Stocks Radar: Lupin, UCO Bank, Dhanuka Agritech, JMC Projects
Indian equity benchmarks witnessed a shaky start to the New Year. The S&P BSE Sensex declined as much as 0.3 percent to 35,953, while the NSE Nifty 50 Index gained as much as 0.37 percent to 10,821.90.
The market breadth was tilted in favour of sellers. Nine of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 0.73 percent fall in the Nifty Metal Index. The Nifty Realty Index was the top gainer, up 0.6 percent.
Here Are The Stocks Moving The Market This Morning
UCO Bank Jumps On Government Recap Plans
Shares of UCO Bank rose as much as 15.8 percent, the most in nearly two months to trade at Rs 23.50.
The central government infused Rs 3,076 crore capital in the lender, according to its stock exchange filing.
Trading volume was 32.2 times its 30-day average, Bloomberg data showed. The Relative Strength Index was at 73, indicating that the stock may be overbought.
Lupin Gains After Receiving U.S. FDA Approval
Shares of the pharmaceutical company rose nealy 1.1 percent to Rs 853 apiece.
Lupin received U.S. Food and Drug Administration’s approval for Clobazam Oral Suspension, it said in an exchange filing. The drug is a generic version of Lundbeck Pharma’s Onfi Oral Suspension for adjunctive treatment of seizures associated with Lennox-Gastaut Syndrome in patients two years of age or older.
The stock has fallen 4.6 percent in the past 12 months compared to 5.9 percent gain in the S&P BSE Sensex Index.
Dhanuka Agritech Falls As It Trades Ex-Buyback
Shares of the Delhi-based crop protection company fell as much as 2.36 percent to Rs 453.80 after it went ex-buyback.
Dhanuka Agitech had on Nov. 14 approved buyback of equity shares of the company and the board agreed to buy back 15 lakh shares at Rs 550 per share aggregating to Rs 82.50 crore.
The stock traded 22 percent below the Bloomberg consensus one-year target price.
JMC Projects Surges After Bagging New Order
Shares of the industrial construction company rose as much as 5 percent to Rs 91.35 per share.
JMC Projects received orders worth Rs 596 crore, according to its notification to the bourses. Out of this, Rs 434 crore is for residential and commercial projects in South India and the remaining Rs 162 crore is for civil works for a steel plant in Odisha. The company is a listed arm of Kalpataru Power Transmission.
The trading volume was 110 times the 20-day average for this time of the day, according to data compiled by Bloomberg.
Reliance Nippon AMC Gains On New ‘Buy’ Rating
Shares of the asset management company rose close to 2.1 percent to Rs 162 per share after brokerage firm HDFC Securities initiated coverage on the stock with a “Buy” rating. It also pegged the price target at Rs 227, implying a potential upside of 43 percent from the last regular trade.
What HDFC Securities had to say on the stock:
- Appreciate RNAM’s focus on building granular stickier retail assets.
- Profits hit in FY18 and the second quarter of FY19; increase in profitability is key trigger for re-rating.
- Inter-corporate deposits remain a concern.
- Expect assets under management, revenue and net profit to grow at a CAGR of 19 percent, 1.2 percent and 9.5 percent respectively over FY18-21.
The stock traded at 18 times its estimated earnings per share for the coming year, Bloomberg data showed.