Stocks to Watch; Axis Bank, Colgate Palmolive, Infosys, Vodafone Idea, Aditya Birla Sun Life AMC and others in news

As the market opens on October 27, 2023, let’s take a look at the key developments from noteworthy companies making headlines:

Axis Bank: The private sector lender announced that its board of directors has given the green light to the appointment of Munish Sharda as a whole-time director, who will be designated as the Executive Director of Axis Bank. Mr. Sharda’s tenure is set for three years, starting from November 1. It’s important to note that his appointment is subject to approval from the bank’s shareholders and the RBI. Meanwhile, Rakesh Makhija, the former chairman of Axis Bank, has officially stepped down from his position and is no longer a member of the bank’s board, effective October 26, as his tenure has concluded.

Colgate Palmolive: The oral care company reported a substantial 22.3 percent year-on-year growth in profit, totaling Rs 340 crore for the quarter ending September FY24. This impressive performance was driven by robust EBITDA margins, which exceeded expectations and were influenced by pricing strategies and operational efficiencies. Revenue from operations also saw a healthy 6 percent year-on-year growth, reaching Rs 1,471 crore for the quarter. The company’s board has declared the first interim dividend of Rs 22 per share for the current fiscal year.

Lemon Tree Hotels: The company has inked a license agreement for a 50-room property located in Visakhapatnam, Andhra Pradesh, which will operate under the Red Fox Hotels brand. This hotel is expected to be operational by FY 2026.

Oberoi Realty: The Mumbai-based real estate firm has divested its complete shareholding in a joint venture it held with Sangam City Township, resulting in a transaction worth Rs 3.6 crore. Oberoi Realty’s share in the joint venture stood at 31.67 percent.

Infosys: The IT services company revealed that its US branch has been subjected to penalties amounting to $300 for non-remittance of past-due amounts.

Aditya Birla Sun Life AMC: The company reported a standalone profit of Rs 176.5 crore for the quarter ending September FY24, reflecting a 7.1 percent decrease compared to the same period in the previous year. This decline was partially influenced by lower other income. On a positive note, revenue from operations increased by 7.7 percent year-on-year, reaching Rs 329.2 crore in Q2 FY24.

LTI Mindtree: Rajesh Sundaram has been promoted to the role of Chief Business Officer within the manufacturing business unit of the IT services company, effective from October 26.

Vodafone Idea: The telecom operator disclosed a net loss of Rs 8,738 crore for the quarter ending July-September FY24, representing an increase from the loss of Rs 7,596 crore in the same period of the previous fiscal year. On a more positive note, revenue from operations experienced a nearly 1 percent year-on-year growth, amounting to Rs 10,716 crore, and EBITDA increased by 4.5 percent year-on-year, reaching Rs 4,283 crore. This was accompanied by a 140 basis point expansion in margin, which reached 40 percent for the quarter. Additionally, the average revenue per user (ARPU) increased to Rs 140 in Q2 FY24, up from Rs 131 in Q2 FY23 and Rs 139 in Q1 FY24.

Quick Heal Technologies: The antivirus and cybersecurity solutions company recorded a 41.7 percent year-on-year decline in profit, totaling Rs 12.9 crore for the quarter ending July-September FY24. This decline was attributed to a drop in revenue from operations, which decreased by 22.35 percent year-on-year, reaching Rs 78.4 crore in Q2 FY24.

RailTel Corporation of India: The state-owned railway company reported a profit of Rs 68.15 crore for the quarter ending September FY24, marking a 23.4 percent increase over the same period in the previous year, despite a 420 basis point contraction in EBITDA margin. Revenue from operations also experienced a substantial 40 percent year-on-year growth, reaching Rs 599.2 crore for the quarter.

NLC India: The coal mining company posted a consolidated profit of Rs 1,085 crore for the quarter ending September FY24, marking a remarkable 164 percent year-on-year increase. This impressive growth can be attributed to a one-time gain of Rs 1,278.5 crore. However, revenue from operations for the quarter stood at Rs 2,978 crore, reflecting a decline of 14.66 percent compared to the same period in the previous year.

Dixon Technologies: The electronic manufacturing services company reported a robust 47 percent year-on-year growth in profit, amounting to Rs 113 crore for the quarter spanning July to September in FY24. Moreover, revenue from operations recorded a significant 28 percent year-on-year rise, reaching Rs 4,943 crore. The company’s EBITDA also witnessed a healthy climb of 37 percent, reaching Rs 200 crore during the same period.

Kamat Hotels (India): The company has successfully concluded the sale of its unit, Hotel IRA by Orchid in Mumbai, to Lateral Hospitality for a total of Rs 125 crore. This transaction has enabled Kamat Hotels to reduce its debt, primarily for the redemption of non-convertible debentures, by Rs 125 crore. Consequently, the company’s total debt now stands at Rs 172.50 crore. Additionally, Kamat Hotels has entered into a lease agreement with Lateral Hospitality for managing the operations of the hotel.

Karnataka Bank: The bank announced that its committee of directors of the board has given the green light for the allotment of 3.34 crore equity shares to HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Quant Mutual Fund, Bharti AXA Life Insurance Company, and Bajaj Allianz General Insurance Company. These shares are priced at Rs 239.52 per share, totaling Rs 800 crore. This allotment is done on a preferential basis.

Astral: The building material company has initiated commercial production in the adhesives division at the Dahej plant.

Home First Finance Company India: The housing finance company disclosed a nearly 37 percent year-on-year growth in profit, amounting to Rs 74 crore for the quarter ending July-September FY24. During the same period, disbursements surged by 36.6 percent year-on-year, reaching Rs 959 crore, and total income increased by 47 percent, totaling Rs 278 crore.

Laxmi Organic Industries: The acetyl intermediates and specialty chemicals manufacturing company reported a substantial 24.6 percent year-on-year growth in consolidated profit, reaching Rs 10.7 crore for the quarter ending September FY24. This growth was achieved despite muted topline performance and was driven by a strong EBITDA performance. The company’s revenue from operations saw a minimal 0.01 percent year-on-year growth, amounting to Rs 652.3 crore for the quarter.

Novartis India: The pharma company is currently grappling with a supply shortage of one of its products, Simulect 20 mg. Nevertheless, the company is diligently working to address and mitigate the supply issue on a sustainable basis.

Venus Pipes & Tubes: The stainless steel pipes and tubes manufacturer has achieved a remarkable 97.1 percent year-on-year growth in profit, totaling Rs 20.3 crore for the quarter ending September FY24. This growth was fueled by healthy exports and a thriving seamless pipes business. Additionally, the company’s revenue from operations recorded a strong 51.4 percent year-on-year growth, reaching Rs 191.4 crore for the quarter. EBITDA surged by an impressive 124.5 percent, totaling Rs 34.8 crore, accompanied by a notable margin expansion of 592 basis points, reaching 18.2 percent.

AGI Greenpac: The packaging products company reported a substantial 65.4 percent year-on-year growth in profit, totaling Rs 56.1 crore for the quarter ending September FY24. Revenue also witnessed a commendable 20 percent year-on-year rise, reaching Rs 615.3 crore. EBITDA climbed by 59 percent, totaling Rs 139 crore during the quarter.

Womancart: The retail platform is set to make its debut on the NSE Emerge on October 27. The issue price for its equity shares is set at Rs. 86 per share, and these shares will be available for trading in the trade-for-trade segment.