Stocks on Focus: Tata Motors, NLC India, M&M, JM Financial, Ceat, IGL

Investors can carry some optimism into this week’s final trading session following a surprise second-half turnaround in the markets on Wednesday. As of 7:10 am, the Gift Nifty futures were up 72 points at 22,659.50, compared to Nifty futures’ last close.  

Tata Motors: Moody's, a global rating agency, confirmed the BA3 ratings of Tata Motors on March 6. The agency has also maintained a positive outlook and confirmed the Ba3 senior unsecured instrument ratings of Tata Motors Ltd (TML). According to Moody's obligations, 'Ba' ratings are considered to have speculative elements and carry a significant credit risk. The modifier '3' signifies a position at the lower end of this generic rating category.

NLC India: The Indian government is planning to sell up to 7 percent of its stake in NLC India, a coal mining company, through an offer for sale (OFS) this week. This move is expected to raise up to Rs 2,200 crore ($266 million) based on current prices, as reported by Reuters on Wednesday, citing sources. In other news, the company announced in an exchange filing that Gujarat's state-owned electricity utility, GUVNL, has signed a 25-year agreement to purchase electricity from NLC India Green Energy Ltd's (NIGEL) 600-MW solar plant at Rs 2.705 per kWhr.

Mahindra & Mahindra: Prudential Management and Services Pvt Ltd, which is a part of the promoter group of Mahindra & Mahindra, has started selling the company's shares in a secondary sale. The reason for this sale is the need for liquidity in the family, as per the statement made by the automobile manufacturer in a stock exchange filing on Wednesday. The filing was in response to a news report about the promoters selling their shares. It mentioned that after the transfer of PMSL's shares from the late Keshub Mahindra, the former chairman of M&M who passed away on 12th April 2023, to his family members, the family plans to sell a small portion of M&M shares held by PMSL to meet specific financial needs.

JM Financial Products: The Reserve Bank of India (RBI) has raised concerns over some serious irregularities that have been detected at JM Financial Products Limited (JMFPL). These include violations of Know Your Customer (KYC) and Anti-Money Laundering (AML) norms, as well as the sharing and usage of customer data among group entities. According to sources close to the matter, these issues have resulted in action being taken against the firm. During the regulator's review, significant discrepancies were also identified in the company's loan sanctioning process. An anonymous source stated, "There are serious violations of KYC and AML guidelines, deviations in the loan sanction process, and also sharing and usage of customer data across the group entities".

CEAT: The company's Chennai facility holds the potential to manufacture up to 3,000 truck and bus radial (TBR) tyres daily. Additionally, there is an opportunity to increase the production of passenger car radial tyres, which is currently set at 20,000 tyres per day. The digital and technological advancements of the company are expected to influence its future direction. During a recent tour of the Chennai plant, analysts were impressed with the high levels of automation and digitization at the facility.

Adani Enterprises: The company announced in an exchange filing that its subsidiary, Ospree International FZCO, based in Dubai, has successfully acquired 100 percent stake in Le Marche Duty Free SAS (LMDF), a France-based company, for a total of 5,000 euros. The acquisition is aimed at strengthening the company's position and growth in the duty-free industry. Adani Enterprises, in a statement to the exchange, emphasized the significance of this acquisition, stating that it aligns with the expansion objectives of Mumbai Travel Retail Private Limited.

Indraprastha Gas Limited: The Indian Gas Limited (IGL) has recently announced a reduction in the selling price of compressed natural gas (CNG) across all its service areas starting from the 7th of March at 6 am. The new selling price of CNG in Delhi has been decreased from Rs 76.59 per kg to Rs 74.09 per kg. Similarly, the revised price of CNG in Noida, Greater Noida, and Ghaziabad is now Rs 78.70 per kg, down from Rs 81.20 per kg. This announcement from IGL comes after Mahanagar Gas (MGL) reduced its CNG prices by Rs 2.5 per kg to Rs 73.50 per kg. The company attributes this reduction in prices to a decline in gas input costs.

Indian Oil Corporation: The company is planning to commence production of a new high-octane fuel for Formula One (F1) racing within the next three months. This step is part of IOC's strategy to expand its range of specialized fuels. The fuel will be supplied for the motorcycle road racing championship in the Asian region. "We are currently collaborating with the FIM Asia Road Racing Championship to supply 'Storm'. We take pride in being the first company in India to produce fuel that meets the specifications required for road racing", said Shrikant Madhav Vaidya, the Chairman of IOC. IOC is slated to provide fuel for all the motorcyclists from 15 different countries participating in the FIM Asia Road Racing Championship.

Shriram Finance: A non-banking finance company is getting ready to secure a $200 million loan through an external commercial borrowing (ECB) facility from several international banks. The purpose of this move is to strengthen its funding to meet the increasing demand for credit. The company is interested in obtaining a social loan, considering its lending portfolio includes loans to small business owners and socially vulnerable groups. Umesh Revankar, the Vice Chairman of the company, has announced that HSBC, DBS, and Barclays have been appointed as the primary banks to facilitate the fund-raising, which could be priced as early as next week.

Glenmark Life Sciences: The pharmaceutical company has announced that its Chairman, Glenn Saldanha, and non-executive director, VS Mani, have resigned from their positions due to a change in the company's ownership. Sridhar Gorthi, an Independent Director, has also resigned along with Saldanha and Mani. The resignation will be effective from the end of business hours on March 6, 2024, as stated in a regulatory filing by the company. In a resignation letter made public on BSE by the company, Saldanha mentioned that his decision to leave the board and his position as chairman is in line with the transfer of the company's ownership from Glenmark Pharmaceuticals to Nirma Ltd.