Stocks Radar: Avenue Supermarts, Federal Bank, Infosys, Maharashtra Scooters
Indian equity benchmarks declined for the third straight session and are poised for their longest losing streak in 20 days. The S&P BSE Sensex and the NSE Nifty 50 Index fell as much as 0.72 percent and 0.69 percent to 35,750.41 and 10,720.45, respectively.
The market breadth was tilted in favour of sellers. Ten of the 11 sectoral indices fell, led by a 1.44 percent fall in the NSE Nifty Realty Index. Only, NSE Nifty Pharma Index bucked the trend with a marginal 0.05 percent gain.
Here Are The Stocks Moving The Market This Morning
Infosys Best on Sensex, Nifty After Raising Forecast, Announcing Buyback
Shares of the software services exporter rose as much as 3.9 percent, the most since Nov. 28, to Rs 710.20 apiece.
Infosys hiked its constant currency guidance to 8.5-9 percent. It’s board also approved a buyback worth Rs 8,260 crore at a share price of not more than Rs 800 apiece involving 2.36 percent equity. Besides, the tech company declared a special dividend of Rs 4 a share. The buyback is at 17 percent premium to the current market price of Rs 683.5 apiece.
Key earnings highlights (Q3, QoQ)
- Net profit down 12.2 percent to Rs 3,610 crore.
- Dollar revenue up 2.3 percent to $2,987 million.
- Revenue up 3.8 percent at Rs 21,400 crore.
- EBIT down 10.5 percent at Rs 4,379 crore.
- Adjusted EBIT margin stood at 22.6 percent versus 23.7 percent.
Here’s what analysts had to say:
- Maintains ‘Buy’ and hiked price target to Rs 930 from Rs 910.
- December quarter review: stellar revenue growth and deal wins and raised guidance.
- Growth was broad-based led by key geographies, key verticals and digital focus.
- Growth acceleration, capital return and a demand recovery merit a re-rating.
- Maintains “Buy” and increased price target to Rs 800 from Rs 750.
- Strong performance; small miss on margin.
- Expects strong revenue growth in coming quarters due to recent performance and deal flow momentum.
- Remains positive on the back of improving business metrics and significant valuation gap to Tata Consultancy Services.
- Maintains “Buy” and cut price target to Rs 784 from Rs 820.
- Solid beat on revenue; margin weakness to continue.
- Announced buyback to restrict stock downside.
- Believes valuation gap with TCS to narrow.
Avenue Supermarts Slumps The Most Since Listing After Q3 Results
Shares of the hypermarket operator fell as much as 9.5 percent, the most since its market debut, to Rs 1,422.15 apiece.
The company missed analyst estimates due to higher costs on account of price cuts and extra working hours during the festive season.
Key earnings highlights (Q3, YoY)
- Net profit up 2 percent at Rs 257 crore.
- Revenue up 33 percent at Rs 5,451 crore.
- Ebitda up 7.5 percent at Rs 453 crore.
- Margin at 8.3 percent versus 10.3 percent.
- Added 4 stores during the quarter; Total store count at 164.
- Margin fell due to price cuts and higher operating hours during festive season.
Jammu & Kashmir Bank Gains After Q3 Profit Rises
Shares of Srinagar-based lender rose as much as 6.6 percent, the most in nearly three months, to Rs 38.70 apiece.
The company’s profit rose 43 percent on a yearly basis to Rs 104 crore during the October-December period, according to its stock exchange filing.
Key earnings highlights (Q3, YoY):
- Net interest income up 13 percent at Rs 882 crore.
- Net profit up 43 percent at Rs 104 crore.
- Provisions up 52 percent sequentially at Rs 263 crore.
- Gross NPA at 9.94 percent versus 9 percent in the preceding quarter.
- Net NPA at 4.69 percent versus 3.91 percent in the September quarter.
The trading volume was 222 times its 30-day average, Bloomberg data showed.
Federal Bank Falls Most In Four Months After Executive Director Resigns
Shares of the Kerala-based lender fell as much as 6.7 percent, the most in nearly four months, to Rs 89 apiece.
The bank, in its exchange filing, said its Executive Director Ganesh Sankaran will step down with effect from Feb. 15.
The stock declined 20.6 percent over the past 12 months compared to a 4.9 percent advance in the Sensex.
Maharashtra Scooters Hits A Record High
Shares of the automobile parts maker rose as much as 4.9 percent to hit an all-time high at Rs 3,649 apiece.
The trading volume was more than 11 times its 20-day average, Bloomberg data showed. The Relative Strength Index was 77, indicating the stock may be ‘Overbought’.