India promoter sold 81,700 shares in open market on Nov. 6-7
  • Punj Lloyd promoter sold nearly 12 lakh shares from Nov. 3-6
  • Delta corp promoter sold over 36 lakh shares in open market on Nov. 7

Rupee

Rupee closed at 64.95/$ on Wednesday from 65.03/$ on Tuesday.

F&O Cues

  • Nifty November futures closed at 10,355, premium of 52 points versus 59.9 points.
  • November contracts: Nifty open interest unchanged; Bank Nifty up 1 percent
  • India VIX closed 2.8 percent higher at 13.6.
  • Max open interest for November series at 10,500 Call (open interest at 46.8 lakhs, up 12 percent.)
  • Max open interest for November series at 10,000 Put (open interest at 55 lakh, down 3 percent.)

F&O Ban

  • In ban:DHFL, HDIL, Indiabulls Real Estate, India Cement, Infibeam, Jet Airways, JSW Energy, Reliance Communications
  • New in ban:Jet Airways
  • Out of ban:Wockhardt

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.

Put-Call Ratio

  • Nifty PCR at 1.36 from 1.43
  • Nifty Bank PCR at 0.91 from 1.01

Brokerage Radar

UBS on United Breweries

  • Maintained ‘Sell’; hiked price target to Rs 825 from Rs 760.
  • Price increases provided uplift in margin during the previous quarter.
  • Market share gain may not be sustainable.
  • Price hikes to impact demand elasticity in the medium to long-term.
  • Current valuation is rich given regulatory uncertainty and competitive threats.

Kotak Securities on United Breweries

  • Maintained ‘Sell’ with price target of Rs 1,138.
  • Previous quarter was a blockbuster, driven by strong volume surprise
  • Strong margins led by volume growth and tight cost controls
  • September quarter may have benefitted from the Goods and Services Tax.
  • Strong beat likely to drive upgrades to estimates.

CLSA on Shree Cement

  • Maintained ‘Underperform’; hiked price target to Rs 19,500 from Rs 18,750.
  • Previous quarter results were ahead of estimates led by lower than expected decline in realisations.
  • Sequential contraction in unit Ebitda but less than forecast.
  • Going forward, price hike to offset the impact of higher petcoke prices.

Nomura on Shree Cement

  • Maintained ‘Buy’ with price target of Rs 23,500.
  • September quarter results were in line; Shree Cement remains top pick.
  • Cement sector on point of a multi-year cyclical upturn.
  • Volume growth to get better in the second half, led by government initiatives.
  • Expect 17-23 percent volume growth, improved utilisation and pricing over the financial years till March 2020.
  • Expect earnings to grow at a compound annual growth rate of 33 percent over the financial years till March 2020.

UBS on Bharat Forge

  • Maintain ‘Neutral’ with price target of Rs 620.
  • previous quarter displayed a solid sequential growth across segments; Expect further improvement sequentially.
  • Potential defense order wins under ‘Make in India’ program to drive re-rating.
  • Expensive valuations but U.S. trucks and oil and gas likely to improve further in the second half of the current financial year.

Deutsche Bank on Bharat Forge

  • Maintained ‘Buy’; hiked price target to Rs 775 from Rs 725.
  • strong revenue traction continued during the previous quarter
  • Expect revenue and earnings per share to grow at a compound annual growth rate of 15 percent and 35 percent respectively over the financial years till March 2020.
  • New facility should to enhance company’s revenue profile over the next five years.
  • Expect recovery in the business drivers in most of the end-markets.

Antique on Bharat Forge

  • Maintained ‘Buy’; hiked price target to Rs 904 from Rs 626; Potential Upside of 24 percent.
  • Previous quarter was above estimates led by strong volume growth and improving product mix.
  • Strong volume growth seen across geographies and segments.
  • Outlook for Class 8 trucks and industrials remain positive.
  • Expect revenue to grow at a compound annual growth rate of 12 percent over the financial years till March 2020.
  • Consolidated margin for the next two financial years to be at 23.4 percent and 25.4 percent respectively.

Edelweiss Investment on Lumax Industries

  • Initiated ‘Buy’ with price target of Rs 2,560; Potential Upside of 38 percent.
  • Company focused on cost reduction and process improvement to improve profitability.
  • Scaling up the value chain to LED is a step forward in right direction.
  • Rising mix of LEDs to benefit topline growth and profitability.
  • Expect LED share in revenue to increase to 22 percent 40 percent during the current financial year and financial year ending March 2020.
  • Expect revenue and net profit to grow at a compound annual growth rate of 16 percent and 35 percent respectively over the financial years till March 2020.
  • Expect Ebitda margins and net profit margins to improve by 200 basis points and 250 basis points by March 2020.
  • Positives: Healthy auto demand; increasing premiumisation in passenger vehicles, rising mix of LED, process improvement and cost efficiency.

Nomura on CESC

  • Maintained ‘Neutral’ with a price target of Rs 948.
  • Previous quarter’s standalone earnings were in line, healthy show by BPO, retail metrics weak, but EBITDA positive, short-term PPAs help Chandrapur.
  • Progress on business restructuring remains the near-term focus.
  • Turnaround of Chandrapur and Spencer’s could lead to earnings uptick which holds key in medium term.

Power Grid and NTPC are top picks in the sector.

  • Deutsche Bank on GSK Consumer
  • Maintained ‘Buy’ with a price target of Rs 6,500.
  • Potential reduction in GST rates for malted food drink is a short-term catalyst.
  • Reduction in GST could drive penetration-led growth .
  • Would give company a breather in correcting the price-value equation.

Nomura on Ashok Leyland

  • Maintained ‘Buy’ with a price target of Rs 140.
  • Previous quarter results were below estimates.
  • Await clarity on the share of defence, spare parts revenues during the quarter.
  • Remain positive on medium and heavy commercial vehicle industry growth and factor in the next two financial years by 15 percent and 20 percent respectively.
  • Rising higher tonnage share should be a key positive.

CLSA on IRB Infra

  • Maintained ‘Buy’ with a price target of Rs 320.
  • Core traffic which was hit by GST returned to normal and is tracking well.
  • Construction revenue up 3 percent year-on-year; The best is likely in last quarter of the current financial year.
  • Expect pick-up in BOT revenue and EPC order wins improve revenue visibility until the next financial year.
  • Triggers: new concession wins under ‘Bharatmala’, financial closure of toll way, credit rating upgrade and Ahmedabad claim acceptance.

Credit Suisse on Arvind

  • Maintained ‘Outperform’; hiked price target to Rs 540 from Rs 450
  • Previous quarter was a muted quarter for textile, brands did normal.
  • Triggers: continuing high revenue growth, expanding margins, and re-rating.
  • Process for listing new companies may take about eight months.
  • Fashion business valuation suggest slight premium.
  • Textile business valued reasonable may have low downside risk.
Source: bloombergquint

 

Anand Gupta Editor - EQ Int'l Media Network

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