Stocks Radar: Bandhan Bank, IndiGo, ITC, PNB Housing, Sterlite Tech

Indian equity benchmarks remained volatile in the open. The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,059 and 11,586, respectively. The broader market represented by the NSE Nifty 500 Index, too, was flat.

The market breadth was tilted in favour of buyers as 744 stocks advanced and 557 declined on the National Stock Exchange.

Six of the 11 sectoral gauges traded higher, led by the NSE Nifty FMCG Index’s 0.7 percent gain. The NSE Nifty Metal Index was the top loser, down 0.35 percent.

Here Are The Stocks Moving The Market This Morning

PNB Housing Finance Jumps After Q2 Results

Shares of PNB Housing Finance rose as much as 14.1 percent to Rs 510 apiece after the company announced its results for the quarter ended September.

Key Earnings Highlights (Q2, YoY)

• Net interest income up 29.1 percent to Rs 494.6 crore.
• Net profit up 45 percent at Rs 366.8 crore.
• Net interest margin at 3.19 percent versus 2.72 percent.
• Gross NPA at 0.84 percent versus 0.85 percent in the April-June quarter.

ITC Second-Best On Sensex, Nifty

Shares of ITC rose as much as 3.3 percent to Rs 257.20 apiece. The stock was the second-best performer on the Sensex and Nifty after the company reported its highest ever quarterly profit.

Key Earnings Highlights (Q2, YoY)

• Revenue up 5.3 percent to Rs 11,871.5 crore. (Estimate: Rs 11,910 crore)
• Net profit up 36.2 percent to Rs 4,023.1 crore. (Estimate: Rs 3,642 crore)
• Ebitda up 8.5 percent to Rs 4,562.4 crore. (Estimate: Rs 4,602.4 crore)
• Margin at 38.4 percent versus 37.3 percent. (Estimate: 38.6 percent)
• Tax expense down 45 percent to Rs 784.6 crore.
• Other income up 30 percent to Rs 654.3 crore.

Here’s what brokerages had to say about ITC’s second-quarter results:

Credit Suisse

• Maintains ‘Outperform’ and hikes target price to Rs 330 from Rs 320.
• Second quarter steady, broad-based EBIT growth
• ITC staying away from large price hikes to give more room for cigarette volumes to recover.
• FMCG growth impacted by slowdown, but strong margin expansion continues to play out.

UBS

• Maintains ‘Buy’ with a target price of Rs 350 apiece.
• Cigarettes steady; rural slowdown hurts FMCG.
• ITC cigarettes: volume and margins improve.
• Margin outlook, environmental, social and governance concerns have kept stock range bound.

Bandhan Bank Gains On Raising FPI Investment Limit

Shares of Bandhan Bank rose as much as 3.4 percent to Rs 589.90 apiece.

The bank’s board approved increasing shareholding limits for foreign portfolio investors to 49 percent from 24 percent, according to an exchange filing. This would provide further dilution of the shareholding of the promoter Bandhan Bank Financial Holdings to 40 percent from 60.96 percent to comply with the RBI guidelines.

Besides, the board will seek approval from shareholders to reduce authorised share capital to Rs 3,200 crore from Rs 5,200 crore, it said.

The stock has gained 5.5 percent so far this year and 52.7 percent in the past 12 months, according to Bloomberg data.

L&T Swings After Winning Construction Award From Chalet Hotels

Shares of the engineering and construction company fluctuated between gains and losses to trade little changed at Rs 1,438 a share.

Chalet Hotels has issued letters of award for works contract aggregating to Rs 319.5 crore to Larsen & Toubro for construction of Hotel and Commercial Building in Powai, Mumbai, according to an exchange filing.

Shares of Chalet Hotels, too, fluctuated between gains ad losses to trade little changed at Rs 340.95 apiece.

Other Stocks Reacting To Results Announcement

InterGlobe Aviation (Q2, YoY)

• Stock fell as much as 5.4 percent to Rs 1,575
• Revenue up 31 percent to Rs 8,105 crore
• Ebitdar profit of Rs 97 crore versus Ebitdar loss of Rs 116 crore
• Net loss of Rs 1,062 crore versus Rs 652 crore
• Cuts capacity growth guidance for FY20 to 25 percent from 30 percent

Raymond (Q2, YoY)

• Stock rose as much as 2.9 percent to Rs 618.90
• Revenue up 1.9 percent to Rs 1,883.2 crore
• Net profit up 33.5 percent at Rs 84 crore
• Ebitda up 11 percent to Rs 207.1 crore
• Margin at 11 percent versus 10.1 percent
• Branded textiles revenue down 2 percent to Rs 869 crore
• Branded apparels revenue up 9 percent to Rs 529 crore

Sterlite Tech (Q2, YoY)

• Stock fell as much as 18.4 percent to Rs 118.65
• Revenue up 25.4 percent to Rs 1,359.7 crore (Estimate: Rs 1,453 crore)
• Net profit up 21.6 percent to Rs 159.6 crore (Estimate: Rs 143 crore)
• Ebitda up 5.6 percent to Rs 288.5 crore (Estimate: Rs 305 crore)
• Margin at 21.2 percent versus 25.2 percent (Estimate: 21 percent)
• Management gives cautious outlook
• Expects H2 profitability to be lower than H1

Colgate-Palmolive (Q2, YoY)

• Stock fell as much as 1.5 percent to Rs 1,540
• Revenue up 4.6 percent to Rs 1,221.8 crore (Estimate: Rs 1,221 crore)
• Net profit up 24.3 percent to Rs 244.1 crore (Estimate: Rs 235 crore)
• Ebitda down 2 percent at Rs 322.9 crore (Estimate: Rs 347 crore)
• Margin at 26.4 percent versus 28.2 percent (Estimate: 28.4 percent)
• Advertising expenses up 27 percent to Rs 175.8 crore
• Volume growth at 4 percent (Estimate: 4 percent)
• Declared dividend of Rs 12 per share

Westlife Development (Q2, YoY)

• Stock rose as much as 8.4 percent to Rs 377
• Revenue up 13.2 percent to Rs 396.5 crore
• Net profit up 14.6 percent at Rs 4.7 crore
• Ebitda up 2.2 times at Rs 58 crore
• Margin at 14.6 percent versus 7.7 percent
• Depreciation up 75 percent to Rs 34.4 crore
• Finance cost up 4.9 times to Rs 20 crore
• Opens five new restaurants this quarter
• Gross margins at 65.3 percent
• Same store sales growth at 7 percent

Astral Poly Technik (Q2, YoY)

• Stock rose as much as 4.4 percent to Rs 1,185
• Revenue up 8.5 percent to Rs 678.3 crore
• Net profit up 84.5 percent at Rs 82.1 crore
• Ebitda up 26.2 percent at Rs 119 crore
• Margin at 17.5 percent versus 15.1 percent
• Tax expense down 82 percent at Rs 3.4 crore
• Plastic segment revenue up 15 percent at Rs 528.4 crore
• Adhesive segment revenue down 9 percent at Rs 149.9 crore

United Spirits (Q2, YoY)

• Stock rose as much as 1.7 percent to Rs 619.
• Revenue up 3.4 percent to Rs 2,314.2 crore
• Net profit down 27.8 percent at Rs 163.1 crore
• Ebitda down 4.9 percent at Rs 408.1 crore
• Margin at 17.6 percent versus 19.2 percent
• Raw material costs as percentage of sales at 55 percent versus 49.6 percent

IDFC First Bank (Q2, YoY)

• Stock rose as much as 6.6 percent to Rs 41.40.
• Net interest income up 3 times to Rs 1,363.1 crore
• Net loss at Rs 679.5 crore versus net loss at Rs 369.7 crore
• Provisions at Rs 317.4 crore versus Rs 601.4 crore (Rs 1,280.8 crore QoQ)
• GNPA at 2.62 percent versus 2.66 percent (QoQ)
• NNPA at 1.17 percent versus 1.35 percent (QoQ)
• Figure not comparable due to merger of IDFC with Capital First

Shriram Transport Finance (Q2, YoY)

• Stock rose as much as 1.6 percent to Rs 1,087.80.
• Net interest income down 3.2 percent to Rs 1,996.6 crore
• Net profit up 25.5 percent to Rs 765.1 crore
• Declared dividend of Rs 5 per share
• Gain on income tax of Rs 179.8 crore on account of lower corporate tax rate
• Assets under management up 3.58 percent to Rs 1.08 lakh crore
• Net interest margin at 7.19 percent versus 7.52 percent (7.16 percent QoQ)