Stocks in Focus on November 8: Paytm IPO, Divi's Laboratories, IndusInd Bank, Sun Pharma, CDSL to Tata Motors and many more

The stock markets kicked off Samvat 2078 on a positive note on Thursday, November 4, 2021, with the benchmark indices gaining during the ceremonial one-hour-long Muhurat trading session. The Sensex ended the session at 60,068, a gain of 296 points, or 0.49%. The Nifty 50 ended with a gain of 0.49%, or 88 points, at 17,917. A majority of the components on both indices ended with gains. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, November 8, 2021. List of such five stocks:

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Paytm IPO: One 97 Communications Limited, the parent company of India's leading digital financial services company, Paytm, will launch its initial public offering (IPO) for subscription today, i.e., Monday, November 8, 2021. The issue will come to a close on Wednesday, November 11, 2021. The company has fixed the price band at Rs 2,080-2,150 per share for the offer as it seeks to raise around Rs 18,300 crore from the issue. The bid lot size is 6 Equity Shares and in multiples thereof. The issue comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale of Rs 10,000 crore (including Anchor portion of 3,83,02,326 Equity shares). Paytm's fundraising plan from the IPO is the biggest ever to date in India. Besides, Paytm has raised Rs 8,235 crore from anchor investors as part of its initial public offering of Rs 18,300 crore. The anchor investors include names like Blackrock (12.6%), Canada Pension Plan(11.4%), Aditya Birla (6.2%), Government of Singapore (5.3%), Schroder international, Touchstone, Fidelity Canadian growth, Nomura and Goldman among others. 

Post Market Earnings

Divi's Laboratories: The pharmaceuticals company and producer of active pharmaceutical ingredients and intermediates has reported a 16.7% YoY rise in the net profit at Rs 606 crore for the quarter ended September 30, 2021, as against a profit of Rs 519 crore posted in the year-ago quarter. Its revenue from operations grew 13.6% YoY to Rs 1,987 crore as against Rs 1,749 crore posted last year. EBITDA grew 10% to Rs 818 crore as against Rs 741 crore posted last year. The margin fell slightly to 41% in Q2FY22 from 42% posted in Q2FY21.
- Generic API sales down 20%.

- Custom synthesis up 65%.

- Total Supply to US and EU markets was 72% of Total Revenue.

- Power Outage in China impacted the supplies, backward integration helped maintain margins.

- The company is expected to commence work on the Kakinada project, which requires an investment of Rs 1,000-2,000 crore. 

Sun TV Network: The mass media company has reported a 17.9% YoY rise in the consolidated profit at Rs 395 crore for the quarter ended September 30, 2021, as against a profit of Rs 335 crore posted in the year-ago quarter. Its revenue from operations grew 10.3% to Rs 848 crore as against Rs 769 crore posted last year. EBITDA grew 5.2% YoY to Rs 529 crore as against Rs 503 crore posted last year. Its margin contracted to 62.4% in Q2FY22 as against 65.4% posted in Q2FY21. The company has declared an interim dividend of Rs 2.50 per share for the financial year 2021-22.
Ambika Cotton Mills: The manufacturer of premium quality Compact and Elitwist cotton yarn has reported a 250% YoY rise in the consolidated profit at Rs 45.5 crore for the quarter ended September 30, 2021, as against a profit of Rs 13 crore posted in the year-ago quarter. Its revenue from operations grew 51.4% to Rs 221 crore as against Rs146 crore posted last year. EBITDA grew 163.5% YoY to Rs 68.5 crore as against Rs 26 crore posted last year. Its margin grew to 31% in Q2FY22 as against 17.8% posted in Q2FY21.
Suven Pharmaceuticals: The Hyderabad-based pharmaceutical company has reported a 31.1% YoY rise in the consolidated profit at Rs 97 crore for the quarter ended September 30, 2021, as against a profit of Rs 74 crore posted in the year-ago quarter. Its revenue from operations grew 27% to Rs 301 crore as against Rs 237 crore posted last year. EBITDA grew 25.3% YoY to Rs 121.5 crore as against Rs 97 crore posted last year. Its margin remained almost flat at 40.4% in Q2FY22 as against 40.9% posted in Q2FY21.

Andhra Petrochemicals: The chemical manufacturing company has reported a 36.5% QoQ rise in the consolidated profit at Rs 86 crore for the quarter ended September 30, 2021, as against a profit of Rs 63 crore posted in the previous quarter ended June 30, 2021. Its revenue from operations declined 0.4% to Rs 243 crore against Rs 244 crore posted in June 2021 quarter. EBITDA grew 3% to Rs 102.5 crore as against Rs 99.5 crore posted in the previous quarter. The margin grew to 42.2% in Q2FY22 as against 40.8% posted in Q1FY22. 

Selan Exploration: The company engaged in oil exploration and production has reported a 23.5% QoQ rise in the consolidated profit at Rs 2.1 crore for the quarter ended September 30, 2021, as against a profit of Rs 1.7 crore posted in the previous quarter ended June 30, 2021. Its revenue from operations grew 12.3% to Rs 18.3 crore against Rs 16.3 crore posted in the previous quarter. EBITDA grew 4.8% to Rs 6.6 crore as against Rs 6.3 crore posted in the previous quarter. The margin contracted to 36.1% in Q2FY22 as against 38.7% posted in Q1FY22. 

Dhanlaxmi Bank: The private sector lender has reported a 73.9% YoY decline in the profits at Rs 3.66 crore for the quarter ended September 30, 2021, as against a profit of Rs 3.66 crore posted in the year-ago quarter. Net Interest Income (NII) grew 3% YoY to Rs 91 crore as against Rs 88.66 crore posted last year. Provisions for the bad loans and contingencies for the reported quarter rose to 141.9% YoY Rs 22.40 crore from Rs 9.3 crore in September 2020. The bank's gross non-performing assets (NPAs) rose to 8.67% QoQ of the gross advances as of September 30, 2021, from 9.25% posted in the previous quarter. Net NPAs too rose to 4.92% from 4.58% posted in the previous quarter.

IndusInd Bank: The private lender in its clarification on the item titled 'Whistleblowers Raise Loan Evergreening Issue at IndusInd Arm' said that the allegations were made by certain anonymous individuals purportedly acting as whistleblowers are grossly inaccurate and baseless. The bank has admitted that due to a technical glitch in May 2021, nearly 84,000 loans were disbursed without the customer consent getting recorded at the time of loan disbursement. This issue was highlighted by the field staff within two days and the technical glitch was rectified expeditiously. Out of the above, only 26,073 clients were active with the loan outstanding at Rs.34 crore, which is 0.12% of the September-end portfolio. The Bank carries necessary provisions against his portfolio. The Standard Operating Procedure has since been revised to make biometric authorization compulsory. The bank said all the loan products managed by Bharat Financial Inclusion (BFIL) in the capacity of a Business Correspondent, are approved by IndusInd Bank and are fully compliant with extant regulatory guidelines, issued from time to time. The processes followed by BFIL pass through an audit, inspection, and risk and compliance checks. The NPA recognition process is fully automated in accordance with the regulatory norms that are applicable to the Bank. It added, "BFIL has an executive-level Risk Management Committee which meets every month. This committee was put in place immediately after the merger. In June 2021, the Bank further strengthened the Governance framework through a Board approved policy, to ensure a cross-functional review of the activities of BFIL."

Sun Pharmaceutical: Two U.S.-based subsidiaries of the company, namely Taro Pharmaceuticals U.S.A., Inc. (Taro) and Sun Pharmaceutical Industries, Inc. (SPII), have signed settlement agreements with the Direct Purchaser Plaintiffs in the In re Generic Pharmaceuticals Pricing Antitrust Litigation that has been taking place in the Eastern District of Pennsylvania, the USA for some time. Under the terms of the settlement agreements, the subsidiaries will make an aggregate payment amounting to a combined total of US$85 Million in exchange for a full release of all claims asserted against them (and all of their affiliates and current and former directors, officers, employees and representatives) in the Direct Purchaser Action by the settlement class members. The settlement payment amounts will be reduced by US$10 Million if the direct purchasers that opt out of the putative class collectively account for 20% or more of Taro’s and SPII’s aggregate dollar sales of the generic pharmaceutical products at issue in the Direct Purchaser Action. The full amount of the payments under the settlement agreements have already been provided for in Sun Pharmaceutical Industries Limited’s prior consolidated financial results. The settlement agreements were entered into without admission of any wrongdoing in the Direct Purchaser Action. 

Besides, Sun Pharma and Lupin are recalling different products in the US, the world's largest market for medicines, for different reasons. As per the latest enforcement report by the US Food and Drug Administration (USFDA), Sun Pharma is recalling 22,752 blister packs of Loratadine-D extended-release tablets, used for the treatment of allergic rhinitis and the common cold, in the US market. According to USFDA, the Mumbai-based drugmaker is recalling the affected lot due to "failed moisture limits. On the other hand, Lupin is recalling 16,272 bottles of Gatifloxacin Ophthalmic Solution, an antibiotic used to treat bacterial infections of the eyes.

CDSL: A vulnerability at a CDSL subsidiary, CDSL Ventures Limited (CVL), has exposed personal and financial data of over 4 crore Indian investors twice in a period of 10 days, according to cyber security consultancy startup CyberX9. The Central Depository Services (India) Limited (CDSL) is a SEBI registered depository and CDSL Ventures Ltd is a KYC registering agency separately registered with the Securities and Exchange Board of India (SEBI). CDSL said that CVL has taken immediate action and the vulnerability has been mitigated now. According to CyberX9, it reported the vulnerability on October 19, to CDSL and the securities depository took around 7 days to fix it which could have been resolved immediately. The exposed data includes investors names, phone numbers, email addresses, PAN, income range, father's name, date of birth etc, CyberX9 said in its blog. CDSL said, "CVL had received a vulnerability alert on the website of CVL which has since been mitigated. We would like to state that CVL took immediate actions to mitigate the vulnerability and have worked proactively to further address any other potential security issues."

PVR/Inox Leisure: Film Sooryavanshi has earned Rs 50 crore in two days, Friday and Saturday. The analyst believes Suryavanshi can collect 70-75 crores this weekend. 

Tata Motors: Jaguar Land Rover (JLR) expects that the ongoing global semiconductor shortage situation will gradually start getting better during the second half of the current financial year. In the meantime, the company owned by Tata Motors will continue to take steps to contain the impact of the shortage on its operations.

Coal India: Coal India's plan to raise prices, which has been pending for some time, is likely to be delayed further as the mining major has failed to secure the nod of key stakeholders amid an outstanding of Rs 24,000-25,000 crore pushing the company in a tough situation, it is source-based news reported by PTI. The report says, the agenda of price hike is unlikely to be placed before the upcoming board meeting on November 12, 2021, as the board has not yet received the go-ahead from important stakeholders in the wake of the chaos of coal shortage since last month, though the global price of coal had risen significantly. Coal dispatch to the power sector has increased by 27.13% to 59.73 million tonnes in October, owing to a spurt in power demand amid an unprecedented rise in import prices. The coal major was attempting to reach 2 million tonnes per day production but till November 6 the average production was 1.6 million tonnes.