Stocks Radar: Cadila Healthcare, Federal Bank, HUL, Indiabulls Housing
Indian equity indices opened lower mirroring their Asian peers. The benchmark indices were dragged down by losses in Tata Motors Ltd. and metal stocks.
The Sensex traded 0.8 percent lower at 38,645 and the Nifty was down 0.82 percent at 11,616, as of 10:10 am.
The market breadth was tilted in favour of sellers. All 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 2.18 percent fall in the NSE Nifty Metal Index.
Indiabulls Housing Finance Falls After Merger Plan Rejig
Shares of the non-bank lender fell 2.6 percent intraday to Rs 687.55.
The company’s board reversed scheme of amalgamation with Lakshmi Vilas Bank Ltd. and proposed to merge Indiabulls Commercial Credit with Lakshmi Vilas Bank. Indiabulls Commercial Credit is a fully-owned subsidiary of Indiabulls Housing Finance Ltd.
The stock traded at 6.2 times its estimated earnings per share for the coming year, according to Bloomberg data.
Yes Bank Falls On ICRA Downgrade
Shares of the private lender snapped its two-day gaining streak and declined as much as 5 percent to Rs 167 apiece.
ICRA downgraded credit rating on various debt instruments of the bank citing significant increase in below-rated advances and given the deterioration in credit profile of some of its larger borrowers, according to its press release. The rating downgrade also factors in the further weakening in Yes Bank’s core equity (CET-I) capital cushions because of the voluntary provisions and consequent losses in the March-ended quarter.
The stock declined 49 percent in the past 12 months compared with a 12 percent gain in the Sensex.
HIL Gains After Capacity Expansion At Golan Plant
Shares of the building products maker rose as much as 1.4 percent to Rs 1,865 per share.
The CK Birla Group company commenced the final phase production of its pipe and fittings at Golan Plant in Gujarat, according to its exchange notification. This phase of production will add capacity of 2,916 million tonne per annum.
The stock traded 24 percent below the Bloomberg one-year consensus target price.
Cadila Healthcare At Four-Year Low On U.S. FDA Woes
Shares of the drugmaker declined 3.6 percent to Rs 292.85 apiece.
The Ahmedabad-based company received 14 observations on its formulations manufacturing facility in Moraiya, Ahmedabad (Gujarat) from U.S. FDA, according to its exchange notification. The company said there were no repeat observations or data integrity-related observations.
The trading volume was more than 15 times the 20-day average for this time of the day, Bloomberg data showed. The relative strength index on the stock was below 30, indicating it may be oversold.
HUL Declines After Q4 Results
Shares of the country’s largest consumer goods company fell nearly 2 percent to Rs 1,661.20. It reported its fourth-quarter earnings on Friday.
The company’s net profit rose 13.8 percent year-on-year to Rs 1,538 crore in the three-month period, according to its exchange filing. That compares with the Rs 1,611-crore consensus estimate of analysts tracked by Bloomberg. The company reported volume growth of 7 percent—the lowest in six quarters.
20 out of the 42 analysts tracked by Bloomberg had a ‘Buy’ recommendation on the stock. 19 analysts had recommended ‘Hold’, while three analysts had a ‘Sell’ rating.
Federal Bank At One-Year High
Shares of the Kerala-based bank rose for the third straight session and gained close to 4.5 percent to Rs 102 apiece. The company reported its March quarter results on Saturday.
The company’s net profit shot up 1.6 times to 381.51 crore, while its net interest income gained 17.5 percent year-on-year to Rs 1,096.53 crore.
- Gross NPAs at 2.92 percent versus 3.14 percent (QoQ).
- Provisions at Rs 178 crore versus Rs 190 crore (QoQ).
- A final dividend of Rs 1.40 per share was recommended.