Share Market Price
Shares to look out for: Soaring High for Canara Bank, Jet Airways, and Goodyear India
The three buzzing stocks have their own reasons for being a bull. Predictions are that they would continue to be on a steady rise for some more time.
Canara Bank Shares
Shares of Canara Bank, one of India’s largest public sector banks, rose to the highest since March on Tuesday (8 December 2020). The rise happened after the lender launched a QIP (Qualified Institutional Placement). The shares closed at Rs. 139.55, up by 18.87% since the previous close.
The bank wishes to raise Rs. 2000 crores from the issue. The floor price of the QIP is at Rs. 103.50 apiece. In July, the bank’s board had approved Rs. 5000 crores fundraising for the financial year 2020-21 through several methods. The approval for QIP was secured in September.
On 10 December 2020, the board would be meeting again to finalize the issue price for the QIP along with the quantum of shares to be allotted to qualified institutional buyers. Morgan Stanley analyst Sumeet Kariwala noted.
“The capital-raise will increase CET-1 ratio by 0.4% to 8.8% and imply 13% dilution. Valuation is cheap, but we see much better risk-reward at other coverage banks.”
He also noted that the fundraising might not increase the coverage universe of the bank’s balance sheet.
Jet Airways Shares
The shares of Jet Airways, today (8 December 2020), hit the upper circuit of 5%. It happened as the new promoters of the defunct airline gave hope that it was likely to make a comeback, mostly by next summer.
Hence, shares of Jet Airways opened at Rs. 75.60, 5% higher than the previous close of Rs. 72 on BSE.
The share rolled around the upper circuit of 5% in afternoon trade and finished trading at Rs. 75. Jet Airways share went trading higher than 5 days, 20 days, 50 days, 100 days, and 200-day moving averages. In the last two days, the stock has gained 8.62%. 268% is the gain of microcap share in one year. The Market cap rose to Rs. 858 crores on BSE.
Words by New Consortium
The Murari Lal Jalan-Kalrock Capital combine, a new consortium for Jet’s revival, said in its promising statement:
“As per the resolution plan, Jet Airways intends to operate all of its historic domestic slots in India and restart international operations. If everything goes as per plan and the consortium receives the NCLT and regulatory approvals on time, Jet Airways would be back in the skies by the summer of 2021.”
Goodyear India Shares
Goodyear India, one of India’s leading tire manufacturers, had their shares zoomed approx. 16% on Tuesday (8 December 2020). The close was on Rs. 1,157 on the BSE. The rise could be linked to the company’s announcement of an interim dividend of Rs. 80 per share, for the financial year 2020-21.
For shareholders to entitle themselves to interim dividend, the company has fixed 15 December 2020 as the record date. The stock of Goodyear India, with today’s rise, has rallied 41% in the past 7 trading days. At a point, it was trading close to its 52-week high level of Rs. 1,187 (touched on 2 February 2020).
Goodyear India reported 28% year-on-year (YoY) for the July-September quarter (Q2FY21). Its standalone net profit was at Rs. 48.56 crores, against Rs. 37.79 crores in the previous year’s same quarter. The company is eyeing short to mid-term headwinds for the financial year 2020- 21.