Stocks in Focus on January 28: BHEL, PNB, RBL Bank, MMTC, TVS Motor and many more

The benchmark indices ended with modest losses on Thursday, January 27, 2022, dragged by IT, consumer durables and pharma stocks. The barometer index, the S&P BSE Sensex dropped 581.21 points or 1% at 57,276.94. The Nifty 50 index fell 167.80 points or 0.97% at 17,110.15. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, January 28, 2022. List of such five stocks:

Q3FY22 Earnings

BHEL: The state-owned engineering and manufacturing enterprise reported a profit of Rs 14.3 crore for the quarter ended December 31, 2021. It had posted a loss of Rs 179.6 crore in the corresponding quarter last year. BHEL has posted a profit after 7 quarters. The company's revenue from operations grew 15.4% YoY to Rs 5,136 crore compared to Rs 4,451.4 crore posted last year. It has posted a positive EBITDA of Rs 89 crore in the reported quarter as against an EBITDA loss of Rs 179.6 crore posted last year. Turns EBITDA Positive after 7 quarters and control on expenses leads to EBITDA turnaround. The company's margin stood at 1.7% YoY. The company's strong execution in the power segment aids earnings as power revenue grew by 25% YoY at Rs 3,723.5 crore. Trade Receivables at the lowest level in the last 27 Quarters. BHEL in a statement said that its total order book stands at Rs 1.07 lakh crore. 

Punjab National Bank: State-owned Punjab National Bank (PNB) has reported a 123% YoY jump in net profit at Rs 1,127 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 506 crore in the corresponding quarter last year. The public lender's net interest income (NII) fell 7% YoY to Rs 7,803 crore compared to Rs 8,346 crore posted last year. Its provisions increased 17% YoY to Rs 3,654 crore in Q3FY22 compared to Rs 3,118 crore posted in Q3FY21. Gross NPA stood at 12.88% in the December quarter against 13.63% posted in the September quarter. Net NPA came at 4.9% against 5.5% quarter-on-quarter.

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RBL Bank: The private sector lender RBL Bank has reported a 6% YoY rise in the profits at Rs 156 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 147 crore in the corresponding quarter last year. The lender's net interest income (NII) grew 11% to Rs 1,010 crore as against Rs 908 crore posted last year. Gross NPA stood at 4.84% in the December quarter against 5.40% posted in the September quarter. Net NPA came at 1.85% against 2.14% quarter-on-quarter. This was a turnaround quarter for the bank. The bank expects Microfin loan Slippages to lower from coming quarters. It had added six lakh credit cards in the December quarter. The bank is seeing growth across most retail segments. It is expeditiously looking for New CEO.

LIC Housing Finance: The mortgage loan company has reported a 6% YoY rise in the profits at Rs 767 crore for the quarter ended December 31, 2021. it had posted a profit of Rs 727 crore in the corresponding quarter last year. The company's revenue from operations is 3% YoY to Rs 5,054 crore compared to Rs 4,907 crore. The mortgage finance company’s net interest income (NII) rose 14% to Rs 1,455 crore in Q3FY22 against Rs 1,281 crore in the year-ago quarter. Net interest margin (NIM) improved to 2.42% against 2.36%. The lender reported a 5% YoY jump in disbursement. The total outstanding loan portfolio of the company grew 11 per cent in December 2021. 

Coforge: IT firm Coforge has reported a 25.4% QoQ rise in the consolidated profits at Rs 184 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 146.7 crore in the previous quarter ended September 30, 2021. The revenue from operations grew 5.67% QoQ to Rs 1,658 crore compared to Rs 1,569 crore posted in the previous quarter. Its revenue in dollar terms grew 4.1% QoQ at $22.16 crore in Q3FY22 compared to $21.28 crore posted in Q2FY22. The company's EBIT grew 15% YoY to Rs 246.7 crore in the December 2021 quarter compared to Rs 214.5 crore in the September 2021 quarter. The margin grew to 14.9% in Q3FY22 compared to 13.7% posted in Q2FY22. Besides, The board has declared the third interim dividend at Rs 13 per share and fixed February 8, 2022m, as its record date. Coforge has revised its annual revenue guidance upwards to grow around 37% in constant currency (CC) terms (earlier at least ~35% including SLK Global contribution). The company's adjusted EBITDA to grow around 44% YoY. The quarter saw the firm register its highest quarterly adjusted EBITDA margin over the last ten years despite existing supply-side pressures. Attrition level grew to 16.3% in Q3FY22 compared to 15.3% posted in Q2FY22.  

Indus Towers: India's largest mobile tower installation company has reported a 0.76% QoQ rise in the consolidated profit at Rs 1,571 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 1,559 crore in the previous quarter ended September 30, 2021. The company's revenue from operations grew 0.72% QoQ to Rs 6,927 crore compared to Rs 6,877 crore posted in the previous quarter. EBITDA grew 1.7% QoQ to Rs 3,704 crore compared to Rs 3,641 crore posted in September 2021 quarter. Margin improved to 53.5% in Q3FY22 as against 52.9% posted in Q2FY22. 

Nippon Life AMC: Nippon Life India Asset Management's profit after tax declined 18% YoY to Rs 174 crore in the quarter ended December 31, 2021. It had posted a profit of Rs 212 crore in the same period a year ago. Revenue from operations rose 26% to Rs 338 crore during the quarter from Rs 268 crore last year. The company's unique investor base grew 16% to 1 crore. Its overall AUM market share rose to 7.34%. MF AUM came at Rs 2806 billion Vs expectation of Rs. 2830 billion YoY. Its market share came at 7.34% vs YoY 7.2% vs QoQ 7.33%.

Dalmia Bharat: Cement maker, Dalmia Bharat, reported a 60% YoY decline in the profit at Rs 73 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 179 crore in the corresponding quarter last year. Revenue from operations remained almost flat at Rs 2,731 crore in the reported quarter compared to Rs 2,737 crore posted last year. EBITDA fell 40% YoY to Rs 409 crore compared to Rs 681 crore posted last year. Margin stood at 15% in Q3FY22 as against 25% posted in Q3FY21. Sales Volume MT stands at 5.7 Vs 5.8. The company in a statement said, The industry witnessed a difficult quarter with unprecedented cost escalations coupled with a weak demand scenario. However, we believe that the peak of costs is behind us and both the demand and prices are showing some strength."

Birlasoft: The software company has reported a 107% QoQ rise in the consolidated profit at Rs 114 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 103 crore in the previous quarter ended September 30, 2021. Revenue from operations grew 5.9% QoQ to Rs 1,072 crore compared to Rs 1,012 crore posted in the previous quarter. Its revenue in $ terms grew 4.7% QoQ to $14.34 crore compared to $13.7 crore posted in September 2021 quarter. EBIT rose 8.6% QoQ to Rs 144.1 crore compared to Rs 132.7 crore posted last year. The margin grew marginally to 13.4% in Q3FY22 compared to 13.1% posted in Q2FY22. Q3 New wins at TCV $ 121 million. Attrition stands at 31.4% in December 2021 quarter against 24.2% posted in September 2021 quarter. 

MapmyIndia: Software company MapmyIndia (C.E. Info Systems) has reported a 27% YoY decline in profits at Rs 18.5 crore as against a profit of Rs 25.4 crore. Sequentially, the profit fell 14% from Rs 21.6 crore posted in September 2021 quarter. Revenue from operations declined 23% YoY to Rs 43.4 crore compared to Rs 56.7 crore. Sequentially, the revenue declined 11% from Rs 48.6 crore posted in September 2021 quarter. EBITDA fell 40% YoY to Rs 15.56 crore as against Rs 26.1 crore. Sequentially, EBITDA declined 21% from Rs 19.7 crore posted in the previous quarter. Margin stood at 36% in Q3FY22 as against 46% posted in Q3FY21 and 41% posted in Q2FY22. Besides, the company has approved the purchase of a 10% stake in Pupilmesh Pvt Ltd for Rs 50 lakhs.  

Route Mobile: The company has reported a 28% YoY rise in the consolidated profit at Rs 48.3 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 37.6 crore in the year-ago quarter. Revenue from operations grew 46% to Rs 563 crore compared to Rs 385 crore posted last year. EBITDA grew 35% YoY to Rs 61 crore compared to Rs 45 crore posted last year. Margin stood at 11% in Q3FY22 against 11.7% posted in Q3FY21.  

Mahindra Logistics: The integrated logistics & mobility solutions provider company has reported a 72% YoY decline in the profits at Rs 5.07 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 18.4 crore in the year-ago quarter. Revenue from operations grew 7% YoY to Rs 1,118 crore compared to Rs 1,047 crore posted last year. EBITDA fell 9% YoY to Rs 48 crore compared to Rs 53 crore. Its margin stood at 4% in Q3FY22 as against 5.5% posted in Q3FY21. 

Dollar Industries: The company has reported a 56.3% YoY rise in the consolidated profit at Rs 44.4 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 28.4 crore in the year-ago quarter. Revenue from operations grew 22.4% YoY to Rs 382 crore compared to Rs 312 crore posted last year. EBITDA grew 27.8% YoY to Rs 64.3 crore compared to Rs 43.5 crore posted last year. Its margin stood at 16.8% in Q3FY22 as against 13.9% posted in Q3FY21. 

Stocks in News

MMTC: (Zee Business Exclusive). Divestment of Neelanchal Ispat Nigam Limited (NINL) has been completed and a formal announcement will be made in a day to two, sources aware of the development informed Zee Business. Tata Steel has won the bid for NINL, which has been sold at Rs 10,000-12,000 crore. The valuation of NINL was being estimated at Rs 6,000-7,000 crore. Besides Tata Steel, two other companies also placed their bids for NINL and they were JSW steel and JSPL. The government had issued RFP to sell a 93% stake. MMTC holds 49.78% in NINL, NMDC holds 10.10% and 9,68% stake is held by BEML. MMTC will get the amount for selling the stake separately

TVS Motor: TVS Motor Company acquired a majority stake, 75% stake, in electric bike maker and retailer Swiss E-Mobility Group. The Chennai-headquartered automaker said it bought 1.14 lakh shares in the firm at CHF 525.78 per share, valuing the deal at around $100 million, or Rs 750 crore. The acquisition has been made in an all-cash deal through TVS Motor’s Singapore Subsidiary, TVS Motor (Singapore) Pte Ltd. The company has an expansion plan in Europe.

KPR Mill: The Meeting Board of Directors of the Company is scheduled to meet on February 7, 2022, to consider un-audited Financial Results for the Quarter ended December 31, 2021, and the proposal for Buy-back of the fully paid-up Equity Shares of the Company.

Zomato Limited: The Board at its meeting held on January 27, 2022, approved the acquisition of stakes in two companies, namely Adonmo Private Limited (19.48% stakes) and UrbanPiper Technology Private Limited (5% stake). It will acquire stakes in Adonmo, an ad-tech company that is taking targeted digital advertising beyond personal devices to outdoor digital screens, at Rs 112.20 crore and UrbanPiper Technology at Rs 37.38 crore. UrbanPiper is a B2B software platform that acts like a "middle layer" between restaurants and food ordering and delivery players and enables restaurants to seamlessly integrate with multiple players through a single digital interface. Besides, it also formed a subsidiary for NBFC business, name not yet decided. 

Liquor Stocks: Maharashtra government on Thursday permitted all supermarkets to sell wine manufactured in the state as part of the new wine policy. The decision was taken by the state Cabinet presided over by Chief Minister Uddhav Thackeray. Supermarkets with a minimum area of 1,000 sq ft or more shall be allowed to sell wine - as opposed to beers and other liquors - under the new policy enacted last year after the earlier 20-year-old policy lapsed.

Panacea Biotech: DGCI has provided market approval to Covid-19 vaccines COVAXIN and Covishield. These vaccines will not be available at the shops. However, private hospitals and clinics will be allowed to buy these vaccines and vaccinate people. Information related to it will be provided at COWIN. Safety data has to be given in emergency use authorization within 15 days. Now the data will have to be submitted to DCGI in 6 months or more in the conditional market approval. (Negative for company).

Advanced Enzyme: The Board of Directors of SciTech Specialities Private Limited (a 51% subsidiary), in its meeting held on January 27, 2022, has approved investment of SciTech in Vecteng SciTech (Pty) Ltd, South Africa ('Vecteng') by acquiring/subscribing to 14% of paid-up share capital of Vecteng for an amount not exceeding USD 14,500 (i.e. approx INR 1.09 million assuming conversion rate of 1USD = INR 75 at the time of investment).