Stocks to Watch: UltraTech Cement, Tata Chemicals, Linde India, Trent, IOC, BSE

Tata Chemicals: The Tata group company reported a net loss of ₹850 crore for the quarter ending March FY24, a significant shift from the profit of ₹709 crore it made in the same period last year. The company acknowledged a non-cash asset write-down of ₹963 crore related to the UK’s Lostock Plant, which was reported as an exceptional loss. The company’s revenue from operations for the quarter decreased by 21.1% YoY, amounting to ₹3,475 crore.

Linde India: The market regulator has instructed the National Stock Exchange (NSE) to engage a valuer to assess the business opportunities relinquished by Linde India and gained by its related party, Praxair India, due to the execution of a joint-venture and shareholders agreement. In 2018, Linde AG, the parent company of LIL, and Praxair AG, the parent company of PIPL, merged to form the NASDAQ-listed Linde Plc. The regulator, through an interim order, stated that the allocation of business opportunities by the listed LIL to a related party should be scrutinized in the same manner as traditional Related Party Transactions (RPTs), which involve a direct exchange of assets or services. The regulator also asked LIL to cover the expenses incurred by NSE in the valuation process.

Trent: The company announced a thirteenfold increase in its consolidated net profit for the March quarter, amounting to ₹704.2 crore. This significant rise was attributed to an exceptional gain of ₹576 crore, which resulted from a reassessment of its lease liabilities and right-of-use assets. The company’s revenue for the quarter surged by 51% to ₹3297.7 crore, following the addition of 104 new stores. By the end of the year, the retailer had a total of 811 stores, including 232 Westside stores, 545 Zudio stores, and 34 stores across other lifestyle concepts. The company expanded its presence by adding 12 Westside and 86 Zudio stores across 65 cities, including 25 new cities. The company reported an operating EBIT margin of 8.2% in Q4, a significant increase from the 2.8% margin reported in the same period last year.

Indian Oil Corporation: IOC is scheduled to announce its financial results for the quarter ending March 31, 2024 on Tuesday, April 30. Analysts; estiments suggest a 5% sequential increase in revenues, reaching ₹2.09 lakh crore. However, despite the anticipated growth in revenue, there is an expected 5% drop in Ebitda to ₹14,700 crore, down from the ₹15,488 crore reported in the previous quarter. The margin is also predicted to fall by 70 basis points to 7.1%. Analysts also forecasts a 6% decrease in the quarter’s profit after tax to ₹7,571 crore, a decline from ₹8,064 crore in Q3FY24.

BSE: Investec has stated that the direction by market regulator SEBI for BSE to pay regulatory fees based on notional turnover rather than premium could result in a cash outflow of ₹120 crore for past dues on the exchange. Due to the uncertainty surrounding the impact on earnings and the high valuation of the stock following its recent surge, Investec has placed their ‘buy’ rating and target price under review. Investec further explained that BSE would need to pay ₹96.3 crore instead of ₹6 lakh for FY24, based on the total derivative volumes in FY24. BSE could make a one-time provision of ₹96.3 crore for the FY24 payment, while the cumulative impact of past volumes from FY07-24 could be around ₹120 crore, assuming past derivative volumes are options for BSE.

Poonawalla Fincorp: The company announced a standalone net profit of ₹331.7 crore for the quarter ending March FY24. This represents a substantial growth of 83.6% compared to the same period in the previous fiscal year. The company’s net interest income for the quarter increased by 57% YoY, reaching ₹641 crore. The company also saw an improvement in asset quality during the quarter. The gross Non-Performing Assets (NPA) decreased by 17 basis points quarter on quarter to 1.16%, and the net NPA declined sequentially by 11 basis points to 0.59%.

Nestle India: On Monday, Nestle India asserted that its infant cereal brand, Cerelac, adheres to local food regulations. The company stated that the amount of added sugars in the baby food is less than the limit set by India’s food regulator. Suresh Narayanan, chairman and managing director, explained that different methods and ingredients could be used to achieve the nutritional profile. He added that the need for sugar in India led to its inclusion in the product, but at levels significantly lower than what the local regulator allows. He emphasized the importance of trusting and having confidence in the local regulator’s decisions. He confirmed that while there is added sugar in the product, its content is clearly declared on the packaging.

UCO Bank: The bank reported a net profit of ₹525.8 crore for the quarter ending March FY24, marking a 9.5% decrease from the previous year. This decline was partially due to increased provisions for bad loans and a lower pre-provision operating profit. However, the bank’s net interest income saw a rise of 10.9% year over year, reaching ₹2,187.4 crore for the quarter. The bank also noted an improvement in asset quality during the quarter. The gross Non-Performing Assets (NPA) fell by 39 basis points QoQ to 3.46%, while the net NPA dropped by 9 basis points quarter on quarter to 0.89%.

Mahindra & Mahindra: The carmaker has introduced the newest model of its subcompact SUV, the XUV 3XO. The base MX1 variant is priced at ₹7.49 lakh, while the high-end AX7L model is available at ₹13.99 lakh. The SUV is set to compete in a fiercely competitive market segment, going head-to-head with popular models like the Tata Nexon and Hyundai Venue. Customers can start booking from May 15, and the deliveries are scheduled to commence from May 26.

Jana Small Finance Bank: The small finance bank reported a net profit of ₹321.7 crore for Q4FY24, marking a nearly fourfold increase from ₹81 crore in the same period last year. This significant growth was fueled by tax write-backs and reduced provisions. The bank’s net interest income for the quarter rose by 26.5% YoY, totaling ₹591 crore. The bank also observed an improvement in asset quality during the quarter. Its gross Non-Performing Assets (NPA) fell by 8 basis points sequentially to 2.11%, while the net NPA dropped by 15 basis points to 0.56%.

Spandana Sphoorty Financial: The microfinance institution reported a net profit of ₹122.2 crore for the quarter ending March FY24, marking a 5.2% growth compared to the same period last year. The company’s net interest income for the quarter increased by 21.2% year over year, reaching ₹399 crore.

Vedanta: Mines Secretary V L Kantha Rao stated on Monday that the government is dedicated to divesting its shares in Hindustan Zinc, a Vedanta group company, through an offer for sale (OFS). The decision will be made after evaluating the market conditions. The government, being the largest minority shareholder in Hindustan Zinc, holds a 29.54% stake in the company. “We are committed to OFS,” Rao affirmed during an event. This announcement follows the mines ministry’s rejection of Hindustan Zinc Ltd’s plan for demerger.

RITES: The company announced that it has been granted a letter of acceptance from Bangladesh Railway for the provision of 200 Broad Gauge (BG) passenger carriages. The contract, valued at $111.26 million, is set to be fulfilled within a span of 36 months.

Birlasoft: The software company reported a consolidated net profit of ₹180 crore for the quarter ending March FY24, marking a 60.5% increase compared to the same period in the previous fiscal year. This growth was fueled by strong operational performance. The company’s revenue from operations for the quarter rose by 11.1% year over year, reaching ₹1,362.6 crore. For FY24, the board has proposed a final dividend of ₹4 per share.

KFin Technologies: The technology-based financial services company announced a consolidated net profit of ₹74.5 crore for the quarter ending March 31. This represents a 30.6% increase compared to the same period in the previous fiscal year. The company’s revenue from operations for the quarter rose by 24.7% YoY, reaching ₹228.3 crore. For FY24, the board has proposed a final dividend of ₹5.75 per share.

Shoppers Stop: The company reported a 62.55% YoY increase in consolidated net profit, reaching ₹23.2 crore for the quarter ending March 31. This growth was partially fueled by a robust topline and additional income. The company’s revenue from operations for the quarter rose by 13.3% YoY, totaling ₹1,046.3 crore. Separately, the board has promoted Kavindra Mishra to the position of managing director and CEO of the company.

Gillette India: The personal care company reported a net profit of ₹99.1 crore for the quarter ending March 31, marking a 3.5% decrease compared to the same period in the previous fiscal year. This was despite strong operational figures and was partially due to lower other income. The company’s revenue from operations for the quarter rose nearly 10% YoY to ₹680.7 crore.

NMDC: The state-owned iron ore company has raised the price of lump ore by ₹400 to ₹6,200 per tonne. The price of fines has also increased by ₹200 per tonne to ₹5,260 per tonne. Previously, the price of lump ore was ₹5,800 per tonne, and fines were priced at ₹5,060 per tonne.

Coromandel International: The company has initiated the project to establish its phosphoric acid-sulphuric acid facility in Kakinada, Andhra Pradesh. The project, with an estimated cost of ₹1,000 crore, is expected to be completed within two years.

eMudhra: The company posted a consolidated net profit of ₹21.2 crore for the quarter ending March FY24, a 34.2% increase from the same period a year ago. The company’s revenue from operations for the quarter rose by 30% YoY to ₹99.7 crore, while EBITDA surged 40% YoY to ₹36.3 crore. The margin expanded by 240 basis points to 35.2% in Q4FY24.

Protean eGov Technologies: IIFL Special Opportunities Fund Series 7 sold 1 million equity shares in the company at an average price of ₹1,221.92 crore, amounting to ₹122.19 crore through open market transactions. Meanwhile, Plutus Wealth Management LLP purchased 5 lakh shares in Protean at an average price of ₹1,220 per share.

KEC International: The infrastructure EPC major secured new orders worth ₹1,036 crore across its various businesses. These include transmission and distribution projects in the Middle East and the Americas.