Stocks Radar: Bharti Airtel, Coal India, Jet Airways, Glenmark Pharma
Here are the stocks moving the market in today’s trade.
Indian equity benchmarks opened higher driven by gains in Coal India Ltd. and auto stocks.
The S&P BSE Sensex advanced as much as 0.66 percent to 40,090 and the NSE Nifty 50 Index rose nearly 0.65 percent to 12,023.75, as of 9:50 am. The market breadth was tilted in favour of buyers.
All the 11 sectoral gauges compiled by the National Stock Exchange rose, led by the Nifty FMCG Bank Index’s 0.9 percent gain.
Bharti Airtel Rises After ARPU Jumps The Most Since Listing
Shares of the Sunil Mittal-led company rose for the second straight session after the stock jumped 1.64 percent to Rs 352.40 apiece.
The telecom operator’s average revenue per user rose 18.3 percent sequentially to Rs 123—the biggest jump since its listing, the company said in a press release, adding that India customer base declined by only 16 lakh to 28.26 crore.
21 of the 28 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock, while four had recommended ‘Hold’ and three analysts had a ‘Sell’ rating.
Glenmark Pharma Slumps After CLSA Downgrade
Shares of the drugmaker slumped as much as 3.1 percent to a one-year low of Rs 536.65 per share.
Brokerage firm CLSA downgraded its recommendation on the stock to ‘Sell’ from ‘Buy’. Also, its price target was lowered to Rs 500, indicating a potential downside of 10 percent from the last close.
Here’s what the brokerage firm said on the stock:
- March quarter results were significantly below estimate.
- 2019-20 revenue guidance was weaker than expected.
- High investment phase to keep earnings subdued.
The relative strength index on the stock was below 30, indicating it may be oversold.
Jet Airways Falls After Resignations Halt Results Approval
Shares of the cash-strapped airline declined as much as 2.9 percent to Rs 146.65 apiece.
The company said it is not in a position to consider and approve March quarter results on account of ongoing bidding process undertaken by its lenders and resignation of multiple board members, according to an exchange filing.
The stock fell 65 percent in the past 12 months compared to a 14 percent gain in the Sensex.
Oil Marketers Rally On Falling Crude Prices
Shares of oil marketing companies rallied after the Brent crude fell for the third consecutive trading session to $66 per barrel.
Coal India Hits Six-Month High
Shares of India’s largest coal miner rose 4 percent to Rs 262.95 apiece, its highest since November 2018. The company announced its March quarter results on Thursday.
Net profit jumped more than fourfold year-on-year to Rs 6,024.16 crore in the January-March quarter, the coal miner said in an exchange filing. That compares with the Rs 4,930-crore consensus estimate of analysts tracked by Bloomberg.
Other Highlights:
- Revenue up 7.5 percent to Rs 28,546.26 crore.
- Net profit at Rs 6,024.16 crore versus Rs 1,302.51 crore.
- Reported Ebitda at Rs 8,212.2 crore versus Rs 193.34 crore.
- Reported margin at 28.7 percent versus 0.7 percent.
Here’s what brokerages had to say on the stock:
Edelweiss
- Maintained ‘Hold’; hiked price target to Rs 263 from Rs 243.
- Record Ebitda riding robust FSA realisation.
- Volume ramp up at key subsidiaries encouraging.
- Expect e-auction realisation to come off resulting in muted earnings growth.
CLSA
- Maintained ‘Buy’; hiked price target to Rs 290 from Rs 275.
- Decent March quarter results.
- Volume growth was patchy but some improvement in recent months.
- Muted earnings outlook but reasonable valuation and a high dividend yield.
Citi
- Maintained ‘Buy’; hiked price target to Rs 320 from Rs 300.
- March quarter was in line; E-Auction prices resilient, Volumes muted.
- Believe valuations discount uncertainty on likely volume trends.
- Coal India offers an attractive dividend yield.
The trading volume was over 50 times the 20-day average, according to Bloomberg data.