Stocks Radar: Grasim Industries, Vodafone Idea, PC Jeweller, Jet Airways
Indian equity benchmarks opened slightly higher, led by gains in Kotak Mahindra Bank, amid a mixed trade in Asian stocks after another slide in U.S. equities overnight. The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 35,234.49 and 10,597.60, respectively, as of 11: 20 a.m.
The market breadth, however, was slightly tilted in favour of sellers. Three of the 11 sectoral gauges fell, led by a 0.26 percent decline in the NSE Nifty Media Index. The NSE Nifty IT Index was the top sectoral gainer, up 1.04 percent.
Here Are The Stocks Moving The Market This Morning
Grasim Worst Nifty Performer After Q2 Earnings
Shares of the cements-to-textiles conglomerate declined as much as 9.1 percent, the most in two years, to 796.70 apiece after the company suffered a surprise loss in the September quarter.
Net loss stood at Rs 1,446 crore in the July-September period versus a net profit of Rs 525 crore in the year-ago period, the Aditya Birla-group company said in an exchange filing. The exceptional loss is linked to the Vodafone-Idea merger, creating India’s largest telecommunications company. Idea Cellular ceased to be an associate of the company from Aug. 31, which led to Grasim excluding it as a part of its profit after tax. .
Other Highlights (Q2, Consolidated Year-on-Year)
- Revenue up 23.8 percent at Rs 16,795 crore.
- Ebitda up 1 percent at Rs 2,552.9 crore.
- Margin at 15.2 percent versus 18.6 percent.
- Exceptional loss of Rs 2,276.8 crore in the current quarter.
Here’s what Bank of America Merrill Lynch has to say about Grasim:
- Maintains ‘Buy’ but cuts price target to Rs 1,248 from Rs 1,405.
- September quarter’s Ebitda was in line; Standalone viscose staple fiber and chemicals business strong.
- Higher input costs drag profit from viscose staple fiber; caustic realisation low.
- Viscose staple fiber business capacity expansion on track; to be commissioned by March 2021.
Other Stocks Reacting To Q2 Earnings
Ujjivan Financial Services (Q2, YoY)
- Stock rose 4.8 percent intraday to Rs 228 per share.
- Net interest income up 33.8 percent at Rs 261.2 crore.
- Net profit at Rs 44.3 crore versus a net loss at Rs 12 crore.
- Net interest margin at 12 percent versus 10.6 percent.
- Loan book up 24.7 percent at Rs 8,317 crore.
- Gross NPA at 1.9 percent versus 2.7 percent in the preceding quarter.
- Net NPA at 0.3 percent versus 0.3 percent in the June quarter.
Indian Hotels (Q2, YoY)
- Stock fell nearly a percent to Rs 130 apiece.
- Revenue up 13.2 percent at Rs 964.5 crore.
- Net loss narrowed to Rs 5.2 crore from Rs 57.7 crore.
- Ebitda up 81.7 percent at Rs 99.2 crore.
- Margin at 10.3 percent versus 6.4 percent.
- Exceptional loss of Rs 45.3 crore in the current quarter.
United Breweries (Q2, Standalone YoY)
- Stock rose 3.7 percent to Rs 1,349.45 apiece.
- Revenue up 21.5 percent at Rs 3,331.8 crore.
- Net profit up 74.6 percent at Rs 163.8 crore.
- Ebitda up 43.4 percent at Rs 318.2 crore.
- Margin at 9.6 percent versus 8.1 percent.
- Volume growth at 17 percent for the quarter.
(Prices as of 9:50 a.m.)
Vodafone Idea Gains After Promoters Plan Fresh Capital Injection
Shares of India’s largest telecom operator fell as much as 7.9 percent, its biggest fall in over a month, to Rs 38.15 apiece.
Vodafone Idea’s board is planning to raise Rs 25,000 crore via various options, according to its exchange filing. Vodafone group would contribute Rs 11,000 crore and Aditya Birla Group Rs 7,250 crore in the fundraising. Also, the company announced its first quarterly results on Wednesday as a merged entity.
Vodafone Idea (Q2, Consolidated)
- Revenue at Rs 7,664 crore.
- Net loss at Rs 4,974 crore.
- Ebitda at Rs 461 crore.
- Margin at 6 percent.
- Average revenue per user at Rs 88.
Kotak Mahindra Gains After Block Deal
Shares of the private lender gained as much as 1.99 percent to Rs 1,152 apiece.
As much as 1.27 crore shares changed hands in a block deal on the National Stock Exchange at Rs 1,130 a share in the pre-market session. BloombergQuint had reported earlier that ING Group had plans to sell its remaining stake in the bank worth about $1 billion.
The stock gained 12.6 percent so far this year compared to a 4.5 percent rise in the BSE Sensex, Bloomberg data showed.
PC Jeweller Falls The Most In Four Months
Shares of the Delhi-based jewellery retailer fell as much as 19.19 percent to Rs 69.90 apiece after the company cut its FY19 export sales target to Rs 2,000 crore from Rs 2,700 crore .
“The export business is a credit-based business and the company wants to rationalise this as the credit availability is getting squeezed,” it said in a statement.
The stock declined 83 percent so far this year, according to Bloomberg data.
Jet Airways Jumps On Reports Of Tata Deal Gathering Pace
Shares of the full service carrier rose for the third straight session to Rs 274.70 apiece.
Tata Sons Chairman N Chandrasekaran is expected to present to the board on Friday a business viability plan on the proposed acquisition of the cash-strapped airline, Times of India reported.
The stock trades 14 percent below the Bloomberg consensus one-year target price.