Stocks Radar: Yes Bank, DHFL, ONGC, PSP Projects
Indian equity benchmarks opened lower in today’s trade. The S&P BSE Sensex declined 0.21 percent to 35,959.30 and the NSE Nifty 50 Index traded 0.28 percent lower at 10,763.55, as of 9:40 a.m. The market breadth was tilted in favour of sellers. However, seven of the 11 sectoral gauges advanced, led by a 0.82 percent gain in the Nifty Auto Index. The Nifty IT Index was the top loser, down 0.57 percent.
Here Are The Stocks Moving The Market This Morning
Yes Bank Surges After Clearing RBI’s Asset Quality Audit
Shares of the private bank rose as much as 30 percent, the highest in over 13 years, to Rs 220.25 per share
Yes Bank Ltd. received the Reserve Bank of India’s compliance assessment report for 2017-18, according to its notification to the exchanges. The report states that there is no divergence in asset classification and provisioning as per the RBI norms.
The stock traded 10 times its estimated earnings per share for the coming year, according to Bloomberg data.
DHFL Falls After CEO Resigns
Shares of the non-banking lender snapped their two-day gaining streak and fell as much as 6.5 percent to Rs 103.95 per share.
Dewan Housing Finance Corporation Ltd.’s Joint Managing Director and Chief Executive Officer Harshil Mehta resigned from the post of whole-time director with effect from Feb. 13, according to an exchange filing. But the company stated that he will continue to be the executive president of the retail business from Feb. 14 onwards, the filing said.
Also, state-run lender Bank of Baroda initiated a forensic audit of loans given to the company after news website Cobrapost alleged that DHFL has re-routed loan funds back to its promoter group entities.
The stock declined 80 percent in the last 12 months compared with 5.1 percent gain in the S&P BSE Sensex Index.
Pidilite Declines After Kenyan Expansion Plans
Shares of the adhesives manufacturer erased opening gains and fell nearly a percent to Rs 1,119.80 apiece.
Pidilite Industries Ltd.’s global arm set up a join venture in Kenya with Crown Classic, according to the company’s exchange filing. The global arm will hold 55 percent of the stake in the JV, while the remaining stake will be held by Crown Classics.
11 out of 22 analysts tracked by Bloomberg have a ‘Buy’ rating on the stock, while six analysts recommended ‘Hold’, five had a ‘Sell’ rating.
PSP Projects Gains After Order Wins
Shares of the infrastructure developer rose as much as 1.3 percent to Rs 395 apiece.
PSP Projects Ltd. emerged as the lowest bidder for two construction projects in Rajasthan and Gujarat with a cumulative contract value of Rs 415.2 crores, according to its notification to the bourses.
The trading volume was five times the 20-day average for this time of the day, Bloomberg data showed.
IndiGo Declines After Month-Long Flight Cancellations
Shares of the budget carrier fell 2.6 percent intraday to Rs 1,137.10 apiece.
Indigo cancelled 49 flights on Wednesday citing unfavourable weather conditions. The company would call off 30 flights daily for the remaining month to stabilise its operations and adjust its crew rosters, according to its exchange filing.
The shares declined 7.1 percent in the past 12 months compared with a 5.1 percent gain in the BSE Sensex Index.
ONGC Falls Ahead Of Earnings Announcement
Shares of the state-run oil explorer erased opening gains and fell 1.7 percent to Rs 131.15 per share ahead of the company’s results announcement for the December-ended quarter.
- Revenue seen to decline 3 percent to Rs 27,068 crore.
- Ebitda seen down 6 percent to Rs 14,785 crore.
- Ebitda margin seen at 54.6 percent versus 56.4 percent.
- Net Profit expected to decline 9 percent at Rs 7,485 crore.
- Net realisations seen at $66.83 per barrel versus $73.1 per barrel.
The share traded 5.3 times its estimated earnings per share for the coming year, according to Bloomberg data.
Gulf Oil Fluctuates After Q3 Results
Shares of the engine oil maker fluctuated between gains and losses to trade at Rs 885 per share, as of 9:40 am. The company announced results for the quarter ended December on Wednesday.
Key Highlights (YoY):
- Revenue rose 29.8 percent to Rs 462 crore.
- Net profit rose 17.2 percent to Rs 49.8 crore.
- Ebitda rose 18.7 percent to Rs 73 crore.
- Operating margin at 15.8 percent versus 17.3 percent.
- Declared dividend of Rs 4.5 per share.
The stock traded 11 percent below the Bloomberg consensus one-year target price.