Stocks Radar: Bharat Petroleum, Tata Motors, Jet Airways, Tech Mahindra
Indian equity benchmarks opened lower but the losses were partly offset by gains in banking stocks. The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 34,028.79 and 10,250.70, respectively, as of 11:25 a.m. Asian stocks, too, turned higher after President Donald Trump spoke about a “great” deal with China on trade.
The market breadth was tilted in favour of buyers. Six of the 11 sectoral gauges advanced, led by a 2.78 percent gain in the NSE Nifty PSU Index. The NSE Nifty FMCG Index was the biggest loser, down 0.42 percent.
Here Are The Stocks Moving The Market This Morning
Bharat Petroleum Slips After Q2 Results
Shares of the oil marketer fell as much as 4.8 percent to Rs 264.05 apiece after the company’s September-quarter profit nearly halved due to a decline in margin.
Net profit of the company fell 46.9 percent over the previous quarter to Rs 1,218.7 crore in the three months to September, according to its stock exchange filing. Analyst estimates compiled by BloombergQuint had pegged profit at Rs 1,796 crore.
Other Highlights (Quarter-On-Quarter)
- Revenue rose 0.9 percent to Rs 72,345.8 crore.
- Ebitda down 37.6 percent to Rs 2,419.5 crore.
- Margin stood at 3.3 percent against 5.4 percent.
Here’s what brokerages have to say about the stock:
- Maintains ‘Buy’ with a price target of Rs 397 apiece.
- Adjusted Ebitda below estimates due to lower gross refining margin and higher operating expenditure.
- Core gross refining margin was lower at both Kochi and Mumbai refineries.
- Kochi expansion in the next few quarters to expand gross refining margin by $2 a barrel.
- Maintains ‘Buy’ with a target price of Rs 396.
- Weak core gross refining margin partly offset by higher inventory gain.
- Marketing segment—core margin in line with estimates.
- Oil marketing companies’ risk reward favourable; attractive valuations.
- Maintains ‘Underweight’ with a target price of Rs 330 apiece.
- Second-quarter core earnings lower.
- Refining margins surprisingly declined despite better product cracks.
- Believes stock is pricing in near-term challenges and impact of government intervention.
The stock trades 18 percent below the Bloomberg consensus one-year target price.
Other Stocks Reacting To Q2 Earnings
Mahindra Holiday & Resorts (Q2, Standalone YoY)
- Stock declined nearly 4.8 percent to Rs 203 a share.
- Revenue down 12.8 percent to Rs 209.4 crore.
- Net profit down 54.3 percent at Rs 14.5 crore.
- Ebitda down 57.5 percent to Rs 23.1 crore.
- Margin stood at 11 percent versus 22.6 percent.
Sun Pharma Advanced Research (Q2, YoY)
- Stock rose 4.6 percent to Rs 314.80 apiece.
- Revenue rose fourfold to Rs 61.4 crore.
- Net loss at Rs 2.6 crore compared with a loss at Rs 62.6 crore
- Ebitda loss at Rs 5.1 crore versus a loss of Rs 61.4 crore
HDFC AMC (Q2, YoY)
- Stock gained 2.1 percent to Rs 1,403.05 apiece.
- Revenue up 11.7 percent at Rs 480.4 crore.
- Net profit up 14.5 percent at Rs 205.9 crore.
- EBIT up 10.9 percent at Rs 262.4 crore.
- Margin stood at 54.6 percent versus 55 percent.
(As of 10:10 a.m.)
Jet Airways Snaps Two-Day Decline
Shares of the airline rose as much as 5 percent to Rs 224.80 apiece.
Jet Airways denied that it has defaulted on payment of lease rentals after media reports suggested the carrier has been served showcause notice by the Airports Authority of India for delays. Meanwhile, Financial Express reported that U.S.-based Delta Airlines was in talks to acquire a stake in the debt-laden airline.
The stock declined 71 percent so far this year, Bloomberg data showed.
Redington India Jumps After Buyback Approval
The Apple products distributor’s shares rose nearly 5 percent to Rs 85.90 a share.
The company’s board proposed a buyback of 1.1 crore equity shares at Rs 125 each, according to an exchange notification. The amount of total buyback was Rs 139 crore.
The stock trades at 23.6 times trailing its 12-month earnings per share and 7.1 times its estimates for the coming year, Bloomberg data showed.
Sugar Stocks Extend Gain After Industrial Body Cuts Output Forecast
Sugar stocks gained for the second straight day after Indian Sugar Mills Association cut its output estimate to 32 million tonnes from 35.5 million tonnes for the financial year 2018-19.
- Dhampur Sugar Mills hit upper circuit at 10 percent.
- Balrampur Chini Mills rose as much as 3 percent to Rs 111.60 apiece.
- Shree Renuka Sugars rose 2.6 percent to Rs 13.75 a share.
(as of 9:45 a.m.)
Tech Mahindra Swings Ahead Of Q2 Earnings
Shares of the IT services provider pared early losses and rose as much as 2.3 percent to 679.60 apiece.
September Quarter Preview (Consolidated, QoQ)
- Revenue expected to rise 4.1 percent to Rs 8,609 crore.
- Profit expected to rise 12.8 percent to Rs 1,013 crore.
- EBIT seen to rise 14.1 percent to Rs 1,217 crore.
- EBIT margin expected to expand 120 basis points to 14.1 percent.
The stock rose 37 percent so far this year compared to a 1 percent advance in the BSE Sensex, Bloomberg data showed.
Tata Motors Rises As China Regulator Said To Cut Car Purchase Tax
Shares of the parent of luxury brand Jaguar Land Rover rose as much as 3.2 percent to Rs 180.95 apiece as China is considering cutting tax to revive its flagging automotive market, Bloomberg reported citing people familiar with the matter.
Tata Motors earns a sizeable amount of revenue by selling Jaguar Land Rover cars in China.
The stock trades 47 percent below the Bloomberg consensus one-year target price.