Friday, 31 August 2018

Idea | Wipro | ICICI Securities | Mahindra Logistics | PNC Infratech | LKP Finance

Idea Cellular | Wipro | ICICI Securities | Mahindra Logistics | PNC Infratech and LKP Finance are stocks, which are in news today.

GAIL: Indian Railways and GAIL (India) took a significant step towards expanding usage of environment-friendly fuel, natural gas across all applications of the Indian Railways by signing a Memorandum of Understanding (MoU).
Idea Cellular: NCLT approves Idea-Vodafone merger - CNBC-TV18 Sources.
Mindtree: GHD Digital and Mindtree collaborating on a broad Digital platform targeted to the property and infrastructure sectors. Partnership offers a disruptive approach to connected buildings to dramatically reduce costs and optimize experiences.
Mahindra Logistics: Board members approved further investment in Lords by way of an additional purchase of 2,39,220 equity shares of Lords (representing 10.12 percent of equity share capital of Lords) from the existing Shareholders of Lords.
Muthoot Finance: The meeting of the Board of Directors which is scheduled to be held on September 4 will consider fund raising by way of issue of Redeemable Non-Convertible Debentures (NCD) upto Rs 5,000 crore (including unissued portion from previous approval of Rs 2,000 crore) through Private Placement in one or more tranches.
Hindustan Construction Company owned Lavasa Corporation gets NCLT nod to start its insolvency proceedings.
Wipro: Wipro joins BiTA to Drive Blockchain adoption in the transportation industry.
Yes Bank has received the RBI's approval that Rana Kapoor may continue as managing director & CEO of bank till further notice from RBI
Kesoram Industries: P Radhakrishnan will take over as Chief Financial Officer effective commencement of business August 31.
MCX: Multi Commodity Exchange Clearing Corporation (MCXCCL), a wholly owned subsidiary of MCX will commence operations from September 3.
Hubtown: Board has decided to withdraw the proposed preferential issue.
LKP Finance: Company has received Reserve Bank of India approval for proposed sale of up to 62 percent equity shareholding to Dakshin Mercantile Private Limited, an Essel Group company and change in its management structure.
PNC Infratech: Company has received Letter of Award (LOA) from Maharashtra State Road Development Corporation for the 54.4 km long 4th Package of Nagpur-Mumbai Six Lane Super Communication Expressway (Maharashtra Samruddhi Mahamarg) on EPC basis for a negotiated contract quoted price of Rs 1,999.52 crore.
Dilip Buildcon: DBL has received Letter of Acceptance (LOA) for a new EPC Project valued at Rs 1,698 crore by the Maharashtra State Road Development Corporation.
Fortis Healthcare: Gagandeep Singh Bedi resigned as CFO w.e.f. September 30 due to personal reason.
Allahabad Bank decided for an upward revision of MCLR by 5 bps w.e.f Sept 01
JSW Energy: JSW Energy revises offer for Prayagraj Power to over Rs 6,000 crore to outbid Tata Power - CNBC-TV18 Sources.
ICICI Securities: Chanda Kochhar reappointed on the board of the company as ICICI Bank voted in favour of Kochhar’s reappointment at company - CNBC-TV18 Sources.
Jet Airways: Govt official says after preliminary scrutiny, ROC orders a formal inspection of company - CNBC-TV18 sources
L&T Infotech's whole time director Aftab Zaid Ullah resigned effective from August 30, 2018 but will continue in his current position as Chief Operating Officer  till November 30, 2018.
Jet Airways: Company told CNBC-TV18 that it received communication from the office of ROC seeking response to a complaint. Company is taking necessary steps to submit its response in this regard
South Indian Bank appoints Chithra H as CFO w.e.f September 1
DHFL to raise Rs 2,000 cr from NCDs
Ajanta Pharma's director Purushottam B. Agrawal resigned as director of the company
Hathway Cable raises Rs 100 cr from promoter group entity
OBC gets board approval to raise up to Rs 1,000 crore
NRB Bearing - CRISIL reaffirmed long term rating to CRISIL AA-/Positive
Wockhardt gets shareholders' nod to raise up to Rs 1,200 crore
TI Financial Holding appoints Sridharan Rangarajan as additional director of the company w.e.f. August 30, 2018
LG Balakrishnan board authorized CMD of the company to evaluate the investment of company in JV, Renold Chain India
Also Authorised MD to engage in discussions and negotiation in connection with a possible acquisition of Chain Tensioner Business
DLF: Rajdhani Investments & Agencies bought 1,62,00,000 shares of the company at Rs 217 per share while Kavita Singh sold 92,00,000 shares of the company at Rs 217 per share.
JBF Industries: Capri Global Advisory Services sold 5,00,000 shares of the company at Rs 44.95 per share.
Harrisons Malayalam: Manjula Venkatakrishnamohan Prabhala bought 1,00,000 shares of the company at Rs 102.72 per share.

Thursday, 30 August 2018

Unitech | Greaves Cotton | Tata Chemicals | Laurus Labs | Reliance Infra

Unitech | Greaves Cotton | Tata Chemicals | Laurus Labs and Reliance Infra are stocks, which are in news today.

Mahindra Logistics: Board approved the appointment of Yogesh Patel, VP – Finance of the company, as the CFO and KMP of the company, with effect from September 1.
PNB Housing Finance - NCD worth Rs 585 crore to be allotted on August 30
Amtek Auto: Q3FY18 loss at Rs 80.21 crore against loss of Rs 241.56 crore in Q3FY17 and loss of Rs 10,652.2 crore in Q2FY18. Revenue at Rs 313.77 crore against Rs 457.2 crore in Q3FY17 and Rs 343.62 crore in Q2FY18.
Unitech: Q1FY19 loss at Rs 72.95 crore against loss Rs 16.47 crore; revenue falls to Rs 76.3 crore versus Rs 195.96 crore (YoY).
NALCO declares highest ever dividend of Rs 1102 crore for 2017-18
PTC India Financial Services: Q1 profit falls to Rs 55.93 crore versus Rs 72.4 crore; provisions and contingencies rose to Rs 17.11 crore versus Rs 14.23 crore (YoY).
Pioneer Distilleries will resume its operations from August 30 consequent to the completion of the maintenance work at Balapur Village, Nanded, Maharashtra
Tata Chemicals: ICICI Prudential Life Insurance sold 52,13,678 shares of the company at an average price of Rs 414.21 per share which were worth Rs 216 crore. Its stake in the company reduced to 2.97 percent from 5.02 percent earlier.
Ministry of Information & Broadcasting granted approval for appointment of Mr Vivek Khanna as CEO of TV Today
Vedanta's subsidiary Electrosteel Steels: Q4FY18 loss at Rs 5,272.35 crore against loss of Rs 293.33 crore; revenue rises to Rs 1,149.03 crore against Rs 676.15 crore (YoY).
Greaves Cotton: Board has approved the proposal of investment in Ampere Vehicles Private Limited, to acquire 67 percent in the first phase and further 13 percent in a span of three years.
Indian Bank has entered into the Inter Creditor Agreement (ICA) for resolution of stressed assets
Laurus Labs: Company receives USFDA approval for Metformin Hydrochloride tablets which are used for treatment of diabetes.
Celestial Biolabs: The meeting of the board of directors of the company is scheduled on September 3 to consider the further issue of equity shares and/or warrants to promoters and non-promoters group on preferential basis.
Reliance Infrastructure: Company completed 100 percent sale of its Integrated Munibai Power Distribution Business to Adani Transmission.
National Fertilizers (NFL): Ramagundam Fertilizers & Chemicals Limited (RFCL) is a joint venture company promoted by NFL, EIL and FCIL to revive old FCIL plant at Ramagundam in Telangana. The plant is likely to start commercial production by the year 2019. NFL has signed Memorandum of Agreement (MoA) with RFCL to market RFCL Products including 12.71 LMT urea to be produced by RFCL plant at Ramagundam.
Raj Agro Mills: Change of Name from Raj Agro Mills to PAOS Industries
Aditya Birla Capital and Aditya Birla ARC executed agreements to enter into a strategic joint venture with Varde Partners
Reliance to expand operations in U'khand
Tata Tele (Maha) seeks shareholders' nod to raise Rs 20,000 cr
Bharti Airtel shareholders approve merger proposal with Tata Teleservices
Aditya Birla Fashion gets shareholders' nod to raise up to Rs 1,250 cr via NCDs
Source -

Wednesday, 29 August 2018

LIC raised stake in these 10 stocks in the past one year; are these sound portfolio bets?

Asian Paints, Britannia Industries, Castrol India, CRISIL, HUL, ICRA, Indiabulls Housing Finance, IGL, P&G Hygiene and Health, and UltraTech Cements are stocks in which LIC raised its stake consistently for the past four quarter or 1 years.

With the Sensex and Nifty close to breaching their crucial levels of 40,000 and 12,000 soon, experts feel stock selection remains key at current levels given the rich valuations.
One way of finding stocks, which are offering value at current levels, is by looking at a portfolio of marquee investors. We have studied the portfolio of Life Insurance Corporation of India (LIC), the largest domestic institutional investor in India, for the past four quarters.
Data from AceEquity suggests that there are 10 such high-quality stocks in which LIC has raised its stake consistently for the past 1 year. These include: Asian Paints, Britannia Industries, Castrol India, CRISIL, Hindustan Unilever, ICRA, Indiabulls Housing Finance, Indraprastha Gas, P&G Hygiene & Health and UltraTech Cement.

Most companies on the list have grown at a rate higher than the industry and are strong compounding bets. Hence, experts recommend including them in your portfolio.
“An investor should always think independently and not blindly copy any foreign or domestic institutional investor or superstar investor. From the above list, Asian Paints, HUL and Britannia and P&G are safe compounding bets that can be added on a decline if the portfolio is conservative,” Pritam Deuskar, Fund Manager, Bonanza Portfolio, said.
As many as 7 out of 10 stocks have delivered positive returns in the last one year. Britannia has rallied 55 percent in the last one year followed by Hindustan Unilever (51 percent) and Asian Paints (23 percent).
On the losing front, ICRA, CRISIL, and Castrol India saw negative returns of up to 18 percent in the last one year.
“All of the above companies have consistently grown at a higher-than-industry growth rate for the past 5-6 quarters, been able to leverage operational efficiencies and hence improved margin,” Atish Matlawala, Senior Analyst, SSJ Finance & Securities, said.
He expects these companies to outperform industry growth for at least the next 4-6 quarters and deliver better returns over the next couple of years. "Companies like Asian Paints, Britannia, HUL and UltraTech are must have for any investor portfolio.”
Churn your portfolio
Investors should actively churn of their portfolio and book losses in non-performing stocks and enter stocks that are showing momentum because the bull run is here to stay.
According to June quarter data, LIC holds stake in many as 32 stocks. These include: LIC Housing Finance, TCM, Simplex Realty, Larsen & Toubro, ITC, Corporation Bank of India, ICICI Bank, Punjab National Bank, NTPC, ACC and Castrol India.
From a performance perspective, most stocks have not delivered stellar returns in 2018. Hence, analyst advises investors not to blindly follow LIC's investment portfolio and churn portfolio to include stocks that are showing momentum.
“Many companies are going through turbulent times and hence investor must do a detailed analysis of these companies before investing. Stocks like ICICI Bank are worth investing if one has a longer-term view. The worst is over for ICICI Bank and will be on the growth path in the next 4-6 quarters,” said Matlawala.
Deuskar of Bonanza Portfolio feels ITC and ICICI Bank can be better bets and investors should never invest in stocks just because some particular institution is buying.

Tuesday, 28 August 2018

Sensex gives up some gains after record opening | Nifty holds 11,700 banks fall

Equities have erased some of their gains on the back of selling in banks. The Bank Nifty is down one-third of a percent. Weakness in midcaps, too, has weighed on the indices.

Market Update: After opening at fresh record highs, equities have erased some of their gains on the back of selling in banks. The Bank Nifty is down one-third of a percent. Weakness in midcaps, too, has weighed on the indices. 

The Nifty is now trading just above 11,700-mark. Other sectoral gainers include pharmaceuticals, IT and energy names. Among stocks, shares of Jet Airways rose 3 percent, even as the airline reported a loss of Rs 1,300 crore for the June quarter. 
Meanwhile, RIL has hit another milestone, touching Rs 1,300 apiece. 
The Sensex is up 80.75 points or 0.21% at 38774.86, while the Nifty is up 24.00 points or 0.21% at 11716.00. The market breadth is narrow as 913 shares advanced, against a decline of 909 shares, while 108 shares were unchanged.

Jet Airways up 3%: Shares of Jet Airways rose nearly 3 percent in the opening trade on Tuesday despite the company reported weak numbers in the quarter ended June 2018.
The company has reported net loss at Rs 1,323 crore in Q1FY19 against profit of Rs 53.5 crore in the same quarter last fiscal.
Revenue was up 6.4% at Rs 6,010.5 crore against Rs 5648.9 crore. Q1 EBITDA loss was at Rs 1,018.4 crore versus EBITDA of Rs 88.1 crore.
The company to focus on looking at raising funds, also to focus on cost cutting measures, raise revenues through monetisation.

Buzzing: Shares of Jet Airways rose nearly 3 percent in the opening trade on Tuesday despite the company reported weak numbers in the quarter ended June 2018.
The company has reported net loss at Rs 1,323 crore in Q1FY19 against profit of Rs 53.5 crore in the same quarter last fiscal.
Revenue was up 6.4% at Rs 6,010.5 crore against Rs 5648.9 crore. Q1 EBITDA loss was at Rs 1,018.4 crore versus EBITDA of Rs 88.1 crore.
Market Opens: It’s another record high start for the market on Tuesday morning, with the Nifty hitting 11,700 for the first time, while the Sensex rose over 150 points to hit another record high in the opening trade. 
The Sensex is up 182.75 points or 0.47% at 38876.86, while the Nifty is up 56.30 points or 0.48% at 11748.30. The market breadth is positive as 602 shares advanced, against a decline of 216 shares, while 47 shares were unchanged. 
Among top gainers are Kotak Mahindra Bank, M&M, HDFC, Lupin and Page Industries, while Yes Bank, HPCL, Titan and BPCL have lost the most. 

Rupee Opens: The Indian rupee opened higher by 14 paise at 70.02 per dollar on Tuesday versus previous close 70.16.
Rupee consolidated in abroad range for the tenth consecutive sessions despite weakness in the dollar against its major crosses. Yesterday, the dollar was weighed down after US and Mexico agreed overhaul the NAFTA, putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact, said Motilal Oswal.
US president threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbors and warned he expected concessions on Canada’s dairy protections.
Today, USD-INR pair is expected to quote in the range of 69.80 and 70.20, it added.

Market at pre-open: Pre-opening rates indicate positive opening for the market with Nifty trading around 11,750 and Sensex was up nearly 150 points.
At 09:02 hrs IST, the Sensex is up 146.59 points or 0.38% at 38840.70, and the Nifty up 56.60 points or 0.48% at 11748.60.
HDFC Bank, RCF, Chambal Fertilisers, Balrampur Chini, Power Grid, are among the major gainers on Indices, while Jet Airways down nearly 10 percent in pre-opening trade.

Monday, 27 August 2018

Future Retail surges 6% on report of Google, Paytm teaming up to buy 7-10% stake

Deal valuation pegged at Rs 3,500-4,000 crore, according to a report in The Economic Times.

Shares of Future Retail soared 6 percent on Monday morning as investors reacted to a report that Google and Paytm were looking to buy stake worth Rs 3,500-4,000 crore in the firm.
The stock touched an intraday high of Rs 552.00 and an intraday low of Rs 540.00.
According to a report in The Economic Times, the internet giant and e-wallet major are likely to form a consortium to buy 7-10 percent stake in Future Retail. This more puts the group in competition against Amazon, which has also reportedly submitted a term sheet to buy the same stake in the firm, the publication reported, citing sources.
Kishore Biyani of Future Group recently told the paper that a deal was likely to be closed with a foreign investor in the next two months. The fund infusion, he added, could be through primary and secondary share sale.
Also Read: Future Retail may soon join hands with a foreign investor
The company recently reported 3.56 percent rise in net profit for the June quarter at Rs 153.12 crore, against a net profit of Rs 147.85 crore in the same period a year ago. Future Retail also announced resignation of Rajan Bharti Mittal as non-executive director of the company "due to preoccupations".
In June 2018, three years after the merger, Bharti group sold more than half of its stake in Future Retail for nearly of Rs 1,697 crore through open market transactions. Bharti group entity Cedar Support Services disposed of 3.03 crore shares, amounting to 6.04 percent stake in Future Retail.
The stock has been trading flat in the past one month as well as in the past three days. At 09:20 hrs, Future Retail was quoting at Rs 545.90, up Rs 26.75, or 5.15 percent, on the BSE.
Source -

Friday, 24 August 2018

LIC Housing Finance | SREI Infra | Aban Offshore | Britannia | Mahanagar Gas

LIC Housing Finance | SREI Infra | Aban Offshore | Britannia and Pratibha Industries are stocks, which are in news today.

Results Today: LIC Housing Finance, MAS Financial, Pratibha Industries, Sundaram Finance, Easun Reyrolle
Aban Offshore’s annual general meeting on September 24
Music Broadcast: Board considered resignation of Abraham Thomas from post of CEO and appointment of Ashit Kukian to take over as CEO.
Britannia Industries: Board approves 2-for-1 stock split.
Tata Investment Corporation: Q1 profit rises to Rs 22.48 crore versus Rs 17.98 crore; revenue climbs to Rs 30.94 crore versus Rs 25.33 crore (YoY).
Jubilant Life Sciences: India Ratings & Research has upgraded the company's long term credit rating to 'AA/Stable' from 'AA-/Stable'; also affirmed short term credit rating of 'A1+'.
Tamilnadu Petroproducts: CARE Ratings has upgraded the credit rating of company's long term bank facilities worth Rs 60 crore to BBB+/stable from BBB/stable; long/short term bank facilities worth Rs 63 crore to BBB+ stable/A3+ from BBB stable/A3.
SREI Infrastructure Finance: Subsidiary Quippo Oil & Gas Infrastructure proposes to sell 2,600 equity shares, constituting 26 percent shareholding in company's step down subsidiary Quippo Drilling International to an overseas entity. Quippo Drilling International is a subsidiary of Quippo Oil & Gas Infrastructure.
CG Power board recommended appointment of M/s SRBC & Co & M/s KK Mankeshwar as joint statuary auditor
Aditya Vision: One of company's existing Showroom at Zero Mile, Patna, Bihar has been temporarily shut down due to government order
BG Asia Pacific Holdings Pte sold 1,25,00,000 shares of Mahanagar Gas at Rs 851.89 per share on the NSE and 13,28,855 shares at Rs 854.54 per share on the BSE.
Indianivesh bought 1,29,790 shares of Liberty Shoes at Rs 217.55 per share on the NSE.
Vivimed Labs in board meet on August 23 considered sale of specialty chemical business for consideration not less than Rs 275 crore to Vivimed Specialty Chemicals UK
ADF Foods itself bought 1,19,682 shares at Rs 249.87 per share on the NSE.
AJO Emerging Markets Small-cap Master Fund purchased 49,905 shares of Goa Carbon at Rs 793.51 per share on the NSE.
DVI Fund Mauritius sold 35,80,943 shares of Sequent Scientific at Rs 66.02 per share on the NSE.
Amitabh Chaudhry sold 2,56,471 shares of HDFC Standard Life Insurance via market sale from August 20-21, 2018
Kajaria Ceramics clarified that unable to comment on the significant increase in the volume of the Company's security across Exchanges
Ruchi Soya lenders approve Adani Wilmar's Rs 6,000 cr bid
PNB to seek shareholders' nod for issuing 10 cr shares to employees
Axis Bank commits Rs 5 cr for Kerala
Adani Foundation commits Rs 50 cr for Kerala flood relief
Orient Bell opens store in Coimbatore

Thursday, 23 August 2018

CreditAccess Grameen | BPCL | Navneet Education | Lupin | Adani Green | Mahanagar Gas

BPCL | Navneet Education | Lupin | Adani Green | Mahanagar Gas and Jet Airways are stocks, which are in news today.

CreditAccess Grameen shares to list on Thursday
Lupin receives tentative FDA approval for generic Nudovra Tablets
Suven Life Sciences secures product & process patents in Canada and USA
HDFC Asset Management Company: Q1 profit rises to Rs 205.26 crore versus Rs 164.57 crore; revenue rises to Rs 471.23 crore versus Rs 390.42 crore (YoY).
Tech Mahindra approved the proposal to acquire 100% shareholding in Inter-Informatics spol. s.r.o.
Prism Johnson has received Letter of Intent from Madhya Pradesh Government for allotment of cement grade limestone Mining Lease for 50 years. The mining lease would be captive to the cement plants of the company at Satna, Madhya Pradesh
Motilal Oswal Financial Services: Q1 profit falls to Rs 104.36 crore versus Rs 126.53 crore; revenue rises to Rs 646.47 crore versus Rs 588.25 crore (YoY).
Motilal Oswal Financial Services: Company has transferred its lending business by way of a slump sale on a going concern basis, to its wholly owned subsidiary, Motilal Oswal Capital Markets (MOCML) as contemplated in the business transfer agreement at a consideration of Rs 50 crore
Sterlite Technologies - ICRA upgraded rating on NCD & long term rating for the line of credit (LOC) of the Company to ICRA AA from ICRA AA-
Pennar Industries bags Rs 514 crore worth of orders
Orchid Pharma: Q4FY18 loss narrows to Rs 92.37 crore versus 188.3 crore; revenue falls to Rs 155.8 crore versus Rs 204.88 crore (YoY).
Valecha Engineering: Q1 loss at Rs 16.21 crore versus loss Rs 13.95 crore; revenue 39.37 crore versus Rs 79.61 crore (YoY).
Amtek Auto: Q2FY18 loss at Rs 10,652.17 crore versus loss Rs 755.18 crore; revenue 343.62 crore versus Rs 497 crore (YoY).
Infosys opens North Carolina Technology and Innovation Hub
Mahanagar Gas: BG Asia Pacific launches book to sell 14 percent stake in company; floor price set at Rs 851 per share, 5.7 percent discount to closing price - CNBC-TV18.
GlaxoSmithKline Consumer: Company calls for bids for sale Horlicks business by mid-September, launches sale process of Horlicks worth over $4 billion - CNBC-TV18 sources.
Texmo Pipes & Products: Company to consider re-appointment of Sanjay Kumar Agrawal as MD
GE Power: Company has been selected by BHEL for supply of 1 6F.03 turbine & a generator; turbine & generator will be installed at HPCL’s refinery at Vizag in India.
BPCL: Hydrocracker unit at Mumbai refinery to shut down; period of shut down being assessed.
Navneet Education: Board approved buyback up to 46.8 lakh fully paid up equity shares of company at price of Rs 160 per share.
IDBI Bank: The bank sold 15.6 lakh equity shares constituting 3.90 percent of the paid up capital of National Securities Depository (NSDL) on August 21, 2018.
UltraTech Cement: Competition Commission of India has approved the scheme of arrangement amongst Century Textiles and the company and their respective shareholders and creditors for the acquisition of the cement business of Century.
Welspun Corp: Company entered into an agreement for supply of 56 KMT of pipes for oil & gas project in the America. With this addition, its current order book stands at 1,605 KMTs valued at Rs 12,000 crore.
Nestle India: Company partners with Flipkart to launch MAGGI Special Masala noodles.
Adani Green Energy: Company has subscribed to 80 percent equity share capital of Adani Phuoc Minh Wind Power Company, Vietnam. Company has signed subscription agreement for subscription of 5,100 shares of Adani Solar USA Inc constituting 51 percent of the total number of shares of Adani Solar USA Inc.
DHFL: Company proposes to issue secured redeemable non-convertible debentures amounting to Rs 500 crore plus a greenshoe option of upto Rs 500 crore on private placement basis.
Granules India: US FDA has approved the abbreviated new drug application (ANDA) for Ranitidine tablets and Cool Mint (OTC).
Peninsula Land: Company has further entered into agreements for acquiring indirect control over the special purpose vehicles (SPVs) namely - Goodhome Realty (GRL), Rockfirst Real Estate (RREL), RR Mega City Builders (RRMCBL) and Truewin Realty (TRL), through investment in the units of PReF Indigo Scheme floated by Peninsula Realty Fund (PRF).
Shipping Corporation of India: SCI has given physical delivery of its one LPG carrier 'Annapurna', to its buyer on 'as is where is' basis.
Sterlite Technologies: ICRA has upgraded its rating on the non-convertible debenture programme and long-term rating for the line of credit (LOC) of the company to AA from AA-, and reaffirmed its A1+ rating on the company's commercial paper programme.
Strides receives acceptance from USFDA for two key ANDAs under newly introduced Competitive Generic Therapy
Bodal Chemicals: Company purchased new office building in Ahmedabad.
ITI: ITI has received letter of intent for Maharashtra State Government for execution of project for value of Rs 2,658 crore for two packages.
Reliance Capital's gross premium up 23% in Q1FY19
LG Balakrishnan's board meeting on August 30 to consider divesting stake from JV and to consider & explore the potential acquisition of allied auto components business opportunities
Nandan Denim: ICRA revised rating on company's term loan to A Outlook - Negative from A Outlook - Stable; cash credit / EPC / FBD to A / A1 Outlook - Negative from A / A1 Outlook - Stable; and letter of credit / bank guarantee / forward contract to A1 Outlook - Negative from A1 Outlook - Stable.
Mahindra Holidays through its step down subsidiary, has increased its stake in Holiday Club Resorts Oy, Finland (HCR) by acquiring additional 1.14% stake
Dynamic Cables: Company has bagged orders of Rs 80 crore from two of the top EPC companies of India, for use in their various EPC projects execution under 'Saubhagya' Pradhan Mantri Sahaj Bijli Har Ghar Yojana.
Info Edge has invested through its wholly-owned subsidiary about Rs.2.64 Cr. in Medcords Healthcare Solutions
Uday Jewellery Industries: Company commenced manufacturing activities in new premises taken on lease by enhancing its manufacturing capabilities.
Jet Airways clarified that company has not received any communication from MCA on reports of fund siphoning
Uflex launched new holographic packs for Fresco
Prataap Snacks approved strategic investment in Avadh Snacks
Source  -

Wednesday, 22 August 2018

10 stocks that corrected by up to 30% from their 52-week highs and could return up to 65%

After June quarter earnings, Motilal Oswal has come out with a list of 10 midcap stocks that have fallen by up to 30% and could now return up to 65% in the next one year

The week started on a strong note as the Nifty climbed to new heights on Monday and the Midcap index traded in line with benchmark indices, driven by long build-ups and short covering.
The recovery in the rupee and firm global cues on likely talks between US and China to ease trade tensions boosted investor sentiment.
"Markets are on steroids defying gravity with very strong buying momentum from DIIs and FIIs. The FIIs who have been net sellers till H1CY18 have turned net buyers providing much needed aggressive push to Indian markets," Jagannadham Thunuguntla, Senior Vice President and Head of Research (Wealth), Centrum Broking, told Moneycontrol.
Thunuguntla said that the recently-concluded earnings season has confirmed that Indian corporate earnings have become robust (even though hiccups from PSU banks remain).
But if one were to look at the performance of both indices on a year-to-date (YTD) basis, they will find that unlike large-cap stocks, which drove Sensex and Nifty to their highest-ever points, mid-cap stocks just haven't been performing up to speed.
The Sensex and Nifty have risen by around 12 percent and 9 percent, respectively, so far this year. The BSE Largecap, BSE100, BSE200 and BSE500 indices are all up 3-8 percent for the calendar.
On the contrary, despite recovering from its 2018 lows, the BSE Midcap index is still down 8 percent for the calendar.
Undervaluation of stocks and earnings recovery were the primary reasons behind the index recovering from its lows. But for stocks that are still under pressure and quite far from their 52-week highs, the weakness stems from fundamental underperformance and overvaluation. These companies will have to report even better earnings performance to quickly recover.
Half of the BSE Midcap index's constituent stocks are still in the red for this year. Of the lot, more than 40 stocks are down between 10-90 percent, while only 19 stocks are up 10-60 percent.
Every expert on the Street agreed that the sell-off in mid-cap and small-cap stocks was warranted as these indices had surged 47 percent and 57 percent, respectively, in 2017.
Despite having fallen that much, most of these stocks are still highly valued, considering their earnings for the June quarter. Experts said that if earnings recovery does not take place in next few quarters, these stocks could fall further.
"I do not know about prices, but feel that most midcaps and smallcaps are still highly overvalued. If the earnings do not grow aggressively this year, there could be a further correction in prices," Raghvendra Nath, Managing Director, Ladderup Wealth Management, told Moneycontrol.
After June quarter earnings, Motilal Oswal has come out with a list of top 10 midcap stocks, which have fallen by up to 30 percent, and could now return up to 65 percent in next one-year period.

Among the list of stocks was Petronet LNG, which corrected 21 percent from its 52-week high, and could now return 43 percent.
"Dahej continued over utilisation despite the fact that LNG prices had almost doubled YoY. We expect the same to continue. Kochi terminal's utilization would increase as Kochi refinery stabilizes and Kochi-Mangalore pipeline gets completed. Dahej would get further boost when it's expansion from 15mmtpa to 17.5mmtpa completes early next calendar year," Motilal Oswal said.
Another stock, which comes under the FMCG basket, is Emami. The stock, which is the top pick in consumer space, is expected to rally 16 percent to Rs 665.
The reasons to pick this stock among mid-caps are (a) normalisation of wholesale trade where Emami's share is higher than peers, due to which its pace of earnings growth over a low base is likely to be very strong (b) likely healthy growth in existing categories, where it has a dominant market share and (c) best-of-breed R&D and A&P resulting innovative products backed by strong marketing.
Emami's Q1 earnings missed analysts' estimates on all accounts. Domestic volumes grew just 18 percent YoY (on a low base of an 18 percent fall last year) and EBITDA margin expanded 490 bps YoY.
Of the 10 stocks on Motilal Oswal's list, RBL Bank has fallen the least, having declined only 3 percent from its 52-week high due to its strong business performance.
"NIM's expanded 6 bps QoQ (one of the very few banks to report NIM expansion) which coupled with strong fee growth enabled inline earnings. RBL further provided on its MFI portfolio taking the PCR up by 284 bps QoQ to 60.4 percent even as the credit cost in rest of the portfolio has moderated," Motilal Oswal said.
RBL guided for further provisions toward the balance one-third stressed MFI loans over Q2/Q3; bank guided for 1.5 percent return on assets for FY20E and 40-45bp of tier 1 capital consumption per quarter.
The research house expects the stock to rally 14 percent to Rs 650.
Among others are JSPL, Tata Chemicals, Mindtree, Oberoi Realty, CG Consumer, TeamLease Services and MCX.

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