Share markets in India are presently trading on a negative note.
The BSE Sensex is trading down by 258 points, down 0.6% at 43,335 levels.
Meanwhile, the NSE Nifty is trading down by 68 points.
Shree Cement and Sun Pharmaceuticals are among the top gainers today. Kotak Bank and Coal India are among the top losers today.
The BSE Mid Cap index is trading up by 0.5%
The BSE Small Cap index is trading up by 1.1%
On the sectoral front, stocks from the real estate sector are witnessing most of the buying interest.
On the other hand, stocks from the banking sector are witnessing most of the selling pressure.
US stock futures are trading lower today, indicating a negative opening for Wall Street indices.
Nasdaq Futures are trading down by 48 points (down 0.4%), while Dow Futures are trading down by 226 points (down 0.8%).
The rupee is trading at 74.51 against the US$.
Gold prices are trading up 0.2% at Rs 50,274 per 10 grams.
In global markets, gold prices edged higher today as the global stock market rally on COVID-19 vaccine optimism showed signs of stalling. A surge in COVID-19 cases around the world and a weaker US dollar supported gold at lower levels.
Tracking global cues, gold prices edged higher in domestic markets though they remain sharply lower this week. In the previous session, gold futures had declined by 0.6% or Rs 310 per 10 grams.
Note that gold prices have seen a sharp correction this week, falling about Rs 2,000 per 10 grams.
Moving on to stock-specific news...
Among the buzzing stocks, today is Ashoka Buildcon.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) were up 11.5% YoY at Rs 1.8 billion, while EBITDA margin expanded 70 basis points YoY to 19.5%, backed by benign raw material cost. Standalone revenue was up 7.7% YoY at Rs 9.3 billion.
On a quarter-on-quarter basis, the company's net profit rose 51.6% on the back of 49.4% growth in operational revenues, aided by a pick-up in execution with better labor and raw material availability.
The company said its total order book as of September 30, stands at Rs 93 billion. Of the total order book, the contributions from the road hybrid annuity model (HAM) and road engineering, procurement, and construction (EPC) are Rs 43.2 billion and Rs 32.5 billion, respectively.
Meanwhile, the board of directors of the company has approved the sale of a 49% stake in one of its wholly-owned subsidiaries viz Ashoka Technologies to Auriga IT Solutions at fair market value.
It has also approved to increase the stake in its subsidiary viz. Ashoka Purestudy Technologies (APTPL) from the existing 51% to 59% over a period of the next three months by subscribing to the equity share capital of APTPL and/or acquiring shares from Purestudy Software Services, another shareholder of the Company.
At the time of writing, Ashoka Buildcon's share price was trading up by 5.6% on the BSE.
Moving on to news from the cement sector...
Shree Cement Q2FY21 Results: Net Profit Rises 68% To Rs 5.3 Billion
In an exchange filing on November 11, Shree Cement reported a net profit of Rs 5.3 billion, an increase of 68% YoY for the quarter ended September amid lower expenses and depreciation.
The company's revenue rose 7.8% YoY to Rs 30.2 billion while its EBITDA rose 17% YoY to Rs 9.9 billion.
The cement maker also saw its operating margin widen to 32.7% from 30.1% earlier. Shree Cement's operational performance improved, despite lower pricing, mainly due to a fall in costs. Power and fuel costs as a share of net sales dropped to 15.7% from 21.3% earlier.
The company's finance costs and depreciation, too, fell compared to last year. Finance costs were down 13% YoY at Rs 627 million. Depreciation declined 35% over last year to Rs 2.8 billion. The cement maker also saw a Rs 103 million tax reversal during the quarter that aided the bottom line.
The Kolkata-based firm was able to improve its volumes during the quarter by keeping a check on prices. Volumes increased by 16.5% over last year and realization, which is the operating profit it makes for each ton, stood largely flat at Rs 15.4 billion.
While cost cuts and pricing discipline have helped lift the cement makers' earnings, the focus will be back on the core business as demand in the economy returns to pre-COVID levels. Fuel and logistics costs are rising at a time when urban consumption is increasing which could rein in the cement maker's pricing power.
We will keep you updated on all the news from this space. Stay tuned.
Speaking of the stock markets, the right investing process can help you win in the long term. It might offer some unexpected and undesirable results in the short term but lets you farewell when you average the outcomes.
The service's performance did suffer in the short term after the 2018 crash in small caps. However, the long-term track record and the post-COVID rebound underscores the strength of stock-picking process.
Comments
Log in or sign up to join the conversation.