Stocks to Monitor: UltraTech Cement, ZEEL, Mahindra Finance, JSW Energy, Zomato

Asian stocks took a hit on Wednesday in response to the downward trend seen on Wall Street overnight. As of 7:40 AM, the Gift Nifty had fallen 127 points to 22,450, suggesting a weak start for domestic markets. These are the stocks to watch on Wednesday, April 3.

UltraTech Cement: The company has announced its plan to allocate Rs 32,400 crore over the next three years for capital expenditure with the aim of expanding its operations. The company intends to increase its capacity to around 200 million tonnes per annum (MTPA) in the near future. Furthermore, the company has reported that it has started two new greenfield projects with a combined capacity of 5.4 MTPA. These projects are located in Chhattisgarh and Tamil Nadu, and will increase the company's total capacity to 151.6 MTPA. In the previous year, the cement producer has increased its capacity by 18.7 MTPA. Currently, additional expansions are underway at 16 sites, which will increase the capacity by 35.5 MTPA.

Zee Entertainment Enterprises: Punit Goenka, CEO and MD of Zee Entertainment Enterprises Ltd, announced a 20 percent voluntary salary cut. Goenka said, "As we strive towards our future goals, the organization is firmly committed to embracing a cost-effective approach. I am currently executing the necessary measures across all company divisions, and I believe the desired shift in mindset should start with me." He clarified that the salary reduction applies solely to him. In the fiscal year 2023, Goenka's compensation totaled Rs 35 crore, while it was Rs 41.1 crore and Rs 13.2 crore, respectively, in FY22 and FY21.

Mahindra and Mahindra Financial Services: The company had a successful fiscal year ending on March 31, 2024, with a rise in disbursements and business assets. In March 2024, the company's total disbursements were estimated at approximately Rs 6,100 crore, indicating a 9 percent growth compared to the previous year. The fourth quarter of FY24 saw disbursements of about Rs 15,300 crore, which is an 11 percent increase year-on-year. The total disbursements for the fiscal year reached approximately Rs 56,200 crore, showing a 13 percent year-on-year growth. These positive disbursement trends throughout FY24 led to an increase in business assets, which stood at around Rs 1,02,400 crore as of March 31, 2024. This marks a significant 24 percent growth from March 31, 2023, and a 6 percent increase from December 31, 2023.

JSW Energy: JSW Energy has recently announced its plan to raise a sum of Rs 5,000 crores through a Qualified Institutional Placement process. The shares will be offered to high net worth investors and the QIP will be conducted in one or more tranches. The company has not disclosed any information regarding the purpose of this fundraising. According to a regulatory filing, the company intends to place equity shares with a face value of Rs 10 each to eligible investors for a total amount not exceeding Rs 5,000 crores in one or more tranches. The details of the QIP, including dates and pricing, are yet to be finalized.

Zomato: Zomato, a popular food delivery company, has revealed in a regulatory filing that it has been served with a service tax demand and penalty order amounting to over Rs 184 crore. The demand is for the period from October 2014 to June 2017. According to the company, the demand order is related to the non-payment of service tax on specific sales made by its foreign subsidiaries and branches to customers outside India. Zomato has stated that it plans to contest the order before an appropriate authority.

Hindustan Zinc: Hindustan Zinc has reported its mined metal production for the quarter ending in March of the fiscal year 2024. The company has witnessed a 1 percent year-on-year (YoY) decrease in mined metal production, which dropped to 299 kt. However, there has been an 11 percent increase sequentially, which has been credited to an improved combination of mined metal grades and increased ore production across various mines. Refining metal production has seen a rise, with 273 kt marking a 6 percent quarter-on-quarter (QoQ) increase, which has been attributed to better plant availability. The YoY increase for refined metal production was 1 percent.

Shriram Properties: Shriram Properties, a real estate company, announced on April 2 that its subsidiary, Shriram Properties and Infrastructure Pvt. Ltd, has been issued a penalty order of Rs 446.79 crore by the office of the Deputy Commissioner of Income Tax, Central Circle 1 (4) Chennai. The penalty is related to income tax proceedings for the financial year 2018 under Section 153C, which concerns the sale of shares in the subsidiary. According to the filing with the stock exchange, the company stated that the penalty order is not sustainable according to legal advice, as it is related to a tax demand that is currently being contested in the Madras High Court. The order only specifies the penalty amount.

Axis Bank: The Competition Commission of India has approved Axis Bank's planned stake acquisition in Max Life Insurance Company Ltd. This approval follows the announcement made by the company in August last year regarding a capital boost from Axis Bank. This capital boost was achieved through the issuance of 14.25 crore equity shares, aimed at supporting Max Life's future growth plans, improving its capital position, and enhancing its solvency margins.

Biocon: Biocon Biologics, a subsidiary of Biocon, has completed the transfer of its branded formulations business in India to Eris Lifesciences. The transaction, which was conducted on a slump sale basis, has been valued at Rs 1,242 crore. The business comprises of metabolics, oncology, and critical care diagnostics.

Anupam Rasayan India: The company has signed a letter of intent with a Japanese multinational corporation. The seven-year deal is worth $90 million (Rs 743 crore) and involves the supply of two advanced intermediates using fluorination chemistry.