Stocks Radar: BPCL, HPCL, ITC, Shakti Pumps, Garden Reach Shipbuilders

Indian equities fluctuated between gains and losses in early trade as gains in ICICI Bank Ltd. and Hindustan Unilever Ltd. were offset by losses in ITC Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,704 and 11,658.95, respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

The market breadth was tilted in favour of sellers. About 792 stocks declined and 549 shares advanced on the National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.6 percent gain. On the flip side, the NSE Nifty FMCG Index was the top sectoral loser, down 0.6 percent.

Here Are The Stocks Moving The Market Today

ITC Extends Decline; Shares Worst Performer On Sensex, Nifty

Shares of ITC extended declines for the second consecutive trading session. The stock fell as much as 3.9 percent to Rs 210.55. The scrip had slumped as much as 8.4 percent on Saturday.

That came after the budget proposed to raise excise duty on tobacco and cigarettes.

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

Edelweiss

• Downgraded to ‘Hold’ From ‘Buy’; cut price target to Rs 250 from Rs 315.
• Increase in national calamity contingent duty will lead to a tax hike of approx. 11 percent, which would lead to MRP hikes of 6–7 percent.
• The hike comes after a span of almost two years; expect cigarette volumes to decline 3 percent in 2020-21.
• Prices hikes may lead to better GST collections, but its impact on volumes needs to be seen.

Emkay

• Maintained ‘Hold’; cut price target to Rs 245 from Rs 274.
• Tax increase reduces earnings visibility.
• Price increases do not seem to be substantial, but given reduced affordability and demand slowdown, it could impact cigarette volume and profitability.
• The impact could be higher for key brands moving out of the popular price points.

Investec

• Maintained ‘Buy’; cut price target to Rs 259 from Rs 290.
• The first sizable increase in taxes on cigarettes since July 2017.
• Expect ITC to raise prices by over 6-7 percent to pass on the impact of the same.
• Overhang not completely gone for the year.

Shakti Pumps Drops From A Four-Month High

Shares of Shakti Pumps (India) Ltd. fell as much as 5.9 percent to Rs 273.30. The scrip had advanced nearly 20 percent to a four-month high at Rs 292.70 on Saturday.

That comes after the government said it will help farmers to set up solar-powered pumps. “The government will help 15 lakh farmers to solarise grid-connected farm. Farmers can convert barren land into solar farms,” Nirmala Sitharaman said in her Budget speech on Saturday.

Trading volume was more than 14 times its 20-day average, Bloomberg data showed. Shakti Pumps advanced 21 percent in the past five days and rallied 41 percent in the past 30 days.

Oil Marketers Gain On Falling Crude

Shares of the oil marketing companies halted a four-day losing streak.

That came after Brent crude fell as much as 4.7 percent to $55.42 a barrel—its third consecutive decline.

Stocks Reacting To Auto Sales Announcement

Tata Motors (YoY)

• Stock fell as much as 2.1 percent to Rs 162.05.
• Domestic sales fell 18 percent to 45,242 units.
• Commercial vehicles sales fell 16 percent to 33,860 units.
• Passenger vehicle sales fell 22 percent to 13,894 units.

Hero MotoCorp (YoY)

• Stock fell as much as 2.7 percent to Rs 2,381.45.
• Two-wheeler sales fell 14 percent to 501,622 units.

Eicher Motors (YoY)

• Stock fell as much as 2.8 percent to Rs 19,511.65.
• Motorcycle sales fell 13 percent to 63,520 units.
• VECV sales fell 6.1 percent to 5,544 units.

SML Isuzu (YoY)

• Stock rose as much as 2.9 percent to Rs 558.
• Sales rose 11.5 percent to 1,112 units.

Stocks Reacting To Results Announcement

Sobha (Q3, YoY)

• Stock fell as much as 3.1 percent to Rs 413.
• Revenue rose 12.1 percent to Rs 883.2 crore. (Estimate: Rs 869.9 crore)
• Net profit rose 4.9 percent to Rs 73.2 crore. (Estimate: 75.9 crore)
• Ebitda rose 80.3 percent to Rs 286.6 crore. (Estimate:Rs 196.5 crore)
• Margin stood at 32.5 percent versus 20.2 percent.

Garden Reach Shipbuilders & Engineers (Q3, YoY)

• Stock fell as much as 17.5 percent to Rs 163.50.
• Revenue fell 24.4 percent to Rs 369.6 crore.
• Net profit fell 37.6 percent to Rs 29.5 crore.
• Ebitda loss at Rs 1.2 crore versus Ebitda profit of Rs 41.1 crore.

Relaxo Footwears (Q3, YoY)

• Stock fell as much as 3.8 percent to Rs 705.
• Revenue rose 8.8 percent to Rs 599.9 crore.
• Net profit rose 52.2 percent to Rs 54.2 crore.
• Ebitda rose 40.1 percent to Rs 101.7 crore.
• Margin stood at 17 percent versus 13.2 percent.

Mahindra Holidays & Resorts (Q3, YoY)

• Stock fell as much as 3.7 percent to Rs 219.95.
• Revenue fell 1.8 percent to Rs 588.3 crore.
• Net profit fell 84.1 percent to Rs 4.9 crore.
• Ebitda rose 47.6 percent to Rs 88.1 crore.
• Margin stood at 15 percent versus 10 percent.

Thyrocare Technologies (Q3, YoY)

• Stock rose as much as 6.6 percent to Rs 569.15.
• Revenue rose 9.9 percent to Rs 105.8 crore.
• Net profit rose 36.1 percent to Rs 27.5 crore.
• Ebitda rose 23 percent to Rs 43.8 crore.
• Margin stood at 41.4 percent versus 37 percent.