Stocks Radar: Titan, Jet Airways, Tata Motors, Avanti Feeds
Indian equity benchmarks opened higher on Monday amid a mixed trade in Asian stocks. The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 35,118.03 and 10,580.25, respectively, as of 10:40 a.m.
The market breadth, however, was tilted in favour of sellers. Eight of the 11 sector gauges declined, led by a 1.81 percent fall in the Nifty PSU Bank Index. The Nifty IT Index was the biggest gainer, up 1.26 percent.
Here Are The Stocks Moving The Market This Morning
Titan Gains The Most In A Month After Q2 Earnings
Shares of India’s largest branded jewellery seller rose as much as 4.2 percent, its biggest intra-day gain in a month, to Rs 883.40 apiece.
Net profit of the company rose 3 percent year-on-year to Rs 314.4 crore in the July-September quarter, it said in an exchange filing. That compares with the Rs 367-crore consensus estimate of analysts tracked by Bloomberg.
Other Highlights: (Year-On-Year)
- Net sales rose 26 percent to Rs 4,406 crore.
- Ebitda up 5 percent at Rs 466 crore.
- Margin stood at 10.6 percent versus 12.7 percent.
- The company made provisions of Rs 29 crore due to its exposure to IL&FS group.
What brokerages have to say about Titan:
Deutsche Bank Research
- Maintains ‘Buy’ and hiked price target to Rs 1,100 from Rs 1,050.
- Good September quarter with strong jewellery sales growth.
- Second half of the ongoing financial year is expected to be better with retail sales growing 29 percent on a yearly basis in the first 40 days of the December quarter.
- Expects virtuous cycle of market share gains to continue.
- Maintains ‘Overweight’ with a price target of Rs 1,250.
- September quarter’s Ebitda adjusting for one-offs is below estimates on account of higher ad and other expenses.
- Believes Titan is on track to achieve more than 25 percent revenue growth in jewellery for the ongoing financial year.
- Watch segment performance ahead of expectations.
Avanti Feeds Slumps After Q2 Results
Shares of the shrimp feed distributor fell as much as 14.3 percent, the most since June 5, to Rs 361.75 apiece.
Key earnings highlights (Q2, YoY)
- Revenue down 12 percent at Rs 754.5 crore.
- Net profit down 60 percent at Rs 46.4 crore.
- Ebitda down 61.4 percent at Rs 72 crore.
- Margin stood at 9.6 percent versus 21.9 percent.
The trading volume was 18.8 times its 30-day moving average, Bloomberg data showed. The stock fell 54.1 percent so far this year compared to a 5 percent advance in the Sensex.
Other Stocks Reacting To Earnings
Shankara Building Products (Q2, YoY)
- Stock slumps 12.3 percent to Rs 950 a share.
- Revenue up 12.6 percent at Rs 643.9 crore.
- Net profit down 47.4 percent at Rs 9.1 crore.
- Ebitda down 24.3 percent at Rs 31.1 crore.
- Margin at 4.8 percent versus 7.2 percent.
India Energy Exchange (Q2, YoY)
- Stock rose 5.7 percent to Rs 169.50 apiece.
- Revenue up 19.9 percent at Rs 66.9 crore.
- Net profit up 30.6 percent at Rs 42.7 crore.
- Ebitda up 17.6 percent at Rs 54.7 crore.
- Margin at 81.8 percent versus 83.3 percent.
HealthCare Global Enterprises (Q2, YoY)
- Stock rose 1.5 percent to Rs 224.75 apiece.
- Revenue up 15.9 percent at Rs 244.7 crore.
- Net loss at Rs 6.5 crore versus a net profit of Rs 10 crore.
- Ebitda up 5.8 percent at Rs 32.9 crore.
- Margin at 13.4 percent versus 14.7 percent.
(Prices as of 9: 35 a.m.)
Tata Motors Falls After JLR’s Global Sales Drop
Shares of the carmaker dropped 2.1 percent to Rs 191.10 apiece.
Tata Motors-owned Jaguar-Land Rover’s October sales fell 4.6 percent year-on-year to 44,282 units, according to an exchange filing. Retail sales in the U.K. rose 46.9 percent and in North America by 24.1 percent , but the company stated that these gains were offset by a decline in sales in China by 49 percent due to trade tensions with the U.S.
The stock trades at 27 percent below the Bloomberg consensus one-year target price.
Jet Airways Falls On Report Of Considering Raising Funds
Shares of the airline fell as much as 3.1 percent to Rs 249.45 apiece.
Jet Airways is likely to consider multiple fundraising options in its board meeting today, Business Standard reported.
The stock declined close to 70 percent so far this year compared with a 5 percent rise in the BSE Sensex, according to Bloomberg data.
Lupin Gains After Receiving Establishment Inspection Report
Shares of the drugmaker pared early losses and rose as much as 2.5 percent to Rs 876 apiece.
The company’s Nagpur facility received an establishment inspection report from the U.S. drug regulator, according to an exchange filing.
Lupin trades at 30.5 times trailing its 12-month earnings per share and 31 times its estimates for the coming year, according to Bloomberg data.
Fertilizers & Chemicals Travancore Falls After Auditor Raises Concern
Shares of the agro-chemicals company declined as much as 1.5 percent to Rs 39.30 apiece.
Fertilizers Chemicals Travancore’s auditors reported that its net worth has been fully eroded. In their Emphasis of Matter paragraph, they said there exists a condition of material uncertainty which may cast a significant doubt on the company’s ability to continue as a “going concern”.
Key Highlights (Q2, YoY)
- Revenue fell 11.8 percent to Rs 534 crore.
- Net loss at Rs 51.9 crore versus a net profit of Rs 2.8 crore.
- Ebitda down 85.3 percent at Rs 13 crore.
- Margin at 2.4 percent versus 14.7 percent.
The stock fell 25 percent so far this year, Bloomberg data showed.
Coal India Rises Ahead Of Q2 Results
Shares of the state-run miner rose nearly 1.1 percent to Rs 271.40 apiece.
Coal India is scheduled to announce its September-quarter results today.
Q2 Preview (Consolidated, YoY)
- Revenue expected to rise 20 percent to Rs 21,825 crore.
- Ebitda likely to go up to Rs 4,529 crore.
- Ebitda margin seen at 21 percent versus 7.3 percent.
- Net profit seen at Rs 3,137 crore against Rs 369 crore.
Out of the 32 analysts tracked by Bloomberg, 26 recommend a ‘Buy’, five suggest a ‘Hold’ and one has a ‘Sell’ rating on the stock.