 "Stocks To Watch: Wipro, HAL, Dmart, Ola Electric, GIC Re, Oberoi Realty")
Stocks to Watch, Monday, October 14, 2024: Markets in India were likely to open with a slight upside on Monday, as indicated by GIFT Nifty futures, which were trading around 50 points ahead of Nifty futures last close, at 25,102, around 6:50 AM.
Meanwhile, here are a few stocks likely to be in focus in today's trading session:
Wipro: The IT company's board is set to discuss the potential issuance of bonus shares during its upcoming meeting on October 16-17, 2024. The company aims for improved execution and growth following a 4.6 per cent year-on-year increase in its Q1 net profit, despite a revenue decline.
Hindustan Aeronautics: The Indian government has approved to upgrade HAL's status to a Maharatna central public sector enterprise (CPSE). The company, on its handle on social media platform X, reposted a tweet by the Department of Public Enterprises, announcing the same.
Reliance Industries: Analysts forecast a challenging quarter for the company due to weak refining margins, with expected profit declines ranging from 1 per cent to 13 per cent from the previous year, although Kotak Institutional sees a modest 2.2 per cent profit rise. Revenue growth is projected to reach a maximum of 4 per cent.
HCL Tech: The IT company is expected to show a modest single-digit increase in both topline and bottomline compared to the same quarter last year. Brokerages note that while its products business may struggle, growth in the services segment could balance the impact. Analysts predict a year-on-year decline in total contract value (TCV).
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Adani Power: In Bangladesh, Adani Power is likely to retain its power purchase agreement despite concerns over pricing. The contract, originally signed in 2017, involves a 25-year deal to supply electricity from a 1,600-MW plant in Jharkhand. While the price per unit is significantly higher than that of other suppliers, cancelling the agreement may not be feasible due to Bangladesh’s reliance on this power source, which meets about 10 per cent of its energy needs. The interim government is reviewing the contract but may only seek a mutual tariff adjustment.
Ola Electric: The company is under scrutiny from the Automotive Research Association of India (ARAI) due to pricing practices related to its S1 X 2 kWh model. The ARAI flagged Ola's failure to notify about a price reduction prior to its 'BOSS' sale, which may affect the model's eligibility for government subsidies.
Life Insurance Corporation of India: LIC has revised the upper age limit for its new endowment plan to 50 years, effective October 1, 2024. This change aligns with updated surrender value guidelines and impacts several of its endowment products, which have seen premium rate increases of 8-10 per cent. Separately, the company has launched a new single-premium group micro-term insurance plan, targeting financial institutions and NGOs. This product could expand LIC's customer base and enhance its market presence in micro-insurance.
Oberoi Realty: The company plans to raise up to Rs 6,000 crore through equity issuance to support its development projects. Recently, it acquired Nirmal Lifestyle Realty, enhancing its portfolio in Mumbai. Oberoi Realty reported a revenue increase of 54.5 per cent in Q1 FY25.
Godrej Properties: The realty firm acquired six land parcels valued at Rs 9,650 crore in Q2, as part of its expansion strategy. With a total of eight new land acquisitions this fiscal year, Godrej Properties has achieved 63 per cent of its annual target. The company reported a 3 per cent increase in sales bookings for Q2, totaling nearly Rs 5,200 crore, the highest ever for this quarter.
Adani Energy Solutions: The Adani group company has signed a 30-year agreement with Kenya Electricity Transmission Company (Ketraco) to develop, finance, and operate key electricity transmission lines and substations in Kenya. This $736 million project aims to enhance Kenya's power infrastructure and mitigate persistent blackouts. AESL will fund the project through a mix of debt and equity, with no financial burden on the Kenyan government. The agreement also entails managing the infrastructure for three decades before transferring ownership to Ketraco.
IREDA: The Indian Renewable Energy Development Agency informed that it has set up a new a wholly-owned subsidiary to focus on retail and B2B renewable energy ventures. In Q2, IREDA reported a 36 per cent increase in profit after tax, amounting to Rs 387.75 crore.
Coal India: CIL's contributions to the government decreased by 0.6 per cent in the first half of FY25, totaling Rs 28,930.27 crore. The company continues to dominate domestic coal production, but its September payments dropped by 11.1 per cent. Despite a production increase of 2.5 per cent, CIL's output fell short of its target for FY24.
Adani Enterprises: The company successfully raised $500 million through a share sale, marking its return to the equity markets after a previous cancellation. The offering was oversubscribed four times, receiving bids of up to $2 billion. Proceeds will fund new energy projects and help repay debts.
GIC Re: The General Insurance Corporation of India received an upgrade in its Financial Strength Rating to 'A-' from 'B++', reflecting its strong balance sheet and improved risk-adjusted capital. This upgrade positions GIC Re for potential growth in its international business starting January 2025.
Jio Financial Services: The company launched an updated version of the JioFinance App, offering a range of financial services and products. The app aims to provide a seamless digital experience for users, featuring loans, a digital savings account, and insurance options.
Macrotech Developers: The company has reported a 14 per cent increase in net debt in Q2FY25, now standing at Rs 4,920 crore, as the company aims to invest in land acquisition and construction. Despite this rise, the company has achieved record sales bookings of Rs 4,290 crore during the second quarter, a 21 per cent increase year-on-year. With a strong growth outlook, Macrotech targets Rs 17,500 crore in sales bookings for the current fiscal year.
Star Health: The company, India’s largest health insurer, is dealing with a cyberattack fallout after a ransom demand of $68,000 was made by a hacker in relation to a customer data leak. The company has initiated legal actions and internal investigations, while also seeking assistance from Indian cyber security authorities to address the breach.
Life Insurance firms: Life insurance companies reported a 14 per cent year-on-year growth in new business premiums for September, totaling Rs 35,020 crore, according to data released by the Life Insurance Council. LIC and private insurers showed positive growth, with individual non-single premiums seeing a significant increase.
ONGC: Oil and Natural Gas Corporation is moving ahead with plans to establish mini-LNG plants across various states in India to evacuate stranded natural gas from there.
Cummins India: With a projected increase in domestic capex and strong demand for diesel generators, Cummins India is well-positioned for growth. The data centre sector's rising power requirements and the company's technological advancements are likely to drive revenue and earnings growth.
Wockhardt: The company received a favorable recommendation from the CDSCO for its novel antibiotic, Miqnaf, which targets community-acquired bacterial pneumonia. This development could lead to final approval for the drug.
Indian Overseas Bank: IOB has launched several Retail Loan Processing Centres in various cities to streamline loan approvals and reduce turnaround times. This initiative, combined with the integration of digital technologies, aims to enhance service efficiency and financial accessibility.
Just Dial: The company has reported a significant increase in consolidated net profit, rising over two-fold to Rs 154 crore for the July-September quarter. This marks a net profit of Rs 71.79 crore during the same period last year. Revenue from operations also saw a growth of 9.3 per cent year-on-year, reaching Rs 284.83 crore. The company is focusing on enhancing digital solutions and has made substantial investments in AI to improve user and vendor experiences.