Stocks in the news: Jet Airways, Tata Motors, JB Chemicals, Sundaram Finance and Maruti Suzuki
Nomura has maintained 'buy' rating on Fortis Healthcare and cut target price to Rs 159.
Jet Airways: National Company Law Tribunal on Thursday admitted an insolvency plea by Jet Airways’ top lender SBI, paving way for a formal resolution process for the distressed airline.
SpiceJet, IndiGo: The aviation ministry has distributed Jet Airways’ foreign flying rights among Indian carriers through an allocation process. IndiGo and SpiceJet have got the maximum number of rights, with 84 weekly flights for the first and 77 for the second. All the allocations are for three months.
Balaji Telefilms: The cast and crew of ALT Balaji’s web series titled ‘Fixer’ have been reportedly attacked. ALT Balaji is a wholly-owned subsidiary of Balaji Telefilms.
JB Chemicals, Lupin and Piramal Enterprises: Mumbai-based Lupin Pharma and the healthcare arm of Piramal Enterprises are among potential acquirers in early stages of talks to buy into 75-year-old drug maker JB Chemicals, people familiar with the development told ET.
Sundaram Finance: The NBFC Sundaram Finance said it has reached agreements with its partner BNP Paribas for acquiring stakes held by the latter in their two joint venture companies for a total consideration of around Rs 1,000 crore.
Maruti Suzuki: The auto maker said it has increased the price of its popular compact sedan Dzire by up to Rs 12,690 on account of compliance with new safety and emission norms.
Tata Motors: Ratings agency Moody’s Thursday downgraded Tata Motors’ corporate family rating (CFR) and senior unsecured instruments rating, citing sustained deterioration in the company's credit profile mainly on account of its British arm Jaguar Land Rover's weak performances.
Reliance Industries: The oil-to-telecom major is exploring an initial public offering for its Reliance Jio Infocomm unit in the latter half of 2020 at the earliest. Meanwhile, the company is raising about $1.85 billion (Rs 12,840 crore) of fresh overseas loans.
RNAM: ETF Securities, Australia, has launched the first Indian ETF in Australia. Reliance Nippon Life Asset Management Limited (RNAM) has entered in an arrangement to provide advisory services to Australian investors.
Apollo Hospitals: The reduction in pledged shares will be the biggest positive for Apollo Hospitals Enterprise from the HDFC Group-Apollo Munich insurance deal, brokerages said, maintaining a positive stance on the stock.
• Emkay Global has upgraded Divi’s Laboratories to buy from hold and revised target target price to ₹1,756 from ₹1,540. The brokerage said Divi’s has historically been very tight on its capex policy, spending only when it has clear visibility on the order inflows.
• Kotak Securities has maintained a reduce rating on Adani Ports and Special Economic Zone with fair value of ₹398. Kotak said that the decline in Adani Ports’ share pledges since September 2018 is possibly driven by the cash flows realised by the promoter through stake sales. Potential deal with Total (Adani Gas) and buyback are steps in the right direction if such payouts are used to reduce group leverage, said Kotak Securities.
• Nomura has maintained a buy rating on Fortis Healthcare and cut target price to ₹159 from ₹171. FY19 was challenging for Fortis, with uncertainties surrounding ownership and tight liquidity conditions, said the brokerage. Fortis Healthcare's hospital business recorded an EBITDA decline of 33% in FY19, said Nomura.Thursday.
• Anand Rathi has maintained a hold rating on Techno Electric and Engineering with a target price of ₹253. The management has guided to ₹15 billion revenue in FY20 but the brokerage said it is conservative on the pace of execution. The company should attain a 18% CAGR over FY19-21, said Anand Rathi. Its constrained order book may to lead to modest sales and earnings growth in FY20, the brokerage said.
• CLSA has retained sell rating on Asian Paints with a target price of ₹1,285. Asian Paints’ FY19 free cash flow rose by 60% year-on-year, well ahead of earnings growth as peak capex is behind, said CLSA. Commentary is a bit cautious on FY20, although management has always been conservative – macro factors, tapering growth, and volatile crude are worries, said CLSA.