Domestic equity markets on Monday, April 26, 2021, closed with gains of more than one per cent amid mixed cues from global equity markets. The S&P BSE Sensex regained the 48,000 mark while the Nifty at National Stock Exchange ended near the 14,500 level. The Sensex rose 508 points, or 1.06 per cent, to finish at 48,387. The Nifty 50 also climbed 144 points, or one per cent, to settle at 14,485. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Tuesday, April 27, 2021. List of such five stocks:

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Tech Mahindra + HDFC Life 

Tech Mahindra: The information technology company on Monday reported a 17.5% QoQ fall in consolidated profit at Rs 1,081 crore for the quarter ended March 31, 2021 (Q4FY21). It posted a net profit of Rs 1,310 crore in the previous quarter ended December 31, 2021 (Q3FY21). Consolidated profit grew 0.9% to Rs 9,730 crore in Q4FY21 as compared to Rs 9,647 crore posted in Q3FY21. The dollar revenue grew 1.6% QoQ to USD 133 crore in the period under observation against Rs 130.9 crore posted in the previous quarter. EBIT stood at Rs 1,554 crore, up 1.1%, against Rs 1,537 crore posted in the previous quarter. The margin remained almost flat at 16% in Q4FY21 as compared to 15.9% posted in Q3FY21. The company in its regulatory filing said, other income declined from Rs 221 crore to Rs 32 crore. Impairment charges of Rs 51 crore. New deal wins stood at $1.04 billion. The attrition rate stood at 13%. The Board of Directors has recommended a final dividend of Rs 30 per share (including a Special Dividend of Rs 15 per share) for the financial year ended March 31, 2021. Besides, the board has also approved the acquisition of 100% equity shares in Eventus Solutions Group, LLC (“Eventus”). Tech Mahindra will pay total consideration of up to USD 44 million including earn-outs. The transaction is expected to close by June 15, 2021.

HDFC Life Insurance:  The insurer has posted a 2% year-on-year (YoY) rise in profit at Rs 318 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 312 crore in the same quarter last year. Net premium income grew 23% to Rs 12,868 crore as compared to Rs 10,464 crore posted last year. Asset under management (AUM) was Rs 1.73 lakh as compared to 1.2 lakhs posted last year. The new business margin grew by 27% QoQ as compared to 26.4%. The company said that its market share improved in individual and over new business and there was an improvement in the new business premium. The board has recommended a final dividend of Rs 2.02 per share. The insurer in an update about the impact of the COVID-19 pandemic on the business said the second wave does appear to be steeper than the first one. Once the second wave subsidies and most of them are vaccinated, we believe that pent-up demand would lift economic and commercial activity. It said, over the course of the year, we have settled over 2.9 lakh death claims resulting in payouts in excess of Rs 3,000 crore. 

SBI Cards + Delta Corp + Snowman Logistics 

SBI Cards: SBI Cards has reported a 110% YoY rise in profit at Rs 175 crore for the quarter ended March 31, 2021, due to other income. It had reported a net profit of Rs 84 crore in the same quarter last year. Total income dropped 2% YoY to Rs 2,468 crore as compared to Rs 2,510 crore posted last year. Revenue from operations fell 5% to Rs 2,309 crore in the reported quarter against Rs 2,433 crore posted last year. Net interest margin (NIM) stood at 13.2% in Q4FY21 against 114.5% posted in Q4FY20. The Gross non-performing assets were at 4.99% QoQ as compared to 4.51%, while NPPA stood at 1.15% QoQ as compared to 1.58%. The company’s market share improved to 19% as compared to 18.3%. 
Delta Corp: The online gaming and hospitality corporation has reported 2 times YoY increase in profit at Rs 58 crore for the quarter ended March 31, 2021. The company has posted a net profit of Rs 29 crore in the same quarter last year. Revenue from operations grew 16.6% to Rs 211 crore as compared to Rs 181 crore posted last year. EBITDA stood at Rs 80 crore up 68% from Rs 47.7 crore posted last year. The EBITDA margin improved to 37.9% in Q4FY21 as against 26% posted in Q4FY20. Besides, Rakesh Jhunjhunwala resigned as director of the company. The board has recommended a final dividend of Rs 1 per share. 
Snowman Logistics: It had reported a loss of Rs 0.4 crore in the quarter ended March 31, 2021, as compared to a loss of Rs 1.1 crore posted in the same period last year. Revenue grew 5% YoY to Rs 64.1 crore as compared to Rs 60.98 crore posted last year. EBITDA stood at Rs 16.8 crore, up 9% from Rs 15.4 crore posted last year, while EBITDA margin improved 26.2% in Q4FY21 as compared to 25.2%. Besides, the board considered and accorded its approval to raise funds up to an amount of Rs 250 crore. 

OFS Update + Aarti Drugs Buyback 

Shalby: The non-retail segment of the offer for sale of the company was subscribed 1.93 times on the first day of subscription. The OFS will open for retail investors today. Promoter Shah Family seeks to offload up to 58.1 lakh equity shares of the company (representing 5.38% stakes) through an offer for sale. The floor price has been set at Rs 111 per share. 

Federal-Mogul Goetze India: The non-retail portion of the offer for sale was subscribed 3.95 times on day one. The OFS will open for the retail investors today. Promoter IEH FMGI Holdings LLC wants to offload 55.4 lakh equity shares of the company (representing 9.95% stakes) through an offer for sale. It also has an oversubscription option of another 9.95% equity shares. The floor price has been set at Rs 250 per share. 

Hathway Cable: The non-retail portion of the offer for sale was subscribed 1.51 times on day one. The OFS will open for the retail investors today. Three promoters, namely Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings, seek to offload 20.5 crore equity shares representing 11.6% stakes of the company through an offer for sales. The floor price has been set at Rs 21.50 per share. 

Aarti Drugs: Aarti Drugs share buyback plan is scheduled to open today, i.e. on April 27, 2021. The buyback aggregates to Rs 60 crore. A buyback price of Rs 1,000 per equity share has been set which is at a premium compared to the current market price. The buyback will close on May 10, 2021.

RBI on Banks: RBI has issued instructions on the governance of banks. RBI has capped the tenure of non-promoter MD, CEO and whole-time director (WTD) posts to 15 years. The promoter cannot be appointed to the post of MD&CEO and WTD for more than 12 years. Referring to the 15-year cap, the banking regulator said the individual will be eligible for re-appointment as MD&CEO or WTD in the same bank after a minimum gap of three years, subject to meeting other conditions. During the three-year cooling period, the individual can't be appointed or associated with the bank or its group entities in any capacity. The current rule that no person can continue as MD&CEO or WTD beyond the age of 70 years in private banks will remain in operation. Within the overall limit of 70 years, as part of their bank, the boards are free to prescribe a lower retirement age. The Chair of the board will be an independent director.

In the absence of the Chair of the board, the meetings of the board shall be chaired by an independent director. The audit committee will comprise only of the non-executive directors. To enable a smooth transition to the revised requirements, banks are permitted to comply with these instructions latest by October 01, 2021. Banks with MD&CEOs or WTDs, who have already completed 12/15 years, can complete their current term as already approved by RBI. The issued instructions are negative for Kotak Mahindra Bank. 

 

JM Financial + GE Shipping + Fine Organics

JM Financial: ICICI Prudential Mutual Fund bought 1.01 crore shares (1.06% equity). With this transaction, ICICI Prudential Mutual Fund’s stakes increased to 6.01% from 4.94% in JM Financial. 

GE Shipping: HDFC Mutual Fund bought 30.88 lakh shares (2.10% stakes). With this transaction, HDFC Mutual Funds stakes in GE Shipping increased to 7.23% from 5.13%. 

Fine Organic Ltd: SBI Mutual Fund sold 2.37 lakh shares at Rs 2,545.11 per share (NSE) and sold another 2.33 lakh shares (0.76%) at Rs 2,545 per share (BSE).