Stocks to Watch; Tata Motors, M&M Financials, Britannia Industries, Maruti Suzuki, L&T and others in news

November 3, 2023

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In the spotlight today are several prominent companies making significant strides in their respective sectors:

Tata Motors: The renowned Tata Group company has reported an impressive consolidated net profit of Rs 3,764 crore for the quarter ending September FY24, marking a remarkable turnaround from a loss of Rs 945 crore during the same period last year. This success can be attributed to robust growth across various segments. Notably, the revenue from operations experienced a substantial 32 percent year-on-year increase, reaching Rs 1,05,128 crore in Q2 FY24. Furthermore, Jaguar Land Rover (JLR) contributed to this growth, with a 30.4 percent year-on-year surge in their topline, amounting to $6,857 million. JLR’s EBITDA margin also improved by 430 basis points, reaching 14.9 percent, and their EBIT margin saw a substantial 630 basis point growth, reaching 7.3 percent. In a promising development, JLR has revised its FY24 EBIT margin guidance from 6 percent to 8 percent. Additionally, Tata Passenger Electric Mobility (TPEM) and Jaguar Land Rover Plc (JLR) have entered into a Memorandum of Understanding (MoU) for licensing JLR’s Electrified Modular Architecture (EMA) platform, facilitating the development of TPEM’s premium pure electric vehicle series ‘Avinya’ on the EMA platform.

Mahindra & Mahindra Financial Service: The company estimates total disbursements for October to be around Rs 5,250 crore, a figure consistent with the previous year. Year-to-date disbursements for October 2023 reached Rs 30,700 crore, reflecting a 16 percent year-on-year growth. Notably, collection efficiency improved to 94 percent in October, up from 91 percent in the same month the previous year. Assets classified as Stage-3 and Stage-2 remained relatively stable compared to September 2023.

Maruti Suzuki India: The country’s leading car manufacturer reported a substantial increase in total production, with 1.76 lakh units in October this year, representing a growth of 13.05 percent over the 1.56 lakh units produced in the same month last year, inclusive of production by Suzuki Motor Gujarat.

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Larsen & Toubro: The infrastructure giant has successfully divested its entire 100 percent stake in L&T Infrastructure Engineering (LTIEL) to STUP Consultants, a subsidiary of Assystem SA of France, for a sum of Rs 60 crore. This strategic move aligns with L&T’s commitment to focus on its core businesses and assets. LTIEL’s revenues for FY23 stood at Rs 92 crore, and the transaction is slated for completion by January 15, 2024.

JK Lakshmi Cement: The cement company posted an impressive 55 percent year-on-year growth in consolidated profit, reaching Rs 96 crore for the July–September period of FY24. This remarkable performance can be attributed to higher volume, an improved product and sales mix, and a reduction in fuel costs. Notably, revenue from operations also witnessed a substantial 14.6 percent year-on-year increase, totaling Rs 1,574.5 crore during the quarter. Sales volume recorded a 13.8 percent year-on-year rise, reaching 28.78 lakh metric tonnes.

Britannia Industries: The bakery products company has officially commenced production at its Bihta plant in Bihar, marking a significant development in its operations.

Indian Energy Exchange: The energy exchange has reported a consolidated profit of Rs 86.5 crore for the July–September period of FY24, reflecting a notable growth of 21.4 percent compared to the corresponding period last fiscal. This growth can be attributed to factors such as other income, topline, and EBITDA margin. During the quarter, revenue from operations also witnessed a healthy 14 percent year-on-year increase, amounting to Rs 108.5 crore.

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Container Corporation of India: The state-owned company has demonstrated a substantial 21.3 percent year-on-year growth in consolidated profit, reaching Rs 368.5 crore for the July–September period of FY24. This growth was largely supported by other income and topline. However, a sharp increase in rail freight expenses limited profitability and impacted EBITDA margin. Consolidated revenue from operations experienced a 10.5 percent year-on-year increase, totaling Rs 2,195 crore for the quarter.

Sheela Foam: The polyurethane foam manufacturing company reported a consolidated profit of Rs 44.3 crore for the July–September period of FY24, reflecting a 17.3 percent decline compared to the year-ago period. Revenue from operations also declined by 10.2 percent year over year, reaching Rs 613.2 crore during the quarter.

Dilip Buildcon: The infrastructure company has announced that the board of directors will consider potential fundraising options on November 7. The company will also release the unaudited standalone and consolidated financial results for the quarter and half-year ending September 2023 on the same day.

Religare Enterprises: In the quarter ending September FY24, the company reported a consolidated profit of Rs 40.4 crore, marking a substantial turnaround from a loss of Rs 176.7 crore in the same period the previous year. Despite a notable decrease in other income, revenue from operations demonstrated a robust 36 percent year-on-year growth, reaching Rs 1,584.4 crore during the quarter.

Shilpa Medicare: The company has successfully acquired Pilnova Pharma Inc. in the United States, which will now become its wholly-owned subsidiary at a par value of $1 per share. The transaction is set to be finalized by November 15, and this acquisition is expected to empower the company with a front-end presence in the US market, enabling it to tap into the full potential of its niche portfolios.

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IFB Industries: The company reported a 10.7 percent year-on-year decline in consolidated profit, totaling Rs 21.53 crore for the quarter ending September FY24, primarily due to a lower topline. Consolidated revenue from operations also experienced a modest 1.6 percent slip, amounting to Rs 1,101 crore compared to the same period the previous year.

Gujarat Gas: Despite a subdued topline performance, the gas distribution company recorded a substantial 37.2 percent year-on-year growth in consolidated profit, reaching Rs 296 crore for the quarter ending September FY24. This growth was driven by a healthy EBITDA margin, and revenue from operations showed a 1.7 percent year-on-year increase, totaling Rs 3,991.2 crore for the quarter.

Ratnamani Metals Tubes: The pipes and tubes manufacturing company achieved an impressive 66.4 percent year-on-year growth in consolidated profit, amounting to Rs 164.3 crore for the quarter ending September FY24, thanks to a strong operating performance. Furthermore, revenue from operations witnessed a significant 25.7 percent year-on-year increase, reaching Rs 1,131 crore during the quarter.

Shanthala FMCG Products: The FMCG product distribution company is set to list its equity shares on the NSE Emerge on November 3, with an issue price of Rs. 91 per share. These equity shares will be available for trading in the trade-to-trade segment.

Paragon Fine and Speciality Chemical: The specialty chemical intermediate manufacturing company is making its debut on the NSE Emerge on November 3, with the final issue price fixed at Rs. 100 per share. Its equity shares will also be available for trading in the trade-to-trade segment.