Stocks Radar: Motilal Oswal, RIL, VIP Industries
Indian equity benchmarks opened higher in today's trade aided by gains in HDFC Ltd. and Reliance Industries Ltd. The S&P BSE Sensex and the NSE Nifty 50 Index traded 0.18 percent higher each at 36,395 and 10,910.30 as of 9:55 a.m.
The market breadth was slightly tilted in favour of buyers. Eight of the 11 sectoral gauges advanced, led by a 0.90 percent fall in the Nifty Realty Index. On the flip side, the Nifty Media Index was the top gainer, falling by 0.46 percent.
Here Are The Stocks Moving The Market This Morning
VIP Industries Gains After Ambit Capital Initiates Coverage
Shares of the luggage bags manufacturer rose as much as 1.8 percent intraday to Rs 521.40 per share.
Brokerage firm Ambit Capital initiated coverage on the stock with a “Buy” rating, yesterday. The target price was fixed at Rs 563, indicating a potential upside of 27.5 percent from the previous close.
Here’s What Ambit Had To Say On The Stock:
- Experienced team, brand investments and capacities will drive growth.
- Expect Ebitda margin to improve led by captive production, premiumisation and operating leverage.
- Near multiples don’t aptly build brand-and-opportunity confluence.
- Industry tailwinds to aid double-digit growth in volume and revenue.
The stock traded 44 times its estimated earnings per share for the coming year, according to Bloomberg data.
NIIT Tech Swings After Report Of Baring PE Asia Eyeing Buyout
Shares of the IT services provider fluctuated between gains and losses to trade at Rs 1,218.15 per share, as of 10:10 a.m.
Baring Private Equity Asia is likely to acquire NIIT Technologies in a deal valued between Rs 8,000 crore to Rs 10,000 crore, Mint reported, citing unidentified sources. Baring PE Asia plans to merge Hexaware Technologies and NIIT Tech after the buyout, the report said.
Brigade Enterprises Gains 8.8%; Volumes Surge
Shares of the Bengaluru-based real estate developer gained as much as 8.8 percent to Rs 227 per share.
The trading volume was almost 18 times its 20-day average for this time of the day, Bloomberg data showed. The stock traded 11 times the estimated earnings per share for the coming year.
Reliance Industries Gains Ahead Of Earnings Announcement
Shares of the Mukesh Ambani-led group rose close to 1.8 percent to Rs 1,147.9 apiece. The oil conglomerate is scheduled to report its third quarter earnings today.
Q3 Preview (Standalone; QoQ)
- Revenue seen down 2.2 percent to Rs 94,074 crore.
- Ebitda expected to decline 2 percent to Rs 14,596 crore.
- Operating margin seen unchanged at 15.5 percent.
- Net profit seen down 2.2 percent to Rs 8,665 crore.
- Gross Revenue Margin seen down 12.6 percent to $8.3/bbl.
The stock has gained 23 percent in the past 12 months compared to a 4.5 percent gain in the S&P BSE Sensex.
Motilal Oswal Financial Top Nifty 500 Loser After Q3 Results
Shares of the brokerage firm slumped as much as 6.2 percent, the most since Oct. 31, to Rs 640 on the back of its third quarter results.
The company’s net profit during the October-December period fell 85.6 percent year-on-year to Rs 39.9 crore, according to its results filed on the stock exchanges yesterday, after market hours.
Other Key Highlights, (YoY)
- Revenue down 20.1 percent at Rs 647.6 crore.
- Net profit down 85.6 percent at Rs 39.9 crore.
- Declared a dividend of Rs 4 per share.
- Broking revenue down 10 percent at Rs 269.5 crore.
Trading volume was almost 30-times its 20-day average, Bloomberg data showed. The stock has declined 54 percent in the past 12 months.
Mindtree Falls After Q3 Performance
Shares of the IT firm declined as much as 2.1 percent to Rs 823.50 per share today morning, primarily due to its results for the December-ended quarter.
Net profit declined 7.3 percent sequentially to Rs 191.2 crore in the third quarter, according to the software services provider’s exchange filing. That’s in line with Rs 189-crore consensus estimate of analysts tracked by Bloomberg.
Other Key Highlights: (Consolidated, QoQ)
- Dollar revenue up 2.1 percent at $251.5 million.
- Revenue up 1.8 percent at Rs 1,787.2 crore.
- EBIT up 5.6 percent at Rs 242.3 crore.
- Margin at 13.6 percent versus 13.1 percent.
Here’s What Brokerages Had To Say On The Stock:
SBI Capital Markets:
- Upgraded to “Buy” from “Hold”; maintained price target at Rs 1,060.
- December quarter’s performance matches expectations.
- Management confident on sustaining growth momentum.
- Strong fundamentals; valuation turned attractive post correction.
- Maintained “Buy” with a price target of Rs 1,000.
- Signs of de-risking dependency on top client.
- March quarter’s outlook and growth commentary provide some reprieve.
- March quarter’s outlook hints at a strong exit; Hike revenue estimates for the next two financial years by 1.5 percent and 1.3 percent respectively.
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