Stocks To Watch: L&T Infotech, Wipro, NMDC, Havells India, Justdial, Sona Comstar

Indian shares rose, with the Nifty posting its longest string of gains in a month, as investors focus on the ongoing earnings season and incoming key economic data. The S&P BSE Sensex closed 0.5% higher to 53,158.85, a new record close for the index. The 30-share index gained as much as 0.7% to a new intraday all-time high of 53,266.12. Likewise, the NSE Nifty 50 Index advanced 0.4% to 15,924.20, a record close.

Stocks To Watch

Firstsource: Released its annual report. The company ended FY21 with revenue from operations up 24% to Rs 5,078 crore. Operating margins hit 11.8 and profit after tax was Rs 361.7 crore. Chairman Sanjiv Goenka said FY2021 has created a “solid foundation” for sustained progress and the forecast for the coming year includes significant recovery in the healthcare business as well as sustained growth in banking and the communications, media and tech sector.

Pidilite: Appointed Sudhanshu Vats as Deputy Managing Director.

Reliance Industries, Justdial: Clarified that it won’t comment on Justdial acquisition reports. “The company evaluates various opportunities on an ongoing basis,” RIL said.

Xelpmoc Design and Tech: Issued 7.2 lakh shares for a sum of Rs 27 crores to Newport Asia Advisors Fund, Newport Asia Growth & Income Fund, Newport Asia Institutional Fund and Newport Asia Partners Fund

NMDC: Proposed to offer up to 89 lakh shares to the eligible employees of the company at a price Rs 165.50 per share in an offer for sale from July 16 to July 18.

BEML: Incorporated a wholly-owned subsidiary named BEML Land Assets Limited based on the concurrence given by the Ministry of Defence, Department of Investment and Public Asset Management and NITI Aayog for demerger of surplus land and assets of the company as part of strategic disinvestment process undertaken by the government.

Havells India: CARE Ratings has reaffirmed AAA rating to the company’s long-term bank facilities. It has reaffirmed the A1+ rating to its short-term bank facilities and commercial paper.

Mindspace Business Parks REIT: Crisil has assigned the following ratings to the bank’s instruments:

• Long term Principal Protected Market Linked Debentures upto Rs 500 crore: AAAr/Stable 2

• Long term Principal Protected Market Linked Debentures upto Rs 375 crore: AAAr/Stable 3

• Non-Convertible Debentures upto Rs 200 crore: AAA/Stable

• Non-Convertible Debentures upto Rs 300 crore: AAA/Stable

• Corporate Credit Rating: AAA/Stable

• Commercial Papers upto Rs. 250 Crores: A1+

Reliance Power: Made preferential allotment of 59.5 crore shares and 73 crore warrants at a value of Rs 10 per share convertible into equivalent number of equity shares to promoter Reliance Infrastructure.

Gati: Transferred its 69.79% equity holding in Gati Kausar to Mandala Capital on July 14, 2021. With this, Gati Kausar has ceased to be the company’s Subsidiary and also the company stands to have reduced its debt at a consolidated level by around Rs 105 crore.

Sona Comstar: Partnered with Israel's IRP Nexus Group, a leading provider of cutting-edge electric powertrain solutions for e-mobility and iCreate (International Centre for Entrepreneurship and Technology) to invent a new powertrain, manufacture it and market it globally.

UPL: Released its annual report. Ended FY21 with revenue up 8% year-on-year at Rs 38,694 crore and profit up 32% at Rs 3,692 crore. Global CEO Jai Shroff said the company’s growth and margins are more satisfying because they were achieved in an environment that had the added challenges of high inflation and currency fluctuations that adversely impacted us. “We have been able to strengthen our Ebitda margin by 130 bps, a reflection of our growing contribution from value-added products and cost synergies arising out of the Arysta acquisition,” he said.

Earnings To Watch: Den Networks, GNA Axles, HDFC Asset Management Company, Justdial, L&T Financial Holdings

Stocks That May React To Earnings

Wipro (Q1FY22, Consolidated, QoQ)

• Net profit up 8.7% at Rs 3,232 crore vs Rs 2,974 crore

• Revenue up 12.4% at Rs 18,252 crore vs Rs 16,245 crore

• Ebitda up 1.6% at Rs 3,472 crore vs Rs 3,417 crore

• IT services Ebit declined 320 basis points sequentially on account of integration of low margin Capco business and several senior leadership hires during the quarter to 17.8%

• Company guided Q2FY22 sequential growth to be in the range of 5% - 7%

• Thierry Delaporte, chief executive officer and managing director said that despite the “severe onslaught” of the pandemic, Wipro delivered its best-ever quarter, with secular growth across all sectors.

Angel Broking (Q1FY22, Consolidated, QoQ)

• Revenue up 13.2% at Rs 462.6 crore vs Rs 408.6 crore

• Profit after tax up 19% at Rs 121.3 crore vs Rs 102 crore

• Company witnessed gross client addition of 12 lakh in Q1 as compared to 9.6 lakh clients in Q4FY21

Tata Steel Long Products (Q1FY22, Consolidated, QoQ)

• Revenue up 9% at Rs 1,687.6 crore vs Rs 1,546.7 crore

• Profit down 2.4% at Rs 331.6 crore vs Rs 339.8 crore

• The company said the scheme of amalgamation with Tata Metaliks is pending.

L&T Infotech (Q1FY22, Consolidated, QoQ)

• Revenue up 5.9% at Rs 3,462.5 crore vs Rs 3,269.4 crore

• Net profit down 9% at Rs 496.8 crore vs Rs 545.7 crore

• Special dividend of Rs 10 per share to commemorate the completion of 5 years of listing on the stock exchanges in India

Tata Elxsi (Q1FY22, Consolidated, QoQ)

• Revenues from operations up 7.7 at Rs 558.3 crore vs Rs 518.4 crore

• Profit before tax fell 4.7% at Rs 153.9 crore vs Rs 161.6 crore

• Profit after tax fell 1.6% at Rs 113.4 crore vs Rs 115.2 crore

• Ebitda margin fell from 32.4% to 26.9%
  

Pledge Share Details

• The Ramco Cements: Promoter group Rajapalayam Mills created a pledge of 18 lakh shares on July 13.

• Steel Strips Wheels: Promoter Dheeraj revoked a share of 58,000 shares on July 14.

Trading Tweaks

• Record Date Final Dividend: Birlasoft, Tata Consultancy Services, Newgen Software Technologies, Bharat Forge

• Price Band Revised From 10% To 5%: Gokaldas Exports, Weizmann

• Price Band Revised From 20% to 10%: Dolat Investments, Indbank Merchant Banking Services, Kaya, Paramount Communications, Steel Strips Wheels

• Move Into Short-Term ASM Framework: SP Apparels, South West Pinnacle Exploration, Weizmann, Gayatri Projects

• Move Into Long-Term ASM Framework: Indbank Merchant Banking Services, Aditya Birla Money, Shyam Century Ferrous, Rama Steel Tubes, Happiest Minds Technologies, Goodluck India, Kitex Garments, Aries Agro, Steel Strips Wheels, Poddar Housing and Development

• Move Out Of Short-Term ASM Framework: Sadbhav Infrastructure Project, LG Balakrishnan & Bros, Jain Irrigation Systems, Mold-Tek Technologies