Stocks Radar: ONGC, Page Industries, J Kumar Infraprojects, Minda Industries
Indian equity benchmarks opened lower in today’s trade, mirroring most of their Asian peers. The S&P BSE Sensex declined 0.4 percent to 35,733.30 and the NSE Nifty 50 Index traded 0.50 percent lower at 10,692.35, as of 10:20 a.m.
The market breadth was tilted in favour of sellers. 10 of the 11 sectoral gauges declined, led by a 3.58 percent fall in the Nifty Pharma Index. The Nifty Realty Index was the only gainer, up 0.11 percent.
Here Are The Stocks Moving The Market This Morning:
Minda Industries Falls After Merger
Shares of the auto parts maker declined close to 1.8 percent to Rs 268.85 per share.
Minda Industries Ltd. board approved the merger of Harita Seatings with the company, according to its exchange filing. Harita shareholders will get 152 Minda shares for every 100 shares held or four fully paid-up preference shares of Rs 121.25 for every one equity share held, the filing said.
The stock traded 21 times its estimated earnings per share for the coming year, according to Bloomberg data.
J. Kumar Infraprojects Gains After Winning Mumbai Metro Order
Shares of the infrastructure developer rose nearly 3.4 percent to Rs 128.90 apiece.
J Kumar Infraprojects Ltd. received order worth Rs 445 crore for construction of three stations of Mumbai Metro Rail Project, according to its notification to the bourses.
The stock, however, declined 64 percent in the past 12 months compared with a 5 percent gain in the BSE Sensex Index.
Sugar Stocks Rally After Minimum Sale Price Hiked
Shares of the sugar manufacturers rose after the factory-gate selling price for millers was raised to Rs 31 per kilogram from Rs 29 at present, according to a government notification.
- Shree Renuka Sugars rose 4.4 percent intraday to Rs 191.65 per share.
- Balrampur Chini rose 4 percent to Rs 122.45 apiece.
- Uttam Sugar gained 3.6 percent to Rs 102 per share.
Page Industries Falls The Most In Three Months
Shares of Page Industries Ltd. fell as much as 7.2 percent, the most since Nov. 15, 2018, to Rs 22,253.50.
The company reported a revenue of Rs 738 crore during the October-December period, an increase of 19 percent from the year-ago period, according to its stock exchange filing.
The revenue gains during the three months ended December were on account of Ind-AS 115 adoption, according to brokerage Kotak Institutional Equities. “The adjusted performance was below estimate on revenue and just about in line on operating income and net profit.”
Kotak said discontinuance of segmental disclosures is a disappointment and limits its “anyway-limited” ability to track the company’s progress on some of the micro makers. “FY19-21E EPS forecast see a 2-3 percent cut and the fair value stays intact, however, at Rs 22,300 on account of rollover of discounted cash flow.” Trading volume was more than double its 20-day average, Bloomberg data showed. The stock gained 0.6 percent in the past five days and fell 0.2 percent in the past 30 days.
Jet Airways Gains After Board Agrees To Give Lenders A Majority Stake
Shares of the cash-strapped airline rose 7.5 percent intraday to Rs 242.80 per share.
Jet Airways agreed to give lenders a majority stake in the airline company by converting part of their debt to equity as the airline battles a cash crunch, according to its exchange notification. The board, as part of a provisional resolution plan, agreed to allot 11.4 crore shares at an aggregate value of Re 1 to the lenders’ consortium led by State Bank of India.
Also, the company’s third quarter results were announced on Thursday. The airline reported a net loss of Rs 587.8 crore in the December-ended quarter, compared with a Rs 165.3-crore profit in the same quarter last year, according to its exchange filing.
Key Highlights: (QoQ)
- Revenue rose 1 percent to Rs 6,148 crore.
- Operating profit (Ebitdar) declined 54.3 percent to Rs 459.5 crore.
- Margin narrowed by more than half to 7.5 percent.
- Total expenses rose 12.3 percent to Rs 6,786.2 crore. Bulk of the expenses came from a 30 percent rise in aircraft fuel cost.
- Other income also declined by more than half to Rs 504 crore.
ONGC Surges After Q3 Performance
Shares of the state-run oil explorer rose 6 percent, the most in five months, to Rs 140 per share after its results for the December-ended quarter were announced on Thursday.
Net profit of the company was at Rs 8,263 crore for the three months ended December compared to Rs 8,265 crore in the previous quarter. Analysts tracked by Bloomberg had pegged the profit at Rs 7,485 crore.
Key Highlights: (QoQ)
- Revenue down 1.1 percent to Rs 27,694.1 crore.
- Net profit flat to Rs 8,262.7 crore versus Rs 8,264.6 crore.
- Ebitda up 5 percent to Rs 16,571 crore.
- Margin at 59.84 percent versus 56.41 percent.
- Net realisation to $66.38/bbl versus $73.07/bbl.
- Declares dividend of Rs 5.25 per share.
Here’s what brokerages had to say on the stock:
- Maintained ‘Buy’ with a price target of Rs 240.
- Lower opex drives Ebitda beat; higher other income drives earnings beat.
- No subsidy burden so far should allay concerns.
- Expect investors to react positively.
Deutsche Bank Research
- Maintained ‘Buy’; cut price target to Rs 187 from Rs 216.
- December quarter review: Benefits from higher realisation.
- Beat due to lower other expenses and higher-than-expected other income.
- Cut FY19-20 earnings estimates due to lower oil prices.