Stocks Radar: Bank Of Baroda, Maruti Suzuki, PNB, Tata Motors, Tata Steel

The Indian stock markets opened lower today with benchmark S&P BSE Sensex falling as much as 0.3 percent to 37,820.03 and the NSE Nifty 50 shedding as much as 0.04 percent to 11,250.65, as of 9:38 a.m.

The market breadth was tilted in favour of sellers. However, six out of eleven sectoral gauges compiled by NSE advanced, led by the NSE Nifty PSU Bank Index’s 1.62 percent rise. The NSE Nifty IT Index was the top loser, down 0.38 percent.

Here’s a look at the stocks in news that are moving the markets today:

PNB Gains After Getting Approval To Raise Rs 5,000 Crore

Shares of Punjab National Bank rose 1.59 percent to Rs 67.10 after the lender’s board of directors approved a plan to raise up to Rs 5,000 crore by way of equity in one or more tranches, the bank said in an exchange filing Thursday.

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

Tata Steel Falls After Increasing Stake In Unit

Shares of Tata Steel Ltd. fell as much as 1.07 percent to Rs 435.65 apiece, its lowest since May 16, 2017.

Tata Steel bought 2.6 crore shares of Tata Sponge Iron Ltd. at Rs 500 each via a rights issue in a transaction worth Rs 1,292.20 crore, the steelmaker said in an exchange filing. With this, Tata Steel’s stake in Tata Sponge Iron has increased from 54.5 percent to 75.91 percent. Tata Sponge Iron’s share price rose 4.98 percent to Rs 503 each.

The Tata Steel stock trades 6.7 times its estimated earnings per share for the coming year, according to data compiled by Bloomberg.

Maruti Suzuki At Over Two-Year Low

Shares of Maruti Suzuki India Ltd. fell as much as 1.27 percent to Rs 5,683.90 apiece, its lowest since January 23, 2017, ahead of its June quarter results announcement later today.

Maruti Suzuki Q1 Results 2019-20: Preview (standalone, year-on-year)

• Revenues seen at Rs 19,070 crore versus Rs 22,459 crore, down 15 percent.
• Ebitda seen at Rs 1,990 crore versus Rs 3,351 crore, down 40 percent.
• Profit seen at Rs 1,340 crore versus Rs 1,973 crore, down 32 percent.
• Margin seen at 10.4 percent versus 14.9 percent.

The stock trades 23 times its estimated earnings per share for the coming year and has declined 39 percent in the past 52 weeks.

Bank Of Baroda Gains After Returning To Profit

Shares of Bank of Baroda advanced 3.97 percent to Rs 113.90 after it swung back to profit in the June quarter.

Net profit in the April-June period stood at Rs 710 crore compared to a net loss of Rs 49 crore in the year-ago period, according to an exchange filing.

This was the lender’s first quarterly results announcement since its merger with Dena Bank and Vijaya Bank in April this year.

The stock’s trading volume was triple the 20-day average for this time of the day.

Bank of Baroda Q1 Results 2019-20: Highlights (year-on-year)

• Net interest income, or core income of the bank, rose 2.6 percent to Rs 6,496 crore in Q1, in line with the Rs 6,393-crore estimate.
• The bank’s operating income was up 4.3 percent over the year at Rs 8,413 crore.
• Net interest margin declined to 2.73 percent in Q1 from 2.78 percent in the year-ago period.
• The bank’s gross non-performing assets stood at Rs 69,174 crore in Q1.
• Gross NPA ratio was at 10.28 percent compared to 10.02 percent in Q4FY19.
• Net NPA ratio rose 30 basis points sequentially to 3.95 percent in Q1.

Tata Motors Slumps After Q1 Results

Shares of Tata Motors Ltd. declined 4.30 percent to Rs 138.10 apiece after the automaker reported its fourth loss in five quarters.

Net loss widened substantially to Rs 3,680 crore in the June quarter from Rs 1,862.70 crore in the year-ago period, as the company was hit by an auto sector slowdown in India and JLR sales woes elsewhere.

Analysts tracked by Bloomberg were expecting a loss of Rs 1,970 crore.

Tata Motors Q1 Results 2019-20: Key Highlights (year-on-year)

• Revenue fell 7 percent to Rs 61,647 crore.
• Operating margin narrowed 130 basis points to 7.5 percent.
• Margin for JLR fell 200 basis points to 4.2 percent.
• JLR’s revenue fell 3 percent to £5.07 billion.

The stock trades 43 percent below Bloomberg consensus one-year target price. It declined 44 percent in the past 52 weeks compared with Sensex’s 2.6 percent gain.

Vedanta Worst Performer on Sensex

Shares of Vedanta Ltd. fell as much as 3.41 percent to Rs 165.60 apiece, making it the worst performed on the Sensex.

Vedanta’s parent Volcan Investments Ltd. and its subsidiary Cairn India will unwind the structured investment in Anglo American Plc ahead of the “originally envisaged schedule”, according to an exchange filing.

Trading volume was almost quadruple the 20-day average for this time of the day. The stock has declined 23 percent in the past 52 weeks.