A broker speaks on his mobile phone as ceremonial purchases of stocks are made during the session marking Diwali at the Bombay Stock Exchange in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: Cipla, Coal India, HCL Technologies, Tata Motors

Indian equity benchmarks opened higher on the last day of Samvat 2074 amid mixed trade in Asian stocks. The S&P BSE Sensex and the NSE Nifty 50 Index traded higher at 35,037.88 and 10,543.15, respectively, as of 11: 05 a.m.

The market breadth was tilted in favour of buyers. Six of the 11 sectoral gauges advanced, led by a 0.84 percent gain in the NSE Media Index. The NSE Nifty PSU Bank Index was the top loser, down 1.36 percent.

Here Are The Stocks Moving The Market This Morning

SBI Fluctuates After Q2 Earnings

Shares of India’s largest state-run lender pared opening gains and fell as much as 1.4 percent to Rs 290.90.

The bank’s net profit fell 40 percent year-on-year to Rs 945 crore in the July-September quarter, according to its exchange filing. That’s higher than the Rs 775-crore profit estimated by analysts tracked by Bloomberg.

Other Highlights (year-on-year):

  • Net interest income rose 12 percent to Rs 20,905 crore.
  • Gross NPA stood at 9.95 percent versus 10.69 percent in the preceding quarter.
  • Net NPA stood at 4.84 percent versus 5.29 percent in the April-June period.
  • Fresh slippages rose to Rs 10,888 crore versus Rs 14,350 crore in the previous quarter.

Here’s what the brokerages have to say about SBI:

CLSA

  • Maintains ‘Buy’ with a price target of Rs 370, implying a potential upside of 25 percent from the last regular trade.
  • Asset quality normalising; deferral of provisioning on Essar Steel lifts earnings.
  • Moderation in credit costs to support sharp recovery in profit from the next financial year.
  • CASA uptick is key to support loan growth.

Macquarie

  • Maintains ‘Neutral’ and cuts price target to Rs 265 from Rs 280, implying a potential downside of 10 percent from the last regular trade.
  • Growth disappoints; strong on asset quality.
  • Management expects recoveries from cases under the NCLT in the second half of the ongoing financial year.
  • Key catalyst: reduction in slippages, pick-up in loan growth.

Also read: State Bank of India Is Still Too Cheerful After Eight Misfires

Others Stocks Reacting To Earnings:

Power Grid Corporation (Q2, YoY)

  • Stock reversed opening gains and rose 1.6 percent to Rs 188.15 apiece.
  • Revenue up 14.2 percent at Rs 8,283 crore.
  • Net profit up 7.9 percent at Rs 2,309.5 crore.
  • Ebitda up 7.7 percent at Rs 6,972.4 crore.
  • Margin at 84.2 percent vs 89.3 percent.

PNB Housing Finance (Q2, YoY)

  • Stock rose 5.6 percent to Rs 927.60 apiece.
  • Net interest income up 31.8 percent at Rs 579.4 crore.
  • Net profit up 33.1 percent at Rs 253 crore.
  • Loan assets up 37 percent at Rs 66,792 crore.
  • Assets under management stood at Rs 73,842 crore.
  • Gross NPA at 0.45 percent versus 0.34 percent.

Phoenix Mills (Q2, YoY)

  • Stock rose 5.6 percent to Rs 615.95 a share.
  • Revenue up 9.2 percent at Rs 404.7 crore.
  • Net profit up 48.3 percent at Rs 62 crore.
  • Ebitda up 11 percent at Rs 198.1 crore.
  • Margin at 48.9 percent versus 48.1 percent.

(Prices as of 9:40 a.m.)

Coal India Gains After Government Trims Stake

Shares of the state-owned miner rose close to a percent to Rs 266.40 apiece.

The government reduced its stake in Coal India by 3.19 percent through an offer-for-sale, according to the company’s exchange filing. The government’s current holding stands at 75.13 percent of the equity share capital of the company.

The stock trades 23.5 times trailing 12-month earnings per share and 10 times its estimates for the coming year, Bloomberg data showed.

Also read: Government Sells 3.18% In Coal India, To Get Rs 5,300 Crore

Cipla Slumps To Five-Month Low After Stock Downgrade

Shares of the drugmaker fell close to 5 percent to Rs 535 apiece after analysts downgraded the stock and cut target price on a weak outlook by the management.

The trading volume was 20 times the 20-day average, according to Bloomberg data.

Also read: Cipla Slumps To Five-Month Low As Analysts See Strain On Profitability   

HCL Technologies Jumps After Signing New Pact

Shares of the IT services company rose as much as 2.1 percent to Rs 1,042 apiece.

HCL Technologies tied up with Deutsche Bank to provide a digital cheque processing platform to the bank, according to its exchange notification.

The stock gained 23.1 percent in the past 12 months compared to a 5.5 percent gain in the BSE Sensex, according to Bloomberg data.

Tata Motors Gains After JLR Sales Rise In October

Shares of the Jaguar Land Rover-owner rose as much as 4.8 percent to Rs 198.90 apiece.

Sales of Jaguar rose 81.9 percent year-on-year to Rs 3,324 units in October, according to data shared by the U.K. Auto Body.

The stock trades 26 percent below the Bloomberg consensus one-year target price.

Balkrishna Industries Falls After Q2 Earnings

Shares of tyremaker fell close to 10 percent, the most since Sept. 21, to Rs 962.50 apiece.

Key Earnings Highlights (Q2, YoY):

  • Revenue up 18.9 percent at Rs 1,325.5 crore.
  • Net profit up 9.5 percent at Rs 222.3 crore.
  • Ebitda up 9.1 percent at Rs 332.7 crore.
  • Margin stood at 25.1 percent versus 27.4 percent.
  • Other expenses stood at Rs 312.6 crore compared with Rs 201.7 crore.

The trading volume is eight times its 30-day average, according to Bloomberg data. The stock fell 18 percent so far this year compared to a 4.3 percent advance in the Sensex.