 "Stocks To Watch: IT stocks, Axis Bank, Bharat Forge, Zomato, CEAT, Tata cos")
Stocks to Watch, Friday, October 18, 2024: Markets in India were expected to start on a negative note on Friday, as
indicated by GIFT Nifty futures that were trading around 100 points behind NIfty futures' last close, at 24,745.
indicated by GIFT Nifty futures that were trading around 100 points behind NIfty futures' last close, at 24,745.
Meanwhile, here are a few stocks likely to be in focus today:
Infosys: The IT company has raised its sales forecast for FY25 to 3.75-4.5 per cent, reflecting a revival in demand, particularly in banking and financial services. Q2FY25 net profit was at Rs 6,506 crore, showing a 4.7 per cent Y-o-Y increase but falling short of estimates. The company announced an interim dividend of Rs 21 per share and plans to onboard 15,000-20,000 freshers this financial year.
Axis Bank: The private sector lender reported an 18 per cent Y-o-Y jump in net profit for Q2FY25, reaching Rs 6,918 crore. Despite an increase in loan loss provisions, asset quality improved with a gross NPA ratio of 1.44 per cent. The bank's advances grew 11 per cent Y-o-Y, driven by strong retail loan demand.
Wipro: Wipro reported a 21.3 per cent Y-o-Y increase in net profit to Rs 3,201 crore for Q2FY25. Revenue stood at Rs 22,300 crore, slightly down Y-o-Y but up sequentially. The company’s large deal bookings reached $1.5 billion, marking significant growth.
Bharat Forge: The company is set to acquire AAM India Manufacturing for Rs 544.5 crore, enhancing its presence in the commercial vehicle axle sector. This strategic move aligns with Bharat Forge's goal to diversify its product offerings in the automotive components market.
Zomato: The food delivery giant's board will consider raising funds via a QIP on October 22. This move comes amid rising competition in the food delivery space and follows a solid Q1 FY25 performance with a profit of Rs 253 crore.
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LTIMindtree: The IT solutions provider reported a 7.75 per cent year-on-year increase in consolidated net profits to Rs 1,251 crore for Q2 FY25. Revenues also rose to Rs 9,432 crore, marking a 5.91 per cent increase. The company experienced broad-based growth and added over 2,500 employees during the quarter.
Adani Enterprises: The company has raised Rs 4,200 crore through a qualified institutional placement (QIP) to fund future growth plans. The QIP was oversubscribed by 4.2 times, reflecting strong investor interest. Proceeds will be used for capital expenditure, debt repayment, and general corporate purposes.
Nestle India: The FMCG company reported an 8.6 per cent rise in net profit to Rs 986.4 crore for Q2FY25, despite challenges from high commodity prices. The company continues to expand its product offerings, introducing new Cerelac variants with no refined sugar.
Larsen & Toubro: L&T is preparing to launch its first electrolyser factory, aimed at producing green hydrogen. This facility aligns with the company’s strategy to enhance its new energy initiatives.
Tata stocks: Noel Tata is expected to join the Tata Sons board, following a recent meeting the board of Tata Trusts. This move could signal strategic changes within the organisation as it continues to navigate leadership transitions.
Jindal Stainless: The company reported a 21.05 per cent decline in net profit, at Rs 611.31 crore, for Q2FY25 amid export market challenges. However, it remains optimistic about domestic demand growth, particularly in the white goods and automotive sectors.
CEAT: The tyre manufacturer experienced a 41.4 per cent decline in profit for Q2 FY25 at Rs 121.88 crore, despite an 8.23 per cent increase in revenue, at Rs 3,304.53 crore. The company aims to improve margins amid rising commodity costs through selective price increases.
Reliance Industries: Mothercare has formed a joint venture with Reliance Brands, owned by Reliance Industries, acquiring a 51 per cent stake for £16 million ($21 million) to enhance its presence in South Asia. The company also secured new debt facilities of £8 million, aiding in debt reduction and improving financial flexibility.
Central Bank of India: The bank reported a 50.91 per cent year-on-year increase in net profit to Rs 913 crore for Q2 FY25, supported by rising net interest income and recoveries. Its asset quality improved, with gross NPAs declining to 4.59 per cent.
HDFC Securities: The company has entered the wealth advisory space with HDFC Tru, targeting high-net-worth individuals and family offices. This move aims to capitalise on the expected growth in household financial assets, particularly from Tier-2 and Tier-3 cities.
Prestige Estates Projects: The real estate firm saw sales bookings fall 43 per cent to Rs 4,022.6 crore in Q2 FY25, down from Rs 7,092.6 crore in the previous year, despite ongoing demand for housing.
Indian Overseas Bank: IOB reported a 24 per cent surge in net profit to Rs 777 crore for Q2 FY25, with total income rising to Rs 8,484 crore. The bank improved its asset quality, reducing gross NPAs to 2.72 per cent.
Nuvama: BHIVE leased over 900 seats to Nuvama in its BKC workspace, consolidating Nuvama’s workforce. This move reflects the growing demand for flexible office spaces in key business districts.