Stocks to Monitor: RIL, Adani Group, Tata Consumer, Mahindra Logistics, HDFC Bank

The Indian stock market may witness a shift in focus towards individual stocks on Tuesday, as there are no major global triggers expected. As of 7:25 AM, Gift Nifty futures were indicating a flat start for the bourses with the index up only 12 points at a level of 22,371.

Reliance Industries: Reliance Industries Limited (RIL) saw a drop of almost 2 percent in its net profit in the March quarter, mainly due to reduced margins in the petrochemicals sector and an increase in tax payments. However, the company's retail and telecom sectors continued to show consistent growth. RIL's consolidated profit for the quarter was Rs 18,951 crore, which is lower than Rs 19,299 crore from the same period in the previous year. This was also below the Rs 19,726 crore that eight analysts had predicted in a Bloomberg survey. Nevertheless, RIL's EBITDA increased by 14 percent, and the EBITDA margin also rose by 50 basis points to 17.8 percent. The company's consolidated revenue grew by 11 percent to Rs 2.4 trillion. For the full fiscal year of FY24, RIL reported a consolidated profit of Rs 69,621 crore, which is a 4 percent increase from FY23. The company also announced a dividend of Rs 10 per share for FY24, in addition to the Rs 9 per share declared earlier in the year. Pre-tax profit also grew by 11 percent, surpassing Rs 1 trillion.

Adani Group companies: The Securities and Exchange Board of India (SEBI) has reportedly found that twelve offshore funds that have invested in Adani Group companies have violated disclosure rules and exceeded investment limits. Two individuals with firsthand knowledge of the situation disclosed this information but preferred to remain anonymous as they were not authorized to speak to the media. Earlier this year, SEBI sent notices to a dozen offshore investors in the Adani group, outlining the charges and requesting explanations for the disclosure violations and breaches of investment limits. "The offshore funds were disclosing their investments in Adani group companies at the individual fund level. The regulator, however, wanted the disclosure of holdings at the offshore fund group level", one of the sources explained. Eight offshore funds submitted written requests to the regulator proposing a settlement of charges through payment of penalty without admitting guilt.

Tata Consumer Products: The company is scheduled to reveal its Q4FY24 and full-year earnings on April 23. Analysts anticipate that the company's revenue growth will surpass that of its industry peers, fueled by increased sales of beverages, rising salt volumes, and the acquisition of Capital Foods, the owner of the Ching's Secret brand. According to analysts' estimates, Tata Consumer's revenue is expected to grow by 4.8 percent YoY to Rs 3,989 crore. The bottom line growth is expected to be approximately 13.4 percent higher YoY at Rs 329 crore. The EBITDA margin is projected to widen by 100 basis points YoY, supported by moderate tea costs and stable salt prices. A basis point represents one-hundredth of a percentage point.

Mahindra Logistics: Mahindra Logistics reported a net loss of Rs 11.9 crore for Q4FY24, which is a decline from a net profit of Rs 0.20 crore in Q4FY23. However, the company's operational revenue grew by 14 percent to Rs 1,450.8 crore in Q4FY24, compared to Rs 1,272.5 crore in the same period of the previous fiscal year. On the other hand, EBITDA declined by 11.1 percent to Rs 56.6 crore in the quarter, down from Rs 63.7 crore in the corresponding period of the previous fiscal year. The EBITDA margin was 3.9 percent in the reported quarter, compared to 5 percent in the corresponding period of the previous fiscal year.

Vodafone Idea: The follow-on public offer (FPO) of the company, which is the largest in India and worth Rs 18,000 crore, was fully subscribed on the third day. This was primarily due to the keen interest shown by global institutional investors such as GQG, Capital Group, and Fidelity Investments. The portions for qualified institutional buyers (QIBs) and non-institutional investors (NIIs) were subscribed 1.23 times and 1.93 times respectively, while the retail segment saw a subscription of 42 percent.

Tejas Networks: On April 22, Monday, the company released a regulatory filing announcing a net profit of Rs 146.8 crore for Q4FY24. This is a significant improvement compared to the same quarter last year when the company suffered a net loss of Rs 11.5 crore. The company's operational revenue saw an impressive jump of 343.40 percent, from Rs 299.3 crore to Rs 1,326.9 crore in the same period. During the quarter, the company was able to collect Rs 650 crore out of the trade receivables of Rs 1,458 crore. As a result, the working capital increased by Rs 1,519 crore. In the fourth quarter of FY24, Tejas and its subsidiaries were granted 22 patents, bringing the total count to 335.

HDFC Bank: Mitsubishi UFJ Financial Group Inc. is considering improving its offer of $1.7 billion to acquire a minority stake in HDFC Bank Ltd.'s consumer lending division in India. The success of the deal is likely to depend on the valuation and Mitsubishi's involvement in key decision-making processes, according to sources familiar with the matter. Both parties aim to reach an agreement within a month, as per these anonymous sources.

Hindustan Zinc: Hindustan Zinc, according to Chief Financial Officer Sandeep Modi, has allotted $300 million for capital expenditure in FY25 to build a new roaster in Rajasthan. Modi highlighted that the company's strong cash flow would be sufficient to cover the project's cost, eliminating the need for additional borrowing. Modi also stated, "We have ample cash flow...we have over Rs 10,000 crore of liquidity available. We do not intend to borrow solely for the capex." Furthermore, he confirmed that the allocated capital expenditure would be used to support the company's renewable energy initiatives.

CMS Info Systems: A company that specializes in cash management services is planning to expand its operations into gold logistics and retail loan repayment collections. In the fiscal year 2023, the company reported revenues of over Rs 2,000 crore and has already tested and incubated two new business lines - bullion logistics and debt collections. These ventures are expected to be launched commercially soon. With a revenue growth of more than 20 percent in the past three years, CMS is looking forward to additional growth from these new business lines.

Tamilnad Mercantile Bank: Tamilnad Mercantile Bank reported on Monday, April 22 that its net profit for Q4FY24 remained steady at Rs 253 crore. The Net Interest Income (NII) saw a 7.5 percent increase, rising to Rs 567 crore from Rs 527.3 crore in the same quarter of FY23. The Gross Non-Performing Assets (GNPAs) were at 1.44 percent in the March quarter, down from 1.69 percent in the December quarter. Similarly, Net NPAs were at 0.85 percent, down from 0.98 percent quarter-on-quarter. The net profit for FY24 was Rs 1,072 crore as of March 31, 2024, a 4.18 percent increase from Rs 1,029 crore in the year ending March 31, 2023. The bank's deposits increased to Rs 49,515 crore, up from Rs 47,766 crore in FY23. The advances increased to Rs 39,970 crore, growing at a rate of 6.35 percent. The Net Interest Income rose to Rs 2,151 crore as of March 31, 2024, up 2.72 percent from Rs 2,094 crore in FY23.