The Indian stock market is trading deep in the red after surge in virus cases dimming hopes of a quick recovery. Sensex is down 480.03 points or 1.36 percent at 34,691.24, and the Nifty shed 146 points or 1.41 percent at 10,237.
Among the sector, the metal index fell 3 percent dragged by Coal India and Hindustan Copper which were down over 4 percent each followed by Hindalco Industries, NALCO, JSW Steel, Tata Steel, SAIL, Vedanta and Hindustan Zinc among others.
Coal India reported net sales at Rs 329.00 crore in March 2020 down 4.9 percent from Rs. 345.94 crore in March 2019 while quarterly net profit stood at Rs 10,631.65 crore in March 2020 up 146.35 percent from Rs. 4,315.66 crore in March 2019.
Jyoti Roy, DVP Equity Strategist, Angel Broking is of the view that while top line numbers were in line with street estimates for Coal India, net profit came in below street estimates largely on account of lower margins.
Research and broking firm Kotak Institutional Equities has maintained a sell brating on NALCO with target of Rs 24 per share. It is of the view that working capital resulted in 43 percent YoY decline in FY20 cash balance adding that high dividends no longer appear sustainable.
Kotak feels that NALCO's operating performance and balancesheet will further deteriorate in FY21 and has cut EBITDA estimates by 42 percent for FY21 and 7 percent for FY22.
S&P BSE Metal also shed almost 3 percent with NMDC down over 3 percent. The company reported a 76 percent decline in net profit during Q4FY20 to Rs 351 crore. It recorded a 33 percent dip in Profit Before Tax (PBT) of Rs 1,482 crore during the quarter on lower production and sales.