Stocks Radar: DHFL, Endurance Technologies, Reliance Capital, New India Assurance
Indian equity benchmarks extended gains for the third consecutive trading session.
The S&P BSE Sensex traded nearly 0.40 percent higher at 36,585.55 and the NSE Nifty 50 at 11,036.85, up 0.44 percent, as of 9:50 a.m.
The market breadth was tilted in favour of buyers. Nine out of the 11 sectoral gauges gained, led by the NSE Nifty PSU Bank Index’s 1.12 percent advance. The NSE Nifty Pharma Index was the biggest sectoral loser, down 0.08 percent.
Here Are The Stocks Moving The Market This Morning:
Endurance Technologies Slumps After Promoters Offload Stake
Shares of the Aurangabad-based company declined for the fourth straight session as it slumped nearly 10 percent intraday to Rs 1,136.55 per share. Endurance Technologies Ltd.’s promoter said it will sell 63.6 lakh equity shares or 4.52 percent equity with greenshoe option of additional 41.9 lakh equity shares or 2.98 percent equity, according to an exchange filing. The floor price for the offer for sale is set at Rs 1,100—a discount of 12.6 percent.
The trading volume was more than 40 times the 20-day average for this time of the day, according to Bloomberg data.
Quick Heal Technologies Jumps After Buyback Approval
Shares of the cyber security solutions provider rose as much as 7.1 percent to Rs 240 apiece. The stock returned 16.1 percent in the last five sessions.
Quick Heal Technologies Ltd. will buyback 63.6 lakh equity shares or 9.02 percent equity at Rs 275 per share, according to its notification to the exchanges. Total buyback is worth Rs 175 crore.
The stock declined 19 percent in the past 12 months compared with an 8 percent gain in the BSE Sensex.
DHFL Jumps After Releasing Report On Cobrapost Allegations
Shares of the housing finance company rose nearly 21.2 percent, the most since September 2018, to Rs 162.30 after the company released a report of an independent audit firm with respect to the allegations made against the company by investigative website CobraPost.
Other highlights of the report:
- Findings suggests that Dewan Housing Finance Corporation Ltd. has not created shell companies and diverted funds.
- Auditor did find some lapses in relation to pre-sanction due diligence and in monitoring of post disbursal end use of funds by the borrowers.
- Auditor does not find merit in allegations of loans said to be part of Sahana group and/or Wadhawan group.
- Allegation of political considerations is baseless and without merit.
- No evidence found in relation to allegations of tax fraud.
The consensus one-year target price of analysts tracked by Bloomberg for the stock is Rs 385.80, indicating a potential return of close to 150 percent.
Reliance Capital Falls After ICRA’s Rating Downgrade
Shares of the financial services company snapped its three-day winning streak and declined as much as 3.2 percent to Rs 187.25 per share.
ICRA downgraded company’s short-term debt programme rating by one notch to A1 with negative implications from A1+, according to an exchange notification. Downgrade was due to refinancing risk of short-term maturities and delay in monetising the non-core investments, the notification said. The company said it considers the rating action “completely unjustified and inappropriate”.
The stock traded 4.4 times the estimated earnings per share for the coming year, according to Bloomberg data.
Grasim Industries Gains After Plans To Buy Soktas India
Shares of the cement-to-textiles conglomerate rose as much as 1.5 percent to Rs 822.20 apiece.
Grasim Industries signed definitive agreement with Soktas India Pvt. Ltd. for an enterprise value of Rs 165 crore, according to its exchange filing. Soktas is in the business of manufacturing and the distribution of premium cotton fabrics and reported revenue and Ebitda of Rs 186 crore and Rs 31 crore in 2017-18.
Out of the 13 analysts tracked by Bloomberg, 11 analysts recommended ‘Buy’ on the stock and two had a ‘Hold’ rating.
New India Assurance Jumps The Most In Over Seven Months
Shares of the multiline insurance company extended gains for the third consecutive trading session and are poised for the longest gaining streak in over a month. The stock rose as much as 14.8 percent, the most since July 2018, to Rs 212.
Trading volume was almost 100 times its 20-day average, Bloomberg data showed. The stock had formed a bullish “double bottom” chart pattern, according to Bloomberg, which indicates that the price may rise to the range of Rs 190-192 from the yesterday’s close of Rs 184.60.