Stocks in Focus on January 27: Cipla, United Spirits, Vedanta, JB Chemicals, Zen Technologies and many more
Stocks in Focus on January 27: The benchmark indices advanced on Tuesday, January 25, 2022, snapping a five-day losing streak. On the day, the S&P BSE Sensex jumped 366.64 points or 0.64% at 57,858.15.
The benchmark indices advanced on Tuesday, January 25, 2022, snapping a five-day losing streak. On the day, the S&P BSE Sensex jumped 366.64 points or 0.64% at 57,858.15. The Nifty 50 index advanced 128.85 points or 0.75% to settle at 17,277.95. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Thursday, January 27, 2022. List of such five stocks:
Q3FY22 Earnings Update
Cipla: The drug firm Cipla has reported a 2.54% YoY decline in the consolidated profit at Rs 729 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 748 crore posted in the corresponding quarter last year. The drug firm's revenue from operations grew 5.99% YoY to Rs 5,479 crore as against a revenue of Rs 5,169 crore posted last year. EBITDA remained almost flat at Rs 1,230 crore in the reported quarter as against Rs 1,231 crore posted last year. The margin dropped to 22.4% in Q3FY22 as against 23.8% posted in Q3FY21.
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Geography
- India: up 13%
- US: up 7%
- API: Down 27%
- US sales at $150 Mn vs $142 Mn QoQ (Exp: $144 Mn)
Drop in the coronavirus cases during the third quarter in India led to lower contribution from anti-infective and other COVID-related drugs, affecting sales. Strong performance in the overseas markets of the US, South Africa and the Rest of the World (RoW) was overshadowed by the decline in domestic business. Albuterol total market share is 15.9%. Besides, Ms Naina Lal Kidwai has resigned as Independent Director of the Company.
United Spirits: New Delhi: Diageo-controlled liquor maker United Spirits Ltd has reported a 27% YoY increase in net profit at Rs 291 crore for the quarter ended December 31, 2021. It had posted a net profit of Rs 230 crore in the corresponding quarter last year. The company's revenue from operations grew 10% YoY to Rs 2,947 crore compared to Rs 2,673 crore posted last year. Its EBITDA grew 28% YoY to Rs 491 crore as against Rs 384 crore posted last year. The company's margin grew to 17% in Q3FY22 as against 15% posted in Q3FY21.
- P&A volume growth 7.9% Vs Zee Business estimate of 8%.
- The premium segment accounted for 72.5% of sales during the quarter.
- External operating environment in the near term to remain challenging.
- Challenges include the potential impact from COVID-19, Rising cost inflation.
Torrent Pharma: Drug marker Torrent Pharma has reported a 16.16% YoY drop in net profit at Rs 249 crore for the quarter ended December 31, 2021. It has posted a profit of Rs 297 crore in the corresponding quarter last year. The company's revenue from operations grew 5.66% YoY to Rs 2,108 crore in the period under consideration as against Rs 1,995 crore posted last year. EBITDA declined 11.36% YoY to Rs 538 crore as against Rs 607 crore posted last year. Besides, the company’s board has declared an interim dividend of Rs 25 per equity share.
Geographies
- India: Up 15%
- US: Down 20%
- Germany: Down 10%
Can Fin Homes: The leading housing financier Can Fin Homes has reported a 12% YoY drop in the profits at Rs 116 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 132 crore in the year-ago quarter. Net interest income (NII) fell 2% YoY to Rs 206 crore compared to Rs 210 crore posted last year. The company's gross non-performing asset (NPA) fell to 0.7% in Q3FY22 compared to 0.8% posted in Q2FY22. The net NPA stood at 0.4% in Q3FY22 against 0.47% posted in Q2FY22. The housing financier disbursement rose 123% YoY to Rs 2,472 crore in Q3FY22 as against Rs 1,106 crore posted in Q3FY21. Disbursement grew 12% QoQ.
Macrotech: Mumbai-based Macrotech Developers has reported a 23% YoY rise in the profits at Rs 286 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 232 crore in the year-ago quarter. Revenue from operations grew 36% to Rs 2,059 crore compared to Rs 1,514 crore posted last year. EBITDA grew 2.96% YoY to Rs 486 crore compared to Rs 472 crore posted last year. Margin declined to 23.6% in Q3FY22 compared to 31% posted in Q3FY21. The company's net debt fell to Rs 9,896 crore. Lodha witnessed 40% growth in pre-sales, while collections rose 44% to Rs 2,127 crores. Besides, the company has approved the Scheme of Merger by Absorption of Roselabs Finance Limited, National Standard Ltd and Sanathnagar Enterprises with Macrotech Developers Limited.
- Roselabs Finance: 8 Shares of Macrotech for every 1000 Shares of Roselabs
- National Standard: 9 Shares of Macrotech for every 100 Shares
- Sanathnagar: 8 Shares of MAcrotech for every 1000 Shares
Teamlease Services: The payroll services company has reported a 30% YoY rise in the profit at Rs 30 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 23 crore in the year-ago quarter. The company's revenue from operations grew 38% to Rs 1,762 crore in the period under consideration as against Rs 1,275 crore posted last year. Its EBITDA grew 50% to Rs 38 crore compared to Rs 24.4 crore posted last year. The margin grew marginally to 2.1% in Q3FY22 as against 1.95% posted in Q3FY21.
Finolex Industries: The manufacturer of PVC-U pipes and fittings for the plumbing-sanitation and agricultural sectors Finolex Industries has reported a 32% YoY decline in the consolidated profit at Rs 177 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 259 crore in the year-ago quarter. The company's revenue from operations declined 6% YoY to Rs 1,005 crore as against Rs 1,066 crore posted last year. EBITDA stood at Rs 242 crore, down 30% from Rs 346 crore posted last year. Its margin contracted to 24% in Q3FY22 from 32% posted in Q3FY21.
Indiabulls Real Estate: The real estate company has reported a net loss of Rs 87 crore for the quarter ended December 31, 2021, as against a profit of Rs 81 crore posted in the year-ago quarter. The company's revenue from operations fell 55% to Rs 323 crore compared to Rs 722 crore posted last year. It posted a negative EBITDA of Rs 56 crore in Q3FY22. Besides, Gurgaon based Elan Group has acquired 40-acre land from Indiabulls real estate for Rs 580 crore on Dwarka Expressway Gurgaon.
Raymond: The company has reported a 4.5x YoY rise in the profit at Rs 100 crore for the quarter ended December 31, 2021. It has posted a profit of Rs 22 crore in the year-ago quarter. The company's revenue from operations grew 48% to Rs 1,843 crore compared to Rs 1,243 crore. Its EBITDA grew 2.4x YoY to Rs 275 crore compared to Rs 114 crore posted last year. The margin grew to 15% in Q3FY22 from 9.2% posted in Q3FY21. According to the company, it has reported the "highest profitable quarter in last 10 years" and its revenue is now "100 per cent of pre-Covid-19 levels". Besides, the board has approved the demerger of the Real Estate business to be renamed Raymond Realty Limited under the proposed Scheme.
Stocks in News
ABB India/Intellect Design Arena: New Additions in F&O. ABB India and Intellect India will be added to the Futures and Options segment at NSE and will be available for trading w.e.f January 28, 2022, in the February Series.
Lux Industries: Kolkata-based hosiery maker Lux Industries in its clarification on SEBI's interim ex-parte order barring 14 entities for insider trading in its scrip said that the company has received a letter from Mr. Udit Todi, Executive Director of the Company, where he has denied the allegations and observations made against him in the Order. He shall be addressing each and every observation and providing all required clarifications to SEBI. It also said, the company believes that there has been no violation and any infractions committed by the Company in any manner. The Company has initiated the process of seeking required clarification and explanation from the concerned person.
Vedanta: Metals and mining group Vedanta Ltd will announce the contours of a proposal to spin off key businesses into separately listed companies by March-end, its chairman Anil Agarwal said, as he looks to simplify and streamline the corporate structure to create value. While the zinc business is already housed in a listed subsidiary, the plan is to demerge the aluminium, iron and steel, and oil and gas businesses into standalone listed entities. Shareholders will benefit from value-unlocking.
SRF: The Board has approved a project to set up an Aluminium Foil manufacturing facility at a new site in Jaitapur, Indore, India at a projected cost of Rs 425 crore to meet the growing demand for Aluminium Foil. The foil facility will be of 21000 MTPA capacity. The project is expected to be completed in twenty months. In addition, the Board has approved the setting up of a new Pharma Intermediates Plant at its chemical complex in Dahej, India, at an estimated cost of Rs 190 crore to further augment its Pharma manufacturing capability and become future-ready to tap into new and upcoming business opportunities in the Pharma vertical.
J.B. Chemicals & Pharmaceuticals: The company has announced that it will acquire brands for the Indian market from Sanzyme Private Limited (Sanzyme). It acquires probiotics, nutraceuticals and a reproductive portfolio of Sanzyme at Rs 628 crore. The transaction is expected to be completed in the next two weeks subject to customary closing formalities.
Zen Technologies / BEL / Paras Defence: Government has notified drone certification schemes to make certification of drones simpler, faster and transparent. In a tweet, Civil Aviation Ministry said, along with the liberalised drone rules, airspace map, the PLI scheme and the single window Digital Sky Platform, will help the drone manufacturing industry in India. It said, this is another step in making India the drone hub of the world by 2030. The Centre has formulated the Digital Sky Platform for the registration and operation of drones with an all-digital process. The users are required to complete a one-time registration for their drones, pilots and owners. For every flight that a user wishes to embark in a yellow or red zone, they can request permission to fly online.
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