Stocks Radar: Biocon, HCL Techologies, Infosys, PVR

Indian equity indices opened higher on Thursday but soon pared the gains, dragged by Infosys Ltd.

The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 39,129 and 11,621, respectively, as of 10:05 a.m. The broader market represented by the NSE Nifty 500 Index rose 0.18 percent.

The market breadth remained in favour of buyers as 977 stocks advanced and 626 declined on the National Stock Exchange. All the 11 sectoral gauges gained, led by a 1.4 percent rise in the NSE Nifty Media Index.

Here are the stocks in news moving the markets today:

HCL Tech Best Performer On Sensex, Nifty

Shares of HCL Technologies Ltd. rose as much as 5.8 percent, the most in nearly three months, to Rs 1,159 apiece after the company’s quarterly profit beat estimates in the quarter ended September.

Key Earnings Highlights (Q2, QoQ)

• Dollar revenue up 5.2 percent to $2,486 million (Estimate: $2,469 million)
• Revenue up 6.7 percent to Rs 17,527 crore (Estimate: Rs 17,575 crore)
• Net profit up 21.6 percent to Rs 2,711 crore versus Rs 2,230 crore (Estimate: Rs 2,546 crore)
• EBIT up 23.9 percent to Rs 3,512 crore (Estimate: Rs 3,244 crore)
• Margin at 20 percent versus 17.3 percent (Estimate: 18.5 percent)

Here’s what brokerages had to say about the company:

Macquarie

• Maintains ‘Outperform’ with a price target of Rs 1,340.
• Revenue in line.
• EBIT margin improvement ahead of street estimates.
• Revenue growth guidance hike reflects strong execution.

Emkay

• Maintains ‘Buy’; hikes price target to Rs 1,350 from Rs 1,300.
• In line revenues; margin surprise helped by growth leverage.
• Raised organic revenue growth outlook yet again.
• Remains the lone buy in IT space.

PVR Halts Three-Day Fall On Report Of QIP Issue

Shares of India’s largest operator of multi-screen theaters rose as much as 4.9 percent to Rs 1,858.15.

The company may launch a qualified institutional placement within two weeks to raise nearly Rs 700 crore, or $100 million, two people aware of the development told BloombergQuint. The QIP, at the current market price, will lead to a 7-8 percent dilution of PVR Ltd.’s equity, BloombergQuint’s calculations showed.

Infosys Drops After SEC Initiates Probe On Whistleblower Complaints

Shares of Infosys fell as much as 1.9 percent to Rs 638 apiece.

The Bengaluru-based software developer said U.S. regulator Security Exchange Commission has initiated a probe on anonymous whistleblower letter that alleged its Chief Executive Officer Salil Parekh of dressing up the company’s books.

Also, the Securities and Exchange Board of India has initiated a similar probe, PTI reported quoting officials aware of the matter.

The stock was the worst performer on the Sensex and Nifty.

Stocks Reacting To Results Announcements

L&T (Q2, YoY)

• Stock rose as much as 2.5 percent to Rs 1,467.
• Revenue up 15 percent to Rs 35,328 crore (Estimate: Rs 35,357 crore)
• Net profit up 13 percent to Rs 2,528 crore versus Rs 2230 crore (Estimate: 2,144 crore)
• Ebitda up 13 percent to Rs 4,021 crore versus Rs 3,541 crore (Estimate: Rs 4,071crore)
• Margin at 11.4 percent versus 11.5 percent (Estimate: 11.5 percent)

Hero MotoCorp (Q2, YoY)

• Stock rose as much as 1.4 percent to Rs 2,749.
• Revenue down 16.7 percent to Rs 7,571 crore (Estimate: Rs 7,560 crore)
• Net profit down 10.3 percent to Rs 875 crore (Estimate: Rs 775 crore)
• Ebitda down 20.2 percent to Rs 1,101 crore (Estimate: Rs 1,025 crore)
• Margin at 14.5 percent versus 15.2 percent
• Exceptional expense of Rs 60 crore on VRS Scheme

Biocon (Q2, YoY)

• Stock fell as much as 5.4 percent to Rs 250.90.
• Revenue up 19 percent to Rs 1,572.2 crore (Estimate: Rs 1,557 crore)
• Net profit down 39.2 percent to Rs 215.7 crore (Estimate: Rs 220 crore)
• Ebitda up 18.6 percent to Rs 402.8 crore (Estimate: Rs 438 crore)
• Margin at 25.6 percent versus 25.7 percent (Estimate: 28.1 percent)
• Exceptional gain of Rs 67.5 crore versus Rs 188.8 crore

NIIT Technologies (Q2, QoQ)

• Stock fell as much as 2.7 percent to Rs 1,430.
• Revenue up 7.9 percent to Rs 1,038.5 crore.
• Net profit up 36.4 percent to Rs 119.5 crore.
• EBIT up 49.3 percent to Rs 146.9 crore.
• Margin at 14.1 percent versus 10.2 percent
• Deferred tax reversal of Rs 147 crore in the current quarter

Hexaware Technologies (Q3CY19, QoQ)

• Stock fell as much as 5.4 percent to Rs 346.55.
• Revenue up 13.2 percent to Rs 1,481.3 crore.
• Net profit up 21.3 percent to Rs 183.7 crore.
• EBIT up 6.1 percent to Rs 201.9 crore versus Rs 190.3 crore
• Margin at 13.6 percent versus 14.5 percent.
• Exceptional loss of Rs 170 crore in base quarter.
• Exchange rate difference (gain) of Rs 198 crore in current quarter.

Shoppers Stop (Q2, YoY)

• Stock fell as much as 2 percent to Rs 386.40.
• Revenue down 2.6 percent to Rs 866.5 crore.
• Net loss at Rs 8.2 crore versus net profit at Rs 11.8 crore
• Ebitda up 2.6 times at Rs 137.7 crore.
• Margin at 15.9 percent vs 6 percent.
• Lease rent down 84 percent at Rs 16.2 crore.

JK Paper (Q2, YoY)

• Stock rose as much as 2.1 percent to Rs 127.55.
• Revenue up 0.7 percent to Rs 790.6 crore.
• Net profit up 14.2 percent to Rs 120.4 crore.
• Ebitda up 11.5 percent to Rs 227.1 crore.
• Margin at 28.7 percent versus 25.9 percent.

Torrent Pharma (Q2, YoY)

• Stock rose as much as 1.8 percent to Rs 1,709.
• Revenue up 5.9 percent to Rs 2,005 crore.
• Net profit up 36.3 percent to Rs 244 crore.
• Ebitda up 14.4 percent to Rs 541 crore.
• Margin at 27 percent versus 25 percent.
• Other income up 3.4 times to Rs 34 crore.
• India revenue up 10 percent to Rs 899 crore.
• U.S. revenue down 3 percent to Rs 380 crore.
• Gross margin at 73 percent.

Castrol (Q3CY19, YoY)

• Stock rose as much as 3.9 percent to Rs 139.20.
• Revenue down 8.4 percent to Rs 849.2 crore.
• Net profit up 25.3 percent to Rs 188.4 crore.
• Ebitda up 7.5 percent to Rs 244.5 crore.
• Margin at 28.8 percent versus 24.5 percent.
• Raw material costs as percent of sales at 45 percent versus 51.1 percent.

PI Industries (Q2, YoY)

• Stock rose as much as 1.9 percent to Rs 1,350.
• Revenue up 25.5 percent to Rs 907.4 crore.
• Net profit up 30.2 percent to Rs 123.2 crore.
• Ebitda up 42.7 percent to Rs 192.5 crore.
• Margin at 21.2 percent versus 18.7 percent.

CG Consumer Electricals (Q2, YoY)

• Stock fell as much as 1.3 percent to Rs 259.30.
• Revenue up 3.7 percent to Rs 1,075.8 crore (Estimate: Rs 1,144.8 crore).
• Net profit up 44.7 percent to Rs 111.3 crore (Estimate: Rs 110 crore).
• Ebitda up 4.6 percent to Rs 129.5 crore (Estimate: Rs 141.8 crore).
• Margin at 12 percent versus 11.9 percent (Estimate: 12.3 percent).

Everest Industries (Q2, YoY)

• Stock fell as much as 12.6 percent to Rs 286.35.
• Revenue down 8.8 percent to Rs 286.2 crore
• Net loss at Rs 6.6 crore versus net profit of Rs 8.1 crore
• Ebitda loss at Rs 2.3 crore versus Ebitda profit of Rs 17.7 crore

Polycab India (Q2, YoY)

• Stock rose as much as 6.9 percent to Rs 834.90.
• Revenue up 23.7 percent to Rs 2,241.9 crore.
• Net profit up 2.2 times to Rs 191.8 crore.
• Ebitda up 25.5 percent to Rs 271.6 crore.
• Margin at 12.2 percent versus 11.9 percent.