Stocks Radar: Cipla, Vedanta, HPCL

Indian equity benchmarks edged higher led by gains in Infosys Ltd., Hero MotoCorp Ltd., Oil and Natural Gas Corp. However, the gains were capped as ICICI Bank Ltd., Sun Pharmaceuticals Ltd. and NTPC Ltd. declined.

The S&P BSE Sensex rose 0.26 percent to 34,170 and the NSE Nifty 50 Index rose 0.15 percent to 10,493. The market breadth was tilted in the favour of buyers.

Seventeen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Realty Index's 1.8 percent jump. On the other hand, the S&P BSE Metal index was down 0.6 percent.

Here Are The Stocks Moving The Market This Morning:

Cipla: Rating Upgrade

Shares of the drug maker rose as much as 6.85 percent to Rs 608.25 as Morgan Stanley upgraded stock rating to ‘Overweight’ from Underweight earlier, even as the company’s financials missed estimates post earnings announcement. This is the most that the stock has gained since November 2016.

The brokerage also raised its stock price target to Rs 716 from Rs 555, which reflects a near 17 percent upside to the stock’s highest price in today’s opening.

Key Financial Highlights:

• Net profit rose 6.9 percent year-on-year to Rs 400 crore.
• Revenue rose 11 percent to Rs 3,914 crore.
• Earnings before interest, tax, depreciation and amortisation rose 20.9 percent to Rs 818.6 crore.
• Ebitda margin expanded 230 basis points to 20.9 percent.

Vedanta Falls After Supeme Court Cancels Iron Ore Mining Permits In Goa

Shares of billionaire Anil Agarwal-led group fell as much as 3.34 percent to Rs 305.15 after the Supreme Court cancelled all the 88 iron ore mining leases renewed by the Goa government.

The stock has been declining since the last five trading sessions, and the trading volume was 1.8 times the 30-day average.

The apex court yesterday ordered that no mining activity will continue in the state post March 15, and the government will have to grant fresh leases through auctions. Vedanta stands to lose Rs 1,000 -crore revenue following the ban.

Hexaware Drops As Profit Trails

Shares of the technology solutions provider fell as much as 5.64 percent to Rs 335.50, the most in eight months, after its third quarter profit fell below analysts’expectations.

The stock has been on a downward trajectory for the third straight day, with the trading volume at 4 times the 30-day average. Nomura downgraded stock rating to ‘Reduce’ from Neutral earlier, with the price target of Rs 310, nearly 10 percent below the last price as of 10 am.

Key Financial Highlights:

• Revenue up 1 percent at Rs 1,005 crore
• Net profit down 15 percent at Rs 121 crore
• EBIT down 8 percent at Rs 144 crore
• Margin at 14.3 percent versus 15.8 percent

HPCL Rises On ONGC Selling Stake In Oil Majors Report

Shares of the marketer and refiner Hindustan Petroleum Corporation Ltd. climbed as much as 3.27 percent to Rs 408 after Bloomberg reported that Oil and Natural Gas Corp. is planning to sell stake in two oil majors.

The report noted that ONGC is set to sell its holding in Indian Oil Corp. Ltd. and GAIL India Ltd. to accumulate funds for paring debt raised to buy the government’s 51.1 percent stake in HPCL.

Stocks Reacting To Earnings:

Aurobindo Pharma Q3 (YoY)

• Stock was down 1.64 percent to Rs 606
• Revenue up 11 percent at Rs 4,336 crore
• Net profit up 3 percent at Rs 595 crore
• Ebitda up 15 percent at Rs 1,025.5 crore
• Margin at 23.7 percent versus 22.9 percent

Dixon Technologies Q3 (YoY)

• Stock was down 6.03 percent to Rs 3,880
• Revenue up 0.3 percent at Rs 678 crore
• Net profit up 25 percent at Rs 15 crore
• Ebitda up 6 percent at Rs 27 crore
• Margin at 4 percent versus 3.8 percent

Reliance Home Finance Q3 (YoY)

• Stock was up 6.5 percent to Rs 73
• Revenue up 54.4 percent at Rs 403 crore
• Net profit up 100 percent at Rs 46 crore

Alphageo Q3 (YoY)

• Stock was down 1 percent to Rs 877
• Revenue up 28 percent at Rs 104 crore
• Net profit up 17 percent at Rs 14 crore
• Ebitda up 15 percent at Rs 31 crore
• Margin at 29.8 percent versus 33.3 percent

Firstsource Solutions Q3 (QoQ)

• Stock was up 3.96 percent to Rs 42
• Revenue up 2 percent at Rs 89 crore
• Net profit up 43 percent at Rs 10 crore
• EBIT up 11 percent at Rs 10 crore
• Margin at 11.2 percent versus 10.3 percent

IGL Q3 (QoQ)

• Stock was down 1.4 percent to Rs 288
• Revenue up 5.1 percent at Rs 1,184 crore
• Net profit down 1.7 percent at Rs 166 crore
• Ebitda down 6.6 percent at Rs 263 crore
• Margin at 22.2 percent versus 25 percent

Gati Q3 (YoY)

• Stock was down 4.9 percent to Rs 114
• Revenue up 5.5 percent at Rs 448.5 crore
• Net profit down 45.5 percent at Rs 3 crore
• Ebitda down 8 percent at Rs 23.5 crore
• Margin at 5.2 percent versus 6 percent