Stocks to Watch;  ICICI Bank, Hindustan Aeronautics, ABFRL, RVNL, Ashok Leyland and others in news

Pre-Market Highlights – November 10, 2023:

ICICI Bank: The Reserve Bank of India has granted approval to ICICI Bank, the country’s second-largest private sector lender, for the complete ownership of ICICI Securities, subject to specified conditions. The bank’s proposal to delist equity shares of ICICI Securities is in progress through a scheme of arrangement.

Hindustan Aeronautics: In a significant development, the state-owned defense company Hindustan Aeronautics and Airbus have inked a contract to establish Maintenance, Repair, and Overhaul (MRO) facilities for the A-320 family of aircraft in Nashik, Maharashtra. Airbus will provide the A320 family tool package and specialized consulting services to HAL for the establishment of the A320 MRO facility.

Rail Vikas Nigam: State-owned railway company RVNL has reported a consolidated profit of Rs 394.5 crore for Q2 FY24, marking a 3.5 percent YoY increase. The marginal topline growth and weak operating numbers contributed to the modest increase. Consolidated revenue from operations edged up by 0.1 percent to Rs 4,914.3 crore during the same period.

Aditya Birla Fashion & Retail: Despite a higher topline, Aditya Birla Fashion & Retail has posted a consolidated net loss of Rs 200.3 crore for Q2 FY24, compared to a profit of Rs 29.4 crore in the corresponding period last fiscal year. Weak operating numbers influenced the results, with consolidated revenue from operations increasing by 4.9 percent YoY to Rs 3,226 crore.

Ashok Leyland: The country’s second-largest commercial vehicle maker, Ashok Leyland, has received board approval for a Rs 1,200 crore investment in Switch Mobility through its holding company, Optare PLC UK. The funds will be allocated for capital expenditure, research and development, and operational needs in both the UK and India, subject to statutory approvals.

Piramal Enterprises: Non-banking finance company Piramal Enterprises reported a profit of Rs 48 crore for Q2 FY24, a significant improvement from the Rs 1,536 crore loss in the year-ago period. The drop in loan loss provisions and fair value loss contributed to the positive outcome, while net interest income fell 9 percent YoY to Rs 750 crore for the quarter.

Torrent Power: Power utility company Torrent Power recorded a 9.2 percent YoY increase in consolidated profit at Rs 526 crore for Q2 FY24, driven partly by lower tax costs and a higher operating margin. Revenue from operations grew nearly 4 percent YoY to Rs 6,961 crore, attributed to increased contributions from various sectors within the company.

Muthoot Finance: Gold loan financing company Muthoot Finance reported a standalone profit of Rs 991 crore for Q2 FY24, reflecting a 14.3 percent YoY growth. Net interest income for the quarter stood at Rs 1,858.4 crore, marking an 18.2 percent increase over the corresponding period last fiscal.

AstraZeneca Pharma: Pharmaceutical company AstraZeneca Pharma witnessed a substantial 60.8 percent YoY growth in profit at Rs 52.4 crore for Q2 FY24, driven by exceptional gains and a higher topline. Revenue from operations increased by 31.7 percent to Rs 311 crore compared to the corresponding period last fiscal year.

G R Infraprojects: G R Infraprojects has emerged as the lowest bidder (L-1) for the tender invited by RITES on behalf of Shri Mata Vaishno Devi Shrine Board, Katra (J&K) for the design, engineering, construction, development, finance, operation, and maintenance of the passenger ropeway between Tarakote and Sanjichhat on a BOOT basis. The project cost is estimated at Rs 200 crore.

Aurobindo Pharma: Pharmaceutical firm Aurobindo Pharma has reported a substantial 85 percent YoY growth in consolidated profit, reaching Rs 757.2 crore for the July–September period of FY24. The surge is attributed to robust operating numbers and a strong topline, with revenue from operations witnessing a 25.8 percent YoY increase, reaching Rs 7,219.4 crore. Notably, US formulations (excluding Puerto Rico) rose by 35.7 percent, European formulations were up 16.7 percent, and growth markets revenue increased by 24.7 percent.

Genus Power Infrastructures: Smart metering solutions company Genus Power Infrastructures has posted an impressive 653.6 percent YoY growth in consolidated profit, totaling Rs 49.2 crore for Q2 FY24. The surge is fueled by strong operating numbers and higher other income, while revenue from operations marked an 18.4 percent YoY increase, reaching Rs 259 crore.

NBCC (India): State-run construction company NBCC has recorded a 16.6 percent YoY decline in net profit, standing at Rs 79.6 crore for the quarter ended September FY24. Despite higher other income and a decent operating margin growth, the results were impacted by an exceptional loss. Revenue from operations, however, grew by 1.2 percent YoY, totaling Rs 2,053.3 crore during the quarter.

Aegis Logistics: Smallcap World Fund Inc. has divested 18.26 lakh equity shares, equivalent to half a percent stake, in Aegis Logistics through open market transactions at an average price of Rs 294 per share. As of September 2023, its shareholding in the company was 2.18 percent, translating to 76.36 lakh shares.

NCC: Construction company NCC has witnessed a significant 37.1 percent YoY fall in consolidated net profit, amounting to Rs 86.5 crore for the July–September period of FY24. The downturn is attributed to weak operating numbers following a sharp rise in the cost of materials and subcontractor work bills. Nevertheless, revenue from operations recorded a substantial 40 percent YoY increase, reaching Rs 4,719.6 crore during the quarter.

Campus Activewear: Footwear manufacturing company Campus Activewear has reported a notable decline in net profit, standing at Rs 0.32 crore for Q2 FY24. The decrease of 97.8 percent compared to the year-ago period is influenced by a lower topline and weak operating numbers. Revenue from operations plunged 22.4 percent YoY to Rs 258.66 crore during the quarter.

BEML: Public sector enterprise BEML has registered a remarkable 218.5 percent YoY jump in consolidated profit, reaching Rs 51.8 crore for the September FY24 quarter. The boost is supported by a favorable topline and healthy operating numbers post a fall in the cost of materials. Revenue from operations rose by 13.9 percent YoY, totaling Rs 916.8 crore during the quarter.

Glaxosmithkline Pharmaceuticals: Healthcare company Glaxosmithkline Pharmaceuticals has recorded a consolidated profit of Rs 217.5 crore for the quarter ended September FY24, marking a 12.5 percent YoY increase driven by better operating numbers. Revenue from operations for the quarter reached Rs 957 crore, reflecting a 4.4 percent increase over the corresponding period last fiscal.

Micropro Software Solutions: IT services company Micropro Software Solutions is set to list its equity shares on the NSE Emerge on November 10, with an issue price of Rs. 81 per share. The equity shares will be available for trading in the trade-for-trade segment.

ESAF Small Finance Bank: ESAF Small Finance Bank is scheduled to list its shares on the bourses on November 10, with the final issue price fixed at Rs. 60 per share. The date of the allotment of shares was November 9.

Zed Entertainment Enterprises: Media and entertainment company Zed Entertainment Enterprises has reported a consolidated profit of Rs 123 crore for the quarter ended September FY24, showing a 9 percent increase despite strong topline growth impacted by a weak operating margin. Consolidated revenue from operations grew by 20.5 percent, reaching Rs 2,437.8 crore compared to the year-ago period. EBITDA rose by 5.6 percent YoY to Rs 332.8 crore, with the margin down 200 basis points YoY at 13.6 percent in Q2 FY24.