Stocks in Focus on July 27: Axis Bank, L&T, KPIT Tech, Glenmark Life IPO to Biocon; here are the 5 Newsmakers of the Day
On Monday, the S&P BSE Sensex fell 123.53 points to 52,852.27 and Nifty 50 index lost 31.60 points to close at 15,824.45.
Domestic stock markets closed the volatile session with losses and settled near the day’s low on Monday, July 26, 2021. The S&P BSE Sensex fell 123.53 points or 0.23 per cent to 52,852.27. The Nifty 50 index lost 31.60 points or 0.20 per cent to 15,824.45. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Tuesday, July 27, 2021. List of such five stocks:
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Axis Bank + L&T + Tata Motors + DLF
Axis Bank: The private lender on Monday reported a 94% YoY rise in the standalone profit at Rs 2,160 crore for the quarter ended June 31, 2021. It had posted a profit of Rs 1,112 crore in the corresponding quarter of the previous financial year. Net interest income (NII) grew 11% YoY to Rs 7,760 crore in the reported quarter compared to Rs 6,985 crore posted last year. The lender’s gross non-performing assets ratio stood at 3.85% in the June quarter as against 3.7% posted in the previous quarter. The Net non-performing assets rose 1.2% in the quarter from 1.05% posted in the previous quarter. The lender’s gross slippages in the quarter jumped 23.3 per cent sequentially to Rs 6,518 crore and the watchlist stood at Rs 13,101 crore, which is 2.13% of loans.
L&T: The construction major has reported 3.9 times YoY jump in the consolidated profit at Rs 1,174.4 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 303 crore in the corresponding quarter of the previous financial year. Sequentially, the profit fell 64.3% compared to Rs 3,293 crore posted in the previous quarter ended March 31, 2021. Consolidated revenue from operations grew 38% to Rs 29,334.7 crore compared to Rs 21,260 crore posted last year. Sequentially, the revenue declined 39% compared to Rs 48,088 crore posted in the previous quarter. EBIDTA stood at Rs 3,171.5 crore, up 95.7% from Rs 1,620.5 crore posted last year. EBITDA fell 50.4% sequentially from Rs 6,389 crore. The margins improved to 10.8% in Q1FY22 from 7.6% posted in Q1FY21. The company reported a margin of 13.3% in Q4FY21. Other details: - New orders at 26,557 crore, up 13% (YoY) and down 50% (QoQ) (Est 27,284 crore)
- Total order book seen at 3.23 lakh crore up 7% (YoY) and flat (QoQ) (Est 3.2 lakh crore)
- 2nd Covid wave, regional lockdowns and supply chain disruptions impact performance
Guidance
- Expect low to mid-teens revenue growth and order inflow for FY22
-Margins to remain stable despite input cost pressures
Tata Motors: The automotive manufacturer has reported a loss of Rs 4,450 crore for the quarter ended June 30, 2021, as against a net loss of Rs 8,384 crore posted in the corresponding quarter of the previous financial year. The revenues from operations grew 107.6% to Rs 66,406 crore in the reported quarter as against Rs 31,983 crore posted last year. EBITDA stood at Rs 5,228 crore, up 665.8% YoY from Rs 683 crore posted last year. EBITDA margins improved to 7.9% in Q1FY22 as against 2.1% posted in Q1FY21. Other highlights:
- Free cash flow (automotive) in the quarter, was negative at 18.2K Cr (as compared to negative 19.4K Cr in Q1 FY 21) was due to working capital unwind.
- Shortage of semiconductor supplies constrained production resulting in a pre-tax loss of £110 million Demand remains strong with a record order book of 110k units
- PV business continues its turnaround journey and has achieved yet another milestone of double-digit market share.
- The company will launch 10 EV models by 2025.
DLF: The real estate company has reported a consolidated profit of Rs 337 crore for the quarter ended June 30, 2021, as against a loss of Rs 71 crore posted in the corresponding quarter of the previous financial year. Sales grew 350% to Rs 1,140 crore in the reported quarter as against Rs 549 crore posted last year. The EBITDA stood at Rs 396 crore, up 19700% from Rs 2 crore posted last year. The margin improved to 34.7% in Q1FY22 from 0.3% posted in Q1FY21. The board has recommended a dividend of Rs 2 per equity share.
KPIT Technologies + Zensar Technologies + Jindal Stainless + SPARK
KPIT Technologies: The software company has reported a 14% QoQ rise in the consolidated profit at Rs 60.2 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 52.8 crore in the previous quarter ended March 31, 2021. Revenue from operations grew 5% QoQ to Rs 567.4 crore as against Rs 540.3 crore posted in the previous quarter. EBIT stood at Rs 69.4 crore, up 23.3% QoQ from Rs 56.3 crore posted in the previous quarter. The margin improved to 12.2% in Q1FY22 compared to 10.4% posted in Q4FY22.
Zensar Technologies: The software company has reported a 14.4% QoQ rise in the consolidated profit at Rs 101 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 88.3 crore in the corresponding quarter of the previous financial year. Sequentially, the profit grew 4.5% YoY from Rs 292.6 crore posted in the previous quarter ended March 31, 2021. Consolidated revenue from operations grew 7% QoQ to Rs 937 crore as against Rs 876 crore posted in the quarter ended March 31, 2021. Sequentially, the revenue grew 3% YoY from Rs 3,913.6 crore posted in the previous quarter ended March 31, 2021. EBITDA stood at Rs 130.2 crore, up 2.2% from Rs 127.4 crore posted in the previous quarter. The margin stood at 13.9% in Q1FY22 as against 14.5% posted in Q4FY21.
Jindal Stainless: The stainless steel producer has reported a consolidated profit of Rs 305.8 crore for the quarter ended June 30, 2021, as against a consolidated loss of Rs 124 crore posted in the corresponding quarter of the previous financial year. Consolidated revenue from operations grew 193.1% YoY to Rs 4,032.7 crore as against Rs 1,376.1 crore posted last year. The EBITDA stood at Rs 601 crore, up 837.6% from Rs 64.1 crore posted last year. The margin improved to 14.9% in Q1FY22 as against 4.7% posted in Q1FY21. Besides, the board has approved a Brownfield expansion plan for JSL in Jajpur. The expansion will cost the company Rs 2,150 crore.
SPARC: The pharma company has reported a loss of Rs 61.37 crore for the quarter ended June 30, 2021, as against a profit of Rs 56.7 crore posted in the corresponding quarter of the previous financial year. Sequentially, the profit stood at Rs 57 crore in the previous quarter ended March 31, 2021. The Revenue from operations declined 88%YoY to Rs 22 crore in the reported quarter as against Rs 185.5 crore posted last year. Sequentially, the revenue declined 22% from Rs 28.06 crore posted in the previous quarter. The company has reported a negative EBITDA of Rs 54.3 crore as against a positive EBIDTA of Rs 61 crore posted last year. It posted a negative EBITDA of Rs 50.4 crore in the previous quarter.
Glenmark Life + HUDCO
Glenmark Life Sciences IPO: The initial public offer (IPO) of Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, will open for subscription today. The issue will close on July 29, 2021. The company seeks to raise up to Rs 1,513.6 crore from the primary market investors. The price band of the offer has been fixed at Rs 695-720 per share and investors can bid for a minimum of 20 equity shares, in a single lot, and in multiples of 20 equity shares thereafter. The initial public offer (IPO) will have fresh issues of equity shares worth up to Rs 1,060 crore and the sale of up to 63 lakh equity shares by Glenmark Pharma. Besides, Glenmark Life Sciences on Monday said it has raised Rs 454.32 crore from 19 anchor investors ahead of its initial share sale by allotting the shares at Rs 720 per share. Some of the anchor investors include names like HSBC Global, Government Pension Fund Global, Oak Tree Emerging Market and Jupitar India among others.
HUDCO: Government is set to sell around 11.01 crore shares (5.5% equity) in the Housing and Urban Development Corporation (HUDCO) Limited through offer for sale (OFS) at a floor price of Rs 45 per share. It has kept an over-subscription of 2.5% stakes or over 5 crore shares. So, the government seeks to offload an 8% stake (over 16 crore equity shares) in HUDCO, which could help it garner Rs 720 crore for its disinvestment kitty. The offer will open for non-retail investors today and will open for retail investors tomorrow.
Biocon: Biocon Biologics Ltd., a fully integrated biosimilars company and a subsidiary of Biocon Ltd has said that U.S. based Adagio Therapeutics has granted an exclusive license to Biocon Biologics to manufacture and commercialize an antibody treatment based on ADG20 for India and select emerging markets. ADG20, a novel monoclonal antibody targeting the spike protein of SARS-CoV-2 and related coronaviruses, is in global clinical development by Adagio as a single agent for both the treatment and prevention of COVID-19, the disease caused by the SARS-CoV-2 virus, its variants, as well as future variants that may emerge. Under the terms of the deal, Biocon Biologics will get access to the clinical and nonclinical data from Adagio’s EUA submission to the U.S. Food and Drug Administration to seek approvals in the emerging markets.
Balkrishna Industries + Indiabulls Housing
Balkrishna Industries: HDFC Mutual Fund has sold 38.7% lakh shares (2% equity) of the company in the market. With this, HDFC Mutual Fund’s stakes in the company have declined from 5.99% to 3.99%.
Indiabulls Housing Finance: Societe Generale has sold 33.3 lakh shares at Rs 289.33/share.
08:21 AM IST