Top Stocks in Focus: Jindal Stainless, Ambuja Cements, Godrej companies, APSEZ, Shriram Finance

The Indian equity markets will open today after a day's holiday and react to the US Federal Reserve's policy decision announced overnight. At 7:45 AM, Gift Nifty was trading 29 points higher at 22,747 levels. The Asian markets were mixed, with Nikkei and Kospi down by around 0.2 percent each, while ASX200 and Hang Seng added up to 0.8 percent.

Jindal Stainless: The company unveiled a comprehensive investment strategy totaling Rs 5,400 crore on May 1, aimed at establishing itself as a global leader in stainless steel. As part of its expansion plans, the company has entered a joint venture to build and operate a stainless steel melt shop (SMS) in Indonesia, boasting an annual production capacity of 1.2 million tonnes per annum (MTPA). Jindal Stainless is set to invest Rs 700 crore in this venture. Additionally, it has earmarked Rs 1,900 crore for enhancing downstream lines in Jajpur, Odisha. Furthermore, a sum of Rs 1,450 crore has been allocated for upgrading associated infrastructure like railway siding, sustainability initiatives, and renewable energy projects. The company also revealed its intention to acquire a 54 percent equity stake in Chromeni Steels Private Limited, with the transactions requiring an investment of approximately Rs 1,340 crore.

Ambuja Cements: Ambuja Cements reported a standalone net profit of Rs 532.29 crore for the quarter ending March 2024, which is a 6 percent increase from the previous year's same quarter net profit of Rs 502.40 crore. The company's revenue from operations in Q4FY24 increased by 12.3 percent YoY to Rs 4,780.32 crore. The operational level EBITDA for the quarter increased by 1.2 percent to Rs 797.8 crore, while the EBITDA margin decreased by 180 basis points to 16.7 percent. On a consolidated basis, the company recorded a 64 percent increase in net profit at Rs 1,055.30 crore. Consolidated revenue from operations in Q4FY24 increased by 12 percent YoY to Rs 8,893.99 crore. The Board of Directors recommended a dividend of Rs 2 per equity share for FY24, with Friday, 14 June set as the record date.

Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences: On April 30, the Godrej family announced that it had agreed to split the conglomerate into two branches. Adi and his brother Nadir will keep control of the listed entities while their cousin Jamshyd will take control of the unlisted companies and the land bank. As part of the realignment, members of Adi and Nadir's family will make an open offer to the shareholders of Astec Lifesciences. Both family groups will equally own and share the Godrej trademark. The Godrej family is now divided into two factions: Godrej Industries & Associates, led by Adi Godrej and his brother Nadir, and Godrej & Boyce Manufacturing Company (G&B), led by cousins Jamshyd Godrej and Smitha Godrej Crishna. The family has a 64.89 percent stake in Godrej Agrovet, a 23.74 percent stake in Godrej Consumer, and a 47.34 percent stake in Godrej Properties. The group has five listed firms: Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences.

Adani Ports and Special Economic Zone: APSEZ is poised to unveil its financial performance for the quarter ending March 2024 on May 1. Analysts foresee a mixed bag of earnings, anticipating notable upticks in revenue and EBITDA attributed to heightened volumes, yet a potential dip in net profit for the period. The spotlight will be on global container trade dynamics and the functioning of international ports, while investors keep a keen eye on cargo volume projections for FY25 and capital expenditure forecasts for the ongoing fiscal year. According to Equirus Capital, the company is expected to experience a 12.4 percent year-on-year decline in net profit, amounting to Rs 2,129.60 crore from Rs 2,432.30 crore in the corresponding quarter of the previous year. However, sales are forecasted to surge by 20.7 percent year-on-year, reaching Rs 6,996.40 crore compared to Rs 5,796.90 crore in the previous year. Moreover, the EBITDA margin is projected to reach 60 percent, indicating a significant increase of 377 basis points compared to the previous year. Additionally, APSEZ announced its attainment of an AAA rating from CARE Ratings on Wednesday, a distinction that makes it the first large-sized private infrastructure developer to achieve such recognition.

Shriram Finance: Mubadala Investment Company and Warburg Pincus, two global investment firms based in the UAE are in talks with Shriram Finance to purchase a controlling stake in their subsidiary, Shriram Housing Finance (SHFL). Shriram Finance confirmed on Tuesday that it is seeking to unlock the value in their housing finance arm in order to secure growth capital. When asked if the company was in talks with Mubadala and Warburg, Shriram responded, "We are in discussions to secure growth capital for Shriram Finance. Nothing has been finalized. Discussions are with multiple investors." Reports suggest that the deal could range between Rs 5,300 crore and Rs 6,500 crore.

Adani Wilmar: On Wednesday, it was reported that the company's net profit for Q4FY24 increased by 67 percent YoY, reaching Rs 157 crore from Rs 94 crore in the same period last year. However, the company's revenue from operations fell by 5 percent YoY to Rs 13,238 crore. The company noted strong growth in its sales volume, with significant increases in both the edible oils and foods segments throughout the quarter and the entire fiscal year, which was attributed to an increase in retail penetration.

Indus Towers: The company has reported a 32.5 percent year-on-year increase in net profit, amounting to Rs 1,853.1 crore for the fourth quarter that ended on March 31, 2024. The revenue from operations has increased by 6.5 percent to Rs 7,193.2 crore compared to Rs 6,752.9 crore in the same period of the previous fiscal year. At the operational level, EBITDA has risen by 19 percent to Rs 4,102.6 crore in the fourth quarter of this fiscal year compared to Rs 3,446.6 crore in the corresponding period of the previous fiscal year. The EBITDA margin stood at 57 percent in the reporting quarter compared to 51 percent in the corresponding period of the previous fiscal year.

Wipro: Wipro has signed a multi-million-dollar agreement with Nokia, a leading telecommunications giant, to provide real-time IT support to its global network of employees. As part of the agreement, Wipro's team will develop a cloud-based, AI-powered solution to revamp Nokia's employee service desk. The solution will cater to approximately 86,700 employees working in 130 countries. To ensure personalized assistance is offered to employees at the right time, Wipro's unit, Designit, will conduct user research.

Adani Power: The company has reported a 48 percent decrease in its consolidated net profit, which amounts to Rs 2,737 crore compared to Rs 5,243 crore reported during the corresponding period last year on May 1. However, the company's revenue has surged 29 percent YoY, reaching Rs 13,787 crore for the quarter. Additionally, EBITDA for the same period has more than doubled year-on-year to Rs 5,273 crore.

Dabur India: According to the average estimates of four brokerages, the FMCG company is expected to report a net profit of Rs 320 crore for the quarter ended March 31, 2024. This will be a 9 percent YoY increase over the Rs 293 crore reported in the year-ago period, driven by growth in its domestic business. The revenue from operations is likely to be around Rs 2,826 crore for the January-March quarter, indicating a 5.5 percent YoY growth. The company is scheduled to announce its quarterly earnings on May 2.

Adani Total Gas: The company has reported an impressive 71.6 percent year-on-year increase in net profit, amounting to Rs 168 crore for the fourth quarter ending March 2024. In contrast, the company had earned a net profit of Rs 97.9 crore in the same quarter of the previous year. The company's revenue from operations has increased by 4.7 percent, rising to Rs 1,167 crore from Rs 1,114.8 crore in the corresponding period of the previous fiscal year. At the operational level, EBITDA has increased by 47.6 percent to Rs 299.1 crore in the fourth quarter of this fiscal year, up from Rs 195.2 crore in Q4 of FY23. The EBITDA margin stood at 24.7 percent in the reporting quarter, compared to 17.5 percent in the year-ago period. The board has recommended a dividend of Rs 0.25 per equity share of the face value of Rs 1 for the financial year 2023-24.

Havells India: The company has reported a 24.1 percent year-on-year increase in net profit at Rs 448.9 crore for the fourth quarter that ended on March 31, 2024. The company's revenue from operations has increased by 12.1 percent to Rs 5,434.3 crore compared to Rs 4,850 crore in the same period last year. At the operational level, EBITDA has risen by 20 percent to Rs 636.8 crore in Q4FY24 compared to Rs 531 crore in Q4FY23. The EBITDA margin stood at 11.7 percent in Q4 compared to 10.9 percent in the corresponding period last year. The board has recommended a final dividend of Rs 6 per equity share of Rs 1 each, amounting to 600 percent of the face value, for the financial year 2023-24.

Maruti Suzuki India: The automaker reported a 4.7 percent increase in total sales, reaching 168,089 units in April, compared to 160,529 units sent to dealers in the same period last year. Of the total sales, domestic passenger vehicle sales accounted for 137,952 units, slightly higher than the 137,320 units sold in the same period last year. However, sales of mini segment cars decreased to 11,519 units, compared to 14,110 units sold in April 2023. Similarly, sales of compact cars declined to 56,953 units, down from 74,935 units sold in the same month last year. On the other hand, utility vehicles saw an increase in sales, with 56,553 units sold last month, up from 36,754 units sold earlier. Sales of vans also rose to 12,060 units in April, up from 10,504 units sold a year ago, while the light commercial vehicle Super Carry saw sales of 2,496 units, up from 2,199 units sold in April 2023. The company's exports also increased to 22,160 units, up from 16,971 units sold in the same month last year.

Castrol India: The lubricant manufacturer, Castrol, has reported a 6.8 percent year-on-year increase in its net profit to Rs 216.2 crore for the first quarter of its financial year, which ended on March 31, 2024. This is a significant improvement from the same quarter last year when the company had posted a net profit of Rs 202.5 crore. Castrol's profit before tax (PBT) for the first quarter of 2024 stood at Rs 292 crore, a 1 percent rise from the previous year's first quarter PBT of Rs 288 crore. The company's revenue from operations also increased by 2.4 percent to reach Rs 1,325.2 crore, up from Rs 1,293.9 crore in the same period of the previous fiscal year. Moreover, the revenue for the first quarter of 2024 increased by 5 percent from Rs 1,264 crore in the previous quarter (fourth quarter of 2023).

Tata Motors: The company reported a growth in its total wholesales for last month. The figure rose by 11.5 percent compared to the same period last year, reaching 77,521 units in total. Additionally, the company's total domestic dispatches increased by 12 percent to 76,399 units last month, compared to 68,514 units in April 2023. The sales of passenger vehicles increased by 2 percent to 47,983 units last month, up from 47,107 units in April last year. The company also saw a significant increase in the sales of commercial vehicles, with a jump of 31 percent to 29,538 units last month, compared to 22,492 units in April 2023.