Stocks Radar: Tech Mahindra, JSW Steel, Bharti Airtel, Sintex Plastics, Infosys
Indian equity benchmarks extended gains for the fifth day and the NSE Nifty reclaimed the 11,000 mark.
The S&P BSE Sensex Index and Nifty Index rose 0.6 percent each to 36,833.60 and 11,001.50, as of 9:45 a.m. The market breadth, however, was tilted in favour of sellers. Nine of the 11 sectoral gauges rose, led by the Nifty Media Index’s 2.87 percent gain. The Nifty Realty Index was the top loser, down 0.47 percent.
Here Are The Stocks Moving The Market This Morning
Bharti Airtel Falls Despite Clarifying On Moody’s Downgrade
Shares of the telecom operator fell 1.6 percent intraday to Rs 303.20 per share.
Bharti Airtel clarified that overall debt situation is already comfortable and the planned initiatives will further benefit the debt picture, according to an exchange notification. The company’s board formed a fund-raising committee that will meet on Feb. 28.
The stock traded 25 percent below the Bloomberg one-year consensus target price.
Also read: Why Bharti Airtel Won’t Mind Losing #2 Spot
PVR Swings After Dropping Overseas Expansion Plans
Shares of the multiplex chain operator fluctuated between gains and losses to trade at Rs 1,594.50 per share as of 9:35 a.m.
PVR terminated its memorandum of understanding with Al-Futtaim for exploring opportunities to jointly develop cinema business in Middle East and North Africa region, according to its exchange filing. The management stated that it has decided against deploying any capital for the aforementioned region.
The stock traded at 43 times its estimated earnings per share for the coming year, Bloomberg data showed.
Sintex Plastics Gains After Plans To Reduce Debt
Shares of the plastic storage products manufacturer reversed its two-day blip and rose as much as 3.8 percent to Rs 18.95 per share.
The company is mulling to monetise non-core assets and is exploring alliance with a strategic partner to improve overall business, according to an exchange filing.
The Relative Strength Index on the stock was below 30, indicating it may be oversold.
Infosys At All-Time High
Shares of the Bengaluru-based software developer halted a two-day fall. The stock rose as much as 1.43 percent to hit a new all-time high at Rs 765.65.
The stock has returned 33 percent in the past 12 months. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Tata Chemicals At Over 16-Month Low After Q3 Profit Plunges
Shares of Tata Chemicals declined for the fifth day and are set for their longest losing streak since October. The stock fell as much as 7.4 percent to Rs 598, its lowest levels since September 2017, after it announced its December quarter results.
Key Highlights (Q3, YoY)
- Revenue up 10 percent at Rs 2,831.9 crore.
- Net profit down 71.1 percent at Rs 219.5 crore.
- Ebitda up 3.3 percent at Rs 966 crore.
- Margin at 34.1 percent versus 38.8 percent.
- Deferred tax reversal of Rs 250.4 crore and exceptional gains of Rs 59.6 crore in base quarter.
- Other income worth Rs 96.1 crore.
Tech Mahindra Hits Record High After Q3 Performance
Shares of the IT services provider surged 5.8 percent intraday to Rs 794.60 apiece. The stock was also the top Nifty gainer.
Net profit increased 14.3 percent sequentially to Rs 1,207 crore in the quarter ended December, according to its stock exchange filing. Analysts tracked by Bloomberg had expected profit at Rs 1,098 crore.
Other Key Highlights:
- Revenue rose 3.6 percent to Rs 8,943 crore.
- Operating profit rose 8.6 percent to Rs 1,439 crore.
- EBIT margin expanded 70 basis points to 16.1 percent.
Click here to read the earnings in detail.
Here’s what the brokerages had to say on the stock:
- Maintained ‘Outperform’; hiked price target to Rs 810 from Rs 720.
- Revenue beat led by enterprise and telecom along with strong deal wins.
- Sharp margin surprise and recovery likely complete.
- Hike revenue estimates by 1-3 percent and margin estimates by 75-130 basis points.
- Maintained ‘Buy’; hiked price target to Rs 870 from Rs 850.
- Solid deal wins ensure continued growth traction.
- Streak of margin improvement could be over for now but don’t expect deterioration.
- Structural growth to drive returns.
JSW Steel Gains Ahead Of Earnings
Shares of the steelmaker rose as much as 1.2 percent to Rs 276.80 per share as the company is scheduled to announce its earnings for the December-ended quarter today.
Preview (Q3, YoY)
- Revenue expected to rise 18.4 percent to Rs 20,919 crore.
- EBITDA expected to rise 14.3 percent to Rs 4,402 crore.
- EBITDA margin seen at 21 percent versus 22 percent.
- Net profit expected to decline 1.5 percent to Rs 1,727 crore versus Rs 1,753 crore.
The stock declined 6.4 percent in the past 12 months compared with 5.4 percent gain in the S&P BSE Sensex Index.