Stocks Radar: Apollo Hospitals, HDFC AMC, Mindtree, Sudarshan Chemical, Yes Bank
The Bombay Stock Exchange building in Mumbai. (Photographer: Prashanth Vishwanathan/Bloomberg)

Stocks Radar: Apollo Hospitals, HDFC AMC, Mindtree, Sudarshan Chemical, Yes Bank

The Indian stock markets today opened lower with Yes Bank Ltd. emerging as the top loser after reporting a 91 percent slump in profits in the June quarter of 2019-20.

As of 10:03 a.m., the S&P BSE Sensex fell as much as 0.12 percent to 39,172.03 and the NSE Nifty 50 fell as much as 0.17 percent to trade at 11,667 points.

The market breadth was tilted in favour of sellers. Ten of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 1.37 percent fall in the Nifty Metal Index.

A look at the stocks moving the markets today:

Apollo Hospitals Falls OnPromoter Stake Sale

Shares of Apollo Hospitals Enterprise Ltd. chain dropped 1.35 percent to Rs 1,365.19 apiece today after its managing director spelt out the promoters’ stake sale plans.

The family which controls Apollo Hospitals is looking to sell assets or bring an outside investor in to pare debt, Apollo’s Managing Director Suneeta Reddy told Bloomberg in an interview. The promoters, who have pledged their Apollo Hospitals shares to banks as collateral, aim to reduce shareholding in the company to 20 percent from the current 78 percent, Bloomberg quoted Reddy as saying.

The stock trades at 50 times its estimated earnings per share for the coming year.

Sudarshan Chemical Jumps After Stake Sale To Amansa Holdings

Shares of Sudarshan Chemical Industries Ltd. rose much as 10.47 percent to Rs 352 after asset management firm Amansa Holdings bought 9.63 lakh shares, or 1.39 percent stake, of the company.

Trading volume was almost 60 times its 20-day average, Bloomberg data showed. The stock trades at 18 times its estimated earnings per share for the coming year, according to Bloomberg data.

Mindtree At Over 17-Month Low After Q1 Results

Shares of software services firm Mindtree Ltd. fell 10.62 percent to Rs 670.95, the lowest in over one year, after its June quarter results showed that its profit halved and margin narrowed year-on-year due to increased employee costs.

Margins of the firm took a one-off hit worth 220 basis points in the June quarter due to special payment to its employees to mark the company’s 20th anniversary.

The relative strength index on the stock was below 30, indicating it may be oversold.

Mindtree Q1 Result 2019-20: Key Highlights

  • Dollar revenue was up 0.8 percent sequentially to $264.2 million.
  • Digital service revenue now contributes nearly 40 percent to total revenue.
  • Operating margin for the technology and media sector plunged 9.1 percentage points to 12.3 percent sequentially.
  • Travel and hospitality segment weakened, with margin falling 680 basis points to 6 percent over the quarter.

Yes Bank At Lowest In Five Years After Q1 Results

Shares of Yes Bank Ltd. fell 19.56 percent to Rs 79.15, their lowest level since March 2014, after its profit fell 91 percent year-on-year to Rs 114 crore in the June quarter as Chief Executive Ravneet Gill undertook a large-scale bad loan clean-up exercise.

Yes Bank’s asset quality, therefore, worsened during the June quarter. Its gross non-performing asset ratio rose to 5.01 percent from 3.22 percent in the previous quarter.

The bank, however, returned to profit on a quarter-on-quarter basis.

Its trading volume was almost four times the 20-day average for this time of the day.

Yes Bank Q1 Result 2019-20: Key Highlights

  • Net profit of the lender fell to Rs 114 crore from Rs 1,260 crore a year ago.
  • Net interest income, or core income, rose 2.8 percent to Rs 2,281 crore.
  • Gross NPA ratio rose to 5.01 percent from 3.22 percent in the previous quarter.
  • Net NPA ratio rose to 2.91 percent from 1.86 percent in Q4FY19.
  • In absolute terms, bad loans rose 53 percent to Rs 12,092 crore.
  • Net slippages during the quarter stood at Rs 4,554 crore.
Stocks Radar: Apollo Hospitals, HDFC AMC, Mindtree, Sudarshan Chemical, Yes Bank

Wipro Rises After Q1 Profit Meets Estimates

Shares of IT firm Wipro Ltd. advanced 3.27 percent to trade at Rs 268.10 apiece after net profit slipped in the June quarter but managed to meet estimates, even as margins narrowed due to higher employee costs and a stronger rupee.

The stock trades 16 times its estimated earnings per share for the coming year.

Wipro Q1 Result 2019-20: Key HIghlights

  • Net profit fell 3.9 percent to Rs 2,388 crore in Q1FY20 on a sequential basis.
  • Revenue fell 2.4 percent to Rs 14,786 crore over the previous quarter.
  • Operating profit fell 9.2 percent sequentially to Rs 2,452 crore in Q1FY20.

HDFC AMC Shares Hit Record High

Shares of HDFC Asset Management Company Ltd. extended gains for the third trading session, rising as much as 3.5 percent to hit an all-time high at Rs 2,147 apiece.

HDFC AMC had reported its June quarter results on Tuesday.

HDFC AMC Q1 Result 2019-20: Key Highlights

  • Net profit at Rs 292 crore versus Rs 205 crore a year ago.
  • Revenue at Rs 504.4 crore versus Rs 471.2 crore a year ago.
Stocks Radar: Apollo Hospitals, HDFC AMC, Mindtree, Sudarshan Chemical, Yes Bank

The stock has risen 11 percent in the past five trading sessions and advanced 18 percent in the past 30 days. The stock traded at 37 times its estimated earnings per share for the coming year, according to data compiled by Bloomberg.

The HDFC AMC stock was also upgraded to ‘Buy’ from ‘Hold’ by HSBC.

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