Stocks Radar: Hero MotoCorp, Jet Airways, United Breweries
Indian equities fluctuated between gains and losses in today’s trade even as Asian peers remained steady.
The S&P BSE Sensex fell nearly 22 points to 52,566.76, after reaching a high of 52,912.35. The NSE Nifty 50 fell to 15,752.95 after touching 15,769. The broader markets represented by the NSE Nifty 500 remained flat at 13,489.95.
The market breadth, however, was tilted in favour of buyers, as 1,719 stocks advanced and 1,200 declined on the BSE. Of the 19 sectoral gauges compiled by BSE, 10 traded lower, led by oil and gas.
Here Are The Stocks That Are In The News
Hero MotoCorp Gains On Price Hikes
Shares of Hero MotoCorp Ltd. gained after India’s largest two-wheeler maker hiked prices of its models for the third time this year, owing to a continuous increase in commodity costs.
The company will increase prices (ex-showroom) of its motorcycles and scooters by up to Rs 3,000 from July 1, it said in a statement on Tuesday. “The company continues to drive cost savings programme aggressively, in order to minimise the impact on the customer.”
The stock gained as much as 3.02% to Rs 2,995 apiece.
United Breweries Swings After Large Trade
Shares of United Breweries Ltd. swung between gains and losses after 15% equity changed hands in a single large trade.
Heineken acquired an additional 39.6 million shares in United Breweries, taking its shareholding in the alcohol maker from 46.5% to 61.5%, according to exchange data. This, after the market regulator exempted Heineken from making an open offer for UB shares.
While the increase in ownership may not translate into material benefits in the medium-term, Emkay Global said UBL seems to be in a stronger position and remains an attractive recovery play post-Covid.
“Annual report indicates sustained investments in brands, increased footprint for premium brands, impressive savings in fixed costs, and initiatives for water conservation and reducing carbon footprint,” the brokerage said in a note.
Emkay maintained 'buy' rating and raised target price to Rs 1,570 from Rs 1,450.
Shares of United Breweries were trading 2.1% lower at Rs 1,425.90.
Jet Airways Shares Hit Upper Circuit For Second Day
Shares of Jet Airways (India) Ltd. hit the upper circuit for the third day in a row after the NCLT approved the resolution plan by new owners—Dubai-based businessman Murari Lal Jalan and Kalrock Capital Management Ltd.
This takes the airline closer to resuming operations after shutting down nearly two years ago.
Shares of Jet Airways rose 4.98% to Rs 104.40 apiece.
Venky’s India Jumps To 2018 High
Shares of Venky’s India Ltd. rose to the highest in more than three years after the poultry breeder said it would benefit from bumper crops of soya and maize.
“Over a period of time, soya and maize production will grow in large quantity and poultry is a prime consumer of both soya and maize in India. So definitely, the benefits will come to poultry when production goes up,” Prasanna Pedgaonkar, general manager at the company, told CNBC-TV18 television channel in an interview.
The company, he said, has recorded a good performance despite Covid-19 disruptions, helped by diversification.
The stock climbed 11% to Rs 3,798 apiece, its highest since May 2018, with volumes over 940% of three-month average. The scrip gained for the fourth straight session.
Wabco India Gains On Founder’s Stake Sale Plan
Shares of Wabco India gained as its founder group plans to sell as much as 2.6% stake, a move that will increase the number of free float shares in the closely-held automotive parts maker.
The founder group and related entities hold 80.4% in the company, Bloomberg reported citing BSE data.
ZF International UK Ltd., one of the company’s founders, has proposed to sell 5 lakh shares through market transactions. The offer starts today for institutional investors, while retail investors can place bids tomorrow, according to an exchange filing.
The floor price for the sale is set at Rs 6,550 per share.
ZF International also has an option to sell additional 1,50,000 shares in the offer
The Wabco India stock jumped as much as 7.3%, its biggest single-day gain since June 16.
Godrej Agrovet Surges Most In Six Weeks As Founder Raises Stake
Shares of Godrej Agrovet jumped the most since May 12 after founders raised stake in the Mumbai-based animal feed and agribusiness company via open market deal.
Godrej Industries Ltd., which holds 60.2% stake in Godrej Agrovet, acquired an additional 9.76 lakh shares, or 0.5% stake, on Tuesday, the bulk deals data released by the BSE showed.
Balram Singh Yadav, an individual investor, holding about 2.2% stake in the company as on March 31, sold 10 lakh shares, the data showed.
The stock gained as much as 8.1%, advancing for the third straight session. The trading volume was 5.4 times its three-month full-day average.
Stocks Reacting To Results Announcement
Sobha (Q4, YoY)
Stock down 2.63% at Rs 489.55.
Revenue down 19% at Rs 553.40 crore.
Net profit down 17% at Rs 17.90 crore.
Ebitda down 16% at Rs 149.70 crore.
Ebitda margin at 27.1% versus 26.1%.
Recommended dividend of Rs 3.50 per share.
Centrum Capital Q4FY21 (Consolidated, QoQ)
Stock down 4.20% to Rs 45.60.
Revenue up 20% at Rs 144.43 crore.
Net loss at Rs 11.71 crore vs a loss of Rs 16.02 crore.
Ebitda up 38% at Rs 63.82 crore.
Ebitda margin at 44.2% versus 38.3%.
Approved up to Rs 1,500 crore fundraising plan.