Stocks Radar: ONGC, Strides Pharma, PC Jeweller, SBI

Indian equity benchmarks fluctuated after capping their best week in more than two years.

The S&P BSE Sensex declined 0.4 percent to 34,857 and the NSE Nifty 50 Index slumped 0.6 percent to 10,493 as of 11:45 a.m.

Six out of the 11 sectoral gauges on the NSE declined, led by the NSE Nifty Media Index’s 1.8 percent drop. The Nifty PSU Bank Index was the best performer, up 1.5 percent.

Here Are The Stocks Moving The Market This Morning

Axis Bank Gains After Q2 Earnings

Shares of the private lender rose as much as 3.7 percent to trade at Rs 632.90 apiece after its second-quarter profit beat analyst estimates on rising interest income and declining bad loans.

Net profit of the lender rose 83 percent over last year to Rs 790 crore, according to its exchange filing. Analysts tracked by Bloomberg had pegged the profit at Rs 759 crore.

Other Highlights:

• Net interest income rose 15.3 percent to Rs 5,232.1 crore.
• Provisions stood at Rs 2,927.4 crore against Rs 3,337.7 in the preceding quarter.
• Gross NPA stood at 5.96 percent compared with 6.52 percent in the June quarter.
• Net NPA stood at 2.54 percent versus 3.09 percent in the previous quarter.

Here’s what the brokerages have to say about the stock:

Nomura

• Maintains ‘Buy’ and raised to Rs 750 from Rs 630, a potential upside of 23 percent from the last regular trade.
• Core performance improves along with stability in asset quality.
• Strong improvement in pre-provisioning operating profit trends.
• Valuations undemanding considering improving credit cycle and strong liability franchise.

Deutsche Bank Research

• Maintains ‘Buy’ with a price target of Rs 750, a potential upside of 23 percent from the last regular trade.
• Getting better; strong trends across all sectors.
• Asset quality improves; unrecognised stress book declines.
• Expects lower slippages and lower credit costs.

ONGC Best Nifty Performer After Q2 Earnings

Shares of the state-run oil explorer rose as much as 4.8 percent to Rs 165 apiece after the company reported a higher-than-expected rise in profit during the July-September quarter on higher global crude prices and a weaker rupee.

Net profit rose 34.5 percent sequentially to Rs 8,265 crore, according to its exchange filing. Analysts tracked by Bloomberg had pegged the profit at Rs 7,157 crore.

Other Highlights (Quarter-On-Quarter)

• Revenue up 3 percent to Rs 27,989 crore.
• Ebitda rose 7 percent to Rs 15,789 crore.
• Margin stood at 56.4 percent against 54.1 percent.

Here’s what brokerages have to say about ONGC:

JPMorgan

• Maintains ‘Overweight’ with a price target of Rs 265, implying a potential upside of 68 percent from the last regular trade.
• A strong quarter driven by higher realisations.
• Weakness in rupee, recent gas price hike should aid earnings further.
• Stock pricing in large subsidy burden.
• No dividend as company is considering buying back shares.

IDFC Securities

• Maintains ‘Outperform’ and raised price target to Rs 265 from Rs 255, implying a potential upside of 23 percent from the last regular trade.
• Another strong quarter, but oil output a miss; highest profit in the last four years.
• Market overcompensating for near-term uncertainty.
• Expects subsidy contribution of $6 a barrel for the current and the next financial year; expects annualised EPS of 28 percent over FY18-20.

Other Stocks Reacting To Earnings:

Cadila Healthcare (Q2, YoY)

• Stock fell 2.8 percent intraday to Rs 348 per share.
• Revenue down 8.1 percent at Rs 2,961.2 crore.
• Net profit down 17 percent at Rs 417.5 crore.
• Ebitda down 19.7 percent at Rs 687.8 crore.
• Margin at 23.2 percent versus 26.6 percent.

Gujarat Gas (Q2, YoY)

• Stock declined percent 6.4 percent to Rs 593.60 apiece.
• Revenue up 40.8 percent at Rs 20,13.83 crore.
• Net profit down 33 percent at Rs 41.07 crore.
• Ebitda down 21 percent at Rs 160.73 crore.
• Margin at 8 percent versus 14.2 percent.
• Board recommends stock split in the ratio 1:5.

Sun TV Network (Q2, YoY)

• Stock fell 6 percent to Rs 623.65 apiece.
• Revenue up 10.9 percent at Rs 749.6 crore.
• Net profit up 23.4 percent at Rs 351.3 crore.
• Ebitda up 11.7 percent at Rs 554.1 crore.
• Margin at 73.9 percent versus 73.4 percent.
• Other income at Rs 62.12 crore versus Rs 37.23 crore.

(Prices as of 9:25 a.m.)

Strides Pharma Gains After Completion Of U.S. FDA Inspection

Shares of the drugmaker rose as much as 3.8 percent to Rs 433.80 apiece.

The company announced the completion of inspection by the U.S. Food and Drug Administration at its flagship facility in Bengaluru with no Form 483 observations, according to its exchange filing.

The stock fell 46 percent in the past 12 months compared with a 5.1 percent rise in the BSE Sensex, Bloomberg data showed.

Oriental Carbon Falls After Board Approves Buyback

Shares of the chemicals maker erased early gains and fell as much as 2.4 percent to Rs 1,081.10 apiece.

The company’s board approved a buyback of 3.04 lakh shares, representing 2.96 percent of the paid-up equity capital, for Rs 1,150 apiece, according to its exchange notification. The amount of buyback amounted to Rs 35 crore.

The stock trades 19.8 times trailing its 12-month earnings per share and 16 times its estimates for the coming year, Bloomberg data showed.

PC Jeweller More Than Doubles In 7 Sessions On Festive Demand

Shares of the Delhi-based jewellery retailer surged as much as 14 percent to Rs 100.35 apiece.

The stock rose for the seventh straight day and has more than doubled during the course. Analysts said the stock is surging because of rising gold prices amid festive demand for jewellery.

SBI Gains Ahead Of Q2 Results

Shares of the India’s largest state-run bank rose 1.6 percent to Rs 290 apiece as its quarterly earnings is scheduled to be reported today.

• Net interest income is expected to rise 14.9 percent to Rs 21,355 crore.
• Net profit is expected to decline 51 percent to Rs 775 crore.

The stock trades 17 percent below the Bloomberg consensus one-year target price.

Other Stocks Buzzing Ahead Of Earnings

Cipla Preview Consolidated (Year-on-Year)

• Stock rose as much as 1.2 percent to Rs 615.25 apiece.
• Revenue expected to rise 5 percent to Rs 4,290 crore.
• Net profit is seen to rise 7 percent to Rs 453 crore.
• Ebitda is expected to rise 4 percent to Rs 837 crore.
• Margin seen to contract 70 basis points to 19.5 percent.

GAIL (India) Ltd. Preview (QoQ)

• Revenue expected to rise 3 percent to Rs 17,827 crore.
• Net profit seen to rise 21 percent to Rs 1,518 crore.
• Ebitda expected to rise 8 percent to Rs 2,432 crore.
• Ebitda margin expected to expand 60 basis points to 13.6 percent.

(prices as of 9;45 a.m)