What’s working for Nifty’s new entrants Bajaj Finance, HPCL, UPL1 min read . Updated: 29 Aug 2017, 12:20 PM IST
A quick look at the key recent developments for Bajaj Finance, HPCL and UPL, and the positives going for them
Mumbai: Bajaj Finance Ltd, Hindustan Petroleum Corp. Ltd (HPCL) and UPL Ltd will be added to benchmark Nifty index from 29 September.
We take a quick look at the key recent developments for these companies, and the positives going for them.
Bajaj Finance: It is one of the leading non-banking financial companies in the asset financing space, and saw its market cap crossing the Rs1 trillion mark on Monday. It is growing fast and Mint reported earlier this month that the company had recently hired bankers for a Rs4,500 crore qualified institutional placement (QIP). Its stock price had more than doubled year to date.
For the quarter ended June, Bajaj Finance reported a 42% jump in net profit, at Rs602 crore, which is its highest ever. Assets under management grew to Rs68,883 crore at end of June from Rs49,608 crore in the corresponding period a year ago.
HPCL: It is the second-largest state-run oil marketing company (OMC) in India, in terms of marketing network. It has been a preferred pick in the OMC space, and has gained traction on developments in the takeover by Oil and Natural Gas Corp. Ltd. (ONGC). On 21 August, ONGC board gave an in-principle approval to acquire government’s 51.11% stake in HPCL.
The stock is up 58% year to date, of which it gained 24% so far this month.
UPL: It is one of the leading crop protection companies in the world. For the June quarter, revenues and operating profit increased 6-7% while volume rose 10%. While the results didn’t beat all analysts’ expectations, favourable commentary and optimistic outlook has gelled well for the stock.
The stock is up nearly 30% year to date. In a note on 1 August, HSBC Securities and Capital Markets (India) Pvt. Ltd pointed that in India, July has seen excellent rainfall and sowing is up for most key crops from a year before.
The brokerage said that UPL also indicated that July has seen strong product placements and this should make up for lower sales in June.
Similarly, in Latin America, Mexico has seen much better weather in July and other key regions such as Brazil are expected to deliver robust growth, HSBC analysts added.