Stocks in Focus on February 3: Tata Consumer, ZEEL, Tyre Stocks, PNB, Tata Steel and many more

Domestic equity indices ended with robust gains on Wednesday, February 2, 2022, rising for the third straight session. The barometer index, the S&P BSE Sensex rose 695.76 points or 1.18% to 59,558.33. The Nifty 50 index advanced 203.15 points or 1.16% to settle at 17,780.00. Both the indices rose about 4% in three straight sessions. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Thursday, February 3, 2022. List of such stocks:

Q3FY22 Earnings

Tata Consumer Products: The fast-moving consumer goods company (FMCG) on Wednesday reported a 22.2% YoY rise in the consolidated profit at Rs 290 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 237.4 crore in the corresponding quarter last year. Revenue from operation grew 4.5% YoY to Rs 3,208.4 crore in the reported quarter against Rs 3,069.6 crore posted last year. EBITDA stood at Rs 461.7 crore, up 27.8% against Rs 361.3 crore reported the last tear. Margins improved to 14.4% in Q3FY22 against 11.8% posted in Q3FY21. 

Segment-wise performance

- India Beverages: Revenue grew 1% YoY to Rs 1,277.7 crore in December 2021 quarter against Rs 1,264.8 crore posted in December 2020 quarter. EBIT stood at Rs 220.3 crore, up 185% from Rs 77.2 crore. Margins improved to 17.24% in Q3FY22 from 6.1% posted in Q3FY21. The segment has reported volume growth of 6%. 

See Zee Business Live TV Streaming Below:

- India Food: Revenue grew 16.1% YoY to Rs 732.4 crore in December 2021 quarter against Rs 630.6 crore posted in December 2020 quarter. EBIT stood at Rs 42.6 crore, down 54.4% from Rs 93.2 crore. Margins contracted to 5.8% in Q3FY22 from 14.8% posted in Q3FY21. The segment has reported volume growth of 4%. 

- International business: Revenue declined 4.3% YoY to Rs 896.6 crore in December 2021 quarter against Rs 936.8 crore posted in December 2020 quarter. EBIT stood at Rs 144.2 crore, up 15.6% from Rs 124.7 crore. Margins grew to 16.1% in Q3FY22 from 13.3% posted in Q3FY21. The segment has reported volume degrowth of 7%. 

Zee Entertainment: Zee Entertainment Enterprise Ltd (ZEEL) on Wednesday reported a 10.7% QoQ rise in the consolidated profit at Rs 2,112 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 270 crore in the previous quarter ended September 30, 2021. The company's revenue from operations grew 6.7% QoQ to Rs 2,112 crore against Rs 1,979 crore posted in the previous quarter. EBITDA stood at Rs 473 crore in December 2021 quarter, up 17.1% against Rs 404 crore posted in September 2021 quarter. Margin improved to 22.4% in Q3FY22 against 20.4% posted in Q2FY22.  

- 9MFY22 period, on a relative YoY comparison ad revenue has gone up by 25%. 

- Revenue for Zee5 has shot up by almost 12% sequentially to Rs 145.9 crore in Q3FY22. 

- For Zee5, the MAUs have been phenomenal YoY wise seeing a rise of almost 36 million additions. 

Apollo Tyres: Gurugram-based tyre manufacturer Apollo Tyres has reported a 49.5% YoY decline in consolidated net profit at Rs 224 crore for the quarter ended Dec 31, 2021. It had posted a profit of Rs 444 crore in the corresponding quarter last year. Revenue from operations grew 10.7% YoY to Rs 5.707 crore against Rs 5,154 crore posted last year. EBITDA stood at Rs 742 crore, down 25% YoY from Rs 989 crore posted last year. Margin dropped to 13.0% in Q3FY22 from 19.2% posted in Q3FY21. 

M&M Finance: Mumbai-headquartered Indian rural non-banking financial company has reported a standalone net profit of Rs 894 crore for the quarter ended December 31, 2021, as against a loss of Rs 274 crore posted in the year-ago period. Net Interest Income (NII) grew 14% YoY to Rs 1,580 crore in the period under consideration against Rs 1,384 crore posted last year. The company's gross NPAs declined to 11.3% in Q3FY22 against 12.7% posted in Q2FY22. Net NPA also dropped to 5.63% in December 2021 quarter as against 6.39% posted in September 2021 quarter. Disbursements during the quarter grew by 28% YoY and 24% QoQ. The NBFC shall ensure Net Stage 3 is below 4.0% by year-end FY22. 

Blue Star: India's leading integrated MEP service provider has reported a 30% YoY rise in the consolidated profit at Rs 48 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 37 crore in the corresponding quarter last year. Revenue from operations grew 34% to Rs 1,506 crore against Rs 1,124 crore posted last year. EBITDA stood at Rs 91, up 11% YoY from Rs 82 crore. Margin fell to 6% in Q3FY22 against 7% posted in Q3FY21. 

Bajaj Consumer: The consumer goods company with major brands in hair care has reported a 31% YoY decline in the consolidated profit at Rs 40 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 58 crore in the corresponding quarter last year. Revenue from operations fell 7% YoY to Rs 229 crore in the reported quarter as against Rs 247 crore posted last year. EBITDA stood at Rs 40 crore, down 37% YoY from Rs 63 crore posted last year. Margin contracted to 18% in Q3FY22 from 26% posted in Q3FY21. 

Balaji Amines: The Chemical manufacturing company has reported a 28.8% YoY rise in the consolidated profit at Rs 101.6 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 78.9 crore in the corresponding quarter last year. Revenue from operations grew 44% YoY to Rs 564.9 crore against Rs 392.1 crore posted last year. EBITDA stood at Rs 158.8 crore, up 35.3% from Rs 117.4 crore posted last year. Margins fell to 28.1% in Q3FY22 from 30% posted in Q3FY21. 

JK Lakshmi Cement: The building material company has reported a 44.4% YoY decline in the consolidated profit at Rs 65.8 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 118.4 crore in the corresponding quarter last year. Revenue from operation grew 2.1% YoY to Rs 1,285.7 crore in the period under consideration compared to Rs 1,259.8 crore posted last year. EBITDA stood at Rs 173.7 crore, down 23.9% from Rs 228.2 crore posted last year. Margin contracted to 13.5% in Q3FY22 against 18.1% posted in Q3FY21. 

Welspun Enterprises: Construction engineering company Welspun Enterprises has reported a 79% YoY decline in the standalone profit at Rs 6.3 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 30 crore on the corresponding quarter last year. Revenue from operation fell 47% YoY to Rs 215.5 crore as against Rs 407.3 crore posted last year. EBITDA stood at Rs 12.8 crore, down 72% from Rs 45.4 crore posted last year. Margin contracted to 5.9% in Q3FY22 from 11.1% posted in Q3FY21.

Nelcast: The manufacturer of Ductile & Grey Iron Castings Nelcast has reported a 65% YoY decline in the consolidated profit at Rs 2.1 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 6 crore in the corresponding quarter last year. Revenue from operations grew 24.7% YoY to Rs 232 crore against Rs 186 crore posted last year. EBITDA stood at Rs 10.7 crore, down 38.2% YoY from Rs 17.3 crore posted last year. Margin contracted to 4.6% in Q3FY22 against 9.3% posted in Q3FY21. 

Stocks in News

Apollo Tyres / MRF / JK Tyres / Ceat: Competition Commission of India (CCI) has imposed a penalty of approximately Rs 1,788 crore on five tyre companies. The penalty has been imposed on five companies - Apollo Tyre, Ceat, MRF, JK Tyre and Birla Tyre. CCI has imposed a penalty of Rs 425.53 crore on Apollo Tyre. MRF has been slapped with a penalty of Rs 622.09 crore. Penalties of Rs 252.16 crore and Rs 309.95 crore have been imposed on CEAT and JK Tyre, respectively. A penalty of Rs 178.33 crore has been imposed on Birla Tyres.

PNB: The bank has an intention to divest its stake (23%) in Canara HSBC OBC Life Insurance Co. Ltd., an associate of the Bank. HSBC Insurance (Asia Pacific) Holdings Ltd (INAH), one of the shareholders in Canara HSBC OBC Life Insurance Co Ltd, has expressed its intention to acquire Punjab National Bank's stake in the insurance company. However, the communication from INAH is subject to further evaluation by PNB. Canara Bank owns a 51 per cent stake in the company, while HSBC Insurance (Asia Pacific) Holdings Ltd as a foreign partner owns 26 per cent. With this stake purchase, HSBC Insurance's stake will increase to 49% in the company. After the merger of OBC with PNB, it was necessary for PNB to sell the stake in the insurance company. Context: PNB's PNB MetLife Insurance (30% stake) and Canara HSBC OBC Life (23% stake). 

Bharat Dynamics: Bharat Dynamics Limited (BDL) and the Indian Army have signed a contract worth Rs 3,131.82 crore for the manufacture and supply of Konkurs - M AntiTank Guided Missiles to the Indian Army. The contract will be executed in three years.

Escorts: Fair trade regulator CCI on Wednesday approved the acquisition of certain additional equity in Escorts Ltd by Kubota Corporation. The transaction involves Kubota's acquisition of certain additional equity shares of Escorts by way of preferential allotment and a mandatory tender offer in compliance with the Securities and Exchange Board of India's norms. 

Tata Steel: Dutch public prosecutors on Wednesday said they had launched a criminal investigation into the Dutch arm of Tata Steel and another company for alleged "intentional and unlawful" pollution of surface water. (as reported by Reuters) 

Fund Action 

AGS Transact: Plutus Wealth Management buys 6.5 lakh shares at Rs 160.1/share. 
HP Adhesives: AG Dynamic Funds sells 1.02 lakh shares at Rs 410.27/share.  
Sigachi Industries: Nexus Global Opportunities Fund sells 1.75 lakh shares at 388/share. 
Munjal Showa: Enam Sec sold 1.7 lakh shares between 24 January - 2 February 2022. 
PI Industries: Axis Equity Hybrid Fund bought 1 lakh shares on 28 January 2022. 
Tata Communication: East Bridge Capital sold 13 lakh shares on 27 January 2022. 
Bajaj Holdings: Promoter group bought 1.75 lakh shares between 27-28 January 2022. 

LIC IPO: The government is likely to file draft papers for the mega initial public offering of LIC with market regulator SEBI by next week, said Tuhin Kanta Pandey, Secretary to the Department of Investment and Public Asset Management (DIPAM). The issue, after approval of Sebi, is likely to hit the market in March, he said. DPIIT to soon approach Cabinet on FDI proposal for LIC.