Stocks To Watch
Reliance Industries in talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in recent weeks, Bloomberg reported quoting people familiar with the matter.
HCL Technologies to launch Global Delivery Centre in Connecticut, USA with anchor client, Stanley Black & Decker.
Siti Networks: Brickwork Ratings downgraded the company’s long-term bank loan facilities worth Rs 883.46 crore to BWR D from BWR BB (negative). The downgrade was due to the delays in debt servicing.
Den Networks, TV18 Broadcast, Hathway Cable & Datacom: Board approved the merger scheme of the afore-mentioned companies into Network18 Media & Investments.
Avenue Supermarts promoter sold 1.48 crore shares (2.28 percent) in pubic via OFS. Promoter holding now stands at 74.99 percent of the total paid-up capital of the company.
Infosys has partnered with GE Appliances for digital solutions.
Bharat Road Networks said that application has been filed against the company by ILFS before NCLT claiming a sum of Rs 70 crore. The company stated that it has an outstanding of Rs 139.02 crore against the ILFS group for which they have initiated the recovery proceedings.
Balkrishna Industries: HDFC MF decreased its stake from 8.06% to 5.99% on February 17.
Future Consumer promoters hold 46.29 percent stake in the company, out of which 89.1 percent is pledged.
Tata Consumer Products (Tata Global Beverages) sold 7.05 lakh shares (0.28 percent) and Tata Chemicals sold 1.6 lakh shares (0.06 percent) to promoter Tata Sons, respectively on Feb. 18.
Ruchi Soya Industries: SBI Cap Trustee on behalf of lenders increased its stake from 50.7 percent to 98.87 percent in the company on encumbrance via pledge on Feb. 17.
Quess Corp approved merger 4 wholly-owned arms with self.
Brokerage Radar
Emkay on Jindal Stainless
Maintained ‘Hold’; raised price target to Rs 79 from Rs 78.
Co reported in line set of earnings.
Higher than expected raw material cost offset better than expected topline.
At 3.7x Sep-21E EV/Ebitda, stock seems fairly valued.
Citi on Biocon
Maintained ‘Buy’; raised price target to Rs 360 from Rs 350
Revise our EPS estimated for the current and the next financial year at 9.6 percent and 3.8 percent respectively.
An interesting play on the global biosimilars opportunity.
Expect EM sales to lead growth for biopharma business.
On LIC Housing
Emkay
Maintained ‘Sell’ with a price target at Rs 371.
Maintain estimates.
Despite clear denial from managements, markets do assign some merger probability
LIC may be required by the regulator to conduct all lending business through a single entity
Reduction in promoter stake in IDBI Bank would be more convenient after the merger
Government's intention of selling the existing stake in IDBI Bank adds further weightage to the merger possibility
Synergies attached to the merger are higher than what the market is anticipating
Morgan Stanley
Maintain ‘Equal-Weight’; cut price target to Rs 400 from Rs 440.
LIC Housing Finance and IDBI Bank have denied merger plans.
Lack of compliance with RBI norms will remain an overhang.
Yet a merger wouldn't be easy to execute either.
Not moving to UW – we think a merger is not a straightforward conclusion.