Stocks to watch: Adani Enterprise, Sun Pharma, APSEZ, Sanofi, PNB, RailTel

Adani Enterprises: The company announced Q1FY25 results with a two-fold surge in consolidated net profit at ₹1,454 crore, up 116% YoY. Revenue rose 13% to ₹25,472 crore, EBITDA increased 47% to ₹3,705 crore, margin at 14.6%, boosted by solid revenues in airports and mining businesses, growth in new energy business. ANIL posted a 3.6x jump in EBITDA to ₹1,642 crore, new energy contributed 38% of total EBITDA. Airports business saw a 33% rise in pre-tax earnings to ₹682 crore, while coal trading revenue fell 34% to ₹15,042 crore. The company also said its food FMCG business would demerge and integrate with Adani Wilmar. The board approved the demerger and strategic investment in Adani Commodities LLP.

ITC: The company missed Street estimates with a 0.30% rise in standalone net profit in the June quarter at ₹4,917.45 crore. Revenue grew 7.2% to ₹18,219.74 crore, expenses rose 10.8% to ₹12,366.27 crore. FMCG revenue (excluding cigarettes) grew 6.3% to ₹5,491.03 crore, cigarette revenue increased 6% to ₹7,918.10 crore, agriculture business revenue rose 22.2% to ₹6,973.32 crore. Paperboards, paper, and packaging business reported a 6.8% decline in revenue. The company said moderating inflation, improving agri terms of trade, expectations of normal monsoons, and government’s thrust on public infrastructure and rural sector will bolster consumption demand.

Dabur India: The company reported consolidated revenue of ₹3,349.11 crore for the June quarter, up 7% YoY, net profit of ₹500.12 crore, up 7.8% YoY. Margins improved to 19.6%, domestic volume growth of 5.2%, international business achieved 18.4% growth in constant currency terms. Egypt segment grew nearly 64%, Nigeria 181%, Sub-Saharan Africa 21.4%, MENA region 13%. Dabur reported market share gains across 95% of its portfolio.

Sun Pharmaceutical Industries: The company reported Q1FY25 net profit growth of 40.2% YoY at ₹2,835.62 crore. Revenue increased 6% to ₹12,652.7 crore. US formulation sales fell 1% to $466 million, while India formulation sales up 16.4% to ₹4,144.5 crore, and emerging markets sales grew 8.8% to $284 million. External sales of API was down 8.3% to ₹494.6 crore, while EBITDA rose 8.3% to ₹3,607 crore, and margin improved to 28.5%. R&D investments stood at ₹794 crore, and the specialty R&D pipeline included 6 New Active Substances. The company, which has received approval for its alopecia drug Leqselvi (Deuruxolitinib) from the USFDA, faces legal hurdles.

Adani Ports and Special Economic Zone: APSEZ announced a 47.2% YoY increase in Q1FY25 net profit to ₹3,113 crore. Revenue grew 11.34% to ₹6,956.32 crore, EBITDA increased 13.1% to ₹4,245 crore, and margins rose to 61%. The company Handled 109 MMT of cargo volume, while container volumes was up 18%, and liquids and gas was up 11%. Domestic ports EBITDA increased to 72%. Net debt to TTM EBITDA at 2.1x. FY25 forecast revenue of ₹29,000-31,000 crore, EBITDA of ₹17,000-18,000 crore, cargo volumes of 460-480 MMT, planned capital expenditure of ₹10,500-11,500 crore.

Johnson Controls Hitachi Air Conditioning India: The company showed a 75.6% increase in topline, while profit stood at ₹36.15 crore. In the previous fiscal year during the same period, the company had declared a loss of ₹41.02 crore. Revenue grew 29.04% compared to the previous quarter, while operating income was down 37.51% q-o-q.

Godrej Agrovet: The company reported a 22.9% YoY increase in Q1FY25 net profit to ₹131.6 crore. Revenue dipped 6.4% to ₹2,350.8 crore, EBITDA increased 17.2% to ₹226.2 crore, while margin was at 9.6%. The board also approved the acquisition of 49% stake in Godrej Tyson Foods Ltd, making it a wholly-owned subsidiary, which included an initial investment of up to ₹110 crore for a new feed plant in Maharashtra.

Yes Bank: The RBI asked investors seeking a controlling stake in Yes Bank to reconsider demands, including acquiring and retaining a majority stake. Investors want to hold 51% stake perpetually. RBI proposed gradual glide path to reduce stake, voting rights capped at 26%. Potential bidders include First Abu Dhabi Bank and Japan’s Mizuho Group. Deal process may be prolonged. The SBI has placed its 24% stake on the block, while other banks collectively own 7.4%, and PE investors Carlyle and Advent own 14%.

Zee Entertainment Enterprises: The company raised ₹2,000 crore to adapt to changing broadcast and streaming dynamics amid Reliance-Disney JV. The company's board approved fundraise in June 2024 post Sony merger cancellation. FCCBs of $239 million issued, proceeds to be used for digital assets and OTT platforms. The company's liquidity improved, employee expenses reduced, while management focussed on morale and optimal structure. Ad revenue growth was subdued, but its losses declined, due to its emphasis on balanced cost structure and revenue growth.

MTNL: After the company said it lacks funds to pay interest on 7.78% MTNL Bond Serie VII-C due August 10, sovereign guarantee provided by the government will likely have to be invoked. The DoT has cleared payment of ₹64 crore, while MTNL has sought ₹1,151.65 crore for interest payment. The government allocated ₹3,668.97 crore for principal payment.

Sanofi India: The company received CDSCO approval for Beyfortus to prevent RSV and LRTD in infants. Developed with AstraZeneca, the drug has the potential to meet significant unmet medical need in India.

Punjab National Bank: The bank raised MCLR by 0.05% across tenors, with one-year MCLR at 8.90%, effective 1 August, 2024. THe Bank of India also raised MCLR by 5 basis points for one-year tenor loans.

Ashok Leyland: The company reported an 8% decline in July 2024 sales to 13,928 units. Domestic sales were down 9%, while medium and heavy commercial vehicle sales decreased by 14%, and light commercial vehicle sales remained flat.

Thermax: The company reported a 96.6% YoY jump in Q1 net profit at ₹115.8 crore. Revenue from operations increased by 13% to ₹2,184.4 crore, EBITDA rose by 6.7% to ₹141.1 crore, and the EBITDA margin stood at 6.5%. The consolidated order balance was ₹10,681 crore, with order booking at ₹2,569 crore. Standalone operating revenue was ₹1,311 crore, profit after tax was ₹86 crore, and a new manufacturing factory was established in Pune.

RailTel: The company announced a 25% rise in net profit at ₹49 crore in Q1FY25 compared to ₹39 crore last year. Revenue from operations rose 19.4% to ₹558 crore, while EBITDA increased 14.8% to ₹103.4 crore, and margin at 18.5%.

Angel One: The company announced a ₹250 crore investment into its wealth management arm. The capital will be used to develop technological infrastructure, expand presence, and develop product strategies. With a rapid increase in the HNI population, the company is offering investment products across asset classes, supported by a 60-member team of wealth managers.

IDBI Bank: Fairfax Financial Holdings, Emirates NBD, and Kotak Mahindra Bank, received a ‘fit & proper’ certificate from the RBI for the IDBI Bank acquisition. Kotak Mahindra Bank is unlikely to pursue the acquisition. The government will call for financial bids before the close of FY25. Fairfax may explore a merger with IDBI Bank, and Emirates NBD may be a strategic investor.

Prestige Estates Projects: The company reported a 3.4% YoY dip in Q1 net profit at ₹307 crore. Revenue from operations increased by 10.8% to ₹1,862.1 crore, EBITDA jumped by 51.2% to ₹796.3 crore, and the EBITDA margin stood at 42.8%.

Aditya Birla Capital: The company reported a 17% YoY increase in net profit to ₹758 crore in Q1FY25. The company’s sales increased 25.37% YoY to ₹8,832 crore.

Hero MotoCorp: The company commenced operations in the Philippines, partnering with Terrafirma Motors Corporation. Together, they set up an assembly unit with an annual capacity of 150,000 units, producing the Xpulse 200 4V, Hunk 160R 4V, and Xoom 110 scooter, expanding the Indian company's global presence.

KP Green Energy: The company has received new orders from multiple clients, both domestic and international, totaling ₹53.23 crore.

IIFL Securities: SEBI issued a ₹300,000 penalty on IIFL Securities on July 30, 2024, for incorrectly listing 18 clients as being from Sikkim in the MCX database, potentially misusing stamp duty exemptions. The company received the order on August 1, 2024, and is consulting lawyers. The financial impact is being assessed.

Zomato: The company’s net profit jumped 126.5 times to ₹253 crore in the April-June quarter, compared to the same period a year ago. Its revenue rose 74% YoY to ₹4,206 crore.

Kalyan Jewellers India: The company reported a 23.6% YoY rise in Q1 net profit at ₹177.8 crore. Revenue from operations increased by 26.5% to ₹5,535.5 crore, and EBITDA rose by 16.5% to ₹376.1 crore. The EBITDA margin stood at 6.8%.

Suryoday Small Finance Bank: The bank reported a 47.3% YoY jump in Q1 net profit at ₹70.1 crore. NII rose by 39.9% to ₹293.2 crore, GNPA stood at 2.84%, and deposits increased by 42.2% to ₹8,137 crore. The CASA ratio improved to 17.7%, while net total income rose by 31.8% to ₹363.4 crore. The cost of funds increased to 7.6%, and the cost-to-income ratio rose to 60.3%. Pre-provisioning operating profit grew by 23.2% to ₹144.3 crore, and the provision coverage ratio improved to 83.9%. The company's customer base expanded by 23.6% to 30 lakh.