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Stocks To Watch: Divi’s Labs, HDIL, HCL Tech, Sun Pharma, HMT

  • HDIL to divest 60 percent stake in Ravijyot Finance and Leasing.
  • Divi’s Labs says USFDA removes import alert on Visakhapatnam unit 
  • Laurus Labs gets EIR from USFDA for AP plant.
  • Ujjivan Financial Services says reports of acquisition by another bank are incorrect.

Indian equity benchmarks closed at a three-week low after accelerating inflation tempered expectations of a rate cut by the Reserve Bank of India next month.

The S&P BSE Sensex declined 0.3 percent to 32,941 while the NSE Nifty 50 Index lost 0.4 percent to 10,186.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.4 percent to 10,189 as of 7:00 a.m.

Here are the stocks to watch out for in Wednesday’s session:

  • Divi’s Labs: Says USFDA removes import alert on Visakhapatnam unit
  • HDIL: To divest 60 percent in Ravijyot Finance and Leasing.
  • Lupin: USFDA warning letter lists repeat observations for Indore and Goa plants.
  • Laurus Labs: Gets establishment inspection report (EIR) from USFDA for AP plant.
  • HCL Technologies: Signs a 5-year I.T. infrastructure services contract with Jardine Lloyd Thompson Group.
  • Ujjivan Financial Services: Clarifies that reports of acquisition by another bank are incorrect.
  • L&T Infotech: To acquire Luxembourg-based Syncordis S.A. and Syncordis India for 15 million euros.
  • Fortis Healthcare looks to buy RHT Heath Trust for a combined enterprise value of approximately Rs 4,650 crore.
  • Religare Enterprises: Malvinder Singh Quits As Chairman

F&O Setup

  • Nifty November futures closed at 10,233.6, premium of 47.6 points versus 44 points.
  • November contracts: Nifty open interest down 5 percent; Bank Nifty open interest down 2 percent.
  • India VIX closed 0.8 percent higher at 14.1.
  • Max open interest for November series at 10,500 Call (open interest at 56.3 lakh, up 2 percent).
  • Max open interest for November series at 10,200 Put (open interest at 45.8 lakh, down 7 percent).

F&O Ban

  • In ban: DHFL, HDIL, Indiabulls Real Estate, India Cement, Infibeam, Jain Irrigtation, JP Associates, JSW Energy, Just Dial, Kaveri Seed.
  • New in ban: Kaveri Seed.
  • Out of ban: Jet Airways.

Only intraday positions can be taken in stocks which are in F&O ban. In case of rollover of these intraday positions, there is a penalty.

Active Stock Futures

Bulk Deals

  • Indoco Remedies: KIFS Enterprises net bought 2.98 lakh shares or 0.3 percent stake at Rs 266.38 each.
  • eClerx Services: Royal Bank of Scotland sold 2.88 lakh shares or 0.7 percent stake at Rs 1270 each.
  • Websol Energy System: India Max Investment Fund sold 1.47 lakh shares or 0.6 percent stake at Rs 111.55 each.
  • Khadim India: Kiduja India bought 2 lakh shares at Rs 730 each.

Bharti Infratel

  • Nettle Infrastructure Investment sold 8.3 crore shares or 4.5 percent stake at Rs 400.4 each (average).
  • UBS Principal Capital Asia bought 1.7 crore shares or 0.9 percent stake at Rs 400 each.
  • Harris Insight Emerging Markets Fund bought 1.47 crore shares or 0.8 percent stake at Rs 399.98 each.

Earnings Reactions To Watch

Bank of Baroda (Q2FY18, YoY)

  • Net interest income up 8.6 percent at Rs 3720 crore.
  • Net profit down 35.6 percent at Rs 355.4 crore.
  • NIM at 2.68 percent versus 2.48 percent (QoQ).
  • GNPA at 11.16 percent versus 11.40 percent (QoQ).
  • NNPA at 5.05 percent versus 5.17 percent (QoQ).

Gail (Q2FY18, YoY)

  • Revenue up 9 percent to Rs 12,410 crore.
  • Profit up 28 percent to Rs 1,310 crore.
  • EBITDA up 9 percent to Rs 2,069 crore.
  • Margin at 16.7 percent versus 16.7 percent.

IndiaBulls Real Estate (Q2FY18, YoY)

  • Revenue up 1.5 percent at Rs 722 crore.
  • Profit down 24 percent at Rs 108 crore.
  • EBITDA up 72 percent at Rs 299.5 crore.
  • Margin at 41.5 percent versus 24.5 percent.

Merck (Q2FY18, YoY)

  • Revenue up 16 percent at Rs 313 crore.
  • Profit up 12 percent at Rs 32 crore.
  • EBITDA up 23.9 percent at Rs 57 crore.
  • Margin at 18.2 percent versus 17.1 percent.

Ceat (Q2FY18, YoY)

  • Revenue up 7 percent at Rs 1,523 crore.
  • Profit down 28 percent at Rs 76.6 crore.
  • EBITDA down 5.9 percent at Rs 175 crore.
  • Margin at 11.5 percent versus 13 percent.

MOIL (Q2FY18, YoY)

  • Revenue up 46.4 percent at Rs 287 crore.
  • Profit up 123 percent at Rs 92.7 crore.
  • EBITDA up 547 percent at Rs 116.5 crore.
  • Margin at 40.6 percent versus 9.2 percent.

Godrej Industries (Q2FY18, YoY)

  • Revenue up 11 percent at Rs 2,465 crore.
  • Profit up 53 percent at Rs 95 crore.
  • EBITDA up 34 percent at Rs 220.5 crore.
  • Margin at 8.9 percent versus 7.5 percent.

NLC India (Q2FY18, YoY)

  • Revenue down 3 percent at Rs 1,993 crore.
  • Profit up 9 percent at Rs 327 crore.
  • EBITDA up 32 percent at Rs 817 crore.
  • Margin at41 percent versus 30.2 percent.

Infibeam (Q2FY18, QoQ)

  • Revenue up 9 percent at Rs 202 crore.
  • Profit up 18.75 percent at Rs 19 crore.
  • EBITDA up 17 percent at Rs 27 crore.
  • Margin at 13.4 percent versus 12.4 percent.

Solar Industries (Q2FY18, YoY)

  • Revenue up 30.35 percent at Rs 408 crore.
  • Profit up 24.3 percent at Rs 46 crore.
  • EBITDA up 33 percent at Rs 87 crore.
  • Margin at 21.3 percent versus 20.9 percent.

Honeywell (Q2FY18, YoY)

  • Revenue up 16 percent at Rs 673 crore.
  • Profit up 64 percent at Rs 74 crore.
  • EBITDA up 56 percent at Rs 107.5 crore.
  • Margin at 16 percent versus 12 percent.

MRPL (Q2FY18, QoQ)

  • Revenue down 11 percent at Rs 9,096 crore.
  • Profit up 104 percent at Rs 478 crore.
  • EBITDA up 56 percent at Rs 908 crore.
  • Margin at 10 percent versus 5.7 percent.

JP Associates (Q2FY18, YoY)

  • Revenue down 36 percent at Rs 842 crore.
  • Net loss of Rs 186.5 crore versus loss of Rs 781 crore.
  • EBITDA at Rs 38 crore versus loss of Rs 86 crore.
  • Margin at 4.5 percent versus -6.5 percent.

Dixon Technologies (Q2FY18, YoY)

  • Revenue up 19 percent at Rs 879 crore.
  • Profit up 31.25 percent at Rs 21 crore.
  • EBITDA up 24.6 percent at Rs 35.5 crore.
  • Margin at 4.0 percent versus 3.9 percent.

Kwality (Q2FY18, YoY)

  • Revenue up 8.5 percent at Rs 1,671 crore.
  • Profit down 50 percent at Rs 21 crore.
  • EBITDA up 13.6 percent at Rs 117 crore.
  • Margin at 7 percent versus 6.7 percent.

Sun Pharma (Q2FY18, YoY)

  • Revenue down 19 percent at Rs 6,650 crore.
  • Profit down 59 percent at Rs 912 crore.
  • EBITDA down 56 at Rs 1,375 crore versus Rs 3,168 crore.
  • Margin at20.7 percent versus 38.3 percent.

NBCC (Q2FY18, YoY)

  • Revenue down 13.5 percent at Rs 1,328 crore.
  • Profit up 14 percent at Rs 78.6 crore.
  • EBITDA up 15 percent at Rs 85 crore.
  • Margin at 6.4 percent versus 4.8 percent.

Reliance Capital (Q2FY18, YoY)

  • Revenue from operation up 7 percent at Rs 5,243 crore.
  • Net interest income up 3 percent at Rs 4,255 crore.
  • Profit up 39 percent at Rs 352 crore.
  • Profit from associates at Rs 57 crore.

Aashiana Housing (Q2FY18, YoY)

  • Revenue down 6 percent at Rs 108.5 crore.
  • Profit up 9.5 percent at Rs 23 crore.
  • EBITDA up 17.3 percent at Rs 30.5 crore.
  • Margin at 28.1 percent versus 22.6 percent.

JK Tyres (Q2FY18, YoY)

  • Revenue up 7 percent at Rs 2,058 crore.
  • Profit down 82.6 percent at Rs 17.4 crore.
  • EBITDA down 46 percent at Rs 196 crore.
  • Margin at9.5 percent versus 18.9 percent.

Indo Count (Q2FY18, YoY)

  • Revenue down 14.4 percent at Rs 493 crore.
  • Profit down 43 percent at Rs 36 crore.
  • EBITDA down 38 percent at Rs 72 crore.
  • Margin at14.6 percent versus 20.1 percent.

MTNL (Q2FY18, YoY)

  • Revenue down 12 percent at Rs 642 crore.
  • Net loss of Rs 730.6 crore versus loss of Rs 768 crore.
  • EBITDA loss at Rs 247 crore versus loss of Rs 279 crore.
  • Margin at -38.4 percent versus -38.3 percent.

MEP Infra (Q2FY18, YoY)

  • Revenue down 8.5 percent at Rs 409 crore.
  • Profit down 89 percent at Rs 6.55 crore.
  • EBITDA down 44.5 percent at Rs 186 crore.
  • Margin at 45.5 percent versus 74.9 percent.

Eros Media (Q2FY18, YoY)

  • Revenue down 44 percent at Rs 268 crore.
  • Profit down 12.7 percent at Rs 55 crore.
  • EBITDA down 8 percent at Rs 82.5 crore.
  • Margin at 30.8 percent versus 18.8 percent.

Corporation Bank (Q2FY18, YoY)

  • Net interest income down 1.3 percent at Rs 1,239.5 crore.
  • Net loss of Rs 1,035 crore versus profit of Rs 206 crore.
  • Provisions for NPA up 68 percent at Rs 2,536 crore (QoQ).
  • GNPA at 15.28 percent versus 15.49 percent (QoQ).
  • NPA at 10.24 percent versus 11.14 percent (QoQ).

Anant Raj (Q2FY18, YoY)

  • Revenue up 0.9 percent at Rs 113 crore.
  • Profit down 58 percent at Rs 9 crore.
  • EBITDA down 19 percent at Rs 27.5 crore.
  • Margin at 24.3 percent versus 30.4 percent.

India Tourism Development Corporation (Q2FY18, YoY)

  • Revenue down 4 percent at Rs 71 crore.
  • Net loss of Rs 8 crore versus loss of Rs 3 crore.
  • EBITDA loss at Rs 14 crore.
  • Margin at -19.7 percent versus 7.4 percent.

Gitanjali Gems (Q2FY18, YoY)

  • Revenue down 4.4 percent at Rs 3,789 crore.
  • Profit up 36 percent at Rs 64.5 crore.
  • EBITDA down 39 percent at Rs 123 crore.
  • Margin at 3.2 percent versus 5.1 percent.

Results Today

  • CARE Ratings
  • Somany Ceramics
  • TD Power Systems
  • Wonderla Holidays
  • Digjam
  • Automotive Axles
  • Empee Distilleries
  • Golden Tobacco
  • HMT
  • KS Oils
  • The New India Assurance Company
  • Sumeet Industries
  • Universal Cables

Brokerage Radar

  • Sun TV: Antique initiated ‘Buy’ with price target of Rs 1,070; implying a potential upside of 25 percent from yesterday’s close.
  • IPCA Laboratories: Credit Suisse maintained ‘Neutral’ with price target of Rs 550.

Eicher Motors

  • Deutsche Bank maintained ‘Buy’; Cut price target to Rs 33,750 from Rs 34,000.
  • Credit Suisse maintained ‘Underperform’; hiked price target to Rs 26,600 from Rs 25,600.

Cadila Healthcare

  • CLSA downgraded to ‘Underperform’ from ‘Buy’; Cut price target to Rs 480 from Rs 580.
  • Credit Suisse maintained ‘Neutral’ with price target of Rs 465.
  • Prabhudas Lilladher maintained ‘Accumulate’ with price target of Rs 519.

Sun Pharma

  • CLSA maintained ‘Sell’; hiked price target to Rs 390 from Rs 370.
  • Credit Suisse maintained ‘Outperform’ with price target of Rs 595.

GAIL (India)

  • CLSA maintained ‘Sell’ with price target of Rs 405.
  • Citi maintained ‘Neutral’; hiked price target to Rs 510 from Rs 423.

Bank of Baroda

  • Morgan Stanley maintained ‘Equal-weight’ with price target of Rs 170.
  • UBS maintained ‘Buy’; hiked price target to Rs 230 from Rs 220.

Media Reports

  • Automation to kill 70 percent of IT jobs (Business Line).
  • Govt floats news rules on building, repairing ships to boost quality, safety (Business Line).
  • Molasses price falls 45 percent in North (Business Standard).
  • KKR In Talks To Sell Aricent Stake in $1.5 Billion Deal (Mint).
  • NCLT Admits Bank’s Plea Against Moser Baer Solar ( Financial Express).
  • 5Paisa Capital of IIFL Group will list on November 16 (Economic Times).
  • Kotak Life has no listing plans in the next six quarters (Economic Times).
  • RIL has prima-facie not complied with CBM clause (Economic Times).
  • Lenders ask NBCC to develop defaulters’ land (Economic Times).

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