Stocks in Focus on October 23: Ambuja Cement, Biocon, L&T Finance Holdings, Housing Finance Companies to Bharti Airtel; here are the 5 Newsmakers of the Day

Key equity indices ended with modest losses after a volatile session on Thursday, October 22, 2020. The S&P BSE Sensex fell 148.82 points or 0.37% at 40,558.49. The Nifty 50 index lost 41.20 points or 0.35% to 11,896.45. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday, October 23, 2020. List of such five stocks:

Triggers: Certain events, like Result and Hemisphere Properties, can create positive/negative reactions in the share market when it opens today. Find them in detail:

Results: Nifty: JSW Steel (2 pm-3:30 pm), Nestle India (post-market), Tech Mahindra (post-market)   

Post Market Results: Some companies, like Ambuja Cement, Biocon and L&T Finance, posted their September quarter results on Monday after the markets were closed for trading purposes. These stocks are likely to be in action today when the market will open for trading purposes. Details: 

Ambuja Cement: The cement maker, Ambuja Cement on Thursday reported an 87.7% year-on-year rise in the standalone profit of Rs 440.5 crore for the quarter ended September 30, 2020, as against Rs 234.6 crore posted in the same quarter last year. Sales grew 8.6% to Rs 2,852 crore in the September quarter as compared to Rs 2,2,625.7 crore posted in the same quarter last year. EBITDA stood at Rs 679.6 crore, up 54% against Rs 440 crore. The margin grew to 23.8% in Q3CY20 against 16.7% posted in Q3FY19. The company follows a January-December financial year. The company registered a volume growth of 8 per cent. Operating profit increased due to reduced operating expenses. Margins and profits were supported by growth in volumes and the company was benefiting from an increase in demand in the rural areas. Besides, the company has also declared an interim dividend of Rs 17 per share of Rs 2 each. The dividend shall be paid on and from November 19, 2020. 

Biocon: The biopharmaceutical company Biocon on Thursday reported a 22.6% drop (year-on-year) in consolidated profit to Rs 174.3 crore for the quarter ended September 30, 2020. It had posted a consolidated net profit of Rs 225.1 crore in the same quarter last year. Revenue from operations grew 11.3% to Rs 1,744 crore in the second quarter of this fiscal as compared to Rs 1,567.3 crore posted in the same quarter of the last fiscal. EBITDA stood at Rs 391.4 crore, down 2.8% from Rs 403 crore posted in the same quarter last year. The margin dropped to 22.4% in Q2FY21 against 25.7% posted in Q2FY20. Besides, it also reported 11% growth in Biosimilars, 12% in Research Services and 8% in Generics. Profitability impacted due to higher R&D expenses (up 42%YoY), staff costs, other expenses (down 60%) and forex losses.  

L&T Finance Holdings: L&T Finance Holdings on Thursday reported a rise of 52.3% in consolidated adjusted profit at Rs 247.7 crore for the quarter ended September 30, 2020. It posted a net profit of Rs 174 crore in the same quarter last year. Rs 473 crore of deferred tax-adjusted from last year base. Its net profit for the September quarter this fiscal dropped 61% to Rs 247.7 crore against a net profit of Rs 647.89 crore posted in the same quarter last year. Net interest income (NII) dropped 3.7% to Rs 1,312 crore in the second quarter of this fiscal against Rs 1,363 crore posted in the second quarter of last fiscal. Net Interest margin on quarter-on-quarter basis grew to 5.25% in Q2FY21 against 5.01% posted in Q1FY21. Besides, the company has said it witnessed an excellent revival in the rural and renewable sector and it gained market share to become the number one farm equipment financier during the quarter. Besides, Tushar Patankar has been appointed as the Chief Risk Officer of the Company for a tenor of two years with immediate effect.

Equitas Small Finance Bank IPO Update: The Rs 518 crore initial public offer (IPO) of Equitas Small Finance Bank (SFB) was subscribed 1.95 times on the last day of the bidding process. The quota reserved for the qualified institutional buyer (QIB) was subscribed 3.91 times. The quota set aside for retail investors was subscribed 2.08 times, while the employee quota was subscribed 1.84 times. The price band for the issue is fixed at Rs 32-33 per share. The public offering comprises fresh issue of 8.5 crore shares worth Rs 280 crore and offers for sale of 7.2 crore shares by Equitas Holdings Limited. 

Housing finance companies in focus: RBI has revises regulatory norms for housing finance firms that seek to maintain a strong capital base and liquidity at the companies. It issues rules on the minimum regulatory requirement of LTV, 'Total asset and NOF (Net-Owned fund)'. They will have to maintain at least Rs 20 crore as NOF, the requirement for a company to commence a housing finance business. Companies have been provided time till March 31, 2024. 

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Bharti Airtel: Markets regulator Sebi on October 22, 2020, disposed of proceedings against four entities including Bharti Telecom Ltd and Sunil Bharti Mittal, in a matter related to an alleged violation of insider trading norms while dealing in Bharti Airtel's scrip. The order follows an investigation conducted by Sebi in respect of trading of certain entities in the scrip of Bharti Airtel Ltd to ascertain an alleged violation of the Prohibition of Insider Trading (PIT) norms. During the period of investigation, Sunil Bharti Mittal was chairman of Bharti Airtel, Gopal Vittal was its director, Rohit Krishan Pal was the compliance officer and Bharti Telecom was the promoter. On October 2017, Bharti Airtel in a regulatory filing announced the proposed acquisition of the consumer mobile business of Tata Teleservices Ltd and Tata Teleservices Maharashtra Ltd.