Stocks in Focus on January 4: SCI, Marico, Vedanta, Biocon, RailTel and many more

The market kicked off the calendar year 2022 on a robust note as the Sensex and Nifty closed above 59,000 and 17,600 respectively. The S&P BSE Sensex jumped 929.40 points or 1.60% at 59,183.22. The Nifty 50 index surged 271.65 points or 1.57% at 17,625.70. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, January 4, 2022. List of such five stocks: 

SCI: Zee Business Exclusive. The divestment process of the Shipping Corporation of India (SCI) will gain momentum. Sources aware about the development informed Zee Business that the Cabinet Secretary will have a discussion next step that will be required for divestment of SCI. DIPAM has plans to complete the divestment process of the company soon. According to the sources, the non-core assets will be demerged and put into a new company, which will be listed separately. Financial bidders will bid for the core business. DIPAM has sent a proposal related to the disinvestment of SCI to MCA.  

Business Update 

Marico: Marico in its quarterly update for Q3FY22 has said that the quarter was characterised by slowing consumption patterns which affected the sector as a whole. This was mainly due to continuing inflation impacting overall disposable incomes as well as rising mobility unleashing some degree of pent-up demand for discretionary goods, services, and out-of-home consumption. Rural demand was also sluggish, albeit optical to an extent, given the high base. Revenue growth in the quarter was in double digits, while volumes were flat, owing to the weaker consumption sentiment and a strong base.

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However, on a 2-year CAGR basis, volume growth was close to our medium-term aspiration. Parachute Coconut Oil had a muted quarter on a high base. Value-Added Hair Oils posted softer growth in value terms in the quarter but has delivered double-digit value growth on a 2-year CAGR basis. The Saffola franchise grew in the high teens in value terms, led by strong 20%+ growth in Foods, which is on course to reach the Rs 5 billion mark in revenues this year. Saffola Edible Oils volumes dropped, largely owing to higher in-home consumption in the base and weak trade sentiment due to fluctuating input prices. Premium Personal Care posted broad-based double-digit growth. Digital-first brands, Beardo and Just Herbs, also tracked in line with expectations. The International business delivered high teen constant currency growth on a healthy base. All markets fared positively, led by Bangladesh and a smart recovery in Vietnam. 

Karnataka Bank: In its quarterly update of Q3FY22, the bank has reported a 5% YoY and 2% QoQ rise in the loan book. Deposits grew by 6.3% YoY and 2% QoQ. The Bank’s CASA grew by 31.31% YoY against 30.08% posted in the same period last year.  

HDFC Ltd.: Mortgage lender Housing Finance Development Corporation Ltd (HDFC) in its business update for the quarter ending December 2021, on Monday said the company has assigned loans amounting Rs 7,470 crore in Q3FY22 compared to Rs 7,076 crore posted in the corresponding quarter of the previous year. Gross income from dividends for the quarter stood at Rs 195 crore compared to Rs 2 crore posted last year. Its liquidity buffer stood at approximately Rs 55,000 crore.  

Dhani services: The company in its business update informed OneFreedom Card Paying Subscribers has increased to 39 lakhs QoQ against 24.2 lakhs. The transaction number on Dhani card has gone up to 6.3 crore QoQ from 2.9 crore.  

Production Update 

Vedanta: The company has announced its Q3FY22 production performance update and said the cast metal aluminium production at our smelters stood at 5,79,000 tonnes in Q3FY22, higher 16% in comparison to Q3FY21 and 2% as compared to Q2FY22. The Lanjigarh refinery produced 472,000 tonnes of alumina in Q3 FY22, 16% higher as compared to Q3 FY21 and 8% lower as compared to Q2 FY22. The iron ore production at Karnataka was 1.2 million tonnes, lower by 14% as compared to Q3FY21 and 4% as compared to Q2FY22 due to impact on operations because of heavy rainfall in Q3FY22. Iron ore sales at Goa few 90% YoY and 42% QoQ.  

Hindustan Zinc: The company in its production update for Q3FY22 said that its Integrated Metal production stood at 261000 tonnes, up 11% YoY, and 25% QoQ. Refined Zinc production stood at 214000 tonnes, up 17% YoY and 32% QoQ. Silver integrated production was 173000 Tonnes, down 5% YoY and up 14% QoQ. Wind Power production fell by 12% YoY and 62% QoQ. The integrated metal production in Q3FY22 was the highest ever quarterly integrated metal production.  

Maruti Suzuki: The carmaker has announced its December production number and said total production stood at 1.52 lakh units in December 2021, down 1.9% from 1.55 lakh units produced in December 2020.  Total passenger vehicle production stood at 1.48 lakh units down 3.1% YoY from 1.53 lakh units. Total Mini+ Compact Sub Segment production stood at 1.06 lakh units down 6.1% YoY from 1.12 lakh units. Total Passenger Cars production stood at 1.079 lakh units down 5.7%. Besides, creating another new record, Maruti Suzuki India Limited on Monday announced that it has exported 205,450 vehicles in CY 2021. This is the highest ever export figure in any calendar year by the Company.  

Ajmera Realty: Premium Realty Developer Ajmera Realty & Infra India ltd. has recently executed a development agreement to undertake a redevelopment project of Fairyland Co-operative Housing Society, located at an elite location of Juhu in Mumbai. Funded through a mix of debt and equity, this project is estimated to accrue a sales value of Rs 150 crores. The 10,520 sq ft plot will act as an enabler to the growth of quality housing and will comprise of 15 flats in a single tower with a total saleable area of approximately 30,000 sq ft. This real estate project will primarily focus on residential apartments of 3 & 4 BHK flats. 

Biocon: The board of directors of the company has approved the merger by absorption of Covidshield Technologies Private Limited ('CTPL'), a wholly-owned subsidiary of Serum Institute Life Sciences Private Limited ('SILS'), with, and into Biocon Biologics Limited ('BBL'), a material subsidiary of Biocon Limited ('the Company'). Under the terms of the agreement, BBL will offer 15% (fifteen per cent) stake to SILS. BBL (post-merger of CTPL into BBL), will get committed access to 100 million doses per annum for 15 years, primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including COVID-19 vaccines) for global markets 

RailTel: The Board of Directors of the Company is scheduled to meet on Monday, January 10, 2022, to consider declaration of Interim Dividend, if any, for the Financial Year 2021-22. The Company has fixed Friday, January 21, 2022, as 'Record Date' for the purpose of determining the eligibility of Members entitled to receive the Interim Dividend for the FY 2021-22.  

Hinduja Global: The Board of Directors of the Company will meet on January 6, 2022, to consider and approve the declaration of interim dividend, if any, for the financial year 2021-22; and proposal for declaration of Bonus Issue of Equity Shares. 

Wockhardt Ltd.: The Board of Directors of the Company will meet on January 6, 2022, to consider and approve various fund-raising options for the Company, as the Board may deem appropriate.