Stocks to Monitor: Tata Motors, IIFL Finance, Jindal Stainless, Macrotech Developers, AU Small Finance Bank
The equity benchmark indices Sensex and Nifty had a quiet Monday. They are expected to have a slow start on Tuesday, with investors keeping an eye on the weakening global markets. At 7:00 AM, the Gift Nifty futures were down by 11 points at 22,487.50 from the Nifty futures' last close.
Tata Motors: The major Indian automaker Tata Motors has recently announced its decision to split its commercial vehicles and passenger vehicles businesses into separate listed entities. This strategic move is aimed at unlocking potential value and reflects the company's confidence in the future of both sectors. The commercial vehicles division (CV) of Tata Motors, which produces trucks, buses, and vans will operate independently from the passenger vehicles (PV) division that manufactures cars, SUVs, and electric vehicles (EV). Additionally, the PV division also includes the British luxury car manufacturer Jaguar Land-Rover (JLR), which contributes to more than 80 percent of its revenue.
IIFL Finance: The Reserve Bank of India (RBI) has instructed IIFL Finance to stop distributing gold loans immediately due to significant supervisory concerns found in the non-banking financial company's gold loan portfolio. The central bank has identified regulatory breaches and lapses that negatively impact customer interests. The RBI examined the company's financial status as of 31 March 2023, and discovered grave discrepancies in the evaluation and certification of gold used as collateral for loans and during auctions in case of default.
Jindal Stainless Steel: On Monday, Jyotiraditya Scindia, the Union Minister for Aviation and Steel, praised the steelmaker's green hydrogen initiative, which aligns with the government's commitment to a greener and more sustainable future. This initiative, launched by Jindal Stainless Steel, will serve as a model for other industry players to adopt clean technologies. The inaugural green hydrogen facility in the stainless-steel industry has been set up by JSL in Hisar. This facility, established under a 25-year agreement with Hygenco Green Energies Private Ltd, is expected to revolutionize steel production sustainability.
Macrotech Developers: Macrotech Developers, a renowned real estate firm, has recently initiated a Qualified Institutional Placement (QIP) to raise an estimated $400 million, according to reliable sources in the industry cited by Moneycontrol. As per one of the sources, the funds raised through this QIP will be utilized for land acquisition and debt repayment. The initiation of the deal has been confirmed by a second source as well.
Maruti Suzuki India: The car manufacturer is getting ready for a major push in the SUV market. At least 60 percent of their new models planned to be launched in the next three years starting from the fiscal year 2025 will be SUVs. This indicates the Japanese automaker's intention to focus more on SUVs to cater to the changing preferences of consumers. As per insiders who are familiar with the company's plans, the upcoming releases will take the total number of SUVs in the manufacturer's portfolio to around 30, which already includes the Grand Vitara and Brezza SUVs.
AU Small Finance Bank: The Reserve Bank of India (RBI) has approved the Amalgamation Scheme between Fincare Small Finance Bank and AU Small Finance Bank Ltd. The merger will officially take effect from April 1, 2024, as per RBI's announcement. After the merger, all existing branches of Fincare Small Finance Bank Ltd will operate as branches of AU Small Finance Bank Ltd. The Competition Commission of India (CCI) had already approved the merger on January 23.
Jai Balaji Industries: Jai Balaji Industries, a rare success story in the iron and steel sector, has been added to multiple indices of the National Stock Exchange. From March 28, the company has been included in the Nifty 500, Nifty 500 Multicap 50:25:25, Nifty SmallCap 250, and NSE Mid and Small Cap index. The company was also added to the MSCI Smallcap Index in November of the previous year. As a result of its inclusion in the MSCI index, the institutional holding in the company increased from 0.67 percent as of September 30, 2023, to 2.57 percent by the end of December.
Apeejay Surrendra Park Hotels: The company announced on March 4th that it had achieved a 46 percent increase in its consolidated net profit, which reached Rs 27.42 crore for the third quarter ending on December 31, 2023. In the corresponding quarter of the previous fiscal year, the company had reported a consolidated net profit of Rs 18.77 crore. The company's total income for the reviewed quarter was Rs 163.61 crore, compared to Rs 142.64 crore in the same period of the previous year. However, total expenses for the quarter also rose to Rs 102.99 crore from Rs 89.74 crore a year ago.
Angel One: The brokerage firm reported a 4.9 percent increase in its client base from January to February, and a massive 60.8 percent increase from February last year. The client base stood at 2.14 crore at the end of February, compared to 2.04 crore at the end of January and 1.33 crore in February 2020. The firm acquired 10.1 lakh new clients in February, which is a 1.7 percent decrease from January, but a substantial 126.80 percent increase from the same month last year when the number was 4.5 lakh.
Brigade Enterprises: The Bengaluru-based real estate developer has launched the Dioro project at Brigade El Dorado, covering approximately 6.1 million square feet. The project is projected to generate revenue of Rs 380 crore.
