Stocks In News: Biocon, Dish TV, Dr. Reddy’s, Fortis Healthcare, IndiGo, Indostar Capital, Wockhardt
Here’s a look at the stocks in news moving the markets today.
Indian stocks fell as local earnings reports and the coronavirus spreading from China continued to erode investors’ appetite for riskier assets.
At 11:28 am, the S&P BSE Sensex was 0.47 percent lower at 41,418.69 points while the NSE Nifty 50 was down 0.49 percent at 12,187.95. Mahindra & Mahindra Ltd. was the top gainer on the Nifty 50 index while JSW Steel Ltd. was the top loser.
Here’s a look at the stocks in news moving the markets today.
Dr. Reddy’s Surges To Highest In Nearly Three Years After Q3 Results
Shares of Dr. Reddy’s Laboratories Ltd. rose as much as 4.73 percent to Rs 3,174.90 apiece—the highest since Feb. 6, 2017. The company reported its December quarter results on Monday.
The drugmaker reported loss of Rs 570 crore in the third quarter of 2019-20, as against Rs 485 crore profit a year ago, on the back of revenue that rose 14 percent year-on-year to Rs 4,384 crore. The loss was on account impairment costs, a bulk of of which was towards the generic version of Nuvaring.
Dr. Reddy’s Q3 Results 2019-20: Preview (YoY)
- Loss of Rs 570 crore against profit of Rs 485 crore
- Revenue up 14 percent to Rs 4,384 crore
- Ebitda up 43 percent to Rs 1,019 crore
- Ebitda margin up 140 basis points to 23.2 percent
Trading volume in the stock was eight times the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 44 percent were at the ask price and 34 percent were at the bid, according to data.
Dish TV Falls After 9 Million Shares Change Hands In Bunched Trade
Shares of Dish TV India Ltd. fell as much as 2.80 percent to Rs 13.90 apiece.
This, after 9 million shares of the company changed hands in a bunched trade but the identity of buyers and sellers wasn’t immediately known, according to Bloomberg.
On Jan. 21, 2020, Bloomberg reported that Dish TV’s merger talks with Airtel Digital TV have stalled due to differences over the deal structure.
Essel Group’s Dish TV has opted to explore a sale of the business for cash instead of an all-stock merger, the report quoted several people as saying. The direct-to-home arm of Bharti Airtel Ltd. remained committed to offering shares, contributing to stalemate, according to the people, who asked not to be identified as the discussions are private.
Trading volume in the Dish TV stock was 47 percent below the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 56 percent were at the ask price and 43 percent were at the bid, according to the data.
Biocon Falls After U.S. FDA Observations For Bengaluru Plant
Shares of Biocon Ltd. fell as much as 2.84 percent to Rs 286.00 apiece after the United States Food and Administration issued five observations for the company’s Bengaluru plant.
The U.S. FDA had between Jan. 20 and Jan. 24 conducted a pre-approval inspection and good manufacturing practice inspection of the plant that makes active pharmaceutical ingredients, according to the company’s statement to the stock exchanges Monday.
Biocon said it will respond to the U.S. FDA with a corrective and preventive action plan and is confident of addressing observations expeditiously.
The drugmaker’s shares are up 0.3 percent in the past five days and rose 0.2 percent in the past 30 days, Bloomberg data shows. The stock has declined 12 percent in the past 52 weeks, according to the data.
Fortis Healthcare Rises To Highest In More Than 10 Weeks
Shares of Fortis Healthcare Ltd. rose 2.58 percent to Rs 157.15 apiece—the highest since Nov. 15, 2019.
The Securities and Exchange Board of India has urged the Supreme Court of India to allow Malaysian healthcare provider IHH Healthcare Ltd. to proceed with an open offer for Fortis Healthcare, the Economic Times reported on Jan. 25, 2020.
SEBI said in its special leave petition that this is mandatory under India’s takeover code as the investor holds a 31.17 percent stake after having subscribed to a preferential allotment of shares in November 2018.
Fortis Healthcare shares are up 9.4 percent in the past five days and rose 19 percent in the past 30 days, Bloomberg data shows. The stock has advanced 16 percent in the past 52 weeks, according to the data.
Indostar Capital Rises To Highest In More Than Four Months
Shares of Indostar Capital Finance Ltd. rose as much as 7.53 percent to Rs 279.80 apiece—the highest since Sep. 17, 2019.
Canada’s Brookfield Asset Management Inc. is in talks to acquire a majority stake in Mumbai-based Indostar Capital Finance, the Economic Times reported on Jan. 25, 2020, citing two people with direct knowledge of the matter.
The asset manager focussed on alternative assets could either buy the promoters’ stake in the finance company, owned by Everstone Capital and Goldman Sachs, or subscribe to preference shares by the firm, the people said. The deal could also be a mix of promoter stake sale and preference share allotment, they said.
Trading volume in the Indostar stock was triple the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 40 percent were at the ask price and 57 percent were at the bid, according to the data.
IndiGo Rises To Highest In More Than 10 Weeks Ahead Of Q3 Results
Shares of InterGlobe Aviation Ltd. rose as much as 0.79 percent to Rs 1,513.40 apiece—the highest since Nov. 15, 2019. The operator of IndiGo airlines is expected to announce its December quarter results today.
IndiGo Q3 Results 2019-20: Preview (YoY)
- Net profit estimated at Rs 268 crore
- Revenue estimated at Rs 8,920 crore
- Ebitda estimated at Rs 1,470 crore
Trading volume in the IndiGo stock was almost the same as the 20-day average for this time of the day, Bloomberg data shows. Of the shares were traded, 49 percent were at the ask price and 35 percent were at the bid, according to the data.
Wockhardt Surges After Posting First Profit In Three Years
Shares of Wockhardt Ltd. rose as much as 17.06 percent to Rs 350.00 apiece—the highest since Jul. 18, 2019. This after the company in the December quarter posted its first profit in three years, according to Bloomberg.
Wockhardt Q3 Results 2019-20: Key Highlights (YoY)
- Net profit at Rs 9.63 crore vs loss of Rs 82.17 crore a year ago
- Revenue fell 17 percent to Rs 87 crore
- Other income at Rs 17.2 crore
- Total costs at Rs 87 crore
- Ebitda as Rs 110 crore vs Rs 19 crore a year ago
- Net tax gain at Rs 2.79 crore in Q3
The marked improvement in operational performance and cost rationalisation led to first profit in three years, Wockhardt said in a filing to the stock exchanges.