Stocks Radar: Eveready Industries, HCL Tech, Reliance, Welspun Corp
Indian benchmark indices Sensex and Nifty opened higher in today’s opening session, halting their seven-day falling streak. However, markets turned volatile later in trade as U.S. imposed additional tariffs on about $200 billion of Chinese goods.
The Sensex was up 0.13 percent at 37,606 and the Nifty traded at 11,306.45, 0.1 percent higher, as of 10:15 a.m. The market breadth was tilted in favour of buyers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange gained, led by a 1.17 percent advance in the NSE Nifty Media Index. The NSE Nifty IT Index was the top sectoral loser, down 0.45 percent.
Here Are The Stocks Moving The Market This Morning:
Welspun Corp Gains After Share Buyback Plans
Welspun shares gained for the second day after it rose as much as 3.3 percent to Rs 145 per share. The pipe maker, in an exchange notification, said it will consider a share buyback proposal during its board meet scheduled on May 14. Also, the company may consider recommending a final dividend for FY19, the filing said.
The stock traded at 27 times its estimated earnings per share for the coming year, according to Bloomberg data.
Eveready Halts 4-Day Fall
Eveready shares snapped its four-day fall and rose as much as 3.2 percent to Rs 89.45 today. The company’s promoter Williamson Magor & Company created a pledge of 56.83 lakh, or 7.82 percent, in favour of IndusInd Bank on April 30, according to a filing.
The stock has declined 68 percent in the past one year compared with a 7 percent rise in the Sensex.
Reliance Shares Gain After Hamleys Acquisition
Reliance Industries shares halted their four-day decline and rose as much as 1.7 percent to Rs 1,277.70 apiece today.
Reliance Brands, part of the Mukesh Ambani-led conglomerate, has bought 100 percent stake in Hamleys Global Holdings Ltd. from C Banner International, a Hong Kong-listed company for £67.96 million, according to an exchange filing. That’s roughly Rs 620 crore.
The stock traded 12 percent below the Bloomberg one-year target price but regained the Rs 8 lakh crore market cap-mark that it lost in Thursday’s trade.
HCL Tech Worst Nifty Performer
Shares of HCL Technologies fell as much as 4.2 percent, the most in over five months, to Rs 1,088. The stock was the worst performer on Sensex and Nifty.
Key Earnings Highlights (Q4, QoQ)
- Dollar revenue up 3.5 percent at $2278 million.
- Revenue up 1.9 percent to Rs 15,990 crore.
- Net profit down 2.1 percent to Rs 2,550 crore.
- Net profit down 1.7 percent to Rs 2,568 crore (adjusted).
- EBIT down 1.5 percent to Rs 3,039 crore.
- Margin at 18.9 percent from 19.6 percent (adjusted).
- FY20 Revenue guidance of 14 to 16 percent (constant currency terms).
Here’s what analysts had to say on the stock:
- Maintained ‘Buy’ with a price target of Rs 1,380.
- Sharp revenue beat led by organic recovery, organic guidance conservative.
- Margins slip slightly; 2019-20 guide sharply lower from one-off IBM transition costs.
- Digital accelerates but products impacted by seasonality.
- Rebounding organic growth and undemanding valuation.
- Maintained ‘Underweight’ with a price target of Rs 931.
- Q4 and FY20: better revenue growth but weaker margin.
- Do not expect march quarter results and 2019-20 guidance to have any material impact on earnings estimates.
L&T Falls Ahead Of Q4 Results
L&T shares declined nearly 1 percent to Rs 1,345 apiece ahead of its March quarter results today. India’s largest construction company is in the process of acquiring Mindtree Ltd in a hostile takeover bid.
- Revenue expected to gain 8 percent to Rs 44,026 crore.
- Net profit expected to rise 7 percent to Rs 3,394 crore.
- Ebitda seen to gain 11 percent to Rs 6,002 crore.
- Margin to expand 30 basis points to 13.6 percent.
The stock traded at 21 times its estimated earnings per share for the current year, Bloomberg data showed.