Stocks in Focus on May 6: Adani Ports, OMCs to Banks; here are expected Newsmakers of the Day
Stocks in Focus on May 6: Adani Port, NIIT Technologies, Astec Life, Tata Coffee, Rallis India, OMC and banking stocks are expected to remain newswmakers throughout the intraday trade session.
Stocks in Focus on May 6: The market extended its losing run for the second day, led by weakness in banks and FMCG shares. The barometer S&P BSE Sensex tumbled 261.84 points or 0.83% at 31,453.51 on Tuesday, May 5, 2020. The Nifty 50 index lost 87.90 points or 0.95% at 9,205.60. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, May 6, 2020. List of such five stocks:
Adani Port, NIIT Technologies, Astec Life, Tata Coffee, Rallis India: These companies have declared their March quarter results on May 5, 2020, after the market hours.
Adani Ports: Adani Ports and SEZ Ltd on Tuesday announced its fourth-quarter earnings and posted 74% year-on-year (YoY) fall in consolidated net profit at Rs 334 crore. The number stood at Rs 1,282 crore in the corresponding quarter last year. Revenue declined 5% YoY to Rs 2,921 crore from Rs 3,082 crore. EBITDA fell 62% to Rs 735 crore against Rs 1,932 crore while margins stood at 25.16% against 62.7% recorded in March quarter of last fiscal.
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NIIT Technologies: The IT company on Tuesday reported 7% quarter-on-quarter (QoQ) fall in consolidated profit at Rs 114 crore against Rs 123 crore reported in December quarter. Its revenue grew 3.25% QoQ to Rs 1,109 crore against Rs 1,073 crore in the previous quarter. EBIT grew 3% to Rs 154 crore against Rs 149 crore reported in the previous quarter. The company's board declared a third interim dividend of Rs 11 per share and the record date for the same has been fixed for May 15, 2020. Board of Directors also approved the change of name of the Company from ‘NIIT Technologies Limited’ to ‘Coforge Limited’ subject to regulatory clearances.
Astec Lifesciences: The company has reported a 131% YoY increase in net profit at Rs 31 crore against Rs 13 crore reported in the corresponding quarter last year. Its revenue grew 35% to Rs 181 crore YoY against Rs 134 crore and EBITDA went up by 87% to Rs 43 crore against Rs 23 crore. The margin was up to 23.7% from 17.1%. Board has recommended a final dividend of 15% on the equity share capital of the company i.e Rs 1.50 per equity share of the Face value of Rs 10.
Tata Coffee: The company has reported its March quarter FY20 numbers on Tuesday and posted a 33% YoY jump in profit to Rs 24 crore from Rs 18 crore reported on the corresponding quarter last year. Total revenue was 12% up to Rs 517 crore against Rs 461 crore posted in March quarter FY19. EBITDA grew 23.3% to Rs 77 crore from Rs 64 crore.
Rallis India: Reported 49.6% YoY fall in net profit at Rs 0.68 crore against Rs 1.35 crore reported in the corresponding quarter last year. Its revenue was up by 1.9% to Rs 346.29 crore from Rs 339.69 crore posted last year. Besides, The Board of Directors of Rallis India Ltd has recommended a dividend of Rs. 2.5 per share for the Financial Year 2019-20.
OMCs in focus: To mobilise revenue collections at a time when the global oil prices are extremely low, the government on Tuesday raised the excise duty on petrol by a steep Rs 10 per litre and on diesel by Rs 13 petrol litre. According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. Retail prices of petrol and diesel will not be impacted by the tax changes as state-owned oil firms will adjust them against the recent fall in oil prices.
JB Chemical: 4 PE funds, namely KKR, Carlile, APEX Partners and PAG, are vying to buy the promoters stakes of JB Chemicals & Pharmaceuticals Ltd in a deal valuing Rs 5,000 crore.
ITC/Axis: The government has plans to raise around Rs 22,000 crore from stake sale in ITC and Axis. It is hoping to complete the transactions of both companies by next week. The transaction will be done through a bulk deal on the Indian bourses. The government held stakes through Specified Undertaking of the Unit Trust of India (SUUTI), which owns 7.94 per cent in ITC and 4.69 per cent in Axis Bank, as on March 31, 2020.
Banks in focus: To push the credit growth, the banks have parked Rs 8.42 lakh crore under the Reserve Bank of India’s (RBI) reverse repo window. The incremental credit flow during FY20 has declined by 64%.
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