Stocks to Focus: Eicher Motors, ABFRL, Protean eGov, Apollo Tyres, BSE, TVS Supply Chain

Stocks to Watch on Thursday, August 8: Benchmarks Sensex and Nifty50 may see a gap-down opening influenced by weak global cues. At 6:50 AM, GIFT Nifty futures were down 179 points, trading at 24,187.5, indicating a negative start for Indian stocks. Asian markets were mostly in the red, reflecting China’s mixed trade data where exports fell short of expectations while imports increased. Japan’s Nikkei dropped 1.74 percent, the Kospi fell 1.34 percent, and the ASX200 was down 0.37 percent.

Eicher Motors: The company is scheduled to release its earnings report for the first fiscal quarter of FY25 on 8th August. Flat volume growth and slow sales of its popular Hunter Enfield bikes are expected to limit the company’s revenue and profit growth to single digits. According to analyst estimates, the company is expected to see an 8% year-over-year increase in revenue, reaching Rs 4,263 crore. Net profit is projected to rise by 8.4% to Rs 991 crore from Rs 914 crore in the same quarter of the previous fiscal year.

Aditya Birla Fashion and Retail Limited: On August 7, ABFRL reported a widened consolidated net loss of Rs 161 crore for the quarter ended June 30, 2024, compared to a net loss of Rs 141 crore in the same period last year. However, the company's net loss narrowed sequentially from the Rs 229 crore loss reported in the March quarter. Additionally, the company's revenue increased by 7% to Rs 3,428 crore in Q1FY25, up from Rs 3,196 crore in Q1FY24.

Protean eGov Technologies: Standard Chartered Bank is planning to sell its 3.09% equity stake in the IT-enabled solutions company Protean through block deals. The sale is expected to occur on 8 August, with the share price estimated to be between Rs 1,750 and Rs 1,775. Reports suggest that the total offer size could reach Rs 221.9 crore at the higher end of the price range.

Apollo Tyres: The company's net profit dropped by 24% to Rs 302 crore for Q1FY25, compared to Rs 397 crore in the same period last year. Revenue from operations increased by 1.4% to Rs 6,335 crore compared to Rs 6,244 crore in the year-ago period. The decrease in net profit was attributed to lower sales and increased raw material costs. EBITDA stood at Rs 909.4 crore, marking a drop of 13.5% compared to Rs 1,051.4 crore in the year-ago period, resulting in margins falling to 14.4% from 16.8%.

BSE: The stock exchange reported a 40% decline in net profit at Rs 265.05 crore in the first quarter of FY25, compared to Rs 442.66 crore in the corresponding period of the previous financial year. The exchange had posted a net profit of Rs 107.04 crore in the March quarter. The firm’s revenue from operations rose over 180% to Rs 607.7 crore in the quarter under review from Rs 215.62 crore in the year-ago period. In the March quarter, the company’s revenue stood at Rs 488.37 crore. The income from investments jumped 43% to Rs 62.9 crore from Rs 43.99 crore in the same period of the previous financial year. Its EBITDA stood at Rs 284 crore, jumping significantly from Rs 70 crore in the year-ago period. Meanwhile, the EBITDA margins came in at 47% in Q1FY25 over 33% in the corresponding period of FY24.

TVS Supply Chain Solutions: The company has secured a multi-year contract with JCB India to manage its in-plant warehousing and logistics operations at the JCB facility in Vadodara, Gujarat, for three years. The facility produces fabrications and components for JCB plants globally. TVS SCS will provide end-to-end warehouse management services, deploying material handling equipment, and employing close to 110 personnel.

Adani Enterprises: Billionaire Gautam Adani's flagship firm, Adani Enterprises, is considering raising around Rs 100 billion ($1.2 billion) to Rs 120 billion through a share sale, according to sources. Adani Enterprises may seek to raise funds through a qualified institutional placement (QIP), with the share sale potentially taking place as early as September. The Adani Group is seeking institutional investors, including those from the US, to expand its shareholder base and attract more research analysts to cover the firm.

Reliance Industries: The conglomerate, led by Mukesh Ambani, announced that it has strengthened its balance sheet by securing funds at competitive rates. This is to finance capital expenditures, facilitate business expansion, and refinance existing debts despite challenging market conditions.

Hindalco Industries: In the latest financial report, Novelis, a subsidiary of Hindalco Industries and a major producer of aluminum, experienced a 3% year-on-year decrease in net income attributable to common shareholders, amounting to $151 million. However, the company's net sales increased by 2% to reach $4.2 billion. This growth was driven by higher average aluminum prices and an increase in total shipments. Novelis particularly saw a significant increase in shipments for beverage packaging due to a rise in demand. Despite this, the company's overall profit decreased due to various factors including flooding at its Switzerland plant, restructuring activities, and unfavorable metal prices. On the positive side, the company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 19% year-on-year to $500 million in the June quarter, and the adjusted EBITDA per tonne rose by 10% to $525.

Godrej Consumer Products: In the June quarter of FY25, GCPL reported a 41.36% increase in consolidated profit after tax, reaching Rs 450.69 crore. This growth was attributed to lower raw material costs. The company's total revenue from operations for the quarter was Rs 3,331.58 crore, down from Rs 3,448.91 crore in the same period last fiscal year. Despite this decrease, the company's board declared an interim dividend of Rs 5 per share of face value of Re 1 each for the financial year 2024-25. Additionally, GCPL's board approved an investment of Rs 500 crore over five years for its entry into the pet care business through one of its subsidiaries.

Welspun Corp: The company's net profit increased by 47% to Rs 247.94 crore in the June quarter, primarily because of reduced expenses. In the same period last year, the company had reported a net profit of Rs 168.45 crore. However, the company's total income dropped to Rs 3,179.67 crore from Rs 4,118.78 crore in the year-ago quarter. Welspun Corp managed to decrease its expenses to Rs 2,914.50 crore from Rs 3,878.67 crore year on year.

Abbott India: Abbott India, a pharmaceutical company, reported a 13% year-over-year increase in net profit to Rs 328 crore for the first quarter ending on June 30, 2024, compared to Rs 290 crore in the same quarter of the previous fiscal year. The revenue from operations grew by 5.3% to Rs 1,557.6 crore from Rs 1,479 crore. The EBITDA rose by 10.2% to Rs 391.1 crore from Rs 355 crore, resulting in an EBITDA margin of 25.1%.

NHPC: State-owned hydropower giant NHPC reported a 1.2% YoY increase in net profit to Rs 1,108.5 crore for the first quarter ended June 30, 2024, compared to Rs 1,095 crore in the same quarter last fiscal. Revenue from operations dipped 2.3% to Rs 2,694.2 crore from Rs 2,757.3 crore in the corresponding period of the preceding fiscal. EBITDA fell 2.8% to Rs 1,462.6 crore from Rs 1,504.6 crore, with an EBITDA margin of 54.3%.

Brookfield India REIT: Office space operator Brookfield India Real Estate Investment Trust reported a consolidated net profit of Rs 37.40 crore for the quarter ending June 30, compared to a loss of Rs 27.10 crore in the same quarter last year. It declared a net distributable cash flow of around Rs 216.80 crore for the quarter, equivalent to Rs 4.50 per unit. For Q4FY24, Brookfield India REIT reported a marginal profit of around Rs 4.60 crore. The REIT, backed by Brookfield Asset Management, reported a consolidated income of Rs 573.8 crore for the quarter, higher than Rs 314.10 crore for the same quarter last year, and Rs 535.90 crore reported in the quarter ending March 31.

Lemon Tree Hotels: The company's consolidated net profit for Q1 decreased by 26.9% YoY to Rs 20.1 crore, compared to Rs 27.5 crore in the same period last year. Revenue increased by 19.5% to Rs 268 crore in the quarter, compared to Rs 224.2 crore.

PB Fintech: The company, which operates Policybazaar and Paisabazaar, has decided to change its approach to acquiring companies. After the founder of MyLoanCare, which it acquired in 2021, exited the company, PB Fintech has announced that it will now primarily focus on making minority investments. Co-founder Yashish Dahiya stated that there may be exceptions for strategically crucial deals, but the company plans to move away from taking a majority stake in acquisitions.

Maruti Suzuki India: The country's largest carmaker announced on 7 August that it will recall 2,555 Alto K10 vehicles due to a suspected defect in the steering gear box assembly. In a statement filed with the stock exchange, Maruti said, "The defect may, in rare cases, affect the vehicle's steerability." Owners of the affected vehicles will be contacted by Maruti Suzuki authorized dealer workshops for inspection and replacement of the part, free of cost.

Marico: The operating conditions in the Bangladesh market are gradually improving, although the company remains vigilant of the evolving situation. After a brief interruption, a large majority of its retail sales force and distributors have now resumed operations. The company expects manufacturing operations to resume soon.

Sapphire Foods India: Kotak Mahindra Mutual Fund has purchased a 0.94% stake in the company at an average price of Rs 1,650 per share. Arinjaya (Mauritius), which is part of the promoter group, sold a 3.7% stake in the company at an average price of Rs 1,649.94 per share.