Aurobindo Pharma, Bharti Airtel, HDFC and HT Media: India Equity Preview
The Bombay Stock Exchange Sensitive Index, or Sensex, rose 1 percent to 17,833.54. The S&P CNX Nifty Index on the National Stock Exchange advanced 1.1 percent to 5,352.45. The BSE 200 Index increased 0.9 percent to 2,268.77. The SGX S&P CNX Nifty Index futures for July delivery increased 0.3 to 5,369 at 10:39 a.m. in Singapore.
Ashok Leyland Ltd. (AL IN): The maker of buses and trucks was rated “buy” in new coverage by Sandeep Pandya, an analyst at Goldman Sachs Group Inc., who said increasing capacity and demand will drive volume growth and returns. The analyst has a share-price estimate of 82 rupees. The stock rose 0.7 percent to 69.55 rupees.
Aurobindo Pharma Ltd. (ARBP IN): The drug company was rated “outperform” by analysts at First Global, which re-initiated coverage of the stock on July 9. The shares climbed 2.4 percent to 941.65 rupees.
Bank of Baroda (BOB IN): The state-owned lender was rated “accumulate” by Amandeep Goraya, an analyst at SKP Securities Ltd., in new coverage on July 9. The shares slid 0.4 percent to 716.45 rupees.
Bharti Airtel Ltd. (BHARTI IN): India’s largest wireless carrier plans to invest $150 million in Kenya and open a call center in the East African country, the African unit’s Chief Executive Officer Manoj Kohli said in the capital Nairobi on July 9. The shares advanced 9.9 percent to 308.65 rupees.
Central Bank of India (CBOI IN): The lender was rated “buy” by Vijeta Tulsiyan, an analyst at Mata Securities, in new coverage of the stock on July 9. The share-price estimate is 184 rupees. The stock lost 0.6 percent to 143.75 rupees.
Engineers India Ltd. (ENGR IN): The state-run designer of oil refineries and chemical plants plans to start selling shares on July 27, the Press Trust of India reported, citing a person it didn’t identify. The follow-on public offer of shares will close on July 29, the news agency said. Phone calls made to Chairman Ashok Kumar Purwaha’s office weren’t immediately returned. The shares fell 1.1 percent to 348.75 rupees.
Housing Development Finance Corp. (HDFC IN): India’s third- largest lender by market value acquired 4.03 million shares of Credila Financial Services Pvt. for 40.3 million rupees in cash, raising its stake in the company to 51 percent, according to a statement July 9 on the Bombay Stock Exchange. The shares climbed 0.8 percent to 2,966.4 rupees.
HT Media Ltd. (HTML IN): The owner of Hindustan Times newspaper was rated “buy” in new coverage by Bijal Shah, an analyst at IIFL, which initiated coverage of the shares on July 9. The one-year share-price estimate is 180 rupees. The shares gained 1.8 percent to 154.6 rupees.
Idea Cellular Ltd. (IDEA IN): The telecom company was raised to “buy” from “sell” by Goldman Sachs Group Inc. analysts led by Sachin Salgaonkar, who cited continued “strong” revenue and earnings growth, the end of an overhang from high-speed wireless expenses and the relative performance and valuation of the stock. The analysts raised their share- price estimate by 43 percent to 70 rupees. Idea surged 13 percent to 66.7 rupees.
Piramal Healthcare Ltd. (PIHC IN): The health care provider and drugmaker was cut to “neutral” from “buy” by Sonal Gupta, an analyst at UBS AG, following the announcement of the sale of its Indian domestic pharmaceutical business to Abbott Laboratories. UBS raised its share-price estimate to 565 rupees from 515 rupees. The stock rose 2.5 percent to 512.05 rupees.
Reliance Capital Ltd. (RCAPT IN): Reliance Life Insurance Co., a unit of Reliance Capital, plans an initial public offering within two weeks of getting approval from India’s regulator and may sell as much as 26 percent of the company to a strategic investor, the Hindu BusinessLine reported, citing Malay Ghosh, president and executive director. Reliance Capital, controlled by Anil Dhirubhai Ambani, was little changed at 760.4 rupees.
Reliance Industries Ltd. (RIL IN): The operator of India’s biggest gas area and the world’s largest refining complex may buy a polyester unit of Bombay Dyeing & Manufacturing Co. (BD IN), the Economic Times reported on Saturday, citing unidentified sources. Reliance Industries shares were little changed at 1,057.65 rupees, while Bombay Dyeing shares fell 0.8 percent to 501.6 rupees.
Satyam Computer Services Ltd. (SCS IN): B. Ramalinga Raju, the former chairman of the software developer at the center of India’s biggest accounting probe, caused a loss of 141.62 billion rupees ($3 billion) to lenders and investors, the Indian Express reported, citing J.L. Negi, a Central Bureau of Investigation official. Raju and his family made “illegal gains” of 27.43 billion rupees, the news report said. The shares fell 0.6 percent to 91 rupees.
United Spirits Ltd. (UNSP IN): The nation’s biggest liquor maker was rated “overweight” in new coverage by Morgan Stanley analysts led by Hozefa Topiwalla, who cited the value of the company’s domestic business. The analysts have a share-price estimate of 1,486 rupees. The stock rose 0.2 percent to 1,291.6 rupees.