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The week gone by has given investors many events to cheer for with the Sensex hitting record highs and the Nifty reclaiming the 11,000 mark. Despite fears of a US-China trade war which lingers and thus forcing investors to take a cautious approach towards the equity market, individual stocks did not disappoint to make a mark.
With the Indian rupee depreciating to record low of 69.09 per dollar on June 28, 2018, a fall of 8 percent this year, defensive sectors like IT and pharma
managed to show some traction in the week gone by.
Let us take a look as to which stocks have reacted the most last week and what made them move:
The market valuation of Reliance Industries on July 13, 2018 briefly surged past Rs 7 lakh crore mark. RIL's market capitalisation (m-cap) rose to Rs 7,01,404 crore (over $102 billion) in early trade on BSE.
At the close of trade that day, however, the m-cap slipped below the Rs 7 lakh crore-mark and stood at Rs 6,94,944.56 crore. Reliance Industries the previous day crossed the $100-billion market capitalisation mark for the first time in the last 10 years.
The company announced aggressive business plan at its annual general meeting (AGM) held last week. The stock has been on an uptrend ever since and has gained nearly 14 percent since July 5.
While having a Buy call on the stock with a target price of Rs 1,340 per share (which implies 29 percent potential upside), global brokerage house Goldman Sachs said it expects Q1 EBITDA to grow 45 percent YoY (up 2 percent QoQ).
It said petchem growth will offset slight decline in the refining margin. "Refining margin may sequentially decline but is set for expansion in coming quarters."
Reliance Industries ended at Rs 1,096.75, up Rs 14.55, or 1.34 percent, hiiting fresh record high yet gain while for the week the stock impressed with 12.31 percent gain.
Share price of Tata Consultancy Services rallied 5.59 percent to end at record closing high of Rs 1,979.90 on July 11, 2018 as the company kicked off June quarter earnings season on a strong note with the profit growing 6.3 percent and revenue 6.8 percent sequentially, backed by recovery in banking vertical and maintaining momentum in industry verticals.
It reported profit at Rs 7,340 crore for the quarter against Rs 6,904 crore in previous quarter and in same period revenue from operations increased to Rs 34,261 crore from to Rs 32,075 crore. Dollar revenue in Q1 grew by 1.6 percent quarter-on-quarter to USD 5,051 million while constant currency revenue growth stood at 4.1 percent QoQ, the highest in last 15 quarters.
Seven brokerage houses out of 12 which are mixed in their ratings expect the stock to return up to 17 percent while rest of five feels the share price can correct up to 23 percent.
Tata Consultancy Services closed at Rs 1,981.25, up Rs 10.25, or 0.52 percent. The share touched its 52-week high Rs 1,998.00 on July 11, 2018 and for the week the stock gained 3.56 percent.
IT major HCL Tech was also in news last week as the company accounced Rs 4,000 crore buyback at Rs 1,100 per share. The buyback is for up to 3.63 crore fully paid up equity shares representing 2.61 percent of the total shares of the company.
Credit Suisse has maintained outperform rating on the stock with a target price at Rs 1,175 (implying 16.88 percent potential upside) adding that it has been one of its preferred picks in the sector, citing combination of growth, stable margin and attractive return on equity. On the other hand, Morgan Stanley has also maintained its overweight rating on the stock with a target price at Rs 1,060, implying 5.4 percent potential upside.
"Buyback will largely be neutral to FY19EPS and is in-line with company's policy of returning 50 percent of net income to shareholders," it said.
HCL Technologies ended at Rs 984.85 on Friday, down Rs 20.45, or 2.03 percent. However, for the week the stock ended higher by 4.17 percent.
IndusInd Bank's net profit grew 23 percent to Rs 1,035.7 crore in the first quarter of financial year 2018-19, exceeding analyst expectations. Net profit in the April to June quarter a year ago in FY17-18 stood at Rs 836.5 crore. For Q1 FY18-19, a Reuters poll had projected net profit to grow 21 percent at Rs 1,014.7 crore.
Net interest income (NII), difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased more than 19 percent to Rs 2,122.4 crore as against Rs 1,774 crore a year ago.
CLSA has a buy with target raised to Rs 2,350 and expects 25 percent CAGR in profit over FY18-21. Jefferies has a hold rating with target raised to Rs 1,815 but has changed EPS estimates by -1.8/1.3/-0.6 percent for FY19/FY20/FY21 and expects 25.4 percent EPS CAGR over FY18-21.
IndusInd Bank closed at Rs 1,923.45, down Rs 11.95, or 0.62 percent and for the week the stock ended lower by 1.81 percent.
Infosys on Friday, post market hours reported a mixed bag of first quarter numbers with profit missing the analyst estimates, but revenue in line with estimates. Net profit for the June quarter fell 2.1 percent to Rs 3,612 crore compared to Rs 3,690 crore in the previous quarter. The previous quarter's profit included positive impact of Rs 1,432 crore on account of conclusion of an advance pricing agreement with the US revenue service.
Revenue in Infosys' largest business — financial services and insurance — de-grew 1.5 percent from growth of 1.1 percent in the previous quarter. The vertical accounted for 31.8 percent of the company’s revenue during the first quarter. The board has approved a one bonus share for every share held. It announced a bonus issue in the ratio of 1:1. The issue was announced to mark the company’s 25th anniversary since its listing as well as to increase liquidity of shares.
“The Board of Directors has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depository Share (ADS) for every ADS held, as on a record date to be determined,” it said in a notification to exchanges.
Infosys closed at Rs 1,309.10 on July 13, 2018, up Rs 14.50, or 1.12 percent and for the week the stock could only manage a gain of 1.92 percent.
IDBI Bank on Thursday received notice from a section of officers that they proposed to go on strike from July 16 to July 21, 2018.
The six-day strike is in protest against the proposed acquisition of the state-owned lender by insurance behemoth LIC and wage-related issues, among others.
Wage revision for IDBI Bank's employees is pending since November 2012. They had threatened to go on strike last year but later it was called off following an assurance from the management.
Meanwhile, source said that after getting a go-ahead from the insurance regulator Irdai, LIC is preparing itself to complete the 51 percent acquisition of debt- ridden IDBI Bank by the end of September.
At present, Life Insurance Corporation (LIC) of India is doing the due diligence of IDBI Bank, its assets, debt position and fixed assets.
IDBI Bank ended at Rs 57.30 on Friday, up Re 1, or 1.78 percent while for the week the stock had a handsome rally of 18.88 percent.
Fortis Healthcare & Fortis Malar Hospitals
Shares of Fortis Healthcare and Fortis Malar Hospitals added 4-11 percent in the opening trade on Friday as Fortis board approved the offer of IHH Healthcare Berhad.
The board approved the offer of IHH Healthcare Berhad for an equity infusion of Rs 4,000 crore at a price of Rs 170 per equity share into the company by Northern TK Venture Pte, Singapore, a wholly owned subsidiary of IHH Healthcare Berhad, Malaysia through a preferential allotment subject to approval of the shareholders.
The transaction is expected to be completed within seven business days of receipt of shareholder’s and CCI’s approval which will be obtained concurrently with shareholder’s approval and can take approximately 60-75 days. Fortis Health unanimously approved a binding investment proposal from IHH Healthcare to
invest Rs 4,000 crore by way of preferential allotment.
The allotment will take place at Rs 170 a share, which is at a 20 percent premium to Fortis' current market price. Shares of Fortis ended Thursday at Rs 142.15 on BSE.
Fortis Healthcare ended at Rs 147.80 on Friday, up Rs 5.65, or 3.97 percent. For the week the stock clocked a gain of 6.91 percent.
Fortis Malar Hospitals ended at Rs 55.45, up Rs 4.10, or 7.98 percent while it added gain of 10.24 percent for the week gone by.
Shares of Dish TV India added over 1 percent in the opening trade on Tuesday as company reported profit for the quarter ended June 2018 (Q1FY19). The company's Q1 consolidated net profit was at Rs 27.87 crore against loss of Rs 11.67 crore in the same quarter last fiscal.
Kotak Institutional Equities has maintained add rating on Dish TV and target price raised to Rs 90 from Rs 84 per share. The company has reported a well- rounded quarter, driven by ARPU growth, while merger synergy will further boost earnings in coming quarters. The research house raised FY19-21 EBITDA estimates by 3-4 percent.
Nomura has maintained neutral call on Dish TV with a target of Rs 80 per share. The company's revenue and EBITDA are above estimate and will watch out for sustainability of ARPU, said Nomura.
Dish TV India ended at Rs 73.40 on Friday, up Re 0.60, or 0.82 percent. For the week however, the stock added a gain of only 0.69 percent because of the after effect of JioGigaFiber launch by Reliance Industries.
Share price of Shilpa Medicare rose more than 12 percent on Wednesday as company received EIR from USFDA. The company has received of EIR (establishment inspection report) from USFDA to our both API manufacturing facilities located at Raichur, Karnataka. This inspection was carried out between 16 to 19 January, 2018.
Shilpa Medicare ended at Rs 402.80 on Friday, down Rs 14.05, or 3.37 percent. For the week, the stock registered a gain of 5.39 percent.
Shares of Uttam Galva Steel gained nearly 5 percent on Tuesday despite company's net loss widened in Q1FY19. The company's net loss widened to Rs 366.19 crore in the quarter ended June 30. The company had reported a net loss of Rs 192.53 crore during the April-June period of the preceding fiscal, it said in a regulatory filing.
The firm's total income in the June quarter fell to Rs 93.16 crore, from Rs 949.80 crore in the year-ago quarter. Total expenses of the company during the period under review stood at Rs 459.35 crore as against Rs 1,142.33 crore in the same period last fiscal.
Uttam Galva Steel closed at Rs 9.18 on Friday, down Re 0.01, or 0.11 percent. Despite the stock hitting new 52-week low of Rs 7.75 per share on the NSE on July 9, 2018, the scrip managed to gain 14.75 percent for the week.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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