Stocks Radar: ICICI Bank, Cox & Kings, Nestle India, Bombay Dyeing

Indian benchmarks opened higher on Monday even as Asian stocks traded mixed and U.S. stock futures pared gains. The S&P BSE Sensex and the NSE Nifty 50 Index traded nearly 0.6 percent higher at 33,529.97 and 10,081.55, respectively, as of 11:13 a.m.

The market breadth was tilted in favour of buyers. All the 11 sectoral gauges advanced, led by a 4.18 percent gain in the NSE Nifty PSU Bank Index.

Here Are The Stocks Moving The Market This Morning

ICICI Bank Jumps After Q2 Results

Shares of the private lender jumped nearly 8.3 percent, its biggest intraday gain in over two months, to Rs 331.40 apiece after the company returned to profitability in the July-September quarter.

ICICI Bank reported a Rs 909-crore profit, about 56 percent lower than in the same quarter last year, due to lower provisioning for bad loans and higher interest income, according to its exchange filing.

Other Highlights (Year-on-Year)

• Net interest income rose 12.4 percent to Rs 6,418 crore.
• Total provisions stood at Rs 3,994 crore against Rs 5,971 crore in the precding quarter.
• Gross NPA (as a percent of gross advances) stood at 9.30 percent versus 9.65 percent in the preceding quarter.
• Net NPA (as a percent of gross advances) stood at 4.05 percent versus 4.67 percent in the previous quarter.

Here’s what brokerages have to say about the stock:

Morgan Stanley

• Maintains ‘Overweight’ with a price target of Rs 460 apiece.
• Strong show on pre-provisioning operating profit and asset quality.
• Expects net interest margin and loan growth to pick up over the next three to four quarters.

CLSA

• Maintains ‘Buy’ but cuts price target to Rs 410 from Rs 430.
• Top line growth at multi-quarter high; asset quality stabilising.
• Uptick in current account, savings account growth will be key.
• Normalisation of asset quality and rise of return on equity to drive re-rating.

Nestle India Falls After Q2 Earnings

Shares of the maker of Maggi instant noodles fell as much as 3 percent to Rs 9,860.80 apiece.

Net profit of the New Delhi-based company rose 30 percent year-on-year to Rs 446 crore, according to its exchange filing.

Other Highlights

• Revenue rose 17 percent to Rs 2,939 crore.
• Ebitda increased 24 percent to Rs 724.5 crore.
• Margin stood at 24.7 percent against 23.2 percent.

Yet, Jefferies cut its target price to Rs 11,600 from Rs 11,650 apiece. Here’s what it has to say about Nestle India:

• Maintains ‘Buy’.
• September quarter review: strong all-round show.
• Expansion in margins despite higher marketing spend highlights top line and market share focus.
• Volume growth was broad-based; expects momentum to sustain.

The stock gained 25 percent so far this year and 38 percent in the past 12 months, Bloomberg data showed.

Other Stocks Reacting To Earnings

Jindal Stainless (Q2, YoY)

• Stock slumped close to 10 percent to Rs 46.05 apiece.
• Revenue rose 18 percent to Rs 3,081 crore.
• Net loss of Rs 36 crore versus a net profit of Rs 27 crore.
• Exceptional loss of Rs 53 crore in the current quarter.
• Ebitda down 10 percent to Rs 231 crore.
• Margin stood at 7.5 percent versus 9.9 percent.

Divi’s Lab (Q2, YoY)

• Stock rose 14.3 percent to Rs 1,435 a share.
• Revenue up 44 percent at Rs 1,285 crore
• Net profit up 92 percent at Rs 398 crore.
• Ebitda up 85 percent at Rs 514 crore.
• Margin at 40 percent versus 31 percent.
• Other income rose to Rs 80 crore from Rs 34 crore due to forex gain.
• Forex gain up 40 percent at Rs 53 crore.

Eros International Media (Q2, YoY)

• Stock surged 11.1 percent to Rs 75.40 apiece.
• Revenue up 9 percent at Rs 293 crore.
• Net profit up 40 percent at Rs 77 crore.
• Ebitda remained flat at Rs 82.5 crore.
• Margin stood at 28.2 percent versus 30.8 percent.

(as of 9:48 a.m.)

Cox & Kings Hits Upper Circuit After Unit Sale

Shares of the travel services provider were locked in the upper circuit at 5 percent after the company sold its education business to U.K-based Midlothian Capital Partner.

Cox & Kings announced to sell HB Education to Midlothian Capital Partner for an enterprise value of £467 million, or Rs 4,380 crore, according to its exchange notification. HB Education contributed 21 percent and 47 percent to the revenue and net worth of Cox & Kings. The deal is expected to complete by Nov. 23.

The stock, currently at Rs 194.75 apiece, trades at 9 times trailing its 12-month earnings per share, according to Bloomberg data.

India Cements Gains After Springway Acquisition

Shares of the cement maker rose as much as 2.2 percent to Rs 83.50 apiece.

India Cements said it has agreed to acquire Springway Mining Pvt. Ltd. for Rs 183 crore, according to an exchange filing. The acquisition is aimed at setting up a cement plant in Madhya Pradesh.

The stock is 36 percent below the Bloomberg consensus one-year target price.

Bombay Dyeing Hits Upper Circuit On Plans To Convert Debt Given To Arm Into Equity

Shares of the textile maker hit the upper circuit at 5 percent after the company’s board approved conversion of its existing debt given to a subsidiary in Indonesia.

Bombay Dyeing and Manufacturing Company agreed to convert debt given to Five Star Textile Indonesia into equity to wind up the subsidiary in due course, according to an exchange filing. The company will convert debt worth nearly Rs 207 crore into equity. After the conversion, the holding will increase to 97.4 percent from 86 percent.

The stock, currently trading at Rs 86.45 apiece, declined 48 percent in the past month compared to a 7.4 percent decline in the BSE Sensex, Bloomberg data showed.

BPCL Swings Ahead Of Q2 Earnings

Shares of the oil marketer eased early gains and fell as much as 1.3 percent to Rs 271.50 apiece. The company is scheduled to announce its September quarter results today.

September Quarter Preview

• Revenue expected to rise 9 percent to Rs 78,181 crore.
• Net profit likely to decline 22 percent to Rs 1,796 crore.
• Ebitda expected to decline 18 percent to Rs 3,171 crore.
• Ebitda margin seen to contract 130 basis points to 4.1 percent.
• Gross refining margin to come in at $6.5 a barrel against $7.5 a barrel.

The stock trades at 5.9 times trailing its 12-month earnings per share and 6.6 times its estimates for the coming year, Bloomberg data showed.