BackStocks to Watch on May 8: Adani Group, Britannia, Coal India, Marico, Paytm, Vedanta
Stocks to Watch on May 8: Canara Bank, CG Power, Exide Industries, Pidilite Industries, Indian Bank, Mahanagar Gas, HFCL, and Kalpataru Power Transmission will be among the stocks in focus as they will be declaring their March quarter earnings today.
PremiumStocks to Watch on May 8: Here are the top 10 stocks that could be in focus in today's trade:
Adani Group: Adani group stocks — Adani Total Gas and Adani Transmission shares are expected to sharp selling triggered FIIs and FPIs on Monday. According to stock market experts, this selling is expected after MSCI's decision to lower the free float in these two Adani group stocks. Experts said that FIIs and FPIs who invest in index funds follow MSCI and they are expected to bring down their exposure in these two Adani shares on the basis of MSCI's May index review. Hence, there can be a sharp sell-off taking place from FPIs and FIIs when the Indian stock market opens on Monday.
Britannia: Packaged food company Britannia Industries Ltd on Friday reported a 47% jump in quarterly net profit to ₹557.60 crore, helped by softening raw material prices and increased cost-efficiencies. Consolidated sales during the quarter ended 31 March 2023 grew 11% to ₹3,892 crore, versus ₹3,508.35 crore in the year ago period. Gross margins expanded by 688bps year-on-year to 44.9%. Ebitda grew 45.7% in the year. Revenue growth during the quarter was driven by “significant distribution gains," the company said.
Coal India: The profit after tax (PAT) for Coal India Ltd (CIL) for FY 2022–23 grew dramatically by 62%, from Rs. 17,378 Crores in FY22 to Rs. 28,125 Crores. The yearly PAT grew by 61%, surpassing the previous record of Rs. 17,464 Crores set in 2018–19, to reach an all-time high. Higher volume sales and increased premiums in e-auction bolstered the company’s profitability, said Coal India in a statement. During Q4FY23, the company reported a net profit of ₹5,527.62 Cr compared to ₹6,715.00 Cr during Q4FY22, reporting a drop of 18% YoY.
Marico: Consumer goods maker Marico Ltd., on Friday reported an 18.7% jump in quarterly net profit. For the there months ended 31 March 2023, Marico’s profit after tax stood at ₹305 crore; though profit declined sequentially. The maker of Safolla edible oil and Parachute hair oil reported a 3.65% jump in consolidated revenue from operations to ₹2,240 crore in the fourth quarter of FY23 compared to ₹2,161 crore reported in the year-ago period. Sequentially, however, revenues declined 9.3%.
One97 Communications: Digital payments firm Paytm announced their Q4 results, where the company logged a 51.5% rise in fourth-quarter revenue on Friday, aided by a surge in loan growth, and posted an operating profit for a second consecutive quarter. In a letter to shareholders, CEO Vijay Shekhar Sharma informed that Paytm aims to become 'free cash flow positive in the near future'. Paytm's consolidated net loss narrowed sharply to ₹168.4 crore in the fourth quarter of FY23. The revenue rose to 23.35 billion rupees ($285.80 million) in the three months ending March 31, from 15.41 billion rupees a year earlier.
Vedanta: A promoter group entity of Vedanta Ltd cut its stake in the company during the March quarter without reporting the change to the stock exchanges, prompting concerns about inadequate disclosures. Vedanta Netherlands Investments BV, the promoter group entity, cut its stake in Vedanta Ltd to 0.13% as of 31 March from 1.71% as of December-end, resulting in a decline in promoter group stake to 68.11% from 69.69% at the end of the December quarter. The promoter group’s shares that changed hands would be worth ₹1,614 crore at current prices.
Union Bank of India: Public sector lender, Union Bank of India registered strong double-digit growth in the fourth quarter of FY23. PAT jumped by a whopping 61.18% YoY and 23.95% QoQ to ₹2,782 crore. In the quarter, the bank witnessed strong growth in terms of advances and deposits year-on-year, while a sharp decline has been seen in gross NPA. Interest margins expanded further YoY. Union Bank's PAT was at ₹1,440 crore in Q4FY22 and ₹2,245 crore in Q3FY23. However, NII came in at ₹8,251 crore in Q4FY23, rising by 17.92%.
SJVN: State-owned SJVN Ltd has secured a 100 MW grid-connected wind power project in Gujarat, Chairman and Managing Director Nand Lal Sharma said on Saturday. The project was awarded to SJVN Green Energy Limited, a wholly-owned subsidiary of SJVN, through a competitive bidding process followed by an e-reverse auction organized by Gujarat Urja Vikas Nigam Limited. The project, with an estimated cost of $108 million, will be developed by SGEL through an EPC contract and can be set up anywhere in India.
Bank of India: Public sector lender Bank of India (BOI) has declared impressive Q4 results along with a dividend of 20%. The bank's net profit grew by 123% YoY, from Rs. 606 Cr in Q4FY22 to Rs. 1,350 Cr for Q4FY23, while its operating profit climbed by 69.67% YoY, from Rs. 2,466 Cr in Q4FY22 to Rs. 4,184 cr in Q4FY23. The bank reported that its Net Interest Income (NII) rose from Rs. 3,987 Cr. in Q4FY22 to Rs. 5,493 Cr. in Q4FY23, representing a growth of 37.77%. Bank of India reported that its non-interest income climbed from Rs. 1,587 Cr in Q4FY22 to Rs. 3,099 Cr for Q4FY23, a 95.27% rise. This was a sequential improvement of 116% from Rs. 1,432 Cr in Q3FY22.
Aditya Birla Fashion: Fashion and apparel company Aditya Birla Fashion and Retail Ltd (ABFRL) on Friday said it is set to acquire TCNS Clothing, the owner of ethnic brands W, Aurelia, Wishful, Folksong and Elleven. This transaction with be carried out through an acquisition of the founding promoter’s stake through a SPA and a conditional public open offer followed by a merger between the two entities. The value of the promoter stake and open offer consideration for TCNS is Rs. 1650 crore for 51% stake, making this one of the largest deals in the Indian fashion space.
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