RIL, Titan, HCL Tech, UPL, Ultratech, Bajaj Finserv hit fresh record highs

Six companies - Reliance Industries (RIL), HCL Technologies, Titan Company, Bajaj Finserv, UltraTech Cement, and UPL - from the Nifty50 index hit their respective fresh record highs on the National Stock Exchange (NSE) on Thursday.

Bata India, DCB Bank, Fine Organic Industries and SRF from the the Nifty500 index too hit their respective all-time highs today.

UltraTech Cement, the top gainer among Nifty 50 stocks, rallied 5 per cent to Rs 4,628, surging 13 per cent from Wednesday’s low of Rs 4,111, after the company reported strong performance in the March quarter (Q4FY19).

The company registered a strong operating performance with Ebitda (earnings before interest, tax, depreciation and amortization) rising 30 per cent year on year (YoY) at Rs 2,200 crore led by hefty beat on cost, even as realisation growth was below analysts' estimates. Ebitda/tonne jumped to Rs 1,039 compared to Rs 922 and Rs 777 in Q4FY18 and Q3FY19, respectively.

Brokerage firm Sharekhan maintains ‘Buy’ rating on UltraTech with a revised price target of Rs 5,000, assigning higher valuation multiple. UltraTech, being the market leader, is expected to reap benefits of the multi-year industry upcycle, the brokerage firm said.

HCL Technologies rose 1 per cent to Rs 1,151, extending its previous day’s 3 per cent gain on the NSE. The board of directors of the Company is scheduled to meet on May 9 to consider audited financial results for the financial year ended March 31, 2019, and the payment of interim dividend for the financial year 2019-20.

Analysts at Antique Stock Broking said HCL Technologies was likely to post a 2.4 per cent quarter-on-quarter (QoQ) growth in USD terms and 2.2 per cent in constant currency (CC) implying cross currency tailwind of 20bps. EBIT margin is expected to remain flat QoQ.

The technology company is likely to guide for 7 per cent-9 per cent organic revenue growth for FY20 (in CC) and retain EBIT margin guidance at 19.5 per cent-20.5 per cent. The commentary on outlook for CY19, particularly in IMS, TCV wins, margin commentary and investment in digital is to be the focus areas, it said.

At 3 per cent QoQ CC, Motilal Oswal Securities expects HCL Technologies to lead the growth in Tier-I due to continued traction in IMS backed by its double-digit sequential growth in Q3.

The brokerage firm believes that the company should guide for revenue growth upwards of 15 per cent YoY CC due to contributions from improved organic growth (8-9 per cent CC), revenues from IBM’s IP purchases (around 5.5 per cent), recent mega deal with Xerox (around 2 per cent), and residual impact from acquisition integration in FY19 (around 0.5-1 per cent).

BAJAJ FINSERV 7666.60 7676.30 7672.50 24-Apr-19
BATA INDIA 1468.45 1473.50 1469.20 24-Apr-19
DCB BANK 216.45 219.75 215.40 24-Apr-19
FINE ORGANIC 1395.45 1417.80 1399.40 24-Apr-19
HCL TECHNOLOGIES 1138.80 1151.40 1142.10 24-Apr-19
RELIANCE INDS. 1404.00 1408.80 1406.80 01-Apr-19
SRF 2530.95 2536.05 2521.00 24-Apr-19
TITAN COMPANY 1158.80 1165.00 1152.00 24-Apr-19
ULTRATECH CEM. 4614.50 4628.35 4599.90 17-Jan-18
UPL 968.15 970.75 962.90 29-Mar-19

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