Stocks Radar: Ambuja Cements, Divis Labs, Emami, Dilip Buildcon
Indian equity benchmarks fluctuated between gains and losses in opening trade amid uncertainty over U.S.-China trade talks.
The S&P BSE Sensex and the NSE Nifty 50 Index traded nearly 0.4 percent higher at 35,665.50 and 10,682.70 respectively, as of 10:10 a.m. The market breadth was tilted in favour of buyers. 10 of the 11 sectoral gauges gained, led by a 2.1 percent rise in the NSE Nifty Realty Index. NSE Nifty IT Index was the only sectoral loser, down 1.23 percent.
Here Are The Stocks Moving The Market This Morning
Emami Gains After Promoters Offload Stake
Shares of the consumer goods company rose as much as 3.3 percent to Rs 373.70 per share.
Emami promoters sold 10 percent stake in Emami Ltd. for around Rs 1,600 crore to pare debt, according to its exchange filing. After the divestment, the promoters’ stake in the maker of Boro Plus antiseptic cream will come down to 62.74 percent from 72.74 percent.
The stock declined 33 percent in the last 12 months compared with 4.4 percent gain in the S&P Sensex Index.
Dilip Buildcon Gains For The Tenth Straight Session
Shares of the infrastructure developer extended gains for the tenth straight trading session, its longest on record. The scrip rose as much as 3.6 percent to Rs 476.80 per share.
Trading volume was almost four times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
DHFL Falls After Transactions Under Tax Scanner
Shares of the non-bank lender pared opening gains and fell 1.5 percent to Rs 126.90 apiece.
Dewan Housing Finance Ltd., in an exchange notification, said that it received a notice from the tax department seeking evidence on certain aspects of books of accounts. The company also stated in the press release that the notice does not refer to any suspicious transactions.
Divis Laboratories Declines After Tax Probe
Shares of the Hyderabad-based specialty pharma company declined for the fourth straight session as it fell 3.2 percent to Rs 1,525 per share.
Search enquiry proceedings were being conducted at the company’s head office and manufacturing sites by the tax department, according to its exchange filing.
The stock traded 30 times its estimated earnings per share for the coming year, according to data compiled by Bloomberg.
Ambuja Cements Gains After Earnings Announcement
Shares of the cement manufacturer rose 2.4 percent intraday to Rs 202.80 apiece after its results for the December-ended quarter were announced on Monday.
Key Highlights: (Q4 CY18, YoY)
- Revenue up 5.5 percent to Rs 2,863.3 crore.
- Net profit up 58.8 percent to Rs 537.4 crore.
- Ebitda down 25.3 percent to Rs 403.6 crore.
- Margin at 14.1 percent versus 19.9 percent.
- Other income up 77 percent to Rs 85 crore.
- Inventory loss of Rs 130.8 crore in base quarter.
- Tax credit of Rs 333.2 crore.
Here’s What Brokerages Had To Say On The Stock:
- Maintained ‘Neutral’, raised price target to Rs 255 from Rs 233.
- December quarter missed estimates due to lower realisation and higher power and fuel cost.
- Cost savings from lower fuel costs to realise in the first half of 2019.
- Price decline in East and West led to decline in realisation.
- Maintained ‘Hold’ with a price target of Rs 220.
- December quarter disappointed again on weak margin.
- Higher-than-industry cost inflation dents margin.