Stocks in Focus on May 13: Nestle India, Vedanta to RIL; here are the 5 Newsmakers of the Day

The domestic stock markets closed on a red on Tuesday, May 12, 2020. Both the indices, Sensex and Nifty 50, declined around 0.50% amid the volatility in the market. The barometer S&P BSE Sensex fell 190.10 points or 0.60% at 31,371.12. The Nifty 50 index was down 42.65 points or 0.46% at 9,196.55. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, May 13, 2020. List of such five stocks:

Nestle/ Havells/ Syngene/ Blue Star/ JK Paper: These are major companies that have released their March quarter numbers on Tuesday after the market was closed for trading purposes. 

--Nestle India: Nestle posted its Q1CY20 numbers on Tuesday and reported a 13% year-on-year (YoY) growth in consolidated profit at Rs 525 crore compared to Rs 463 crore reported in the same quarter last year. Its revenue from operations jumped 10% to Rs 3,325 crore from Rs 3,003 crore in the year-ago quarter. EBITDA stood at Rs 793 crore, up 5%, from Rs 753 crore. 

--Havells India Ltd: The consumer electrical goods maker Havells India Ltd reported a 12% per cent Year-on-Year (YoY) fall in its consolidated net profit to Rs 177 crore for the fourth quarter ended March 31. Its consolidated net profit stood at Rs 201 crore in the same quarter last year. Revenue from operations stood at Rs 2,216 crore, down 20%, from Rs 2,753 crore posted a year ago. EBITDA fell 22% to Rs 245 crore from Rs 314 crore. Margin declined to 11% from 11.45% a year ago. 

--Syngene International: The company has posted Q4FY20 numbers on Tuesday and reported 19% year-on-year jump in net profit to Rs 153 crore against Rs 128 crore reported in the same quarter a year ago. Revenue stood at Rs 607 crore, up 13%, from Rs 533 crore. EBITDA grew by 27.5% to Rs 204 crore from Rs 160 crore, while the margin was 33% against 30% reported a year ago. 

--Blue Star: The air conditioning and commercial refrigeration company Blue Star on Tuesday reported a 90% year-on-year decline in consolidated net profit at Rs 8 crore for Q4FY20 against a net profit of Rs 76 crore reported in January-March quarter a year ago. Revenue from operations fell 18.6% to Rs 1,299 crore during the period from Rs 1,596 crore. EBITDA fell 66% to Rs 37 crore against Rs 110 crore and margin contracted to 2.85% from 6.89%.
 
--Sequent Scientific: Pharmaceutical company Sequent Scientific on Tuesday reported Q4FY20 numbers and reported a profit of Rs 7 crore against Rs 1 crore posted in the same quarter a year ago. Revenue from operations stood at Rs 62 crore, up 12.7%, against Rs 55 crore posted a year ago. EBITDA fell 67% to Rs 10 crore from Rs 22 crore posted a year ago.
 
--JK Paper: The company on Tuesday reported a 17% decline in consolidated net profit at Rs 93 crore for Q4FY20 due to COVID-19 and subsequent disruptions. Its profit stood at Rs 113 crore in the same quarter a year ago. Revenue from operations fell 6% to Rs 807 crore against Rs 863 crore a year ago. EBITDA fell 10% to Rs 247 crore from Rs 275 crore reported a year ago. Margin stood at 30.6% against 31.8%. The company has temporarily suspended operations at its manufacturing facility - Unit CPM at Fort Songadh, Gujarat for about a week due to lower market demand and extended lockdown in Western Region.

MSCI India Changes: The half-yearly review for MSCI India Index on May 13 may see the inclusion of Abbott India, IPCA Lab, Jubilant Foodworks, PFC, Tata Consumer Products and Torrent Pharma into the India domestic index. All changes will be made as of the close of May 29, 2020, and will be effective from June 1, 2020. The stocks that may face exclusion from the index include Ashok Leyland, Bank of Baroda, Cummins India, M&M Financial and Tata Power. 

Vedanta: Mining major Vedanta’s promoter Anil Agarwal on May 11 announced a proposal to delist Vedanta from the Indian stock exchanges and make it private. In a late evening stock exchange filing, the company announced the decision by its parent Vedanta Resources in which the parent is making an offer to buy out the 48.94% non-promoter shares at Rs 87.5 per share. Promoter holding in the company stood at 50.14 per cent, while public shareholders held 49.46 per cent as per March-end shareholding data.

Jubilant Life Sciences: An integrated global pharmaceutical and life sciences company, Jubilant Life Sciences Limited, on Tuesday announced that its subsidiary, Jubilant Generics Limited, has entered into a non-exclusive licensing agreement with Gilead Sciences that will grant Jubilant the right to register, manufacture and sell Gilead’s investigational drug remdesivir, a potential therapy for Covid-19 in 127 countries including India. Talks are on with Dr Reddy’s and Cipla. 

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Reliance Industries Limited (RIL): The stock will turn ex-rights on Wednesday, May 13, 2020.