Stocks in Focus on October 29: Fino Payments Bank IPO, NTPC, GSFC, IRCTC to Godrej Group Stocks and more
The Sensex and the Nifty on Thursday, October 29, 2021, witnessed losses of around 1.90% amid negative global cues.
The Sensex and the Nifty on Thursday, October 29, 2021, witnessed losses of around 1.90% amid negative global cues. Sensex declined below the 60,000 mark while the Nifty closed below the 17,900 level. The BSE Sensex tumbled 1159 points, or 1.89%, to close at 59,985. The NSE Nifty 50 also plunged 354 points, or 1.94%, to trade at 17,857. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, October 29, 2021. List of such five stocks:
IPO Update: Fino Payments Bank IPO + Nykaa IPO
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Fino Payments Bank IPO: Fino Payments Bank Limited's initial public offering (IPO) will open for subscription today, i.e. on Friday, October 29, 2021. The public issue will close on Tuesday, November 2, 2021. The fintech company has fixed a price band of Rs 560-577 per share as the company seeks to raise up to Rs 1,200 crore from the public offering. The public issue will include a fresh issue of Rs 300 crore and an offer for sale of up to 1,56,02,999 shares (worth Rs 900 crore at the upper band) by the promoter Fino Paytech. Bids can be made for a minimum of 25 Equity Shares and in multiples of 25 shares thereafter. Besides, the company has raised Rs 539 crore from the 29 anchor investors a day before the opening of the issue. The anchor investors include HSBC, Fidelity Funds, Societe Generale, BNP Paribas, Tata MF, SBI Life, Motilal Oswal MF, Aditya Birla Sun Life Trustee among others.
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Nykaa IPO: The Initial Public Offering (IPO) of FSN E-Commerce Ventures Ltd, the parent company of the online beauty e-commerce platform Nykaa, was subscribed 1.55 times on the first day of bidding. The Qualified Institutional Buyers(QIBs) portion was subscribed 1.39 times, while the Non-Institutional Investors (NIIs) and Retail Individual Investors(RIIs) portions were subscribed 0.6 times and 3.5 times. The employee portion was subscribed 0.68 times. The issue will close on Monday, November 1, 2021. The company has fixed a price band of Rs 1,085-1,125 per share as the company seeks to raise more than Rs 5,351.9 crore through the public offering. The IPO comprises a fresh issue of equity shares aggregating up to Rs 630 crore and an offer for sale (OFS) of up to 41,972,660 equity shares being offered by the selling shareholders. Bids can be made for a minimum of 12 equity shares and in multiples of 12 equity shares thereafter, a maximum of up to Rs 2 lakhs. The company is offering a discount of Rs 100 per Equity Share to Eligible Employee Category.
NTPC + IndiGo + M&M Finance + Tata Power + RBL Bank + DLF + AU Small Finance Bank
NTPC: The power generator has reported an 8.4% YoY decline in the standalone profit at Rs 3,213 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 3,505 crore in the year-ago quarter. Lower other income, higher expenses hurt profit. Its revenue from operations grew 15% to Rs 28,329 crore as against Rs 24,677 crore posted last year. EBITDA grew marginally by 0.6% to Rs 7,224 crore as against Rs 7,183 crore posted last year. Its margin contracted to 25.5% in Q2FY22 as against 29.1% posted in Q2FY21.
InterGlobe Aviation: The operator of India's top domestic airline IndiGO has reported a consolidated loss of Rs 1,436 crore for the quarter ended September 30, 2021, from a loss of Rs 3,174 crore posted in the previous quarter ended June 30, 2021. Its revenue from operations grew by 86.5% QoQ to Rs 5,608 crore as against Rs 3,007 crore posted in June 21 quarter. It posted a positive EBITDAR of Rs 341 crore as against a negative EBITDAR of Rs 1,360 crore posted in the previous quarter. Indigo's passenger load factor (PLF) increased to71.1% in Q2FY22 as against 58.7% posted in Q1FY22.
M&M Finance: The finance service company has reported a 237% YoY rise in the standalone profit at Rs 1,023 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 304 crore in the year-ago quarter. Its net interest income (NII) grew 7% to Rs 1,493 crore as against Rs 1,391 crore posted last year. However, the finance company's total income dropped by 5% to Rs 2,522 crore in the period under consideration as against Rs 2,650 crore posted last year. The Gross non-performing assets (GNPAs) stood at 12.68% in Q2FY22 as against 15.46% in Q2FY21. The net NPAs stood at 6.39% as against 7.8% posted in Q1FY22. Collection Efficiency improved to 98% as against 80% posted in Q1FY22.
Tata Power: Electric power distribution company has reported a 51% YoY rise in the consolidated profit at Rs 421.5 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 280 crore in the year-ago quarter. Its revenue from operations grew 18.3% YoY to Rs 9,810 crore as against Rs 8,290 crore posted last year. EBITDA declined by 16% YoY to Rs 1,663.6 crore as against Rs 1,986 crore posted last year. Margins contracted to 17% in Q2FY22 as against 24% posted in Q2FY21. Higher other income aids profit and it had a gain of Rs 200 crore from the sale of an investment.
- Generation Revenue at Rs 2217 crore, down 36%
- Renewables Revenue at 1495 crore, up 35%
- Transmission Revenue at 6787 crore, up 49%
- Solar EPC orderbook at 9,264 crore
Besides, Sanjeev Churiwala was appointed CFO, to take over from January 1, 2022. Current CFO Ramesh Subramanyam to take up a new role in Tata Group.
RBL Bank: The private sector lender RBL Bank has reported a 79% YoY decline in the profit at Rs 31 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 144 crore in the year-ago quarter. Its Net Interest Income (NII) dropped 2% YoY to Rs 915 crore from Rs 932 crore posted last year. The provisions rose 34% to Rs 651 crore as against Rs 487 crore posted last year. Other income rose 42% to Rs 593 crore as against Rs 418 crore posted last year. The bank's net interest margin (NIM) fell to 4.1% in September 2021 against 4.3% posted in September 2020. Advances remain flat. Gross NPAs increased to 5.4% in September 2021 from 4.99% in June 2021. The Net NPA grew to 2.14% in Q2FY22 from 2% in Q1FY22. The slippage ratio stands at 2.15% in the reported quarter against 2.29% posted in the previous quarter. The bank restructured loans of the lender rose to 3.35% in Q2FY22 as against 1.8% in Q1FY22.
DLF: The real estate developer has reported a 6.3% YoY rise in the consolidated profit at Rs 379 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 232 crore in the year-ago quarter. Sales fell by 8% YoY to Rs 1,481 crore in the period under consideration from Rs 1,610 crore posted last year. EBITDA declined by 1% to Rs 458 crore from Rs 463 crore posted last year. Margins improved to 30.9% in Q2FY22 from 28.7% posted in Q2FY21.
AU Small Finance Bank: The commercial banking company has reported a 13.5% YoY rise in the standalone profit at Rs 278.5 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 322 crore in the year-ago quarter. However, the bank said that its net profit was up 42% YoY at Rs 279 crore as against Rs 196 crore after excluding the profit earned from stake sale in Aavas Financiers. Gains from stake sale in Aavas Last year was Rs 144 crore. The bank's net interest income (NII) grew 34% to Rs 753 crore from Rs 561 crore posted last year. Its gross NPAs declined to 3.16% in Q2FY22 from 4.21% posted in Q1FY22. The net NPA dropped to 1.65% in September 2021 from 2.26% posted in June 2021. Disbursements were up 57% YoY to Rs 5,135 crore from Rs 3,268 crore.
-Improvement seen sequentially in terms of economic activity, borrower connect, business continuity, and overall confidence in the operating environment -
- The bank remains optimistic with a cautious approach
- Demand across Wheels, Home Loans and Business banking is recovering quite well whereas green shoots are visible in the SBL business
- Going forward, Bank will assess the GNPA pool and look to write off loans with low recoverability
- Trends in collection efficiency and customer activation have sustained (versus June’21) and are at pre-COVID levels (Feb’20)
GSFC + Blue Star + GHCL + GMM Pfaudler + GNFC + Schaeffler India + Cartrade Tech + JK Tyre + UTI AMC
GSFC: The chemical company has reported a 33.5% YoY rise in the consolidated profit at Rs 231 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 173 crore in the year-ago quarter. Its revenue from operations grew 20% YoY to Rs 2,532 crore from Rs 2,110 crore posted last year. EBITDA grew 60.6% YoY to Rs 331 crore from Rs 206 crore posted last year. The margins improved to 13.1% in Q2FY22 from 9.8% posted in Q2FY21.
Blue Star: The leading integrated MEP service provider has reported a 105% YoY rise in the consolidated profit at Rs 31.36 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 15.3 crore in the year-ago quarter. Its revenue from operations grew 37% YoY to Rs 1,240 crore from Rs 902 crore posted last year. EBITDA grew 29% YoY to Rs 71 crore from Rs 55 crore posted last year. The margins declined to 5.7% in Q2FY22 from 6.1% posted in Q2FY21.
GHCL: The chemical manufacturing company has reported a 30% YoY rise in the consolidated profit at Rs 110 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 84.4 crore in the year-ago quarter. Its revenue from operations grew 22% YoY to Rs 982.5 crore from Rs 806.5 crore posted last year. EBITDA grew 21% YoY to Rs 192.6 crore from Rs 159.3 crore posted last year. The margins remain flat at 19.6% in Q2FY22 from 19.7% posted in Q2FY21.
GMM Pfaudler: The manufacture of corrosion-resistant glass-lined equipment used primarily in the Chemical Pharmaceutical and allied industries has reported a 29% YoY rise in the consolidated profit at Rs 34.6 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 26.8 crore in the year-ago quarter. Its revenue from operations grew 248% YoY to Rs 647.2 crore from Rs 186.2 crore posted last year. EBITDA grew 138% YoY to Rs 93.76 crore from Rs 39.37 crore posted last year. The margins contracted to 14.4% in Q2FY22 from 21.1% posted in Q2FY21.
- Board approves payment of 2nd interim dividend for the financial year 2021-22 at Re 1 per share for 1,46,17,500 equity shares for the face value of Rs 2 each. The record date is fixed at November 11, 2021.
- Strong top-line growth is driven by India, China and Germany. Order intake continues to remain
- Strong giving us a healthy backlog across geographies.
- Acquisition synergies have started taking shape resulting in improvement in earnings and the outlook remains positive.
GNFC: The chemical industry company has reported a 102.8% YoY rise in the consolidated profit at Rs 282 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 139 crore in the year-ago quarter. Its revenue from operations grew 76.5% YoY to Rs 2,096 crore from Rs 1,187 crore posted last year. EBITDA grew 122% YoY to Rs 430.7 crore from Rs 194 crore posted last year. The margins improved to 20.5% in Q2FY22 from 16% posted in Q2FY21.
Schaeffler India: Ball and roller bearing manufacturing company Schaeffler India has reported a 53% YoY rise in the consolidated profit at Rs 171 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 112 crore in the year-ago quarter. Its revenue from operations grew 33% YoY to Rs 1,487.4 crore from Rs 1,120.6 crore posted last year. EBITDA grew 39% YoY to Rs 264.3 crore from Rs 189.5crore posted last year. The margins improved to 17.7% in Q2FY22 from 16.9% posted in Q2FY21. The Board of Directors of the Company has approved the sub-division of each equity share of the face value of Rs 10 per share into 5 equity shares of the face value of Rs 2 per share subject to the approval of shareholders of the Company.
CarTrade Tech: Multi-channel automobile buying and selling platform CarTrade Tech Ltd has reported a consolidated loss of Rs 38 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 7 crore in the year-ago quarter. Its revenue from operations grew 36.8% YoY to Rs 78 crore from Rs 57 crore posted last year. It posted a negative EBITDA of Rs 32 crore in the period under consideration as against a positive EBITDA of Rs 10 crore posted last year. It posted a negative margin of 41% in Q2FY22 against a positive margin of Rs 17.5% posted in Q2FY21.
JK Tyre: The tires and tubes company has reported a 37% YoY drop in the consolidated profit at Rs 66.5 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 105 crore in the year-ago quarter. Its revenue from operations grew 31% YoY to Rs 2,986.66 crore from Rs 2,274.84 crore posted last year. EBITDA dropped 18% to Rs 292.41 crore from Rs 355.04 crore posted last year. Margin contracted to 9.7% in Q2FY22 from 15.6% posted in Q2FY21.
UTI AMC: The mutual fund company has reported a 67% YoY rise in the consolidated profit at Rs 199 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 119 crore in the year-ago quarter. Its sales grew 37.6% YoY to Rs 380 crore from Rs 276 crore posted last year. EBITDA grew 49% YoY to Rs 233 crore from Rs 156 crore posted last year. The margins improved to 61 % in Q2FY22 from 56.5% posted in Q2FY21.
IRCTC: Indian Railway Catering and Tourism Corporation (IRCTC) has been asked to share 50% of the convenience fee the company earns with the ministry of railways. It will have to share half of the revenue it earns from November 1, 2021. Ticketing business accounts for 27% of revenue in FY20. Experts believe that it is possible to have an effect of 20-25% on the total income.
Godrej Group Stocks + Tata Consumer Products
Godrej Group: Godrej Family is looking to divide the businesses between two groups. One group will be led by the families of patriarch Adi Godrej and his brother Nadir while the other by their cousins Jamshyd Godrej and Smitha Godrej Crishn. Reportedly, the group worth $1.4 billion, has initiated a formal exercise to divide the businesses. In the next 6 months, the group may split into 2 halves.
Tata Consumer Products: Tata Consumer Products has decided to transition its Tata Cha business -- a tea café format Quick Service Restaurant (QSR) chain -- to Qmin Shops operated by a subsidiary of Indian Hotels Company Limited (IHCL). This enables Tata Consumer Products to better focus on its core FMCG business.
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