 "Metal index hits 52-week high; Tata Steel, Coal India, APL Apollo gain")
Shares of metal companies are in focus with the Nifty Metal and S&P BSE Metal index, up nearly 2% each, hitting their respective 52-week highs.
While the Nifty metal index hit high of 2,599 on the NSE, the S&P BSE Metal index touched a high of 10,107 on the BSE during intra-day trade. The benchmark indices were down 0.1% each at 01:13 pm.
Thus far in 2016, the Nifty metal index surged 42% against 8.5% rise in the Nifty 50 index.
Tata Steel, Hindalco Industries, JSW Steel and APL Apollo Tubes were trading at their 52-week highs, while Steel Authority of India (SAIL), Coal India and NMDC were up more than 2% each.
APL Apollo Tubes hit a record high of Rs 1,005, up 5% on the NSE, extending its Tuesday 7% rally after reported nearly double net profit of Rs 41 crore for the quarter ended June 30, 2016 (Q1FY17). It had profit of Rs 22 crore in the same quarter year ago. EBITDA (earnings before interest, depreciation and taxes) margin improved 230 basis points to 8.1% from 5.8%.
The company said the performance was driven largely on account of operating efficiencies along with improved product mix resulting in higher margins and average realizations.
Hindalco Industries also touched a fresh 52-week high of Rs 157 in intra-day trade after the company reported a standalone net profit of Rs 294 crore in Q1FY17 against Rs 61 crore in the year-ago period. Post Q1 results, in past three trading sessions, the stock rallied 11% as compared to 0.53% rise in the benchmark index.
SAIL surged 5% to Rs 48, while Tata Steel hit a fresh 52-week high of Rs 390 on the NSE.
“The government continues to protect the domestic steel industry through minimum import prices (MIP) and safeguard or anti-dumping duties, which help in curbing imports. Pending finalization of imposition of anti-dumping duty on HRC and HR plates, the government has extended MIP for another two months until 4 October to keep imports in check. This makes steel a virtual local play,” Elara Capital said in a steel sector update.
"The stocks are currently trading at rich valuations despite the high likelihood of an earnings cut, particularly for FY17. It is just a matter of time when we might see a correction in these stocks, in line with fundamentals," added the report dated August 9, 2016.
While the Nifty metal index hit high of 2,599 on the NSE, the S&P BSE Metal index touched a high of 10,107 on the BSE during intra-day trade. The benchmark indices were down 0.1% each at 01:13 pm.
Thus far in 2016, the Nifty metal index surged 42% against 8.5% rise in the Nifty 50 index.
Tata Steel, Hindalco Industries, JSW Steel and APL Apollo Tubes were trading at their 52-week highs, while Steel Authority of India (SAIL), Coal India and NMDC were up more than 2% each.
APL Apollo Tubes hit a record high of Rs 1,005, up 5% on the NSE, extending its Tuesday 7% rally after reported nearly double net profit of Rs 41 crore for the quarter ended June 30, 2016 (Q1FY17). It had profit of Rs 22 crore in the same quarter year ago. EBITDA (earnings before interest, depreciation and taxes) margin improved 230 basis points to 8.1% from 5.8%.
The company said the performance was driven largely on account of operating efficiencies along with improved product mix resulting in higher margins and average realizations.
Hindalco Industries also touched a fresh 52-week high of Rs 157 in intra-day trade after the company reported a standalone net profit of Rs 294 crore in Q1FY17 against Rs 61 crore in the year-ago period. Post Q1 results, in past three trading sessions, the stock rallied 11% as compared to 0.53% rise in the benchmark index.
SAIL surged 5% to Rs 48, while Tata Steel hit a fresh 52-week high of Rs 390 on the NSE.
“The government continues to protect the domestic steel industry through minimum import prices (MIP) and safeguard or anti-dumping duties, which help in curbing imports. Pending finalization of imposition of anti-dumping duty on HRC and HR plates, the government has extended MIP for another two months until 4 October to keep imports in check. This makes steel a virtual local play,” Elara Capital said in a steel sector update.
"The stocks are currently trading at rich valuations despite the high likelihood of an earnings cut, particularly for FY17. It is just a matter of time when we might see a correction in these stocks, in line with fundamentals," added the report dated August 9, 2016.