Stocks Radar: Adani Group Companies, Jubilant Life, Tata Motors, Videocon
Indian shares gained in early trade on Wednesday, amid positive global cues, led homegrown auto maker Tata Motors after a better-than-expected quarterly earnings performance.
Here are the stocks moving the market this morning:
Adani Group: May Exit Australia Coal Deal
Shares of Adani Group companies were in focus after a news report suggested that it may exit from the $16.5 billion Carmichael coal project in Australia unless a royalties deal can be agreed upon by the government.
The development was revealed by Federal Resources Minister Matt Canavan in an interview with Bloomberg.
Australia's largest coal mine has now been delayed several times because of court claims and protests from environmental groups, concerned about the impact of the coal mining.
- Adani Enterprises (+1.2 percent to Rs 114)
- Adani Power (-2 percent to Rs 29)
- Adani Ports & SEZ (+2.5 percent to Rs 339)
- Adani Transmission (+2.4 percent to Rs 107)
HCC: Arm Loses SPA Status
Shares of the construction company fell 2.4 percent to Rs 40 after the Special Planning Authority (SPA) status of its real estate arm, Lavasa Corporation, came to an end.
The decision was taken after Devendra Fadnavis, chief minister of Maharashtra, extended the jurisdiction of the Pune Metropolitan Region Development Authority. The company will reveal its stand on the decision once its receives official communication, according to a PTI report.
Tata Motors: Gains On JLR’s Boost
Shares of the commercial vehicle manufacturer rose 5.1 percent after it surprised analysts with Jaguar Land Rover’s operating margin expansion in the last quarter of financial year 2016-17.
Ten out of twelve analysts tracked by Bloomberg have maintained a ‘Buy’, ‘Overweight’ or ‘Outperform’ rating. Only CLSA has retained a ‘Sell’ rating on the stock.
Most analysts are also bullish on the company regaining market share in India, specially in the commercial vehicles space and the management commentary on Jaguar Land Rover’s volumes.
Earnings Reaction: Future Retail, Jubilant, Voltas
Jubilant Life Sciences rose 5.7 percent to Rs 714 after lower tax and depreciation helped its net profit grow 12.7 times in the March ended quarter. Revenue rose 8.3 percent while margins fell marginally by 70 basis points. The stock rose the most in nearly a month’s time.
Radico Khaitan fell 3.5 percent to Rs 121 even after it posted a 19.6 percent rise in revenue and a 18.6 percent rise in net profit. The company's EBITDA rose 36.5 percent during the quarter while margins also expanded to 11.9 percent from 8.4 percent.
Entertainment Network India fell 2.5 percent to Rs 758 after its profit dropped 42 percent despite a 12 percent rise in revenue for the fourth quarter. The company's margins came under pressure, falling 500 basis points.
"EBITDA and PAT were impacted by demonetisation and continuing investments in brand building for new stations," the company’s Chief Executive Officer and Managing Director Prashant Panday said in a statement.
Future Retail rose 4.6 percent to Rs 319 after its net profit rose 17.3 percent on a year-on-year basis for the March ended quarter.
The company’s revenue increased 25.3 percent while profitability margin expanded by 60 basis points.
Voltas rose 8.3 percent to Rs 444 after its net profit increased 22 percent. EBITDA rose 22.7 percent, while profitability margin expanded to 10.9 percent from 9.7 percent. Operating income, however, fell 26 percent because of the increasing expenses for the company. The company’s shares fell the most since November 2016.
The firm further plans to enter consumer durable with $100 million joint venture with Turkish company, Ardutch BV, a subsidiary of Arcelik, according to a PTI report.
Videocon: Falls On Debt Concerns
The company dropped as much as 11.1 percent to Rs 58, falling for the third day amid debt worries.
Government-run Dena Bank classified loans to Videocon as a non-performing asset when the lender announced its March quarter earnings on May 9.
The consumer electronics and home appliances manufacturer’s total debt stood at Rs 43,017 crore as on June 2016, according to CARE Ratings and Research.