On Aurobindo Pharma

Citi

• Maintained ‘Buy’; hiked price target to Rs 890 from Rs 840.
• March quarter was in line; Sandoz's U.S. generic acquisition on track.
• Ebitda margin impacted by recalls and failure to supply penalties.
• Management tried to diffuse some concerns regarding the impact of recent OAIs.

HDFC Securities

• Upgraded to ‘Buy’ from ‘Neutral’; maintained price target at Rs 800.
• Upgrade owing to attractive valuations after the recent fall in stock price.
• Believe concerns are misplaced as only five to six products are dependent on these plants.
• With high visibility of FY21 earnings per share at Rs 53.2 due to Sandoz acquisition, we see this as good entry point.

CLSA

• Upgraded to ‘Buy’ from ‘Outperform’; cut price target to Rs 830 from Rs 850.
• Upgrade to buy on attractive valuations.
• U.S. continues to grow well despite a high base.
• Focus on integration of acquisitions over next two years.

On Cadila Healthcare

Macquarie

• Maintained ‘Outperform’; cut price target to Rs 340 from Rs 372.
• New launches to offset Moraiya hit.
• Cut EPS estimates for the current and the next financial year by 13 percent and 12 percent respectively to factor in OAI for Moraiya.
• Stock is down 25 percent, see this as a buying opportunity.

CLSA

• Maintained ‘Sell’ with a price target of Rs 250.
• In-line operationally, net profit beat driven by higher other income.
• U.S. sales declined QoQ and likely to be under pressure in 2019-20.
• Classification of Moraiya plant by U.S. FDA over the next three months will be keenly watched out for.

More Calls

Macquarie on United Spirits

• Maintained ‘Neutral’ with a price target of Rs 583.
• March quarter results were below expectations; Overall volume growth at 2 percent.
• Refrain from extrapolating March quarter numbers as pricing and volume to increase.
• United Spirits has levers to cut operating cost in the medium term.

CLSA on Mahindra & Mahindra

• Downgraded to ‘Underperform’ from ‘Buy’; cut price target to Rs 690 from Rs 850.
• March quarter was weak but better than estimates.
• Tractor industry demand coming under pressure.
• Sharp fall in legacy SUV volumes eating into the benefit of new launches.

CLSA on Lemon Tree

• Maintained ‘Buy’ with a price target of Rs 89.
• Occupancy remains strong, but ADR growth disappoints at 4 percent.
• Pipeline of managed rooms was strong, continuing its focus on a shift to an asset-light model.
• See multiple growth and profitability triggers ahead.

CLSA on Power Grid

• Maintained ‘Outperform’ with a price target of Rs 217.
• Net profit growth for the previous financial slows as HVDC project scheduled for the second half is delayed.
• Earnings slowdown ahead as capitalisation peaked.
• Large thermal generation and green corridor capex pick-up critical.

CLSA on Havells India

• Maintained ‘Outperform’; cut price target to Rs 780 from Rs 815.
• Delayed summer season and low government spending drive earnings miss.
• Cables margin steady and lighting revenue growth strong.
• Lloyd’s backward integration to drive margin expansion.

• DCM ex-date for demerger.
• IIFL Holdings ex-date for spin-off.
• J.Kumar Infraprojects, Manpasand Beverages, MIRC Electronics , Sundaram Brake Linings to move into short term ASM Framework.
• Indiabulls Venture to move out of short term ASM Framework.
• Adhunik Industries to move into ASM Framework.
• Camlin Life Sciences price band revised to 10 percent.
• 5paisa Capital price band revised to 5 percent.

Nifty Earnings To Watch

• Coal India
• Oil & Natural Gas Corporation

Other Earnings To Watch

• Ujjivan Financial Services
• IDBI Bank
• Berger Paints
• National Aluminium Company
• Entertainment Network
• Ahluwalia Contracts
• Prabhat Dairy
• Pricol
• Infibeam Avenues
• Jindal Poly Films
• Sadbhav Engineering
• Shivalik Rasayan
• Suzlon Energy
• Greenply Industries
• Alkem Laboratories
• Apollo Hospitals Enterprise
• Ashapura Minechem
• Avon Lifesciences
• Munjal Showa
• Uniply Industries
• Unitech
• Bajaj Healthcare
• Bharat Dynamics
• Bharat Gears
• Bharat Rasayan
• Binani Industries
• Cox & Kings
• Deepak Fertilisers & Petrochemicals
• Dredging Corporation of India
• Essar Shipping
• Everest Kanto Cylinder
• Forbes & Company
• GMM Pfaudler
• Godfrey Phillips
• Sundaram Finance
• Greenlam Industries
• Gujarat Apollo Industries
• HCL Infosystems
• Hinduja Global Solutions
• IL&FS Investment Managers
• Jindal Worldwide
• KNR Constructions
• Mahanagar Telephone Nigam
• Mcleod Russel
• Mcnally Bharat Engineering
• Mirza International
• MMTC
• Nath Bio-Genes
• NCL Industries
• NLC India
• Omkar Speciality Chemicals
• Panacea Biotec
• Reliance Infrastructure
• Signet Industries
• Vipul
• Sonata Software
• Steel Authority of India
• Sumeet Industries
• Tide Water Oil Company
• TTK Healthcare
• Williamson Magor & Company
• Vadilal Enterprises
• Manpasand Beverages
• Kwality

• International Paper APPM: Promoter group International Paper entered into an agreement with West Coast Paper Mills to sell its controlling stake in the company. As per the tender offer, West Coast Paper Mills will acquire 51 percent to 60 percent stake in the company. International Paper holds 75 percent stake in the company.
• Tata Power’s two arms entered into agreement to sell their entire stake in Nelito Systems worth Rs 15.6 crore to Japan-based DTS Corporation.
• IOL Chemicals and Pharma: Board approved increasing capacity for Ibuprofen from 10,000 MT to 12,000 MT and for Iso Butyl Benzene from 9,000 MT to 12,000 MT, per annum respectively for a capex of Rs 1 crore.
• HDFC: Board approved subsidy worth Rs 22,136 crore to over 1.04 lakh homebuyers under Pradhan Mantri Awas Yojna-CLSS scheme
• Jaypee Infratech clarified on the news of Adani Group offering Rs 500 crore to the lenders stating that no such negotiations took place.
• Nava Bharat Ventures: Board approved buyback of 15.6 lakh shares to Rs 160 per share aggregating to Rs 25 crore. Buyback is at a premium of 50 percent to the current market price.
• Goa Carbon said operations in its Goa unit have resumed with effect from May 25
• AIA Engineering: Bhupesh Porwal resigned from the post of chief financial officer with effect from May 29.
• Cholamandalam Investment and Finance entered into an agreement to raise $222 million debt funds in U.S. dollar bonds International World Bank Group’s International Financial Corporation.
• Engineers India: ONGC approved nomination of BN Reddy as the government director in the board of the government.
• Vakrangee appointed Gopal Bihani as CFO with effect from May 29

• Brent crude fell 0.35 percent to $67.85 per barrel.
• West Texas Intermediate crude rose 0.5 percent to $59.12 a barrel.
• Gold was steady at $1,279.62 an ounce.

London Metal Exchange

• Copper halted a two-day gain, closing 1.3 percent lower.
• Zinc snapped a two-day rally, ending 0.82 percent lower.
• Nickel ended lower for the second day, down 0.64 percent.
• Lead ended 0.44 percent higher.
• Aluminium halted a three-day gain, closing 0.66 percent lower.