Stocks Radar: Nestle India, Tata Global Beverages, Welspun, Yes Bank
Indian equity benchmarks opened opened higher for the second session in a row.
The Sensex rose 0.25 percent at 37,412.80 and the Nifty traded at 11,249, 0.24 percent higher, as of 10:08 am. The market breadth was tilted in favour of buyers.
Eight of the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by a 0.44 percent gain in the NSE Nifty Metal Index. The NSE Nifty Media Index was the top sectoral loser, down 1.31 percent.
Here Are The Stocks Moving The Market This Morning:
Yes Bank Falls After RBI Appoints Former Governor To Board
Shares of the private lender declined as much as 4.8 percent to Rs 148.30 apiece, its lowest since November 2018.
The Reserve Bank of India appointed R Gandhi, a former deputy governor of the central bank, on the board, a rare decision taken only when a lender needs close regulatory supervision.
The stock has fallen 55 percent in the past 12 months compared with a 5 percent gain in the Sensex.
Tata Global Beverages Gains After Report Of Merger Talks
Shares of the consumer goods arm of Tata group rose as much as 1.7 percent to Rs 203.70.
Tata Sons is set to transfer its branded food businesses to Tata Global Beverages from Tata Chemicals, Bloomberg reported citing people with knowledge of the matter, as India’s biggest conglomerate streamlines its corporate structure.
Tata Chemical’s shares advanced nearly a percent intraday to Rs 578.60 apiece.
Jet Airways Plunges After CEO Steps Down
Shares of the cash-strapped airline declined as much as 6.1 percent to Rs 121.10 apiece.
Vinay Dube, the airline’s chief executive officer, resigned with immediate effect, citing personal reasons, according to an exchange filing.
The relative strength index on the stock was below 30, indicating it may be oversold.
NTPC Swings After Winning Tender
Shares of the state-run power generator fluctuated between gains and losses and traded Rs 125 apiece as of 9:30 am.
NTPC won 100 MW of solar capacities in Solar Energy Corporation of India’s 250MW tender in Maharashtra, at a levelised tariff of Rs 2.91 per unit, applicable for 25 years, it said in an exchange filing. This project will be set up by NTPC under EPC (engineering, procurement and construction) mode and will add to NTPC’s installed capacity, the filing said.
The stock traded 22 percent below the Bloomberg consensus one-year target price.
Welspun Corp Declines After Board Approves Buyback
Shares of the pipe maker fell for the third-straight day after it declined as much as 6.8 percent to Rs 127 intraday.
The company’s board approved buyback of its shares at a price of Rs 140 apiece, aggregating of up to Rs 390 crore. The buy back was at a premium of 7.6 percent to the previous close.
The stock traded at 24 times its estimated earnings per share for the coming year, Bloomberg data showed.
Nestle India Gains After Q4 Results
Shares of the fast moving consumer goods company rose 2.2 percent to Rs 10,420, a day after it reported its earnings for the quarter ended March.
Key Highlights: (YoY)
- Revenue up 8.9 percent to Rs 3,003 crore.
- Net profit rises 9.3 percent to Rs 463.3 crore.
- Ebitda rose 5.9 percent to Rs 737.8 crore.
- Margin at 24.6 percent versus 25.3 percent.
Here’s What Brokerages Made Of Nestle’s Results:
- Maintain ‘Outperform’ with a price target of Rs 11,750.
- March quarter results were below estimates; weak margins.
- Gross margins contracted to six-quarter low, signalling input cost pressures.
- Decent domestic revenue growth.
- Maintain ‘Buy’ with a price target of Rs 12,000.
- March quarter review: In line numbers, not calling a slowdown yet.
- Recent stock correction bodes well.
- Margin contraction will be taken care of with price hikes.
The trading volume was more than seven times its 20-day average for this time of the day, Bloomberg data showed.