We suggest using any intermediate correction for accumulating quality stocks on dips. Nifty has strong support at 9,900, so plan your trades accordingly.”Jayant Manglik
Lupin reported its earnings for the April-June quarter that were below analyst estimates.
The drugmaker reported a net profit of Rs 358 crore which was 59 percent lower than the Rs 882 crore reported during the corresponding quarter last year. Analysts tracked by Bloomberg had pegged net profit at Rs 532 crore.
EBITDA for the company declined 41 percent to Rs 767 crore on a year-on-year basis. The number was below the consensus estimate of Rs 998 crore.
EBITDA margins fell 950 basis points to 19.8 percent compared to 29.3 percent last year.
Shares were off the highest point of the day, but traded with gains of 2.7 percent at Rs 1,045, as of 2 p.m. on the National Stock Exchange.
Shares of Max Ventures and Industries Ltd. surged as much as 12.92 percent, the most since June 1 this year after the company returned to black during the April-June quarter.
Net profit stood at Rs 60 crore compared to a net loss of Rs 48 lakh during the corresponding quarter last year.
The company's EBITDA also got back into positive territory at Rs 102 crore from an EBITDA loss of Rs 48 lakh.
Essar Steel: NCLT admits insolvency case, Appoints Interim Resolution Professional, reports @visshy_it.https://t.co/Jg1jWNiVxM pic.twitter.com/1dgs35zxdI
— BloombergQuint (@BloombergQuint) August 2, 2017
Shares of the real estate company fell as much as 2.97 percent to Rs 499.75 after it reported a net profit of Rs 23.37 crore during the current quarter. Net profit during the corresponding quarter last year stood at Rs 43.31 crore.
The company's revenue from operations declined to Rs 248.65 crore from Rs 303.84 crore last year. The number missed the Bloomberg analyst estimates which projected revenues at Rs 449 crore.
The company also reported an EBITDA loss of Rs 18.3 crore. It had an EBITDA of Rs 39.7 crore last year.
Drugmaker Wockhardt Ltd. reported a net loss of Rs 410 crore during the April-June quarter. The company had reported a net profit of Rs 16 crore during the corresponding quarter last year.
A one-time loss of Rs 358 crore enhanced losses for the company. The cost was incurred in relation to the on-going commercial litigation between the company and two of its subsidiaries, Wockhardt U.K. Holdings Ltd. and CP Pharmaceuticals Ltd. which was settled this quarter.
The company's India business saw a de-growth of 8 percent on a sequential basis. The company launched four new products this quarter, it said in a statement.
The company also received shareholder approval to raise funds amounting to Rs 1,000 crore via QIP.
Shares fell as much as 4.1 percent, the most in a month, to Rs 578 on the National Stock Exchange.
The consensus price target of Bloomberg analysts, which stands at Rs 1,212.17, is 16.8 percent higher than the current market price.
Shares of India's largest steel maker fell as much as 3.56 percent, the most in two months after the company reported a 43 percent decline in its net profit during the April-June quarter.
This was the company's first drop in net profit in six quarters. Revenue for the company increased more than 25 percent to Rs 14,779 crore.
Brokerages remained upbeat on the stock despite the result.
- Credit Suisse: Maintains 'Outperform' with price target hiked to Rs 265 from Rs 240
- CLSA: Maintains 'Buy' with price target of Rs 300
The Bloomberg consensus price target of Rs 231.07 is 6.3 percent higher than the current market price.
Shares of Punjab National Bank surged as much as 2.8 percent after the bank reported a 12 percent rise in its net profit during the April-June quarter.
Net profit for the quarter stood at Rs 343 crore compared to Rs 306 crore during the corresponding quarter last year.
Here are some of the other key highlights:
- Net interest income grew 4.8 year-on-year to Rs 3,855 crore
- Gross Non-Performing Assets in absolute terms grew 4.2 percent seqentially to Rs 57,720 crore
- Gross NPA in percentage terms stood at 13.66 percent from 12.53 percent in the previous quarter
- Net NPA stood at 8.67 percent from 7.81 percent in the January-March period
- Provisions nearly halved on a sequential basis to Rs 2,560 crore from Rs 4,910 crore
Rashtriya Chemicals and Fertilizers Ltd. gained as much as 15 percent to Rs 101.3 after the stock had multiple block deals taking place on the exchanges.
This is the most that the stock has gained in nearly 2.5 years, since April 7, 2015.
The stock has gained for the fourth straight day, having fallen only once in the last 13 trading sessions.
The relative strength index of RCF is 79, indicating that the stock maybe overbought.
RCF has outperformed the S&P BSE Sensex on a year-to-date basis, having gained 108.7 percent during the period.
Shares of the country's largest two-wheeler motorcycle manufacturer gained as much as 2.5 percent to Rs 3,820 after it reported a 17 percent year-on-year rise in overall sales for July 2017.
This is the most that the stock has gained in the last two months. It is currently the best performing stock on the NSE Nifty 50 index.
Among the analysts tracked by Bloomberg, having coverage on the stock, 49.1 percent have a 'Buy' recommendation on the stock while 26.4 percent have a 'Hold' rating. 24.5 percent of the analysts are recommending a 'Sell' on the stock.
The stock has outperformed the S&P BSE Sensex on a year-to-date basis, gaining 27 percent during the period.
Shares of the cement maker dropped as much as 1.4 percent, making it the worst performer on the Nifty, after broking firm IDBI Capital said the scrip may soon exit the index.
ACC is likely to be replaced by either UPL Ltd. (low probability) or Bajaj Finance (high probability) as part of the period rebalancing undertaken by the NSE Ltd., the broking firm said in a research note.
Post ACC’s exit, cement weightage may drop to 1.6 percent from 2 percent currently.
Shares of Hindustan Copper Ltd. fell as much as 7.51 percent to Rs 65.25 after the Government of India proposed to sell 3.7 crore shares or its 4 percent stake in the company through an offer for sale on August 2 and 3.
This is the most that the stock has receded in 9 months, since November 9, 2016. The government's stake post the sale will come down to 78.88 percent.
The floor price for the offer has been set at Rs 64.75 per share.
The stock has underperformed the S&P BSE Sensex on a year-to-date basis, having gained 11 percent, as compared to the index's gain of 22.5 percent.
The D-day is here. The bond markets - widely expecting a rate cut have already started cheering and we saw the yield on the benchmark note drop 2 basis points in the last session to 6.44 percent.
The broad view is that there may not be a sustainable drop in yields if the RBI cuts the rate today as the price currently fully factors in the action. So what more will the market be reading in the policy?
Foremost will be the central bank's liquidity management and whether or not the system is at a neutral level, possible word on raising FII limits in corporate bonds as the existing limits have been fully utilized and also any major policy measures on liquidity management.
The Indian rupee gained in the last session coming further close to the 64 mark. For today though, a gauge of dollar strength is up and Asian currencies are largely down. The rupee bulls though will be closely watching the RBI policy, the broad expectation is of a narrow range between 64-64.20 a dollar in the day.
A strategy tip before we end, Nomura recommends going long on the rupee and expects it to be an outperformer in the medium term with returns of 13 percent by end-2019.
- Lupin
- Punjab National Bank
- Bata
- Capital First
- Edelweiss
- Emami
- Entertainment Network
- Godrej Properties
- KEC International
- Reliance Infrastructure
- Voltas
- Wockhardt
- Greenply Industries
- HEG
- Igarashi Motors
- Ingersoll Rand
- Kaya
- Magma Fincorp
- Mahindra Holidays
- Max Ventures
- Narayana Hrudayalaya
- Sical Logistics
- Solar Industries
- Transport Corporation of India
- Tribhovandas Bhimji Zaveri
- UCO Bank
- VST Industries
#BQMarketsNow | Levels of 9,950-9,840 crucial for Nifty, says Nooresh Merani of AMSEC.https://t.co/q38CBNrQiY pic.twitter.com/UFO7xyJUxg
— BloombergQuint (@BloombergQuint) August 2, 2017
- Carborundum: New ‘Hold’ at BOB Capital Markets with target price of Rs 355
- Container Corp: Raised to ‘Buy’ at Phillip Secs with target price of Rs 1,380
- Hexaware Tech: Cut to ‘Hold’ at Asian Markets with target price of Rs 245
- LIC Housing: Cut to ‘Accumulate’ at India Infoline with target price of Rs 740
- NTPC: New ‘Buy’ at BOB Capital Markets with target price of Rs 200
- Shree Cement: Cut to ‘Underperform’ at Batlivala & Karani
- Tech Mahindra: Cut to ‘Hold’ at ICICIdirect with target price of Rs 450
- Sintex: Cut to ‘Neutral’ at IDFC Securities with target price of Rs 35
- Torrent Pharma: Cut to ‘Market Perform’ at Khambatta Securities
For a complete list of stocks to watch, click HERE!
- Modi's economic aide Panagariya resigns to resume teaching
- Bharti Airtel may sell 3 percent stake in Infratel
- Next GST council meet to decide on anti-profiteering mechanism
- Privacy a vague concept; cannot be fundamental right, UIDAI argues
- Paytm to launch messaging service to rival WhatsApp
- Cochin Shipyard IPO almost fully subscribed on first day
- McDonald’s franchisee expects high single digit same-store sales growth in FY18
- JSW Steel’s lower production not a setback, says Group CFO
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