Stocks Radar: Ambuja Cement, Bharat Financial Inclusion, Escorts

Indian stocks climbed on the first trading session of a new month, led by gains in automakers and financials.

#BQMarketsNow | Sensex opens around 30,030. Automakers rise, cement stocks fall.https://t.co/grYS3O7hG5 pic.twitter.com/iyCm3lMlzR

May 2, 2017

Here are the stocks moving the market this morning:

Dr. Reddy's Laboratories: Receives 11 Observations

Shares of the drug maker fell 0.9 percent to Rs 2.575 after it received 11 observations from the U.S. Food and Drug Administration (FDA) following an inspection at its Hyderabad facility.

The regulator issued a Form 483 citing procedural discrepancies and the "need to improve people capabilities and strengthen documentation in laboratory systems", according to a company filing.

Earlier this month, the U.S. FDA issued Dr. Reddy's two observations after inspecting company's manufacturing plant at Srikakulam in Andhra Pradesh.

Lupin: Receives 3 Observations

The company rose 1.6 percent to Rs 1,360 despite the U.S. FDA citing three observations after inspecting its Goa facility.

The company is in the midst of putting together a response to address the said observations, it said in a notification to the exchanges.

Strides Shashun: Receives No Observations On Inspection

While two of its peers received observations from the American drug regulator, Strides rose 2.4 percent to Rs 1,098 after its Puducherry facility received no observations from an inspection.

The oral dosage facility saw a routine inspection recently, the company said in a statement to the exchanges.

Automakers: April Sales

Maruti Suzuki rose 2.7 percent to Rs 6,700 after its April sales rose 19.5 percent to 1.51 lakh vehicles, compared to a year ago, led by its compact and utility vehicle segments.

The compact segment, which includes the Swift, Celerio, Ignis, Baleno, DZIRE and Dzire Tour, saw 39.1 percent higher sales while utility vehicles including the Vitara Brezza, Ertiga and S-Cross saw a 28.6 percent growth, according to an exchange filing.

Tata Motors dropped 1.6 percent to Rs 451 after its sales declined 19 percent to 35,604 units in April, as the company struggled to meet high demand for vehicles complying with Bharat Stage-IV emission norms.

Escorts rose 1.6 percent to Rs 555 after it sold 4,899 tractors in April 2017 with a growth of 20 percent on a year-on-year basis. Export rose 2.6 times to 139 tractors, according to the company's exchange filing. Domestic sale of tractor rose 18 percent to 4,760 tractors during the month.

Eicher Motor rose 2.6 percent to Rs 26,747 after its sales grew 25 percent in April, based on the popularity of the Royal Enfield biked of lower engine capacity. Sale of bikes below the engine capacity of 350cc grew 30 percent to 56,439 units while that of premium bikes fell 23 percent during April. Exports on the other hand, grew 36 percent on a year-on-year basis.

Hero MotoCorp rose 0.5 percent to Rs 3,335 after falling 0.5 percent to Rs 3,303 on Tuesday morning. Its sales dropped 3.5 percent to 5.9 lakh vehicles during the month of April, hit by the ban of BS-III vehicles.

The company reassured shareholders saying it "expects to maintain the trend of robust sales in May" because of the wedding season, it said in a statement to the exchanges. It also raised prices from between Rs 500 to Rs 2,200 across various models, which will come into effect from May 1.

Also Read: How Automakers Fared In April

Earnings Reaction

Ambuja Cement fell 3.2 percent to Rs 238 after its profit missed the street estimates despite a 3.6 times jump during the January to March quarter. Sales from operations rose by 5.3 percent while realisation improved by 2.5 percent on a year-on-year basis.

Dabur India fell 1.5 percent to Rs 282 after its revenue declined for the second consecutive quarter, falling 4.8 percent to Rs 1,914.6 crore. Profit rose 3 percent while profit margins expanded by 190 basis points to 15.2 percent.

Bharat Financial Inclusion fell 4.4 percent to Rs 768 after it posted a net loss of Rs 234.9 crore compared to a profit of Rs 884 crore.provisions for bad debts rose more than 90 times on a sequential basis while bad loans rose to 6 percent from 0.6 percent in the previous quarter.

Raymond fell 3.7 percent to Rs 716 after its net profit fell 37.5 percent to Rs 33.9 crore. EBITDA fell 20.4 percent while revenues improved by 5.1 percent to Rs 1,473.6 crore.

JSW Energy fell 6.4 percent to Rs 62 after its profit fell 92 percent to Rs 24.8 crore for the January to March quarter of financial year 2016-17. At the same time, EBITDA rose 16 percent to RS 49.7 crore.

The company announced a dividend of Rs 13 per share and a stock split in the ratio of 5:1, in a separate filing on the exchanges.

Rane (Madras): Falls On Possible Contract Cancellation

Shares of the Tamil Nadu-based firm dropped 4.3 percent to Rs 487 after an automotive company based in Poland said that it may cancel its contract worth Rs 850 crore with the steering and suspension systems maker .

Nexteer Automotive Poland had earlier given a letter stating its intent to source steering gears from Rane (Madras).

Thermax: Wins Export Contracts

The company rose 1.1 percent to Rs 1,042 after it won export contracts worth Rs 1,007.2 crore from Africa.

The company will supply three packages including utility boilers, heat recovery steam generators and flue gas steam generators for a petrochemical project in Nigeria.

Sensex, Nifty: Movers & Shakers

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