Stocks Radar: Affle India, Bharti Airtel, Dilip Buildcon, Dish TV, Lemon Tree, Tata Steel
Indian equity benchmarks opened higher on Thursday, inline with the Asian peers, driven by gains in IT stocks.
The S&P BSE Sensex rose as much as 0.36 percent to 36,822 points while the NSE Nifty 50 gained as much as 0.3 percent to 10,894.40 as of 10:20 am. The broader markets represented by the NSE Nifty 500 Index rose as much as 0.43 percent.
The market breadth was tilted in favour of buyers. Ten of the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by a 1.21 percent gain in the NSE Nifty PSU Index. The NSE Nifty Private Bank Index was the only loser, down 0.13 percent.
Here’s a look at the stocks in news moving the markets today:
Airtel Gains After Reports Of Singtel Raising Stake
Shares of the Bharti Airtel Ltd. rose 2.7 percent to Rs 376 apiece.
Singapore Telecommunications Ltd. is likely to raise its stake in Bharti Telecom, single largest shareholder in Airtel, to beyond 50 percent, according to a The Economic Times report citing sources.
Nineteen of the 28 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock. Six analysts recommended ‘Hold’ while three analysts recommended ‘Sell’.
Dish TV Rises After Clarifying On Merger Plans
Shares of direct-to-home operator Dish TV India Ltd. rose as much as 2.2 percent to Rs 23.2 apiece after the company, in an exchange filing on Thursday, said it was not aware of the news of its merger with Airtel Digital TV.
On Wednesday, Airtel Digital TV, private equity firm Warburg Pincus and Essel Group-owned Dish TV reached an agreement on merging the two businesses, an Economic TImes report said, adding that a formal announcement of the merger deal is expected in four-six weeks.
Dish TV shares have slumped 66 percent in the past 52 weeks compared to a 3.2 percent fall in the Sensex.
Affle India Jumps On Market Debut
Shares of Affle (India) Ltd. listed at Rs 926 apiece on the NSE, compared with its issue price of Rs 745—a premium of 24.3 percent. The shares rose as much as 28 percent intraday.
The Affle India IPO was subscribed 86.5 times on the final day of bidding on July 31, with highest demand coming from non-institutional investors. The IPO, which had price band of Rs 740-745 per share, receiving subscription for 29.2 crore shares.
Dilip Buildcon Gains After Promoter Plans To Cut Stake
Shares of Dilip Buildcon Ltd. rose as much as 3.8 percent to Rs 407.95 apiece, after promoters said they are planning to cut their equity stake in the construction firm to 8.64 lakh shares by selling stock in the open market.
The move will reduce their stake from 75.63 percent to 75 percent—meeting the capital markets regulator’s public shareholding norms.
The stock traded 53 percent below the Bloomberg consensus one-year target price.
Tata Steel At Over Two-Year Low After Q1 Results
Shares of Tata Steel Ltd. fell 4.4 percent intraday to Rs 365 apiece, its lowest in more than two years, after the steelmaker reported its June quarter results on Wednesday.
Tata Steel Q1 Results 2019-20: Key Highlight (YoY)
- Profit fell 64.30 percent to Rs 693.10 crore.
- Revenue rose 1.3 percent to Rs 35,947.1 crore.
- Operating profit fell 15.4 percent to Rs 5,376.8 crore.
- Margin narrowed 290 basis points to 15 percent.
The trading volume was almost five times the 20-day average for this time of the day, Bloomberg data showed.
Lemon Tree Slumps After Q1 Results
Shares of Lemon Tree Hotels Ltd. slumped as much as 7.8 percent to a lifetime low of Rs 52.50 apiece, after the hotels operator reported its June quarter results.
Lemon Tree Q1 Results 2019-20: Key Highlights (YoY)
- Revenue rose 11 percent to Rs 140.9 crore.
- Net loss at Rs 1.7 crore vs net profit of Rs 2.3 crore.
- Ebitda rose 28.4 percent to Rs 44.7 crore.
- Margin stood at 31.7 percent versus 27.4 percent.
- Finance cost rose 57 percent to Rs 30.9 crore.
The stock trades at 61 times its estimated earnings per share for the coming year, according to Bloomberg data.