Stocks to Watch: TCS, Vedanta, Ambuja Cements, ACC, Yes Bank, DLF

Here are some stocks that are expected to attract attention on Monday, April 15th:

Tata Consultancy Services: Tata Consultancy Services (TCS) commenced the earnings season on a positive note, concluding FY24 with a strong performance in the March quarter that exceeded expectations. In Q4FY24, it achieved a net revenue of $7.36 billion, representing a sequential growth of 1.1%, in line with analysts' projections of up to 1.5% growth. The net profit for the quarter amounted to $1.5 billion, reflecting a sequential increase of 6.4%. FY24 witnessed a net revenue growth of 4.1%, reaching $29.08 billion. The net profit for the entire fiscal year reached $5.62 billion, marking a 7.7% rise from FY23's figure of $5.22 billion. Additionally, TCS reported a 150 basis point expansion in operating margin in the final quarter of FY24, reaching 26%.

Vedanta: The company is seeking funding in the range of Rs 3,900-4,000 crore from Power Finance Corp. It has secured a rupee term loan facility from the state-owned lender, amounting to at least Rs 3,918 crore, with a potential extension up to Rs 4,000 crore, as per sources familiar with the matter. These funds, obtained through an 11-year loan, will primarily be utilized to enhance the capacity of its two power plants situated in Chhattisgarh and Andhra Pradesh. The objective is to increase the operational capacity of its power business in India to 4.8GW by FY27, up from the current 2.58 GW.

Ambuja Cements, ACC: The Adani group, which controls Ambuja Cements and ACC Ltd, aims to capture approximately 20% of the Indian cement market by FY28. Ambuja Cements, in an investor presentation, outlined its plans to achieve this target through Adani Cement, utilizing internal accruals to maintain a debt-free status. Adani Cement is accelerating its capacity expansion efforts, targeting a growth rate of 16% to reach 140 MTPA (million tonnes per annum) by FY2028. The presentation indicates that Adani Cement's market share is expected to rise to 20% by FY28 from the current 14%.

Glenmark Pharmaceuticals: The company is recalling 6,528 bottles of a hypertension drug from the US market due to "failed dissolution specifications," as per the US FDA. Glenmark's US subsidiary is recalling a specific batch of Diltiazem Hydrochloride extended-release capsules, following an "Out of Specification (OOS)" result observed during a dissolution test at the 12-month mark in a long-term stability study.

Yes Bank: Japan's Mitsubishi UFJ Financial Group (MUFG) and Sumitomo Mitsui Banking Corp. (SMBC) are reportedly seeking a controlling stake in Yes Bank, according to four individuals familiar with the matter. Another Middle Eastern firm has also shown interest. This development comes as the State Bank of India-led consortium, which rescued the lender in 2020, considers divesting its stake. MUFG and SMBC are evaluating the opportunity to strengthen their presence in the Indian market, although no final decision has been made yet.

DLF: The company has initiated construction on its new shopping mall in Gurugram, spanning 26-27 lakh square feet. This project, costing approximately Rs 2,200 crore, is part of DLF's expansion strategy in response to the resurgence of retail consumption following the COVID-19 pandemic. Sriram Khattar, DLF's Vice Chairman and MD (Rental Business), confirmed the start of construction for the 'Mall of India' in Gurugram during a recent CII conference on the real estate sector. He stated that the total size of the mall would be 26-27 lakh square feet, with an investment of around Rs 2,200 crore.

Anand Rathi Wealth: The company recorded a significant year-on-year increase of approximately 33% in its net profit, reaching Rs 56.6 crore for the quarter ending in March FY24, despite modest operating margins. Revenue from operations for the quarter also rose by 29% to Rs 184.3 crore compared to the same period last year. The company's board has approved a final dividend of Rs 9 per share for FY24 and has proposed a buyback of equity shares valued at up to Rs 164.65 crore.

PVR Inox: The multiplex operator is expanding its footprint in the Southern region to improve operational efficiency amidst challenges faced by the cinema industry, including content shortages and reduced occupancies. Ajay Bijli, Managing Director of PVR INOX Limited, stated that 33% of their portfolio, accounting for 588 out of 1,741 screens, is located in the South. Forty percent of screens scheduled to open in FY25 will also be in this region, reflecting their strategy to invest in areas with high consumption to maximize returns, given the region's high average occupancy rate.

Aster DM Healthcare: The company has declared a special dividend of Rs 118 per share following proceeds from the sale of its GCC business and redemption of redeemable preference shares issued by its wholly owned subsidiary, Affinity Holdings. 

Varun Beverages: The company has initiated production of carbonated soft drinks and energy drinks at its facility in Gorakhpur, Uttar Pradesh, as per an exchange filing on April 13. With 40 state-of-the-art manufacturing facilities, including 34 in India and 6 abroad, as of December 31, 2023, Varun Beverages reported a consolidated net profit of rs 132 crore for the December quarter of FY24, marking a significant 77% increase from Rs 75 crore in the same period the previous year. Total revenue for the quarter reached Rs 2,731 crore, up by 21% from Rs 2,257 crore in the corresponding quarter of the previous year.

Shilpa Medicare: The company, a manufacturer of Active Pharmaceutical Ingredients (API), successfully raised Rs 500 crore through a Qualified Institutional Placement (QIP), according to a filing on April 13. The company's board approved the allocation of 1.09 crore equity shares, each with a face value of Re 1, to qualified institutional purchasers. The issue price for the QIP was set at Rs 455 per share, indicating a 4.68 percent discount from the base price of Rs 477.33 per share.