Stocks Radar: Aurobindo Pharma, IndiGo, Power Grid, West Coast Paper
Here are the stocks moving the market in today’s trade.
Indian equity benchmarks gained momentum after fluctuating between gains and losses in opening trade.
The S&P BSE Sensex advanced as much as 0.54 percent to 39,716.15 and the NSE Nifty 50 Index rose nearly 0.47 percent to 11,916, as of 10:15 am. The market breadth was tilted in favour of buyers.
Ten of the 11 sectoral gauges compiled by the National Stock Exchange rose, led by the Nifty PSU Bank Index’s 1 percent gain. The Nifty Auto Index was the only sectoral loser, down 0.32 percent.
West Coast Paper Surges After Inking Deal
Shares of the Bangalore-based company surged 13 percent intraday to Rs 297 per share. The stock has gained 33 percent in the last five sessions.
International Paper entered into an agreement with West Coast Paper Mills Ltd. to sell its controlling stake in the company, according to an exchange filing. As per the tender offer, West Coast Paper Mills will acquire 51 percent to 60 percent stake in the company. International Paper currently holds 75 percent stake in the company.
Shares of International Paper APPM Ltd., on the other hand, declined for the third session in a row after it fell 4.5 percent intraday to Rs 408.70 apiece.
Tata Power Swings After Plans To Sell Stake In A Software Firm
Shares of the power generator fluctuated between gains and losses to trade at Rs 69.15 apiece as of 9:40 am.
Tata Power’s two arms entered into agreement to sell their entire stake in Nelito Systems Ltd. worth Rs 15.6 crore to Japan-based DTS Corporation.
The stock traded at 11 times its estimated earnings per share for the coming year, according to Bloomberg data.
Aurobindo Pharma Gains After CLSA Boost
Shares of the drugmaker rose 2.2 percent to Rs 702 per share.
CLSA upgraded to its recommendation on the stock to ‘Buy’ from ‘Outperform’. It also cut the price target to Rs 830, indicating a 20 percent upside from previous close.
Here’s what the brokerage firm had to say on the stock:
- Upgrade to ‘Buy’ on attractive valuations.
- U.S. continues to grow well despite a high base.
- Focus on integration of acquisitions over the next two years.
The stock has advanced 24 percent in the past 12 months compared to a 13 percent gain on the Nifty Index.
IndiGo Declines After Report On Engine Maker Change
Shares of the country’s largest airline declined for the third straight session after it fell nearly a percent to Rs 1,625.
Its parent InterGlobe Aviation Ltd. is planning to opt for CFM International’s LEAP1-A engines over its regular Pratt and Whitney models, reported Business Standard citing unidentified sources.
The stock traded at 27 times its estimated earnings per share for the coming year, Bloomberg data showed.
Power Grid Gains After Q4 Performance
Shares of the state-run company rose close to 2 percent to a one-month high of Rs 193.90 apiece. The company announced its March quarter results on Wednesday.
Net profit for the three-month period rose 51.9 percent year-on-year to Rs 3,054 crore, according to its exchange filing. That was higher than the Rs 2,442-crore estimate of analysts tracked by Bloomberg.
Other Key Highlights:
- Revenue up 18 percent to Rs 9,218.1 crore.
- Ebitda up 19.4 percent to Rs 7,793.4 crore.
- Margin at 84.5 percent versus 83.5 percent. Deferred tax reversal of Rs 6,013.9 crore.
- Transmission segment revenue up 19 percent to Rs 8,983.8 crore.
The trading volume was more than 11 times the 20-day average for this time of the day, Bloomberg data showed.
Rail Vikas Nigam Falls After Q4 Results
Shares of the state-run rail construction company declined nearly 3.7 percent to Rs 27.70 per share. The company reported its fourth-quarter results on Wednesday.
- Revenue up 29 percent to Rs 3,418.4 crore.
- Net profit up 13.6 percent to Rs 185.8 crore.
- Ebitda up 20.4 percent to Rs 177.4 crore.
- Margin at 5.2 percent versus 5.6 percent.
The relative strength index on the stock was over 70, indicating it may be overbought. The stock has advanced nearly 50 percent since its listing in April this year.