Stocks in Focus on August 26: TCS, Ircon International to Two-wheeler Companies; here are expected newsmakers of the day
Stocks in Focus on August 26: TCS, CanFin Homes, IRCON, Atul Auto, etc. are expected newsmaking stocks throughout the intraday trade session.
Stocks in Focus on August 26: Domestic equity barometers ended with minor gains on Tuesday, August 25, 2020. Positive global cues boosted sentiment. However, gains were capped due to profit selling after the recent steep rise. The S&P BSE Sensex, advanced 44.80 points or 0.12% at 38,843.88. The Nifty 50 index added 5.80 points or 0.05% at 11,472.25. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, August 26, 2020. List of such five stocks:
Triggers: There are certain events, like Results Today, Loan moratorium hearing, Satin Creditcare, AGM and Ex-dividend, which can create positive/negative reactions in the markets. Find them in detail:
F&O: IGL (variable)
Cash: Gillette India, Marathon Nextgen Realty, GMDC, Star Paper Mills
Loan Moratorium Hearing: Supreme Court is scheduled to hear the moratorium case today. In the last hearing, the Supreme Court observed that charging of interest on interest during the loan moratorium period declared in the wake of COVID-19 pandemic is detrimental.
Satin Creditcare Network: Microfinance Company Satin Creditcare’s maiden rights issue that opened for subscription on August 12, 2020, will close today. The company wanted to raise Rs 120 crore via a rights issue and the issue price was fixed at Rs 60 per rights equity share. The company will issue 48 rights equity shares for every 125 existing fully paid shares held by eligible equity shareholders as on the record date. At the time of making application by August 26, participants have to make a payment of Rs 15 per rights equity share (25 per cent of issue price) and the rest Rs 45 per rights equity share will be paid later.
AGM Today: Annual General Meeting of companies, like Maruti Suzuki, United Spirits, UBL, CanFin Homes, 3M India and Birlasoft, is scheduled to be held today.
Ex-Dividend today: Britannia (Ex-Dividend – 83), Grasim (Ex-Dividend – 4), and IIFL Wealth (Ex-Dividend – 40) 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, CanFin Homes, IRCON, Atul Auto, Everest Kanto, Asian Hotel (West) and Usha Martin, have reported their financial results of the first quarter of the financial year 2020-21 (Q1FY21) after the market was closed on Tuesday. Find in details:
CanFin Homes: The housing finance company CanFin Homes on Tuesday reported a 14.8% year-on-year rise in its profit at Rs 93 crore for the quarter ended June 30, 2020. It had posted a profit of Rs 81 crore in the corresponding quarter of the last fiscal year. Sales grew by 7.9% to Rs 522.5 crore against Rs 484 crore posted last year.
Ircon International: The state-owned engineering and construction firm Ircon International Ltd on Monday reported a 76% year-on-year decline in consolidated profit to Rs 34 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 144.6 crore in the corresponding period a year ago. The consolidated sales dropped 50.7% to Rs 526.8 crore from Rs 1,069.8 crore posted last year. EBITDA stood at Rs 59.7 crore, down 65.9% from Rs 175.5 crore posted last year. The margin contracted to 11.3% in Q1FY21 from 16.4% reported in Q1FY20.
Atul Auto: The leading three-wheeler manufacturing company Atul Auto on Tuesday reported a consolidated loss of Rs 6.7 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 11.2 crore in the corresponding quarter last year. Consolidated sales dropped 82% to Rs 26.5 crore from Rs 147.7 crore posted last year. The company posted a negative EBITDA of Rs 7.3 crore against positive EBITDA of Rs 18.1 crore posted in the same quarter last year.
Everest Kanto Cylinder: The manufacturer of seamless steel gas Cylinders Everest Kanto Cylinder has reported a 15% year-on-year decline in consolidated profit at Rs 6.2 crore in the quarter ended June 30, 2020. It had posted a net profit of Rs 7.3 crore in the corresponding quarter in the last fiscal year. Consolidated revenue dropped 10% to Rs 171.8 crore as against Rs 191.5 crore posted last year.
Asian Hotel (West) Ltd. (AHWL): The company on Tuesday reported a consolidated loss of Rs 43.8 crore for the quarter ended June 30, 2020, as against a net loss of Rs 9.3 crore posted last year in the same period. Consolidated revenue dropped 87% to Rs 12.9 crore as against Rs 101.4 crore posted last year.
Usha Martin: The world’s leading manufacturer of wire rope Usha Martin on Tuesday reported a 97.8% year-on-year drop in consolidated profit at Rs 8.2 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 382.6 crore in the corresponding quarter in last fiscal. Consolidated sales dropped 33.3% to Rs 376 crore as against Rs 564 crore posted in a year-ago period. EBITDA stood at Rs 37.3 crore, down 35% from Rs 57.4 crore posted last year. The margin contracted marginally to 9.9% in Q1FY21 from 10% posted in Q1FY20.
Hero Moto/TVS Motor / Bajaj Auto/ Eicher Motors: Finance minister Nirmala Sitharaman on Tuesday said the government will take up an industry proposal to reduce the tax on two-wheelers with the Goods and Services Tax (GST) Council as it is neither a luxury nor a demerit good. Two-wheelers attract 28% GST. The statement comes ahead of a Council meeting on 19 September.
Va Tech Wabag: The board of the company has approved the issuance of shares worth Rs 120 crore to three investors. The shares will be allocated on a preferential basis at Rs 160 per share. The three investors are
1] Mrs Rekha Rakesh Jhunjhunwala will be issued up to 50 lakh shares.
2] M/s. Basera Home Finance Private Limited will get around 15 lakh shares.
3] Mrs Sushma Anand Jain and Mr Anand Jaikumar Jain (joint holding) will get 10 lakh shares.
Tata Consultancy Services (TCS): S&P Global Ratings on Tuesday revised its outlook on TCS to stable from positive. It said the company is likely to face slower growth in revenue and profitability over the next 12-18 months, given subdued global information technology (IT) spending.
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