Stocks Radar: TCS, Delta Corp, Hero MotoCorp, Oberoi Realty, Titan
Indian equity benchmarks opened lower, led by declines in HDFC twins and Titan Company Ltd. The S&P BSE Sensex fell 0.36 percent to 38,579.36 and the NSE Nifty 50 Index declined as much as 0.47 percent to trade at 11,503.85 as of 9:54 a.m.
The market breadth was tilted in favour of sellers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 0.86 percent fall in the Nifty Financial Service Index.
Here are the stocks moving the market today morning:
Titan Slumps Most In Over Two Years
Titan shares tumbled as much as 10.4 percent, the most since November 2016, to Rs 1,121.75 apiece.
That came after India’s largest branded jewellery and watchmaker said it expects a muted first quarter amid a slowdown in the economy. “A tough macroeconomic environment has impacted consumption, and rising gold prices in June further deterred customers from buying jewellery,” it said in an exchange filing.
Titan expects its jewellery business, which contributes more than four-fifths to its consolidated revenue, to grow 13 percent on a yearly basis in the quarter ended June. That compares with a 23 percent growth in the entire previous fiscal.
Titan’s stock trades at 56 times its estimated earnings per share for the coming year, Bloomberg data showed.
Hero MotoCorp Gains On Price Hikes
Shares of two-wheeler maker Hero MotoCorp Ltd. snapped a two-day losing streak after it hiked prices of its models. The stock gained as much as 1.2 percent to trade at Rs 2,408.20 apiece.
The company increased prices of its motorcycles and scooters by 1 percent across models (ex-showroom), effective July 8, according to its exchange filing.
The stock trades at 16 percent below the Bloomberg consensus one-year target price.
Oberoi Realty Falls For Third Straight Session
Shares of property developer Oberoi Realty Ltd. declined for the third session in a row. The stock fell as much 3.8 percent to Rs 532.25 apiece.
Tuesday’s drop came after Bank of America Merrill Lynch downgraded the stock to ‘Neutral’ from ‘Buy’. The price target was fixed at Rs 627 apiece, indicating a potential upside of 13 percent from previous close.
Here’s what BofAML had to stay on the Oberoi Realty stock:
- New affordable housing definition to hurt long-term growth.
- Change in definition to not impact current projects.
- Rich valuations offer limited upside.
The stock trades 10 percent below the Bloomberg one-year consensus target price.
Click here to read today’s analysts’ recommendation to their clients.
OMCs Rally On Falling Crude Prices
Shares of oil marketing companies rallied as crude prices softened. The Brent crude prices fell for the second straight session. The Asian crude benchmark declined as much as 0.6 percent to $63.76 a barrel.
Here’s how the OMCs fared
Delta Corp Falls For Fifth Straight Session
Shares of the casino operator Delta Corp. Ltd. extended decline for the fifth straight day. The stock fell as much as 2.8 percent to Rs 164 a share. The company announced its June quarter results on Monday.
Q1 Review (Year-On-Year)
- Revenue down 0.4 percent to Rs 186.5 crore.
- Net profit up 2.7 percent to Rs 42.5 crore.
- Ebitda up 1.5 percent to Rs 67.7 crore.
- Margin widens to 36.3 percent from 35.6 percent.
- Revenue of the gaming operations segment rose 3 percent to Rs 181.4 crore.
The stock has declined 28 percent in the past 12 months compared with a 9 percent gain in the Sensex, Bloomberg data showed.
TCS Falls Ahead of Earnings
Q1 Preview (Quarter-On-Quarter):
- Dollar revenue expected to rise 1.2 percent at $5,536 million.
- Net profit is expected to fall 3.4 percent to Rs 7,853 crore.
- Revenue is seen to rise 1.2 percent at Rs 38,476 crore.
- EBIT expected to fall 2 percent at Rs 9,349 crore.
- EBIT margin seen at 24.3 percent versus 25.1 percent.
The TCS stock traded 23 times its estimated earnings per share, according to Bloomberg data.