Stocks Radar: Biocon, Interglobe Aviation, Thyrocare Technologies
Here are the stocks moving the market this morning.
Indian shares rose for a third straight session, with Petronet LNG climbing to a record high on better-than-expected quarterly earnings, while gains in Asian equities also supporting sentiment.
Here are the stocks moving the market this morning:
IDBI Bank: RBI Initiates Corrective Measures
Shares of the lender fell 3.5 percent to Rs 79 after the Reserve Bank of India initiated prompt corrective action for its high net non-performing assets and negative returning on assets.
The controls imposed can range from a restriction on declaring dividends to curbs on expanding the bank’s operations.
Biocon: U.S. FDA Issues Observations
Shares of the bio-technology company fell as much as 6.1 percent to Rs 982 after the U.S. FDA issued eight observations for the firm’s Bengaluru facility, citing discrepancies in the manufacturing process.
The stock is trading close to its lowest level since January 23 of this year.
Lupin: Receives 8 Observations
Shares of the drugmaker rose 0.7 percent to Rs 1,258 even after the U.S. Food and Drug Administration issued eight observations for its Aurangabad facility.
The inspection was completed on April 26, 2017 according to the company's filing. "We are in the midst of putting together a response to address the said observations," the filing added.
Earnings Reaction: Bharti Airtel, Interglobe, Blue Star
Bharti Airtel fell 2.5 percent to Rs 336 after its net profit fell nearly 72 percent to Rs 373 crore as the country's largest telecom operator competed against Reliance Jio's free data and voice calling schemes. This was the stock’s largest fall in nearly a month.
The average revenue per user fell to a record low in the January to March quarter of the financial year while total revenue fell for the second consecutive quarter. Both bottomline and topline numbers missed Bloomberg consensus estimates.
Interglobe Aviation, owner of India’s largest domestic airline IndiGo, fell 2 percent to Rs 1,118 after its profit declined 24.5 percent due to rising costs. Revenue increased 19.4 percent to Rs 4,848 crore. Operating margin took a hit as the company's costs on every available seat per kilometre went up by more than five percent on a year-on-year basis. IndiGo's operating margin contracted by over 9 percentage points.
The airline also signed a deal to buy 50 ATR planes worth $1.3 billion. According to an announcement in April, the company plans to add 18 new flights for the summer which will add to the country's regional connectivity scheme.
Thyrocare Technologies rose 8.9 percent to Rs 777 after its net profit rose 36 percent to Rs 16 crore. earnings before interest, tax, depreciation and amortisation rose 35 percent to Rs 33 crore while profitability margins remained flat. This was the stock’s largest jump since it debuted on the exchanges in May 2016.
Gujarat Mineral Development Corporation jumped 15.7 percent, most since August 2013. Its net profit rose 128 percent to Rs 90 crore while EBITDA rose 1.2 times to Rs 148.6 crore, as per the company’s filing on the exchanges. Profitability margins expanded by 800 basis points during the quarter.
The stock is currently at its highest value since November 2014, when it rose to Rs 145.8 per share.
Petronet LNG rose 4.6 percent to Rs 448 after a 92 percent jump in profit to Rs 470.8 crore compared to the previous quarter. EBITDA rose 1.5 percent sequentially, while EBITDA margin expanded by 50 basis points. This stock gained most since Jan 27, 2017.
Blue Star rose 2.6 percent to Rs 722 after nearly a 1.5 times jump in profit to Rs 37 crore. While EBITDA rose 12 percent, margins contracted to 5.73 percent from 6.06 percent.
Sensex, Nifty: Movers & Shakers
