Stocks in Focus on August 25: LIC Housing Finance, Allcargo Logistics, Axis Bank to Phoenix Mills; here are expected newsmakers of the day
Stocks in Focus on August 25: LIC Housing Finance, Allcargo Logistics, Axis Bank, Phoenix Mills, etc. are expected newsmakers throughout the intraday trade session.
Stocks in Focus on August 25: Domestic share markets ended with strong gains on Monday, August 24, 2020. Upbeat global cues boosted investors’ sentiment. The S&P BSE Sensex advanced 364.36 points or 0.95% to settle at 38,799.08. The Nifty 50 index climbed 94.85 points or 0.83% at 11,466.45. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, August 25, 2020. List of such five stocks:
Triggers: There are certain events, like Results Today, Minda Industries, Sequent Scientific, Inter-ministerial meeting, Nitin Gadkari, Va Tech, HG Infra, Jet Airways, AGM and Ex-dividend, which can create positive/negative reactions in the markets. Find them in detail:
Cash: Phillips Carbon Black, P&G Hygiene and Healthcare, Linc Pen and Plastics, IRCON International, CanFin Homes, Federal-Mogul Goetze, Asian Hotels (W), and Atul Auto.
Minda Industries: The rights issue of the auto parts maker Minda Industries will open today and close on September 8, 2020. Its board has fixed Rs 250 per share as the issue price for the issue. The company seeks to raise around Rs 250 crore from the rights issue. August 17, 2020, was the record date for the rights issue.
Sequent Scientific: Its open offer will open today. Carlyle will bring an open offer to acquire 6.4 crore shares or 26% stakes in Sequent Scientific at Rs 86 per share. The open offer will run from August 25, 2020, to September 7, 2020.
Inter-ministerial meeting: DPIIT calls an inter-ministerial meeting on royalty payments on August 25, 2020. The meeting will be attended by the officials from the commerce department, revenue department and the RBI.
Nitin Gadkari: He will lay the foundation stone for 35 highway projects in Madhya Pradesh today.
HG Infra Engineering: Board meeting on raising capital.
Va Tech Wabag: Board is scheduled to meet today to consider and approve raising of funds by way of issue of Equity Shares, on a Preferential basis.
Jet Airways: Committee of Creditors (CoC) is scheduled to meet today.
AGM Today: Annual General Meeting Tata Motors is scheduled to be held today. Besides, the Extraordinary General Meeting (EGM) of IndusInd Bank will also be held today.
Ex-Dividend today: Bannari Amman Sugars Ltd (Dividend 10.00) and Polyplex Corporation Ltd (Dividend 6.00) will turn ex-dividend today. The ex-dividend date for stocks is usually set one business day before the record date.
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Post Market Results: These companies, LIC Housing, IRB Infra, Globus Spirits, NOCIL and Albert David, have reported their financial results of the first quarter of the financial year 2020-21 (Q1FY21) after the market was closed on Monday. Find in details:
LIC Housing Finance: The mortgage loan company LIC Housing Finance on Monday reported a 34% increase in standalone profits at Rs 817 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 610 crore in the corresponding quarter last year. Revenue from operations was 4% up to Rs 5,004 crore as against Rs 4,807 crore posted in the year-ago period. Net interest income (NII) rose to Rs 1,220.6 crore against Rs 1,182 crore posted last year. Net interest margin (NIM) contracted 2.32% in Q1FY21 from 2.41% posted in Q1FY20. The provisioning in the first quarter dropped 78% to Rs 56 crore compared to around Rs 253 crore in the year-ago period. Almost 25% of the company's loan book is under moratorium as of June 30, 2020. Nearly 77% of its developer loan book is under moratorium as of June 30, 2020. The stage 3 exposure at default as on June 30, 2020, stood at 2.83% as against 1.98% as on June 30, 2019. The provisions for Expected Credit Loss (ECL) as a percentage of stage 3 exposure at default stood at 45.32% as of June-end. Total disbursements were Rs 3,560 crore in Q1FY21 as against Rs 10,261 crore for the corresponding period in FY2020.
IRB Infrastructure: Highways developer IRB Infrastructure Developers Limited on Monday reported a net loss of Rs 30 crore for the quarter ended June 30, 2020. The company has posted a net profit of Rs 207 crore in the corresponding quarter of previous fiscal. The consolidated revenue from operations dropped 42% to Rs 1,022 crore as against Rs 1,773 crore in the year-ago period. EBITDA stood at Rs 477 crore, down 44% from Rs 855 crore. The margin contracted to 46.7% in Q1FY21 from 48% posted in Q1FY20. The APAT dropped by 51% to Rs 101 crore against Rs 207 crore posted last year. The company in a statement has said that toll collection across all projects recovered to the extent of 75 per cent year-on-year (YoY) in June 2020. Construction activity is bouncing gradually.
Globus Spirits: The beverage company on Monday reported a 2.5x times’ jump in the profit at Rs 18.72 crore for the quarter ended June 30, 2020. Revenue from operations dropped 23% to Rs 230 crore as against Rs 296 crore in the year-ago period. EBITDA stood at Rs 39 crore, up 45% from Rs 26.8 crore posted last year. The margin advanced to 17% in Q1FY21 from 9.1% posted in Q1FY20.
NOCIL: The chemical manufacturing company NOCIL on Monday reported a 64% decline in profit at Rs 11.95 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 32.88 crore in the corresponding quarter last year. The revenue from operations dropped 54% to Rs 106 crore as against Rs 229 crore in the year-ago quarter. EBITDA stood at Rs 8 crore, down 85% from Rs 56.5 crore. The margin contracted to 7.5% in Q1FY21 from 25% posted in Q1FY20.
Albert David: The pharmaceutical company Albert David on Monday reported a net loss of Rs 1 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 9.29 crore in the corresponding quarter last year. Revenue from operations dropped 41% to Rs 53.7 crore as against Rs 91.6 crore in the year-ago period. The company posted a negative EBITDA of Rs 4.37 crore against Rs 13.37 crore posted last year.
Allcargo Logistics: The Board of Directors of the Company is scheduled to meet on August 27, 2020, to consider and approve the proposal for voluntary delisting the equity shares of the company. The promoter of the company seeks to buy 29.99% of the paid-up equity shares of the company from the shareholders. As of the date, the members of the Promoter Group collectively hold 70.01% of the paid-up equity share capital of the Company. Final price of delisting will be decided according to reverse book building.
Axis bank/Max Financial: The private lender Axis Bank has made changes in the Max Life’s deal due to the concerns displayed by the insurance sector regulator the Insurance Regulatory and Development Authority of India (IRDAI). It has proposed to acquire 17% stakes in Max Life Insurance instead of 29% proposed earlier. It also removed several clauses of the merger agreement. Axis Bank holds nearly 1 per cent stake in Max Life at present.
Phoenix Mills: The promoter seeks to offload 5.8-7.3% stakes of the company through block deal today, sources. It can sell the shares at Rs 665 per share (discount of around 8.5%) today. The company has raised Rs 1,100 crore from institutional investors through a qualified institutional offering (QIP) at Rs 605 per share on Saturday.
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