Tag: Stock market

Sun Pharma shares rise 4% on strong Q3 results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sun Pharma shares rose over 4 percent after the pharma major posted a nearly 300 percent jump in its consolidated net profit for the December 2018 quarter. Sun Pharma shares rose as much as 4.04 percent to Rs 454.40 per share in the opening trade on the BSE. At 9.25 AM, the stock was trading 2.95 percent up at Rs 449.65, while the Sensex was up 0.44 percent at 36,311.04 points.

Sun Pharmaceutical Industries Ltd on Tuesday reported a 286.1 percent year-on-year (YoY) jump in its consolidated net profit at Rs 1,241.8 crore for the December 2018 quarter, compared to a net profit of Rs 321 crore a year ago. CNBC-TV18 Polls had predicted a profit of Rs 1,064 crore for the quarter under review.

Motilal Oswal said it has cut FY19/20/21 EPS estimates by 4.5%/5.4%/4% to factor in subdued growth in the domestic formulation business and the delayed pick-up in the US business. “We remain positive on the company’s business model, which focuses on building a specialty portfolio in the regulated market and increasing traction in US generics, among others. We maintain Buy on the stock. Resolution of corporate governance issues is a key monitorable.” The brokerage maintained a “buy” rating on the stock, with the revised TP of Rs 540.

Jefferies said it is positive on Sun as it expects acyclical recovery in business and valuations are supportive. “While mgmt. has made steps to address investor concerns, delays in disclosures and clarity raise concerns and we think the overhang could continue in the near term,” it added. The brokerage rated the stock as “buy” and has the price target of Rs 535 per share

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Nifty ends below 10,900, Sensex sheds 150 points, sharp sell-off in midcaps, pharma, auto, metals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

These four stocks had their ‘Black Friday’ moments on Dalal Street over the past 4 weeks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Every Friday for the last four weeks turned out to be a ‘Black Friday’ for one stock. After Sun Pharma, Zee Entertainment and Vedanta, Tata Motors today became the latest stock to witness heavy losses on a Friday.

Here are the ‘Black Fridays’ for each of these four stocks: 

Friday, January 18: Sun Pharmaceutical Industries Ltd

Sun Pharma shares fell 8.4 percent to Rs 390.75 per share, eroding its market cap of Rs 13,000 crore, following a media report that a whistle-blower complaint to Sebi alleged corporate governance irregularities at the company. The company challenged the report and asked for a Sebi probe into the role of some media houses and other stakeholders. Intraday, the stock slumped as much as 13.21 percent to Rs 370.20 per share.

Friday, January 25: Zee Entertainment Ltd

Shares of Zee Entertainment plunged 26.6 percent to Rs 318.40 per share, erasing Rs 14,000 crore in the company’s market cap. A news report said that Zee promoter Essel Group’s name may appear in a probe by the SFIO into Nityank lnfrapower and Multiventures Ltd for suspicious demonetisation deposits. Intraday, the stock dived as much as 33.54 percent to Rs 288.30 per share.

Friday, February 1; Vedanta Ltd

Vedanta shares declined 17.8 percent to Rs 162.15 per share and wiped Rs 8,000 crore in the market cap, after the company disclosed that it will make an investment of $500 million to purchase an economic interest in a structured investment in Anglo American Plc from its parent, Volcan Investments Ltd. Intraday, the Vedanta stock fell as much as 19.8 percent to Rs 158.15 per share.

Friday, February 8: Tata Motors Ltd

Tata Motors shares fell as much as 29.4 percent to Rs 129 per share, erasing Rs 10,000 crore in the market cap, after the company reported a consolidated net loss of Rs 26,961 crore for the December 2018 quarter on Jaguar Land Rover (JLR) asset impairment. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review. At 12.58 PM, the stock traded 18.43 percent down at Rs 149.15 per share on the NSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NBFCs sold Rs 400 crore of Anil Ambani’s Reliance Group shares

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Several non-banking financial companies, including L&T Finance and certain entities of Edelweiss Group, have invoked pledge of listed shares of Anil Ambani-led Reliance group and sold shares worth approximately Rs 400 crore in the open market from February 4 to February 7.

Calling the move an “illegal, motivated and wholly unjustified”, Anil Ambani’s company said the sales have resulted into an erosion of Rs 13,000 crore, an unprecedented nearly 55%, in market capitalisation of Reliance Group over last four days.

Reliance Group said these open market sales, without any attempts at orderly market disposal through a bid or structured process, is illegal on several counts, including amongst others, price manipulation, insider trading, front running and market abuse. The move is also in violation of various regulatory provisions, the press release said.

“Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd. (and their various subsidiaries) are performing satisfactorily on all operating parameters, and there is no change whatsoever on any aspect as compared to the position prevailing prior to these sales,” the company stated.

Refuting the allegations, L&T Finance said it had granted loans against pledge of shares to Reliance ADAG Group companies.

“As per loan and pledge agreements, borrower did not cure various events of defaults including providing margin for shortfall in the stipulated security cover. Despite various notices in the past few months, events of defaults continued. Consequently, L&T Finance enforced its rights of invocation and sold pledged shares to the extent of its outstanding dues by following the due process of contract and law,” it said in a statement.

While noting that the allegations as “unfounded, baseless and false”, Edelweiss Group said it had granted credit facilities against pledge of shares to Reliance ADAG Group.

Edelweiss Group said it has reached out numerous times to Reliance ADAG Group to address concerns on shortfall in margins and resultant fall in collateral valuation.

“Despite our best efforts, not only did Reliance ADAG Group fail to address any of the concerns raised by Edelweiss Group, but also continued to breach contractual obligations,” it said in a separate statement.

On February 4, there was a sharp drop in the prices of Reliance ADAG group shares, which led to further erosion in the collateral value, Edelweiss said, adding that it also gave due opportunity for remediation.

“Since there was no response from Reliance ADAG Group, it necessitated liquidation of the collateral as per the agreed contractual terms. Throughout this process, Edelweiss has acted in a lawful and responsible manner,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors shares: Here’s what analysts say

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After Tata Motors’ disappointing December-quarter results, analysts slashed the target share price for the automotive major and cut earnings forecasts. The company reported a third-quarter consolidated net loss of Rs 26,961 crore, compared to a net profit of Rs 1,215 crore in the same period last year. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review. The auto major said profit was impacted by an exceptional item of asset impairment in its British arm JLR of Rs 27,838 crore.

Tata Motors shares fell as much as slumped as much as 29.4 percent to Rs 129 per share on the NSE, and fell 22.41 percent to Rs 141.90 per share on the BSE.

Tata Motors Q3: HDFC Sec’s Dipen Sheth on how should you trade the stock after results

Here’s what the brokerages say:

Deutsche Bank

The brokerage held the rating of the company, but cut the target share price of the company to Rs 175 from the earlier Rs 195 apiece. Deutsche Bank reasoned that the operating environment of the company is most likely to “remain challenged” in the near time, adding that the only positive aspect in the results was the performance of the company’s Indian business. The brokerage house cut the FY19 earnings per share (EPS) forecast by 38 percent.

Axis Capital 

Axis Capital has downgraded the stock to ‘Hold’ and cut the target price to Rs 187 per share from Rs 217 per share. “We would get constructive on JLR only when volumes stabilize in China and Brexit concerns are behind us,” it said.

CLSA 

The brokerage retained its ‘Sell’ call and kept the target share price at Rs 150 per share. CLSA said the demand outlook worsened in the recent quarters for the company in both India and China and said the stock will remain weak taking into consideration the insufficient near-term product triggers. The brokerage cut the earnings per share (EPS) estimate for FY19-21 by 2-66 percent.

Motilal Oswal

The brokerage downgraded the stock to ‘Neutral’, with a target price of Rs 166. “Further, uncertainties surrounding Brexit as well as the muted outlook for global luxury car industry coupled with faster than expected adoption of EVs in luxury segment poses threat to our FY20-21 estimates,” it said in a note. It has cut FY20/21 consolidated EPS estimate by 21 percent/13 percent and, almost doubled net debt estimate.

Phillip Capital

The brokerage maintained the stock at ‘Buy’, with a target price of Rs 200 apiece from the earlier Rs 290 apiece. “We sharply cut our estimates post disappointing Q3 results and maintain BUY as we see steps by the company bearing fruit (although late) and favourable valuations. Stock performance would certainly need favourable volume momentum,” it said in a note.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors shares sink 29 percent after shocking Q3 results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors shares fell over 29 percent on Friday after the company reported a consolidated net loss of Rs 26,961 crore for the December 2018 quarter on Jaguar Land Rover (JLR) asset impairment. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review.

Tata Motors shares fell as much as 22.41 percent to Rs 141.90 per share on the BSE in the opening trade. On the NSE, the stock slumped 29.4 percent to Rs 129 per share.

Shares of the Tata Motors settled at Rs 151.30 on the BSE. down 17.28 percent from its previous close. On NSE, the shares settled at Rs 150.15, down 17.88 percent.

The auto major said its Q3 profit was impacted by an exceptional item of asset impairment in its British arm JLR of Rs 27,838 crore. The consolidated revenue of the company stood at Rs 77,001 crore, up by five percent from Rs 74,337.7 crore in the year-ago period, Tata Motors said in a regulatory filing.

Motilal Oswal cut FY20/21 consolidated EPS estimate by 21%/13%, and, consequently, almost doubled net debt estimate. “Further, uncertainties surrounding Brexit as well as muted outlook for global luxury car industry coupled with faster than expected adoption of EVs in luxury segment poses threat to our FY20-21 estimates,” it said in a note. The brokerage downgraded the stock to ‘Neutral’, with a target price of Rs 166.

Axis Capital downgraded the stock to ‘Hold’ and lowered the TP to Rs 187 per share from Rs 217 per share. “We would get constructive on JLR only when volumes stabilize in China and Brexit concerns are behind us,” it said.

On a standalone basis, Tata Motors posted PAT of Rs 617.62 crore as against Rs 211.59 crore in the year-ago quarter. Total standalone income rose to Rs 16,477.07 crore as against Rs 16,186.15 crore in the same period of previous fiscal.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Chalet Hotels shares rise 5 percent on stock market debut

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Chalet Hotels rose 5 percent on its stock market debut after its Rs 1,641 crore IPO was subscribed 1.57 times last week. The stock opened at Rs 294 per share on NSE, up 5 percent from its issue prices of Rs 280 per share. On the BSE, Chalet Hotels shares listed at Rs 291 per share, up 3.9 percent from its issue price. At 10.33 AM, the stock traded 2.04 percent up at Rs 285.70 per share on the BSE, and 2.30 percent up at Rs 286.45 per share on the NSE.

The Chalet Hotels IPO opened for the subscription from January 28 to January 31. It had a price range of Rs 275-Rs 280. The K Raheja Corp-promoted company plans to use part of the proceeds from its Rs 1,640-crore IPO to pare debt. The balance amount from IPO would be used for general corporate purpose.

Chalet Hotels, the hospitality unit of K Raheja group, has about 2,328 rooms, managed by Marriott, spread across five properties in Mumbai, Bengaluru and Hyderabad. The properties serve mainly in the premium and above segments.

JM Financial Limited, Axis Capital Limited and Morgan Stanley India managed the offer.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Big bull Rakesh Jhunjhunwala says time to keep some money off the street

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Largest individual investor in the domestic equities market Rakesh Jhunjunwala has admitted that his risk appetite is going down due to age and wants to set aside up to 10 percent of his wealth in saving products soon.

Having suffered losses on his startup bets both in 2000 and 2007, Jhunjhunwala said he does not see any value in them both from investment or business perspectives as most of them are just meet-toos lacking any real uniqueness.

Stating that he is keeping away from investing in startups as it is difficult to understand their business like the one presented by cab aggregator Uber, he said, “though many of them talk about innovation, there is little uniqueness
in them and many of them are like ‘me-too’ companies.”

The only savings the big bull has now is a fixed deposit of Rs 50,000 in a bank and Rs 1 crore in public provident fund, while rest of huge investments are in
equities, he said.

“I must put 5-10 percent of my money into (savings products)… age is catching up, and I should limit my risk appetite,” Jhunjhunwala told the Tiecon summit here Wednesday.

The ace investor is reported to have a networth of over $2.7 billion or nearly Rs 19,000 crore. Jhunjhunwala said he will also leave 5 percent of his fortune in fixed deposits for his two kids, which cannot be touched by them but can ensure easy survival even if they blow the rest of the fortune in gambling in Macau.

He loves gambling and added the time is not far when all the states in our country will legalise the same as Goa.

Admitting that his short-term plays made him who he is, the outspoken investor compared share trading to a mistress and longer-term investing as a wife, and recommended investors to keep both happy.

Terming investing as a serious business, he advised non-professional investors like the salaried class to invest through the mutual funds route and keep aside not more than 10 percent for self-investing if excitement is what they are looking for.

On the bloodbath in the midcaps last year, in which he lost heavily, Jhunjhunwala said investors should blame themselves for the mistake of investing at such high valuations.

He, however, quickly added that there was no fundamental issue with any of those stocks which bore the brunt of the market mayhem and the problem for investors was only high valuations.

The passion for investing and the eat-drink-sleep- dream stock markets routine is the secret behind his fortune, he said, admitting that he cannot be anything else but a stock market player.

Blaming the IL&FS crisis on multiple issues including lax regulation, he expressed satisfaction with the corporate governance practices in companies saying those are 5,000 times better than the olden days.

The investor said he wants the BJP to return to power after the summer elections because of the change in attitudes brought about by Prime Minister Narendra Modi, and also supported its issues like uniform civil code, Ram temple or buying property in Jammu & Kashmir.

Jhunjhunwala said he unwinds by having whiskey twice a week, down from seven a week a few years ago, and also does yoga sometimes.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sensex, Nifty extend gains; ZEEL, Tech Mahindra, Tata Steel top gainers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian shares extended gains on Wednesday afternoon, rising for a fifth straight session, ahead of the outcome of the three-day Reserve Bank of India meeting tomorrow. Analysts expect the RBI to cute the repo rate by 25 basis points and change its monetary policy stance in the first meeting under the new RBI governor Shaktikanta Das.

At 12.16 pm, the BSE Sensex traded 247 points higher at 36,864, while the Nifty 50 was holding above 11,000 mark, trading almost 80 points up at 11,014.

Reliance Industries, ICICI Bank, Tata Consultancy Services, Infosys, HDFC, ITC, Bajaj Finance were among the major contributors to Sensex gains. The rally, however, remained lopsided and was driven largely by buying in select bluechips.

Tech Mahindra shares jumped more than 6 percent to a life-time high of Rs 800 intraday as the country’s fifth largest software services exporter posted strong third quarter earnings, beating analyst expectations. TechM reported an almost 28 percent jump in net profit at Rs 1,203 crore, driven by automation measures on Tuesday.

Zee Entertainment shares also surged nearly 7 percent on value buying. The Essel group entertainment stock was the top gainer on the NSE.

The bearish trend in broader market indexes continued with the Nifty MidCap index down 0.21 percent. The BSE MidCap also fell 0.32 percent. Nifty Media was leading the 32 advancing sectors and rose 3.5 percent. IT and energy sectors also traded in green.

Nifty Realty dipped well over half a percent, leading the 11 falling sectors. BSE Consumer Durables, Telecom and Nifty Pharma were other major losers.

Apart from ZEEL and TechM, shares of Grasim, HPCL, Bajaj Finance, Tata Steel, ICICI Bank, NTPC and Bajaj Auto rose between 1 and 3 percent.

IndusInd Bank, Bharti Airtel, Axis Bank, Vedanta, Dr Reddy’s Labs, Adani Ports and Titan declined up to 2 percent.

Meanwhile, the rupee traded nearly unchanged, trading at 71.56 per US dollar. The home currency had closed at 71.56 against the greenback on Tuesday.

Asian markets lacked major triggers barring US President Donald Trump’s State of the Union address ahead of another round of the US-China trade talks in Beijing next week.

Catch all the action and updates in our Market Live blog.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow