Stocks in Focus on January 21: Bajaj Finance, HDFC AMC, Havells India, Axis Bank to Reliance; here are the 5 Newsmakers of the Day
The benchmark indices advanced for the second trading session on Wednesday, January 20, 2021, tracking positive global cues. The BSE Sensex closed 394 points, or 0.8 per cent, up at 49,792. The NSE Nifty also climbed 124 points, or 0.85 per cent, to trade at 14,645. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Thursday
The benchmark indices advanced for the second trading session on Wednesday, January 20, 2021, tracking positive global cues. The BSE Sensex closed 394 points, or 0.8 per cent, up at 49,792. The NSE Nifty also climbed 124 points, or 0.85 per cent, to trade at 14,645. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Thursday, January 21, 2021. List of such five stocks:
Bajaj Finance + Bajaj Finserv
Bajaj Finance: Consumer lending company Bajaj Finance yesterday reported 29% YoY decline in consolidated profit at Rs 1,145.98 crore for the quarter ended December 31, 2020. The company had reported a net profit of Rs 1,614 crore in the corresponding quarter last year. The consolidated net interest income (NII) fell 5.3% to Rs 4,296 crore in the reported quarter against Rs 1,614 crore posted last year.
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Loan losses and provisions for Q3 FY21 Rs 1,352 crore, up 63% as against Rs 831 crore in Q3FY20. On a quarter-on-quarter basis, the losses and provisions dropped 20% to Rs 1,352 crore from Rs 1,700 crore. Gross NPA and Net NPA as of 31 December 2020 stood at 0.55% and 0.19% respectively, as against 1.03% and 0.37% as of September 30, 2020. Besides, during the quarter, the company has done onetime write-off of principal outstanding of Rs 1,970 crore and interest outstanding of Rs 365 crore on account of COVID-19 related stress. It holds a management overlay provision of Rs 800 crore as of 31 December 2020 for COVID-19 related stress. Also, Bajaj Finance to enter the payment solutions market with 'Bajaj Pay', which will offer an integrated payment solution comprising of UPI, PPI, EMI card and credit card to Its customers. Bajaj Finance also said that it is building 5 proprietary marketplaces.
Bajaj Finserv: Bajaj Finserv on Wednesday reported a 14.6% YoY rise in net profit at Rs 1,290 crore for the quarter ended December 31, 2020. It had posted a net profit of Rs 1,126 crore in the corresponding quarter of the last financial year. Its total income grew 9.6% YoY to Rs 15,960.72 crore in Q3FY21 against Rs 14,561 crore posted in Q3FY20.
HDFC AMC + Havells India
HDFC Asset Management Company (AMC): HDFC AMC's consolidated profit rose 4.8% YoY to Rs 369.3 crore for the quarter ended December 31, 2020. It had reported a consolidated profit of Rs 352.6 crore in the corresponding quarter of the last financial year. Consolidated revenue from operations fell 8.2% to Rs 481.9 crore in Q3FY21 against Rs 524.7 crore posted in Q3FY20. Assets under management (AUM) as of December 31, 2020, was Rs 3,89,500 crore as against Rs 3,82,500 crore YoY. Closing AUM stood at Rs 4,06,800 crore as against Rs 3,68,900 crore YoY. Besides, Navneet Munot will take charge of the company as its Managing Director and Chief Executive Officer from February 16, 2021, up to June 30, 2024.
Havells India: Electrical goods maker Havells India Ltd on Wednesday reported a 74.5% YoY rise in consolidated profit at Rs 350 crore for the quarter ended December 31, 2020. The company has posted a net profit of Rs 200.6 crore in the corresponding quarter last year. Consolidated revenue grew 39.7% to Rs 3,175 crore against Rs 2,273 crore posted last year. EBITDA stood at Rs 509.6 crore, 89% up from Rs 269.6 crore posted last year. The margins fell to 26.2% in Q3FY21 against 29.4% reported in Q3FY20. Besides, the company's board has approved an Interim Dividend of 3 per share.
L&T Technology + Phillip Carbon + GMM Pfaudler
Larsen & Toubro Technology Services (LTTS): The Company on Wednesday posted a 12.4% QoQ rise in consolidated profit at Rs 186 crore for the quarter ended December 31, 2020. It had posted a profit of Rs 165 crore in the quarter ended September 30, 2020. Revenue from operations grew 6.6% to Rs 1,401 crore as against Rs 1,314 crore posted in the previous quarter. Dollar revenue grew 6.7% QoQ at $19 crore against $17.8 crore. EBIT stood at Rs 213 crore, up 18% from Rs 180 crore reported in September quarter. The margin grew to 15.2% in Q3FY21 against 13.7% reported in Q2FY21.
Phillip Carbon Black: Phillip Carbon has reported an 80.2% YoY rise in consolidated profit at Rs 126.5 crore for the quarter ended December 31, 2020. The company has posted a net profit of Rs 70.2 crore in the same quarter last year. Consolidated revenue from operations was almost flat at Rs 769.4 crore in the reported quarter against Rs 768.6 crore posted last year. EBITDA grew 56.8% to Rs 188.3 crore against Rs 120.1 crore reported last year. The margin grew to 24.5% in Q3FY21 against 15.6% posted in Q3FY20. The company said, the new speciality black line in Palej plant, Gujarat has been put on trial. The board has approved an interim dividend of Rs 7 per share.
GMM Pfaudler: GMM Pfaudler has reported a 10% YoY rise in consolidated profit at Rs 23.1 crore for the quarter ended December 31, 2020, against Rs 21 crore posted in the corresponding quarter last year. Consolidated revenue from operations grew 29.4% to Rs 201.8 crore against Rs 155.97 crore posted last year. EBITDA stood at Rs 41.9 crore, up 37.7% from Rs 30.4 crore posted last year. The margin advanced to 20.8% in Q3FY21 against 19.5% reported in Q3FY20. The board has approved an interim dividend of Rs 1 per share. Jugal Sahu resigned as CFO due to personal reasons.
IPO updates: IRFC + Indigo Paints + Home First Finance
IRFC IPO Final Update: The Rs 4,633 crore IPO of Indian Railway Finance Corporation (IRFC) was subscribed 3.49 times on the last day of subscription. The retail quota was subscribed 3.66 times, while the employee quota was subscribed 43.76 times. The quota reserved for NIIs was subscribed 2.67 times and QIBs saw 3.78 times subscription. The issue was open between January 18, 2021, and January 20, 2021. The company has fixed price band for its public issue at Rs 25-26 per share. The company has already garnered Rs 1,390 crore from the anchor investors at Rs 26 per share.
Indigo Paints IPO: The Rs 1,170 crore initial public offering (IPO) of Indigo Paints was subscribed 1.90 times on the first day of subscription, i.e. on January 20, 2021. The retail quota was subscribed 3.29 times, the NII and employee quota was subscribed 1.10 times and 0.73 times, respectively. Today is the second day for the subscription of the offer and the offer will close tomorrow. Indigo Paints has fixed the price band of the share sale at Rs 1,488-1,490 a share. Investors can bid for a minimum one lot of 10 shares and in multiples, extending up to 13 lots. The IPO comprises fresh issuance of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares worth Rs 870 crore. Post-IPO, the shareholding of the promoter will come down to 54 per cent, from 60.05 per cent.
Home First Finance IPO: The Rs 1,154 crore initial public offering (IPO) of Home First Finance will open for subscription today, i.e. January 21, 2021. The IPO comprises of a fresh issue of Rs 265 crore and an offer for sale of Rs 889 crore by promoters and existing shareholders, including True North Fund V LLP, Aether (Mauritius) and Bessemer India Capital Holdings II. Investors can bid for a minimum one lot of 28 equity shares and in multiples up to 13 lots, in the price band of Rs 517-518 per share. A total of up to 50 per cent of the issue will be reserved for qualified institutional buyers (QIBs), 35 per cent for the retail category and 15 per cent for the non-institutional group. Anchor book of the issue was opened on January 20, 2021, and the company has raised Rs 346 crore from 25 anchor investors at Rs 518 per share. The anchor investors included fund houses like Nomura, Fidelity, CLSA, Morgan Stanley, Goldman Sachs, BNP Paribas, Eastspring, Buena Vista, Grandeur Peak, Moon Capital. This will be the third IPO in 2021 after the public offers by Indian Railway Finance Corporation (IRFC) and Indigo Paints.
Aditya Birla Fashion + Axis Bank + Future group/Reliance
Aditya Birla Fashion and Retail: The Competition Commission of India has accorded its approval to Flipkart for its proposed acquisition of 7.8% equity stake in the company on a fully diluted basis.
Axis Bank: Gets approval from the Competition Commission of India for the deal with Max Life Insurance.
Future group/Reliance: SEBI grants conditional approval to Future Group's scheme of arrangement and sale of assets to Reliance Retail.
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