Nestle India shares were trading higher in the morning trade on Tuesday after the company said it has resumed manufacturing of its instant noodles Maggi at three of its India facilities and will hit the markets after getting clearances from food testing laboratories. (Photo: Reuters)

Nestle India shares were trading higher in the morning trade on Tuesday after the company said it has resumed manufacturing of its instant noodles Maggi at three of its India facilities and will hit the markets after getting clearances from food testing laboratories.

At 11.21 am, the share price of the company was trading 0.56 per cent up at Rs 6,370.55. The scrip opened at Rs 6,420 and had touched a high and low of Rs 6,420 and Rs 6,353.50, respectively, in trade so far. Sensex was down 143.76 points at 27,218.20.

The company, which was forced to withdraw Maggi noodles from market and stop its production in June following lead and MSG content beyond permissible limits, will send first samples of the fresh batches to three accredited labs for tests. This is in compliance with the order of Bombay High Court.

In a BSE filing, the company said, “We have resumed manufacturing of Maggi Noodles at three of our plants, at Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa). In compliance with the orders of the Hon’ble High Court of Bombay, fresh samples from these newly manufactured batches will be sent for testing to the three accredited laboratories mandated by the Hon’ble High Court. We shall commence sale only after the samples are cleared by these laboratories. We are engaging with the relevant State authorities and other stakeholders at our other manufacturing locations to commence manufacture at the earliest.”

Karthik Rangappa, vice president, education and research, Zerodha, said, “At the current market price, Nestle India shares are trading 15 per cent lower to its 52 week high. We believe long term investors should use this opportunity and buy in with a 3 – 4 year perspective.”

The BSE group ‘A’ stock of face value Rs 10 has touched a 52 week high of Rs 7499.95 on 10-Mar-2015 and a 52 week low of Rs 5499.00 on 08-Jun-2015.

Last one week high and low of the scrip stood at Rs 6629.00 and Rs 6290.05 respectively. The current market capitalisation of the company is Rs 61,378.24 crore.

The promoters holding in the company stood at 62.76 per cent while institutions and non-institutions held 17.05 per cent and 20.18 per cent, respectively.

Eros International Media, a producer and distributor of Indian movies, shares gained over 5 per cent in the morning trade on Tuesday after the company assured investors and said that it has “strong” fundamentals. (Express Photo)

Eros International Media, a producer and distributor of Indian movies, shares gained over 5 per cent in the morning trade on Tuesday after the company assured investors and said that it has “strong” fundamentals. The reaction came following a slump on domestic and international bourses after an analyst raised questions about its business operations.

At 10.17 am, the share price of Eros International Media were trading 5.50 per cent up at Rs 373.90. The scrip opened at Rs 368 and had touched a high and low of Rs 381.70 and Rs 364.10, respectively, in trade so far. Sensex was down 0.34 per cent at 27,267.90.

In a BSE filing, the company said, “Analysts downgrade or upgrade stocks regularly and that as such is not a cause for concern. We would like to reassure our shareholders that there has been no material change to the previously announced strong fundamentals of the company. We continue to be market leader in the Indian film industry with a dominant market share of the global Indian box office.”

On Monday, shares of Eros International Media slumped as much as 20 per cent on BSE. Its parent company, Eros International Plc , lost 16.6 per cent in US trading on Friday.

The falls came after Wells Fargo, in a report on Friday, said Eros had seen a “sudden spike” in hard-to-understand revenue booked from the United Arab Emirates, calling that a “red flag” for some investors and adding it was not fully comfortable with so much revenue coming from outside India.

Wells Fargo also said it was uncertain about Eros’ user count for its ErosNow movie, TV and music streaming application, saying that numbers did not square with public web sites that track app downloads.

In a BSE filing, the company said, “Another analyst from Macquarie, Tim Nollen, published a very positive report and maintained outperform rating with a $25 price target, on the same day as the Wells Fargo report on Friday.”

(With inputs from Reuters)

Domestic equity markets opened in red on Tuesday on the back of weak global markets. Sensex opened 65.60 points down at 27,296.36.(Photo: PTI)

10.02 am: Housing finance major HDFC was down over 2 per cent after it posted moderate growth in profit for the second quarter of 2015-16 fiscal. Sensex was down 97 points at 27,264.

9.51 am: The rupee was marginally down by three paise at 64.99 against the dollar in early trade on Tuesday due to month-end demand for the US currency from importers.

9.38 am: Nestle India stocks were trading up 0.66 per cent at Rs 6,377  after the company said on Monday that it has resumed manufacturing of its instant noodles Maggi at three of its India facilities.

9.24 am: Crompton Greaves has received an approval for sale of company’s Power Systems Business in Canada to PTI Holdings Corporation in a structured deal for an enterprise value of Canadian $20 million subject to post-closing adjustments. The Committee of Directors at its meeting held on October 26, 2015 has approved for the same. Shares of Crompton Greaves were trading 0.96 per cent up at Rs 184.95. Sensex was down 89.23 points at 27,272.73

9.16 am: Sensex was down 109.1 points at 27,252. Share price of Maruti Suzuki was up around 1 per cent in the opening trade. The company will announce its Q2 results on Tuesday.

Domestic equity markets opened in red on Tuesday on the back of weak global markets. Sensex opened 70.90 points down at 27,291.06. Nifty opened 30.2 points down at 8,230.35.

Markets in Asia slipped from their highest levels in two months, as investors stayed cautious at the start of the US Federal Reserve’s two-day policy meeting. US stocks ended Monday’s session mostly lower as renewed weakness in energy shares weighed on Wall Street.

Maruti Suzuki, Axis Bank, Lupin, Dish TV, CEAT, Coromandel International, Alembic Pharma, Thermax, Strides Arcolab, TVS Motor, Tata Comm and Vedanta to announce their results Tuesday.

On Monday, the BSE Sensex declined by 108.85 points or 0.40 per cent to 27,361.96, while the CNX Nifty lost 34.90 points or 0.42 per cent to 8,260.55.

The BSE Sensex and NSE Nifty are likely to open in red on Tuesday tracking SGX Nifty and rest of Asian markets. (Photo: PTI)

The BSE Sensex and NSE Nifty are likely to open in red on Tuesday tracking SGX Nifty and rest of Asian markets.

At 8.18 am (IST), SGX Nifty was down 28 points, or 0.34 per cent, at 8,240.50.

Asian share markets paused for breath on Tuesday after a four-week romp higher, as investors took cover ahead of central bank meetings in the United States and Japan later in the week.

Hang Seng, Nikkei and Shanghai were down 0.83 per cent, 0.67 per cent and 2.35 per cent at 22,924.70, 18,820.63 and 3,348.86.

On Wall Street, the Dow ended on Monday with a minor loss of 0.1 per cent, while the S&P 500 eased 0.2 per cent and the Nasdaq added 0.1 per cent.

Back home, Sensex and Nifty slid 0.40 per cent and 0.42 per cent at 27,361.96 and 8,260.55 on Monday.

IndiGo’s parent InterGlobe Aviation will also hit the capital markets on Tuesday to raise Rs 3,018 crore through its initial public offering. This will be the biggest initial public offer in nearly three years.

Companies like Dish TV, Vedanta, Lupin, Nucleus, TVS Motor, Thermax, Tata Communications, Ceat, Polymed, Axis Bank, Shasun Pharma, Maruti Suzuki, Navin fluro, Coromandel and KPR Mill may come out their earnings on Tuesday.

Container Corp of India (CCRI’s) 2Q top-line grew 16% y/y (5% below HSBCe though in line with consensus). While EXIM revenue growth was up 16% y/y it was more reflective of the haulage rate hike. We expect volumes to have remained flat (details not yet available) on the back of India’s EXIM trade (ex Oil &Gold) (-12% y/y during 2Q), while domestic revenues fell by 6% y/y- a reflection of weak competitive position due to c20% y/y low diesel prices.

EBITDA margin at 21.0% was marginally above our expectation of 20.6% due to relatively better performance across both domestic and EXIM segments. Overall, EBITDA was flat y/y and came 3% below our expectation. Recurring PAT grew 22% and came 9% below our expectation (largely in-line with consensus expectation) due to a higher effective tax rate.

The stock is trading at a 25.2x PE on September 2016e EPS, while our target price implies the stock will trade at 21.5x. A faster-than-expected macro recovery and improved visibility on the western freight corridor’s completion timeline are key upside risks.

We expect CCRI to post 9% EPS CAGR over FY15-18e. Our FY16-17e standalone EPS estimates are 3-7% below consensus. We also expect CCRI’s RoE to average just 14% over FY15-18.