Stocks in Focus on October 27: Axis Bank, Bajaj Finance, Mahanagar Gas, Union Bank to Sugar stocks - Check top shares today
Domestic equity indices ended at the day's high with strong gains on Tuesday, October 26, 2021.
Domestic equity indices ended at the day's high with strong gains on Tuesday, October 26, 2021. The S&P BSE Sensex gained 383.21 points or 0.63 per cent to 61,350.26. The Nifty 50 index added 143 points or 0.79 per cent to close at 18,268.40. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, October 27, 2021. List of such five stocks:
Axis Bank + Bajaj Finance + Cipla + Torrent Pharma + Nippon Life AMC + Mahanagar Gas + Persistent Systems + Dr Lal Path Labs
Axis Bank: The private lender Axis Bank reported a 86% YoY rise in the profits at Rs 3,133 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 1,683 crore in the year-ago quarter. Net Interest Income (NII) rose 8% to Rs 7,900 crore as against Rs 7,326 crore posted last year. The gross non-performing assets (NPA) of the lender came in at 3.53% in the quarter under consideration, lower than 3.85% reported in the previous quarter ended June 30, 2021. Meanwhile, the net NPA ratio during the quarter stood at 1.08% in Q2FY22 as against 1.2% posted in Q1FY22. Net slippages for the quarter dame down by 82% to Rs 707 crore as compared to the June 2021 quarter. The loan book grew by 10% and retail book by 16%. The lender's fresh slippages for the reported quarter came in at Rs 5,464 crore, lower than Rs 6,518 crore in the June 2021 quarter. Recoveries and upgrades from NPAs during the quarter were Rs 4,757 crore as against Rs 2,543 crore.
Bajaj Finance: The leading non-banking finance company Bajaj Finance has reported a 53% YoY rise in the consolidated profit at Rs 1,481 crore for the quarter ended September 30, 2021. It has posted a profit of Rs 965 crore in the year-ago quarter. Its Net Interest Income (NII) grew by 28% to Rs 5,335 crore as against Rs 4,162 crore posted last year. The company said its Stage 3 gross assets stands at 2.45% in the period under consideration against 2.96% posted in the previous quarter ended June 30, 2021. The net non-performing assets (NNPA) came in at 1.1% as against 1.46% posted in the previous quarter. The company said its assets under management (AUM) grew by 21.74% YoY and 5% QoQ to Rs 1,66,900 crore as of September 30, 2021.
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Cipla: Drug major Cipla reported a 7.5% YoY rise in the consolidated profit at Rs 709 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 659 crore in the year-ago quarter. Its revenue from operation grew 10% to Rs 5,520 crore as against Rs 5,038 crore posted last year. EBITDA grew 4.2% to Rs 1,226 crore as against Rs 1,177 crore posted last year. The pharmaceutical company's margin contracted to 22% in Q2FY22 as against 23.4% posted in Q2FY21.
- India: up 16%
- SAGA: up 8%
- North America up 2%
- Strong delivery across branded & generic markets; COVID contribution Normalizes.
Torrent Pharma: The pharmaceutical company has reported a 2% YoY rise in the profits at Rs 316 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 310 crore in the year-ago quarter. Its revenue from operations grew 6% YoY to Rs 2,137 crore as against Rs 2,017 crore posted last year. EBITDA grew by 4% to Rs 660 crore as against Rs 635 crore posted last year. Margin stood at 31% in Q2FY22 as against 31.5% posted in Q2FY21.
- Branded generic: 13%
- Generic down: 9%
- India: up 13%
- Brazil: up 21%
- US: down 13%
Nippon Life AMC: The asset management company Nippon Life India Asset Management Ltd has reported a 47% YoY rise in the profit at Rs 214 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 145 crore in the year-ago quarter. Its revenue from operations grew 27% to Rs 328 crore as against Rs 259 crore posted last year. The company's quarterly average assets under management (QAAUM) market share stands at 7.33%. Its share of the industry’s retail folios rose from 10.2% to 12.5% in September 2021. NAM India AUM (as of September 30, 2021) stands at Rs 4.01 trillion.
Mahanagar Gas: Natural gas distribution company Mahanagar Gas has reported a 9.2% QoQ drop in profits at Rs 204.3 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 225 crore in the previous quarter ended June 30, 2021. Its revenue from operations grew 34.9% to Rs 830.1 crore as against Rs 615.5 crore posted in the previous quarter. EBITDA declined 0.7% to Rs 301.8 crore as against Rs 304 crore posted in June 2021. Margins contracted to 36.4% in Q2FY22 from 49.4% posted in Q1FY22.
- Total Volumes Up 30.26% to 3.124 v/s 2.398 mmscmd
- CNG Volumes Up 45.65% and PNG Volumes Up 6.15%
Persistent Systems: The technology services company Persistent Systems has reported a 6.9% QoQ rise in the consolidated profit at Rs 162 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 151 crore in the previous quarter ended June 30, 2021. Its revenue from operations grew 9.9% to Rs 1,351 crore as against Rs 1,230 crore posted in the previous quarter. In dollar terms, the revenue grew 9.3% to $18.23 crore as against $16.68 crore posted in the June quarter. EBIT grew 12.5% QoQ to Rs 187 crore as against Rs 166 crore posted in the June quarter. The margin stood at 13.8% in Q2FY22 as against 13.5% posted in Q1FY22.
Dr Lal Path Labs: The service provider of diagnostic and related healthcare tests has reported an 11% YoY rise in the consolidated profit at Rs 96 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 87 crore in the year-ago quarter. Its revenue from operations grew 15% to Rs 498 crore as against Rs 432 crore posted last year. EBITDA grew 11% to Rs 141 crore as against Rs 127 crore posted last year. Margin fell to 28% in Q2FY22 as against 29.3% posted in Q2FY21. Besides, the Board of Directors on Tuesday approved the acquisition of a 100% stake in Suburban Diagnostics (India) for a consideration of Rs 1,150 crore plus certain performance-linked payments capped at Rs 225 crore. The acquisition will be completed within a month.
IRB Infrastructure + Zensar Technologies + Birlasoft + Accelya Solutions
IRB Infrastructure: The highway construction company has reported a consolidated profit of Rs 42 crore for the quarter ended September 30, 2021. It had posted a loss of Rs 20 crore in the year-ago quarter. Its revenue from operations grew 30% to Rs 1,465 crore as against Rs 1,123 crore posted last year. EBITDA grew 33% YoY to Rs 682 crore as against Rs 513 crore posted last year. The margin stands at 47% in Q2FY22 as against 46% posted in Q2FY21. Besides, IRB Infrastructure Developers Limited will raise Rs 5,347 crore through preferential allotment. In the process, it will buy 24.9% stakes in Spanish infrastructure major Ferrovial for Rs 3,180 crore and 16.9% stakes in Singapore’s GIC for Rs 2,167 crore. The issue price for both the preferential allotments is Rs 211.79 per share. The proceeds from the twin investments will be used to reduce debt and investment in projects. The promoter of IRB will continue as the promoter and single largest shareholder post completion of the transactions with an approximate 34% stake and will retain management control of IRB. EGM convened on November 20 for shareholders' approval on the deal.
Zensar Technologies: The software company has reported a consolidated profit of Rs 96 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 2.3 crore in the previous quarter ended June 30, 2021. Revenue from operations grew 12% to Rs 1,050 crore as against Rs 937 crore posted in the June quarter. EBIT fell 12% to Rs 114 crore as against Rs 130 crore posted in the previous quarter. The margin contracted to 11% in Q2FY22 as against 14% posted in Q1FY22. There was an exceptional item of Rs 89 crore in the previous quarter.
Birlasoft: The software company has reported a 10% QoQ decline in consolidated profit at Rs 103 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 114 crore in the previous quarter ended June 30, 2021. Revenue from operations grew 7% to Rs 1,012 crore as against Rs 945 crore posted in the June quarter. EBIT remained flat at Rs 132 crore. The margin dropped to 13% Q2FY22 as against 14% posted in Q1FY22.
Accelya Solutions: The global technology and service provider to the air transport industry has reported a 22% QoQ drop in consolidated profit at Rs 14 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 18 crore in the previous quarter ended June 30, 2021. Revenue from operations fell 1% to Rs 85 crore as against Rs 86 crore posted in the June quarter. EBITDA dropped 16% to Rs 27 crore as against Rs 32 crore. The margin contracted to 31% in Q2FY22 as against 37% posted in Q1FY22.
Union Bank: The Union Bank of India has reduced its home loan rates to its all-time low of 6.40% from 6.80%. The reduced rate will be effective from Wednesday (October 27, 2021).
Sugar Stocks: Food Secretary Sudhanshu Pandey in his comment on 2021-22 Sugar Marketing Year (October 2021-September 2022) said sugar mills have so far signed contracts to export 18 lakh tonnes while the sector should export at least 6 million tonnes this year. He added the government is not providing any financial assistance for this year. Sugar production has been increasing for the last four years. India has exported 7.2 million tonnes of sugar last year. A total of 2.5 million tonnes of sugar was diverted to ethanol blending last year and there is a target to divert 6 million tonnes of sugar to ethanol blending by 2023.
Kotak Mahindra Bank/Axis Bank/Indusind Bank: India's leading private lenders, namely Kotak Mahindra Bank, Axis Bank and IndusInd Bank, reportedly have made binding offers to buy Citi's consumer business in India, valued at about $200 crore. Kotak and Axis are the most aggressive bidders and frontrunners.
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