Stocks in Focus on April 18: Infosys, HDFC Bank, Tata Power, Textile Stocks, Info Edge and many more

The domestic equity benchmarks reversed early gains and ended with marginal losses on Wednesday, April 13, 2022. Trading was volatile due to the expiry of weekly index options on the NSE. The S&P BSE Sensex declined 237.44 points or 0.41% to 58,338.93. The Nifty 50 index slipped 54.65 points or 0.31% to 17,475.65. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, April 18, 2022. List of such Stocks:

Q43FY22 Results: Infosys + HDFC Bank + ICICI Prudential Life + Alok Industries + Oriental Hotels

Infosys: IT major Infosys has reported a 2.1% QoQ decline in the consolidated profit at Rs 5,686 crore for the fourth quarter ended March 31, 2022 (Q4FY22). It had posted a consolidated profit of Rs 5,809 crore in the previous quarter ended December 31, 2021 (Q3FY22). India's second-largest software firm's revenue from operations grew 1.3% QoQ to Rs 32,276 crore compared to Rs 31,867 crore posted in the December quarter. Revenue in dollar terms grew 0.7% QoQ to $428 crore in the period under consideration against Rs 425 crore posted in the previous quarter. EBIT stood at Rs 6,956 crore, down 7.1% QoQ from Rs 7,484 crore posted in the previous quarter. Margin declined to 21.6% in Q4FY22 as against 23.5% posted in Q3FY22. Besides, the IT major has declared a final dividend of Rs 16 per share. 

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- CC growth: 1.2% (3.5% est) 

- Digital revenue: 59.2% vs 58.5% (QoQ) 

- Declared dividend of 16/share

- Attrition: 27.7% vs 25.5% (QoQ) 

- FY23 CC revenue growth guidance: 13-15% (12-14% est) 

- FY23 operating margin guidance: 21-23% (22-24% est) 

- Q4 Large deals TCV of $2.3 billion  

Management Commentary  

- Differentiated Cloud Services and Large Deal Momentum Drive Infosys’ Highest Annual Growth in a Decade.

- Growth was broad-based, supported by continued momentum in large deal wins.

- See immense potential to engage and partner with clients as they transform, adapt and thrive.

- Company executive says no plans to do business with Russian clients going ahead.

- Have plans to expand in Eastern Europe. 

HDFC Bank: Private lender HDFC Bank on Saturday reported a 22.8% YoY rise in net profit for the March quarter at Rs 10,055.20 crore for the quarter ended March 31, 2022. It had reported a profit of Rs 8,1876.50 crore in the year-ago quarter. The bank's net interest income (NII), the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 10.2% to Rs 18,872.70 crore as compared to Rs 17,120.20 crore posted last year. Net interest margin (NIM) stood at 4% against 4.1% posted in the year-ago quarter. Gross non-performing assets (GNPA) as a percentage of total advances stood at 1.17% compared with 1.26% in the December quarter. The net NPA stood at 0.32% in Q4FY22 against 0.37% posted in Q3FY22. Total provisions fell 20.4% YoY to Rs 3,312.3 crore as against Rs 4,693.7 crore while growing 10.6% QoQ against Rs 2,994 crore posted in the previous quarter. Besides, the private sector lender has received the board of directors' approval for the issuance of debt instruments aggregating to Rs 50,000 crore in the next twelve months. The Board of Directors of the Bank on Saturday approved the re-appointment of Mrs Renu Karnad as Non-Executive Director (Nominee of Housing Development Finance Corporation Limited, promoter of the Bank) on the Board of the Bank, for five years with effect from September 3, 2022, subject to the approval of the shareholders at the ensuing Annual General Meeting. In addition, the Board of Directors of the Bank will meet on April 23, 2022, to consider a proposal for a recommendation of dividend on the equity shares of the Bank for the financial year ended March 31, 2022.

ICICI Prudential Life: ICICI Prudential Life Insurance has reported a nearly three-fold rise YoY in net profit at Rs 186.9 crore for the quarter ended March 31, 2022. It had posted a profit of Rs 62.51 crore posted in the year-ago period, largely on account of a sharp drop in actuarial liability. The company's net premium fell 4.4% YoY to Rs 11,358.9 crore compared to Rs 11,879.3 crore posted last year. The life insurer's value of the new business (VBN), a measure of profitability, fell 22.7% YoY to Rs 457 crore compared to Rs 591 crore posted last year. Annual Premium Equivalent (APE), a measure of new business written by a life insurance company, grew 4% YoY to Rs 2,608 crore compared to Rs 2,509 crore posted last year. VNB Margins for FY22 stood at 28% as compared to 25.1% in the preceding financial year. Its solvency ratio stood at 204.5% compared to 216.8% posted last year. The company’s total assets under management (AUM) rose 12% YoY at the end of March. Besides, the Board of Directors of the life insurer has also recommended a final dividend of Rs 0.55 per equity share.
Alok Industries: The Textile manufacturing company has reported a consolidated loss of Rs 26.8 crore for the quarter ended March 31, 2022, as compared to a loss of Rs 500 crore posted in the corresponding quarter of the previous financial year. Revenue from operations grew 37% YoY to Rs 2,011 crore as compared to Rs 1,467 crore posted last year. EBITDA grew 1.1% YoY to Rs 154 crore as compared to Rs 152.3 crore posted last year. Margin declined to 7.7% in Q4FY22 as compared to 10.4% posted in Q4FY21. 

Oriental Hotels: Oriental Hotels, a part of the Taj Group, on Friday reported a consolidated net profit of Rs 1.4 crore for the quarter ended March 31, 2022. It had posted a consolidated loss of Rs 4.7 crore in the corresponding quarter of the last financial year. Revenue from operations grew 24.5% YoY to Rs 66 crore compared to Rs 53 crore posted last year. EBITDA grew 91.7% YoY to Rs 11.5 crore compared to Rs 6 crore posted last year. Margin improved to 17.4% in Q4FY22 as against 11.3% posted in Q4FY21. 

Stocks in News

Tata Power: The Tata Power Company Ltd. and BlackRock Real Assets-led consortium, including Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renewable Energy Limited. BlackRock Real Assets, together with Mubadala, shall invest Rs 4,000 crore (~US$ 525 million) by way of equity / compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore. The final shareholding will range from 9.76% to 11.43% on final conversion. The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans.

Tata Steel: The Board of Directors of the Company is scheduled to meet on May 3, 2022, to consider and take on record the audited Standalone and unaudited Consolidated financial statements and results for the quarter ended March 31, 2022, and recommend dividend, if any, for the financial year ended March 31, 2022. The board will also consider a proposal for sub-division of the Equity Shares of the Company having a face value of Rs 10/- each.  

 Himatsingka / Trident / Donear / Gokaldas Exports / Monte Carlo / Arvind / SVP Global - Textile PLI: Union Textile Ministry on Thursday approved 61 applications of companies including these names under the production linked incentive (PLI) scheme for textiles with an investment potential of Rs 19,700 crore. Companies have been exempted from producing other items but will not get any incentive for the production of other items.

Textile Stocks: Textile stocks will be in focus today as the government has removed import duty on cotton allowing cotton bales import at zero duty until September 30, 2022.

Coal India: With the objectives of facilitating the utilization of lands that are mined out or are practically unsuitable for coal mining and for increasing investment and job creation in the coal sector, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 [CBA Act]. The policy provides for the utilisation of such land for development and setting up infrastructure relating to coal and energy. Land can be leased to private companies through JV with Coal India.

Lupin: US FDA has approved the Company's Abbreviated New Drug Application (ANDA), Desvenlafaxine Extended-Release Tablets, 25 mg to market a generic equivalent of Pristiq Extended-Release Tablets, 25 mg of PF PRISM C.V. The product will be manufactured at Lupin’s facility in Goa, India. Desvenlafaxine Extended-Release Tablets, 25 mg (RLD Pristiq) had estimated annual sales of USD 14 million in the U.S. (IQVIA MAT December 2021).

Alkem Laboratories: The US FDA conducted an inspection at the Company's Bioequivalence Center located at Taloja, Maharashtra from April 11-14, 2022. At the end of the inspection, no Form 483 was issued. 

Jubilant Ingrevia: The global integrated Life Science products and Innovative Solutions provider has announced a CDMO contract for an estimated value of Rs 270 Crore in the Specialty Chemicals business, spanning over a period of three years with one of its international customers, who are among the top 10 leading innovator pharmaceutical companies globally. 

 Mahindra & Mahindra Ltd: One of India’s leading automotive companies have announced a price hike of 2.5% on its range of vehicles. This will result in an increase of Rs 10,000 to Rs 63,000 on the ex-showroom prices across the range, depending upon the model and the variant. The price hike will be effective from April 14, 2022.

Maruti Suzuki India: Maruti Suzuki India's Chairman R.C. Bhargava has said that the Government's plan to make six airbags mandatory in passenger vehicles will hurt sales of small and low-cost cars. He added that this will make cars more expensive and drive out a chunk of potential buyers. 

PVR: The multiplex chain has announced the opening of 6 screen multiplex in Forum Galleria Mall at Rourkela, Odisha. With this opening, PVR Cinemas marks its debut in Odisha. Besides, KGF 2 has earned Rs 230 crore in two days (Wednesday and Friday).

Info Edge: The Board of Directors of the Company has approved entering into contribution agreements with three schemes of the Alternate Investment Funds (AIFs) to commit contributions of up to Rs.1,300 crore in aggregate. Subsidiary Smartweb Internet Services Ltd. will be sponsoring all these three schemes and investment will be done under Material Related Party Transaction. Two out of three schemes have been approved by SEBI. The company’s strategy is to do external financial investments that are focused on value creation over the medium to long-term. The company will invest Rs 400 crore in Info Edge Venture Fund Follow-on I, Rs 600 crore in Info Edge Venture Investment Fund II, and Rs 300 crore in Capital 2B Fund I. 

Bulk Deals 

Mrs Bectors Foods: GW CROWN PTE Sold 47.13 lakh Shares (Complete 8.01% stake) at 303.26/share. LINUS PRIVATE LIMITED Sold 46.1 lakh Shares (Complete 7.84% Stake) at 305.38/share. SBI MF bought 33 lakh shares (5.6% stake). UNIFI AIF BLEND FUND bought 4 lakh shares. BLEND FUND 2 bought 10 lakh shares.

Hari Om Pipes: Nomura Singapore sold 3.45 lakh shares of the company, while Societe Generale and Elara India have also sold 2 lakh shares and 1.79 lakh shares, respectively. Besides, Spring Ventures and Niraj Rajnikant have bought 2 lakh and 1.43 lakh shares of the company, respectively.

Ramco Cement LIC has bought 2% additional stakes in the company between September 17, 2021, and April 12, 2022. With this, LIC has increased its stakes in Ramco Cement from 4.996% to 7.003%. 

CESC: HDFC Mutual Fund has sold 4.4 lakh shares on April 11, 2022, and reduced its stakes in the company from 7.1% to 7.07%.