Stocks Radar: Axis Bank, Asian Paints, Bajaj Finserv, RBL Bank, Reliance Power

Indian equity benchmarks fluctuated between gains and losses in the opening trade. The Sensex and the Nifty 50 Index traded little changed at 38,997 and 11,592, respectively. The broader market represented by the NSE Nifty 500 Index rose as much as 0.16 percent.

The market breadth was tilted in favour of buyers as 827 stocks advanced and 497 declined on the National Stock Exchange.

Six of the 11 sectoral gauges gained, led by the 0.46 percent rise in the NSE Nifty PSU Bank Index. The NSE Nifty IT Index was the top loser, down 0.59 percent.

Here Are The Stocks Moving The Market This Morning

RBL Bank Drops After Q2 Results

Shares of RBL Bank fell as much as 9.9 percent to Rs 258.30 apiece after the lender’s profit fell in the quarter ended September.

Key Earnings Highlights (Q2, YoY)

• Net interest income up 46.5 percent at Rs 868.7 crore. (Estimate: Rs 815 crore)
• Net profit down 73.4 percent to Rs 54.3 crore. (Estimate: Rs 170 crore).
• Provisions stood at Rs 533.3 crore versus Rs 139.7 crore. (Estimate: Rs 213.2 crore QoQ)
• Gross NPA stood at 2.6 percent against 1.38 percent in the April-June quarter.
• Net NPA stood at 1.56 percent compared with 0.65 percent in the preceding three months.

Infosys Swings After Large Trades

Shares of India’s second-largest IT company swung between gains and losses after suffering their worst trading day in six years on Tuesday. The stock fell saw a high of Rs 655.45 and a low of Rs 615.10.

About 20 lakh shares of the company changed hands in two large deals, Bloomberg data showed. Buyers and sellers were not known immediately.

The Bengaluru-based software developer lost Rs 53,000 crore in market capitalisation on Tuesday after its stock tumbled 16.6 percent on an anonymous whistleblower letter alleging its Chief Executive Officer Salil Parekh of dressing up the company’s books.

L&T Swings On Winning ‘Mega’ Order From HPCL

Shares of Larsen & Toubro fluctuated between gains and losses to trade 0.19 percent higher at Rs 1,445.35 apiece.

The company’s hydrocarbon engineering unit received an order for an EPCC project from Hindustan Petroleum Corporation Ltd. for residue up-gradation Facility, according to its exchange filing. The construction company said the order is valued at more than Rs 7,000 crore.

Of the shares traded, 40 percent were at the ask price and 39 percent were at the bid.

Reliance Power Extends Rally

Shares of Reliance Power extended rally for the fourth straight trading session. The stock rose as much as 12.7 percent to Rs 3.10 a share.

The trading volume was more than seven times its 20-day average, according to Bloomberg data. The stock has declined 89 percent in the past 12 months compared to a 15 percent gain in the Sensex.

Coromandel International Jumps The Most In Over A Month, Shares At Six-Month High

Shares of Coromandel International rose as much as 6.8 percent, the most since Sept. 20, to Rs 446.70, their highest since April 24.

The company’s board approved amalgamation of two wholly owned arms with self.

Trading volume was almost nine times its 20-day average, according to Bloomberg data. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Stocks Reacting To Results

Axis Bank (Q2, YoY)

• Stock rose as much as 2.4 percent to Rs 730.
• Net interest income up 16.6 percent to Rs 6,101.8 crore (Estimate: Rs 6,056 crore)
• Net loss at Rs 112.1 crore versus net profit at Rs 789.6 crore (Estimate: Rs 905 crore profit)
• Provisions at Rs 3,518.4 crore versus Rs 2,927.4 crore (Rs 3,814.6 crore QoQ) (Estimate: Rs 5534 crore)
• GNPA at 5.03 percent versus 5.25 percent QoQ
• NNPA at 1.99 percent versus 2.04 percent QoQ
• Tax expense higher by Rs 2,138 crore due to write-down of deferred tax asset pertaining to earlier years.

Asian Paints (Q2, YoY)

• Stock fell as much as 1 percent to Rs 1,762.
• Revenue up 9.4 percent to Rs 5,050.7 crore versus Rs 4,615.5 crore (Estimate: Rs 5,220.5 crore).
• Net profit up 67.5 percent at Rs 823.4 crore versus Rs 491.6 crore (Estimate: Rs 677 crore).
• Ebitda up 13 percent at Rs 954.8 crore versus Rs 844.7 crore (Estimate: Rs 1021 crore).
• Margin at 18.9 percent versus 18.3 percent (Estimate: 19.6 percent).
• Deferred tax reversal of Rs 149.7 crore in current quarter.
• Decorative business segment in India registered high double-digit volume growth.
• Declared dividend of Rs 3.35 per share .

Bajaj Finserv (Q2, YoY)

• Stock rose as much as 3.3 percent to Rs 8,276.60.
• Revenue up 46.6 percent to Rs 14,221.9 crore.
• Net profit up 71 percent at Rs 1203.7 crore.

ICICI Prudential Life Insurance (Q2, YoY)

• Stock rose as much as 1.2 percent to Rs 485.90.
• Gross premium up 6.6 percent to Rs 8,190.8 crore.
• Net income up 1 percent to Rs 301.9 crore.
• 13TH Month persistency at 82 percent versus 80.7 percent
• H1FY20 VNB margins at 21 percent versus 17 percent

Indiamart Intermesh (Q2, YoY)

• Stock rose as much as 3.3 percent to Rs 2,098.
• Revenue up 27.8 percent to Rs 156.6 crore.
• Net profit down 57.4 percent to Rs 8.7 crore.
• Ebitda up 61.3 percent to Rs 36.3 crore.
• Margin at 23.2 percent versus 18.4 percent.
• Tax impact related to change in tax rate and law reduced profits by Rs 31.4 crore.
• Indian supplier forefronts up 6 percent to 5.7 million.
• Registered buyers up 29 percent to 93 million.
• Paying subscription suppliers up 15 percent to 1,37,000.

Oriental Bank of Commerce (Q2, YoY)

• Stock rose as much as 5.3 percent to Rs 52.95.
• Net interest income up 14.7 percent to Rs 1,455.5 crore.
• Net profit up 23.8 percent to Rs 125.9 crore.
• Provisions at Rs 1050.3 crore versus Rs 832 crore (Rs 865.5 crore QoQ).
• GNPA at 12.53 percent versus 12.56 percent QoQ.
• NNPA at 5.94 percent versus 5.91 percent QoQ.

Mahindra & Mahindra Financial Services (Q2, YoY)

• Stock fell as much as 3.8 percent to Rs 328.30.
• Net interest income up 7.4 percent to Rs 1,461.2 crore.
• Net profit down 38.6 percent to Rs 261.5 crore.
• Profit lower by Rs 50 crore due to tax adjustment.
• Value of asset financed down 10 percent to Rs 9747 crore.

CEAT (Q2, YoY)

• Stock fell as much as 1.9 percent to Rs 942.30.
• Revenue down 4.6 percent to Rs 1,691.6 crore.
• Net profit down 30.4 percent to Rs 44 crore.
• Ebitda up 7 percent to Rs 170.4 crore.
• Margin at 10.1 percent versus 9 percent
• Finance cost up two tines, depreciation up 41 percent
• Raw material as percent of sales at 58.9 percent versus 60.1 percent

Syngene International (Q2, YoY)

• Stock rose as much as 5.4 percent to Rs 344.35.
• Revenue up 11 percent to Rs 464.6 crore.
• Net profit up 63.6 percent to Rs 128.1 crore.
• Ebitda up 2.8 percent to Rs 136 crore.
• Margin at 29.3 percent versus 31.6 percent
• Exceptional gain of Rs 71.3 crore in the current quarter due to an insurance receivable from a claim.

Sharda Cropchem (Q2, YoY)

• Stock fell as much as 4.7 percent to Rs 276.65.
• Revenue up 4.9 percent at Rs 324.2 crore.
• Net loss at Rs 5.6 crore versus net profit at Rs 16.2 crore.
• Ebitda down 15 percent to Rs 28.8 crore.
• Margin at 8.9 percent versus 11 percent
• Depreciation up 68 percent to Rs 33 crore.
• Other income up 4.9 times to Rs 8.8 crore.
• Raw material as percent of sales at 73 percent versus 69.2 percent.