Stocks Radar: DHFL, Edelweiss Financial Services, IDFC First Bank, Tech Mahindra
Here are the stocks moving the market in today’s trade.
Indian equity benchmarks fluctuated in opening trade as investors await the outcome of the federal elections in the world’s largest democracy scheduled to be announced tomorrow.
The S&P BSE Sensex rose as much as 0.25 percent to 39,064.45 and the NSE Nifty 50 Index gained nearly 0.12 percent to 11,724.60, as of 9:41 am. The market breadth, however, was tilted in favour of the sellers.
Six of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by the Nifty PSU Media Index’s 1 percent fall. The Nifty Realty Index was the top sectoral gainer, rising 1.09 percent.
Stocks Moving The Market In Today’s Trade
DHFL Plunges After Halting Fresh Deposits, Premature Withdrawals
Shares of the Mumbai-headquartered company snapped its three-day gaining streak and fell as much as 17.8 percent to Rs 106.85 apiece.
The non-bank lender decided to stop taking fresh deposits and halted premature withdrawals from existing deposit schemes, according to a notice sent by the company to depositors. The move comes as DHFL tries to manage its tight liquidity position and deal with pressure on credit ratings.
The trading volume was more than eight times the 20-day average for this time of the day, Bloomberg data showed.
Edelweiss Financial Services Gains After U.S. Firm Buys Stake In Unit
Shares of the financial services company rose 2.2 percent intraday to a one-month high of Rs 189.50.
U.S.-based insurance firm Arthur J. Gallaghar & Co. will acquire minority stake in company’s arm Edelweiss Insurance Brokers.
The stock has fallen 43 percent in the past 12 months compared with a 13 percent gain in the Sensex.
Bharti Infratel Rises On Merger Update
Shares of the telecom tower operator rose for the fifth straight session after it gained nearly 1.8 percent to Rs 280.90 apiece. The stock gained around 6.3 percent in the past five sessions.
Shareholders of Bharti and Vodafone Group appointed Bimal Dayal as chief executive officer and Hemant Ruia as chief financial officer of the merged entity, according to an exchange filing. The merger process is at an advanced stage of completion, the filing said.
The stock traded 21 times its estimated earnings per share for the coming year, Bloomberg data showed.
IDFC First Bank Falls After ICRA Downgrades Bond Programme
Shares of the private lender declined for the third straight session after it fell as much as 4.3 percent to Rs 41.55.
ICRA downgraded long-term rating of the bank’s non-convertible debentures to AA from AA+, according to the agency’s note. The rating agency downgraded Rs 38,670 crore of non-convertible debentures with a stable outlook.
The stock advanced 7.8 percent in the past 12 months compared with the Sensex’s 13 percent gain.
Just Dial At Over Three-Year High
Shares of the local-search engine close to 5 percent to Rs 750 apiece, its highest since May 2016. The shares have advanced over 36 percent in the last seven days.
Trading volume was more than nine times its 20-day average for this time of the day, according to Bloomberg data. The relative strength index on the stock was over 70, indicating it may be overbought.
Tech Mahindra Declines After Q4 Results
Shares of the software exporter fell 3.60 percent intraday to Rs 745.25 apiece, the lowest in over three months. The company reported its results for the quarter ended March on Tuesday.
Net profit declined 6.6 percent quarter-on-quarter to Rs 1,127 crore for the three-month period, the company said in an exchange filing today. That compares with the Bloomberg consensus estimate of Rs 1,174 crore.
Here’s what the brokerages had to say:
Motilal Oswal
- Maintained ‘Buy’ with a price target of Rs 890.
- March quarter was dragged by enterprise unit.
- Expect traction to shift from enterprise to communications.
- Continue estimating an Ebitda margin band of 18-18.5 percent.
Citi
- Maintained ‘Neutral’ with a price target of Rs 790.
- Weak March quarter; EBIT slightly below.
- FY19 CC revenue growth continues to lag peers.
- FY20 growth to be backend given H2 is seasonally strong.
Jefferies
- Maintained ‘Buy’ with a price target of Rs 880.
- Q4 Review: Miss in revenue and margin due to one-off charge.
- Overall revenue growth guidance for 2019-20 maintained.
- Risk-reward favourable.
Credit Suisse
- Maintained ‘Outperform’; cut price target to Rs 910 from Rs 950.
- Q4 Review: A mixed bag although telecom business looking up.
- Deal wins in telecom continue to be robust; don't see immediate impact from Huawei ban.
- Cut earnings-per-share estimates by 3 percent to factor in Q4 miss.
Deutsche Bank Research
- Maintained ‘Buy’ with a price target of Rs 833.
- Revenue was in line while EBIT was below estimates.
- Telecom vertical improves, manufacturing remains robust.
- Stock trades at lower valuations which we believe could expand.
The stock traded 15 percent below the Bloomberg consensus one-year target price.