Stocks Radar: TCS, Cipla, Dilip Buildcon, Sasken Technologies
Indian equity benchmarks fluctuated in the open before falling thereafter.
The S&P BSE Sensex index opened 0.2 percent higher at 34,493.69, before falling as much as 0.5 percent to 34,259.27. The NSE Nifty 50 Index opened 0.3 percent higher at 10,592.80 before falling as much as 0.5 percent.
The market breadth tilted in favour of the buyers. Eight out of 11 sectoral gauges compiled by NSE fell, led by NSE Nifty PSU Bank Index's 0.3 percent decline. On the flipside, NSE Nifty Media Index was the top sectoral gainer, up 0.8 percent.
Here Are The Stocks Moving The Market This Morning
TCS Rises For Second Day; Market Cap Crosses $100 Billion
Shares of the country's largest IT company rose for the second straight day after it reported better-than-expected March quarter earnings on Thursday.
The stock rose as much as 2.81 percent to record high of Rs 3,498 and it became the first Indian tech company to cross $100 billion in market capitalisation.
The stock’s relative strength index was 84, indicating that it may be overbought, according to Bloomberg.
Cipla: Regulatory Concerns Prevail
Shares of the drug maker fell as much as 2.9 percent to Rs 572.15.
The pharmaceutical company received three observations from the U.S. drug regulator for its Pithampur unit, according to its exchange filing. An observation indicates that certain aspects of the facility are not up to the mark.
Cipla trades at 45.7 times trailing 12-month earnings per share and 28 times its estimates for the coming year. The stock has declined 6 percent so far this year.
Unichem Labs: FDA Boost
Shares of the pharmaceutical company rose as much as 8.7 percent to Rs 283.65.
The U.S. FDA concluded the inspection of the company’s Ghaziabad facility with no observations, according to its stock exchange notification.
Trading volume was 23.1 times its 20-day average. The stock is 22 percent below the Bloomberg consensus one-year target price.
Indian Hume Pipe: Gains After Order Win
Shares of the pipe manufacturer rose as much as 9.6 percent to Rs 375.
The company bagged Rs 578.50 crore order from Madhya Pradesh Jal Nigam Maryadit, according to its stock exchange notification.
Trading volume was 27.8 times its 30-day average. The stock has crossed above its 50-day moving average on high trading volume, Bloomberg data showed.
Dilip Buildcon: Gains After New ‘Buy’ Rating
Shares of the construction company rose as much as 2.9 percent to Rs 1,162.
Homegrown brokerage and research firm Kotak Securities initiated coverage on the stock with a ‘Buy’ rating and expects its shares to reach Rs 1,365 in the next twelve months, according to its research report.
Key highlights from Kotak Securities on Dilip Buildcon
- Well-placed to leverage growing EPC opportunity in roads and beyond.
- Expect compounded growth rate of 8 percent in order inflow over fiscal 2018-2022.
- Bharatmala to offer EPC opportunity of Rs 3.3 lakh crore in the next few years.
- Market share in NHAI ordering to improve to 17 percent by March 2022, compared to 15 percent clocked in the previous financial year.
- Healthy backlog and reasonable cash flow to service debt.
- Expect revenue, operating income and net profit to compound at 26 percent, 27 percent and 28 percent respectively through the financial years till March 2022.
Stocks Reacting To Earnings
HDFC Bank (Q4, YoY)
- Stock fell as much as 4.9 percent to Rs 1,860
- NII up 17.7 percent to Rs 10,658 crore.
- Net Profit rose 20.3 percent to Rs 4,799 crore.
- GNPA at 1.30 percent versus 1.29 percent in Q3.
- NNPA at 0.40 percent versus 0.44 percent in Q3.
Indiabulls Housing Finance (Q4, YoY)
- Stock rose as much as 2.5 percent to Rs 1,390.
- NII up 22.2 percent to Rs 1,661 crore.
- Net Profit rose 22.6 percent to Rs 1,030 crore.
- Provisions at Rs 326 crore versus Rs 262 crore in Q3.
- Gross NPA unchanged at 0.77 percent.
Sasken Technologies (Q4, QoQ)
- Stock rose as much as 12.8 percent to Rs 847.20.
- Revenues down 2.4 percent to Rs 128.7 crore.
- Net profit rose 27.5 percent to Rs 26 crore.
- EBIT up 31 percent to Rs 21.5 crore.
- Margins at 16.7 percent versus 12.4 percent.
CDSL (Q4, YoY)
- Stock rose as much as 2.1 percent to Rs 299.45.
- Revenues up 35.1 percent to Rs 51.8 crore.
- Net profit rose 10.2 percent to Rs 25.9 crore.
- EBITDA up 54 percent to Rs 29.5 crore.
- Margins at 57 percent versus 50 percent.