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Business News/ Markets / Stock Markets/  Stocks to watch: Axis Bank, Macrotech, LTIM, Nestle, Bajaj Finance, KMB
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Stocks to watch: Axis Bank, Macrotech, LTIM, Nestle, Bajaj Finance, KMB

Here are a few stocks likely to be in focus on Thursday, April 25:

Companies reporting their Q4 results today include Bajaj Finance, Nestle India, Tech Mahindra, IndusInd Bank, L&T Technology Services, Schaeffler India, ACC, MphasiS, Coromandel International, Laurus Labs, Cyient, Jai Balaji Industries, Himadri Speciality Chemical,Tata Teleservices (Maharashtra), Olectra Greentech, Welspun Living, Zensar Technologies, Tanla Platforms, AAVAS Financiers, and UTI Asset Management Company. (Photo: AP)Premium
Companies reporting their Q4 results today include Bajaj Finance, Nestle India, Tech Mahindra, IndusInd Bank, L&T Technology Services, Schaeffler India, ACC, MphasiS, Coromandel International, Laurus Labs, Cyient, Jai Balaji Industries, Himadri Speciality Chemical,Tata Teleservices (Maharashtra), Olectra Greentech, Welspun Living, Zensar Technologies, Tanla Platforms, AAVAS Financiers, and UTI Asset Management Company. (Photo: AP)

Axis Bank: On Wednesday, April 24, Axis Bank reported a net profit of 7,130 crore, a significant turnaround from the 5,728.4 crore loss in the same period last year. The bank's net interest income (NII), which is the difference between interest earned and paid, increased by 11.5 per cent YoY to 13,089 crore, up from 11,742 crore in the previous year. For the quarter, Axis Bank's operating profit was 10,536 crore, a 15 per cent YoY increase. The core operating profit for the March quarter was 9,515 crore, a five per cent YoY increase. The net profit for Q4FY24 was 7,130 crore, compared to a net loss of 5,728 crore in Q4FY23, and it grew 17 per cent QoQ. The bank's net interest margin (NIM) for Q4FY24 was 4.06 per cent, a five bps QoQ increase. The board of the private sector lender recommended a dividend of Re 1 per equity share for FY24.

Macrotech Developers: The company, operating under the 'Lodha' brand, has increased its pre-sales forecast for 2024-25 by 20% to 17,500 crore, backed by robust demand and a strong launch pipeline, according to a senior company official. The Mumbai-based developer achieved a record high of 14,520 crore in pre-sales in FY24. On Wednesday, the real estate firm reported an 11% decrease in consolidated net profit to 665.5 crore for the March quarter. However, the company saw a three-fold increase in profit to 1,549.1 crore for the full fiscal year. The net profit was 744.4 crore in the fourth quarter of 2022-23 and 486.7 crore for the entire 2022-23 fiscal year. The company's total income increased to 4,083.9 crore in Q4FY24 from 3,271.7 crore in the same period last year, according to a regulatory filing. During 2023-24, the company's total income rose to 10,469.5 crore from 9611.2 crore in the 2022-23 fiscal year.

LTIMindtree: LTIM revenue for the March quarter decreased by 1.3% sequentially to $1.07 billion in Q4FY24, down from $1.08 billion in the December 2023 quarter. However, the company's full-year revenue reached $4.29 billion, marking a 4.4% increase from $4.11 billion the previous year. The firm reported a net profit of $553.4 million for the fiscal year ending 31 March, a 1.36% increase from its FY23 net profit of $545.7 million. Nevertheless, the company's net profit for the March quarter fell by 5.8% sequentially to $132.4 million. In terms of revenue, LTIMindtree's performance largely met analyst estimates for FY24 and the March quarter. A Bloomberg poll of 38 analysts projected LTIM to conclude FY24 with a net revenue of $4.27 billion. The company's quarterly revenue aligned with the expectations of 26 analysts who predicted a Q4 revenue of $1.07 billion. However, the Bloomberg poll expected the IT giant to report a net profit of $559.6 million for FY24 and $138.1 million for the final quarter of the previous fiscal, but LTIMindtree fell short of the latter expectation.

Kotak Mahindra Bank: On Wednesday, the Reserve Bank of India (RBI) prohibited Kotak Mahindra Bank from adding new customers via its online portal and mobile app, and from issuing new credit cards, due to significant shortcomings in its IT system. The RBI identified deficiencies and non-compliances in several areas of the bank's IT system for the years 2022 and 2023, including IT inventory management, patch and change management, user access management, vendor risk management, and data security. A spokesperson for Kotak Mahindra Bank stated in a release that the bank has implemented measures to adopt new technologies to bolster its IT systems and will continue to collaborate with the RBI to promptly address remaining issues.

Nestle India: The company is projected to see an eight percent rise in revenues due to price increases and robust rural distribution during the quarter, as per brokerage estimates. The company, which follows a January-December calendar year, will release its Q1CY24 results on April 25. According to the average estimates of seven brokerage firms, Nestle India is anticipated to report a net profit of 856 crore in Q1CY24, marking a 22 percent YoY increase and a 17.8 percent sequential rise. The company's revenue for the January-March quarter is expected to reach 5,153 crore, reflecting a 13.3 percent QoQ growth. Operating margins are predicted to rise by 238 basis points YoY to 24.5 percent, driven by deflation in milk and palm oil prices. Conversely, Robusta coffee prices surged by 45 percent YoY in Q1CY24, as reported by Kotak Institutional Equities.

Bajaj Finance: The NBFC is anticipated to announce robust growth in its bottom line and topline for the quarter that ended in March 2024. The company's results will be declared on April 25. The net profit for the fourth quarter is projected to increase by up to 22% year-on-year, while the net interest income (NII) for the same period is expected to grow by up to 30% year-on-year. The number of new loans booked during the fourth quarter increased by 4% to 7.87 mm from 7.56 mm, as per the company's recent update. The lower number of new loans booked during the quarter was due to the restrictions imposed by the RBI on the company, affecting the sanction and disbursal of loans under 'eCOM' and 'Insta EMI Card'. The assets under management (AUM) saw a growth of 34%, amounting to approximately 3.3 lakh crore as of March 2024. The AUM growth has been healthy at 6% QoQ. However, margins are expected to decline by 10bps QoQ due to a slight increase in CoF, while the C-I Ratio is likely to remain steady. Credit costs and asset quality are projected to remain broadly stable QoQ.

IndusInd Bank: The bank is projected to register an 11% year-on-year growth in net profit, amounting to 2,261 crore, for the quarter ending March 2024 (Q4FY24). The bank's net interest income is predicted to rise by 18% year-on-year to 5,496 crore, propelled by vigorous credit growth. The Q4 results for IndusInd Bank are scheduled to be announced on April 25, 2024. The asset quality of IndusInd Bank is also expected to remain steady in the January-March quarter, with consistent credit costs. Analysts at Prabhudas Lilladher forecast a contraction in credit costs by 25 basis points to 1.17 percent in Q4FY24 from 1.42 percent in the same period the previous year.

Zee Entertainment Enterprises: On Wednesday, the Bombay High Court rejected a review petition lodged by the promoters of Zee Entertainment Enterprises challenging an order from December 2023 related to a loan default case. A comprehensive order on this matter is still pending. The petition was heard by Justice Abhay Ahuja and was filed by Zee promoters Cyquator Media, Essel Corporate Llp, and Direct Media Distribution Ventures. They argued that the order would result in "grave prejudice" against them. In December, the Bombay High Court ordered Cyquator Media to deposit 61.64 crore due to its default on repayments to Axis Finance, a non-banking subsidiary of Axis Bank. The review petition claimed that Axis Finance had initiated the lawsuit to pressure them into repaying money they did not owe, asserting that the lawsuit was not maintainable. In its lawsuit, Axis Finance sought to recover a term loan of 100 crore that it had granted to Cyquator Media under agreements signed in June 2018. The loan, which had a tenure of three years, carried an annual interest rate of 10.35%. Any delay or default in payments would incur an additional annual interest of 2%.

Delhivery: The Canada Pension Plan Investment Board (CPPIB), a leading Canadian pension fund, has divested approximately 2.77% of its stake in the logistics service provider, Delhivery, for an estimated $110 million. This information is based on the bulk deal data revealed on the exchanges. As per the exchange data, CPPIB still retains a 5.96% stake in Delhivery, a company that enjoys the backing of prominent investors such as Softbank, Nexus Ventures, Steadview Capital, and Fedex. Previously, Softbank had reduced its shareholding in Delhivery via block deals conducted in November and March 2023.

AU Small Finance Bank: According to a filing on the exchange dated April 24, AU Small Finance Bank reported a year-on-year decrease of 12.7% in net profit, amounting to 371 crore, for the fourth quarter of the fiscal year 2023-24. In comparison, the net profit was 425 crore in the same quarter of the previous year and 375 crore in the December quarter of FY24. The bank announced a dividend of 1 per share for FY23-24, pending shareholder approval. The company's gross non-performing assets dropped to 1.67% at the end of the quarter on March 31, down from 1.98% in the December quarter. The bank also reported an interest earning of 2,829 crore in the reported quarter, an increase from 2,275 crore in the fourth quarter of FY23.

Dalmia Bharat: The company announced on Wednesday that its consolidated net profit for January-March fell by 46.5% year-on-year to 315 crore, a decrease attributed to a slump in cement prices that impacted margins. The company had previously reported a net profit of 589 crore for the same period in FY23. Despite this, the company remains optimistic about demand growth. It reported a consolidated revenue of 4,307 crore in the last quarter of FY24, marking a 10% increase from the previous year. The sales volume also saw an increase, rising by 18.5% to 8.8 million tonnes (mt). Dalmia Bharat's Ebitda stood at 654 crore, with an Ebitda margin of 15.18%. For the full financial year that ended on 31 March, the company reported a consolidated profit after tax of 826 crore, a decrease of 20.19%. Its revenue was 14,691 crore, an increase of 8.4% over FY23. In FY24, the company also expanded its installed manufacturing capacity by over 15% to 44.6 mt.

Indian Hotels Company: The company witnessed a year-on-year surge of 27.43% in its net profit, reaching 418 crore in the fourth quarter of the fiscal year 2023-34, as per an exchange filing on April 24. In the corresponding period of the previous year, the net profit was 328 crore. The consolidated revenue for the March quarter rose to 1,951 crore, up from 1,625 crore in the same period last year. The net profit for the full year saw a year-on-year growth of 26%, reaching 1,259 crore, while the revenue increased by 17% to 6,952 crore. Additionally, a dividend of 1.75 per share was declared by the company.

Syngene International: The company announced on Wednesday, 24 April, a YoY net profit increase of 5.5% to 188.6 crore for the fourth quarter ending March 31, 2024. In the same quarter of the previous year, the company reported a net profit of 178.7 crore, according to a regulatory filing. However, the company's operational revenue saw a decrease of 7.8%, falling to 916.9 crore from 994.4 crore in the corresponding period of the previous fiscal year. On the operating level, EBITDA increased by 0.9% to 316.9 crore in the fourth quarter of this fiscal year, up from 314.1 crore in the same period of the previous fiscal year. The EBITDA margin was 34.6% in the reporting quarter, compared to 31.6% in the same period of the previous fiscal year. The company's board of directors has proposed a final dividend of 1.25 per share for the fiscal year 2024.

PVR Inox: The multiplex chain has introduced a new offering to counter the decreasing cinema attendance: ad-free movies, similar to a streaming platform. The theatre business has been impacted by weak box office collections, with even major Bollywood films underperforming in the past three months. The company plans to reduce the duration of advertisements shown before a movie from 35 minutes to 10 minutes, allowing for additional shows. "The time saved on each show will give us the room to add another show during the day, resulting in additional footfalls," said Renaud Palliere, Chief of The Luxury Collection and Innovation, PVR INOX Limited. He added that the increase in admissions would also boost food and beverage revenue.

Sterlite Technologies: STL announced on Wednesday, April 24, that its US-manufactured fiber optic cable products adhere to the 'Build America, Buy America' (BABA) stipulations of the Infrastructure Investment and Jobs Act (IIJA). STL has introduced a new line of optical fiber cables, named Rapid, as part of its "In America, For America" portfolio. The Rapid series includes a variety of cables, from high-capacity ribbonized cables to ruggedized designs, suitable for various applications such as duct, direct buried, aerial, and last-mile connectivity.

Supreme Petrochem: The company announced a 17.5% YoY decrease in net profit, amounting to 131.5 crore, for the fourth quarter ending March 31, 2024, on Wednesday, April 24. In the same quarter of the previous year, the company reported a net profit of 159.3 crore. However, the company's operational revenue saw a 12.7% increase, rising to 1,562.8 crore from 1,386.9 crore in the corresponding period of the previous fiscal year. The company's EBITDA fell by 15.9% to 175.2 crore in the fourth quarter of this fiscal year, compared to 208.3 crore in the same period of the previous fiscal year. The EBITDA margin was 11.2% in the reported quarter, compared to 15% in the same period of the previous fiscal year. The board of directors proposed a final dividend of 7 per equity share . The company's sales volume of manufactured products rose by 17.6% YoY in Q4 of FY24 and by 13.7% YoY in FY24.

Motilal Oswal Financial Services: On Wednesday, April 24, Motilal Oswal Asset Management Company (MOAMC) Ltd announced the appointment of Prateek Agrawal as the company's managing director and chief executive officer, effective from April 26, 2024, pending necessary approvals. In addition, Akhil Chaturvedi, the current chief business officer of MOAMC, has been promoted to Executive Director. Chaturvedi. Niket Shah, the Fund Manager of designated schemes of Motilal Oswal Mutual Fund, has been elevated to the position of Chief Investment Officer. Motilal Oswal Asset Management Company, a significant subsidiary of Motilal Oswal Financial Services Ltd, confirmed that all the aforementioned individuals will assume their new roles starting from April 26, 2024.

Madhav Infra Projects: Madhav Infra Projects announced on Wednesday, April 24, that it has received a Letter of Intent (LoI) from Gujarat Industries Power Company Ltd (GIPCL) for a solar power project worth 329.73 crore. As per the contract, Madhav Infra Projects is set to undertake a 75MW (AC) solar power project located at Vastan near SLPP Tal-Mangrol in the Surat district of Gujarat. The project is expected to reach completion within a timeframe of 330 days.

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ABOUT THE AUTHOR
Pranay Prakash
My experience as a Finance Journalist has involved working as a Web Producer and Sub Editor at a wire agency and business magazine, respectively, where I have curated various domain specific news pages, and later edited long-form, in-depth pieces on everything from India's corporates to the state of the economy, and various sectors. At Mint, I am involved in the editing of market copies and the curation of the live markets blog. Apart from the financial markets, my interest encompass topics related to the economy, the political economy of a growing economy, the space of policy design, and how it affects the wider economy and the decisions of corporates and consumers alike.
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Published: 25 Apr 2024, 08:35 AM IST
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