Stocks Radar: Inox Wind, Idea Cellular, UCO Bank
Here are the stocks moving the market this morning.
Indian shares opened higher, led by financial stocks on hopes of an interest rate cut by the Reserve Bank of India after a sharp fall in headline retail inflation.
Here are the stocks moving the market this morning:
Earnings Reaction
Inox Wind
The energy company fell 19.4 percent to Rs 162.5 after it reported a 37 percent fall in quarterly profit. The company also gave a weak outlook for financial year 2017-18, which prompted brokerages to downgrade the stock. The stock saw its biggest fall since listing.
Sales of all key products for Inox Wind, namely nacelles and hubs, blades and towers declined by 71 percent, 51 percent and 34 percent, respectively. As a result, net sales for the company declined by 44 percent in the January-March quarter.
Idea Cellular
Shares fell 3.4 percent to Rs 89 after the telecommunication company reported a loss of rs 327.7 crore, falling short of analyst estimates by a large margin.
In an effort to retain its existing mobile subscribers, Idea Cellular was forced to reduce is voice and data tariffs by up to 27.6 percent over the previous quarter, the company said in a statement.
Titan
The stock fell 3.7 percent to Rs 476 despite a revenue jump of 44 percent for the January to March quarter on the back of high jewellery sales.
The company benefited as organised gold retailers gained from demonetisation and the subsequent cash curbs, according to a report by the World Gold Council.
Net profit rose 7.5 percent to Rs 201 crore year on year in January-March. Margins contracted by 80 basis points, mainly due to a rise in input costs.
Nestle India
Shares of the company fell 2.4 percent to Rs 6,661 after its profit growth missed estimates for the fourth quarter, weighed down by rising costs. The company fell the most since February 2017.
The food and beverage major’s sales rose 9.5 percent to Rs 2,592 crore, which the company attributed to the a rise in domestic volumes in the first quarter and its instant noodles Maggi catching up on lost momentum, after being banned for some time last year.
Jindal Stainless
Shares rose 6 percent to Rs 83 after it reported a profit of Rs 161 crore compared to a loss in the corresponding quarter.
Revenue rose 24 percent while margins expanded by 600 basis points.
PNB Housing Finance
Shares rose 2 percent to Rs 1,358 after its net profit jumped 49 percent aided by a growth in its housing finance portfolio. Total income increased by 37 percent to Rs 1,076 crore during March quarter of 2016-17, against Rs 785.3 crore a year ago.
The board of directors of the company today recommended a final dividend of Rs 6 per equity share for 2016-17.
Godrej Industries: To List Subsidiary
The stock rose 3.4 percent to Rs 584 after its board of directors approved the proposed initial public offering of its subsidiary Godrej Agrovet. The details of the offering and its timing has not been revealed yet.
UCO Bank: RBI Takes Prompt Corrective Action
The lender fell 8.9 percent to Rs 38 after the Reserve Bank of India initiated corrective measures against it, due to high level of bad loans and negative return on assets. This was the stock’s biggest drop since November 2016.
The move will place various restrictions on the public sector lender including on fresh loans and dividend distribution. The gross non-performing assets (NPAs) of the bank grew to 17.12 percent of gross advances at the end of 2016-17, from the earlier 15.43 percent.
Earlier this week, the RBI had initiated a similar action on IDBI Bank.
Banks Revise MCLR
United Bank of India rose 0.9 percent to Rs 22.8 after it revised its 1-year maginal cost-based lending rate to 8.8 percent from 8.75 percent. It also hiked its 6-month and 3-month lending rate by 5 basis points while the 1-month and overnight rate was raised by 10 basis points.
Corporation Bank also rose 4 percent to Rs 60 after it revised its MCLR rate to 8.75 percent, along with that for the other time slabs.
GMR Infrastructure: Sells Coal Mines
Shares rose 1.5 percent to Rs 16.8 after it sold its Indonesian coal mines through its subsidiaries. The company will also sell “mandatorily convertible bonds in PT Dwikarya Sejati Utama, PT Duta Surana Internusa, PT Unsoco and PT Barasentosa Lestari,” as per the filing.
Orient Bell: Bulk Deal
Shares of the company fell 5.5 percent to Rs 260 after Orient Bell Holding Trust sold its entire stake in Orient Bell for Rs 43.7 crore. The proceeds will be used by the company for its long-term strategic growth plans.
Orient Bell Holding Trust was vested with these shares due to erstwhile amalgamation of Bell Ceramics with Orient Ceramics.