Goldman bearish on Blue Dart: Goldman Sachs remained bearish on Blue Dart Express and maintained sell rating after weak set of earnings for the quarter ended June 2017. The stock price fell more than 2 percent intraday.
The research house slashed its 12-month target price to Rs 4,160 (from Rs 4,500) after lowering FY17/18/19 EPS estimates by 27/13/6 percent on pricing pressure.
With continued pressure on pricing and the industry adjusting to prepare for GST, it expects near term profitability of the company to remain muted.
Blue Dart reported weak Q1FY18 earnings across parameters. Revenue growth remained subdued at 7 percent YoY (sixth straight quarter of less than 10 percent growth) at Rs 666.6 crore, which partially impacted by lower transportation activity in the June prior to the GST rollout.
A decline in margins resulted in consolidated profit declining by 52 percent YoY to Rs 21.1 crrore in June quarter.
Market Check: Equity benchmarks remained under pressure in morning trade, with the Sensex falling over 100 points following weakness in global peers.
The 30-share BSE Sensex was down 127.08 points at 32,256.22 and the 50-share NSE Nifty fell 30.65 points to 9,989.90.
The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising 0.35 percent each on positive breadth.
About 1,057 shares advanced against 949 declining shares on the BSE.
HDFC extended gains today, hitting fresh record high of Rs 1,776.20, up 2.4 percent on top of 5.83 percent rally in previous session after strong earnings.