Stocks Radar: Den Networks, Jet Airways, Mindtree, Wipro, RIL

Indian equity benchmarks extended gains for the fourth consecutive trading session to open at record highs.

The S&P BSE Sensex rose as much as 0.54 percent to 39,487.45 and the NSE Nifty 50 rose as much as 0.59 percent to 11,856.15. The broader market index represented by the NSE Nifty 5000 Index rose as much as 0.46 percent.

The market breadth was tilted in favour of buyers. About 837 stocks advanced and 656 shares declined on National Stock Exchange. Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Auto Index’s 0.76 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.91 percent.

Here Are The Stocks Moving The Market This Morning

Mindtree Swings After Announcing Special Dividend

Shares of Mindtree fluctuated between gains and losses and traded 0.46 percent lower at Rs 968.

The Bengaluru-based software developer will pay a total dividend of Rs 27 per share even as the software services provider looks to fend off a hostile takeover by Larsen and Toubro Ltd.

The board approved an interim dividend of Rs 3 per share, according to its exchange filings. It also proposed a final dividend of Rs 4 and a special dividend of Rs 20 apiece, subject to shareholder approval.

Besides, the company’s profit during January-March period met analysts’ expectations.

Key Earnings Highlights (Q4, QoQ)

• Revenue rose 2.9 percent to Rs 1,839.4 crore.
• Net profit was up 3.7 percent to Rs 198 crore.
• Ebit down 2.1 percent to Rs 237 crore.
• Margin at 12.9 percent versus 13.6 percent.

Here’s what Investec had to say after the results announcement:

• Downgraded to ‘Hold’ from ‘Buy’; hiked price target to Rs 1,012 from Rs 950.
• Mindtree guided mid-teen revenue growth and 120 basis points margins expansion for 2019-20.
• This is likely to leave investors wanting more in L&T’s open offer.
• Whether L&T will increase the open offer price or stay with what it already has is what one needs to consider for a ‘Buy’ call at this stage.

Jet Airways Falls Over 34% After Halting Operations

Shares of Jet Airways (India) Ltd. clocked its worst intraday decline after falling as much as 34 percent to Rs 158.70.

The airline operator suspended operations after it failed to secure a bailout. The company took a decision to halt flights on a “temporary” basis from Thursday, it said in a statement late on Wednesday, when the last service was scheduled to take place.

The stock declined 13 percent so far this year and fell 61.1 percent in the past 12 months.

Wipro Swings After Q4 Results, Share Buyback Announcement

Shares of Wipro fluctuated between gains and losses to trade little changed at Rs 280.85. The stock had risen 3.1 percent intraday.

The Bengaluru-based information technology company plans to buy back 32.31 crore shares, or 5.35 percent equity, at a price of Rs 325 apiece aggregating to Rs 10,500 crore. The buyback is at a premium of 16 percent from the last regular trade.

Besides, its quarterly profit met analyst expectations even as margin narrowed because of a stronger rupee.

Key Earnings Highlights (Q4, QoQ)

• Revenue up 0.7 percent to Rs 15,161 crore.
• Net profit down 1.1 percent to Rs 2,483.5 crore.
• Ebitda down 2.7 percent to Rs 2,700.7 crore.
• Margin at 17.8 percent versus 18.4 percent.

Here’s what analysts had to say about Wipro after the results announcement:

Investec

• Maintained ‘Hold’ with a price target of Rs 265.
• Reported a weaker-than-expected March quarter with lower revenue and margins.
• Weak revenue growth guidance for the first quarter to weigh on remaining 9MFY20.
• EBIT margin expected to improve in 2019-20, but already priced in.
• Buyback to keep stock elevated in the near term.

Morgan Stanley

• Maintained ‘Underweight’; hiked price target to Rs 255 from Rs 225.
• March saw weaker IT services revenue but better EBIT.
• Margin improvement was a key highlight in 2018-19.
• Expect second half of the current financial year’s growth to be better than the first half.

RIL Top Performer On Sensex, Nifty Ahead Of Results

Shares of Reliance Industries were the top performer on Sensex and Nifty ahead of its results announcement. The stock rose as much as 2.4 percent to Rs 1,376.

Here’s what analysts tracked by Bloomberg expect the company to report on a sequential basis:

Reliance Industries (Q4, QoQ)

• Net profit seen 4.9 percent at Rs 8,490 crore.
• Revenue seen 6.7 percent lower at Rs 93,357 crore.
• Ebitda seen 5.6 percent lower at Rs 13,693 crore.
• Margin seen at 14.7 percent versus 14.5 percent.

Reliance Jio (Q4, QoQ)

• Net profit seen 17.1 percent higher at Rs 973 crore vs Rs 831 crore
• Revenue seen 9.6 percent higher at Rs 11,376 crore.
• Ebitda seen 10.6 percent higher at Rs 4,483 crore.
• Margin at 39.4 percent versus 39 percent.
• Average revenue per user seen 0.8 percent down to Rs 129 vs Rs 130.

Other Stocks Reacting To Earnings Announcement

Den Networks (Q4, YoY)

• Stock fell as much as 2.3 percent to Rs 66.
• Revenue down 13.3 percent to Rs 273.1 crore.
• Net loss at Rs 186.4 crore versus net loss of Rs 10.8 crore.
• Ebitda down 34.3 percent to Rs 37.4 crore.
• Margin at 13.7 percent versus 18.1 percent.
• Other income of Rs 28 crore.
• Exceptional Loss of Rs 211.1 crore.
• Cable distribution network revenue down 14 percent to Rs 255.1 crore.
• Broadband segment revenue up 8 percent to Rs 18 crore.

Crisil (Q4, YoY)

• Stock fell as much as 4.1 percent to Rs 1,549.95.
• Total Income at Rs 422.88 crore versus Rs 427.57 crore.
• Net profit at Rs 76. 64 crore versus Rs 82.21 crore.

Tata Steel BSL (Q4, YoY)

• Stock rose as much as 3.3 percent to Rs 37.95.
• Revenue up 22.7 percent to Rs 5,517.5 crore.
• Ebitda up 3 percent to Rs 786 crore.
• Margin at 14.2 percent versus 17 percent.