BackStocks to Watch: Jindal Stainless, Ambuja Cements, Godrej companies, APSEZ, Shriram Finance, KMB
Here are a few stocks likely to be in focus on Thursday, May 2:
PremiumJindal Stainless: On May 1, the company announced a three-pronged investment strategy worth ₹5,400 crore with the aim of achieving global leadership in stainless steel. As part of its expansion strategy, the company entered into a joint venture to develop and operate a stainless-steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA). Jindal Stainless plans to invest ₹700 crore in this partnership. The company also announced an investment of ₹1,900 crore for the expansion of its downstream lines in Jajpur, Odisha. Additionally, the company has allocated ₹1,450 crore for the associated upgrade of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation. The company also announced that it would acquire a 54% equity stake in Chromeni Steels Private Limited. The transactions entail an outlay of around ₹1,340 crore.
Ambuja Cements: On Wednesday, Ambuja Cements announced a standalone net profit of ₹532.29 crore for the quarter ending March 2024, marking a 6% increase from ₹502.40 crore in the same quarter of the previous year. The company's Q4FY24 revenue from operations increased by 12.3% YoY to ₹4,780.32 crore. Operational level EBITDA for the quarter rose by 1.2% to ₹797.8 crore, while the EBITDA margin decreased by 180 basis points to 16.7%. On a consolidated basis, the company reported a 64% increase in net profit at ₹1,055.30 crore. Consolidated revenue from operations in Q4FY24 increased by 12% YoY to ₹8,893.99 crore. The Board of Directors recommended a dividend of ₹2 per equity share for FY24, with Friday, 14 June set as the record date.
Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences: The Godrej family has agreed to divide the conglomerate into two branches. Adi and his brother Nadir will retain the listed entities, while their cousin Jamshyd will take control of the unlisted companies and the land bank. This agreement was shared with the stock exchanges on April 30. As part of the realignment, members of Adi and Nadir's family will make an open offer to the shareholders of Astec Lifesciences. The Godrej trademark will be equally owned and shared by both family groups. The Godrej family is divided into two factions: Godrej Industries & Associates, led by Adi Godrej and his brother Nadir, and Godrej & Boyce Manufacturing Company (G&B), led by cousins Jamshyd Godrej and Smitha Godrej Crishna. The family holds a 64.89% stake in Godrej Agrovet, a 23.74% stake in Godrej Consumer, and a 47.34% stake in Godrej Properties. The group has five listed firms: Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences.
Adani Ports and Special Economic Zone: APSEZ is set to announce its financial results for the quarter that ended in March 2024 on May 1. Analysts predict that the company may report mixed earnings, with expected significant surges in revenue and EBITDA due to increased volumes, but a potential decline in net profit for the period. The focus will be on global container trade and the operations of international ports, with investors also monitoring cargo volume projections for FY25 and capital expenditure forecasts for the current fiscal year. According to Equirus Capital, the company is expected to witness a 12.4 percent YoY decline in net profit, with figures dropping to ₹2,129.60 crore from ₹2,432.30 crore in the corresponding quarter of the previous year. However, sales are expected to surge by 20.7 percent YoY, reaching ₹6,996.40 crore compared to ₹5,796.90 crore in the previous year. Furthermore, the EBITDA margin is anticipated to stand at 60 percent, marking a substantial increase of 377 basis points year-on-year. Separately, APSEZ announced on Wednesday that it has secured an AAA rating from CARE Ratings. This makes the company the first large-sized private infrastructure developer to achieve this recognition.
Shriram Finance: UAE-based sovereign fund Mubadala Investment Company and Warburg Pincus are in discussions with Shriram Finance to acquire a controlling stake in its subsidiary Shriram Housing Finance (SHFL). Shriram Finance confirmed on Tuesday that it is looking to unlock value in the housing finance arm to secure growth capital. The company said in response to a question on whether it is in talks with the global majors Mubadala and Warburg, "We are in discussions to secure growth capital for Shriram Finance. Nothing has been finalised. Discussions are with multiple investors." The deal is likely to be between ₹5,300 crore and ₹6,500 crore, based on reports.
Kotak Mahindra Bank: The bank announced on Tuesday that KVS Manian has resigned as Joint Managing Director of the bank with immediate effect. As a result of his resignation, Manian ceases to be a Director and a Key Managerial Personnel of the Bank. In February this year, it was reported that Federal Bank had shortlisted Manian as a Chief Executive Officer (CEO) candidate.
Adani Wilmar: The company reported a 67% YoY increase in its net profit for Q4FY24, rising to ₹157 crore from ₹94 crore in the same period last year, on Wednesday. However, the company's revenue from operations declined by 5% YoY to ₹13,238 crore. The company noted robust growth in its sales volume, with substantial increases in both the edible oils and foods segments throughout the quarter and the entire fiscal year, attributed to increased retail penetration.
Indus Towers: The company reported a 32.5% YoY increase in net profit at ₹1,853.1 crore for the fourth quarter that ended on March 31, 2024. The company's revenue from operations increased by 6.5% to ₹7,193.2 crore compared to ₹6,752.9 crore in the same period of the previous fiscal year. At the operational level, EBITDA rose by 19% to ₹4,102.6 crore in the fourth quarter of this fiscal year compared to ₹3,446.6 crore in the corresponding period of the previous fiscal year. The EBITDA margin stood at 57% in the reporting quarter compared to 51% in the corresponding period of the previous fiscal year.
Wipro: The company has entered into a multi-million-dollar agreement with telecommunications giant Nokia to revamp the latter’s employee service desk and provide seamless, real-time IT support to a global network of employees. Wipro's team will develop a bespoke AI-powered, cloud-based solution for Nokia's workforce, which consists of approximately 86,700 users globally in 130 countries of operation. Designit, a Wipro unit that specializes in user experience strategy and implementation, will conduct user research to ensure personalized assistance is offered to employees at the right time.
Adani Power: The company reported a 48% decrease in its consolidated net profit, amounting to ₹2,737 crore against ₹5,243 crore reported during the corresponding period last year on May 1. For the quarter, the company's revenue surged 29% YoY, reaching ₹13,787 crore. EBITDA for the same period more than doubled year-on-year to ₹5,273 crore.
Dabur India: The FMCG company is expected to report a net profit of ₹320 crore for the quarter ended March 31, 2024, according to average estimates of four brokerages. This will be a 9% YoY jump over ₹293 crore reported in the year-ago period led by growth in domestic business. The revenue from operations could likely be around ₹2,826 crore for the January-March quarter, up by 5.5% YoY. The company will announce its quarterly earnings on May 2.
Adani Total Gas: The company reported a significant 71.6% YoY increase in net profit, amounting to ₹168 crore for the fourth quarter that ended in March 2024. In the same quarter of the previous year, the company had posted a net profit of ₹97.9 crore. The company's revenue from operations saw a 4.7% increase, rising to ₹1,167 crore from ₹1,114.8 crore in the corresponding period of the preceding fiscal year. At the operational level, EBITDA jumped 47.6% to ₹299.1 crore in the fourth quarter of this fiscal year, up from ₹195.2 crore in Q4 of FY23. The EBITDA margin stood at 24.7% in the reporting quarter, compared to 17.5% in the year-ago period. The board has recommended a dividend of ₹0.25 per equity share of the face value of ₹1 for the financial year 2023-24.
GE T&D India: The company announced on Wednesday that it has secured an order from Powergrid to set up a state transmission asset management centre (STAMC) in Odisha. The centre will help Odisha Power Transmission Corporation Limited (OPTCL) operate the grid through real-time monitoring and control. It will help OPTCL optimize grid operations and integrate renewable energy sources more effectively by enabling the substations to be remotely controlled with advanced grid software solutions, which will be installed at four locations across the state of Odisha.
Havells India: The company reported a 24.1% YoY increase in net profit at ₹448.9 crore for the fourth quarter that ended on March 31, 2024. The company's revenue from operations increased by 12.1% to ₹5,434.3 crore compared to ₹4,850 crore in the same period last year. At the operational level, EBITDA rose by 20% to ₹636.8 crore in Q4FY24 compared to ₹531 crore in Q4FY23. The EBITDA margin stood at 11.7% in Q4 compared to 10.9% in the corresponding period last year. The board recommended a final dividend of ₹6 per equity share of ₹1 each, amounting to 600% of the face value, for the financial year 2023-24.
IndiaMART InterMESH: The e-commerce firm reported a substantial 78.5% YoY increase in net profit, amounting to ₹99.6 crore for the fourth quarter that ended in March 2024. In the same period last year, the company had posted a net profit of ₹55.8 crore. The company's revenue from operations increased by 17.1% to ₹314.7 crore, up from ₹268.8 crore in the corresponding period last year. At the operational level, EBITDA increased by 33.7% to ₹88.4 crore in the fourth quarter of this fiscal year, up from ₹66.1 crore in the corresponding period of the previous fiscal year. The EBITDA margin stood at 28.1% in the reporting quarter, compared to 24.6% in the year-ago period. The board of directors has recommended a final dividend of ₹20 per equity share of ₹10 each for FY24.
Maruti Suzuki India: The automaker reported on Wednesday a 4.7% increase in total sales at 1,68,089 units in April. The company had dispatched a total of 1,60,529 units to its dealers in the same month last year. Total domestic passenger vehicle sales were 1,37,952 units, compared to 1,37,320 units in the year-ago period. Sales of mini segment cars declined to 11,519 units, down from 14,110 units in April 2023. Sales of compact cars also fell to 56,953 units last month, down from 74,935 units in the year-ago month. Utility vehicles clocked sales of 56,553 units last month, up from 36,754 units earlier. Sales of vans were 12,060 units in April, up from 10,504 units a year ago, while that of light commercial vehicle Super Carry stood at 2,496 units, up from 2,199 units in April 2023. MSI said its exports last month stood at 22,160 units, up from 16,971 units in the same month last year.
IFCI: The government-owned non-bank finance company reported a profit for FY24, ending seven consecutive years of losses, following its expansion into government and private corporate advisory services. The company swung to a profit of ₹128 crore for FY24, up from a loss of ₹288 crore in the previous year. Standalone revenue improved by 19% to ₹896 crore.
Castrol India: The lubes maker reported a 6.8% YoY increase in net profit at ₹216.2 crore for the first quarter that ended on March 31, 2024. The company follows the January to December financial year. In the corresponding quarter last year, Castrol had posted a net profit of ₹202.5 crore. The company's profit before tax (PBT) for the first quarter of 2024 reached ₹292 crore, reflecting a 1% rise, compared to ₹288 crore in the first quarter of 2023. The company's revenue from operations increased by 2.4% to ₹1,325.2 crore, up from ₹1,293.9 crore in the corresponding period of the preceding fiscal year. The revenue for the first quarter of 2024 saw an increase of 5% from ₹1,264 crore in the preceding quarter (fourth quarter of 2023).
Tata Motors: The company announced on Wednesday that its total wholesales rose by 11.5% YoY to 77,521 units last month, compared to 69,599 units in April 2023. The company's total domestic dispatches rose by 12% to 76,399 units last month, up from 68,514 units in April 2023. Total passenger vehicle sales rose by 2% to 47,983 units last month, up from 47,107 units in April 2023. Total commercial vehicle sales stood at 29,538 units last month, a jump of 31% compared to 22,492 units in April 2023.
TVS Motor: The company announced on Wednesday that its total sales in April 2024 increased by 25% YoY to 3,83,615 units, compared to the same month last year. The company dispatched 3,06,224 units to its dealers in the same month last year. Total two-wheeler sales last month stood at 3,74,592 units, compared to 2,94,786 units in April 2023. Two-wheeler sales in the domestic market grew by 29% to 3,01,449 units last month, up from 2,32,956 units in April 2023. Total exports registered a growth of 12%, with sales increasing from 71,663 units in April 2023 to 80,508 units last month. However, three-wheeler sales declined to 9,023 units in April 2024, down from 11,438 units in the same month last year.
Eicher Motors: The company announced on Wednesday that its subsidiary VE Commercial Vehicles reported an 18.1% YoY decline in total sales to 5,377 units in April 2024. VE Commercial Vehicles (VECV), a joint venture of the Volvo Group and Eicher Motors, sold 6,567 units in April 2023. April 2024 sales included 5,254 units of the Eicher brand and 123 units of the Volvo label. In the domestic commercial vehicles market, Eicher branded trucks and buses recorded sales of 4,898 units last month, compared to 6,142 units in April 2023. Exports of Eicher branded trucks and buses rose 38.5% to 356 units, up from 257 units in April 2023.
Coal India: The company announced on Wednesday that its production increased by 7.3% to 61.8 million tonnes (MT) in April. The company had produced 57.6 MT of coal in the corresponding month of the previous fiscal year. CIL also registered a rise of 3.2% in coal offtake to 64.3 MT last month, over 62.3 MT in the year-ago period.
ITC: Fortune Hotels, a member of ITC's hotel group, is planning to open a new hotel every month in the current financial year, according to the company's Managing Director Samir MC. The company recently opened its first international hotel, Fortune Resort & Wellness Spa Bhaktapur, in Nepal, marking a significant milestone in the company's "beyond borders" expansion strategy, which envisions its presence in South Asia and proximal markets. Following this prestigious opening, the company is poised to open at least four to six more hotels in the first half of the fiscal year in unique destinations like Kevadia (Ekta Nagar, Gujarat), Candolim (Goa), Palampur (Himachal Pradesh), and a beach resort in Chennai among others, and an equal number in the second half of the fiscal year.
Netweb Technologies: The domestic computer server maker posted a nearly three-fold jump in its net profit to ₹29.6 crore in the fourth quarter ended on March 31, 2024, due to a boom in demand for artificial intelligence-based solutions. The company had posted a net profit of ₹10.5 crore in the same period a year ago. Revenue from operations of Netweb Technologies more than doubled to ₹265.88 crore during the reported quarter from ₹123.39 crore in the year-ago period. Netweb Technologies' income from AI Systems has grown by about 2.6 times on a year-over-year basis and is now over 11 percent of operating income.
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