Stocks In Action: November 15, 2012

DLF said that it has plans to offload Aman Hotel, which has been identified by the company to be among the group’s non-core assets. The group has been taking efforts to reduce its debt burden by selling off non-core businesses. Offloading stake in NTC mill land and Adone Hotels and Hospitality Limited have been recent moves of DLF. The company expects the deals on Aman Hotel and DLF’s wind energy business to close by around January 2013. With this, the stock price of DLF is expected to see an upward move today.

Employees of Kingfisher Airlines did not receive salaries for the month of May despite an assurance from the management. Employees are expected to draw a plan by next week if dues are not received by November 17, 2012. This is likely to result in downside volatility in the stock price of Kingfisher Airlines, which has been seeing some upside lately due to the deal between United Spirits and Diageo.

A further fall in natural gas production has been reported at the KG-D6 fields by Reliance Industries. Water and sand ingress coupled with a drop in pressure have been taking a toll on production in the basin since a few months. KG-D6 had produced 33 mmscmd in April and this dropped to 26 mmscmd last month and further to 25.11 mmscmd in the week ended November 4, 2012. This drop in output is likely to result in a drop in stock prices of RIL today.

Wockhardt announced its Q2FY13 result on Wednesday, November 14, 2012. The company posted a rise of 28.86 per cent in sales to Rs 1347.44 crore and a rise of 255.50 per cent in net profit to Rs 453.55 crore. This robust financial result announcement will result in an upward trend in the stock price of Wockhardt today.

GMR Infra announced its Q2FY13 result and is likely to see a slide in today’s trading. The loss posted by the company has been roughly higher by three times as compared to the loss posted in Q2FY12. Though the net income from operations was higher by 18 per cent YoY to Rs 2398 crore, the overall financial of the company seems unhealthy. The consistently loss making company is now under a debt pile of about Rs 33000 crore. With this, the stock price of GMR Infra is likely to see a downfall in today’s trading session.