Stocks Radar: Cipla, HDFC Bank, IndiGo, Reliance Industries, Tata Steel

Indian equity benchmarks opened lower, dragged down by losses in Bajaj Finance Ltd. and private lenders. The S&P BSE Sensex and the NSE Nifty 50 Index dropped as much as 0.9 percent to trade at 38,011 and 11,325.35, respectively, as of 9:40 a.m.

The market breadth was tilted in favour of sellers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 1.89 percent fall in the NSE Nifty Financial Service Index.

Here Are The Stocks Moving The Market This Morning

Tata Steel Falls For Fourth Straight Session

Shares of the steelmaker declined for the fourth straight session. The stock fell as much as 1.50 percent to Rs 451.20 apiece.

Tata Steel said it will raise $600 million, partly to refinance loans and also to fund the capex for expansion at its Kalinganagar plant, multiple media agencies reported quoting Chief Financial Officer Koushik Chatterjee as saying.

The stock trades 31 percent below the Bloomberg consensus one-year target price.

Cox & Kings Hits The Lower Circuit

Shares of the tours and travel operator hit the lower circuit of 5 percent to trade at Rs 16.35—its lowest ever level. The stock has been falling for 19 straight sessions.

The latest drop in stock comes after Brickwork Ratings lowered its ratings on the company’s non-convertible debentures worth Rs 50 crore to ‘BWR D’ from ‘BWR C’, citing delay in servicing of debt obligations.

Last week, the company said it defaulted on its repayment obligations on commercial papers worth Rs 45 crore, and interest of Rs 41 lakh could not be paid timely on bonds worth Rs 50 crore.

The stock has declined 91 percent in the past 52 weeks. That compares with the Sensex’s 4.3 percent gain during the period, according to Bloomberg data.

Cipla Trades At Three-Month Low

Shares of the drugmaker fell as much as 1.96 percent to Rs 526.20—the lowest since April 9.

That came after the U.S. Food and Drug Administration issued seven observations to the company’s manufacturing facility in Virgonangar, Bengaluru after a routine inspection, according to an exchange filing.

The stock’s trading volume was more than four times the 20-day average. It trades 23 times its estimated earnings per share for the coming year, Bloomberg data showed.

Reliance Industries Gains After Q1 Results

Shares of Reliance Industries Ltd. rose as much as 1.39 percent to Rs 1,266.35 apiece after quarterly net profit of India’s most valuable company met estimates. That’s despite a lower refining margin and sluggish petrochemical business.

Reliance Industries trades at 16 times its estimated earnings per share for the coming year. The stock has advanced 11 percent in the past 52 weeks.

Here are the key earnings highlights:

• Net profit grew 5.6 percent over the previous quarter to Rs 9,036 crore in the April-June period.
• Revenue rose 5.6 percent sequentially to Rs 88,263 crore.
• Operating profit fell for the fourth straight quarter to Rs 13,640 crore.
• Operating margin contracted 90 basis points to 15.5 percent.

IndiGo Drops Despite Posting Highest Quarterly Profit

Shares of InterGlobe Aviation Ltd. dropped as much as 2.61 percent to Rs 1,424.75 apiece.

That came even as the operator of India’s largest airline, whose promoters are publicly bickering over governance issues, reported its highest quarterly profit since listing on higher yields.

Meanwhile, the company is considering expanding its board strength to up to 10 members. It also awaits shareholders’ nod to induct a woman independent director on its board.

Here are the key earnings highlights:

• Profit surged more than 4,000 percent year-on-year to Rs 1,209 crore in the April-June quarter.
• Revenue rose 44.6 percent year-on-year to Rs 9,420 crore.
• Operating profit, or earnings before interest, taxes, depreciation, amortisation and rentals, jumped more than threefold to Rs 2,656 crore.
• Operating margin expanded 16 percentage points to 28.2 percent.
• Yields—a measure of average fare per passenger per kilometre—rose to Rs 4.08 per kilometer from Rs 3.62 a year ago. That’s the highest jump since listing.

HDFC Bank Falls After Q1 Results

Shares of the private lender dropped as much as 3.3 percent—the most since May 31—to Rs 2,296.6 apiece.

That came as the bank’s provisions rose even as higher other income boosted quarterly profit.

The stock trades at 14 percent below the Bloomberg consensus one-year target price. Analysts raised the target by 3 percent in the past three months, according to Bloomberg data.

Here are the key earnings highlights:

• Net interest income—or the core income of a bank—jumped 22.9 percent to Rs 13,294.3 crore.
• Gross non-performing assets ratio expanded to 1.4 percent from 1.36 percent in the previous quarter.
• Net NPA ratio stood at 0.43 percent from 0.39 percent in the March quarter.
• Provisions for bad loans advanced 38 percent quarter-on-quarter to Rs 2,613.7 crore.