After hitting record highs last week, the market witnessed consolidation and lost 1 percent on the back of weak global cues.
After hitting record highs, the market witnessed consolidation and lost 1 percent on the back of weak global cues in the week gone by. The Sensex breached 51,000 levels and the Nifty50 also slipped below 15,000 after hitting highs of 52,516.76 and 15,431.75, respectively. during the week.
Indian Ovreseas Bank | The share price surged over 59 percent during the week. Shares of Indian Overseas Bank, Central Bank of India, Bank of Maharashtra and Bank of India continued to rally for the third straight session on February 18 and were locked in upper circuit on reports of privatisation. The government has shortlisted four mid-sized state-run banks for privatisation, under a new push to sell state assets and shore up government revenues, news reports said quoting government sources.
IDFC First Bank | The share price gained 20 percent after the private sector lender said its board okayed raising up to Rs 3,000 crore through various means. The lender said there are significant opportunities for growth based on the strong capabilities it has built as well as the strong outlook for economic recovery in India. The board approved raising of funds “up to Rs 3,000 crore by way of issuance of securities, through one or more permissible mode(s), including but not limited to a private placement, qualified institutions placement, follow-on public offering or a combination thereof”, IDFC First Bank said in a regulatory filing.
Sundram Fasteners | The scrip added 14 percent during the week. The company reported a net profit of Rs 124.24 crore, up 20 percent for the quarter ended December 31. Net profit was Rs 103.06 crore in the same period a year ago. The third quarter of last year had one-time reversal of deferred tax provision amounting to Rs 42 crore. Total income rose by 35 percent to Rs 945.41 crore from Rs 701.22 crore. Brokerage firm Sharekhan has maintained a ‘buy’ rating with a revised target of Rs 700, on a strong traction in business outlook and an upgrade in earnings estimates.
Jubilant Life Sciences | The share price was down over 13 percent in the week gone by. The stock renamed as Jubilant Pharmova was upgraded by Fitch with a stable outlook. It affirmed its senior unsecured rating and rating on senior unsecured notes at BB. The outlook is stable. The IDR has been removed from rating watch positive, on which it was placed on November 12, 2019.
Amara Raja Batteries | The stock shed over 11 percent after the company reported disappointing operating performance with earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declining 200 basis points QoQ and 160 bps YoY to 15.6 percent in the December quarter due to higher staff cost. The company has also announced a capex of Rs 500 crore towards setting up a lead acid recycling plant of 1 lakh tonnes per annum capacity ( Rs 280 crore) and a captive 280 MW solar power plant (Rs 220 crore). ICICI Direct has a ‘sell’ recommendation on the stock with a target price of Rs 873.
Eicher Motors | The stock price was down 7 percent. The two-wheeler and commercial vehicle maker reported lower-than-expected earnings for the quarter ended December 2020. Consolidated profit rose 6.8 percent year-on-year (YoY) to Rs 532.6 crore in Q3 FY21 supported by Royal Enfield segment but hit by higher input cost. Consolidated revenue from operations grew by 19.3 percent YoY to Rs 2,828.3 crore in Q3 FY21, driven by higher volumes. Global research firm CLSA has maintained a ‘sell’ call on the stock with the target at Rs 2,450 per share.
Vodafone Idea | The scrip shed 13 percent after a Trai report said the telecom firm lost 5.7 million customers in December, as the country’s total telecom subscriber base dropped to 1,173 million from 1,175 million in the previous month. The drop in Vodafone’s customer base in December was the highest since March 2020. Research firm ICICI direct has maintained ‘sell’ with a target of Rs 6. “We will monitor triggers like fund raise, tariff hike, before changing our stance,” it said.
Alembic Pharma | The stock slipped over 6 percent after USFDA found violations related to quality control, cleanliness and size of equipment and inadequate sample collection procedures at Alembic Pharmaceuticals’ new sterile injectables unit in Karkhadi, Gujarat. The US drug regulator had issued a ‘Form 483’ to the facility with five observations.
Bharat Forge | The share price was down over 5 percent during the week. The company posted a net loss of Rs 210.4 crore for the quarter ended December 2020. The company’s profit in the corresponding period stood at Rs 40.4 crore. The company had reported an exceptional loss of Rs 299.4 crore for the December quarter 2020, against a loss of Rs 27.6 crore in the year-ago period. Kotak Institutional Equities has a ‘sell’ rating for the stock with the target at Rs 375 a share.
Trent | The stock gained over 15 percent during the week. The company’s consolidated net profit jumped 30.2 percent to Rs 64.03 crore on a 13.6 percent rise in net sales at Rs 853.63 crore in Q3 December 2020 over Q3 December 2019. ICICI Securities has a ‘buy’ call on Trent with the target price of Rs 770.
Sandip Das
