Stocks to Focus: Airtel, ONGC, Adani Energy, Tata Chem, Marico, Aster DM Health

These are the stocks to watch on Tuesday, August 6. Benchmarks Sensex and Nifty50 are expected to have a strong start, as Asian markets have rebounded. At 6:31 AM, GIFT Nifty futures were up 197 points, trading at 24,299.5, indicating a robust gap-up opening. Asian markets have shown a significant recovery, with Japan's Nikkei surging 8.50 percent after a 13 percent drop on Monday. The Topix index climbed nearly 9.5 percent, while Korea's Kospi gained up to 5 percent. Australia's ASX200 inched up 0.08 percent. In Japan, June household spending fell more than expected, down 1.4 percent year-over-year in real terms, despite a 3.1 percent increase in average monthly income per household. This unexpected decline may influence the Bank of Japan’s plans to raise interest rates, according to reports.

Bharti Airtel: The company recorded a net profit of Rs 4,160 crore for the quarter ending in June, which doubled compared to the previous quarter and rose by 158% compared to the same period last year. This increase was mainly due to exceptional gains from a favorable tax judgment and the divestment of its Sri Lankan operations. Consolidated revenue increased by nearly 3% to Rs 38,506 crore, while EBITDA reached Rs 19,944 crore, marking a 1% year-on-year increase. However, the EBITDA margin declined to 51.8%. MD and CEO Gopal Vittal emphasized cost efficiencies, strong revenue growth in Africa, and the addition of 6.7 million new smartphone customers in India, contributing to an improved average revenue per user (ARPU) of Rs 211.

ONGC: The company exceeded first-quarter profit expectations with a standalone profit of Rs 89.38 billion. This was supported by strong domestic fuel demand and higher price realization. The price realization of crude oil increased by 8.8% to $83.05 per barrel, and revenue from operations grew by 4% to Rs 352.66 billion. However, profit decreased by 15% due to the government’s windfall tax on petroleum crude, and expenses increased by 19% to Rs 253.71 billion. Its peer, Oil India, is expected to release its results later this week.

InterGlobe Aviation: IndiGo has launched its business class product, #IndiGoStretch, on the Delhi-Mumbai route, and bookings will commence on August 6 for travel starting from November 14. Business class seats will be offered on 12 domestic routes. In addition, the airline will be introducing a loyalty program named ‘IndiGo BluChip’. CEO Pieter Elbers emphasized the high quality of the new service and highlighted the increasing demand for premium services in India.

Reliance Industries: The diversified conglomerate has achieved its highest-ever rank on the Fortune 500 list, climbing to the 86th spot. The company's market capitalization is now at Rs 19.585 trillion. At the end of FY24, the company reported a 2.6% rise in revenue to Rs 10,00,122 crore and a 16.1% rise in EBITDA to Rs 1,78,677 crore. Other Indian companies on the list include LIC, Indian Oil, SBI, ONGC, BPCL, Tata Motors, HDFC Bank, and Rajesh Exports.

Adani Energy Solutions: The company raised Rs 8,373 crore through a QIP to invest in transmission assets, smart metering, debt repayment, and general corporate purposes. The QIP received bids nearly 6 times the base deal size from various investors. CEO Kandarp Patel highlighted the strong interest from institutional investors and India’s robust investment cycle.

Tata Chemicals: The company's first-quarter profit dropped by 71.8% to Rs 1.5 billion due to lower soda ash prices and subdued demand, leading to a revenue decrease of over 10% to Rs 37.89 billion. The oversupply in Asia and the EU, driven by China’s economic slump and decreased EU demand for glass products, suggests that recovery could take 12-18 months.

Marico: The FMCG company reported an 8.66% increase in net profit, reaching Rs 464 crore for the April to June quarter, as compared to Rs 427 crore in the previous year. Revenue from operations also saw a 6.7% uptick, reaching Rs 2,643 crore. In India, revenues increased by 7.38% to Rs 1,926 crore. The oil business played a significant role in the revenue growth, contributing 72% to the increase. Specifically, Parachute coconut oil accounted for 34% of the growth, Saffola edible oils for 16%, and value-added hair oils for 22%. The EBITDA margin expanded by 50 basis points to 23.7% as the company directed its efforts towards diversification and premiumisation in its India business.

Mahindra Lifespace Developers: Ample Parks, a collaboration between Actis and Mahindra Lifespace Developers, has acquired a 70-acre industrial land at Mahindra World City in Chennai. They plan to build a 2 million sq. ft. Grade A industrial and warehousing space with an Rs 800 crore investment. Additionally, the joint venture aims to procure 700-750 acres for 15-17 projects in tier 1 and 2 cities over the next 5-7 years.

Aster DM Healthcare: The company plans to merge with Care Hospitals to create India’s third-largest hospital chain with 9,900 beds. Private equity firm Blackstone owns large stakes in both companies. The merged entity is to be called Aster DM Quality Care Pvt. Ltd. The share swap ratio of the merger is expected to be 50:50. Furthermore, the Moopen family will own a lower stake in the combined entity.

Sterlite Technologies: STL has appealed to the European Commission against the anti-dumping duties imposed on manufacturers of optical fiber cable in India. The company anticipates an improvement in business and a return to profitability. STL expects to benefit from the Indian government's anti-dumping duties on specific optical fiber imports from China, South Korea, and Indonesia.

Tata Power: The company has received a letter of intent from PFC Consulting to acquire a project special purpose vehicle Paradeep Transmission. The SPV is to be developed on a build, own, operate, and transfer basis for 35 years. The project involves constructing a 2 x 1,500 MVA, 190 km, 765 kV double circuit transmission line from Angul substation to Paradeep, Odisha.

Ambuja Cements: The company has announced its first venture in Bihar, which involves the establishment of a 6 MTPA cement grinding unit at Warisaliganj, Nawada. The total investment for this project is Rs 1,600 crore. The project will be implemented in three phases, with the first phase aiming for 2.4 MTPA capacity by December 2025. The initiative is expected to contribute Rs 250 crore per year to Bihar's fiscal revenue and generate 250 direct jobs along with 1,000 indirect jobs.

Bharti Hexacom: The company's net profit for the June quarter was Rs 511 crore, marking a 101.9% year-over-year increase. Revenue also saw a 13.6% uptick, reaching Rs 1,911 crore. The mobile services revenue experienced a 12.9% increase. Average revenue per user (ARPU) improved from Rs 194 to Rs 205. Additionally, the company witnessed a 21.1% year-over-year increase in revenue from homes and office business. The company's EBITDA was reported at Rs 912 crore with a margin of 47.7%, while EBIT stood at Rs 416 crore with a margin of 21.8%.

Brigade Enterprises: The company's net profit for Q1FY25 saw a significant YoY increase of 267.12% to Rs 80.5 crore, with revenue from operations rising by 64.8% to Rs 1,077.7 crore. The breakdown of revenue showed real estate revenue at Rs 707 crore, leasing revenue at Rs 259 crore, and hospitality revenue at Rs 118 crore. The EBITDA increased by 67.3% to Rs 292.5 crore, with a margin of 27.2%. Additionally, pre-sales bookings amounted to 1.15 million sq. ft., with a sale value of Rs 1,086 crore.

BLS International Services: The company's net profit for Q1FY25 jumped by 70.1% YoY to Rs 120.8 crore, with revenue from operations increasing by 28.5% to Rs 492.7 crore. EBITDA also saw a significant increase, jumping by 66% to Rs 133.1 crore, with a margin of 27%. Revenue from the visa and consular business grew by 35.9% YoY to Rs 414.1 crore, digital business revenue stood at Rs 78.5 crore, and the business correspondent segment witnessed over 3.5 crore transactions.

Honeywell Automation India: The company recorded a 32% year-over-year increase in net profit to Rs 136.5 crore for Q1FY25, with a 3% rise in revenue from operations to Rs 960.4 crore. EBITDA increased by 27.9% to Rs 154.2 crore, resulting in a 16.1% margin.

Indian Energy Exchange: IEX reported its highest-ever monthly traded volume of 13,250 MU for July 2024, which is a 56% year-over-year increase. The volume of electricity traded was 10,093 MU, while the volume of green electricity traded was 1 billion units. The volume of Renewable Energy Certificates (RECs) traded rose by 405% year-over-year to 3,150 MU. India's energy consumption reached 145.4 billion units, marking a 4% increase year-over-year.

Lupin: The company announced the incorporation of Lupin Lanka (Private) Ltd in Sri Lanka as its wholly-owned subsidiary. Separately, it received a centralized Show Cause Notice from the Maharashtra GST Authority seeking recovery of Rs 336.2 crore in taxes, along with applicable interest and an equivalent penalty of Rs 336.2 crore for the period from July 2017 to March 2022.

Bajaj Consumer Care: Quant Mutual Fund purchased a 1.89% stake in Bajaj Consumer Care at an average price of Rs 256 per share, while Goldman Sachs Funds sold a 1.69% stake at an average price of Rs 256.02 per share.