Stocks Radar: Coal India, Jet Airways, Tata Steel, DHFL
India stocks fluctuated as investors weighed concerns that a plan by major oil producers to cut supply may fan the price of the nation’s biggest import even as the cost of crude declined.
The S&P BSE Sensex Index gained 0.1 percent to 34,843 while the NSE Nifty rose 10,498 as of 12:54 p.m. The market breadth was tilted in favour of sellers. Nine of the 11 sectoral gauges fell, led by a 0.84 percent decline in the NSE PSU Index. The NSE IT Index was the biggest gainer, up 0.37 percent.
Here Are The Stocks Moving The Market This Morning
Coal India Gains After Q2 Results
Shares of the world’s largest coal miner rose as much as 2.2 percent to Rs 269.55 per share.
Net profit rose over eight-fold year-on-year to Rs 3,084.7 crore, the world’s largest coal miner said in an exchange filing yesterday. That compares with the Rs 3,137-crore consensus estimate of analysts polled by Bloomberg.
- Revenue up 22.3 percent to Rs 22,198.1 crore.
- Ebitda at Rs 4,716 crore versus Rs 876.1 crore.
- Ebitda Margin at 21.3 percent versus 4.8 percent.
- Volume at 290.8 MT versus 269 MT.
- Maintained ‘Buy’ with a price target of Rs 360.
- September quarter’s operating income was ahead of estimates led by better-than-expected realisations.
- Realisations higher due to large FSA price hike and rising e-auction prices.
- Continue to like the stock given decent earnings growth outlook and attractive valuation.
- Maintained ‘Outperform’ with a price target of Rs 335.
- Strong prices drive in September quarter; adjusted operating income was inline.
- FSA realisations have stabilised; upside from strong linkage auction ahead.
- Risk reward attractive post divestment overhang; dividend yield could be higher.
Other Stocks Reacting To Q2 Earnings
Eicher Motors (Q2, Year-on-Year)
- Stock fell 3.4 percent intraday to Rs 21,196.75 per share.
- Revenue up 11.1 percent at Rs 2,408.2 crore.
- Net profit up 5.9 percent at Rs 548.8 crore.
- Ebitda up 6.9 percent at Rs 729.4 crore.
- Margin at 30.3 percent versus 31.5 percent.
Aurobindo Pharma (Q2, YoY)
- Stock rose 2.4 percent to Rs 815 per share.
- Revenue up 7.1 percent at Rs 4751.4 crore.
- Net profit down 21.7 percent at Rs 611.4 crore.
- Ebitda down 8.2 percent at Rs 1026 crore.
- Margin at 21.6 percent versus 25.2 percent.
- Exceptional loss of Rs 26.8 crore in the current quarter.
- Forex loss of Rs 39.7 crore in current quarter.
UCO Bank (Q2. YoY)
- Stock erased opening gains and fell 5.5 percent to Rs 19.10 per share.
- Net interest income up 47.1 percent at Rs 964.6 crore.
- Net loss at Rs 1,136.4 crore versus net loss at Rs 622.6 crore.
- Provisions at Rs 1,410.9 crore versus Rs 2,038.3 crore. (QoQ)
- GNPA at 25.37 percent versus 25.71 percent (QoQ)
- NNPA at 11.97 percent versus 12.74 percent (QoQ)
Jet Airways Gains After Report Suggests Tatas’ Interest
Shares of the full-service carrier reversed early losses and rose nearly 3.3 percent to Rs 250.20 apiece.
Tata Group is conducting due diligence on Jet Airways India Ltd., as the conglomerate looks to expand its footprint in the country’s growing air travel sector by potentially buying a stake the cash-strapped carrier, people familiar with the matter told Bloomberg.
Jet Airways reported its third straight quarterly loss Monday with surging liabilities that signaled deepening of financial distress. The stock declined 71 percent so far this year compared with 3.1 percent gain on the Sensex Index.
Oil India Gains After Buyback Proposal
Shares of the crude-oil and natural gas explorer rose 3.4 percent to Rs 205.75 per share.
Oil India’s board to consider buyback on Nov. 19, according to its exchange filing. The company has gross cash and cash equivalents worth Rs 5,253 crore. The stock trades 8.5 times trailing 12-month earnings per share and 6.7 times its estimates for the coming year, according to Bloomberg data.
DHFL Falls After Proposal To Issue Debentures
Shares of the housing-finance company snapped its four-day gaining streak and fell close to 3 percent to Rs 234.40 apiece.
The company plans to issue redeemable non-convertible debentures, according to an exchange notification. The quantum of total debentures amounts to Rs 1,500 crore and is planned to be raised through private placement basis.
Out of the 12 analysts tracked by Bloomberg, 11 recommend a ‘Buy’, one suggests a ‘Hold’ and none has a ‘Sell’ rating on the stock.
Oil Marketers Gains As Crude Resumes Decline
Shares of the oil marketing companies rose in today's trade after the crude oil extended decline for the sixth day on record. The Brent crude fell 0.87 percent to trade at 69.51 a barrel.
- Indian Oil rose as much as 2.7 percent to Rs 138.70 per share.
- HCPL rose 4.3 percent to Rs 234.70 percent apiece.
- BPCL rose 4.1 percent to Rs 303 per share.
(Prices as of 9:55 a.m.)
The stocks were the best performers on the Nifty 50 Index.
Tata Steel Swings Ahead Of Q2 Results
Shares of the steelmaker fluctuated between gains and losses to trade at Rs 582.80 apiece as the company is expected to report its earnings for the July-September quarter today.
Preview (Consolidated, YoY)
- Revenue expected to rise 25.7 percent to Rs 40,806 crore.
- Ebitda seen to rise 51.1 percent to Rs 7,133.8 crore.
- Ebitda margin seen to expand 300 basis points to 17.5 percent.
- Net Profit seen at Rs 2,483 crore versus Rs 976 crore.
The stock trades 23 percent below the Bloomberg consensus one-year target price.