 "Stocks to Watch, Nov 6: Hindustan Zinc, Titan, Mannapuram Fin, Bharat Seats")
Stocks to Watch, Wednesday, November 6, 2024: Markets around the world are awaiting results from more states to find a clear indication of who would become the next president of the US. In that backdrop, the mood in the markets is likely to remain cautious till a clear winner emerges.
At 7:17 AM, GIFT Nifty futures were trading at 24,226, around 70 points behind Nifty futures' last close.
Meanwhile, here are a few stocks likely to be in focus today:
Vedanta, Hindustan Zinc: The Indian government is looking to sell 2.5 per cent of Hindustan Zinc's equity through an offer for sale (OFS), priced at Rs 505 per share, which is a 9.7 per cent discount to the current market price of Rs 559.5. The OFS opens on November 6 for institutional investors and November 7 for retail investors. The government currently holds a 29.5 per cent stake in HZL and will sell up to 1.25 per cent of the total paid-up capital, with an additional 1.25 per cent available if the offering is oversubscribed.
Titan Company: The company's second-quarter net profit for FY25 dropped 23.1 per cent, primarily due to a reduction in customs duties. Revenue from operations rose 25.8 per cent, reaching Rs 13,473 crore. The company’s jewellery segment, led by Tanishq, reported a 26 per cent growth in income. The company also saw strong growth in its watches and wearables segment, up 19 per cent YoY.
IPOs opening today: In the primary market, food delivery platform Swiggy's and ACME Solar Holdings' initial public offer (IPO) will open for subscription today.
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Reliance Industries: Reliance Jio is planning a $6.25 billion IPO in 2025, likely in Q2 or Q3, with a valuation estimated at $125 billion. This would make it one of the largest telecom IPOs in India, with subscriber numbers (480 million) and key metrics exceeding rival Bharti Airtel. The IPO of Reliance Retail, valued between $125 billion and $150 billion, is expected to follow shortly.
Indian Energy Exchange: IEX reported a 4 per cent YoY increase in its total electricity traded volume for October 2024, reaching 9,642 million units (MU). The exchange also saw significant growth in renewable energy certificate (REC) trading, with a 105 per cent increase in volume. While the Day-Ahead Market (DAM) volume saw a decline, the Real-Time Market (RTM) experienced a robust 30 per cent YoY growth.
Manappuram Finance: The company reported growth in its Q2 earnings for FY24, with a 2 per cent year-on-year increase in consolidated net profit, reaching Rs 571 crore ($68 million) for the September quarter. Analysts had expected a profit of Rs 531 crore, signaling a decline of nearly 5 per cent. The company’s gold loan portfolio saw a 21 per cent increase in revenue, totaling Rs 1,856 crore. The company’s microfinance segment revenue increased 22.6 per cent to Rs 781 crore, contributing 29.6 per cent of total revenue.
JSW Steel: THe company and Posco plan to invest Rs 65,000 crore in an integrated steel plant in Odisha. The investment will scale up production capacity to 18 million metric tons in three years.
Bharti Airtel: Bharti Airtel is closely monitoring the Department of Telecommunications’ (DoT) proposal to waive bank guarantees for spectrum payments. The company has urged the DoT to apply a non-discriminatory approach to all telecom operators, regardless of their financial health.
Bharat Seats: The company is issuing bonus shares for the first time in over 17 years. The bonus issue, if approved, could signal confidence in its financial outlook.
Hero MotoCorp: The company plans to enter the European and UK markets in 2025 with its new electric scooter, the VIDA Z. This marks an ambitious expansion into premium markets, with Hero aiming to build on its global presence.
Mankind Pharma: The company reported a 29 per cent year-on-year increase in Q2 FY25 net profit to Rs 659 crore, driven by strong domestic and export performance. Revenue from operations rose 13.6 per cent to Rs 3,077 crore, with exports growing 57 per cent. The company also posted robust EBITDA margins of 27.6 per cent for the quarter.
JK Tyre & Industries: The company posted a 44 per cent decline in Q2 net profit, down to Rs 135 crore, due to weak tyre sales in the domestic market and increased rubber costs. The company’s revenue fell by 7 per cent to Rs 3,622 crore, impacted by a slowdown in sales from car, bus, and truck makers.
Gail India: The company reported a 10.2 per cent rise in Q2 FY25 net profit to Rs 2,693.5 crore, driven by strong performance in natural gas transmission and liquefied petroleum gas (LPG) segments. The company’s revenue from operations grew 2.81 per cent to Rs 33,981.3 crore, though its largest revenue segment—domestic natural gas marketing—saw a profit decline of 27 per cent. Gail also recorded capital expenditure of Rs 1,885 crore during the quarter.
Berger Paints India: The company reported a 7.5 per cent decline in Q2 net profit to Rs 270 crore, missing analysts' estimates. The company’s revenue grew marginally by 0.3 per cent to Rs 2,775 crore. The decline in profit was attributed to adverse weather conditions, including higher-than-normal rainfall, and price hikes which dampened demand for its products.
Oil India: The company's net profit for Q2 FY25 surged 3.8 times to Rs 2,016.2 crore, from Rs 420.6 crore in Q2 FY24, aided by a low base effect from last year’s high tax expenses. However, its revenue declined by 7.7 per cent to Rs 8,135.9 crore. The company’s board also approved the formation of joint ventures for compressed biogas projects and city gas distribution in Arunachal Pradesh. An interim dividend of Rs 3 per share was declared for FY25.
Indian Hotels Company: IHCL, the hospitality arm of Tata Group, has approved the acquisition of a 55 per cent stake in Rajscape Hotels for an all-cash deal worth up to Rs 18 crore. The acquisition will enhance its partnership with the Ambuja Neotia Group and is expected to expand the Tree of Life Resorts & Hotels brand to 100 properties by 2030. The deal, which includes 16 boutique properties across India, is expected to close in 90 days.
Sundram Fasteners: The company reported an 8 per cent rise in Q2 net profit to Rs 143.84 crore, driven by strong export growth. The company’s revenue from operations increased by 4.5 per cent to Rs 1,486.04 crore. SFL also announced an interim dividend of Rs 3 per share (300 per cent), to be paid by November 18. The company's performance was aided by increased export sales and a stable commodity price environment.
NTPC: The company's board has approved investment proposals totaling Rs 80,000 crore for thermal power projects with an overall capacity of 6,400 MW. This includes projects in Telangana, Gadarwara, and Nabinagar. NTPC aims to further expand its installed capacity, which stood at 76,443 MW as of September 2024.
Maruti Suzuki: The company’s entry into the electric vehicle market with its first mass-production BEV, the e-Vitara, will be a major move for the company. The e-Vitara is expected to be launched in Europe, India, and Japan in 2025, which could significantly alter the competitive landscape in the EV sector.
Eicher Motors: Royal Enfield's foray into the electric motorcycle market with its upcoming Flying Flea model is poised to disrupt the premium EV segment. With its focus on developed markets like Europe and the US, the company plans to tap into a niche but growing market for high-performance EV motorcycles.