Stocks to Watch; HDFC Bank, Jio Financial Services, ICICI Securities, Tata Power and others in news

Check out the companies making headlines before the opening bell today, on October 17, 2023.

HDFC Bank: HDFC Bank, India’s largest private sector lender, posted a robust standalone profit of Rs 15,976 crore for the quarter ending September FY24, marking an impressive 50.6 percent increase compared to the previous year. This exceeded analysts’ expectations. Net interest income grew by 30.3 percent to Rs 27,385 crore, with a core net interest margin of 3.65 percent and a reported net interest margin of 3.4 percent for the quarter. Due to a merger, year-on-year and quarter-on-quarter comparisons are not applicable. The bank also reported substantial growth in gross advances and total deposits, which rose by approximately Rs 1.1 lakh crore year-on-year to Rs 23.54 lakh crore and Rs 21.72 lakh crore, respectively. Pre-provision operating profit increased by 30.5 percent to Rs 22,694 crore during the same period. The bank maintained a healthy asset quality, with gross NPA at 1.34 percent and net NPA at 0.35 percent as of September FY24.

ICICI Securities: ICICI Securities delivered strong results for Q2 FY24, with a 41 percent year-on-year profit growth to Rs 423.6 crore. The company’s revenue also saw significant growth, increasing by 45.5 percent to Rs 1,249 crore compared to the same period in the previous year. On the operational front, EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 54.8 percent year-on-year to Rs 810 crore, and the margin expanded by 390 basis points to reach 64.9 percent for the quarter. The firm approved an interim dividend of Rs. 12 per share.

Jio Financial Services: Jio Financial Services demonstrated healthy growth in the quarter ending September FY24, with a remarkable 101.3 percent quarter-on-quarter profit increase to Rs 668.18 crore. Revenue from operations also grew by 46.8 percent quarter-on-quarter, reaching Rs 608.04 crore. Simultaneously, the board appointed AR Ganesh as Group Chief Technology Officer of the company, effective from October 16.

CEAT: CEAT, the tire company, reported a consolidated profit of Rs 208 crore for the quarter ending September FY24, a substantial increase compared to Rs 7.8 crore in the same period last year. This improvement was supported by healthy operating numbers and a reduction in input costs. In the same quarter of the previous fiscal year (Q2 FY23), profit was impacted by an exceptional loss of Rs 23.7 crore. Revenue from operations grew by 5.5 percent year-on-year to Rs 3,053.3 crore for the quarter.

SBI Cards and Payment Service: Amit Batra has tendered his resignation as Executive Vice President and Head of Open Market and Corporate Sales of the company, citing personal reasons, with his departure effective from December 26.

Aurobindo Pharma: Aurobindo Pharma inaugurated a new green-field manufacturing unit for Eugia Steriles in Vishakhapatnam. Eugia Steriles is a wholly-owned subsidiary of Eugia Pharma Specialities and a step-down subsidiary of Aurobindo. This unit will manufacture general injectables and is expected to supply them globally in phases. The project cost of the unit is approximately Rs 600 crore, and commercial production will commence during Q4 of FY24 in phases.

JK Paper: The company received board approval for the acquisition of Manipal Utility Packaging Solutions for Rs 88.7 crore, with the acquisition expected to be completed within six weeks of executing a Share Purchase Agreement (SPA) with the target entity.

Godrej Properties: The City and Industrial Development Corporation of Maharashtra (CIDCO) issued an order to cancel the allotment of two plots in Sanpada, Navi Mumbai. Godrej Properties had emerged as the highest bidder for these plots. The real estate developer believes that the cancellation is on untenable grounds and in contravention of the order by the Bombay High Court dated May 3, 2023. While the cancellation order will not significantly impact the company’s financial or operational operations, Godrej Properties has challenged it by filing a Writ Petition before the Bombay High Court.

Oil India: The state-run oil and gas exploration company received board approval for the charter hire of one anchor-moored drillship or semi-submersible drilling unit, along with associated equipment and services, at a total estimated cost of Rs 1,282.55 crore. The board also approved an extension of the completion date for the construction of the oil collecting station at Nadua and the gas gathering station at East Khagorijan, extending it to April 30, 2024.

Tata Power: Tata Power’s subsidiary, Tata Power Renewable Energy, signed a power delivery agreement (PDA) with auto component manufacturer Endurance Technologies through a special purpose vehicle (SPV) TP Green Nature for the development of a 12.5 MW AC captive solar plant. The plant will be located in Aachegaon, Maharashtra, and is expected to generate 27.5 million units (MUs) of electricity annually. This initiative will help reduce Endurance Technologies’ carbon footprint and mitigate approximately 9,125 metric tonnes (MT) of carbon emissions each year. The project is anticipated to be completed within 12 months of signing the PDA.

Lemon Tree Hotels: The company has inked an agreement for a 55-room hotel property in Dehradun, Uttarakhand, under the brand Keys Prima by Lemon Tree Hotels. The hotel is expected to become operational by FY27 and will be managed by the company’s subsidiary, Carnation Hotels.

Delta Corp: BofA Securities Europe SA and Societe Generale have executed open market transactions, with BofA Securities selling 30.08 lakh equity shares in the casino gaming company at an average price of Rs 127.97 per share and Societe Generale offloading 13.58 lakh shares at an average price of Rs 128.48 per share. The total value of these transactions amounted to Rs 55.9 crore.

Piramal Pharma: Piramal Pharma’s pharma solutions (PPS) business, a contract development and manufacturing organization (CDMO), has unveiled a high-throughput screening facility that enhances the existing in-vitro biology capabilities at its drug discovery services site in Ahmedabad. This expansion substantially bolsters primary and secondary screening capabilities for compounds prepared at the Ahmedabad site.

Cyient DLM: Cyient DLM, an electronic manufacturing services and solutions company, has reported a significant 106.4 percent year-on-year profit growth, reaching Rs 14.6 crore for the quarter ending September FY24. This growth is attributed to other income and strong revenue from operations, which surged by 71.5 percent YoY to Rs 291.8 crore for the quarter.

Just Dial: The Karnataka Industrial Areas Development Board has revoked the land allotment in Bengaluru Urban District, citing a breach of conditions specified in the lease deed. Just Dial is evaluating the situation and will take necessary legal actions. The financial impact of this land allotment cancellation is estimated to be up to Rs 19 crore.

KEC International: RPG Group company, KEC International, has secured new orders worth Rs 1,315 crore across various business segments, including transmission and distribution projects in India, the Middle East, Australia, and the Americas.

Som Distilleries and Breweries: The company has entered into a strategic contract manufacturing agreement in Jammu and Kashmir for producing IMFL (Indian-made foreign liquor). This partnership aims to provide high-quality products to the Canteen Stores Department (CSD) and expedite the supply of products to the northern and border regions of the country.

Data Patterns (India): The defense and aerospace electronics solutions company has announced a licensing and technology transfer (ToT) agreement with IN-SPACe, which contributes to the development of the Indian space ecosystem. This agreement will grant Data Patterns access to miniature SAR radar capability.

Satin Creditcare Network: The board members are scheduled to convene on October 19 to contemplate raising funds through the issuance of various instruments or securities, including equity shares or equity-based instruments, in one or more installments.

Vakrangee: The technology company has appointed Ashish Ladhani as the vice president of the technology department, effective from October 16. Ashish Ladhani previously served as the Group Head of Technology at Ebixcash Payment Services, a part of the Ebix Group.

Housing & Urban Development Corporation: The Central Government has designated Sanjay Kulshrestha as the Chairman and Managing Director (CMD) of HUDCO, effective from October 16. Sanjay Kulshrestha previously held the position of Executive Director (ED) at REC.

RSWM: Arvind Kumar Maurya has been appointed as the Chief Executive & Business Head for the Knits Business by the company’s board of directors, effective from October 16, as part of senior management personnel.

Kirloskar Electric Company: The management has enforced a lockout at the company’s Unit 15 in Bengaluru rural district, effective from October 16.