Stocks Radar: TCS, Ashok Leyland, AGC Networks, Delta Corp
Indian equity benchmarks opened marginally lower led by losses in Bharti Infratel and IndusInd Bank. The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 36,177.30 and 10,838.80, respectively, as of 9:50 a.m.
The market breadth, however, was tilted in favour of buyers. Six of the 11 sectoral gauges advanced, led by a 0.36 percent gain in the Nifty FMCG Index. The Nifty Private Bank Index was the biggest loser, down 0.64 percent.
Here Are The Stocks Moving The Market This Morning
Ashok Leyland Gains After Order Win
Shares of the commercial vehicle maker rose for the second straight day to Rs 97 apiece.
Ashok Leyland bagged orders for 2,580 buses from three state transport undertakings and is to be delivered by March 2019, according to its exchange filing. The company also acquired a 12.5 percent additional stake in Ashley Aviation for Rs 25.5 lakh to increase its holding to 88.75 percent.
The stock traded 32 percent below the Bloomberg consensus one-year target price.
Adani Enterprises Gains After Signing Rs 70,000-Crore Pact
Shares of the mining conglomerate jumped as much as 2.5 percent to Rs 153.15 apiece.
The government of Andhra Pradesh signed a memorandum of understanding with Adani Group to build data centre parks up to 5 gigawatt capacities over the next 20 years, according to its exchange filing. Adani Group said it will invest more than Rs 70,000 crore in the project.
The stock gained 23 percent in the last 12 months compared with a 5.2 percent gain in the BSE Sensex.
AGC Networks Surges After Arm Acquires U.S. Firm
Shares of the IT services provider rose close to 7.8 percent to Rs 114.40 apiece.
AGC Networks’ Singapore arm completed the acquisition of the U.S.-based digital solutions provider Black Box Corporation, according to its filing on the bourses. It said the combined entity will add $600 million to the company’s revenue and strengthen its presence across more than 25 countries.
The trading volume was more than 550 times its 20-day average for this time of the day, according to Bloomberg data. The Relative Strength Index was over 70, indicating the stock may be ‘Overbought’.
TCS Falls Ahead Of Q3 Earnings
Shares of India’s largest software services exporter declined nearly a percent to Rs 1,872 apiece. Tata Consultancy Services Ltd. is scheduled to announce its December-quarter results today.
Q3 Preview (Consolidated, Year-On-Year)
- Dollar revenue expected to rise 1.3 percent to $5,285 million.
- Income from operations seen to rise 2.7 percent to Rs 37,849 crore.
- Profit likely to increase 3.2 percent to Rs 8,154 crore.
- EBIT seen to rise 3 percent to Rs 10,062 crore.
- EBIT margin seen at 26.6 percent versus 26.5 percent.
Of the 50 analysts tracked by Bloomberg, 24 recommend a ‘Buy’, 16 suggest a ‘Hold’ and 10 had a ‘Sell’ rating on the stock.
Delta Corp Top Nifty 500 Loser After Q3 Results
Shares of the casino operator fell as much as 3.6 percent to Rs 252.50 apiece after the company reported its third-quarter results after market yesterday.
Key Highlights (Q3, YoY)
- Revenue rose 27 percent to Rs 205.8 crore.
- Net profit increased 13 percent to Rs 50.5 crore.
- Earnings before interest, tax, depreciation and amortisation rose 22.3 percent to Rs 84 crore.
- Margin stood at 40.8 percent against 42.4 percent.
The stock traded at 35 times the estimated earnings per share for the coming year, Bloomberg data showed.