Stocks To Watch Today: Cipla, IndusInd Bank, Kotak Mahindra Bank, Tata Steel, TCS, Vedanta

Here are the stocks to watch in today's trade.

Mallica Mishra

05 Jul 2022, 08:47 AM IST

<div class="paragraphs"><p>(Source: <a href="https://unsplash.com/@austindistel?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Austin Distel</a>/ <a href="https://unsplash.com/s/photos/trader?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Unsplash</a>)</p></div>

Asian stocks opened with gains Tuesday as investors evaluate the possible scrapping of some US tariffs on Chinese consumer goods.

The Nikkei, Topix, Kospi rose while S&P ASX 200 advanced. Japan and China are set to release PMI reading as well. U.S. markets were closed overnight for a holiday.

At 8:00 am, the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.26% to 15,864.50.

Crude climbed toward $111 a barrel. Bitcoin retook the $20,000 level.

Here are the stocks to watch today:

Tata Consultancy Services: A U.S. court reduced the punitive damages to $ 140 million in a trade secrets case with American software firm Epic Systems Corp. The company said that it has been advised that the order is appealable in the higher court.
Marico: The company increased its stake in Apcos Naturals by 4.14% to 56.52% for undisclosed consideration.
HDFC/HDFC Bank: HDFC Bank says it has received “no objection” for merger with HDFC. The scheme of arrangement has also received approval from the stock exchanges but is still subject to approvals from Competition Commission of India, NCLT, other authorities and shareholders.
Cipla: The United States Food and Drug Administration conducted a pre-approval inspection at the company's Indore plant from June 27 to July 1. It has received two observations on FDA Form 483 with respect to ANDA filed for the product to be manufactured at the said plant. There is no data integrity observation. The company said that it will submit its response to the U.S. FDA within the stipulated time.
Vedanta: The company reported 3% yoy increase in production of Aluminum in Q1 to 5.65 lakh tons. It also increased mining of domestic Zinc’s by 14% yoy to 2.52 lakh tons in the first quarter. Oil and Gas gross production reduced 10% yoy to 1.35 crore barrels of oil equivalent.
Kotak Mahindra Bank: The Reserve Bank of India imposed a penalty of Rs 1.05 crore due to inability of bank to credit amount involved in unauthorised electronic transactions within 10 working days. The Bank did not maintain/apply required margin on advances to stockbrokers. It failed to credit required amount to depositor education fund.
IndusInd Bank: The Reserve Bank of India imposed a penalty of Rs 1 crore for non-compliance with customer due diligence procedures in accounts opened via E-KYC.
Kirloskar Ferrous: The company has upgraded Mini Blast Furnace II at Koppal plant, Karnataka leading to increase in production capacity of pig iron 1.8 lakh metric ton p.a. to 2.176 lakh metric ton p.a. Consequently, total manufacturing capacity of pig iron at company level has increased to 6.09 lakh metric ton p.a.
Tata Steel/Tata Steel Long Products/NMDC/MMTC: Tata Steel, through its subsidiary Tata Steel Long Products has completed the acquisition of Neelachal Ispat Nigam.
Tata Power: Company to invest Rs 3,000 crore to set up Tamil Nadu solar plant.
Tech Mahindra: Company opens new campus in Coimbatore, aims to hire 1,000 in FY23 to grow India operations.......
LIC: The company approved investment of Rs 127.07 crore in LIC (Nepal) via rights issue.
Emami: The company has increased its stake in its subsidiary company Brillaire Science from 72.02% to 77.53%.
PTC India Financial Services: The company received a satisfactory report by the Agency for Specialized Monitoring appointed by the lenders.
Marksans Pharma: The company will consider buyback of shares on July 8.
JTL Infra: The company’s sales volume rose 3.9% yoy to 3,3302 MT in first quarter.

Pledge Share Details:

Aurobindo Pharma: Promoter K Nityananda Reddy created a pledge of 17 lakh shares on June 30.
Chambal Fertilizers & Chemicals: Promoter Zuari Industries revoked a pledge of 2.8 lakh shares on June 28 and 5 lakh shares between June 29 and June 30.

Insider Trades:

PSP Projects: Promoter Group PPP Family Trust bought 25,000 shares on June 30.

Who’s Meeting Whom:

KIMS: To meet investors from July 5 to July 7.
Angel One: To meet investors and analysts on July 15.

Analyst Actions

Morgan Stanley on M&M Financial

Overweight, with a target price of Rs 225.
MoM growth in disbursements was strong and better than estimates.
Collection efficiency in June was higher than in May and April.
Collection efficiency was highest for Q1 (seasonal) in recent history.
Stage 3 loans were only marginally higher QoQ, per MMFS (historically close to 30% QoQ).

Motilal Oswal on LIC

Initiate with 'buy', target price at Rs 830.
Business drivers in place; execution remains the key.
Estimate LIC to deliver 10% CAGR in new business profit during FY22-24E while value of new business margin is likely to improve to 13.6% on improving product mix & higher profit retention.
Estimate LIC’s operating return on embedded value to remain modest at 9.7% on lower margin profile than private peers.
Valuation at 0.7x FY24E EV appears reasonable.
High sensitivity to equity market volatility remains an overhang.

Trading Tweaks:

Ex-Date Annual General Meeting/Dividend: MindTree, Mphasis, Wheels India
Record Date Dividend: Petronet LNG, Yasho Industries
Record Date Bonus: EKI Energy Services
Move Into Short-Term ASM Framework: Lloyds Steels Industries

Research Reports: