Stocks Radar: InterGlobe Aviation, Bharti Airtel, SKF India, Wipro
Indian shares resumed their decline as an equities rout that wiped out this year’s gains for U.S. stocks spread to Asia, pushing a regional benchmark deeper into a so-called bear market.
The S&P BSE Sensex and the NSE Nifty 50 Index are trading more than 1 percent lower at 33,590.84 and 10,097.30, respectively, as of 11:20 a.m.
The market breadth was tilted in favour of sellers. All the sectoral gauges declined, led by a 2.52 percent fall in the NSE Nifty Realty Index.
Here Are The Stocks Moving The Market This Morning
InterGlobe Aviation Falls After Q2 Earnings
Shares of the low-cost carrier declined nearly 5.4 percent to Rs 773 apiece after the company posted its first quarterly loss since listing.
IndiGo reported a net loss of Rs 652 crore in the September quarter as rising input costs, weaker rupee and competitive fares hurt the India’s largest airline, according to its exchange filing. Analyst estimates compiled by BloombergQuint had pegged the loss at Rs 470 crore.
- Revenue rose 17 percent to Rs 6,185 crore.
- Ebitdar down 93 percent to Rs 111 crore.
- Ebitdar margin stood at 1.8 percent versus 29.4 percent.
Also, brokerages said the pricing pressure will continue to hurt the budget carrier in the near term.
The stock has fallen 30.3 percent in the last 12 months compared to a 3.5 percent gain in the BSE Sensex, according to Bloomberg data.
Wipro Swings After Q2 Results
Shares of the country’s third-largest IT services provider fluctuated between gains and losses to trade at Rs 317.80 apiece after the company’s profit for the quarter ended September missed estimates.
Wipro’s net profit fell 9.9 percent over the previous quarter to Rs 1,886 crore, according to its exchange filing. That fell short of the Rs 2,031-crore profit estimated by analysts tracked by Bloomberg.
- Net profit down 9.9 percent to Rs 1886 crore.
- Forex gain of Rs 121.7 crore versus a gain of Rs 77.1 crore in the preceding quarter.
- EBIT down 13.3 percent to Rs 2,097 crore.
- EBIT margin stood at 14.4 percent against 17 percent.
Here’s what brokerages have to say about Wipro:
- Maintains ‘Sell’ with a price target of Rs 300, implying a potential downside of 3 percent from the last regular trade.
- September quarter review: Sharp margin beat, in-line revenue and soft guidance.
- Consistency on growth and margin missing over the past few years.
- Maintains ‘Underweight’ with a price target of Rs 300, implying a potential downside of 3 percent from the last regular trade.
- September quarter’s performance better than expectations
- Revenue growth was broad based with four verticals growing 4 percent on a sequential basis.
- Net income was hit due to the impact from one-time settlement charges.
Other Stocks Reacting To Earnings Announcements
Bharat Financial Inclusion (Q2, Year-On-Year)
- Stock fell nearly 4.1 percent to Rs 886 apiece.
- Net interest income up 95 percent to Rs 519 crore.
- Net profit up 73 percent to Rs 233 crore.
- Gross NPA at 0.4 percent versus 0.3 percent in the previous quarter.
- Net NPA remained unchanged at 0.1 percent.
Lakshmi Vilas Bank (Q2, YoY)
- Stock declined as much as 8.7 percent to Rs 82 apiece.
- Net interest income down 35 percent at Rs 151 crore.
- Net loss of Rs 132 crore versus a net profit of Rs 10.5 crore.
- Provisions up 27 percent sequentially at Rs 205 crore.
- Gross NPA at 12.31 percent versus 10.73 percent in the preceding quarter.
- Net NPA at 6.88 percent versus 5.96 percent in the previous quarter.
Bharti Infratel (Q2, QoQ)
- Stock swung between gains and losses to trade at Rs 259.95 apiece.
- Revenue down 1 percent to Rs 3,648 crore.
- Net profit down 6 percent to Rs 600 crore.
- Ebitda down 1 percent to Rs 1,506 crore.
- Margin stood at 41.3 percent versus 41.4 percent.
Jet Airways Snaps Two-Day Winning Streak
Shares of the airline snapped their two-day gaining streak and fell 2.6 percent to Rs 215 apiece.
Jet Airways had approached banks for a moratorium on loans and sought fresh funds to ease a cash crunch, according to multiple media reports. However, the airline, in an exchange filing, clarified that that it had not sought any moratorium on any loans or reduction of interest rates from its lenders.
The stock trades 34 percent below the Bloomberg consensus one-year target price.
KPIT Tech Gains On BMW Partnership, Q2 Results
Shares of the IT services provider rose as much as 3.3 percent to Rs 214.40 apiece.
BMW group has signed on KPIT Technologies as partner for its autonomous driving platform, the Pune-based company said in an exchange filing. Also, the company’s net profit rose 6 percent to Rs 82 crore in the July-September period, according to a separate filing.
Other Highlights (QoQ):
- Revenue up 6 percent at Rs 1,079 crore.
- Ebitda up 19.5 percent at Rs 147 crore.
- Margin stood at 13.6 percent versus 12.1 percent.
The stock gained 56.7 in the last one year compared to a 3.4 percent advance in the BSE Sensex, according to Bloomberg data.
SKF India Jumps After Buyback Announcement
Shares of the ball-bearings maker rose as much as 3.7 percent to Rs 1,776.70 apiece.
SKF India will buyback 19 lakh shares at Rs 2,100 each, according to its exchange notification. The buyback price is at a 22 percent premium to Wednesday’s close.
The stock’s trading volume is 25.4 times the 20-day average, Bloomberg data showed.
Stocks Buzzing Ahead Of Earnings
Bharti Airtel Q2 Preview (QoQ)
- Stock fell close to 4.8 percent to Rs 300.80 apiece.
- Revenue expected to rise 0.5 percent to Rs 20,174 crore.
- Ebitda expected to fall 3.4 percent to Rs 6,498 crore.
- Ebitda margin expected to contract 130 basis points to 32.2 percent.
- Net loss seen at Rs 990 crore versus a net profit of Rs 97 crore.
- Average revenue per user down 7 percent at Rs 98.
Maruti Suzuki Q2 Preview (QoQ)
- Stock declined 1.5 percent to Rs 6,667 apiece.
- Revenue seen to grow 2.18 percent to Rs 22,241 crore.
- Ebitda expected to fall 13 percent to Rs 3204 crore.
- Profit seen to decline 19 percent to Rs 2,023 crore.
- Margin likely to contract to 14.4 percent.