Stocks to Focus: Ambuja Cements, Maruti, Sun Pharma, M&M, Adani Power, Infosys

Stocks to Watch Today, Thursday, August 1, 2024: The BSE Sensex and the NSE Nifty50 are expected to open positively today due to favorable global and domestic conditions. At 7:00 AM, GIFT Nifty futures were trading at around 25,033 levels, suggesting a potential 50-point increase for the NSE Nifty50 index. In Asia, the Shanghai Composite rose by 0.08 percent, South Korea's Kospi increased by 0.22 percent, and Hong Kong's Hang Seng declined by 0.31 percent. Japan's Nikkei decreased by 3.10 percent, and the Asia Dow was down by 0.32 percent on Wednesday morning.

Ambuja Cements: The company's consolidated profit for Q1FY25 was Rs 646.31 crore, a 28.6% decrease from the previous year due to increased expenses and reduced revenues. Revenue dropped by 4.6% year-on-year to Rs 8,311.48 crore, while sales volume increased to 15.8 million tonnes. EBITDA decreased by 23.21% year-on-year to Rs 1,280 crore, resulting in a margin of 15.4%. Total expenses rose to Rs 7,566.91 crore. The company expects a 7-9% increase in cement demand for FY25. Its consolidated cash and cash equivalents amounted to Rs 18,299 crore.

Maruti Suzuki: The company's Q1FY25 report shows a 50% increase in discounts compared to Q4FY24, with average discounts now at Rs 21,700 per vehicle. Net profit has risen by 46.9% YoY to Rs 3,649.9 crore, attributed to cost reduction, favorable commodity prices, and beneficial forex rates. Net sales have increased to Rs 33,875.3 crore. EBIT margin has improved to 11.1% from 10.8% in Q4FY24. The company sold 521,868 vehicles in Q1FY25, marking a 4.8% YoY increase. Domestic sales went up by 3.8%, while exports increased by 11.6%. The company is maintaining its outlook for low-single digit growth in PV sales for the full fiscal year.

Sun Pharmaceutical Industries: The company is set to announce its Q1FY25 earnings on August 1st. Revenue is expected to increase by over 8% to Rs 12,904 crore, with net profit anticipated to rise by 27.5% to Rs 2,579 crore. Analysts predict strong sales in the US driven by specialty products and consistent growth in domestic chronic therapies. However, it is expected that higher R&D costs will have a negative impact on margins. The projected EBITDA margin is 26.7%, down from 27.9% in the previous year. Investors will be paying close attention to the actual R&D expenses and the margin guidance for FY25.

Mahindra & Mahindra: In the first quarter of the fiscal year 2025, M&M reported a standalone net profit of Rs 2,612.63 crore, which is a 5.3% decline year-over-year (YoY) due to one-off gains last year. The revenue increased by 12% YoY to Rs 27,038.79 crore. The EBITDA rose by 22% YoY to Rs 4,023 crore, with a margin improvement to 14.9%. The revenue from the auto segment grew by 13% YoY to Rs 18,947.09 crore, with the EBIT margin improving to 9.5%. In Q1FY25, M&M sold 2,11,550 vehicles, which marks a 14% increase YoY. The revenue from the Farm Equipment segment increased by 9% YoY to Rs 8,144.15 crore, with the EBIT margin expanding to 18.5%.

Adani Power: The company's net profit for Q1FY25 declined by 55.3% to Rs 3,913 crore, while revenue increased by 35% YoY to Rs 14,955.6 crore. EBITDA also saw a 76% YoY increase to Rs 6,195 crore, with a margin of 41.4%. The decline in net profit was attributed to higher fuel costs. Power sales volume rose by 38% to 24.1 billion units. Expenses increased by 13.5% to Rs 10,568 crore, driven by higher fuel costs. The company is currently developing three Ultra-supercritical projects, each with a capacity of 1,600 MW. Adani Power’s installed thermal power capacity is 15,210 MW across eight plants.

Tata Steel: The company's consolidated net profit for Q1FY25 jumped by 51% to Rs 960 crore, up from Rs 634 crore YoY. However, it fell short of analysts' expectations of Rs 1,025 crore. Revenue declined by 8% YoY to Rs 54,771 crore. EBITDA increased by 11.4% YoY to Rs 6,822 crore, with a margin of 12.5%. The net debt amounted to Rs 82,162 crore, while the liquidity stood at Rs 36,460 crore. In Q1, Tata Steel allocated Rs 3,777 crore for capex, with the Kalinganagar expansion project nearing completion.

Zee Entertainment Enterprises: The company announced that it will acquire the remaining 20% stake in Margo Networks Private Limited, making it a 100% subsidiary. In other news, Star India terminated its agreement with Zee Entertainment for sub-licensing linear TV rights for ICC Men’s tournaments, citing a breach of contract. The original agreement, signed in August 2022, positioned Zee as a key player in broadcasting major ICC events. Star India is now pursuing damages in an ongoing arbitration process.

Bank of Baroda: Bob reported a 9.5% year-over-year increase in net profit to Rs 4,458.2 crore for the first quarter of fiscal year 2025. Net interest income rose by 5.5% year-over-year to Rs 11,600 crore. The gross non-performing assets (NPA) stood at 2.88%, while the net NPA was at 0.69%. Global advances increased by 8.1% year-over-year to Rs 10,71,681 crore, and domestic advances rose by 8.5% year-over-year to Rs 8,81,785 crore. Domestic deposits grew by 5.3% year-over-year to Rs 11,05,460 crore. The bank's Provision Coverage Ratio stood at 93.32%, and the Capital to Risk-Weighted Assets Ratio (CRAR) was at 16.82%.

Indus Towers: The company expects an increase in free cash flows due to an anticipated rise in co-locations from Vodafone Idea and improved collection of past dues. The company has announced a share buyback worth Rs 2,640 crore, representing a 2.107% stake, at Rs 465 apiece. Bharti Airtel will not participate in the buyback, while Vodafone Group Plc may participate. Vodafone Idea owes Indus Towers an estimated Rs 10,000 crore in past dues. The tower provider expects payments of outstanding dues to stabilize as Vodafone Idea secures funding.

Coal India: CIL reported a 4% increase in consolidated net profit to Rs 10,943.55 crore for Q1FY25, up from Rs 10,498.39 crore YoY. Revenue from operations rose by 1.3% to Rs 36,465 crore. EBITDA increased by 8% to Rs 16,308.53 crore. Total income was up by 2% at Rs 38,349.21 crore. Capex for the quarter was Rs 3,331.44 crore, which is 3% higher compared to the previous year. Raw coal production was 189.286 million tonnes, up from 175.476 million tonnes YoY. Offtake stood at 198.5 million tonnes, an increase from 186.950 million tonnes YoY. Additionally, CIL incorporated Bharat Coal Gasification & Chemicals Limited as a new subsidiary and commenced operations of a non-coking coal washery with a capacity of 10 MTPA during the quarter.

Infosys: The tax authorities have raised concerns about Infosys possibly evading indirect taxes amounting to Rs 32,403 crore due to services provided by its overseas branches. Infosys has refuted the claim, stating that the tax in question does not apply to the services in question and has provided a response to the notice. The Directorate General of GST Intelligence (DGGI) is currently investigating the case of non-payment of IGST on imported services. Infosys has asserted that GST does not apply to these expenses based on recent regulations and has confirmed that it has fully settled all its GST dues.

IDBI Bank: The company has received approval from the RBI for meeting the 'fit & proper' criteria for privatization. Potential bidders for the strategic sale are expected to start the due diligence process in early August. The government and LIC plan to sell 60.7% of their stakes in IDBI Bank. Fairfax India Holdings has likely passed the RBI's rigorous 'fit and proper' test. Fairfax has also committed to retaining the current management team and staff for at least three years after the acquisition.

Aster DM Healthcare: The company recorded a net profit of Rs 5,152.2 crore for Q1FY25, a significant increase from Rs 20 crore in the previous year. Revenue from operations saw a 23.7% rise, reaching Rs 565.7 crore. EBITDA also experienced a 22% increase, totaling Rs 101.3 crore, with an EBITDA margin of 17.95%. The core hospital and clinic business achieved an operating EBITDA margin of 21%. The Karnataka and Maharashtra cluster reported a 38% year-on-year revenue growth, while Aster Labs’ revenue grew by 15% year-on-year.

Godrej Properties: The company recorded bookings worth Rs 8,637 crore in Q1FY25, a significant increase from Rs 2,254 crore in the previous year. Sales volume amounted to 8.99 million sq. ft. The net profit saw a substantial 316% year-on-year increase, reaching Rs 520 crore. However, revenue from operations decreased to Rs 739 crore from Rs 936 crore in the previous year. Additionally, GPL added two group housing projects in Pune and Bengaluru, with an estimated booking value of Rs 3,000 crore. Looking ahead, the company plans to launch 21.9 million sq. ft of real estate in FY25, with an expected booking value of Rs 30,000 crore.

Prestige Estates Projects: The company recorded a 3.4% year-on-year decrease in net profit, amounting to Rs 307 crore for Q1FY25. Revenue from operations saw a 10.8% increase, reaching Rs 1,862.1 crore. EBITDA surged by 51.2% to Rs 796.3 crore, with an EBITDA margin of 42.8%.

Indian Oil Corporation: IOCL is thinking about canceling the tender for its first green hydrogen plant in order to update the rules and attract more bidders. The bidding process closed on 9 July with two entities competing: GH4India (a consortium including IOCL, ReNew, and Larsen & Toubro) and Neometrix Engineering. The original tender was canceled in February due to allegations of giving preferential treatment to the IOCL joint venture. The revised tender removed the controversial clause, but it still faced issues, which could lead to further delays.

Angel One: The company has invested Rs 250 crore in its wealth management arm to take advantage of the increasing affluence in India. The capital will be used to develop core technological infrastructure, leverage AI and analytics, expand its presence in key markets, and develop product strategies. Angel One Wealth operates in three business verticals: HNI, UHNI, and alternate assets. The HNI population in India is expected to grow by 16% annually, reaching 16.5 lakh by 2027.

Zydus Lifesciences:The company has received marketing approval from the Mexican regulatory authority, COFEPRIS, for Mamitra. Mamitra is a Trastuzumab biosimilar used to treat breast and advanced gastric cancer. It will be available in strengths of 150 mg and 440 mg. This approval allows Zydus to expand its biosimilar portfolio into new markets.

JSW Cement: The company has made a bid to buy a 37.9% promoter stake in Orient Cement (OCL) from CK Birla. If successful, this acquisition would lead to an open offer for an additional 26% from minority shareholders. The total stake could be worth around Rs 4,546.54 crore, giving JSW Cement an opportunity to strengthen its market position strategically.