Employee monitoring securities at the BSE (Photographer: Dhiraj Sing/Bloomberg)

Stocks Radar: Wipro, Reliance Naval & Engineering, Inbdiabulls Real Estate

Indian equity benchmarks opened higher, led by gains in heavyweights Reliance Industries Ltd. and Infosys Ltd.

The S&P BSE Sensex Index opened 0.1 percent higher at 34,532, while the NSE Nifty 50 Index began trading at 10,586.50, up 0.2 percent.

The market breadth was tilted in favour of buyers. Eight out of 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Realty Index's 1.2 percent gain. On the flipside, NSE Nifty Bank Index was the top sectoral loser.

Here Are The Stocks Moving The Markets This Morning:

Wipro Declines After Earnings Miss

Shares of the software services firm declined as much as 4.6 percent to Rs 274 after its fourth quarter earnings failed to meet street estimates. This is the most that the stock has fallen in a single session in over seven months.

Wipro Ltd’s profit fell over 6 percent after the company made provisions for an insolvent client and recognised an impairment loss in one of its acquisitions. Wipro expects revenue from IT services to be in the range of $2.02-2.07 billion in the next quarter.

The stock was the worst performer on both Sensex and Nifty. The scrip declined 12 percent so far this year.

Key Financial Highlights (QoQ)

  • Revenue up 0.7 percent at Rs 13,769 crore
  • Profit down 6.7 percent at Rs 1,800 crore
  • EBIT down 3.9 percent at Rs 1,883 crore
  • Margin at 13.7 percent versus 14.3 percent

Reliance Naval & Engineering Falls Most In Over Five Years

Shares of Reliance Naval & Engineering Ltd. fell as much as 19.3 percent to Rs 18.4, the most since July 2012 after auditors of the Anil Ambani-led firm raised doubts about the company’s ability to “continue as a going concern“.

The stock has now fall in eight of the last nine trading sessions including today. It has declined 61 percent so far this year, compared with a 1.6 percent decline in the Sensex.

Auditors of the debt-laden company noted that Reliance Naval’s current liabilities are substantially higher than its assets. They also pointed out that some of its operating creditors had filed winding up petitions.

Emami Gains After Board Plans To Consider Bonus Issue

Shares of the healthcare product maker rose as much as 7.3 percent, the most in over three months to Rs 1,204.

The company said in a stock exchange filing that it plans to consider bonus shares and a dividend at a board meeting on May 3.

Trading volume was 14.7 times its 20-day average. Emami trades at 78.8 times trailing 12-month earnings per share and 53 times its estimates for the coming year, Bloomberg data showed.

Indiabulls Real Estate Jumps On Q4 Profit Rise

Shares of real estate developer jumped over 9 percent to Rs 224 after it reported a substantial year-on-year increase in its fourth quarter profit. This is the most that the company has gained in the last two months.

Traded volume was 12.4 times the 30-day average at the time and the street consensus price target is 23.4 percent above the last price.

Financial Highlights (YoY)

  • Revenue at Rs 2,028 crore versus Rs 437 crore
  • Net profit at Rs 1,648 crore versus Rs 80 crore
  • EBITDA at Rs 1,961.5 crore versus Rs 142 crore
  • Margin at 96.7 percent versus 32.5 percent

Realty Stocks Gains Post Mumbai Development Plan Nod

The S&P Realty Index gained as much as 1.94 percent to 2,450 with Indiabulls Real Estate Ltd., Phoenix Ltd. and Sobha Ltd. being the top gainers.

The Maharashtra government on Wednesday approved the Mumbai Development Plan 2034, significantly increasing the floor space index for commercial and residential real estate in the island city and its suburbs.

The FSI, which relates to the extent of development allowed on a piece of land, has been raised to 3 and 5 for residential and commercial buildings respectively, from 1.33 for both. In the suburbs, residential real estate now has an FSI of 2.5 and commercial has a cap of 5.

The government also announced the release of 3,355 hectares of land previously designated as a no-development zone for building complexes in Mumbai, a significant portion of which is intended for affordable housing.

Stocks Reacting To Earnings Announcement

ICICI Lombard Q4 (YoY)

  • Stock was down 3.7 percent to Rs 745
  • Gross domestic premium up 10 percent at Rs 2,926 crore
  • Profit up 18 percent at Rs 212 crore
  • Combined ratio at 99.5 percent versus 97.1 percent

Mahindra & Mahindra Financial Services Q4 (YoY)

  • Stock was up 5 percent to Rs 533
  • Income from operations grew 12.8 percent to Rs 2,060 crore
  • Net profit grew 81 percent to Rs 424 crore
  • Provisions at Rs 157 crore versus Rs 199 crore (QoQ)

Syngene International Q4 (YoY)

  • Stock was down 4.3 percent to Rs 650
  • Revenue up 40.5 percent at Rs 409 crore
  • Net profit up 8 percent at Rs 84 crore
  • Ebitda up 28 percent at Rs 128 crore
  • Margin at 31.3 percent versus 34.4 percent
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