Stocks in Focus on February 8: Vedant Fashions IPO, Adani Wilmar, NALCO, TVS Motor, Biocon and many more

The domestic equity barometers ended with deep cuts after a weak session on Monday, February 7, 2022. The barometer index, the S&P BSE Sensex dropped 1,023.63 points or 1.75% to 57,621.19. The Nifty 50 index fell 302.70 points, or 1.73 per cent, to settle at 17,213.60. Barring the Nifty PSU Bank index, all the sectoral indices on the NSE ended in Red. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, February 8, 2022. List of such stocks:

IPO Update

Vedant Fashions IPO: The Rs 3,150 crore initial public offering (IPO) of Vedant Fashions Limited, owner of ethnic wear brand Manyawar was subscribed 0.21 times on Monday, the second day for bidding. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 0.11 times, while the Non Institutional Investors portion and Retail Individual Investors (RIIs) were subscribed 0.09 times and 0.31 times, respectively. The issue will conclude today. The company has fixed a price band of the issue at Rs 824-866 per equity share. A retail investor will be able to apply for the IPO in lots and one lot will comprise 17 shares of the company. The issue is complete an offer for sale (OFS) in which the company’s promoter and existing shareholders will sell 3.64 crore shares.

Adani Wilmar: Adani Wilmar shares will debut on Indian indices today. The issue price for the shares was Rs 230 per share. The public issue open for bidding from January 27-31, 2022, received a good response, getting subscribed 17.4 times, with support from all kinds of investors. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 5.73 times, while the Non Institutional Investors portion and Retail Individual Investors (RIIs) were subscribed 56.3 times and 3.92 times, respectively.

Q3FY22 Earnings

NALCO: National Aluminium Company Ltd (Nalco) on Monday reported a 246% YoY jump in its consolidated profit at Rs 831 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 240 crore posted in the corresponding quarter last year. Revenue from operations grew 59% YoY to Rs 3,773 crore against Rs 2,378 crore posted last year. EBITDA stood at Rs 1,190 crore, up 174% from Rs 434 crore posted last year. Margin improved to 31.5% in Q3FY22 from 18.25% posted in Q3FY21.

Segment growth 

- Chemicals +58% YoY 

- Aluminium +54% YoY 

Besides, the company's board has approved payment of the 2nd interim dividend at Rs 3 per share (60% on the Face value of Rs 5 each) on the paid-up equity share capital of Rs.918.32 crores for the financial year 2021-22. The payment of 2nd interim dividend shall be made on or before March 7, 2022, to all eligible shareholders.

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TVS Motor: The two-wheeler maker TVS Motor has reported an 8.3% YoY rise in the standalone profit at Rs 288 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 266 crore in the corresponding quarter last year. Revenue from operations grew 5.8% YoY to Rs 5,706 crore against Rs 5,391 crore posted last year. EBITDA stood at Rs 567 crore, up 11% YoY to Rs 511 crore posted last year. It reported a margin of 9.9% in Q3FY22 against 9.5% posted in Q3FY21. 

- Records highest ever Revenue, EBITDA and Profit in a Quarter 

- Volume fell 11% to 8.79 lakh units 

- Board appointed Prof Sir Ralf Dieter Speth, Non-Executive Director as Chairman of the Board w.e.f April 1, 2022. 

- Mr Venu Srinivasan, would continue to be the MD designated as Chairman Emeritus 

AMI Organics: The pharmaceutical company AMI Organics has reported a 36% YoY rise in the consolidated profit at Rs 19 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 14 crore in the corresponding quarter last year. Revenue from operations grew 53% YoY to Rs 141 crore against Rs 92 crore posted last year. EBITDA stood at Rs 30 crore, up 36% YoY from Rs 22 crore posted last year. margin dropped to 21% in Q3FY22 against 24% posted in Q3FY21.

Borosil Ltd.: The Indian glassware company Borosil has reported a 9% YoY rise in the consolidated profit at Rs 24 crore for the quarter ended December 31, 2021. It has posted a profit of Rs 22 crore in the corresponding quarter last year. Revenue from operations grew 25% YoY to Rs 237 crore against Rs 190 crore posted last year. EBITDA stood at Rs 36 crore, up 9% YoY against Rs 33 crore posted last year. Margin dropped to 15% in Q3FY22 against 17% posted in Q3FY21. Besides, the board has also approved the demerger of Borosil Technologies Limited and transferred it into Klass Pack Limited, which will be listed on the exchanges. Shareholders will get 3 equity shares of Klass Pack for every 4 shares of Borosil Ltd. 

Jindal Stainless Ltd: The stainless steel producer has reported a 158% YoY rise in the consolidated profit at Rs 442 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 171 crore in the corresponding quarter last year. Revenue from operations grew 58% YoY to Rs 5,670 crore compared to Rs 3,585 crore posted last year. EBITDA stood at Rs 797 crore, up 68% from Rs 473 crore posted last year. Margin improved to 14% in Q3FY22 against 13% posted in Q3FY21. 

Phoenix Mills Ltd: The leading retail mall developer has reported a 44.8% YoY rise in the consolidated profit at Rs 98.9 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 68.3 crore in the corresponding quarter last year. Revenue from operations grew 29.5% YoY to Rs 425 crore compared to Rs 328.2 crore posted last year. EBITDA stood at Rs 230.5 crore, up 45% from Rs 158.9 crore posted last year. Margin improved to 48.4% in Q3FY22 against 48.8% posted in Q3FY21. 

MM Forgings: 

The company has reported an 87% YoY rise in the consolidated profit at Rs 29.4 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 15.64 crore in the corresponding quarter last year. Revenue from operations grew 31% YoY to Rs 297 crore compared to Rs 226 crore posted last year. EBITDA stood at Rs 57 crore, up 60% from Rs 35.6 crore posted last year. Margin improved to 19% in Q3FY22 against 15.7% posted in Q3FY21. 

PB Fintech Ltd: The online financial services platform and owner of PolicyBazaar have reported a consolidated loss of Rs 298 crore for the quarter ended December 31, 2021, against a loss of Rs 19.6 crore posted in the corresponding quarter last year. Revenue from operations grew 73.2% YoY to Rs 367.3 crore against Rs 212.1 crore posted last year. It posted an EBITDA Loss of Rs 318 crore against an EBITDA loss of Rs 22 crore posted last year. Adjusted EBITDA Loss stood at Rs 92 crore against an EBITDA Profit of Rs 2 crore. Adjusted EBITDA is calculated by adding back ESOP Cost. 

Shivam Autotech Ltd: Auto parts company has reported a 15% YoY decline in the consolidated profit at Rs 4.23 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 4.98 crore in the corresponding quarter last year. Revenue from operations dropped 26% YoY to Rs 114.62 crore compared to Rs 154.88 crore posted last year. EBITDA stood at Rs 27.93 crore, up 35% from Rs 20.75 crore posted last year. Margin improved to 24.37% in Q3FY22 against 13.40% posted in Q3FY21. 

Hindalco: Novelis Inc., the world leader in aluminium rolling and recycling, has reported a 48% YoY rise in the net income at $262 million in the third quarter of the fiscal year 2022, compared to $177 million in the prior-year period. Net income from continuing operations increased 33% YoY to $259 million compared to $195 million in the prior-year period. Net sales up 33% at $4.3 billion against $3.2 billion. Adjusted EBITDA up 1% at $506 million. Adjusted EBITDA per ton shipped up 1% at $544 Shipments of 930-kilo tonnes, flat YoY. The company has announced several strategic investments to expand production and recycling capacity and capabilities. 

Stocks in News

Biocon Limited: Biocon Pharma Limited, a subsidiary of Biocon Limited, received approval of its ANDA for Posaconazole Delayed-Release tablets from the US FDA. This product is indicated for use in the prevention of certain fungal infections in patients with severely weakened immune systems and is available in 100mg strength. This approval further adds to Biocon’s portfolio of vertically integrated complex drug products.

TTK Prestige: The company has agreed on making a strategic investment in Ultrafresh Modular Solutions Limited (Ultrafresh) engaged in the business of Modular Kitchens and Kitchen Appliances. It will invest Rs 20 crore in the equity shares of the company for its 40.9% stake. Further investments will be made by the Company in due course, to increase its stake up to 51%, as and when the funds required by Ultrafresh are released by the Company based on the progress of the Business Plan as per agreements.

Hero Moto: Hero FinCorp, a privately owned non-banking finance company (NBFC), reportedly, has raised Rs 2,000 crore ($267 million) from global alternative asset manager Apollo, Hero MotoCorp, and other investors. The company has received Rs 937 crore from Apollo Management and Rs 700 crore from Hero MotoCorp. Apollo will have a 9 to 11% stake in Hero FrinCorp due to the transaction.

Tata steel Long Products: Board meeting scheduled on February 10, 2021, to consider raising money through equity or bonds.

Hindustan Zinc: SC dismisses the government's plea against an order to conduct a CBI inquiry on share sale in 2002.