Visitors to the Tokyo Stock Exchange look at stock figures in Tokyo (Photographer: Andy Rain/Bloomberg News)

Stocks Radar: Infosys, Indiabulls Housing Finance, Kwality

Indian equity benchmarks gained for the third straight session even as Asian stocks traded mixed. The S&P BSE Sensex and the NSE Nifty 50 Index rose nearly a percent to trade at 35,173.32 and 10,596.55, respectively, as of 10:40 a.m.

The market breadth was tilted in favour of the buyers. Ten of the 11 sectoral gauges advanced, led by a 1.56 percent gain in the NSE Nifty PSU Bank Index. The NSE Nifty Pharma Index was the only loser, down 0.09 percent.

Here Are The Stocks Moving The Market This Morning

Indiabulls Housing Best On Nifty After Earnings

Shares of the mortgage lender gained nearly 3 percent in early trade to Rs 976.85 apiece.

Net profit of the company rose 21.2 percent year-on-year to Rs 1,044.2 crore in the September quarter, according to its exchange filing. That compares with the Rs 1,053-crore consensus estimate of analysts tracked by Bloomberg.

Key Highlights

  • Provisions stood at Rs 40 crore versus Rs 65 crore in the preceding quarter.
  • Gross NPA stood at 0.77 percent against 0.78 percent in the April-June period.
  • Net NPA stood at 0.58 percent compared with 0.59 percent in the previous quarter.

Brokerage View

JPMorgan

  • Maintains ‘Overweight’ with a price target of Rs 1,600—a potential upside of 69 percent from the last regular trade.
  • Another consistent quarterly earnings delivered.
  • Asset liability management is conservative and the company should be able to ride out current stress in money market.
  • Remains a top pick in the NBFC space.

Macquarie

  • Maintains ‘Outperform’ with a price target of Rs 1,400—a potential upside of 48 percent from the last regular trade.
  • No concerns were seen in terms of liquidity.
  • Growth to slow down as management cut loan growth guidance for the ongoing financial year to 20 percent.
  • Thinks liquidity concerns are overdone; Recent correction an opportunity to add.

Also read: Rakesh Jhunjhunwala Tweaks Positions In DHFL, SpiceJet And Lupin

Kwality Hits A Nine-Year Low On Report Of Being Taken To NCLT

Shares of the dairy company declined nearly 5 percent to Rs 10.32 apiece.

The company has been taken to the National Company Law Tribunal by a foreign bank for Rs 1200-crore loan default, according to a BusinessLine report quoting unnamed source. Kwality is backed by U.S.-based private equity firm KKR & Co that made a Rs 520-crore debt and equity investment in 2016.

Insiders hold a 36 percent stake, and they cut their holdings by 10 percent in the past six months, Bloomberg data showed.

Stocks Radar: Infosys, Indiabulls Housing Finance, Kwality

Cox & Kings Jumps After Fixing Record Date For Demerger

Shares of the travelling services company rose as much as 6.4 percent to Rs 215 apiece.

The company’s board fixed Oct. 26 as the record date for determining shareholders who will receive shares in Cox & Kings Financial Service Ltd., according to its exchange notification. One share of the resulting company shall be credited for every three shares held by existing shareholders of the company, it said.

The stock is 24 percent below the Bloomberg consensus one-year target price.

Hathway Cable, DEN Networks Surge On Report Of Reliance Buying Stake

Shares of Hathway Cable and DEN Networks rose on a report that Reliance Industries will buy a controlling stake in the cable television services providers. Hathway Cable gained as much as 8.3 percent to Rs 31.20 apiece and DEN Networks rose nearly 8.2 percent to Rs 80.30 apiece.

The transaction, which is likely to hasten the launch of Reliance Industries’ home broadband, is likely to be unveiled on Wednesday when the boards of all the three companies are scheduled to meet, according to a Times of India report.

Hathway Cable and DEN Networks were the second and third-best performers, respectively, on the NSE 500 Index, Bloomberg data showed.

Infosys Gains Ahead Of Earnings

Shares of the IT services provider rose as much as 2.1 percent to Rs 713.15 apiece ahead of the earnings announcement.

Q2 Preview (Year-On-Year)

  • Dollar revenues expected to rise 2 percent to $2,888 million.
  • Net Profit likely to increase 11.9 percent to Rs 4,042 crore.
  • Earnings before interest, tax, depreciation and amortisation expected to go up to Rs 4,935 crore.
  • Margins seen higher at 24.4 percent against 23.7 percent.

The stock gained 38.3 percent so far this year compared to a 4 percent advance in the Sensex, according to Bloomberg data.