Stocks in Focus on May 31: Divi’s Laboratories, REC, Banking Stocks, Airline Stocks to Pharma Stocks; here are the 5 Newsmakers of the Day
The equity indices ended a range-bound session with modest gains on Friday, May 28, 2021. The S&P BSE Sensex advanced 307.66 points or 0.60 per cent at 51,422.88. The Nifty 50 index gained 97.80 points or 0.64 per cent to 15,435.865.
The equity indices ended a range-bound session with modest gains on Friday, May 28, 2021. The S&P BSE Sensex advanced 307.66 points or 0.60 per cent at 51,422.88. The Nifty 50 index gained 97.80 points or 0.64 per cent to 15,435.865. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Monday, May 31, 2021. List of such five stocks:
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Divi’s Lab + Glenmark
Divi’s Laboratories: The pharmaceutical company has reported a 29% YoY rise in the consolidated profit at Rs 502 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 388 crore in the corresponding quarter of the previous financial year. Consolidated revenue grew 29% to Rs 1,789 crore as compared to Rs 1,390 crore posted last year. EBITDA went up 62% to Rs 718 crore compared to Rs 444 crore posted last year. Margin improved to 40% in Q4FY21 as compared to 32% posted in Q4FY20. The board has recommended a dividend of Rs 20 per share.
Glenmark: The pharmaceutical company has reported a 6.2% YoY rise in the consolidated profit at Rs 234 crore cor the quarter ended March 31, 2021 (Q4FY21). It had posted a profit of Rs 220 crore in the corresponding quarter of the last financial year (Q4FY20). The consolidated revenue from operations grew 3.3% YoY to Rs 2,860 crore as compared to Rs 2,767 crore posted last year. EBITDA went up 12% to Rs 523 crore in the reported quarter as compared to Rs 465 crore posted last year. The margin improved to 18.2% in Q4FY21 as compared to 16.8% posted in Q4FY20. The Board of Directors of the Company has recommended a Dividend of Rs 2.50 per share for the financial year 2020 – 21. Besides, Glenmark has reorganized its businesses into three separate entities, and they are Glenmark Pharma, ICHNOS Sciences and Glenmark Life Sciences. Glenmark has invested Rs.188 Cr in the fourth quarter of the financial year. R&D dropped 13%. Geography
India: up 8%
North America: 5.2%
Europe: up 2.6%
Latin America: Down 27%
API: up 27%
BoB + City Union Bank + REC
Bank of Baroda (BoB): The public sector bank has reported a loss of Rs 1,047 crore for the quarter ended March 31, 2021, as compared to a profit of Rs 507 crore posted in the corresponding quarter of the previous financial year. Net interest income (NII) rose 4.5% to Rs 7,107 crore compared to Rs 6,798 crore posted last year. Adjusted PAT grew 4.5% YoY to Rs 2,267 crore compared to Rs 507 crore posted last year. The bank’s provisions for bad loans rose 44 per cent on-year during the quarter to Rs 4,593 crore compared to Rs 3,191 crore posted last year. On a quarter-on-quarter basis, the lender’s gross non-performing assets (NPA) stood at 8.87% as compared to 9.63% reported in the previous quarter. The Net NPA was at 3.09% as compared to 2.39% reported in the previous quarter. The lender made a write-off of Rs 5,747 crore in the reported quarter compared to Rs 4,708 crore posted in the previous quarter Slippages stood at Rs 10,969 crore in the March quarter against Rs 39,86 crore posted in December quarter. The lender has received restructuring requests received for Rs 9,434 crore and Rs 2,320 crore implemented.
City Union Bank: The lender has reported a profit of Rs 111.2 crore for the quarter ended March 31, 2021, as compared to a loss of Rs 95.3 crore posted in the corresponding quarter last year. Net interest income (NII) grew 2.15% to Rs 428.5 crore compared to Rs 419.5 crore posted last year. Provisions declined 47% to Rs 238 crore in the reported quarter compared to Rs 450 crore posted last year. On the quarter-on-quarter basis, the Gross NPA stood at 5.11% as against 2.94% reported in the previous quarter. The Net NPA stood at 2.97% as compared to 1.47% posted in the previous quarter. Provisions of Rs 218.5 crore was made in the previous quarter. Asset quality deteriorated because the bank did not declare Proforma NPAs. Provision higher than estimates lead to lower profits.
REC: The Navratna company has reported a 374% QoQ rise in the standalone profit at Rs 2,070 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 436 crore in the corresponding quarter of the previous financial year. Total income rose 18.5% to Rs 9,146 crore as compared to Rs 7,721 crore posted last year.
Banks in Focus: Union Government has further expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) amid the economic disruption caused by the second wave of COVID-19 pandemic to aid the Micro, Small and Medium Enterprises (MSMEs) sector. The validity of ECLGS has been extended to September 30, 2021. Disbursement under the scheme has been permitted up to December 31, 2021. At the same time, the amount of loan and its approval has been increased in several schemes. The maximum tenure in the scheme has been made at 60 months. In the aviation sector, the upper limit per borrower is Rs 200 crore only.
Airline Stocks: The airline stocks will be in focus today as the flights within the country are set to be costlier from June 1, 2021. The Ministry of Civil Aviation has allowed domestic airlines to increase fares up to 15% from June 1, 2021.
Pharma stocks: Pharma stocks like Cipla, Dr Reddy’s and Jubilant Pharmova will be in focus as the government has said that India has ramped up the production of anti-viral drug Remdesivir - used in the treatment of Covid patients - from 33,000 vials per day on April 11 to 3.5 lakh vials every day. It said, the number of plants producing Remdesivir has been increased from 20 to 60 within a month. Now the country has enough Remdesivir as the supply is much more than the demand. The government of India has also decided to procure 50 lakh vials of Remdesivir to maintain it as a strategic stock for the emergency requirement. Similarly, the stocks of Alembic, Natco, Abbott India and Ambalal Sarabhai will be in focus as the GST Council in its meeting held on Friday exempted import of Amphotericin B used for treating black fungus from levy of I-GST. Finance Minister Nirmala Sitharaman said the Council had a very detailed discussion on COVID related equipment in its meeting. Several issues relating to it were raised and discussed. The Finance Minister said the GST Council has decided to waive I-GST on free COVID-19 related supplies imported from abroad. So far, the IGST exemption was available only when the relief items were being imported free of cost. This exemption has been extended till August 31, 2021.
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