Stocks to Focus: Hindustan Zinc, Glenmark Pharma, SpiceJet, Ola Electric, Borosil, MTNL
The domestic stock market indices, BSE Sensex and NSE Nifty50, are expected to open positively on Friday, August 16, 2024. This optimistic outlook is influenced by strong performances in global markets. The Nikkei in Japan rose by 2.18 percent, the Asia Dow by 1.73 percent, and South Korea's Kospi by 1.83 percent. The Shanghai Composite also saw a 0.94 percent increase, while Hong Kong's Hang Seng experienced a minor 0.02 percent decline on Friday morning. At 07:50 AM, GIFT Nifty futures indicated levels around 24,347, suggesting a potential 176-point opening gap for the NSE Nifty 50 index today.
Hindustan Zinc, Vedanta: The company is planning to distribute a second interim dividend for FY25. The board meeting is scheduled for August 20, 2024, and the record date for determining shareholder eligibility is August 28. HZL aims to distribute a special dividend payout of Rs 8,000 crore. In addition, the company's promoter, Vedanta, will be selling a 3.17% stake in Hindustan Zinc through an offer-for-sale (OFS) from August 16 to 19. The OFS will have a base size of 1.22% with an option to sell an additional 1.95% stake in case of oversubscription. The floor price has been fixed at Rs 486 per share.
Glenmark Pharmaceuticals: The company recorded a net profit of Rs 340.27 crore for Q1FY25, more than doubling from Rs 149.9 crore in the same period last year. The company’s total revenue from operations increased by 7% to Rs 3,244.2 crore. Operating income rose by 34% to Rs 588 crore, with an EBITDA margin of 18.1%.
SpiceJet: The company reported a net profit of Rs 158.6 crore for Q1FY25, marking a 19.7% decrease from the previous year. Revenue also fell by 14.7% to Rs 1,708.24 crore as the airline reduced its operations. Despite leading the industry with a 91% domestic load factor, the airline faced financial challenges, including unpaid leases and delayed salaries. Additionally, the company's promoter Ajay Singh plans to dilute his stake to raise Rs 3,000 crore. The Delhi High Court also ordered SpiceJet to ground three leased engines due to unpaid rentals.
Ola Electric Mobility: The company's net loss for Q1FY25 widened to Rs 347 crore from Rs 267 crore last year. This increase was attributed to higher finance costs and total expenses. However, the revenue saw a significant rise of 32.3% year over year, reaching Rs 1,644 crore. The EBITDA loss slightly improved to Rs 205 crore from Rs 218 crore the previous year. Additionally, Ola Electric introduced its first electric motorcycle on August 15 at the ‘Sankalp 2024’ event.
Borosil: In the first quarter of fiscal year 2025, the company's net profit increased by 86% to Rs 9.3 crore. Revenue from operations also rose by 23.1% to Rs 216.8 crore. The EBITDA increased by 47.2% to Rs 29 crore, and the EBITDA margin was 13.4%. Sales in the glassware segment went up by 42.2% to Rs 55.7 crore, while non-glassware sales grew by 20.3% to Rs 85.1 crore. Opalware sales also rose by 15.0% to Rs 76.1 crore.
Tata Steel: The company has acquired 115.92 crore shares valued at $182 million (Rs 1,528.24 crore) of its Singapore-based subsidiary, T Steel Holdings Pte, in a strategic move to enhance its international presence and operational efficiency.
Hinduja Global: The company's net profit increased significantly to Rs 165.6 crore from Rs 14.9 crore year-over-year. Revenue saw a modest growth of 3.7% to Rs 1,091.9 crore, compared to Rs 1,133.5 crore in the previous period. EBITDA experienced a substantial surge of 78.3% to Rs 16.7 crore, in contrast to Rs 76.8 crore year-over-year. However, the margin decreased from 6.8% to 1.5%.
Sun Pharmaceuticals Industries: The company has announced an agreement to acquire over a 5% stake in Delaware-based Pharmazz Inc. for up to $15 million. The investment will be made in two tranches: the first $7.5 million will be made this month, and the remaining amount will be invested by February 2025. Additionally, Sun Pharma will receive exclusive rights to license ‘Sovateltide’ for marketing in certain Emerging Market countries. Pharmazz, an Illinois-based biopharmaceutical company, develops drugs for acute cerebral ischemic stroke and hypovolemic shock, with both products approved in India.
EID Parry (India): The company's net profit declined by 15.5% year-over-year to Rs 91.3 crore for Q1FY25, down from Rs 108 crore in the corresponding period last year. Revenue from operations decreased by 4% to Rs 6,747.6 crore. EBITDA fell by 27.7% to Rs 483 crore, with margins at 7.2%, down from 9.5% last year. Standalone revenue increased to Rs 751 crore, but the standalone loss after tax was Rs 79 crore, compared to a profit of Rs 46 crore last year.
NBCC (India): The company's subsidiary HSCC (India) has secured a Rs 528.21 crore order from the Directorate of Medical Education and Research in Haryana. The order involves procuring biomedical equipment and hospital furniture for Pt. Deen Dayal Upadhayaya University of Health Sciences in Karnal. NBCC also reported a 38.5% year-on-year increase in net profit to Rs 107.2 crore and an 11.3% rise in revenue to Rs 2,144.2 crore for Q1FY25. Additionally, the company recently won orders worth nearly Rs 720 crore and a Rs 15,000 crore order from the Srinagar Development Authority.
Hindustan Aeronautics: The company announced a 76% year-over-year increase in net profit to Rs 1,435 crore for Q1FY25. This growth was supported by an 80% rise in other income to Rs 737 crore. EBITDA also saw a 13% increase to Rs 993.7 crore, resulting in expanded margins to 22.8%. However, there are concerns about meeting delivery timelines for the Tejas Light Combat aircraft and reduced engine deliveries from General Electric.
Motisons Jewellers: The company plans to raise Rs 170 crore through a preferential issue of shares in order to support long-term business growth. The Jaipur-based company will issue up to one crore fully convertible warrants at Rs 170 each, which will be convertible into equity shares within 18 months. The board also approved increasing the authorized share capital to Rs 125 crore.
MTNL: The company's revenue declined by 7.8% year-on-year to Rs 183.9 crore in Q1, while the net loss narrowed to Rs 773.5 crore. The PSU telecom company reported an unchanged EBITDA loss of Rs 150 crore. MTNL announced the sale of its stake in Mahanagar Telephone (Mauritius) and its joint venture with STPI. The company also approved a service agreement with BSNL for 10 years. The government is considering handing over MTNL’s operations to BSNL due to MTNL’s high debt.
PSP Projects: The company has announced that it has secured multiple projects worth Rs 654.67 crore. The largest order, valued at Rs 484.02 crore, is for civil and structural work at Sanand, Gujarat, and is expected to be completed in 14 months. Another project worth Rs 102 crore is for construction in Ahmedabad, and is to be completed in 10 months. In addition, the company has also won smaller orders totaling Rs 67.65 crore. This brings the total order inflow to Rs 889.98 crore for this fiscal year.
PTC India: The company's board will decide on the appointment of a full-time Chairman and Managing Director (CMD) following the removal of Rajib Kumar Mishra. Interim CMD Manoj Jhawar stated that the board is addressing the matter. SEBI had restrained Mishra from holding any board or key managerial position due to corporate governance lapses. Despite an increase in net profit, PTC India's trading volumes remained stagnant in Q1FY25. The company is exploring opportunities to increase volumes while maintaining healthy margins.
Shriram Properties: The company's consolidated net profit increased by 5% to Rs 17.46 crore for Q1FY25 due to higher income. Total income increased to Rs 210.90 crore from Rs 157.17 crore in the previous year. Ravindra Kumar Pandey was appointed as CFO, and Rajesh Yashwant Shirwatkar was promoted to Deputy CFO. Shriram Properties reported sales volumes of 0.70 million square feet and sales values of Rs 376 crore.
Adani Power: The company reaffirmed its commitment to supplying electricity to Bangladesh, stating that a recent amendment to power export rules does not affect its existing contract. The amendment allows connectivity to the Indian grid but does not obligate India to buy electricity. Adani Power’s 1,600 MW Godda plant in Jharkhand is contracted to export 100% of its power to Bangladesh. The amendment enables Adani to supply electricity to the domestic market, mitigating political risks in Bangladesh.
Panacea Biotec: The company has created India’s first indigenous tetravalent dengue vaccine, DengiAll. The phase three clinical trial began with the first participant being vaccinated at Pandit Bhagwat Dayal Sharma Post Graduate Institute of Medical Sciences in Rohtak. The trial will involve over 10,335 healthy adult participants across 19 sites in 18 states and union territories. Developed in collaboration with ICMR, the vaccine aims to address the complex challenge of achieving efficacy for all four dengue serotypes.
Mazagon Dock Shipbuilders: The Navratna PSU defense company reported a consolidated net profit of Rs 696 crore for Q1FY25, which marked a 121% increase from Rs 314 crore in the same period last year. Total income rose by nearly 10% to Rs 2,628 crore, with revenue from operations at Rs 2,357 crore. Mazagon Dock is in advanced talks to acquire additional Kalvari-class submarines for the Navy, potentially sealing a Rs 35,000-crore deal.
REC: The company has established a new wholly-owned subsidiary, Rajasthan IV 4B Power Transmission Ltd, to improve the power infrastructure in Rajasthan’s Renewable Energy Zone (REZ). The subsidiary was incorporated on August 14, 2024, and its purpose is to facilitate the evacuation of 3.5 GW of power from Rajasthan’s REZ Phase-IV, Part B. Initially, the company will be owned by REC Ltd and will later be transferred to the successful bidder through the Tariff Based Competitive Bidding process. REC recently reported a 16% year-over-year increase in net profit for Q1FY25, reflecting its growth in the power sector.
