Stocks Radar: GMR Infra, Adani Power, Bharti Airtel, Cadila Healthcare, TVS Motors
Indian shares climbed the most this week taking a cue from its global peers as private American hiring data bolstered confidence in the global economy.
#BQMarketsNow | Indian markets take a cue from its global peers, Nifty scales 9,650.https://t.co/g6tFm72QCQ pic.twitter.com/b5rOQtrp2u
June 2, 2017Here are the stocks moving the market this morning:
Bharti Airtel: Merger Boost
Shares of Bharti Airtel rose 1.77 percent to Rs 373.4 after the telecom operator received approval for its merger with Telenor from Securities and Exchange Board of India (SEBI) and the stock exchanges (BSE and NSE)
The Sunil Mittal-led firm and Telenor has filed a joint company application with the national Company law Tribunal for approval of merger, the company said in its exchange filing.
The stock returned 20 percent so far this year and provided less than 1 percent.
Also read: Bharti Airtel, Telenor India Approach NCLT For Merger Following SEBI Nod
GMR Infra: Back In Black
Shares of the infrastructure firm gained as much as 15.7 percent, the most since May 2014. It was the best performer on the S&P BSE 500, Nifty Midcap 50 indices. The scrip returned over 46 percent this year compared to 17.4 percent gain in the benchmark Sensex.
Today's volume is over 3 times its three-month full-day average.
The company reported group pre-tax profit of Rs 753 crore for year ended March 31 versus a loss of Rs 2,476 crore year ago, according to Bloomberg. Moreover, it managed to cut gross debt to Rs 19,856 crore in FY17 versus Rs 3,748 crore.
The company said its FY17 group EBITDA stood at Rs 3,497 crore versus Rs 3,114 crore. It attributed “robust improvement in airports and energy verticals” for its earnings performance.
Its engineering, procurement and construction (EPC) order book stands at Rs 7,100 crore.
Reliance Communications: Debt Downgrade
Shares of Anil Ambani-led firm fell 1.93 percent to Rs 20.35 after the telecom operator's short-term and long-term debt was downgraded to a lower status by yet another ratings agency -- Fitch Ratings, citing default as real possibility.
The company is also expected to struggle in refinancing its maturing short-term debt, given decline in earnings and delay in executing asset sales, according to the ratings agency.
The stock returned a negative 40 percent so far this year and a loss of 60 percent.
Also Read: Everything You Need To Know About Reliance Communications' Default Rating
Cadila Healthcare: FDA Green Signal
Shares of the pharmaceutical company rose 7.23 percent, the most since February 17, after Zydus' Moraiya plant received its first product approval post the U.S. drug regulator's audit.
40 percent of analysts covering the company have changed their price targets over the past month (12 up, 3 down, 21 unchanged, 1 dropped).
The stock is trading at 26.6 times its estimated forward earnings per share compared to 20.5 times for comparable companies.
The stock returned 40 percent so far this year and a gain of 54 percent in the past 52 weeks.
Adani Power: Mulls Unit Sale
Shares of Gautam Adani-led company gained as much as 2.04 percent to Rs 27.5 after the company announced that its board will consider on June 6, a proposal for slump sale of its Mundra power generating business to another group company Adani Power (Mundra) Ltd., in an exchange filing.
Consensus three year estimated sales CAGR is 8.0 percent, compared to 48.3 percent average growth over past 5 years.
The stock returned a negative 9.8 percent so far this year and a loss of 10 percent in the past 52 weeks.
Automakers: May Sales Buzz
Tata Motors rose 1.74 percent to Rs 484.95 after the automobile manufacturer reported increase in sales of small cargo vehicles by 10 percent compared to the corresponding period in 2016 .
The overall sales, however declined 4 percent due to the steep decline in medium and heavy commercial trucks by 40 percent on year-on-year basis, primarily due to severe global supply constraints of Fuel Injection Pumps for BS4 engines.
The stock returned 2.4 percent so far this year and a gain of 6.6 percent.
Bajaj Auto fell as low as 2.36 percent, highest intraday in a week fall since to Rs 2,772 after its sales declined 10 percent in previous month, in contrast with corresponding month last year.
The automaker's export declined 3 percent last month on year-on-year basis.
The stock returned 5.7 percent so far this year and a gain of 7.4 percent.
Hero Motocorp rose 2.02 percent to Rs 3,808.8 after the two-wheeler manufacturer's retail sales grew 8.7 percent in May compared to the same period last year.
The company expects to maintain the growth trajectory due to a boost in demand and rural consumption on the back of a normal monsoon forecast, according to the company's media statement.
The automotive stock is up 1.9 percent on high trading volume with 1.9 times average volume at time.
The stock returned 27 percent so far this year and a gain of 24 percent.
TVS Motor Company rose 5.85 percent, the biggest rise since July 2000, to Rs 565 after the two wheeler manufacturer's sales increased by 16 percent in the month of may, compared to the corresponding period last year.
The company's motorcycle sales grew 22.3 percent , while sales of scooters increased by 31 percent in the previous month on year-on-year basis.
The stock is up 4.2 percent on a high trading volume. The stock returned 55 percent so far this year and a gain of 88 percent.
Also Read: Not All Automakers Could Take The Highway In May
Bulk Deal
Kalyani Investment Company
- Shares of the company rose 2.19 percent to Rs 2040 after Sundaram Trading and Investment bought 51,200 shares or 1.2 percent stake at Rs 1,948.86 each.
- ICICI Prudential Mutual Fund A/C - ICICI Prudential Dynamic Plan sold 49,618 shares or 1.1 percent stake at Rs 1,950 each
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