Stocks To Watch: Marico, Infosys, Dodla Dairy, Wipro, Pidilite, TCS
India stock benchmarks ended higher after fluctuating between gains and losses throughout the session aided by a rally in IT stocks ahead of key earnings.
The sentiment was also helped by the easing in wholesale inflation for the first time in six months. The S&P BSE Sensex rose 0.25% to 52,904.05, and the NSE Nifty 50 Index advanced 0.26% to 15,853.95. Infosys Ltd. contributed the most to the index gain, increasing 2.1%. Wipro Ltd. had the largest increase, rising 7%.
Stocks To Watch
Tata Consultancy Services: Announced plans to expand its operations in Arizona, by investing over $300 million by 2026 and hiring more than 220 employees by 2023.
KRBL: Informed that operations at its unit situated at Dhuri, Sangrur, Punjab will resume as normal as per Supreme Court’s July 13 order.
Apar Industries: Released its annual report. The company ended FY21 with revenues 14% lower at Rs 6,388 crore. Profit after tax, however, grew nearly 20% to Rs 161 crore. Chairman Kushal Desai said that despite multiple COVID-19 waves hitting plant operations, logistics and both domestic and global demand, the company’s return on equity for FY21 was up 106 bps year-on-year to 12.5%, driven by 42% reduction in finance cost.
Craftsman Automation: Company has terminated joint venture agreements signed in 2007 with Mitsubishi Corporation, Tokyo, MC Machinery Systems, USA, Mitsubishi Corporation India and Mitsubishi Corporation Technos, Japan. The joint venture was for selling electric discharge machines and laser cutting machines. Craftsman said the termination was to focus on the increasing needs of the primary business and it won’t have any impact on the company.
Rossari Biotech: ICRA has assigned a long-term rating of AA- (stable) to its fund-based working capital facilities and unallocated limit facilities. A short-term rating of A1+ has been assigned to its non-fund based limit facilities.
SeQuent Scientific: Received EU’s good manufacturing practices approval for its tablets dosage manufacturing line in Turkey.
Amara Raja Batteries: High Court of Andhra Pradesh, at a hearing on July 12, 2021, has extended the interim suspension of closure orders from Andhra Pradesh Pollution Control Board for the company’s plants situated at Karakambadi, Tirupati and Nunegundlapalli Village, Chittoor District, Andhra Pradesh.
Tata Communications: Appointed Krishnakumar Natarajan as additional director (Independent) to the board for a term of five years.
Mrs Bectors Food Specialities: Released its annual report. The company said it recorded 16% growth in revenues and a 52% and 138% growth in Ebitda and profit after tax, respectively, for the year. It said this was a factor of both increased product volumes as well as strategic price realisation enhancements. It said the company focused on starting its cookies line at the Rajpura, Punjab factory in the first quarter, with a capacity of 300 MT per month. It is also expanding a bakery line and bread line at our Greater Noida, Uttar Pradesh, facility which is due to start commercial operations in the third quarter of the current financial year.
Marico: Announced a strategic investment in Apcos Naturals Private Limited with an acquisition of 60% equity stake for an undisclosed consideration. This equity stake will be acquired over a period of two years.
Spandana Sphoorty Financial: Crisil assigned the company’s proposed long term bank loan facility of Rs 3,500 crore a rating of A (stable).
Pidilite: Released its annual report. The company's net sales witnessed flat growth, excluding Pidilite Adhesives which declined by 2.4%. Its Ebitda grew by 6.5% and profit after tax grew flat. The company said there remains an uncertainty around the duration of the pandemic and the resultant impact on consumer sentiment and demand. Input inflation may continue during the current year as well and it said it is taking necessary steps to mitigate the impact of inflation through appropriate pricing and cost control measures. It added that the slower growth of the Indian economy and stress in sectors, such as construction, could impact the performance of the company and that overseas subsidiaries, by virtue of their relatively smaller size, remain vulnerable to the political and economic uncertainties of their respective countries.
Earnings To Watch: Wipro, Tata Elxsi, Tata Steel Long Products, Angel Broking, Aditya Birla Money, Cyient, L&T Infotech, Stylam Industries
Pledge Share Details
Embassy Office Parks REIT: Promoter Embassy Property Developments Pvt. Ltd. revoked a pledge of 3.88 crore shares on March 30.
Gayatri Projects: Promoter T Indira Reddy invoked a pledge of 32.5 lakh shares on July 8.
Steel Strips Wheels: Promoter Dheeraj Garg revoked a pledge of 1.33 lakh shares on July 13.
Record Date Final Dividend: Rane Engine Valve, Laxmi Organic Industries, Moksh Ornaments
Ex-Date Final Dividend: IGL Petrochemicals, APL Apollo Tubes, Dhanuka Agritech, Atul, Nucleus Software Exports, Mahindra & Mahindra, Bharat Forge, Cosmo Films, Coromandel International, Escorts, Tata Consultancy Services
Price Band Revised From 10% To 5%: Vascon Engineering
Price Band Revised From 20% to 10%: Aditya Birla Money, Goodluck India, Vardhman Holdings
Move Into Short-Term ASM Framework: Edelweiss Financial Services, Rane Brake Lining, Dolat Investments, Prime Securities
Move Into Long-Term ASM Framework: Expleo Solutions, Vardhman Holdings
Move Out Of Short-Term ASM Framework: Crisil, Heritage Foods, Apex Frozen Foods, Privi Speciality Chemicals, Univastu India
Stocks That May React To Earnings
Infosys (Q1FY22, Consolidated, QoQ)
Revenue up 6% at Rs 27,896 crore vs Rs 26,311 crore (Bloomberg estimate: Rs 27,655 crore)
Net profit up 2% at Rs 5,201 crore vs Rs 5,078 crore (Bloomberg estimate: Rs 5,378 crore)
Ebitda up 2.5% at Rs 6,603 crore vs Rs 6,440 crore (Bloomberg estimate: Rs 6,775 crore)
Ebitda margin contracts 80 basis points to 23.7% vs 24.5% (Bloomberg estimate: 28%)
Chief executive officer Salil Parekh said the company grew at the fastest pace in Q1 in a decade in FY22. The company also increased its revenue growth guidance to 14%-16%.
Chief operating officer Pravin Rao said the company plans to combat rising attrition in the industry by expanding our hiring program of college graduates for FY22 to around 35,000 globally.
Chief financial officer Nilanjan Roy said the company is confident of delivering on the margin guidance, underpinned by its “comprehensive cost optimization program, despite increasing cost headwinds arising largely from compensation review, talent acquisition and retention”.
Craftsman Automation (Q1FY22, Consolidated, QoQ)
Revenue from operations down 18% at Rs 435.1 crore vs Rs 537.1 crore
Profit down nearly 50% at Rs 24.07 crore vs Rs 47.28 crore
Hatsun Agro Products (Q1FY22, Consolidated, QoQ)
Revenue down 1.5% to Rs 1,546.1 crore vs Rs 1570.3 crore
Profit up 1% at Rs 58.33 crore vs Rs 57.13 crore
Declared an interim Dividend of Rs 6 per share. This is the first interim dividend declared in FY22.
The board also approved the raising of funds through private placement of equity shares by way of qualified institutional placement for a sum of Rs 700 crores
5paisa Capital (Q1FY22, Consolidated, QoQ)
Revenue up 21% at Rs 60.08 crore vs Rs 49.53 crore
Profit after tax up 23% at Rs 7.19 crore vs Rs 5.85 crore
L&T Technology Services (Q1FY22, Consolidated, QoQ)
Revenue up 5.4% at Rs 1,518.4 crore vs Rs 1,440.5 crore
Profit up 11% at Rs 217 crore vs Rs 195.3 crore
The company raised its FY22 USD revenue growth guidance to 15-17% vs 13-15% earlier.
Chief executive officer and managing director Amit Chadha said the company has started the new fiscal with a “strong performance, despite the pandemic related challenges during the quarter.” He added that in Q1, the company got revenue back on the double-digit growth trajectory and marked four consecutive quarters of operating margin improvement. “The deal pipeline is healthy across segments, and we expect broad based growth to continue. Our innovation engine is matching the pace of our growth as we filed a record 23 patents in Q1,” he said.
Tinplate Company of India (Q1FY22, Consolidated, QoQ)
Revenue up 14.7% at Rs 866.2 crore vs Rs 755 crore
Net profit up 18% at Rs 68.61 crore vs Rs 56.15 crore
Dodla Dairy (Q4FY21, Consolidated, QoQ)
Revenue up 6.7% at Rs 530.5 crore vs Rs 497 crore
Profit down 77% at Rs 9.5 crore vs Rs 41.6 crore
Securities that continue to be in the ban list: Granules India, Vodafone Idea, Nalco, NMDC, PNB, SAIL, Sun TV
Securities added to ban list: Indiabulls Housing Finance
IGL Petrochemicals, APL Apollo Tubes, Dhanuka Agritech, Atul, Nucleus Software Exports, Mahindra & Mahindra, Bharat Forge, Cosmo Films, Coromandel International, Escorts, Tata Consultancy Services