Stocks in Focus on July 28: Tech Mahindra, United Spirits to Indigo; here are expected newsmakers of the day
Stocks in Focus on July 28: Tech Mahindra, United Spirits, Indigo, Bharti Infratel, Pfizer, etc. are expected newsmakers throughout the intraday trade session.
Stocks in Focus on July 28: Key benchmarks ended lower on Monday, July 27, 2020, amid mixed global cues. The barometer index, the S&P BSE Sensex dropped 194.17 points or 0.51% at 37,934.73. The Nifty 50 index fell 62.35 points or 0.56% at 11,131.80. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, July 28, 2020. List of such five stocks:
Triggers: There are certain events, like results today, US Fed, M&M Financial Services, Spencers Retail, Mindspace REIT IPO, Ex-dividend, AGM, which can create positive/negative reactions in the markets. Find them in detail:
Results to be declared today: Ultratech Cement, Nestle India, Indusind Bank, RBL Bank, IDFC First Bank, NIIT Tech, Castrol India, Hexaware, IDBI Bank and Yes Bank.
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US Federal Reserve: US Fed’s two-day meeting will begin today and conclude on Wednesday.
M&M Financial Services: The Rs 3,088 crore rights issue of M&M Financial Services will open today, July 28, 2020, and will run till August 8, 2020. The company had set the rights issue price at Rs 50, which was at a steep 76 per cent discount to the prevailing level. Investors will be able to apply for one rights share on every share. The stock went ex-rights on Thursday.
Spencer's Retail: Today is the record date for Rs 80 crore rights issue of Spencer’s Retail. The rights issue will open on August 4, 2020, and close on August 8, 2020. It has set rights issue price at Rs 75 per share and the shareholders will get 2 rights shares for every 15 shares held as on the record day.
Mindspace Business Parks REIT IPO Update: The initial public offering (IPO) by Mindspace Business Parks REIT IPO received 37% bids on the first day of the bidding process on Monday. The portion set aside for qualified institutional buyers (QIB) has seen subscription of 37%, while the portion set for non-institutional investors 40%. Today is the second day of the IPO. The price band of the issue is fixed at Rs 274-275 per unit. The IPO will remain open until July 29, 2020. Investors can make for a minimum of 200 units and in multiples of 200 units. At the upper end of the price band, investors need to invest a minimum of Rs 55,000 in the issue. AGM: Annual General Meeting of L&T Finance Holdings Ltd, Tech Mahindra Ltd, Graphite India Ltd and IRB Infra is scheduled to be held today.
Ex-Dividend: Mahindra EPC, Granules India, Hatsun Agro, Rane Brake, Solara Active and Seshasayee Pape and will turn ex-dividend today. The ex-dividend date for stocks is usually set one business day before the record date.
Results: These companies, namely Tech Mahindra, Bharti Infratel, United Spirits, BEL, Nippon Life, Pfizer, Midhani, have reported their financial results after the market hours on Friday. Find in details:
Tech Mahindra: Tech Mahindra on Monday reported a flat 20% quarter-on-quarter (QoQ) rise in consolidated profit at Rs 972 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 804 crore in the previous quarter that ended on March 31, 2020. Consolidated revenue declined 4 per cent to Rs 9,106 crore in Q1FY21 from Rs 9,490 crore posted in Q4FY20. $Revenue declined 6.7% to $120.8 crore from $129.5 crore. EBIT stood at Rs 817 crore, down 3.4% compared to Rs 949.6 crore posted in last quarter. EBIT margin grew slightly to 10.1% in Q1FY21 over 10% posted in Q4Fy20.
Bharti Infratel: The telecom tower company, Bharti Infratel Ltd on Monday reported an 8% quarter-on-quarter rise in consolidated profit to Rs 704 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 649 crore in the quarter ended on March 31, 2020. Consolidated revenue from operations declined 3.3% QoQ to Rs 3,505 crore from Rs 3,624 crore posted in the previous quarter. EBITDA stood at Rs 1,807 crore, up 5% from Rs 1,721 crore posted in last quarter. The EBITDA margin grew to 52% in Q1FY21 from 47.5% posted in Q4FY20. Besides, the board has declared an interim dividend of Rs 2.30 per equity share of Rs 10 each for the financial year 2020-21. CEO Devender Singh Rawat’s resignation was accepted by the board.
United Spirits: India’s largest liquor manufacturer on Monday posted a year-on-year (YoY) loss of Rs 215 crore for the quarter ended on June 30, 2020. It posted a net profit of Rs 199 crore in the corresponding quarter last year. Revenue from operations declined 54% to Rs 1,030 crore compared to Rs 2,218 crore posted last year. EBITDA loss stood at Rs 78 crore in Q1FY21 from a profit of Rs 395 crore posted in Q1FY20.
Bharat Electronics Limited (BEL): Navratna Defence PSU BEL on Monday reported a 74% year-on-year decline in profit at Rs 54.13 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 205 crore in the corresponding quarter last year. Revenue from operations declined 20.5% to Rs 1,670 crore in Q1FY21 from Rs 2,101 crore posted in Q1FY20. EBITDA stood at Rs 147 crore, down 58% from Rs 348 crore posted last year in the same quarter. The margins contracted to 9% in this quarter as compared to 17% posted in the same quarter last year.
Nippon Life: Nippon Life India Asset Management (NAM India), the asset manager of Nippon India Mutual Fund (NIMF), on Monday reported a 24% year-on-year rise in profit at Rs 156 crore for the quarter ended on June 30, 2020. The company had posted a profit after tax of Rs 125.6 crore in the year-ago period. Revenue from operations declined 28% to Rs 233 crore from Rs 325 crore posted last year. EBITDA stood at Rs 109 crore, down 29% compared to Rs 154 crore posted in the April-June period of the preceding fiscal. The margin remained almost flat to 47% in Q1FY21 as compared to 47.3% posted in Q1FY20.
Pfizer: The drug firm on Monday reported a 10% year-on-year rise in profit at Rs 124.5 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 112 crore in the corresponding quarter last year. Revenue from operations declined 5% to Rs 515 crore from Rs 544 crore posted in the same quarter last year. EBITDA stood at Rs 186 crore, up 12% from Rs 166 crore posted last year. The margin grew to 36% in Q1FY21 from 30.5% posted in Q1FY20.
MIDHANI: Mishra Dhatu Nigam (MIDHANI) on Monday reported a 50% year-on-year decline in profits at Rs 40 crore for the quarter ended on March 31, 2020. It posted a profit of Rs 80 crore in the same quarter ended last year. Revenue from operations declined 39% to Rs 204 crore from Rs 336 crore posted last year. EBITDA stood at Rs 50 crore, down 55% from Rs 111 crore. The EBITDA margin contracted to 24% in Q4FY20 from 33% posted in Q4FY19.
Infoedge: Food ordering and delivery platform Swiggy on Monday said it is laying off 350 employees as part of the realignment exercise it started in May on account of the impact of COVID-19 pandemic. It said it will provide a minimum of three months to eight months of salary based on tenure and accelerated vesting of ESOPs, an extension of the accident and term insurance for impacted employees and health insurance for them and their families till December 2020. Earlier in May, Swiggy had laid off 1,100 employees across grades and functions in cities.
Indigo: Indigo on Monday said that it is implementing deeper pay cuts of up to 35% for its senior employees to reduce its cash outflow amid the coronavirus pandemic. CEO Ronojoy Dutta has taken a 35% trim in his salary. The cut for pilots is 28%, for Vice Presidents 25% and 15% for associate vice presidents.
Sequent Scientific: Agnus Holding has increased its stake in the company from 30% to 32.2%. Additional shares were purchased from the promoter.
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