Stocks Radar: Sun Pharma, Lumax Auto, Transport Corporation, Bosch India
Indian equity benchmarks opened higher after declining for three consecutive trading sessions. The S&P BSE Sensex traded nearly 0.3 percent higher at 36,260.55 and the NSE Nifty 50 Index at 10,852.30, up 0.17 percent, as of 9:55 a.m.
The market breadth was tilted in favour of buyers. Six out of the 11 sectoral gauges gained, led by the NSE Nifty Realty Index’s 1.02 percent advance. The NSE Nifty Media Index was the biggest sectoral loser, down 0.77 percent.
Here Are Stocks Moving The Market This Morning:
Lumax Auto Jumps After Maharashtra Plant Begins Operations
Shares of the auto parts maker snapped their three-day losing streak and rose 4 percent intraday to Rs 143.80 per share.
Lumax Auto Technologies said that commercial production in its Aurangabad unit in Maharashtra to supply auto parts to Bajaj Auto has started, according to its notification to the stock exchanges. The plant will have an annual capacity of 700,000 units and will manufacture and supply chassis frames, swing and trail arms.
The relative strength index on the stock was below 30, indicating it may be oversold.
DHFL Gains Despite Director’s Resignation
Shares of the non-banking lender advanced as much as 3.1 percent to Rs 109.70 apiece.
Dewan Housing Finance Corporation’s Vijaya Sampath resigned as independent director with effect from Feb.12, according to its exchange filing. The director cited the departure was due to personal reasons.
The stock fell 80 percent in the last 12 months compared with a 5.4 percent gain in the S&P BSE Sensex Index.
Transport Corporation Falls After Decision To Demerge Cold Chain Unit
Shares of the logistics services provider erased opening gains and declined as much as 1.5 percent to Rs 280.45 apiece.
Transport Corporation of India finalised the agreement to hive off its cold chain unit into TCI Cold Chain Solutions for a consideration of Rs 63.6 crore, according to its exchange filing. The deal is expected to be completed by Feb. 28.
The stock traded 15 times its estimated earnings per share for the coming year, according to data compiled by Bloomberg.
Sun Pharma Tops Nifty After Q3 Performance
Shares of the country’s largest drugmaker surged 4.2 percent intraday to Rs 455 per share after the company reported its results for the third quarter on Tuesday.
Net profit rose 286 percent year-on-year to Rs 1,242 crore, according to its regulatory filing. That compares with the Rs 980-crore consensus estimate of analysts tracked by Bloomberg.
Key Highlights: (YoY)
- Revenue up 16.3 percent to Rs 7,740.2 crore.
- Ebitda rose 48.1 percent to Rs 2,153 crore.
- Margin at 27.8 percent versus 21.8 percent.
Here’s what brokerages had to say on the stock:
- Maintain ‘Buy’ with a price target of Rs 560.
- Good December quarter even after the adjustments.
- Specialty pipeline execution will be the key focus area for the next financial year.
- Current valuations attractive and stronger specialty portfolio ramp-up could drive rerating.
- Maintained ‘Neutral’ with a price target of Rs 450.
- Forex adjusted Ebitda marginally ahead due to lower R&D.
- Continue to await signs of specialty ramp-up and increased generic traction from Halol plant.
- Investor concerns on governance unlikely to completely dissipate until clarity on SEBI’s investigation.
Bosch India Swings Ahead Of Q3 Earnings
Shares of the auto components maker fluctuated between gains and losses and traded marginally lower at Rs 18,574.40 apiece at 9:30 am. The company’s results for the December-ended quarter is scheduled to be announced today.
Q3 Preview (YoY)
- Revenue expected to rise 7 percent to Rs 3,293 crore.
- Ebitda seen to rise 2 percent to Rs 456 crore.
- Profit seen to rise 19 percent to Rs 334 crore.
- Operating margin expected at 13.8 percent versus 14.6 percent.
The stock declined 5 percent in the last 12 months compared with a 5.4 percent gain in the BSE Sensex Index.