Stocks Radar: ICICI Bank, Hindustan Petroleum, Reliance Communications, NMDC
The key Indian equity market indices opened higher on Thursday. The S&P BSE Sensex breached the 38,000-mark to trade at a record of 38,035.84. The NSE Nifty 50 Index, too, gained as much as 0.3 percent at 11,479.5 as of 10:20 a.m.
The market breadth was tilted in favour of buyers. Nine of the 11 sectoral gauges compiled by the National Stock Exchange gained, led by a 2.46 percent advance in the NSE Nifty PSU Bank Index. The NSE Nifty Media Index was the biggest loser, down 0.62 percent.
Here Are The Stocks Moving The Market This Morning
ICICI Bank Surges To Six Month High On Bad Loans Clarification
Shares of the country's third-largest private sector lender by market cap advanced as much as 8.5 percent to a six-month high of Rs 345.5 after it informed exchanges that it has made full disclosures about on bad loans and accounting policies
Investment bank Morgan Stanley expects the stock to double in two years and sees the risk-reward favourable as it trades at 1.2 times the financial year 2020 estimated price-to-book value. It highlighted that the foreign ownership in the bank at 60 percent was close to lowest in 15 years, in its note to investors.
The weight of the second-largest Indian private lender by assets stands at 15 percent in Morgan Stanley’s Asia banks portfolio.
HPCL Gains On Expansion Plans, Quarterly Earnings
Shares of the ONGC subsidiary gained as much as 3.68 percent to Rs 286.05 apiece after the company’s June quarter earnings beat estimates.
Net profit fell 1.6 percent from the preceding quarter to Rs 1,719.2 crore in the April-June period, the oil marketer said in its exchange filing. That’s higher than the Rs 1,444-crore consensus estimate of analysts tracked by Bloomberg.
HPCL also plans to invest over Rs 8,400 crore in various projects, including refineries, petrochemicals, pipelines and natural gas, in the ongoing fiscal, Chairman and Managing Director MK Surana said. It has proposed to set up a unit in the U.A.E.
The stock trades at 6.8 times trailing 12-month earning per share. The trading volume is 2.4 times the 20-day average, according to Bloomberg data.
Pidilite Rises On Investment Proposal
Shares of the adhesive maker gained as much as 0.8 percent to Rs 1,124.50 apiece.
The company plans to invest $500,000 as equity capital contribution in Pidilite Ventures LLC, U.S—making it a wholly owned subsidiary of the company—according to its exchange filing.
The stock trades at 59.4 times trailing 12-month earnings per share, according to Bloomberg data.
Siemens Gains After Earnings Beat Estimates
Shares of the company gained as much as 1.6 percent to Rs 1,030.05 apiece.
Net profit rose 25.5 percent from last year to Rs 204.4 crore in the April-June period. The company’s revenue increased 15.9 percent from the year-ago period to Rs 3,073 crore, according to its exchange filings.
The stock trades at 48.4 times trailing 12-month earning per share and is 7.6 percent below the Bloomberg consensus one-year target price.
Blue Star Climbs On Exceptional Gains
Shares of the air conditioner maker climbed as much as 4.16 percent to Rs 707.70 apiece after the company reported an exceptional gain of Rs 15 crore in the June quarter.
Net profit rose 20.2 percent from last year to Rs 91.6 crore in the April-June quarter. Revenue, however, remained flat at Rs 1,507.8 crore, according to its exchange filing.
Key Highlights (Year-on-Year)
- Earnings before interest, tax, depreciation and amortisation rose 23.7 percent to Rs 136.7 crore.
- Margin stood at 9.1 percent against 7.3 percent.
The stock trades at 52.6 times trailing 12-month earning per share, according to Bloomberg data.
NMDC Plunges The Most In Two Years
Shares of the mineral explorer fell as much as 8.01 percent—the most in two years—at Rs 106.55 apiece.
The stock trades at nine times trailing 12-month earning per share and is 24 percent below the Bloomberg consensus one-year target price.
BPCL Gains After Earnings Beat Estimates
Shares of the oil marketer rose as much as 2.76 percent to Rs 392.10 apiece after the state-run refiner’s profit beat analyst expectations in the April-June period due to inventory gains and better refining margins.
Net profit for the standalone entity fell 14 percent sequentially to Rs 2,293.3 crore, according to its exchange filing. Analysts tracked by Bloomberg had expected profit at Rs 2,054 crore.
BPCL, however, had to shut a hydrocracker unit at its Chembur refinery in Mumbai yesterday following a fire that left 40 people injured, according to multiple media reports.
Key Highlights (Quarter-on-Quarter)
- Revenue rose 9.9 percent to Rs 7,1697 crore.
- Margin stood at 5.4 percent against 5.7 percent.
The stock trades at 8.6 times trailing 12-month earning per share, according to Bloomberg data.
Reliance Communications Jumps After Block Deal
Shares of the telecom service provider jumped as much as 10.87 percent to Rs 19.75 apiece after 6.28 million shares of the company changed hands in three block deals.
The trading volume of the stock was 4.5 times the 20-day average, according to Bloomberg data.