Stocks to Watch: Tata Steel, HDFC, AEL, AWL, SpiceJet, Titan, BoB, NTPC

Stocks to Watch Today: Tata Steel has announced a 46.8 per cent jump in Q4 net, and also announced a 10:1 stock split; LIC's Rs 21,000 crore IPO opens today.

Stocks to Watch Today: The key benchmark indices are likely to start trade on a quiet note on Wednesday as global markets traded in a thin range ahead of the US Federal Reserve meeting outcome later tonight. As of 07:20 AM, the SGX Nifty April futures quoted at 17,085 as against the spot Nifty close of 17,069 on Monday. 

Over the last couple of trading sessions, bonds fell around the world as investors braced for the biggest US rate hike since 2000 and a wave of policy tightening by other central banks. The US Federal Rerserve is expected to raise rates by 50 basis points tonight, and several times thereafter, with traders seeing about 250 basis points of tightening between now and year’s end. The UK too is expected to raise borrowing costs a day later.

That apart, Life Insurance Corporation’s (LIC) maiden initial public offer -- India’s largest IPO till date opens for subscription today. The LIC IPO priced in the range of Rs 902 to Rs 949 will be accepting bids till May 09. The company has raised Rs 5,627 crore from anchor investors, with more than 70 per cent allotment to domestic institutional. Should you invest? HERE’s WHAT BROKERAGES SUGGEST

Meanwhile, following are the stocks that are likely to see some action in trades on Wednesday.

Earnings Watch: ABB, Adani Green, Aptech, Bombay Dyeing, Car Trade, Equitas Bank, Havells, Kotak Bank, Oracle Financial Services, Rain Industries, Tata Consumer Products and TCI Developers were among 31 companies scheduled to announce Q4 results on Wednesday.

Tata Steel: The steel major reported a 46.8 per cent YoY increase in consolidated net profit at Rs 9,756 crore for the quarter ended March 2022 with the European business delivering a strong performance. Total revenue for the quarter surged 38.6 per cent YoY to Rs 69,324 when compared with Rs 50,028 crore in the year-ago period.

Further, the company’s board recommended a dividend of Rs 51 per fully paid equity share and Rs 12.75 per partly paid equity shares. It also announced a 10:1 stock split; wherein each share with the face value of Rs 10 will be sub-divided into 10 equity shares with a face value of Re 1 each. READ MORE

HDFC: The mortgage lender reported a 16 per cent increase in net profit in January-March quarter, aided by a rise in net interest income and lower provisions. Net profit totaled to Rs 3,700 crore in Q4FY22 versus Rs 3,180 crore in the year-ago period, beating street estimates. Net interest income was up 14 per cent at Rs 4,601 crore, aided by higher loan growth. READ MORE

Adani Enterprises:  Adani Group’s flagship company Adani Enterprises (AEL) posted a 30 per cent growth in consolidated net profit of Rs 304.32 crore for the quarter ended March 31, 2022 as against Rs 233.95 crore in the corresponding period a year ago. Total revenue grew by 83.7 per cent YoY to Rs 25,141.56 crore. READ MORE

Adani Wilmar (AWL): The company announced the acquisition of several brands including the renowned Kohinoor from McCormick Switzerland GMBH for an undisclosed amount. Post this acquisition, AWL will strengthen its position with a 12 per cent market share in basmati rice. AWL’s Fortune had a 6.5 per cent market share and Kohinoor 5.2 per cent. READ MORE

Meanwhile, AWL’s net profit for Q4FY22 declined 26 per YoY to Rs 219.2 crore) on the back of higher tax expense. In the quarter, the edible oil major’s revenue from operations rose 40.2 per cent YoY to Rs 14,960.4 crore. 

SpiceJet: The Aircraft Accident Investigation Bureau (AAIB) will carry out a probe into SpiceJet’s Mumbai-Durgapur flight that encountered severe turbulence on Sunday evening, causing serious injuries to two passengers. A formal order on the AAIB probe is yet to be issued. 

Further, a SpiceJet aircraft operating on the Mumbai- Kishangarh route rejected take-off and returned to the parking bay due to a technical glitch on Tuesday. READ MORE

Consumer Durables: India’s consumer durables market has been affected because the supply of components used in manufacturing goods ranging from television panels to refrigerators and washing-machines is stuck in Shanghai owing to the Covid-induced lockdown there.

Eric Braganza, president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), said it was difficult to predict the extent of the impact the lockdown in China would have on consumer durables, and parts of Beijing were also being shut down, which too could hurt the industry. READ MORE

Meanwhile, driven by the early arrival of summer and intense heat wave, residential air conditioner makers clocked an all-time high monthly sale of around 17.5 lakh units in April. They are looking forward to record sales of around 90 lakh units this year, said CEAMA.

Godrej Properties: The Mumbai-based real-estate major reported a consolidated net profit of Rs 260.47 crore for the quarter ended March 2022 on higher income. The company had posted a net loss of Rs 191.57 crore in the year-ago period. Total income zoomed 164.3 per cent YoY to Rs 1,522.57 crore from Rs 576.08 crore during the period.

Titan: The Tata group firm reported a 7.21 per cent decline in its consolidated net profit at Rs 527 crore in the fourth quarter ended March 2022 versus Rs 568 crore in the January-March quarter of FY21. Total income was up 4.25 per cent at Rs 7,872 crore as against Rs 7,551 crore.

Ambuja Cements: Adani and JSW groups submitted non-binding bids to acquire Ambuja Cements last week. Both groups have tied in their funding with a clutch of private equity (PE) firms and offered timelines to close the transaction at the earliest, said a banker privy to the deal. READ MORE

JSW Energy: The company reported an over eight-fold increase in consolidated net profit for the quarter ended March 31, 2022 (Q4) on one-time gains including a reversal of a provision due to a tariff true-up order of its Karcham Wangtoo power plant, located in Himachal Pradesh. After adjusting for the tariff reversal, the company's net profit stood at Rs 372 crore in Q4. Revenue from operations increased 55.5 per cent YoY to Rs 2,441 crore.

Fino Payments Bank: On April 29, Fino Paytech, the promoter company of Fino Payments Bank (Fino PB), decided to limit the tenure of independent directors for companies in the group to one term. The decision was taken on the same day the electronic voting (e-voting) for the reappointment of Fino PB chairman and other independent directors on the board came up. READ MORE

Bank of Baroda (BoB): The state-run bank cut its lending rate on loans by 25 basis points to 7 per cent on car loans, seeking to push its retail loan book. The bank also announced a reduction in processing charges to a flat Rs 1,500 plus Good and Services Tax (GST).

IIFL Finance: The non-banking financial company and Open Financial Technologies, Asia’s largest SME focused neo-banking platform announced a joint venture (JV) to launch India’s first neobank that would cater to banking and credit requirements of Micro and Small Enterprises (MSMEs). Initial capital of the joint venture company will be Rs 120 crore. READ MORE

NTPC: India’s state-run electricity giant plans to expand its coal-fired power fleet with a first new project in six years, a policy shift that reflects alarm over the nation’s worsening power crisis. The company plans to award a contract to construct a 1,320-megawatt plant in Odisha this month.

Coal India:  India’s coal output soared by 28 per cent to 66.1 million tonnes (mt) in April amid high demand from thermal power plants as several parts of the country grappled with power shortage. Coal India (CIL) and its subsidiaries produced 53.4 mt of coal.

IDBI Bank: The private sector bank reported a 35 per cent jump in net profit at Rs 691 crore in the fourth quarter (Q4) of FY22 on moderation in provisions and contingencies. Its net interest income (NII) was down by 25 per cent at Rs 2,421 crore for Q4FY22 against Rs 3,239 crore in the year-ago period. 

Britannia Industries: The company’s net profit increased 4.3 per cent YoY to Rs 379.9 crore in the March quarter as margins were under pressure due to higher raw material costs.  The cost of raw material consumed in the quarter was up 21.3 per cent at Rs 1,858.7 crore. Total income from operations rose 13.4 per cent YoY to Rs 3,550.5 crore.