Ashok Leyland, DLF, ONGC, Hero Honda, Bata, Petronet: India Equity Preview
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 34.63, or 0.2 percent, to 17,992.00. The S&P CNX Nifty Index on the National Stock Exchange rose 0.2 percent to 5,408.90. The BSE 200 Index increased 0.2 percent to 2,292.61. The SGX S&P CNX Nifty Index futures for August delivery dropped 0.5 to 5,395.0 at 10:58 a.m. in Singapore.
Ashok Leyland Ltd. (AL IN): India’s second biggest truckmaker will acquire a 26 percent stake in Lanacashire, U.K.- based maker of single and double-deck buses Optare Plc for about $7.5 million, according to a statement on the National Stock Exchange. The stock fell 0.8 percent to 71.95 rupees.
Bata India Ltd. (BATA IN): The shoe manufacturer’s second- quarter profit rose to 259.1 million rupees ($5.56 million) from 183.5 million rupees, according to a statement sent to the National Stock Exchange. The stock climbed 4.2 percent to 291.35 rupees.
Bank of Baroda (BOB IN): The state-owned lender was raised to “neutral” from “underweight” by JPMorgan Chase & Co. analysts led by Adarsh Parasrampuria, who cited the company’s first-quarter results, margins and asset quality. The analysts raised their share-price estimate for Bank of Baroda to 800 rupees from 590 rupees. The stock advanced 2.5 percent to 734.2 rupees.
Dabur India Ltd. (DABUR IN): The maker of products ranging from shampoos to beverages plans to raise 20 billion rupees to fund acquisitions, the Business Standard reported, citing company’s Chief Executive Officer Sunil Duggal. The stock fell 1.7 percent to 196.45 rupees.
DLF Ltd. (DLFU IN): India’s biggest real estate developer has sold non-core assets valued at 2.94 billion rupees, Executive Director Saurabh Chawla said on a conference call with analysts. The company may sell part of its stake in the luxury Aman Resorts chain to a strategic partner, he said. It also plans to repurchase 11 billion rupees of preference shares. The stock fell 0.9 percent to 309.1 rupees.
GAIL India Ltd. (GAIL IN): The country’s monopoly natural gas distributor was cut to “hold” from “buy” by Girish Nair, an analyst at BNP Paribas, who cut his estimates for the company’s earnings amid a delay in gas supplies. The analyst cut his share-price estimate for Gail India to 448 rupees from 541 rupees. The stock climbed 1.7 percent to 452.75 rupees.
Hero Honda Motors Ltd. (HH IN): India’s biggest motorcycle maker reported quarterly profit fell 1.7 percent to 4.92 billion rupees. The average estimate of 26 analysts in a Bloomberg survey was for 5.8 billion rupees.
India Cements Ltd. (ICEM IN): The building materials manufacturer plans to raise 3 billion rupees from sales of three- and five-year bonds, according to four people familiar with the matter. “We are planning a bond issue, however nothing has been fixed,” finance official V.M. Mohan said in a telephone interview. The stock rose 0.2 percent to 105.2 rupees.
KEC International Ltd. (KECI IN): The maker of power- transmission equipment may bid $125 million to $175 million to buy SAE Towers Holdings, VCCircle reported, without saying where it got the information. The stock rose 2 percent to 515.6 rupees.
Oil & Natural Gas Corp. (ONGC IN): India’s biggest energy explorer reported a 25 percent drop in first-quarter profit to 36.6 billion rupees from a year earlier, according to its statement. That compares with the 38.5 billion-rupee mean estimate of 16 analysts surveyed by Bloomberg. The stock fell 1 percent to 1,246.55 rupees.
Petronet LNG Ltd. (PLNG IN): India’s biggest importer of the fuel reported first-quarter profit rose to 1.11 billion rupees from 1 million rupees a year earlier, according to a statement sent to the Bombay Stock Exchange. The stock rose 11 percent to 94.9 rupees.
Reliance Mediaworks Ltd. (RMW IN): The film-service company controlled by billionaire Anil Ambani offered to buy a majority stake in Inox Leisure Ltd. (INOL IN) an Indian operator of movie theaters, for 120 rupees a share each, the Economic Times reported, citing two people close to the development it didn’t identify. Reliance Mediaworks dropped 1.2 percent to 206.55 rupees. Inox fell 1.5 percent to 71.85 rupees.
Sun Pharmaceutical Industries Ltd. (SUNP IN): The drugmaker was cut to “hold” from “buy” by Prashant Nair, an analyst at Citigroup Inc., who said valuations factor in most of the “near-term positives” after a rally in the shares over the last three months and that earnings growth may “taper off” for the rest of the financial year after peaking in the first quarter. The stock declined 1.5 percent to 1,779.75 rupees.
UltraTech Cement Ltd. (UTCEM IN): The cement maker was raised to “neutral” from “sell” by Goldman Sachs Group Inc. analysts led by Pritesh Vinay, who cited an “improved” risk- reward profile after the stock’s recent underperformance. The brokerage maintained its share-price estimate of 842 rupees. The stock rose 1.5 percent to 869.8 rupees.