Stocks in Focus on May 26: HDFC Ltd, Kotak Mahindra Bank to Eicher Motors; here are the 5 Newsmakers of the Day

Key domestic benchmarks corrected on Friday, May 22, 2020, snapping their three-day rising streak. Weak global cues and rising COVID-19 cases in Indian triggered selling. The barometer S&P BSE Sensex fell 260.31 points or 0.84% at 30,672.59. The Nifty 50 index lost 67 points or 0.74% at 9,039.25. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, May 26, 2020. List of such five stocks:

HDFC/ DMart/ UPL/ JSW Steel/ Bata/ Bayercrop/ Just Dial: The financial results of these companies were announced after market hours on May 22, 2020.

HDFC Ltd: HDFC on Monday reported a 21% year-on-year (YoY) fall in standalone profit at Rs 2,232 crore for the March quarter FY20. The mortgage lender had reported a profit of Rs 2,861 crore in the corresponding quarter of last year. Net interest income (NII) for the quarter rose 14% to Rs 3,564 crore compared with Rs 3,139 crore in the year-ago quarter. The gross NPA as of March 31, 2020, stood at 1.99% quarter-on-quarter (QoQ) from 1.4% reported in the December quarter. Profit fell as dividend income received during the quarter was a mere Rs 2 crore compared with Rs 537 crore in the same quarter last year. The HDFC board announced a dividend of Rs 21 per share for FY20.

Avenue Supermarts (DMart): Avenue Supermarts, which owns and operates supermarket chain D-Mart, said its net profit for the March quarter FY20 rose 41% to Rs 287 crore. The company had reported a net profit of Rs 203 in the same quarter a year ago. Revenue from operations grew 23% TO Rs 6,194 crore from Rs 5,033 crore. The company’s EBITDA was Rs 405 crore, up 11%, from Rs 364 crores. The margin was 6.5% as compared to 7.23%.
 
UPL: UPL Limited on Friday posted 161% year-on-year (YoY) rise in consolidated net profit at Rs 761 crore for the quarter ended March 31. It had posted a net profit of Rs 291 crore in the corresponding quarter last year. Its total revenue from operations grew 31% to Rs 11,141 crore against Rs 8,524 crore posted in the same quarter last year. EBITDA stood at Rs 2,169 crore, up 53.8%, from Rs 1,410 crore, while margin was 19% against 16.5%. The board recommended a dividend of Rs 6 per share.

JSW Steel: The steelmaker JSW Steel on Friday reported an 87.5% year-on-year (YoY) decline in net profit at Rs 188 crore in March quarter FY20. The company reported a net profit of Rs 1,495 crore in the same quarter last year. Gross revenue for the quarter fell to Rs 17,887 crore, down 20%, from Rs 22,368 crore in the year-ago quarter. EBITDA stood at Rs 2,975 crore, down 33%, from Rs 4,440 crore posted last year in the same quarter. Margins declined to Rs 16.6% from 19.9%. Board has recommended a dividend at Rs 2 per share.
 
Bata India Ltd: Bata India on Monday reported 57% year-on-year (YoY) decline in standalone profit at Rs 38 crore in the March quarter FY20. It reported a net profit of Rs 88 crore in the same quarter last year. Revenue from operations declined 8.8% to Rs 620 crore from Rs 679 crore posted last year. EBITDA stood at Rs 139 crore, up 47%, against Rs 94.5 crore posted last year and is not comparable due to IND-AS 116. Margin improved to 22% against 14% reported last year. Management says that decline due to lockdown in March as it grew 8% in January and February. 

Bayer CropScience Ltd: Bayer CropScience on Friday reported a net profit of Rs 31.5 crore in the March quarter of 2019-20 fiscal on strong revenue. The company had posted a net loss of Rs 57 crore in the January-March quarter of the last fiscal. Revenue from operations rose 81% to Rs 458.7 crore during the quarter under review from Rs 252 crore in the same quarter a year ago.
 
Just Dial: Just Dial on Monday reported a 21% year-on-year jump in net profit in the March quarter of FY20 at Rs 76 crore. The company reported a net profit of Rs 62.6 crore in the same quarter last year. Revenue from operations stood at Rs 235 crore, up 1.1%, from Rs 232 crore posted last year. EBITDA grew 26.4% to Rs 74.37 crore as compared to Rs 59 crore reported last year, while the margin was 32% against 25% of last year. 

Liquor Stocks in Focus: Brihanmumbai Municipal Corporation (BMC) on Friday allowed the online sale and home delivery of liquor in sealed bottles in Mumbai from Saturday, but with certain riders. However, the service – to be allowed from 10 am to 6 pm – will not be allowed in containment zones.

Kotak Mahindra Bank The private lender on Monday said that it has got the consent of its shareholders for raising of capital as much as Rs 7,500 crore through the issuance of equity shares through a private placement, follow-on public offering (FPO), qualified institutions placement (QIP) or a combination thereof. On April 22, the board of Kotak Mahindra Bank had approved the proposal to issue 6.5 crore equity shares of Rs 5 each as part of its plans to raise fund. In a separate development, Kotak Mahindra Bank has cut the interest rates for savings bank accounts. As per the bank, interest rates on savings account for balance up to Rs 1 lakh has been reduced by 25 bps to 3.5 per cent from 3.75 per cent earlier. For balance above Rs 1 lakh, the interest rate has been slashed by 50 bps to 4 per cent from 4.5 per cent earlier.

SeQuent Scientific: CA Harbor Investments has brought an open offer for the acquisition of up to 6.45 crore fully paid up shares, representing 26% stakes, of SeQuent Scientific Limited. It will acquire the stakes at Rs 86 per share. Tendering Period of the open offer will remain open from July 1 to July 14, 2020 (both days inclusive).

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Eicher Motors: To consider a stock split and fourth-quarter results on June 12.