Stocks to Focus: Vodafone Idea, Hero, IRCTC, JSW Steel, Bharti Airtel, Power Grid
Stocks to Watch Today, Tuesday, August 13, 2024: The BSE Sensex and the NSE Nifty50, India's main stock indices, are expected to start the day with mixed global influences. In Asia, Japan's Nikkei rose by 2.33 percent, the Shanghai Composite was up 0.08 percent, South Korea's Kospi increased by 0.11 percent, Hong Kong's Hang Seng rose by 0.21 percent, and the Asia Dow went up by 1.42 percent. At 07:00 AM, GIFT Nifty futures were around 24,360, indicating a cautious opening for the NSE Nifty50 index.
Vodafone Idea: The company reported a reduced loss of Rs 6,434 crore for the quarter ended June 2024, down from Rs 7,674 crore the previous year. Revenues slightly decreased to Rs 10,508 crore from Rs 10,606 crore. The company is currently in discussions with lenders to secure debt funding of Rs 35,000 crore for network expansion. As of June, the company has a total of 210 million subscribers, with 126.7 million being 4G subscribers.
Hero MotoCorp: The world’s largest two-wheeler company is scheduled to release its earnings report for the first fiscal quarter of FY25 on August 13. Analysts expect strong growth in sales volume and premiumization trends to contribute to double-digit sales growth for the company. It is anticipated that the company will achieve a 20 percent year-on-year increase in revenue, reaching Rs 10,520 crore.
Indian Railway Finance Corporation: IRFC reported a 1.64% increase in net profits, amounting to Rs 1,576.83 crore for the April to June quarter of the financial year 2024-25. The company's revenue from operations also saw a 1.37% rise, reaching Rs 6,765.63 crore for the first quarter of the financial year 2024-25.
JSW Steel: The company is planning to acquire a controlling stake in an Australian miner for $170 million in order to secure the supply of coking coal, a key raw material that is scarce in India. The company's board has approved a payment of $120 million for a 66.67% stake in M Res NSW HCC Pty Ltd. Additionally, an extra $50 million will be paid by 2030 as part of a deferred payment agreement with the miner.
Power Grid Corporation: The company has won a transmission project in Rajasthan through tariff-based competitive bidding. The project involves establishing the transmission system associated with the 'Additional Transmission System for Evacuation of Power from Bhadla-III PS as Part of Rajasthan REZ Phase-III Scheme (20 GW)'.
RVNL, Vodafone Idea, Dixon Technologies (India), Oil India, Oracle Financial, Prestige Estates and Zydus Lifesciences: MSCI India Index will include seven new stocks in its August reshuffle. Stocks of companies like RVNL, Vodafone Idea, Dixon Technologies (India), Oil India, Oracle Financial, Prestige Estates, and Zydus Lifesciences are expected to be included in the index, while Bandhan Bank will be excluded from the index. The changes will be implemented as of the close of August 30, 2024. HDFC Bank shares will see an increase in its weightage in the MSCI indices in two tranches. After the August round of weightage increase, HDFC Bank is likely to attract inflows worth $1.5 billion.
Wipro: The company announced the resignation of its Chief Technology Officer, Subha Tatavarti, effective August 16th. Tatavarti, who joined Wipro in March 2021 from Walmart Inc., is leaving to pursue opportunities outside the company. Wipro has not yet announced Tatavarti’s replacement.
Yes Bank: Sumitomo Mitsui Banking Corporation (SMBC) is in discussions to purchase a 51% stake in Yes Bank Ltd. SMBC's global CEO, Akihiro Fukutome, is expected to meet with officials from the RBI and SBI to discuss the potential acquisition. The deal is valued at about $5 billion. State-owned SBI, which currently owns a 23.99% stake in Yes Bank, has been seeking to reduce its holding since a three-year lock-in period expired last year.
Apollo Hospitals Enterprise: The company is scheduled to release its April-June earnings on August 13. It is expected that the company's revenue will grow by around 15% from the previous fiscal year, reaching Rs 5,072 crore from Rs 4,418 crore. Additionally, the net profit is expected to surge by 72% to Rs 287 crore, up from Rs 166.60 crore in the corresponding quarter last year.
Bharti Airtel: The company is about to acquire a 24.5% stake in British Telecom Group Plc through its subsidiary, Bharti Televentures UK Ltd. The shares will be purchased from Altice UK, which currently holds a 24.5% stake in BT. Bharti Enterprises clarified that the funds for this transaction are not affiliated with Bharti Airtel or any of its subsidiaries. The acquisition will take place in two phases: 9.99% of BT will be acquired immediately, with the remaining 14.51% to be acquired after receiving regulatory clearances. The exact value of the deal was not disclosed, but Altice's 24.5% stake in BT was estimated to be worth about £3.2 billion based on the last closing price on the London Stock Exchange.
National Mineral Development Corporation: In the June quarter, NMDC reported a consolidated net profit of Rs 1,970.8 crore, which is a 19% increase from Rs 1,652.2 crore in the same period last year. This rise is attributed to increased realizations. The company's consolidated revenue from operations remained unchanged at Rs 5,414.2 crore for the quarter ending on June 30.
Credit Access Grameen: India’s largest micro-lender may soon have a new owner as its Dutch promoter looks to exit. The Netherlands-based CreditAccess India B.V., which holds a 66.56% stake, is seeking a valuation of around $2.7 billion for the micro-financier.
Axis Bank: The Delhi High Court has directed the Securities and Exchange Board of India and the Reserve Bank of India to expedite their investigation into alleged fraudulent practices by Axis Bank in the sale and purchase of shares in Max Life Insurance. The court dismissed a petition by former Rajya Sabha member Subramanian Swamy, who had requested the formation of a committee to look into these claims.
ITC: The company has signed a new property in Pushkar, Rajasthan, to be operated under the Welcomhotel brand. The company has partnered with SRK Hospitality Pvt Ltd for the 96-room hotel, which is expected to open in 2026.
Hindustan Copper: The company reported a twofold rise in consolidated net profit, reaching Rs 113.40 crore for the quarter ended June 30, 2024, up from Rs 47.28 crore in the same period last year. Additionally, the company's consolidated income for the April-June period increased to Rs 500.44 crore from Rs 384.73 crore in the previous year.
Zetwerk: The contract manufacturing marketplace has added automobile and engineering industry veteran Vinod Kumar Dasari to its board of directors. Dasari currently serves as an Operating Partner at private equity firm Advent International.
TVS Motor Company: The company has earmarked Rs 2,200 crore for this fiscal year, with half of the funds allocated to capital expenditure and the remainder for product development, new launches, and marketing expenses.
Berger Paints India: The company has implemented three price increases since June, which are expected to drive its 'value' growth to approximately 5% in the second quarter ending in September 2024. The company aims to double its revenue to Rs 20,000 crore by 2029.
Hindustan Zinc: The company clarified a report claiming that it would be giving out a special dividend of Rs 6,000 crore to its shareholders this month. The company stated that only the Board of Directors has the authority to make such a decision, and no proposal has been submitted to the Board yet.
Aadhar Housing Finance: The company plans to scale back its operations in Bihar, West Bengal, Jharkhand, and Orissa due to increasing delinquencies. It is also considering partnering with a private sector bank for its co-lending business.
Oberoi Realty: The company has announced that the National Company Law Tribunal has approved its resolution plan for Nirmal Lifestyle Realty. As per the plan, the company will pay Rs 230 crore to the creditors of the bankrupt firm. Additionally, the company will subscribe to 100% of the equity share capital of NLRPL for Rs 1,00,000, making it a wholly-owned subsidiary of the company.
Olectra Greentech: The company reported a 34.2% increase in net profit to Rs 24.3 crore and a 45.3% rise in revenue to Rs 313.9 crore. Additionally, other income increased to Rs 3.06 crore, and the share of associates became profitable at Rs 3.55 crore. The board re-appointed Venkateswara Pradeep Karumuru as the Managing Director of the company for three years, effective July 29th.
Kotak Mahindra Bank: The company’s wholly-owned subsidiaries, Sonata Finance and BSS Microfinance, have approved a Scheme of Amalgamation of Sonata with BSS. The scheme is subject to approval from shareholders, creditors, and the National Company Law Tribunal (NCLT).
SpiceJet: The company is dealing with a setback as two French engine lessors, Team France and Sunbird France, have rejected an offer by chairman and managing director Ajay Singh to pledge his shares as collateral for the airline’s outstanding liabilities. The lessors have demanded disclosure of Singh’s assets and have given SpiceJet 15 days to make alternative arrangements, ground, and return the three engines in question.
