Stocks in Focus on October 26: Nestle India, Tech Mahindra, Kotak Mahindra Bank, IndusInd Bank to Vedanta; here are the 5 Newsmakers of the Day

Equity benchmarks on Friday, October 23, 2020, logged modest gains amid positive global cues. The BSE 30-share index, Sensex gained 127 points or 0.31 per cent to settle at 40,686. The NSE Nifty-50 index also rose 34 points or 0.28 per cent to settle at 11,930. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Monday, October 26, 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: Kotak Mahindra Bank (12 pm-3:30 pm) , SBI Life (12 pm – 3 pm)   
F&O: Torrent Pharma (post-market), M&M Financial (post-market)  

Post Market Results: Some companies, like Nestle India, Tech Mahindra to JSW Steel, posted their September quarter results after the markets were closed for trading purposes on Friday. These stocks are likely to be in action today when the market will open for trading purposes. Details: 

Nestle India: Nestle India on Friday reported a 1.37% year-on-year fall in the net profit at Rs 587 crore for the third quarter ended September 30, 2020. Analysts at Zee Business forecasted the figure at Rs 590 crore. The food maker had posted a profit of Rs 595 crore in the corresponding quarter last year. The company’s revenue increased 10% YoY to Rs 3,542 crore as against Rs 3,215 crore posted last year. EBITDA stood at Rs 883.5 crore, up 16% from Rs 766 crore posted last year. The margin increased to 25% in Q3CY20 as against 23.8% posted in Q3FY19. The company follows a January-December financial year. Besides, the Maggie-maker had declared an interim dividend of Rs 135 per share. In a regulatory filing, Nestle has said that it has plans to invest Rs 2,600 crore more in over the next three to four years to augment its existing manufacturing capacities. Key brands, like Maggi noodles, Maggi sauces, Kit Kat, Munch, Nescafe Classic and Nescafe Sunrise, witnessed double-digit growth. The company’s export sales increased by 9.4% and eCommerce grew by 97%, contributing about 4% of domestic sales. 

Tech Mahindra: The information technology company Tech Mahindra has reported a 9.6% quarter-on=-quarter rise in the consolidated profit of Rs 1,064.6 crore for the quarter ended September 30, 2020. Analysts at Zee Business estimated the profit at Rs 980 crore. The company had posted a net profit of Rs 972.3 crore in the previous quarter ended June 30, 2020. Revenue from operations grew by 2.9% to Rs 9,371.8 crore in Q2FY21 against Rs 9,106 crore posted in Q1FY21. $ Revenue grew by 4.7% to Rs 126.54 crore against Rs 120 crore posted in the previous quarter. EBIT grew 45.6% in the quarter at Rs 1,331.3 crore in the July-September quarter against Rs 917 crore posted in the April-June quarter. EBIT margin increased to 14.2% in Q2FY21 against 10.1% posted in Q1Fy21. The company has declared a special dividend of Rs 15 per share. Besides, the IT company on Friday said it will acquire a complete stake in New Zealand-based Tenzing Group and Australian IT firm Momenton for a cumulative amount of around $ 2.9 crore.

JSW Steel: JSW Steel has posted a 37% year-on-year drop in consolidated profit at Rs 1,595 crore for the quarter ended September 30, 2020. It had posted a net profit of Rs 2,536 crore in the corresponding quarter last year. Revenue from operations grew 13% to Rs 19,264 crore against Rs 17,106 crore posted last year in the same period. EBITDA grew 62% to Rs 4,414 crore against Rs 2,731 crore posted last year. The margin grew to 22.9% in Q2FY21 against 13.24% posted in Q2FY20. Q2FY20 had tax credit of 1976 crore. 

Kotak Mahindra Bank/IndusInd Bank: There are reports related to Kotak Mahindra Bank is exploring the options to takeover IndusInd Bank. However, both the banks have provided their clarification on the report. The promoter of IndusInd Bank has denied the report and termed it as rumours and considers it as malicious, untrue and baseless. Promoter has said that they have full confidence in the growth of the bank. However, Kotak Bank has offered no comment on the development.  

Vedanta Limited (VEDL): Vedanta Board has approved an interim dividend of Rs 9.5 per share. The record date of the pay-out has been set as October 31, 2020.

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Laurus Labs/Granules/IOL Chemicals: Government has plans to remove the ban on selling of APIs in the domestic market, Zee Business sources. Under the plan, the companies will be able to export APIs under an incentive scheme. Production norms for the raw materials of 10 drugs are likely to be relaxed, including relaxation in the condition of minimum production capacity. Note for approval of the proposal is being drafted at present.