Stocks in the news: Nestle India, Vodafone Idea, DHFL, Polycab India and Endurance Technologies
ICICIdirect has downgraded PVR to hold and has a target price of ₹1,910 on it.
Nestle India, Pidilite Industries: Nestle India, Endurance Technologies, Pidilite Industries, Siemens, Polycab India, PTC India, UCO Bank, Zee Media, Union Bank, Edelweiss Financial Services and IIFL Holdings are among a few companies which will reports Q4 earnings today.
GVK Infra: South Africa’s Bidvest Group has asked the Delhi High Court to direct GVK Airport Holdings to prove that it has the Rs 1,250 crore needed to acquire the stake held by the overseas investor in Mumbai International Airport Ltd (MIAL).
Vodafone Idea: The telecom operator’s net loss narrowed to Rs 4,878.3 crore in the fourth quarter, helped by a tax refund and lower expenses, as service revenue inched up after 11 quarters of declines, indicating that the worst may be over.
Bharti Airtel: Bharti Telecom, the holding company of Bharti Airtel, plans to raise ₹3,100 crore through bond sales and will use it to invest in the ongoing ₹25,000-crore rights issue of India’s second-largest telcom operator.
Sun Pharma: A US lawsuit named several senior executives of generic drug companies (only through initials), including senior sales manager at Sun Pharma and president of Sun Pharma in drug industry cartelisation case. Sun Pharma’s US arm Taro is named among the list of 20 drug makers.
Inox Leisure: India’s second largest multiplex chain said it has added 85 new screens organically in FY19, the highest in the category, while remaining debt free at the net level.
DHFL: Rating Agency Crisil has downgraded ₹850-crore worth of commercial paper of troubled lender Dewan Housing Finance Corporation (DHFL) due to delays in fund inflows from asset sales and securitisation deals.
Godrej Industries: The diversified firm Godrej Industries reported a consolidated profit after tax (PAT) of Rs 423.65 crore for the quarter ended March 2019.
Oriental Bank: Public sector Oriental Bank of Commere (OBC) on Monday posted a net profit of ₹201.5 crore for the January-March quarter of the last fiscal, helped by a fall in bad loans, arrest of fresh slippages and a healthy growth in the retail loan portfolio.
Muthoot Finance: Major gold finance company Muthoot Finance recorded 11 per cent increase in net profit YoY for FY19 at Rs 1,972 crore. The loan assets for the year stood at Rs 34,246 crore, 18 per cent rise over previous year.
NIIT Tech: IT firm NIIT Technologies said it has concluded the sale of its stake in ESRI India Technologies. In its April notification, NIIT Tech had said the total consideration of the deal will be Rs 89.7 crore.
NBCC: The company decided against diluting certain conditions, including exemption from tax liability, in its revised offer for debt-laden Jaypee Infratech even as lenders have flagged serious concerns about the state-owned firm's conditional bid, sources said.
New India Assurance: State-owned general insurer New India Assurance Co reported a loss of Rs 270.52 crore in the fourth quarter of fiscal ended March 31.
Pennar Industries: Pennar Group said it won orders worth Rs 311 crore in April across various business verticals. The group's flagship company Pennar Industries Ltd (PIL) received multiple orders aggregating Rs 173 crore across its business verticals.
United Bank of India: State-owned United Bank of India reported a net profit of Rs 95.18 crore for the quarter ended March 2019 after seven quarters of consecutive losses.
Andhra Bank: The bank reported narrowing of loss to Rs 1,233.61 crore for the fourth quarter ended March 31, mainly on account of reduction in non-performing assets.
Board meetings (Full list)
• ICICIdirect has downgraded PVR to hold and has a target price of ₹1,910 on it. The multiplex industry continues to be in a sweet spot as content continues to perform well while some major issues of higher GST for tickets and public outcry on higher F&B prices seem to be behind now, said ICICIdirect. PVR remains a key beneficiary of such structural tailwinds, it added.
• Antique Stock Broking has maintained hold rating on South Indian Bank with a target price of ₹16. With net stress loans at 5.4% of loans and weak core profitability, South Indian Bank in a tough spot and turnaround in earnings is likely to be a long journey, it said. The brokerage expects RoA to gradually improve to 0.6% by FY21. While valuations are reasonable at 0.5 times FY21 book value, the bank lacks structural triggers for a re-rating, said Antique.
• IIFL has a buy rating on Larsen & Toubro with a target price of ₹1,783. L&T ticked all boxes in FY19, despite the challenging liquidity environment and cost headwinds in Infra, said IIFL. An RoE and cash flow focused approach has further strengthened its balance sheet, which will, aptly, be utilised for the execution of complex and large projects, it added. As core earnings gear for 25-30% CAGR over FY19-21, led by a strong order book of ₹2,934 billion, valuations at 19 times FY21 core EPS are attractive, it added.
• CLSA has maintained sell rating on Voltas and revised target price to ₹487 from ₹500. Voltas' Q4 EBITDA missed estimate by 40% with disappointment in both unitary cooling products and its project business, said CLSA. The current market price implies 40 times multiple for UCP segment core profit, which is expensive, it said. With other income forming 26% of its FY19 PBT, current multiples are not sustainable, said CLSA.
• Morgan Stanley has an overweight rating on Cyient with a target price of ₹720. The firm believes that the stock lacks near-term triggers because first quarter performance could be volatile. However,valuation is cheap and Street expectations have already come down, said Morgan Stanley. F urther optionality of successful execution in business transition from services-led to solutions-led make riskreward favourable, it said.