Stocks Radar: ACC, Asian Paints, Bajaj Auto, PNB, United Spirits
Indian stocks extended gains for a third day as investors viewed equities will benifit from the government policies and earnings-growth prospects.
The S&P BSE Sensex rose as much as 0.4 percent to 36,869.34, a new record high. The NSE Nifty 50 Index gained as much as 0.4 percent as well to 11,143.
The market breadth was tilted in favour of buyers. All the sectoral gauges compiled by the National Stock Exchange advanced, the NSE Nifty Realty Index’s 0.8 percent jump.
Here Are The Stocks Moving The Market This Morning
ACC Jumps The Most In Over Nine Years On Strong Q1 Results
Shares of the cement maker climbed 12.9 percent, the most since May 2009, to Rs 1,479 apiece after its June quarter earnings beat estimates.
Key earnings highlights (Q2, Year-on-Year):
- Revenue was up 11.5 percent at Rs 3,848.3 crore.
- Net profit rose 1.1 percent to Rs 325.5 crore.
- Earnings before interest, tax, depreciation and amortisation was down 1.8 percent at Rs 623.9 crore.
- Margins stood at 16.2 percent against 18.4 percent a year ago.
Here’s what brokerages had to say on ACC’s performance:
- Maintained ‘Neutral’ with a price target of Rs 1,640.
- Strong quarter, but remain cautious.
- ACC should start underperforming on volume growth in absence of capacity additions.
- Valuations have corrected, but triggers for a re-rating are lacking.
- Expect costs to ease in coming quarters.
- Maintained ‘Buy’; cut price target to Rs 1,900 from Rs 2,150.
- June quarter was strong with Ebitda and net profit ahead of estimates.
- Surprisingly strong realisations and modest cost inflation.
- Cut earnings estimates by 10-12 percent as lower realisations expected in second half of 2018 and 2019.
- Maintained ‘Neutral’; cut price target to Rs 1,500 from Rs 1,680.
- Adjusted Ebitda a big beat driven by realisation and cost controls.
- Delivered meaningful improvement in operating trends over the last six quarters.
- ACC’s valuation is cheap, and earnings surprise could drive a sharp rally.
- Clarity on new capacity expansion/M&A will be key.
- Maintained ‘Overweight’ with a price target of Rs 1,887.
- Earnings surprise led by better realisation owing to geography and mix channel.
- Expect margin expansion to drive earnings as utilisation and volume growth at peak.
- Expect freight cost to remain stable at these levels in ensuing quarters.
Bajaj Auto, Hero MotoCorp Snap Losing Streak
Shares of the two-wheeler makers recovered from opening slump to gain for the first time in at least three days.
The stock of Bajaj Auto has fallen over 10 percent in three days amid investor worries that the Pune-based auto maker’s push to gain a bigger slice of the low-cost market will increase competition and hurt industry margins.
Hero MotoCorp gained 1.4 percent after falling as much as 4 percent in early trade. The stock has lost over 8.5 percent in four trading sessions.
Punjab National Bank Gains After Capital Infusion
Shares of the state-run bank rose as much as 1.1 percent to Rs 79.80 apiece. The fraud-hit lender received Rs 2,816 crore capital infusion from the central government, according to its exchange notification.
The stock has declined 53.9 percent so far this year compared to a 15.2 percent advance in the Sensex.
Asian Paints Swings Ahead of Results Announcement
Shares of the paints maker fluctuated between gains and losses to trade 0.9 percent higher at Rs 1,446.95 apiece as of 9:20 a.m. ahead of its quarterly results announcement.
Asian Paints trades at 69.8 times trailing 12-month earnings per share and 56 times its estimates for the coming year, Bloomberg data showed.
Syngene International Gains After Extending Agreement
Shares of the chemical research firm gained as much as 1.2 percent to Rs 606.60 apiece.
The company extended a research and development agreement with Baxter Healthcare till 2024, according to its exchange filing.
IZMO Jumps After Order Win
Shares of the automotive e-retailing solutions provider rose as much as 8.1 percent to Rs 74.40 apiece.
The company bagged a multi-crore order from a leading original equipment manufacturer in Mexico for its car visualiser product, according to its regulatory filing.
The trading volume was 45.1 times its 20-day average, according to Bloomberg data. The company will announce its quarterly results for the April-June period on Thursday.
Stocks Reacting To Earnings
United Spirits Ltd.
Shares of the alcohol maker slipped as much as 3.3 percent after its profit fell short of analysts’ estimates for the April-June period.
- Revenue up 13 percent at Rs 2,012 crore.
- Net profit up 29 percent at Rs 81.3 crore.
- Ebitda up 23 percent at Rs 193 crore.
- Margin at 9.6 percent against 8.8 percent.
Hindustan Zinc (Q1, YoY)
- Stock fell as much as 2.6 percent to Rs 260.65 apiece.
- Net profit was up 1.5 percent at Rs 1,918 crore.
- Revenue rose 16 percent to Rs 5,310 crore.
- Ebitda was up 13 percent at Rs 2,713 crore.
- Margins stood at 51.1 percent against 52.1 percent.
L&T Technology Services (Q1, Quarter-on-Quarter)
- Stock rose as much as 13.8 percent to Rs 1,488.05 a share.
- Revenue was up 9.2 percent at Rs 1,152.2 crore.
- Net profit increased 24.4 percent to Rs 197.5 crore.
- EBIT was up 43.8 percent at Rs 169.7 crore.
- Margins stood at 14.7 percent compared with 11.2 percent.
Alicon Castalloy (Q1, YoY)
- Stock rose as much as 6.9 percent to Rs 629.65 apiece.
- Revenue was up 50.4 percent at Rs 296.7 crore.
- Net profit stood at Rs 12.3 crore against Rs 6.1 crore.
- Ebitda was up 56.2 percent at Rs 32.5 crore.
- Margin stood at 11 percent compared with 10.5 percent.
Tejas Networks (Q1, QoQ)
- Stock rose as much as 10.9 percent to Rs 288.95 apiece.
- Revenue up 16.9 percent at Rs 235.8 crore.
- Net profit at Rs 45 crore versus Rs 20.4 crore.
- Ebitda up 38.9 percent at Rs 62.5 crore.
- Margin at 26.5 percent versus 22.3 percent.
V-Mart Retail (Q1, YoY)
- Stock rose as much as 4.9 percent to Rs 2,473 apiece.
- Revenue up 14.6 percent at Rs 361.2 crore.
- Net profit up 11.2 percent at Rs 24.9 crore.
- Ebitda up 16.4 percent at Rs 43.2 crore.
- Margin at 12 percent versus 11.7 percent.
Balaji Amines (Q1, YoY)
- Stock rose as much as 9.5 percent to Rs 573.75 a share.
- Revenue up 30 percent at Rs 260.2 crore.
- Net profit up 48.2 percent at Rs 33.8 crore.
- Ebitda up 44.6 percent at Rs 58.7 crore.
- Margin at 22.6 percent versus 20.3 percent.
Indiabulls Ventures (Q1, YoY)
- Stock rose as much as 5 percent to Rs 534.60 apiece.
- Revenue up 118.9 percent at Rs 344.6 crore.
- Net profit up 94.9 percent at Rs 87.7 crore.
- Ebitda at Rs 212.7 crore.
- Margin at 61.7 percent versus 48 percent.
Linde (Q1, YoY)
- Stock rose as much as 6.6 percent to Rs 471.15 apiece.
- Revenue up 11.5 percent at Rs 549.6 crore.
- Net profit at Rs 5.2 crore against a net loss of Rs 2.2 crore.
- Ebitda up 7.7 percent at Rs 85.4 crore.
- Margin at 15.5 percent compared with 16.1 percent.
L&T Infotech (Q1, QoQ)
- Stock rose as much as 8.5 percent to Rs 1,867 apiece.
- Revenue up 7.7 percent at Rs 2,155.7 crore.
- Net profit up 24.8 percent at Rs 361.3 crore.
- EBIT up 49 percent at Rs 381.4 crore.
- Margin at 17.7 percent against 12.8 percent.
Delta Corp (Q1, YoY)
- Stock rose as much as 4.9 percent to Rs 238.80 apiece.
- Revenue up 45.6 percent at Rs 187.3 crore.
- Net profit up 85.7 percent at Rs 41.4 crore.
- Ebitda up 44.6 percent at Rs 65.5 crore.
- Margin at 35 percent against 35.2 percent.
Granules India (Q1, YoY)
- Stock rose as much as 2.7 percent to Rs 96.90 a share.
- Revenue up 20.1 percent at Rs 453.2 crore.
- Net profit up 40.8 percent at Rs 51.8 crore.
- Ebitda down 4.6 percent at Rs 72.5 crore.
- Margin at 16 percent compared with 20.1 percent.
ICICI Securities (Q1, YoY)
- Stock fell as much as 4.3 percent to Rs 300 apiece.
- Revenue up 8.6 percent at Rs 435.9 crore.
- Net profit up 13 percent at Rs 133.8 crore.
Rane Engine Valve (Q1, YoY)
- Stock fell as much as 2.4 percent to Rs 465 a share.
- Revenue up 15.88 percent at Rs 102.5 crore.
- Net loss at Rs 4.4 crore against a net loss at Rs 2.7 crore.
- Ebitda at Rs 2.8 crore compared with Rs 4.1 crore.
- Margin at 2.7 percent against 4.6 percent.