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Bajaj Finance Ltd. posted a worse-than-expected 4% rise in first-quarter profit on muted earnings from lending and higher provisioning as the consumer financier sought to balance asset quality risks and fresh lending amid India’s deadly second coronavirus wave.
The shadow lender’s consolidated net income was Rs 1,000 crore in the three months through June, compared with Rs 960 crore a year ago, according to a statement Tuesday. That lagged an average estimate of Rs 1,370 crore based on a Bloomberg survey of eight analysts.
While the recent coronavirus wave has hit Bajaj Finance’s lending due to the curbs on physical movement, analysts expect the financier to accelerate growth on the back of its digital infrastructure.
The IPO was subscribed 94.43 times as of 2:00 p.m. on July 20.
Institutional investors: 55.46 times
Non-institutional investors: 293.41 times
Retail investors: 31.42 times
Indraprastha Gas Ltd. is lower for the eighth straight day, on track for the longest losing streak since the period ended Nov. 9, 2015.
Indraprastha Gas has lost a total of 6.8% during the streak while today, the stock fell 1.9% to Rs 539.45. Stock advanced 29% in the past 52 weeks. The Sensex gained 40%.
The company trades at 26 times its estimated earnings per share for the coming year. Of the 36 analysts covering Indraprastha Gas, 27 recommend a 'buy', 4 'hold' and 5 suggest a 'sell'. The average of 12-month consensus price targets implies an upside of 8.4%, according to Bloomberg data.
Asian Paints reported net income for the first quarter that met the average analyst estimate.
Net income Rs 582.22 crore vs. Rs 814.71 crore QoQ, estimate Rs 580 crore
Revenue Rs 5,585.36 crore, -16% QoQ, estimate Rs 4,837 crore
EBITDA down 31% at Rs 913.56 crore Vs Rs 1,318.26 crore QoQ (Bloomberg estimate Rs 938.6 crore)
Margin at 16.4% Vs 19.8% (Bloomberg Est: 19.4%)
UltraTech Cement options volume 3.8x the 20-day average, with 45,967 calls changing hands vs 9,695 puts
Stock up 2.7%, volume 2x the 20-day average for this time of day
HCL Tech options volume 3.2x the average, with 53,086 calls vs 27,427 puts
Stock down 2.1%, volume 2x the average
Asian Paints options volume 3.1x the average, with 31,377 calls vs 9,230 puts
Stock up 1.6%, volume 1.3x the average
Shree Cement options volume 3x the average, with 1,967 calls vs 101 puts
Stock up 0.9%, volume 1.1x the average
Nestle India options volume 2x the average, with 1,433 calls vs 85 puts
Stock up 0.3%, volume 0.5x the average
Nifty 50 options volume 0.8x the average, with 6.51 million calls vs 6 million puts; gauge down 0.6%
Cost of hedging as measured by the 90/110, one-month skew ranks in the 6th percentile over the past year
Nifty Bank index options volume 0.7x the average, with 10.2 million calls vs 11.3 million puts; gauge down 1.6%
90/110, one-month skew in the 17th percentile
India VIX Index up 4.4%
Shares of Astral Ltd shed 3.52%, the steepest decline in 14 weeks, to Rs 1,985.00 apiece. Over the past 5 sessions, Shares of Astral have fallen by 3.3%.
Astral trades at 85 times its estimated EPS. Out of the 24 analysts tracking the company, seven maintained ‘buy’, six maintained ‘hold’ and 11 analysts maintained ‘sell’ recommendations. The consensus price target of analysts tracked by Bloomberg implied a 15.3% downside.
Shares of Astral have advanced 172% in the past 52 weeks.
Shares of Aegis Logistics jumped as much as 2.74% after Nomura said the benefits of its joint venture with Dutch tank storage company Royal Vopak were significantly underestimated. The stock had declined for the last six sessions.
Nomura maintained its ‘buy’ rating on Aegis Logistics and said that the deal could lead to capex levels thrice of what Aegis would have without the deal. “Without the deal, Aegis could have incurred a growth capex of Rs 1,500 crore over FY23-27F. With the expanded opportunity set, a capex level of Rs 2,500 crore-Rs 4,500 crore is planned,” it said in a note.
It further added that Aegis gains new opportunities in industrial terminals, additional liquids and gas markets not addressed by it. Long-term growth with opportunities in green energy have also been unlocked, since Vopak is an early entrant with strong technology access for green hydrogen storage, it said.
Nomura hiked its target price for Aegis Logistics to Rs 440 from Rs 415, implying a potential upside of 37.5%.
Of the seven analysts tracking the stock, five have a ‘buy’ rating, two suggest a ‘hold’ and none recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies an upside of 19.6%.
The stock has risen 29.1% year-to-date as compared to S&P BSE Sensex’s 10.2% gain.
Shares of Prism Johnson Ltd. gained 4.11% to Rs 145.60 apiece on ratings upgrade by India Ratings and Research Pvt. Ltd.
The credit rating agency has affirmed long-term issuer rating at IND A+ with a stable outlook on Prism Johnson. According to exchange filings by Prism Johnson, the ratings upgrade was due to strong operational and strategic linkages among Prism Johnson and its subsidiaries and the completion of amalgamation of some of the subsidiaries with itself over the last few months.
Out of the 8 analysts tracking the company, 7 maintained ‘buy’ and 1 analyst maintained ‘sell’ recommendation. The consensus target price of analysts tracked by Bloomberg implied an upside of 14.1%.
Shares of the building materials company have added nearly 60% since the union budget on February 1 and nearly 65% for the year so far.
Billionaire Adani’s Firms Sink for Second Day on India Probes
HDFC Bank Stock Falls Most In Over Two Months On Asset Quality Drop, But Analysts Stay Bullish
Shares of rating agency companies extend their rally to a second session.
Shares of CRISIL added 2.71% to Rs 3203.15 apiece. The rise comes ahead of quarterly earnings for the June quarter due today. The relative strength index on the stock was above 70, indicating that the company may be overbought. Out of the six analysts tracking the company, four maintained ‘buy’ and two maintained ‘sell’ recommendations. The consensus price target of analysts tracked by Bloomberg implies a downside of 27%
Shares of ICRA gained nearly 5.33% to Rs 4011.95 apiece ahead of its ex-dividend date on Friday while shares of CARE Ratings gained nearly 1% to Rs. 731.20 a piece. For the year so far, ICRA added nearly 35% while CARE Ratings gained nearly 39%, respectively.
HCL Tech’s Margin Miss, No Hike In Growth Guidance Disappoint Analysts
To read more brokerage views on ACC and cement stocks, click here.
Seventeen of the 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of power companies.
In India’s earnings season, five of the six Nifty 50 members that have announced results so far fell short of analysts’ estimates. HCL Technologies Ltd. fell 2% after posting profit and sales that missed expectations after yesterday’s market close. Bajaj Finance Ltd. and Asian Paints Ltd. are scheduled to announce results later today.
Reliance-Just Dial Deal: Brokerages Expect Stake Buy To Aid Reliance Retail’s New Commerce Push
Indian sovereign bonds are poised to open higher due to a slide in crude oil, and a decline in U.S. Treasury yields amid concern over the global spread of the delta coronavirus variant.
USD/INR rose 0.4% to 74.8763 on Monday, the biggest gain in a month
Implied opening from forwards suggest spot will start trading around 75.01
India’s 10-year yields fell 2bps Monday to 6.19%
The new 10-year will remain in a 6.05-6.15% range in the near term as global market conditions remain favorable due to lower UST yields and crude oil prices, while domestic inflation peaks and near-term supply concerns ease, according to a Kotak Mahindra Bank note
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