Stocks in Focus on June 12: HDFC Bank, Kotak Mahindra Bank to SBI Life; here are expected newsmakers of the day
Stocks in Focus on June 12: HDFC Bank, Kotak Mahindra Bank, SBI Life, Dixon Technologies, NMDC, etc. are expected newsmakers throughout the intraday trade session.
Stocks in Focus on June 12: Domestic shares ended with heavy losses on Thursday, June 11, 2020, mirroring weakness in global stock markets. The barometer S&P BSE Sensex slumped 708.68 points or 2.07% at 33,538.37. The Nifty 50 index tumbled 214.15 points or 2.12% at 9,902. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday, June 12, 2020. List of such five stocks:
Triggers: There are certain events, like SC hearing on the moratorium case, GST Council meet, RIL Rights issue and board meeting at Hexaware, that will either create positive/negative reactions in the markets. Find the details:
SC hearing: Supreme Court is scheduled to hear the petition for a waiver of the interest developed during the moratorium period. The apex court had asked for replies from the Reserve Bank of India and the government on the matter at an earlier hearing.
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RIL Rights Issue Update: The allotted shares will be listed on the exchanges today.
Hexaware: The company’s board is scheduled to weigh the delisting proposal today. Promoter Baring PE Asia has cited an indicative offer price for its proposed delisting at Rs 285 apiece.
GST Council meeting: The GST Council is scheduled to meet today through video conferencing to discuss the impact of COVID-19 on tax revenues and the framework for compensation payout to states. During the 40th meet, the council would also discuss waiver of late fees for non-filing of GST returns for the period August 2017 to January 2020. The Council will also discuss ways to garner funds to compensate states for the revenue loss due to Goods and Services Tax (GST) implementation.
Franklin Templeton Case: The case of winding up the six debt schemes is scheduled to be heard today at the High Court.
EID Parry/ Sundaram Fasteners/ Dixon Tech/ KNR Construction/ Westlife Development: They are the companies that reported their financial results of the fourth quarter of the financial year 2019-20 (FY20) on Thursday, June 11, 2020, after the market hours. Find details:
EID Parry India Ltd: The company on Thursday reported a 0.6% year-on-year decline in consolidated profit at Rs 157 crore for the fourth quarter ending March 31, 2020. It posted a profit of Rs 158 crore in the corresponding quarter last year. Revenue from operations grew 16.4% to Rs 4,245.1 crore against Rs 3,646.2 crore posted a year ago. EBITDA stood at Rs 624.5 crore, up 34.4% from Rs 464.7 crore and the margin grew to 14.7% against 12.7% of last year.
Sundram Fasteners Ltd: Auto-component maker Sundram Fasteners on Thursday announced the financial results of March quarter 2020 and reported a 51.6% year-on-year decline in consolidated profit at Rs 54.6 crore. It registered a net profit of Rs 112.8 crore during the corresponding quarter last year. Revenue from operations declined 27.3% to Rs 830.9 crore against Rs 1,142.2 crore. EBITDA stood at Rs 122.8 crore, down 35.6% from Rs 190.8 crore and margins contracted to 14.8% when compared to 16.7% of last year.
Dixon Technologies: Consolidated profit of Dixon Technologies rose 67.3% year-on-year to Rs 27.6 crore in the quarter ended March 2020 as against Rs 16.5 crore during the previous quarter ended March 2019. Revenue from operations declined 0.2% to Rs 857.4 crore against Rs 858.8 crore posted in the same quarter last year. EBITDA stood at Rs 55.9 crore, up 49.1% from Rs 37.5 crore and the margin was 6.5% against 4.4% of last year.
KNR Constructions: KNR Construction on Thursday announced its financial results of the quarter that ended on March 31, 2020, and reported a 27.8% year-on-year fall in consolidated profit to Rs 74.7 crore against Rs 103.5 crore posted last year in the same quarter. Revenue from operations was 4.6% down to Rs 730 crore from Rs 765 crore posted last year. EBITDA stood at Rs 187.5 crore, up 3.7% from Rs 181 crore and the margin grew to 25.7% against 23.6% reported last year in the same period.
Westlife Development: The company on Thursday announced consolidated financial results for the year ended March 31, 2020, and reported a loss of Rs 17.5 crore against a profit of Rs 1.3 crore posted in the same quarter last year. Revenue from operations fell 0.9% to Rs 336 crore from Rs 339.1 crore reported last year. EBITDA stood at Rs 18.5 crore, down 30.2% from Rs 27 crore and margins contracted to 5.5% from 7.8%.
HDFC Bank/Kotak Mahindra Bank: The Reserve Bank of India (RBI) on Thursday issued a discussion paper to set new and contemporary standards of governance at commercial banks. It has proposed to restrict the tenure of Chief Executive Officers (CEOs) and whole-time directors (WTDs) of commercial banks to 10 years if the person is from the promoter group and 15 years in the case of professional management. Thereafter, the individual should be eligible for re-appointment as WTD or CEO only after the expiration of three years. On the date of issuance of the guideline, banks with WTDs or CEO who have completed 10 or 15 years should have two years to identify and appoint a successor.
NMDC Ltd: Chhattisgarh government on Thursday disallowed the public sector mining giant to carry out iron ore storage, loading and shipment. The government has said that India's largest iron ore miner was not following mandatory rules.
SBI LIFE: The country’s largest lender State Bank of India (SBI) on Thursday said that it will offload 2.1 crore shares or 2.10% stake in SBI Life Insurance Co Ltd through an offer for sale (OFS). The floor price for the sale has been fixed at Rs 725, which stands at 2.24 per cent discount to the closing price of Rs 741.25 on Thursday. The issue will open for non-retail investors on June 12 and on June 15 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids. SBI holds 57.60% stake in the company as on 31 March.
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