Stocks in Focus on January 27: L&T, Can Fin Homes, Auto Stocks, Bharat Dynamics to Cholamandalam Financials; here are the 5 Newsmakers of the Day
Dragged by heavyweight Reliance Industries and IT pivotal, the domestic equity benchmarks tumbled on Monday, January 25, 2021. The BSE Sensex closed 531 points, or 1.09 per cent, down at 48,348. The NSE Nifty also plunged 133 points, or 0.93 per cent, to settle at 14,239
Dragged by heavyweight Reliance Industries and IT pivotal, the domestic equity benchmarks tumbled on Monday, January 25, 2021. The BSE Sensex closed 531 points, or 1.09 per cent, down at 48,348. The NSE Nifty also plunged 133 points, or 0.93 per cent, to settle at 14,239.
But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, January 27, 2021. List of such five stocks:
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Larsen and Toubro (L&T): EPC major Larsen and Toubro (L&T) on Monday reported a 4.97% YoY rise in consolidated net profit to Rs 2,466.7 crore for the quarter ended December 31, 2020. The company has posted a net profit of Rs 2,352.1 crore in the same quarter last year. Analysts at Zee Business had projected a net profit at Rs 1,802.5 crore. Consolidated revenue fell by 1.8% to Rs 35,596.4 crore in the reported quarter against Rs 36,242.7 crore posted last year. EBITDA stood at Rs 4,280 crore, up 3.9%, from Rs 4,117.7 crore posted last year. The margins grew marginally to 12% in Q3FY21 against 11.4% reported in Q3FY20. The company said it received the highest-ever orders in a quarter, thanks to the receipt of many large contracts including the biggest EPC contract in the country ever - the High-Speed Rail order. Total order inflow was 76% up in this quarter at Rs 73,233 crore over the corresponding quarter of the previous year. Big orders include Rs 28,300 crore bullet train orders. The consolidated order book of the Group stood at a record Rs 3.31 lakh crore as of December 31, 2020, registering growing 9 per cent over the March 2020 level.
Can Fin Homes + Navin Fluorine + ICICI Securities: We highlighted that these companies would post strong results in our special segment Natije Ayenge, Kamai Karayenge.
Can Fin Homes: Can Fin Homes on Monday reported a nearly 24% rise in its net profit at Rs 132 crore in the third quarter ended December 2020. The non-banking financing company sponsored by Canara Bank NSE 0.34 % had posted a net profit of Rs 106 crore in the same quarter a year ago. Net Interest Income (NII) grew to Rs 211 crore in the reported quarter against Rs 174 crore posted last year. The NBFC's provisions for expected credit loss and write off stood at Rs 1.63 crore in the reported quarter against Rs 15 crore made in the previous quarter.
Navin Fluorine: Navin Fluorine has reported a 24.4% growth in consolidated profit at Rs 56 crore for the quarter ended December 31, 2020. The company has posted a net profit of Rs 45 crore in the same quarter last year. Revenue from operations grew 18.4% to Rs 309 crore in the reported quarter against Rs 261 crore posted last year. EBITDA stood at Rs 81 crore, up 24.6%, from Rs 65 crore. The margin grew to 26% in Q3FY21 against 25.1% posted in Q3FY20. The company has said that the speciality chemical business grew by 27%, while CRAMS grew 52%. It added, refrigerant business dropped 18%.
ICICI Securities: ICICI Securities on Monday reported a 95% jump in profit at Rs 267 crore for the quarter ended December 31, 2020, on account of growth in revenue and improvement in margins. It had posted a net profit of Rs 137 crore in the year-ago period. ICICI Securities' revenue shot up by 47% to Rs 620 crore in the quarter under review from Rs 423 crore in the three months ended December 31, 2019. The company said that its total clients stand at 3.4 lakhs as on December 31, 2020, up 36%, from 2.5 lakh clients reported in September 2020 quarter. It added 1.4 lakh clients in this quarter, which is the highest ever addition in a quarter.
Auto Stocks in focus: The government has approved the Scrappage policy. Following this, government vehicles older than 15 years will also be scrapped. The policy will come into effect from April 1, 2022. From the aforementioned date, vehicles used by the government departments would be put off service if they are older than 15 years. Besides, the Union Ministry of Road Transport and Highways (MoRTH) on Monday approved a proposal for Green Tax on old vehicles. Under the said proposal, the vehicles which are older than eight years could be taxed and these taxes will be imposed at the time of renewal of fitness certificate. MoRTH has also said that the green tax will be imposed on vehicles depending on the pollution level in the cities.
Bharat Dynamics + Cholamandalam Financial:
Bharat Dynamics: HDFC Equity Fund has bought 0.06% additional stakes in Bharat Dynamics. With this, HDFC Equity's stake increased to 5.03% from 4.97% held earlier.
Cholamandalam Financial Holding: HDFC Mutual Funds has sold 2.14% stakes of Cholamandalam Financial. With this, HDFC's stake has reduced in the company to 4.94% from 7.08%.
IPO updates: Indigo Paints + Home First Finance + Stove Kraft Ltd.:
Home First Finance IPO: The Rs 1,153.7 crore initial public offering (IPO) of Home First Finance closed with 26.67 times subscription on Monday, January 25, 2021. The retail quota was subscribed 6.59 times, while the QIB portion was subscribed 52.53 times and NII portion saw subscription of 29 times. The issue was priced at Rs 517-518 per share.
Stove Kraft Ltd: The Rs 413 crore IPO of Stove Kraft Ltd, a manufacturer of kitchen appliances, was subscribed 99% on the first day of subscription, i.e. January 25, 2021. The public issue will close on January 28, 2021. The company has fixed a price band of Rs 384 to Rs 385 per equity share. The retail quota was subscribed 5.37 times and the NII portion saw 0.05 times subscription.
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