Stocks that are likely to be in the limelight are Motherson Sumi Systems, Bharat Forge, Dabur India, GMR Infrastructure, Sequent Scientific, Tree House Education and Accessories, Reliance Communications, Zee Learn, Sterlite Technologies, Havells India, Adani Ports and Special Economic Zone.
Stocks that likely to be in limelight are:
Morgan Stanley view on Motherson Sumi Initiate coverage with an Underweight rating. See 20 percent downside risk on earnings. Target price of Rs 238. Aggressive margin expansion expectations unlikely to be met. Regional mix weakens China's share declines. Cost should remain elevated next year with 18 upcoming plants. Pricing pressure to intensify. Pricing pressure as Volkswagen contributes 44 percent to company's topline.
Morgan Stanley view on Bharat Forge Cut rating to Equalweight from Overweight.Lower FY16 earnings estimate by 12 percent. Lower FY17 earnings estimate by 22 percent. Target price of Rs 849. Topline headwinds more intense than street expects after 6 years of growth. Class 8 truck volumes to decline for 2 years. Shale gas-related capex could slow further.
Dabur India estimates juice sales to decline by 10-15 percent in third quarter year on year. Dabur says no improvement in eco-political situation in Nepal. India-Nepal border continues to remain closed. Analysts: Q3 revenue likely to see impact of Rs 40-50 crore. Analysts: Juice production to be at 80 percent of normal if Nepal remains closed. Production in other facilities like Sri Lanka & Rajasthan to be ramped up.
GMR Infra board to meet to decide mode and terms of fund raising. Plans to raise up to Rs 2,500 crore. To raise funds via equity shares, GDR, ADR or FCCB. GMR Infra has already raised Rs 2,800 crore since July 2014 via QIP & rights issue. Debt as of September 2015: Rs 42,000 crore. Analysts see little appetite for fund raising in the domestic market.
Sequent Scientific subsidiary, Alivira, acquires 3 European animal health comapnies. Forays into the animal health market in Europe with this acquisition. Acquires N-Vet AB in Sweden and also acquires Fendigo SA in Belgium & Luxembourg. Acquires Fendigo BV in Netherlands. Combined sales of 3 acquired companies at USD 10 million in 2014. Combined EBITDA Margin of 3 acquired cos at 13 percent. Management says: Acquisition will be EPS accretive. It has acquired 85 percent in 3 companies.
Tree House promoters Geeta & Rajesh Bhatia sell 9.5 percent stake. Geeta Rajesh Bhatia sold 24.7 lakh shares at Rs 200.50/share. Rajesh Doulatram Bhatia sold 15.3 lakh shares at Rs 200.50/shares. Promoter stake goes down to 20.5 percent from 29.9 percent in September 2015. Promoters raise Rs 80.2 crore via sale of shares.
Reliance Communication Big delivery volumes; 2x 10-day average. Set to announce tower sale deal on Sunday.
Zee Learn delivery volumes of 10 lakh shares versus 10-day average of 62,000.
Sterlite Tech delivery volumes of 16 lakh shares versus 10-day average of 2.3 lakh.
The other stocks in the news are Havells and Adani Ports.
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First Published on Dec 4, 2015 08:45 am