Saturday, 20 October 2018

25 stocks fell 10-30% in just 4 trading sessions

In the S&P BSE Mid-cap index, three stocks slipped 10-30% which include names like L&T Finance Holdings, Piramal Enterprises, and Indiabulls Housing Finance.

The S&P BSE Sensex lost 1.2 percent while Nifty50 saw a decline of 1.6 percent for the week ended October 12 but the real carnage was seen in small & midcaps which plunged 10-30 percent in the same period.

As many as 25 stocks in the S&P BSE500 index plunged 10-30 percent for the week ended 19 October which include names like Indiabulls Housing Finance, Dewan Housing Finance, Indiabulls Real Estate, PNB Housing Finance, 8K Miles, Kwality, Dish TV, Avenue Supermarts, Yes Bank, Bandhan Bank etc. among others.
Weak global cues, trade war concerns, rise in crude oil prices, emergence of liquidity fears in NBFCs as well as NBFCs, along with weak macroeconomic data such as rise in inflation and fall in IIP, selling pressure from foreign investors, mixed results from India Inc., and hawkish commentary of US Federal Reserve all weighed on sentiment.

In the S&P BSE Small-Cap index Adlabs Entertainment slipped 20 percent, followed by Nutraplus India (down 19%), 8K Miles (down 18%), Mcnally Bharat (down 18%), Repro Home Finance (down 16%), Edelweiss Financial Services (down 15%) etc. among others.
In the S&P BSE Mid-cap index three stocks slipped 10-30% which include names like L&T Finance Holdings, Piramal Enterprises, and Indiabulls Housing Finance.
Indian markets witnessed heavy selling pressure near key resistance levels and eventually, it broke below 10,300 levels on an intraday basis. The Nifty50 slipped 1.6 percent for the week but closed above 10,300 levels at 10,303.
“Market was volatile on concerns of slowing world economy due to lingering trade wars between the US and China. The Nifty faced stiff resistance at 10700 as the rise in oil price and volatility in INR influenced investors to book profits,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“The FOMC minutes released on Wednesday indicated that US policymakers will go-ahead with rate hike as early as December. Mixed earnings from the latest set of results and volatility in the global market were putting pressure on markets. FIIs flows are strained due to increased global bond yield and trade war worries, hence funds are shifting from non-dollar assets,” he said.
Foreign investors have pulled out more than Rs 18,000 crore from equity markets while from the debt front, they have sold over Rs 11,000 crore, according to SEBI data on Moneycontrol.com.

Foreign investors are concerned about the fast pace of increase in interest rates and trade war worries which is likely to slow down the world economy, suggest experts.
For the week, which will also see F&O expiry is likely to remain volatile. Next batch of earnings from India Inc., the ongoing liquidity crunch in NBFCs, concerns over upcoming state elections is likely to cap upside for markets.
It would be important to keep an eye on Asian Paints, Can Fin Homes, Bajaj Finance, Ambuja Cements, Bajaj Auto, Indigo, Kotak Bank, Bharti Airtel, Maruti Suzuki, Piramal Enterprise, Yes Bank, Dr Reddy’s and a few others for directional clues for the market.
“The current phase of range-bound movement is expected to continue the following week for the Indian bourses. With the froth in the companies beginning to fade away, going forward we believe no new low prices will be reached at least in the short-term till expiry in Nifty,” Jimeet Modi, Founder & CEO at SAMCO Securities & StockNote told Moneycontrol.
“However, volatility will remain heightened due to the uncertainty in the macros because of rising fear of trade wars and oil impact globally. The short-term mood will be mainly guided by corporate results; therefore, investors are advised to be very selective in their purchases and avoid any leverage at this juncture,” he said.

Wednesday, 17 October 2018

RIL | Infosys | Mahindra CIE | CRISIL | NHPC | Hero | Shakti Pumps | IIFL

Infosys | Reliance Industries | CRISIL | NHPC | Aban Offshore | Mahindra CIE | Hero Motocorp and NHPC are stocks which are in the news today.

Results todayReliance Industries, ACC, Havells India, Aditya Birla Money, Cyient, MindTree, Responsive Industries, NIIT Technologies, Mphasis, DCB Bank, 5Paisa Capital.

Infosys Q2: Consolidated net profit rises 13.8 percent to Rs 4,110 crore versus Rs 3,612 crore, revenue increases 7.7 percent to Rs 20,609 crore versus Rs 19,128 crore; revenue in dollar terms rises 3.2 percent in dollar terms and 4.2 percent in constant currency terms QoQ. Guidance: FY19 constant currency revenue growth maintained at 6-8 percent and margin maintained at 22-24 percent. Company's large deal wins crossed $2 billion in Q2.

Hero MotoCorp Q2: Net profit falls 3.4 percent to Rs 976 crore versus Rs 1,010.5 crore; revenue rises 8.6 percent to Rs 9,091 crore versus Rs 8,371.4 crore YoY.

Jammu & Kashmir Bank Q2: Net profit jumps 20 percent to Rs 93.7 crore versus Rs 71.64 crore YoY; gross NPA falls to 9 percent against 9.83 percent and net NPA falls to 3.9 percent versus 4.85 percent QoQ.
Shakti Pumps Q2: Consolidated profit jumps to Rs 9.27 crore versus Rs 3.02 crore; revenue surges to Rs 138.7 crore versus Rs 67.7 crore YoY.
Mahindra CIE Automotive Q2: Profit surges 73.9 percent to Rs 42.6 crore versus Rs 24.5 crore; revenue rises 21.7 percent to Rs 652.4 crore versus Rs 536.2 crore YoY.
CRISIL Q3: Profit jumps to Rs 90 crore versus Rs 69.42 crore; revenue rises to Rs 425.46 crore versus Rs 409.71 crore YoY. Board approved the payment of third interim dividend of Rs 7 per share for the financial year ending December 2018.
Deepak Fertilisers: Securities Allotment Committee allotted 64,76,893 warrants of face value of Rs 10 each at a premium of Rs 298.79 per warrant convertible into 64,76,893 equity shares to Robust Marketing Services Private Limited, a promoter group company.
Aban Offshore: Company acquired 100 percent interest in UK Continental Shelf Production License and sold 50 percent interest in the same.
NHPC: Baira Siul Power Station (180 MW) in Himachal Pradesh has been taken under complete shutdown for six months w.e.f. October 15, 2018 for 'renovation & modernization of power station for its life extension' works. Revenue from continuing operation of Baira Siul Power Station was Rs 124.69 crore in the FY18 which contributes 1.798 percent of total revenue of company.
L&T Technology Services: Company completed acquisition of Graphene Semiconductor Services.
Cochin Shipyard: Board approved buyback of up to 4.39 million shares at Rs 455 per share.
IIFL Holdings: Wealth management subsidiary i.e. IIFL Wealth Management (IIFLW) has entered into a share purchase agreement with Wealth Advisors India Private Limited (WAI) and its shareholders to acquire 100 percent of WAI, at a consideration of Rs 235 crore.
Adani Green Energy: Company has incorporated a wholly-owned subsidiary company Adani Wind Energy (TN).
TTK Prestige: CRISIL upgraded the long term rating from AA-/Positive to AA/Stable and re-affirmed short term rating at A1+.
JSW Steel: Majority of Bhushan Power lenders vote in favour of JSW Steel's bid for company - CNBC-TV18 sources. JSW Steel offered highest bid for Bhushan Power & Steel at Rs 19,700 crore.
IL&FS: Company defaulted on Rs 100 crore loan payment due on Tuesday.
Bulk Deals

Analyst or Board Meet/Briefings
Pioneer Distilleries: Board meeting will be held on November 9 to consider un-audited financial results for the quarter and six months ended September 2018.
Mahindra Logistics: Board meeting will be held on November 1 to consider un-audited financial results for the quarter and six months ended September 2018.
MEP Infrastructure: Board meeting will be held on November 1 to consider un-audited financial results for the quarter and six months ended September 2018.
Tata Chemicals: Board meeting will be held on November 1 to consider un-audited financial results for the quarter and six months ended September 2018.
Torrent Pharma: Board meeting will be held on November 3 to consider un-audited financial results for the quarter and six months ended September 2018.
Capital First: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.
LIC Housing Finance: Board meeting will be held on October 29 to consider un-audited financial results for the quarter and six months ended September 2018.
Finolex Industries: Board meeting will be held on October 29 to consider un-audited financial results for the quarter and six months ended September 2018.
GMDC: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.
HCL Infosystems: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.
Force Motors: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.
GMM Pfaudler: Board meeting will be held on October 25 to consider un-audited financial results for the quarter and six months ended September 2018.
Redington India: Board meeting will be held on October 30 to consider un-audited financial results for the quarter and six months ended September 2018.
Welspun India: Board meeting will be held on October 22 to consider un-audited financial results for the quarter and six months ended September 2018.
Aavas Financiers: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.
UPL: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.
Shriram Asset Management: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.
Uniphos Enterprises: Board meeting will be held on October 26 to consider un-audited financial results for the quarter and six months ended September 2018.
Dixon Technologies: Board meeting will be held on October 31 to consider un-audited financial results for the quarter and six months ended September 2018.
Vedanta: Board meeting will be held on October 31 to consider un-audited financial results for the quarter and six months ended September 2018.
TVS Motor Company: A conference call with the analysts / fund houses post results will be held on October 23 to discuss the financial performance of the company for the second quarter.
Havells India: Management of the company has rescheduled the conference call to discuss the financial results for the second quarter on October 17.
Indian Metals: Investor call for earnings for the quarter ended September 2018 will be held on October 25.
Lupin: Investor call for earnings for the quarter ended September 2018 will be held on October 31.
SBI: Board meeting is scheduled on October 22 to examine and decide on raising of Basel III Compliant Tier 2 bonds upto Rs 5,000 crore.
Lakshmi Machine Works: Board meeting is scheduled on October 22 to consider the proposal for buyback of the equity shares of the company.
Den Networks: Board meeting is scheduled on October 17 to consider a proposal for raising of funds by issuance of equity shares through one or more methods including further public issue/ADR/GDR/qualified institutions placement/ preferential issue.
Hathway Cable: Board meeting is scheduled on October 17 to consider a proposal for raising of funds by issuance of equity shares through one or more methods including further public issue/ADR/GDR/qualified institutional placement /preferential issue.

Tuesday, 16 October 2018

Infosys | South Indian Bank | Zee Media | Indiabulls Housing | IFCI

Hero MotoCorp | Infibeam Avenues | Globus Spirits | Infosys | South Indian Bank | Zee Media and Indiabulls Housing are stocks which are in the news today.



Results today: Infosys, Hero MotoCorp, CRISIL, Federal Bank, Shakti Pumps, Jammu & Kashmir Bank, Mahindra CIE
South Indian Bank Q2: Profit jumps sharply to Rs 70.1 crore versus Rs 4.3 crore; net interest income rises 0.7 percent to Rs 506.5 crore versus Rs 503.2 crore (YoY); net NPA at 3.16 percent versus 3.27 percent and gross NPA at 4.61 percent versus 4.54 percent (QoQ).
South Indian Bank: Board decided to augment the capital by issue of Basel III compliant Tier II Bonds not exceeding Rs 500 crore in one or more tranches with or without green shoe option.
Zee Media Corporation Q2: Consolidated net profit spikes to Rs 17.25 crore versus Rs 3.8 crore; revenue rises to Rs 168.7 crore versus Rs 124.5 crore (YoY).
Indiabulls Housing Finance Q2: Profit rises to Rs 1,044 crore versus Rs 861 crore; revenue increased to Rs 3,980.4 crore versus Rs 3,155.7 crore (YoY).
Globus Spirits: Company resumed operation and commercial production at the Bihar unit.
TV Today Network: India Today Online Private Limited (ITOPL), a non-material, wholly owned subsidiary of the company, has received separate notice of demands to tune of Rs 26 crore and Rs 43.24 crore for AY2013-14&2014-15 respectively from Income Tax Department.
Infibeam Avenues: Company has executed an agreement with Sintex BAPL Limited. As per the agreement signed, company will develop, integrate, implement and maintain an online ecommerce and mobile platform with integrated logistics framework.
IFCI: Company is in process of engagement of consultant cum advisor for advising and assisting in potential merger of IFCI Infrastructure Development (IIDL), a wholly owned unlisted and non-material subsidiary, with IFCI Limited.
Tata Global Beverages: ICRA reaffirmed its credit rating on company's long-term debt, fund-based working capital limits and short-term debt.
Bulk Deals
NSE
B&B Triplewall: Festino Vincom bought 4,83,000 shares of the company at Rs 37.78 per share.
Marine Electrical: Shradha Manish Mehta purchased 3,00,000 shares of the company at Rs 67 per share and Subhrashi Properties 1,30,000 shares at Rs 66.99 per share.
Sanco Industries: Neeraj Kumar Singh bought 62,319 shares of the company at Rs 14.75 per share and Rahul Mittal HUF 57,500 shares at Rs 15.72 per share.
Silgo Retail: Amrutlal Gordhandas Thobhani purchased 69,000 shares of the company at Rs 36.15 per share.
BSE
Dixon Technologies: MS GMO Emerging Domestic Opportunities Fund sold 94,000 shares of the company at Rs 2,395 per share.
Analyst or Board Meet/Briefings
Satin Creditcare Network: Board meeting is scheduled for October 18 for the issuance of non-convertible debentures upto the amount of Rs 40 crore through private placement.
Eicher Motors: Company's officials will be meeting Gemway Assets on October 16 and Capital Group on October 19.
Jindal Stainless (Hisar): Board meeting is scheduled on October 30 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Hatsun Agro Product: Board meeting is scheduled on October 22 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Nelcast: Board meeting is scheduled on October 29 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
GNA Axles: Board meeting is scheduled on October 23 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Music Broadcast: Board meeting is scheduled on October 25 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Shree Digvijay Cement: Board meeting is scheduled on October 23 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Tribhovandas Bhimji Zaveri: Board meeting is scheduled on October 31 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Control Print: Board meeting is scheduled on October 27 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Cigniti Technologies: Board meeting is scheduled on November 12 to consider unaudited financial results of the company for the quarter and half year ended September 2018.
Gujarat Gas: Board meeting is scheduled on November 3 to consider unaudited financial results of the company for the quarter and half year ended September 2018 and the proposal for split/sub-division of equity shares of Rs 10 each.
Apar Industries: The company has scheduled earnings call on Q2 FY19 results on November 2.
HDFC Bank: Bank will host an earnings call with analysts and investors on October 20, wherein the senior management of the bank will discuss the financial results with the participants.

Monday, 15 October 2018

Looking for quality portfolio picks? Here are 15 stocks that are a buy after recent fall

The recent fall is an opportunity to add quality stocks in portfolio which are expected to give smart return over a period of 12-18 months, experts said.


The correction in last one-and-half month was so brutal that benchmark indices hit six-month low, falling more than 12 percent each and broader market saw cuts of 15-18 percent.
Sharp rupee depreciation, rising crude oil prices, trade war woes, higher US bond yields, IL&FS-led liquidity crisis fears in the NBFC space and a surprise rate pause by RBI dented investors sentiment.
After such a steep correction, the market has been volatile in October, which suggests that Q2 earnings season and state elections would be closely watched by investors for further direction, experts said.
But the recent fall is an opportunity to add quality stocks in portfolio which are expected to give smart returns over a period of 12-18 months, experts added.
"Volatility is likely to prevail going forward with crucial state elections scheduled during November/December 2018 along with quarterly results even as valuations have come down to attractive levels for various stocks," Teena Virmani, Vice President – Research at Kotak Securities told Moneycontrol.
She said ideal approach is to use this volatility to add stocks that are likely to benefit from currency depreciation as well as healthy growth in respective domains (IT and pharma), consumption growth as well as various defensives that have corrected in recent months and are now available at attractive valuations.
Raghvendra Nath of Ladderup Wealth Management also said it is time to re-look at the stock portfolios for people who have direct equity exposures. "The panic has resulted in the highest quality stocks also falling as much as bad quality. This is an excellent opportunity, therefore, to shift from low quality stocks to high quality."
Here is the list of 15 stocks which have tanked up to 30 percent in recent turmoil and could return 20-76 percent in next 10-18 months:

Brokerage: Stewart & Mackertich Wealth Management
Engineers India: Strong Buy | Target: Rs 158.57 | Return: 36%
Ongoing capex by Indian oil marketing companies, recovering oil prices, strong order book and deal pipeline place EIL in a sweet spot. The order inflow has improved significantly in the past 2 years led by BS-VI emission norms and modernisation of Vizag refinery.
Looking ahead, we expect order inflow to remain strong in domestic market which provides promising revenue visibility for next couple of years.
Considering all these, we have assigned a multiple of 18 times to its FY20 EPS and arrive at a price of Rs 158.57.
MOIL: Strong Buy | Target: Rs 200 | Return: 20%
Viewing the growth prospects of MOIL over the next few years as steel industry in India expands its capacity and so does the company expand its mine productions over the same period, we expect the topline to grow both on the back of higher realisation as well as in volume terms.
MOIL has enough internal accruals to finance capacity expansion. The EBITDA margin of the company hence widens over time while almost zero-debt levels help keep higher profit margins.
We expect the topline of the company to grow more in forthcoming quarters due to increased pollution control norms imposed in China during winters, thereby supporting the domestic steel makers. Hence, we assign a EV/EBITDA (x) of 4 for FY20 to arrive at a target price of Rs 200.
BEML: Strong Buy | Target: Rs 935 | Return: 57%
The increased spending in defence and railways has opened up many opportunities for the company. Company continues to pursue international business opportunities for increase in export business.
We believe the upcoming mining policy and Infrastructure development will increase the demand for construction equipment which in turn will lead to the growth of the company. Considering these rationales, we assign PE multiple 17 to arrive at a target price of Rs 935.
Dredging Corporation: Strong Buy | Target: Rs 496 | Return: 47%
The Dredging market has witnessed its share of ups and downs over past decade. However, the recovery in global economy and spurt in trade has necessitated the need for expansion of existing ports, and development of new ones.
Indian dredging industry has also emerged as a distinct industry due to growing dredging requirements at Indian ports and inland waterways. GOI has also proposed several measures to increase the capacity of ports. Majority of the activity would require capital dredging.
DCI being the oldest player in this Industry is to benefit the most from these developments. The company is also diversifying its core business and enhancing its fleet capacity to obtain operational efficiency. Considering all these, we have assigned a multiple of 24.5 times to its FY20 EPS and arrive at a price of Rs 496.
NBCC: Strong Buy | Target: Rs 92 | Return: 72%
On the back of regulatory and policy reforms, improving business climate and healthy order book, we believe NBCC is poised for the steady growth in the coming years.
NBCC has a strong order book of Rs 80,000 crore with 95 percent coming from PMC and 5 percent from EPC/Real estate.
Given zero long term debt on its balance sheet, NBCC has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. Considering these rationales, we assign PE multiple of 24 to arrive at a target price of Rs 92.
L&T Financial Holdings: Strong Buy | Target: Rs 186 | Return: 40%
The company is well placed to accelerate growth towards retail lending with healthy margins, stronger fee income and lower credit costs. LTFH has established fee as a second line of income to counter interest rate cycle.
The company has used power of digital and data analytics to unlock RoE and improved competitive position across all products. We assign a P/B(x) multiple of 2.0 (x) on FY21E book value, to arrive at a target price of Rs 186.
M&M Financial Services: Strong Buy | Target: Rs 527 | Return: 37%
The financing arm of Mahindra Group is primarily engaged in the financing of vehicles.
The company has pan India presence & has presence in various verticals like auto financing, housing finance, insurance broking etc. The strong rural push & growth in automobile sector, will be beneficial for the company.
We value the company by SOTP, and we arrive at a target price of Rs 527.
Muthoot Capital Services: Strong Buy | Target: Rs 1,064 | Return: 27%
Muthoot Capital Services, promoted by the Muthoot Pappachan Group, is a non-banking finance company (NBFC) based in Kochi, Kerala.
The company has borrowing from diversified sources. 70 percent of the borrowings come from bank loans. The share of commercial paper in the total borrowings is just 3 percent, which makes it immune to all the current liquidity concerns being faced by other NBFCs
Cost to income ratio stands at 50 percent which is one of the lowest in the industry. Both GNPA & NNPA have been stable at around 5 percent and 4 percent respectively.
The company has strong presence in the South & is expanding it's reach on a national level. Considering the strong rural push & growth in the automobile sector, we assign a P/B of 3.2, to arrive at a target price of Rs 1,064.
Brokerage: SMC Research
NOCIL: Buy | Target: Rs 256 | Return: 76%
NOCIL is the largest rubber chemical manufacturer in India with a dominant around 40 percent domestic market shares and around 4-4.5 percent global market share.
A strong 10 percent CAGR is expected in domestic tyre industry over FY18-21E. The huge capex plans announced by tyre manufacturers (around Rs 13,640 crore) and 12 percent expected growth in automobile industry is an indicator for the upcoming demand for tyres.
NOCIL supplies to all tyre manufactures and hence we believe that the company is strongly positioned to capitalise the growing demand for tyres.
Owing to stable margins, superior return ratios and debt free status, we have valued the company at 10x EV/EBIDTA arriving at a target price of Rs 256 per share.
Brokerage: LKP Research
Ashok Leyland: Buy | Target: Rs 142 | Return: 23%
Pre-buying before the BS VI implementation in April 2020 to result in a spur in demand and hence buoyancy in truck sales.
Various infra structural developments in the country may lead to the continuity of current growth momentum in H2 FY19 as well.
Upcoming elections in 2019 may push MHCV sales on the back of GOI expediting infra reforms. Axle norms implementation may pull down truck sales to some extent in the ensuing months, but the intrinsic demand strength may well offset this pull down.
Continuous gaining of the Defense orders (around 10 percent of topline) from GOI, strong exports penetration (10 percent of topline), wide AfterMarket (AM) penetration market (20 percent MS) are further positives.
Operating leverage, price increase taken and improving product mix (in favor of higher tonnage trucks, exports, AM and Defense) may counter raw material price hikes, from margins point of view. At 13.7x times FY20E earnings, the stock looks extremely attractive from a mid to long term view.
Gabriel India: Buy | Target: Rs 174 | Return: 47%
A strong player in the automobile shock absorber space with a wide spread clientele across the verticals of the automobile industry.
No single client concentration as TVS is the biggest client with 20 percent contribution to topline followed by MSIL.
Single source supplier to the likes of Vitarra Brezza, Ignis, S Cross, KUV 1oo, XUV 5oo, Scorpio, Bolero and second source supplier to Alto, Wagon R, Tiago, Tigor and most of the 2Ws from Bajaj, Yamaha, TVS, Suzuki, HMSI and RE.
Gabriel wins a duopolistic contract to provide to the Alto replacement to be launched next year. This is a big opportunity which may allow the company to gain market share in PVs.
Rapid increase in dealers and touch points in the AM business (40 percent MS) and increase in traded auto parts (10 percent of AM topline) to help margin growth.
Clean balance sheet, minimal debt, high return ratios (more than 20 percent) makes the investment case stronger. Attractive valuations of 12.5x times FY20E EPS, provides a good entry opportunity.
IndusInd Bank: Buy | Target: Rs 2,270 | Return: 37%
There is potential for margins to improve from current 3.95-4 percent led by - 1) Change in the portfolio mix more in the favour of high yielding retail assets. 2) Higher corporate credit demand (which earlier had got shifted to bond market). 3) Opportunistic demand coming from better yielding refinancing options in NCLT cases, 4). Potential for SA rates moving down.
Productivity improvements are likely and merger of Bharat Financial would be best fit into the bank’s product suite.
Sustained strength in the asset quality will continue – Asset quality profile to remain robust as we expect credit cost of 55-60 bps in FY19E similar to last year levels.
Valuations - Return profile is likely to improve for better – we estimate ROE to improve to 18 percent in FY20E from 16 percent in FY18. We recommend a Buy rating on the stock with a TP of Rs 2,270. The company is trading at 3.6x & 3x FY19E & FY20E ABV respectively.
Jamna Auto: Buy | Target: Rs 103 | Return: 44%
Jamna Auto is a market leader in leaf springs used in CVs and globally #2 in this business has got a wide array of clientele. It has strong market share of 73 percent in the leaf springs space and 95 percent in parabolic leaf springs space.
The company earns 83 percent of its topline from OEMs and hence is proxy to the CV upcycle. Tata Motors sources around 73 percent while Ashok Leyland sources 91 percent of its requirement from Jamna.
Widening distribution network, increasing tie-ups with retailers and garage personal and growing aftermarket exports are positives for the replacement business (10-15 percent market share).
The company is doubling its parabolic spring (25 percent of volumes) capacity which would in turn provide it with higher volumes and margins.
Higher emphasis on Infraprojects by GOI, pick up in mining activity, demand from some of the big corporates to update the CV fleet and possible implementation of ‘cash for clunkers’ scheme will ensure CV sales remain on fast track. Jamna is EV agnostic.
Clean balance sheet, zero net debt, high return ratios (between 30-40 percent) makes the investment case stronger. At inexpensive valuations of 12.6x times FY 20E EPS, it is a good investment opportunity.
Sun TV Network: Buy | Target: Rs 990 | Return: 52%
The South Indian broadcaster with significant presence in 3 out of 4 states (AP & Telangana, Kerala, Karnataka) and market leader in one (TN). Improving content, shift to commission model, market share betterment in key markets like TN and AP to maintain around 15-20 percent advertising revenue growth.
New channel launches like GECs in TN and AP and entry into Bangla and Marathi to provide the delta in advertising revenues. Big opportunity lies in the Subscription business as 50 percent households (8-10 million) in TN are yet to be digitized under Phase III and IV which would provide volumes as well as ARPU growth.
Upcoming 3 blockbusters in second half of FY19 (one which includes Rajinikanth) will lift up Movies business of Sun to a great extent.
IPL business revenues has great potential to grow from here with topline growth moving up with more title sponsors, gate revenues, performance related prize money, agreement with BCCI, popularity of IPL and reduction in franchisee costs. At 15.6x times FY20E earnings Sun TV provides attractive risk-reward.
Yes Bank: Buy | Target: Rs 350 | Return: 42%
Management succession plan is underway. In the recent developments, the bank's board has formed Search & Selection Committee (SSC) in order to find replacement of CEO.
In the recent conference call, the management has reiterated its growth & asset quality outlook.
In this turmoil, stock is corrected by nearly 50 percent from its peak levels. We view the present uncertainty as an opportunity till the new CEO
takes charge.
Yes Bank market share has improved considerably from 1.3 percent to 2.4 percent over the last 2 years in total systemic credit. Share of AAA rated customers in total corporate book has increased substantially from 17 percent to 23 percent over the last 6 quarters.
Competitiveness of the bank has improved and there is room for margin improvement from current 3.5 percent.
Given the recent correction, it is trading at attractive valuation, hence we retain Buy rating on the bank with a TP of Rs 350 (target multiple of 2.3x FY20E ABV).

Thursday, 11 October 2018

TCS | Zee Entertainment | PTC India | Dilip Buildcon | ITI | OIL | GE Power


Dilip Buildcon | ITI | Oil India| GE Power | Veerhealth Care | Zee Entertainment and PTC India are stocks which are in the news today.



Here are stocks that are in the news today:

Results today: TCS, GM Breweries
Adani Enterprises: Adani Agri Logistics, a wholly owned subsidiary of the company, has incorporated a WOS namely Adani Agri Logistics (Darbhanga) Limited.
PTC India: Company signed fresh agreements for supplying 200 MW power to Bangladesh for 15 years.
BC Power Controls: India Rating & Research has assigned rating on fund based limits of Rs 34 crore as BB+/Stable/A4+. Long-term rating upgraded, short-term rating affirmed.
Swelect Energy Systems: ICRA assigned short term rating as A2+ and long term rating as A-(stable) to the company with regard to Line of Credit of Rs 135 crore availed from various banks.
GE Power India: The management is exploring and evaluating various options to dispose of the land and building, including machinery & equipment related to Vadodara & Shahabad factories.
Udaipur Cement Works: CARE revised company's long term bank facilities ratings, from AA (SO); Stable to AA- (SO); stable. However, there is no change in the outlook of the Company which continues to remain stable as was earlier.
Oil India: Company made two hydrocarbon discoveries in Dibrugarh & Tinsukia district in the upper Assam Basin during the second quarter of the financial year 2018-19, in the wells West Lohali -1 and Dhakuwal-l respectively.
Veerhealth Care: Company has successfully shifted its factory from Ahmedabad to Vapi. Company has also received permission from FDA and has commenced production of ayurvedic and cosmetic products at Vapi.
McLeod Russel: Company handed over the specified assets namely, estates and bearer plants and other assets of Moran, Lepetkatta, Attabarrie and Sepon Tea Estates of the company in Assam. The transaction is subject to necessary approval from the Government of Assam.
Zee Entertainment Enterprises Q2: Consolidated net profit falls 38 percent to Rs 386.7 crore versus Rs 625.5 crore; revenue rises 25 percent to Rs 1,976 crore versus Rs 1,582 crore (YoY).
Dilip Buildcon: DBL has been declared L-1 bidder for a new OB Removal Contract Mining Project valued at Rs 1,000.40 crore by the Mahanadi Coalfield Limited (MCL), A subsidiary of Coal India Limited (CIL), Samleshwari OCP, Jharsuguda District, Odisha.
Uttam Galva Steels Q2: Loss at Rs 580.6 crore versus loss Rs 213.3 crore; revenue falls to Rs 109.7 crore versus Rs 884.89 crore (YoY).
Bharat Gears: In order to meet out the capital expenditure of upto Rs 60 crore, the company has lined up the source of funds through Rights issue of equity shares upto Rs 15 crore, term loan of Rs 35 crore from KKR India Financial Services Private Limited for which sanction letter has been obtained and remaining Rs 10 crore from the internal accruals.
ITI Limited: ITI received purchase order for executing the RajNet project from RajCOMP Info Services Ltd, a Government of Rajasthan Undertaking, for establishing approximately 40,000 outdoor Wi-Fi access points in Rajasthan with an order value of approximately Rs 334 crore on rate contract basis.
Indiabulls Integrated Services and SORIL Infra Resources: To segregate its upcoming financial services, insurance business from its other businesses and to have focused business operations by the company on life and general insurance, customer platform and other financial services business, and further to streamline its ownership structure by providing its shareholders direct ownership in SORIL Infra Resources (SORIL), the Reorganization Committee of the company has decided to recommend to the board the proposal for demerger, on a going concern basis, its non-financial business segment(s) undertakings to SORIL, subject to all applicable approvals.
Ganesh Films India: Company acquired the sole theatrical distribution rights for North India region from Lyca Productions for Tamil language movie 'Vada Chennai'.
Technvision Ventures: Solix Technologies, Inc announced a partnership with NTT DATA Services to provide comprehensive, intelligent, data-driven finance and data management solutions.
Metroglobal: Company settled its disputes with the purchaser, as a result whereof the company and the purchaser now have no claims against each other.
Bulk Deals
Indiabulls Ventures: Jasmine Capital Investments Pte Ltd bought 56,97,000 shares of the company at Rs 376.4 per share on the NSE.
JK Paper: Kotak Mahindra Asset Management sold 12,15,530 shares of the company at Rs 161.85 per share on the NSE.
Kritika Wires: VK Mercantile Private Limited purchased 2,64,000 shares of the company at Rs 33.85 per share on the NSE.
Kshitij Polyline: Sanghvi Pankit Jayesh bought 56,000 shares of the company at Rs 34.9 per share on the NSE.
Kwality: Letko Brosseau Emerging Markets Equity Fund sold 15,00,000 shares at Rs 12.71 per share and Sanjay Dhingra 15,74,166 shares at Rs 12.56 per share on the NSE.
Mercator: Reliance Financial sold 37,50,000 shares of the company at Rs 11.1 per share on the NSE.
NCL Industries: NCL Homes sold 2,46,896 shares of the company at Rs 130.07 per share on the NSE.
Sanco Industries: IFL Promoters sold 60,000 shares of the company at Rs 14.64 per share on the NSE.
Thyrocare Technologies: Company itself purchased 2,79,153 shares at Rs 669.83 per share on the NSE.
RSWM: Purvi Vanijya Niyojan bought 2,35,318 shares of the company at Rs 178.94 per share on the NSE and Raghav Commercial purchased 2,28,000 shares at Rs 179 per share on the BSE.
Analyst or Board Meet/Briefings
Bhansali Engineering Polymers: Board meeting to be held on October 19 to consider unaudited results of the company for the quarter ended September 2018.
Container Corporation of India: Board meeting to be held on October 30 to consider unaudited results of the company for the quarter ended September 2018.
Maruti Suzuki India: Board meeting to be held on October 25 to consider unaudited results of the company for the quarter ended September 2018.
National Peroxide: Board meeting to be held on November 1 to consider unaudited results of the company for the quarter ended September 2018.
Trent: Board meeting to be held on November 1 to consider unaudited results of the company for the quarter ended September 2018.
India Energy Exchange: Company's officials will be meeting analysts/investors on October 15.
L&T Finance Holdings: A meeting of the respective board of directors of the material subsidiaries of the company i.e. L&T Finance and L&T Infrastructure Finance Company will be held on October 24 to consider their unaudited financial results for the half year ended September 2018.
Karnataka Bank: Bank will conduct a conference call with investors/ analysts on October 12.
L&T Finance Holdings: Board meeting to be held on October 24 to consider unaudited results of the company for the quarter ended September 2018.
ION Exchange: Board meeting to be held on October 24 to consider unaudited results of the company for the quarter ended September 2018.
Muthoot Capital Services: Board meeting to be held on October 18 to consider unaudited results of the company for the quarter ended September 2018.
Eicher Motors: Company's officials will be meeting Columbia Threadneedle on October 11 and HSBC Global Asset Management on October 12.
Muthoot Capital Services: Board meeting to be held on October 17 to consider unaudited results of the company for the quarter ended September 2018.
Tata Motors: Board meeting to be held on October 31 to consider unaudited results of the company for the quarter ended September 2018.
Sundram Fasteners: Board meeting to be held on October 30 to consider unaudited results of the company for the quarter ended September 2018.
Cochin Shipyard: Company has rescheduled its board meeting to consider the proposal for buyback of the fully paid-up equity shares October 16.
Balaji Telefilms: Company's officials will be meeting Motilal Oswal MF on October 11.
Great Eastern Shipping: Company's officials will be meeting Vibrant Securities on October 11.

25 stocks fell 10-30% in just 4 trading sessions

In the S&P BSE Mid-cap index, three stocks slipped 10-30% which include names like L&T Finance Holdings, Piramal Enterprises, and ...