Stocks Radar: ACC, Cyient, IndiGo, Vodafone Idea, Thermax
A look at the stocks moving the markets today.
Indian equity benchmarks opened higher but soon pared their gains to trade a tad lower. Losses in Yes Bank and automobile stocks dragged down the indices. The S&P BSE Sensex and the NSE Nifty 50 Index fell nearly 0.5 percent to trade at 38,710.44 and 11,536, respectively, as of 10:05 a.m.
The market breadth was tilted in favour of sellers. All the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 1.35 percent fall in the Nifty Auto Index.
Here Are The Stocks Moving The Market This Morning
Thermax Rises After Winning Rs 471-Crore Order
Shares of the engineering solutions provider rose as much as 2.98 percent to Rs 1,122.85 apiece—the highest in more than a month.
The company won a Rs 471-crore order from a state-run power company to set up two flue gas desulphurisation systems at their thermal power plant in Jharkhand, according to an exchange filing.
The stock trades at 34 times its estimated earnings per share for the coming year. Its trading volume is more than 19 times the 20-day average for this time of the day, Bloomberg data showed.
IndiGo Gains Ahead Of Q1 Results
Shares of InterGlobe Aviation Ltd. gained as much as 1.90 percent to Rs 1,486.60 apiece. India’s largest airline operator is scheduled to announce its June quarter earnings today.
IndiGo’s revenue and operating profit for the three months ended June are expected to be the highest ever as yields rose, oil prices fell, and passenger growth remained higher for the airline during the period.
Meanwhile, the Ministry of Corporate Affairs has sought explanation from the company on allegations of corporate governance lapses raised by co-founder and promoter Rakesh Gangwal.
Earlier this month, Gangwal had accused another co-promoter Rahul Bhatia of questionable related-party transactions, violations of governance regulations and the company’s code of conduct.
The stock has advanced 38 percent in the past 52 weeks, Bloomberg data showed.
Vodafone Idea Falls On Plans To Sell Fiber Assets
Shares of India’s largest mobile operator fell as much as 1.33 percent to Rs 11.15 apiece.
The company hired Bank of America Corp. and Morgan Stanley to help sell its fiber assets to bolster finances, Bloomberg reported quoting people aware of the matter. The bankers will initiate discussions with potential buyers for the assets, which could be valued at $1.9 billion, it said.
The stock trades at 27 percent below the Bloomberg consensus one-year target price.
ACC Gains After June-Quarter Results
Shares of the cement maker gained as much as 5.13 percent—the most in over four months—to trade at Rs 1,647.55 apiece.
The company reported a rise in its revenue and profit for the quarter ended June.
Key Highlights:
Standalone (Q2, Year-On-Year):
- Revenue rose 7.8 percent to Rs 4,149.72 crore versus Rs 3848.25 crore.
- Net profit increased 38.6 percent to Rs 451.3 crore versus Rs 325.51 crore.
- Earnings before interest, tax, depreciation and amortisation was up 25.3 percent at Rs 781.68 crore versus Rs 623.86 crore.
- Margin was at 18.8 percent against 16.2 percent.
- Ebitda/per tonne stood at Rs 1,100 per tonne.
- Sales volume stood at 7.2 metric tonnes.
ACC trades at 23 times its estimated earnings per share for the coming year, according to Bloomberg data.
Cyient Trades At Nearly Two-Year Low
Shares of the company slumped nearly 9.48 percent to trade at Rs 482.70—the lowest since September 2017.
The company’s revenue missed estimates for the quarter ended June.
Key Highlights:
Consolidated (Q1, Sequential)
- Revenue was down 6.4 percent to Rs 1,089 crore.
- Net profit fell 49 percent to Rs 90 crore.
- EBIT was down 30 percent to Rs 98.8 crore.
- Margin stood at 9.1 percent versus 12.1 percent.
The Relative Strength Index on the stock was below 30, indicating it may be ‘Oversold’. The trading volume was 50 times the 20-day average for this time of the day, Bloomberg data showed.