Stocks Radar: GE Power India, M&M Financial Services, Shriram Transport
Indian equity benchmarks fluctuated between gains and losses in the early trade with the S&P BSE Sensex trading flat at 35,350.64 and the NSE Nifty 50 Index at 10,684.50 as of 9:30 a.m.
The market breadth was slightly tilted in favour of sellers. Nine of 11 the sectoral gauges compiled by the National Stock Exchange fell, led by a 0.5 percent decline in the NSE Nifty Metal Index. The NSE Nifty Pharma Index was the top sectoral gainer, up 0.6 percent.
Here Are The Stocks Moving The Market This Morning
Shriram Transport Slides The Most In Nearly Two Years
Shares of the financial services provider for trucks today fell the most since November 2016 following a rating downgrade by Credit Suisse and a report by Jefferies. The stock declined as much as 14.6 percent to Rs 1,107.30 apiece.
According to a brokerage Jefferies, an off-balance sheet exposure to an unlisted group unit is a potential risk for the company, Bloomberg reported.
Shriram Transport has provided guarantee for Rs 870 crore of non-convertible debentures sold by SVL Ltd., a group company, analysts led by Bhaskar Basu wrote in a note dated July 3. With SVL and units likely under financial stress, NCD repayment may be an issue according to the Jefferies report.
Meanwhile, Credit Suisse downgraded the Shriram Transport stock to ‘Neutral’ from ‘Outperform’. It also lowered its price target to Rs 1,400 from Rs 1,910 a share, according to a separate Bloomberg report. The price target implies a potential upside of 7.9 percent from the last regular trade.
The stock is 34 percent below the Bloomberg consensus one-year target price.
M&M Financial Services Swings On Fundraising
Shares of the financial services provider hovered between gains and losses today to trade at Rs 458.80 apiece as of 9:30 a.m.
The company raised $100 million from International Finance Corporation, according to its exchange filing. The stock returned 31.3 percent over the past year compared to a 14.7 percent advance in the Sensex.
GE Power India Gains After Order Win
Shares of the power generator snapped their two-day decline and rose as much as 2.6 percent in today’s session to Rs 778 apiece.
The company received an order worth Rs 468 crore from BHEL, according to its regulatory filing. The stock trades at 40.3 times trailing 12-month earnings per share, Bloomberg data showed.
ISGEC Heavy Engineering Rises After Winning Bid
Shares of the industrial equipment maker rose as much as 5.7 percent today to Rs 5,454 apiece after the company emerged as the lowest bidder for a Rs 700-crore thermal power project.
The stock declined 33 percent so far this year and fell 13 percent in the past 12 months.
VST Tillers Falls After June Sales Decline
Shares of the tractor manufacturer fell as much as 2.7 percent today to Rs 2,279 apiece.
The company’s June sales declined 24 percent year-on-year to 3,819 units, according to its statement on the exchanges.
The trading volume was 14.7 times its 20-day average, according to Bloomberg data. The stock declined 9.4 percent so far this year compared to a 4.6 percent advance in the Sensex.
United Breweries Declines Following New Rating
Shares of the alcohol maker fell as much as 1.5 percent today to Rs 1,151 apiece after Goldman Sachs initiated coverage on the stock.
The international brokerage and research firm initiated a ‘Neutral’ rating on the stock and expect its shares to reach Rs 1,171 a share in the next 12 months, according to its research report.
Key highlights from the research report:
- The company is well placed to benefit from a pickup in volume and premiumisation of the market.
- Government intervention can be very disruptive to volumes or margins.
- Cultural or social norms and retail network issues to limit acceleration in beer consumption.
- Rising competitive intensity from global peers to challenge market share growth.
The stock is 5.1 percent below the Bloomberg consensus one-year target price. The scrip returned 45.8 percent over the past year compared to a 14.8 percent advance in the Sensex.