Stocks Radar: Tech Mahindra, ICICI Lombard, Vadilal Industries
Indian equity benchmarks pared most of their gains after posting fresh record highs in opening trade. The S&P BSE Sensex was little changed at 38,280 and so was the NSE Nifty at 11,555 as of 11:05 a.m.
The market breadth was slightly tilted in favour of buyers. Six of the 11 sectoral gauges declined, led by the NSE Nifty Realty Index’s 1.15 percent drop. Meanwhile, NSE Nifty IT was up 0.9 percent, making it the best performer.
Here Are The Stocks Moving The Market This Morning
HCL Technologies Gains Over 2.5%
Shares of the software services company gained as much as 2.61 percent to Rs 1,014 apiece.
The company yesterday said its shareholders have approved a proposal to buy back shares worth Rs 4,000 crore. The board has fixed Aug. 31 as the record date for the buyback offer.
The stock trades at 16 times trailing 12-month earnings per share and the trading volume was 4.7 times the 20-day average, Bloomberg data showed.
Apollo Tyres Falls On Production Disruption
Shares of the tyremaker lost as much as 2 percent to Rs 258.70 apiece.
Operations at the company’s plants at Perambra and Kalamassery in Kerala have been disrupted due to the flood. The production loss is estimated at about 1,500 million tonnes, according to its exchange filing. The company, however, said the consequential loss of profit is not significant.
The stock is 19 percent below the Bloomberg consensus one-year target price.
ICICI Lombard Ends Four-Day Winning Streak
Shares of the insurance company snapped their four-day gaining streak and declined as much as 1.36 percent to Rs 793.10 apiece.
ICICI Lombard has launched India’s first artificial intelligence-based technology to facilitate instant health insurance claims approval, according to its exchange filing. This will reduce the time taken to respond to customer claims to just one minute compared to hours earlier, it said.
The stock’s trading volume was 34 percent of the 20-day average, according to Bloomberg data.
FDC Slumps On FDA Observation
Shares of the pharmaceutical R&D company fell as much as 8.14 percent to Rs 243.25 apiece as the U.S. Food and Drug Administration made eight observations for its Maharashtra plant.
The company said the U.S.FDA carried out inspection in relation to ophthalmic products being exported to the American market and eight observations were made under Form 483 for its Waluj unit, in Aurangabad, Maharashatra.
The stock trades at 24.2 times trailing 12-month earnings per share, according to Bloomberg data.
Vadilal Industries Tumbles To Lowest Level In A Year
Shares of the ice cream maker slumped as much as 12.21 percent, its lowest level in a year, to Rs 548.70 apiece after two bulk deals.
Well-known investor Ashish Kacholia sold a 5 percent stake in Vadilal Industries. The stock picker sold about 3.62 lakh shares (or 5.04 percent equity) at Rs 612.18 each yesterday. Besides, EQ India Fund bought 48,000 shares, or 0.67 percent equity, at Rs 590.24 each, according to NSE data.
The stock trades at 21.1 times trailing 12-month earnings per share, Bloomberg data showed.
Tech Mahindra Gains On Rating Upgrade
Shares of the computer software developer gained as much as 4.2 percent to Rs 717.10 after Bank of America Merril Lynch upgraded its view on the stock.
The American investment banking firm upgraded the stock to ‘Buy’ From ‘Underperform’ and raised the price target to Rs 800 from Rs 600. It also expects Tech Mahindra’s operating profit to grow at an annualised rate of 18 percent over the three financial years. Such growth can provide more qualitative stock rally, BofA-ML said.
The stock is 6.7 percent below the Bloomberg consensus one-year target price.