Stocks in Focus on February 18: Ambuja Cement, Oil & Gas Stocks, Coal India, Tata Power, Hero Motocorp and many more

The benchmark indices ended with small cuts on Thursday, February 17, 2022, amid mixed global cues. Trading was volatile on account of the weekly index expiry on the NSE. The S&P BSE Sensex fell 104.67 points or 0.18% at 57,892.01. The Nifty 50 index slipped 17.60 or 0.10 per cent to 17,304.60. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, February 18, 2022. List of such stocks:

Q3FY22 Results

Ambuja Cement: The cement maker Ambuja Cement on Thursday reported a 49.4% YoY decline in the standalone net profit at Rs 251.7 crore for the quarter ended December 31, 2021, compared to Rs 497 crore posted in the year-ago quarter. The company, which follows the January-December financial year, had reported a 6.3% YoY growth in its revenue from operations at Rs 3,735.1 crore compared to Rs 3,515 crore posted last year. EBITDA stood at Rs 568 crore in the reported quarter, down 26% YoY from Rs 768 crore posted last year. Margin contracted to 15.2% in Q3FY22 against 21.8% posted in Q3FY21. 

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- Power and Fuel cost: 30.2% vs 20% 

- Exceptional loss: Rs 65.7 crore 

Besides, the board of directors of Ambuja Cements has recommended a final dividend of Rs 6.30 per share, subject to the approval of the shareholders at the ensuing annual general meeting. The Board has also approved in principle an investment of Rs 3,500 crore for 7.0 MTPA potential cement grinding expansion across its existing grinding units at Sankrail and Farakka and greenfield grinding unit at Barh, Bihar and 3.2 MTPA Brownfield clinker expansion at its existing integrated plant in Bhatapara, Chattisgarh. In addition, the board has also approved the appointment of SRBC & Co LLP as statutory auditor of the company as Deloitte's term came to an end. Deloitte was appointed in 2017.

Stocks in News

IOC/HPCL/GAIL/ONGC/IEX/Linde India/Confidence Petroleum: Union Ministry of Power has notified Green Hydrogen/Green Ammonia Policy for production of Green Hydrogen or Green Ammonia using renewable sources of energy. It will help the country meet the target of production of 50 lakh tonnes of Green Hydrogen by 2030 and the related development of renewable energy capacity. Manufacturing zones will be created for the production of Green Hydrogen and the Power Ministry will provide free transmission service for the purpose and free access will be provided to companies. 

Green Hydrogen / Ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other, developer, anywhere. Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of Green Hydrogen and Green Ammonia for the projects commissioned before June 30, 2025. The manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on a priority basis to avoid any procedural delays. The government will create a centralized portal for applications. 

Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels. Production of these fuels by using power from renewable energy termed green hydrogen and green ammonia is one of the major requirements towards environmentally sustainable energy security of the nation.

Coal India: Pramod Agarwal, Chairman, Coal India, has said that the company has set a shipment target of 67 crore tonnes in FY22. It has made a provision of Rs 100 crore per month for existing wage revision. Coal India has a push for a hike in coal prices. He added, the expected CapEx for FY23 stands at Rs 17,000 crore. 

Tata Power/L&T/Coal India: Union minister for power and renewable energy RK Singh on Thursday said that government would invite fresh tenders for the setting up of 40,000 MW manufacturing capacity for solar modules and cells under the production-linked incentive (PLI) scheme for the sector. Thirteen companies have already applied for the incentives under the scheme. This update is negative news for these companies as this unexpected move by the ministry could create uncertainty for the 13 companies that had applied for the incentives earlier as they may have to apply again for the purpose. Companies like Tata Power, L&T, Coal India, Adani Infra have already applied for it. 

Hero Motocorp: Naveen Munjal-led Hero Electric has withdrawn its petition seeking an injunction against Hero MotoCorp for using the brand ‘Hero’ for electric vehicles. Delhi High Court has formed an arbitral tribunal to resolve the dispute between Hero MotoCorp and Hero Electric. 

HGS / NXTDIGITAL: The Board of Directors of the Company has approved the Scheme of Arrangement between NXTDIGITAL Limited and Hinduja Global Solutions (HGS) Limited and their respective shareholders. It has also fixed the Entitlement Ratio Fixed for the acquisition of NXTDIGITAL Limited. 20 Equity Shares of Hinduja Global Solutions Limited of Rs 10 each fully paid up will be provided for every 63 Equity Shares of NXTDIGITAL Limited. 

Promoter Action 

Chambal Fertilizer: Promoter has offloaded 0.027% stakes of the company between February 15 and 16, 2022.  
Shakti Pumps: Promoter bought 0.07% stakes of the company between February 15 and 16, 2022.  
Gati Ltd: Promoter has offloaded 0.008% stakes of the company on February 15, 2022.  
India Nippon Electric: Promoter bought 3.93% stakes of the company on February 15, 2022.