Stocks Radar: Bajaj Auto, Biocon, Motherson Sumi, SpiceJet
Indian equity benchmarks rose higher in today’s trade led by HDFC Ltd. and ITC Ltd. The S&P BSE Sensex gained as much as 0.5 percent to 39,909 and the NSE Nifty 50 Index jumped up nearly 0.48 percent to 11,980.35.
The market breadth was tilted in favour of the sellers. However, eight of the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by the Nifty Auto Index’s 0.7 percent gain. The Nifty PSU Bank Index was the top sectoral loser, down 1 percent.
Maruti Suzuki Swings After Monthly Sales Falls The Most In Eight Years
Shares of the country’s largest automaker fluctuated between gains and losses to trade at Rs 6,921.80 apiece.
Maruti Suzuki India Ltd.’s sales declined for the third consecutive month, the most since August 2012, according to an exchange filing. The company sold 1.34 lakh units last month, a fall of 22 percent year-on-year.
The stock declined 22 percent in the past 12 months compared with the Sensex’s 13 percent gain.
Biocon Gains After Fixing Record Date For Bonus Shares
Shares of the Bengaluru-based company rose as much as 1.6 percent to Rs 548.20 apiece.
Biocon fixed June 13 as record date for issue of bonus shares, according to an exchange notification. In April, the company recommended one bonus share for every equity share held in the company.
The shares traded 32 times its estimated earnings per share for the coming year, Bloomberg data showed.
Aviation Stocks Fly After Fuel Price Cut
Shares of aircraft carriers rose after Indian Oil Corporation cut air turbine fuel prices for the first time in five months. The oil marketer cut prices by 0.3 percent from the last month to Rs 66,611 per kilo litre for June 2019.
- Shares of SpiceJet gained nearly 6 percent to Rs 154.50, its highest since December 2017.
- InterGlobe Aviation, parent of IndiGo, rose 1.8 percent to Rs 1,707.
Ceat Gains After Signing New Deal
Shares of the tyremaker snapped its five-day fall and rose 2 percent to Rs 998 apiece.
Ceat signed a power purchase agreement with Greenzest, by setting up a captive solar power plant in Maharashtra. The company agreed to acquire a maximum of 26 percent stake in the power producer worth Rs 5 crore.
Ceat’s shares traded 16 percent below the Bloomberg consensus one-year target price.
Bajaj Auto Rises Despite Muted Sales In May
Shares gained as much as 2.6 percent to Rs 3,003.25 per share. Bajaj Auto Ltd.'s total sales rose 3 percent year-on-year to 4.19 lakh vehicles in April.
Sales of its commercial vehicles segment dropped 16 percent to 54,167 units, according to its exchange filing. The segment's exports dropped 26 percent to 24,064 units.
Key Sales Highlights (YoY)
- Domestic motorcycle sales rose 7 percent to 2.05 lakh units.
- Motorcycle exports rose 6 percent to 1.59 lakh units.
- Total motorcycle sales increased 7 percent to 3.65 lakh units.
- Domestic commercial vehicles sales declined 9 percent to 26,229 units.
- Commercial vehicles’ exports fell 16 percent to 30,818 units.
- Total domestic sales rose 5 percent to 2.35 lakh units.
- Total exports rose 1 percent to 1.83 lakh units.
Trading volume was more than thrice the 20-day average for this time of the day, as per Bloomberg data.
Motherson Sumi At Three-Year Low
Shares of the Noida-based auto parts maker declined as much as 3.2 percent to Rs 111.65, its lowest since May 2016.
The stock traded 32 percent below the Bloomberg consensus one-year target price. It traded at 17 times its estimated earnings per share for the coming year, according to Bloomberg data.
M&M Falls After Block Deal
Shares of Mahindra & Mahindra fell as much as 1.9 percent to Rs 635.
The company's promoter M&M Benefit Trust sold 1.92 crore shares, or 1.54 percent equity, in the company at Rs 648 each, according to the tractor maker's stock exchange filing. Following the sale, the shareholding of promoters and promoter group of the company fell to 18.9 percent from 20.4 percent of the total paid up equity share capital of the company, the filing said.
The stock traded 13 times its estimated earnings per share for the coming year, Bloomberg data showed.