Stocks Radar: Varun Beverages, Shriram EPC, Indian Oil, Bosch India
Indian equity benchmarks opened higher, led by gains in Larsen & Toubro. That comes when most stocks in Asia advanced, building on a rally in global equities.
Indian equity benchmarks swung between gains and losses as investors weighed second quarter earnings and await the outcome of state elections this month.
The S&P BSE Sensex declined 0.2 percent to 34,442 and the NSE Nifty fell 0.2 percent as well to 10,365. The market breadth was tilted in favour of buyers. Eight of the 11 sectoral gauges advanced, led by the Nifty Realty Index's 2 percent jump. The NSE Nifty IT Index was the biggest loser, down 2 percent.
Here Are The Stocks Moving The Market This Morning
Tata Motors Gains For Fifth Session On JLR Turnaround Plan
Shares of the carmaker are set for their longest winning streak in nearly months after the company initiated a turnaround strategy for its struggling luxury unit Jaguar Land Rover. The stock rose as much as 3.2 percent to Rs 184.90 apiece.
Tata Motors suffered a wider-than-expected loss in the quarter ended September due to fewer sales of JLR amid uncertainties around Brexit and China demand. The net loss stood at Rs 1,049 crore compared with a net profit of Rs 2,482 crore in the year-ago period, according to its exchange filing. That's more than the Rs 874-crore loss estimated by analysts tracked by Bloomberg.
Other highlights: (Q2, Consolidated Year-On-Year)
Tata Motors
- Revenue rose 3.3 percent to Rs 72,112.1 crore.
- Ebitda down 16.4 percent at Rs 6,757.6 crore.
- Margin stood at 9.4 percent against 11.5 percent.
JLR
- Net revenue down 11 percent to £5.6 billion.
- Ebitda margin at 9.1 percent versus 11.8 percent.
- Loss at £100 million versus £253 million.
Analysts remained cautious on Tata Motors as they expect profitability to remain under pressure. They have cut their price target for the stock citing lower margin estimates for JLR.
The stock declined 57 percent so far this year, making it the worst performer on the NSE Nifty Index, according to Bloomberg data.
L&T Jumps Most In Over Two Months After Q2 Results
Shares of the construction and engineering company rose 6.7 percent, the highest in over two months, to Rs 1,384 apiece after the company's profit rose for the eleventh straight quarter, beating the highest analyst estimate.
The company's net profit rose 22 percent on a yearly basis to Rs 2,230 crore in the July-September period, it said in an exchange filing. It's higher than the most optimistic analyst estimate of Rs 1,775 crore, according to Bloomberg.
Other highlights: (Q2, YoY)
- Revenue up 21 percent to Rs 32,081 crore.
- Ebitda up 27 percent to Rs 3,770 crore.
- Margin stood at 11.7 percent versus 11.2 percent.
- Exceptional gain of Rs 295 crore versus Rs 137 crore.
Analysts remained upbeat on the stock on the back of the company's improved order execution.
CLSA
- Maintains ‘Buy' with a price target of Rs 1,730, a potential upside of 33 percent from the last regular trade.
- The September quarter was stellar, surpassing all estimates.
- Hydrocarbon remains the company's star business; return on equity crosses 15 percent after six years.
- Execution pickup without balance-sheet sacrifice was commendable.
Macquarie
- Maintains ‘Outperform' and raised price target to Rs 1,880 from Rs 1,825, a potential upside of 45 percent from the last regular trade.
- L&T delivered a spotless set of numbers; handsome beat on all fronts.
- Revenue growth shifted to next gear, led by better infrastructure order execution.
- Margins and order inflows have potential to surprise positively on guidance.
Other Stocks Reacting To Earnings
Vedanta (Q2, Consolidated Year-on-Year)
- Stock rose nearly 1.7 percent to Rs 214.80 apiece.
- Revenue up 5.16 percent at Rs 22,705 crore.
- Net profit down 34.3 percent at Rs 1,343 crore.
- Ebitda down 8.15 percent at Rs 5,208 crore.
- Margin stood at 22.9 percent versus 26.3 percent.
- Interim dividend at Rs 17 a share.
Dixon Technologies (Q2, YoY)
- Stock rose 20 percent to Rs 2,513.25 apiece.
- Revenue down 16 percent to Rs 739 crore.
- Net profit down 21 percent to Rs 16.4 crore.
- Ebitda down 6 percent to Rs 33 crore.
- Margin stood at 4.5 percent versus 4 percent.
- Revenue lower due to a fall in mobile segment; Net profit lower due to lower other income and higher tax rate.
United Spirits (Q2, Standalone YoY)
- Stock rose close to 7 percent to Rs 616.50 apiece.
- Revenue up 14.2 percent to Rs 2,228.1 crore.
- Net profit up 69 percent to Rs 258.7 crore.
- Ebitda up 36.1 percent at Rs 432.4 crore.
- Margin stood at 19.4 percent versus 16.3 percent.
Bosch India Jumps On Buyback Plan
The auto parts maker gained for the fourth straight session after the company said it's considering buying back shares. The stock rose 3.6 percent to Rs 20,455.25 apiece.
The board is scheduled to meet on Nov. 5 to consider the buyback proposal, according to an exchange filing.
The stock's trading volume is almost six times the 20-day average, Bloomberg data showed.
Varun Beverages Falls On Heavy Volumes
Shares of the Pepsi bottler fell as much as 4.4 percent to Rs 780 apiece.
The trading volume is nearly six times the 30-day average, Bloomberg data showed. The stock gained 20 percent so far this year compared to a 2.5 percent advance in the BSE Sensex.
Shriram EPC Jumps After Bagging New Order
Shares of the infrastructure construction company rose as much as 19.5 percent to Rs 12.90 apiece.
Shriram EPC bagged an order worth Rs 236 crore from the drinking water and sanitization department of the Jharkhand government, according to an exchange notification.
The stock declined 60.9 percent so far this year compared to a 2.3 percent gain in the BSE Sensex, Bloomberg data showed.
Oil Retailers Gain After Jet Fuel Price Hike
Shares of the oil marketing companies rose as Indian Oil hiked prices of air turbine fuel by 5.2 percent. Indian Oil raised ATF prices by Rs 3,838 per kilolitre on an average.
- Indian Oil Corporation rose as much as 3.3 percent to Rs 142.95 a share.
- Bharat Petroleum rose 2.6 percent to Rs 281.30 apiece.
- Hindustan Petroleum rose 3.7 percent to Rs 232.50 apiece.
- IOCL raises jet fuel prices by 5.2% compared to last prices.
November 1, 2018
- IOCL raises ATF prices by on an average Rs 3,838/Kl.
- ATF price were cut by on average Rs 2,000/Kl due to excise duty cut.
Read: https://t.co/qCtvgFCE3i pic.twitter.com/AoxWZMgX9S
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