Stocks Radar: Bajaj Finance, HCL Tech, Laurus Labs, Bharti Airtel
Here are the stocks moving the market this morning.
Indian equity benchmarks opened higher, led by gains in Bharti Airtel, State Bank of India and ICICI Bank. The S&P BSE Sensex and the NSE Nifty 50 Index traded at 33,927.48 and 10,177.55, respectively, as of 11 a.m.
The Asian stocks, too, swung to gains as Chinese shares reversed losses.
The market breadth was tilted in favour of buyers. Seven of the 11 sectoral gauges advanced, led by a 1.13 percent gain in the NSE Nifty Realty Index. The NSE Nifty Pharma Index was the top sectoral loser, down 1.07 percent.
Here Are The Stocks Moving The Market This Morning
Bajaj Finance Jumps After Q2 Earnings
Shares of the Pune-based lender snapped their four-day losing streak and rose nearly 7.14 percent to Rs 2,232 apiece.
Net profit of the company rose 54 percent year-on-year to Rs 923 crore in the second quarter, it said in an exchange filing. That compares with the Rs 858-crore consensus estimate of analysts tracked by Bloomberg.
Earnings highlights (Q2, Year-On-Year)
- Net interest income rose 42 percent to Rs 2,729 crore.
- Loan loss provisions stood at Rs 315 crore.
- Assets under management growth at 38 percent.
- Gross NPA at 1.49 percent versus 1.39 percent in the previous quarter.
- Net NPA at 0.53 percent versus 0.44 percent in the preceding quarter.
Here’s what brokerages had to say about Bajaj Finance:
Morgan Stanley
- Maintains ‘Equalweight’ with a price target of Rs 2,300.
- The September-quarter net profit met estimates led by lower provisions.
- NII and AUM growth in line with estimates.
JPMorgan
- Maintains ‘Overweight’ with a price target of Rs 2,800.
- Another earnings beat driven by operating expense performance.
- Asset quality saw a marginal blip sequentially, largely driven by the rural and loan against property book.
- Loan growth momentum intact; funding profile strong with growing deposit base.
HCL Tech Swings After Q2 Results
Shares of the IT services company fluctuated between gains and losses to trade at Rs 955.25 apiece.
HCL Technologies’ earnings met estimates in the September quarter even as its margins remained flat. Net profit rose 4.2 percent sequentially to Rs 2,534 crore in the reporting period, according to its exchange filing. That’s higher than the Rs 2,433-crore consensus estimate of analysts tracked by Bloomberg.
Earnings Highlights (Quarter-On-Quarter)
- Dollar revenue up 2.1 percent to $2,099 million.
- Profit up 5.7 percent to Rs 2,540 crore.
- EBIT up 8.7 percent at Rs 2,966 crore.
EBIT margin stood at 19.8 percent against 19.7 percent.
Here’s what brokerages had to say about HCL Tech
CLSA
- Maintains ‘Buy’ with a price target of Rs 1,500.
- Revenue in line with estimates.
- Organic growth momentum recovering in the second half.
- ‘Buy’ on returning organic growth.
Credit Suisse
- Maintains ‘Outperform’ with a price target of Rs 1,275.
- No surprises in September quarter; growth guidance maintained as expected.
- Expects potential double-digit growth with steady margins.
- Valuations remain extremely attractive.
Bayer CropScience Falls After Downgrade
Shares of the agri chemical maker dropped as much as 9.1 percent, the most since February, to Rs 3,850 apiece after posting weak second quarter earnings.
The company's net profit fell 25 percent to Rs 142.7 crore while its revenue declined 10 percent to Rs 1,104.1 crore.
Brokerage Kotak Securities downgraded its rating on the stock to ‘Sell’ from ‘Reduce’. It also lowered its price target to Rs 3,550. It had one buy, five holds and five sells previously, according to Bloomberg data.
Other Stocks Reacting To Earnings Announcement
Adani Ports and SEZ (Q2, YoY)
- The stock rose 3.26 percent to Rs 329.40 apiece.
- Revenue down 4 percent to Rs 2,608 crore.
- Net profit down 39 percent to Rs 606 crore.
- Ebitda down 9 percent to Rs 1,703 crore.
- Ebitda margin stood at 65.3 percent versus 68.8 percent.
HDFC Standard Life ( Q2, YoY)
- Stock rose 2.5 percent to Rs 369 apiece.
- Net premium income up 26 percent to Rs 6,778 crore.
- Net profit up 20 percent to Rs 287 crore.
- 13-month persistency ratio down 84.8 percent versus 86.2 percent.
- 61-month persistency ratio up 52.4 percent versus 50.5 percent.
Bajaj Finserv (Q2, YoY)
- Stock fell as much as 4.1 percent to Rs 4,955 apiece.
- Revenue up 17 percent to Rs 9,698 crore.
- Revenue from insurance business up 9.2 percent to Rs 4,633 crore.
- Net profit up 1 percent to Rs 704 crore.
Bharti Infratel Slips Ahead Of Earnings
Shares of the telecom infrastructure company fell as much as 1.4 percent to Rs 261.75 apiece.
The company is scheduled to announce its September quarter results today. Net profit of the company is expected to be around Rs 605 crore in the July-September period, according to analysts tracked by BloombergQuint.
Earnings Preview (Quarter-On-Quarter)
- Revenue is expected to fall 2.4 percent to Rs 3,587 crore.
- Ebitda likely to fall 5 percent to Rs 1,448 crore.
- Ebitda margin expected to contract 100 basis points to 40.4 percent.
The stock trades at 19.6 times trailing its 12-month earnings per share and 20 times its estimates for the coming year, according to Bloomberg data.
Bharti Airtel Gains After Announcing Plans To Sell Stake In Africa Unit
Shares of the telecom operator rose as much as 4.5 percent to Rs 298.85 apiece.
Bharti Airtel will raise close to $1.25 billion by selling a stake in its profitable African business. Warburg Pincus, Temasek, Singtel, SoftBank Group International, and two others have agreed to invest in the African unit by subscribing to new shares, the company told the bourses today. The African unit is valued at $ 4.4 billion after the transaction.
Also, the company’s African arm received $250 million investment from Singapore-based Singtel ahead of its planned initial public offering, Bloomberg reported citing a separate company statement.
The stock declined 44.6 percent so far this year compared with a 1.2 percent gain in the Sensex, Bloomberg data showed.
Laurus Labs Rises After Transfer Of Ownership Right Of HIV Drug
Shares of the drugmaker rose 4.1 percent to Rs 390.40 apiece.
The Hyderabad-based company transferred ownership of its U.S. FDA approved abbreviated new drug application of Tenofovir Disoproxil Fumarate to CASI Pharmaceuticals, according to an exchange filing. Upfront and milestone payments for the transaction will be received in different phases, the company said.
The stock trades 24 percent below the Bloomberg consensus one-year target price.