Stocks Radar: Captain Polyplast, Delta Corp, Jet Airways, SRF, Vodafone Idea
Indian equity indices opened lower for the ninth session in a row after trade tensions between U.S. and China escalated. The world’s largest economy imposed duties on $200 billion worth of Chinese exports.
The Sensex traded 0.1 percent lower at 37,506.90 and the Nifty traded flat at 11,278.45, as of 10:00 am.
The market breadth was tilted in favour of sellers. Nine of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 1.24 percent fall in the NSE Nifty PSU Index. NSE Nifty IT Index was the top gainer, up 0.74 percent.
SRF Swings After Unit Sale Plan
Shares of the industrial chemicals maker fluctuated between gains and losses to trade at Rs 2,641.90 apiece.
The company will sell its engineering plastics division to DSM India (subsidiary of Royal DSM Netherlands) for Rs 320 crore, according to an exchange filing. The sale is expected to be completed within six months. The division contributed Rs 209 crore, or 4.5 percent, to the company’s revenue in 2017-18, the filing said.
The stock traded at 23 times its earnings per share for the coming year according to Bloomberg data.
Jet Airways Slumps After Receiving Bid From Etihad
Shares of the cash-strapped airline snapped its three-day winning streak and declined as much as 11.4 percent to Rs 134.40 per share.
Etihad Airways PJSC has submitted a binding bid for Jet Airways (India) Ltd. under a sale process being conducted by State Bank of India, according to people in direct knowledge of the matter. The bid was also confirmed by Jet’s lender SBI Capital Markets according to a Bloomberg report.
The stock declined 68 percent in the past 12 months compared with a 5.4 percent gain in the Sensex.
Delta Corp Hits 19-Month Low
Shares of the casino operator declined 12 percent intraday to Rs 188.20 apiece.
GST Intelligence has booked two Goa companies, including Delta Corp, for Rs 6,189 crore tax evasion, CNBC TV18 reported, citing unnamed sources. However, the company’s CFO said the company was GST-compliant and hasn't evaded tax.
Trading volume on the stock was more than 17 times its 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.
Captain Polyplast Gains After Opening New Plant
Shares of the Rajkot-based agricultural products maker rose 3.2 percent to Rs 24 apiece. The company inaugurated a manufacturing plant at Kurnool in Andhra Pradesh, according to an exchange notification.
The trading volume was 40 times the 20-day average for this time of the day, according to Bloomberg data.
L&T Falls After Q4 Results
Shares of Larsen & Toubro Ltd. fell as much as 1.2 percent to Rs 1,338.85 after the company announced its March quarter results on Friday. The stock is set for its longest losing streak in over four months.
Key Earnings Highlights (Q4, YoY)
- Net profit up 8 percent to Rs 3,418 crore.
- Ebitda up 3 percent to Rs 5,599 crore.
- Margin at 12.5 percent versus 13.3 percent.
- FY19 revenue guidance of 12-15 percent met.
- Bagged orders worth Rs 56,538 crore.
- International orders were 31 percent of the order inflow.
Vodafone Idea Surges Ahead Of Q4 Results
Shares of the country’s largest telecom operator rose nearly 6.4 percent to Rs 14.95 apiece. The company is scheduled to announce its fourth quarter earnings today.
Here’s what analysts tracked by BloombergQuint expect the company to report on a sequential basis:
- Revenue seen down 0.2 percent at Rs 11,744 crore.
- Net loss seen at Rs 4,806 crore versus loss of Rs 5,005 crore.
- Ebitda seen up 20 percent at Rs 1,362 crore.
- Margin at 11.6 percent versus 9.7 percent.
- Average revenue per user seen up 9 percent at Rs 97.
The stock traded 29 percent below the Bloomberg consensus one-year target price, according to Bloomberg data.