All You Need To Know Going Into Trade On Oct. 24
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
Stocks in Asia gained, following an advance in U.S. equities, with investors taking solace from a raft of earnings that provided some optimism against a background of concern that global economic growth lacks momentum.
Shares opened higher in Sydney, Seoul and Tokyo. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.19 percent to 11,661 as of 7:10 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Here’s a quick look at all that could influence equities today.
- U.S. stocks rose as investors sifted through a batch of earnings reports.
- Oil touched $56 a barrel for the first time in almost a month after a surprise drop in U.S. crude supplies signaled strengthening demand.
- The pound weakened against all its major peers as U.K. lawmakers rejected Prime Minister Boris Johnson’s plan to fast-track his Brexit accord through parliament.
Get your daily fix of global markets here.
Maharashtra, Haryana Election Results Day Guide
Back home, the results for Maharashtra and Haryna will be pronounced today as counting begins at 8 a.m.
In Maharashtra, most expect a one-sided victory for the ruling Bharatiya Janata Party and Shiv Sena alliance banking on the popularity of Chief Minister Devendra Fadnavis and Prime Minister Narendra Modi while Haryana is poised for a four-way contest between the BJP, Congress, Indian National Lok Dal, and the Jannayak Janta Party.
Catch all the live updates on election results here:
Earnings Reaction To Watch
L&T (Q2, YoY)
- Revenue up 15 percent to Rs 35,328 crore (Estimate: Rs 35,357 crore)
- Net profit up 13 percent to Rs 2,528 crore versus Rs 2230 crore (Estimate: 2,144 crore)
- Ebitda up 13 percent to Rs 4,021 crore versus Rs 3,541 crore (Estimate: Rs 4,071crore)
- Margin at 11.4 percent versus 11.5 percent (Estimate: 11.5 percent)
HCL Tech (Q2, QoQ)
- Dollar revenue up 5.2 percent to $2,486 million (Estimate: $2,469 million)
- Revenue up 6.7 percent to Rs 17,527 crore (Estimate: Rs 17,575 crore)
- Net profit up 21.6 percent to Rs 2,711 crore versus Rs 2,230 crore (Estimate: Rs 2,546 crore)
- EBIT up 23.9 percent to Rs 3,512 crore (Estimate: Rs 3,244 crore)
- Margin at 20 percent versus 17.3 percent (Estimate: 18.5 percent)
Hero MotoCorp (Q2, YoY)
- Revenue down 16.7 percent to Rs 7,571 crore (Estimate: Rs 7,560 crore)
- Net profit down 10.3 percent to Rs 875 crore (Estimate: Rs 775 crore)
- Ebitda down 20.2 percent to Rs 1,101 crore (Estimate: Rs 1,025 crore)
- Margin at 14.5 percent versus 15.2 percent
- Exceptional expense of Rs 60 crore on VRS Scheme
Biocon (Q2, YoY)
- Revenue up 19 percent to Rs 1,572.2 crore (Estimate: Rs 1,557 crore)
- Net profit down 39.2 percent to Rs 215.7 crore (Estimate: Rs 220 crore)
- Ebitda up 18.6 percent to Rs 402.8 crore (Estimate: Rs 438 crore)
- Margin at 25.6 percent versus 25.7 percent (Estimate: 28.1 percent)
- Exceptional gain of Rs 67.5 crore versus Rs 188.8 crore
NIIT Technologies (Q2, QoQ)
- Revenue up 7.9 percent to Rs 1,038.5 crore.
- Net profit up 36.4 percent to Rs 119.5 crore.
- EBIT up 49.3 percent to Rs 146.9 crore.
- Margin at 14.1 percent versus 10.2 percent
- Deferred tax reversal of Rs 147 crore in the current quarter
Hexaware Technologies (Q3CY19, QoQ)
- Revenue up 13.2 percent to Rs 1,481.3 crore.
- Net profit up 21.3 percent to Rs 183.7 crore.
- EBIT up 6.1 percent to Rs 201.9 crore versus Rs 190.3 crore
- Margin at 13.6 percent versus 14.5 percent.
- Exceptional Loss of Rs 170 crore in base quarter.
- Exchange rate difference (gain) of Rs 198 crore in current quarter.
Shoppers Stop (Q2, YoY)
- Revenue down 2.6 percent to Rs 866.5 crore.
- Net loss at Rs 8.2 crore versus net profit at Rs 11.8 crore
- Ebitda up 2.6 times at Rs 137.7 crore.
- Margin at 15.9 percent vs 6 percent.
- Lease rent down 84 percent at Rs 16.2 crore.
JK Paper (Q2, YoY)
- Revenue up 0.7 percent to Rs 790.6 crore.
- Net profit up 14.2 percent to Rs 120.4 crore.
- Ebitda up 11.5 percent to Rs 227.1 crore.
- Margin at 28.7 percent versus 25.9 percent.
Torrent Pharma (Q2, YoY)
- Revenue up 5.9 percent to Rs 2,005 crore.
- Net profit up 36.3 percent to Rs 244 crore.
- Ebitda up 14.4 percent to Rs 541 crore.
- Margin at 27 percent versus 25 percent.
- Other income up 3.4 times to Rs 34 crore.
- India revenue up 10 percent to Rs 899 crore.
- U.S. revenue down 3 percent to Rs 380 crore.
- Gross margin at 73 percent.
Castrol (Q3CY19, YoY)
- Revenue down 8.4 percent to Rs 849.2 crore.
- Net profit up 25.3 percent to Rs 188.4 crore.
- Ebitda up 7.5 percent to Rs 244.5 crore.
- Margin at 28.8 percent versus 24.5 percent.
- Raw material costs as percent of sales at 45 percent versus 51.1 percent
PI Industries (Q2, YoY)
- Revenue up 25.5 percent to Rs 907.4 crore.
- Net profit up 30.2 percent to Rs 123.2 crore.
- Ebitda up 42.7 percent to Rs 192.5 crore.
- Margin at 21.2 percent versus 18.7 percent.
CG Consumer Electricals (Q2, YoY)
- Revenue up 3.7 percent to Rs 1,075.8 crore (Estimate: Rs 1,144.8 crore).
- Net profit up 44.7 percent to Rs 111.3 crore (Estimate: Rs 110 crore).
- Ebitda up 4.6 percent to Rs 129.5 crore (Estimate: Rs 141.8 crore).
- Margin at 12 percent versus 11.9 percent (Estimate: 12.3 percent).
Everest Industries (Q2, YoY)
- Revenue down 8.8 percent to Rs 286.2 crore
- Net loss at Rs 6.6 crore versus net profit of Rs 8.1 crore
- Ebitda loss at Rs 2.3 crore versus Ebitda profit of Rs 17.7 crore
Polycab India (Q2, YoY)
- Revenue up 23.7 percent to Rs 2,241.9 crore.
- Net profit up 2.2 times to Rs 191.8 crore.
- Ebitda up 25.5 percent to Rs 271.6 crore.
- Margin at 12.2 percent versus 11.9 percent.
Nifty Results Today
- Maruti Suzuki India
Other Earnings To Watch
- InterGlobe Aviation
- Jubilant Industries
- IDFC First Bank
- Reliance Nippon Life Asset Management
- Colgate Palmolive
- Deepak Nitrite
- Gujarat State Fertilizers & Chemicals
- PNB Housing Finance
- Cummins India
- Sterlite Technologies
- United Spirits
- Tata Steel BSL
- Parag Milk Foods
- Westlife Development
- Dalmia Bharat Sugar and Industries
- Alembic Pharmaceuticals
- Mold-Tek Packaging
- Motilal Oswal Financial Services
- Oriental Carbon & Chemicals
- Shriram Transport Finance
- Bandhan Bank
- Astral Poly Technik
- Johnson Controls - Hitachi Air Conditioning
- DFM Foods
- Gujarat Pipavav Port
- DCM Shriram
- Arvind SmartSpaces
- Kirloskar Oil Engines
- Balkrishna Paper Mills
- Jayant Agro Organics
- Reliance Naval and Engineering
- Responsive Industries
- Security and Intelligence Services
- Anup Engineering
- Vascon Engineers
Stocks To Watch
- Telecom stocks—Bharti Airtel and Vodafone Idea—will be in focus as the long pending judgement related to the AGR case is expected to pronounce verdict today at around 1 p.m. If the judgement is against the telecom operators then Airtel would have to pay dues worth Rs 21,682 crore, while Vodafone Idea would have to pay around Rs 28,309 crore.
- HCL Tech announced 1:1 bonus share issue. The board of Directors increased the authorised share capital to Rs 600 crore from Rs 300 crore.
- Hindustan Aeronautics said that workers unions in Kanpur, Barrackpore, and Korwa have called off their strike. The strike, however, will continue by the unions at Nasik, Hyderabad, Lucknow, and Koraput.
- IDBI Bank allotted shares worth Rs 4,743 crore to LIC and Rs 4,557 crore to the Government of India through Preferential Issue on Oct. 23.
- MTNL to be merged with BSNL. MTNL to act as subsidiary of BSNL till merger is completed.
- PVR has set QIP Floor Price at Rs 1,809.53 each, which is at a premium of 2 percent to the closing prices of Oct. 23.
- Jindal Stainless signed MoU with Braithwaite & Co to develop stainless bridges on the sidelines of ongoing International Railway Equipment Exhibition in New Delhi.
- Yes Bank clarified on the news of borrower failing to pay Rs 480 crore dues stating that taking possession of mortgaged property has been done in the usual and ordinary course of business.
- Sadbhav Engineering’s arm Sadbhav Infra Project has received approval from various authorities for the transfer of its 100 percent stake in 7 special purpose vehicles to Indinfravit Trust. The authority approval for balance 2 projects is under process and at an advanced stage.
- Mishra Dhatu Nigam: LIC reduced stake in the company from 6.72 percent to 4.66 percent from June 15-Oct. 18.
- Dewan Housing Finance has taken cognisance of key observations made by KPMG in its draft report of special audit of the troubled shadow lender’s books of accounts.
- GMR Infra clarified the news of CCI probe on Hyderabad International Airport business’ stating that it is not material in nature and there is no impact on the company.
- Prism Johnson: Board approved demerger or retail business in its 4 arms and amalgamation of its two arms Milano and Silica with self.
- Biocon: Dr. Arun Suresh Chandavarkar’s tenure as CEO and Joint MD to end on Nov. 20. The current CFO Siddharth Mittal will be the new CEO and Joint MD with effect from Jan. 1.
- Reliance Capital has defaulted on NCDs interest/principal which were due on Oct. 22.
Macquarie on Havells India
- Maintained ‘Underperform’ with a price target of Rs 586.
- Core business a bigger source of concern; two year low revenue growth and margins.
- Can sustain premium valuations only if core business grows double digit and Llyods creates significant value over medium term.
On Bajaj Auto
- Maintained ‘Sell’; hiked price target to Rs 2,350 from Rs 2,100.
- September quarter was buoyed by gross margin expansion.
- Margin expansion due to product mix and benign commodity costs.
- Volume recovery is still uncertain.
- Maintained ‘Sell’; hiked price target to Rs 2,800 from Rs 2,525.
- Decent performance in tough times.
- Some improvement in two wheelers demand, but more regulatory pressure ahead.
- Export growth rates moderating on high base.
On HCL Tech
- Maintained ‘Outperform’ with a price target of Rs 1,340.
- Revenue growth inline led by mode three services.
- EBIT margin improvement ahead of street estimates.
- Raising of revenue growth guidance for 2019-20 reflects strong execution.
- Maintained ‘Buy’; hiked price target to Rs 1,350 from Rs 1,300.
- In-line revenues; margin surprise helped by growth leverage.
- Raised organic revenue growth outlook yet again.
- Remains the lone buy in IT space.
On Hero MotoCorp
- Maintained ‘Underweight’; hiked price target to Rs 2,450 from Rs 2,400.
- Margin beat in a weak volume quarter.
- Demand: early green shoots but recovery likely to take time.
- Growth outlook clouded by BS-VI transition.
- Maintained ‘Sell’; hiked price target to Rs 2,500 from Rs 2,350.
- Weak quarter but margin beat.
- Seeing some demand improvement, but more regulatory pressures ahead.
- Margins unlikely to improve further with BS VI costs around the corner.
- Maintained ‘Buy’; cut price target to Rs 260 from Rs 314.
- Weak quarter on price decline; India profitability at nine-year low.
- Profitability to recover in the second half; steel spread to improve in the second half.
- Volume and capex guidance cut owing to weak demand.
- Maintained ‘Sell’ with a price target of Rs 170.
- Lower steel prices take big toll on margins.
- Weakening global growth and falling cost curve weigh on steel prices.
- India steel demand and prices also under pressure.
- Maintained ‘Outperform’ with a price target of Rs 1,936.
- Results in-line on core metrics.
- See several levers for a positive margin surprise.
- Remains preferred stock to hide amid current market volatility.
- Maintained ‘Sell’ with a price target of Rs 1,401.
- Broadly in-line; domestic environment needs to improve.
- Core E&C revenues marginally lower; margins improve.
- Domestic infra ordering needs to pick-up.
- GTPL Hathway: Ashish Kacholia sold 21.64 lakh shares or 1.92 percent equity at Rs 72 each.
- Artemis Global Life Sciences ex-date for amalgamation
- Bharat Wire Ropes, Simplex Infrastructures, Reliance Power price band revised to 10 percent
- Reliance Infrastructure, Camlin Fine Sciences, Ramky Infrastructure price band revised to 5 percent
- Ludlow Jute & Specialities price band revised to 2 percent
- Bharat Wire Ropes, Bliss GVS Pharma, Edelweiss Financial Services, Reliance Power, Zee Learn, Shemaroo Entertainment to move into short term ASM Framework
- FCS Software Solutions, Wendt, Kwality to move out of short term ASM Framework
Who’s Meeting Whom
- Mahindra Lifespace Developers to meet Unifi Capital on Oct. 24
- Affle to meet Arohi Asset Management on Oct. 24
Money Market Update
- The rupee strengthened marginally to Rs 70.91/$ on Wednesday versus 70.94/$ on Tuesday.
- Nifty October futures closed at 11,624.7, a premium of 20.6 points versus 36 points
- Nifty October futures down 2 percent, sheds 3.3 lakh shares in open interest
- Nifty Bank October futures closed at 29,494.5, a premium of 34.9 points versus 81 points
- Nifty Bank October futures open interest down 4 percent, sheds 55,000 shares in open interest
- Nifty PCR at 1.18 versus 1.20 (across all series)
Nifty Weekly Expiry: Oct 24
- Max open interest on call side at 11,800 (26 lakh shares)
- Max open interest on put side at 11,600 (18.4 lakh shares)
- Open interest addition has seen at 11,800C (8 lakh shares), 11,550P (3.9 lakh shares), 11,600P (3.4 lakh shares)
Nifty Monthly Expiry: Oct 31
- Max open interest on call side at 12,000 (26.2 lakh shares)
- Max open interest on put side at 11,000 (27.7 lakh shares)