Stocks in Focus on June 17: HPCL, Pharma Stocks to Banks/NBFCs; here are the 5 Newsmakers of the Day

Domestic shares advanced on Tuesday, June 16, 2020, amid high volatility as strong global cues boosted sentiment, while India-China faceoff in Ladakh capped gains. Barometer BSE Sensex gained 376.42 points or 1.13% at 33,605.22. The Nifty 50 index rose 100.30 points or 1.02% at 9.914. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, June 17, 2020. List of such five stocks:

HPCL/ NMDC/ Bank of Maharashtra./ Navin Fluorine/ Globus Spirit: They are the companies that reported their financial results of the fourth quarter of the financial year 2019-20 (FY20) after the market hours on Tuesday, June 16, 2020. Find details:

Hindustan Petroleum Corporation (HPCL): State-run oil marketing company HPCL announced its financial results for the quarter ended March 31, 2020, and reported a 96.4% quarter-on-quarter decline in net profit at Rs 26.8 crore. It posted a profit of Rs 747.2 crore in the December quarter of FY20. Net Sales declined 6.5% QoQ to Rs 66,154.9 crore against Rs 70,749.6 crore posted in the previous quarter. It reported a loss of Rs 706.6 crore in EBITDA against the gains of Rs 1,866.9 crore.
 
NMDC Ltd: NMDC on Tuesday posted the financial results of the quarter ended on March 31, 2020, and reported a net profit of Rs 352 crore on a year-on-year basis. It reported a net profit of Rs 1,454 crore in the corresponding quarter last year. Its revenue from operations stood at Rs 3,187 crore, drop of 12% from Rs 3,643 crore of last year. Margin contracted to 15% from 57%.
 
Bank of Maharashtra: State-owned Bank of Maharashtra on Tuesday posted a 19.4% year-on-year decline in net profit at Rs 58 crore in the fourth quarter ended on March 31, 2020. Its profit stood at Rs 72 crores in the corresponding quarter of the previous financial year. Net interest income (NII) grew 2.2% to Rs 1,022 crore against Rs 1,000 crore posted last year. The gross non-performing assets (GNPAs) of the bank came down to 12.81% in Q4FY20 from 16.77% in Q3FY20. Net NPA came down to 4.77% from 5.46% in the December quarter.
 
Navin Fluorine International: The company’s consolidated profit in Q4FY20 rose 694.1% year-on-year to Rs 270 crore against the profit of Rs 34 crore posted in the Q4FY19. Sales grew by 9.5% to Rs 276.5 crore against Rs 252.5 crore posted last year. EBITDA stood at Rs 68.6 crore, up 33.2% from Rs 51.5 crore of Q4FY19. However, margin contracted to 15% against 20.3%.
 
Globus Spirit: The company on Tuesday announced its financial results of the quarter ended on March 31, 2020, and reported a 280% year-on-year rise in consolidated profit at Rs 19 crore. It posted a profit of Rs 5 crore in the corresponding quarter of last fiscal. Sales grew by 2.2% to Rs 296.6 crore when compared to Rs 290.2 crore posted a year ago in the same quarter. Margin contracted to 15% against a margin of 57.4% of last year.  

HDFC Asset Management Company (AMC): Standard Life Investments is looking to sell 2.82% equity, around 60 lakhs shares, of the mutual fund through an offer for sale on June 17-18, 2020. The sale price of the OFS shares has been fixed at Rs 2,362 apiece, a 7% discount to Tuesday’s closing price of Rs 2538. The OFS will open for non-retail investors today and for retail investors tomorrow. Standard Life Investment is one of the promoters of HDFC AMC. 

Pharma Stocks (Cadila/ Ipca & Cadila/ Lupin/Wockhardt): Stocks like Cadila and IPCA will be in focus today as India will continue to use hydroxychloroquine (HCQ) for treating coronavirus, COVID-19, patients despite the US government has revoked emergency use of hydroxychloroquine (HCQ). Besides, stocks of Cadila, Lupin & Wockhardt will be in focus today as the University of Oxford on Tuesday said that the use of the cheap and easily available anti-inflammatory steroid dexamethasone saves the lives of people seriously afflicted by a coronavirus. The drug cuts the death risk by a third for those on ventilators, and by a fifth for those on oxygen.

Preferential allotment norms: The market regulator, Securities and Exchange Board of India (SEBI), on Tuesday relaxed the pricing norms for preferential allotment and eased the voting rules. The regulator has tweaked the takeover code for the year 2020-21 and allowed promoters to acquire up to 10% stakes through preferential allotment. Currently, promoters can acquire only up to 5% of the preferential issue.

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Banks and NBFCs: Banking and financial services will be in focus today as the full interest waiver petition during the loan moratorium period is scheduled to be heard at the Supreme Court today.