Stocks in Focus on July 10: TCS, PNB to Yes Bank; here are the 5 Newsmakers of the Day
TCS, Sadbhav Engineering, HPL Electric & Power, PNB and Yes Bank stocks are expected to remain newsmakers throughout the intraday trade session today
Domestic shares market closed in the green on Thursday, July 9, 2020, after a day's pause. The barometer S&P BSE Sensex jumped 408.68 points or 1.12% at 36,737.69. The Nifty 50 index climbed 107.70 points or 1.01% at 10,813.45. Banks and metal shares rallied while FMCG shares declined. Indices witnessed a bout of volatility due to expiry of weekly index options on NSE. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday, July 10, 2020. List of such stocks:
Triggers: There are certain events, like Results, IIP, SBI, Ambuja Cement AGM, PM Modi and Lockdown, that can either create positive/negative reactions in the markets. Find them in detail:
Results: SAIL (Q4FY20) (post-market), IRCTC (Q4FY20), GNFC (Q4FY20), Lakshmi Vilas Bank (Q4FY20), Future Consumer (Q4FY20) and Karnataka Bank (Q1FY21) will announce their financial results of the respective quarter’s today.
IIP Data: The government will release the IIP data of April today.
SBI: The country’s largest lender, State Bank of India has reduced its marginal cost-based lending rate (MCLR) by 5-10 bps (0.05% to 0.10%) for shorter tenor loans (i.e., up to three months). The new rates will be effective from July 10, 2020.
AGM Date: AGM of Ambuja Cement is scheduled to be held today. PM Narendra Modi: Prime Minister Narendra Modi will inaugurate Asia’s largest 750 MW Rewa ultra mega solar power plant at Rewa in Madhya Pradesh today.
Lockdown: Patna to be put under complete lockdown from July 10 to 16, 2020.
Post-Market Results: TCS, Sadbhav Engineering and HPL Electric & Power Ltd have reported their financial results after the market hours on Thursday. Find in details:
TCS: India’s biggest IT company TCS on Thursday reported 12.9% quarter-on-quarter decline in consolidated profit to Rs 7,008 crore for the first quarter of the financial year 2020-21, which ended on June 30, 2020. It posted a consolidated profit of Rs 8,049 crore in the last quarter (Q4FY20). Consolidated revenue from operations declined 4.1% to Rs 38,322 crore when compared with Rs 39,946 crore posted in the previous quarter. EBIT stood at Rs 9,048 crore, down 9.7% from Rs 10,025 crore. The EBIT margin contracted to 23.6% in Q1FY21 from 25.1% reported in Q4FY20. Besides, the board recommended a dividend of Rs 5 per share. Total deals won during the quarter stood at $6.9 billion in Q1FY21, against $6.89 billion an average of last four quarters. Margin at 23.6% is lowest after June 2017 (23.4%).
Sadbhav Engineering: The civil engineering construction company, Sadbhav Engineering on Thursday reported a year-on-year consolidated profit of Rs 886.6 crore for the quarter ended on March 31, 2020. It posted a loss of Rs 27 crore in the corresponding quarter last year. Consolidated revenue declined 57.2% to Rs 629.5 crore in the quarter under review when compared to Rs 1,471.9 crore posted in the same quarter last year. EBITDA stood at Rs 180.2 crore, down 24.3% from Rs 238 crore posted last year. Margin improved to 28.6% in Q4FY20 from 16.2% posted in Q4FY19. It had an exceptional gain of Rs 1,501 crore (entire equity holding in 7 of its subsidiaries transferred to Indinfravit Trust).
HPL Electric and Power Ltd: The multi-product electric equipment company on Thursday reported a year-on-year 80% decline in its consolidated profit to Rs 2.5 crore for the quarter ended on March 31, 2020. It posted a profit of Rs 12.5 crore in the quarter ended on March 31, 2019. Consolidated revenue declined 39.8% to Rs 212.2 crore against a consolidated revenue of Rs 352.5 crore posted last year. EBITDA stood at Rs 27.1 crore, down 33.4% from Rs 40.7 crore posted last year. The margin grew to 12.8% in Q4FY20 against 11.5% of Q4FY19. The board recommended a final dividend of Rs 0.15/share.
Punjab National Bank (PNB): State-owned PNB on Thursday said that its board has approved a proposal to raise Rs 10,000 crore through a mix of both equity and debt. It will seek shareholders nod to raise Rs 7,000 crore via equity. Besides, the country’s second-largest lender has declared its Rs 3,688 crore exposure to Dewan Housing Finance (DHFL) as a fraudulent account. It has made a provision of Rs 1,247 crore thus far.
YES Bank FPO: Private sector lender Yes Bank on Thursday said it has filed a red herring prospectus to raise up to Rs 15,000 crore through issuance of fresh equity shares in its further public offering (FPO). The offer will open on July 15, 2020, and close on July 17, 2020. Bidding date for the anchor investors has been fixed on July 114, 2020. The offer size of the FPO is Rs 15,000 crore, by way of a fresh issue of equity shares, including an employee reservation portion of up to Rs 200 crore. LIC, ICICI Prudential, HDFC AMC and HDFC Standard Life Yes can make bids for the bank.
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Adani power/ Tata Power: Gujarat Government has scrapped its earlier decision to revise power purchase agreements (PPA). The state government has reversed its December 2018 resolution through which it allowed these companies to sign supplementary PPA with the state to facilitate pass-through of future fuel price escalation, as per the Supreme Court’s October 2018 ruling that allowed compensatory tariff relief for the firms citing the “change in law”.
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