Stocks Radar: DHFL, Tata Power, TVS Motor, Vadilal Industries, Yes Bank

After declining for three straight sessions, Indian equity benchmarks fluctuated between gains and losses on Tuesday. The S&P BSE Sensex and the NSE Nifty 50 traded a tad higher at 38,055 and 11,356 points, respectively, as of 9:51 a.m.

The market breadth was tilted in favour of buyers. Six of the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by a 1.46 percent gain in the NSE Nifty Realty Index. The NSE Nifty Pharma Index was the top loser, down 0.48 percent.

Here are the stocks in news that are moving the markets today:

Vadilal Industries Falls After Chairman Resigns

Shares of ice cream maker Vadilal Industries Ltd. extended their decline for the fourth straight session. The stock fell as much as 1.64 percent to Rs 507.30 apiece.

The latest drop in Vadilal share price comes after Rajesh Gandhi resigned as the chairman of the company, effective July 22. Vijay Shah will succeed Gandhi, the company said in an exchange filing.

The stock’s trading volume was 44 percent below the 20-day average for this time of the day, Bloomberg data showed.

Tata Power Rises On Report On Asset Sale

Shares of Tata Power Company Ltd. gained as much as 1.04 percent to Rs 67.80 apiece on reports of an asset sale.

The company is seeking to sell assets worth Rs 2,500 crore to pare debt and fund its growth plans in India, The Hindu Business Line quoted Tata Power’s Chief Executive Officer Praveer Sinha as saying. The company is also planning to reduce its debt-equity ratio to less than 2 in the next 12 months, the report said.

The stock trades at 12 times its estimated earnings per share for the coming year, Bloomberg data showed.

Yes Bank Falls As Promoter Pledged Shares

Shares of Yes Bank Ltd. dropped as much as 4.44 percent to Rs 87.10 apiece after promoter Rana Kapoor pledged 10 crore shares, according to an exchange filing. It was done for security cover of promoter unit MCPL bonds, it said.

The stock has declined 77 percent in the past 52 weeks and trades 21 percent below the Bloomberg consensus one-year target price.

DHFL Gains On Likely Approval For Resolution Plan

Shares of Dewan Housing Finance Corporation Ltd. gained as much as 4.10 percent to Rs 54.65 apiece after the debt-ridden company said it’s in the “process of submitting a resolution plan to the lenders and they are expected to give an in-principle approval by end of July”.

The ability of DHFL to continue as a “going concern” is predicated upon its ability to monetise its assets, secure funding from the bankers or investors, restructure its liabilities and recommence its operations, the housing finance firm said in an exchange filing.

This came as joint auditors of DHFL listed several qualifications and disclaimers to the company’s annual financial statement and said its ability to continue as going concern is in “significant doubt”.

Besides, promoters of the company is in talks with private equity firms, including Lone Star, AION Capital, and KKR, for a strategic stake sale, PTI reported quoting people it didn’t name.

To be sure, the stock has declined 91 percent in the past 52 weeks, compared with the Sensex’s 3.3 percent gain, Bloomberg data showed.

TVS Motor Hits Six-Month Low

Shares of two-wheeler maker TVS Motor Company Ltd. fell as much as 2.09 percent to Rs 372 apiece—the lowest in more than six months.

That came after the company reported a 2.9 percent year-on-year decline in its net profit for the quarter ended June 30.

Meanwhile, the company said its Singapore arm will invest $7 million in Scienaptic Systems, a Delaware corporation, based in New York City, according to an exchange filing.

The Relative Strength Index on the stock was below 30, indicating it may be ‘Oversold’.

TVS Motor Q1 Results: Key highlights (year-on-year)

• Revenue rose 7.2 percent to Rs 4,468.6 crore.
• Net profit fell 2.9 percent to Rs 142.3 crore.
• Ebitda increased 10.8 percent to Rs 355.8 crore.
• Margins stood at 8 percent against 7.7 percent.