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Stocks Radar: Tata Motors, Raymond, M&M, Jet Airways, Mindtree, Varun Beverages

Here are the stocks moving the market in today’s trade.

Traders work on the floor of the New York Stock Exchange  in New York, U.S. (Photographer: Michael Nagle/Bloomberg)
Traders work on the floor of the New York Stock Exchange in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

Indian equity benchmarks opened lower after ending a little changed yesterday.
The S&P BSE Sensex declined as much as 0.49 percent to 36,790, while the NSE Nifty 50 Index fell nearly 0.44 percent to 11,020.25, as of 9:50 a.m.

The market breadth was tilted in favour of sellers. Ten of the 11 sector gauges compiled by the National Stock Exchange fell, led by the NSE Auto Index’s 2.23 percent decline. NSE Realty Index was the only sectoral gainer, up 0.69 percent.

Here Are The Stocks Moving The Market In Today’s Trade

Raymond Recovers After Clarifying On Related-Party Transactions

Shares of the textile conglomerate rose as much as 7.1 percent to Rs 700 apiece.

Raymond clarified that the related party transactions are undertaken in compliance with laws and on an arm’s length basis, which has been certified by independent reputed accounting firms.

A BloombergQuint investigation earlier found four years of curious transactions between public listed textile and branded apparel company Raymond Ltd. and an entity owned by its promoter Gautam Singhania.

The trading volume was almost 16 times the 20-day average for this time of the day, according to Bloomberg data.

Opinion
Why Is Raymond Dressing Up This Singhania Company’s Earnings?

Mindtree Swings After Coffee Day Board Approves Stake Sale

Shares of the Bengaluru-based information technology services firm erased early losses and traded flat at Rs 904.80 per share, as of 9:30 a.m.

Coffee Day Enterprises’s board approved to sell equity shares held by the company in Mindtree, according to its exchange filing. Coffee Day currently owns nearly 14 percent stake in the IT company.

The stock traded 9 percent below the Bloomberg consensus one-year target price.

Shriram EPC Gains After Winning Rs 291-Crore Worth Orders

Shares of the Chennai-based infrastructure construction company rose for the first time in a week after it advanced nearly 18 percent to Rs 10.20 per share.

Shriram EPC received three orders worth Rs 291.6 crore from Jharkhand Government for construction in the water management sector, according to its notification to the bourses.

The trading volume was nine times the 20-day average for this time of the day, Bloomberg data showed.

Varun Beverages Gains After Plans To Acquire Pepsi Rights In Three States

Shares of the Haryana-based beverage maker rose 2.8 percent to Rs 840.80 apiece.

Varun Beverages approved intent to enter into a binding agreement to acquire franchise rights of PepsiCo from SMV Group in Karnataka, Maharashtra and Madhya Pradesh, according to its exchange filing.

The stock traded 55 times its estimated earnings per share for the coming year, Bloomberg data showed.

Jet Airways Falls After Grounding Aircraft On Non-Payment Of Dues

Shares of the cash-strapped airline declined close to 2.3 percent to Rs 231 apiece.

Jet Airways said that four aircraft have been grounded due to non-payment of amounts outstanding to lessors under lease agreements, in an exchange notification. Three aircraft which were grounded earlier for engine normalisation are back in commercial operations, the filing added.

The stock declined 68 percent in the last 12 months compared with 8.5 percent gain in the BSE Sensex Index.

Tata Motors Nosedives Nearly 30% After Record Quarterly Loss

Shares of the Jaguar Land Rover parent plunged as much as 29.5 percent, the most since February 1993, to Rs 129 per share after it reported a record loss on Thursday.

Net loss stood at Rs 26,993 crore in the December-ended quarter compared with a profit of Rs 1,077 crore a year ago, according to its stock exchange filing. The loss was due to a non-cash write off worth Rs 27,838 crore for JLR, attributed to slowing sales in China, technology disruptions and rising cost of debt.

Key Highlights: (YoY)

  • Revenue rose 5 percent to Rs 77,000 crore.
  • Operating profit fell 20 percent to Rs 6,381 crore.
  • Margin narrowed 260 basis points to 8.3 percent.
Stocks Radar: Tata Motors, Raymond, M&M, Jet Airways, Mindtree, Varun Beverages

Here’s what brokerages had to say on the stock:

CLSA

  • Maintained ‘Sell’ with a price target of Rs 150.
  • Another big miss at JLR, a large asset impairment and weak commentary.
  • JLR: a weak demand outlook, a margin guidance cut and Brexit fears.
  • Cut FY19-21 EPS estimates by 2-66 percent on lower volumes/margins & lower depreciation for JLR .

Emkay

  • Downgraded to ‘Hold’ from ‘Buy’; cut price target to Rs 192 from Rs 256.
  • JLR faces headwinds such as China slowdown and Brexit uncertainties.
  • Cut EPS estimates for the current and the next two financial years by 46 percent, 19 percent and 19 percent respectively due to lower volume/margin in JLR’s China operations.
  • Despite cost-reduction efforts, free cash flows are expected to remain negative over FY19-21.
Opinion
Q3 Results: Tata Motors Posts Rs 27,000-Crore Loss On JLR Woes

M&M Fluctuates Ahead Of Q3 Results

Shares of the automaker erased opening gains and fell as much as 1.2 percent to Rs 692.55 per share ahead of its results announcement for the December-ended quarter.

Q3 Preview: (YoY)

  • Revenue expected rise 14 percent to Rs 13,108 crore.
  • Ebitda seen to rise 7 percent to Rs 1,811 crore.
  • Profit expected to decline to Rs 988 crore.
  • Margin seen at 13.8 percent versus 14.7 percent.

The stock traded 15 times its estimated earnings per share for the coming year, according to data compiled by Bloomberg.