Stocks To Watch: SBI, Vedanta, HDFC Bank, Piramal Pharma, Bank of India

Stocks to watch: Piramal Pharma aims to double its revenue to $2 billion by FY30, while tripling its Ebitda, said company Chairperson Nandini Piramal.

Stocks To Watch, Thursday, September 26, 2024: Markets in India were likely to start higher on Thursday, taking cues from global markets, as markets in the Asia-Pacific region surged.

The trend was reinforced by GIFT Nifty futures' that were trading above 26,000, around 50 points ahead of Nifty futures' last close at 25,998.

Meanwhile, markets in the Asia-Pacific region rebounded on Thursday morning, with the Chinese markets expected to continue their upward momentum. 

Hong Kong's Hang Seng index futures were trading at 19,336, ahead of the last close of 19,129.1. 

In Japan, the Nikkei 225 rose 1.7 per cent in early trading, while the broader Topix climbed 1.2 per cent. 

 

South Korea’s Kospi led the region with a 1.77 per cent gain, while Australia’s S&P/ASX 200 gained 0.68 per cent.

Overnight in the US, benchmark indices closed on a mixed note, after S&P 500 and Dow Jones pulled back from their record highs to close lower, while the tech heavy Nasdaq eked out a slight gain.

The S&P 500 declined 0.19 per cent, while the Dow Jones was down 0.7 per cent. The Nasdaq Composite closed with a gain of 0.04 per cent.

Meanwhile, here are a few stocks likely to be in focus on Thursday:

State Bank of India: SBI aims to be the first Indian financial firm to reach a net profit of Rs 1 trillion within the next 3-5 years, said the bank's chairman, C S Setty. With a standalone net profit of Rs 61,077 crore in FY24, a growth of 21.59 per cent year-over-year, the bank is focused on balancing profit growth with customer-centric operations. A robust credit pipeline of Rs 4 trillion from corporate clients is anticipated, particularly in infrastructure sectors.

Vedanta: The company's board will meet on October 8 to discuss a potential fourth interim dividend for FY25. The company has already declared a total dividend of Rs 13,474 crore this financial year, showcasing strong shareholder returns. Vedanta Resources plans to reduce its debt by up to $3 billion over the next three years.

Piramal Pharma: The pharmaceutical firm aims to double its revenue to $2 billion by FY30, while tripling its Ebitda, said company Chairperson Nandini Piramal. The company plans to maintain a net debt to Ebitda ratio of 1x by FY30. Their CDMO segment is expected to grow significantly, driven by increased demand, especially due to the potential impact of the US Biosecure Act.

HDFC Bank: The bank's loan growth may slip below 10 per cent YoY in Q2FY25 due to portfolio management strategies, according to a Macquarie research note. The bank is focusing on reducing its loan-deposit ratio and enhancing net interest margins. Separately, UBS Group bought over Rs 543 crore worth of HDFC Bank shares through an open market transaction, acquiring 30.72 lakh shares at Rs 1,768.05 each. 

Bharti Airtel: The telcom company is rolling out an AI-based solution to detect spam calls and messages, enhancing customer protection and potentially improving customer satisfaction and retention. 

Titan: The company's fragrance division SKINN Fragrances has launched a new affordable line, 24Seven, targeting younger consumers. The company aims to onboard 2.5 million customers by FY25.

Adani Enterprises: Gautam Adani's discussion with Bombardier's CEO about enhancing India’s aviation capabilities, particularly in MRO services and defense, signals potential growth opportunities in the aviation sector. 

SpiceJet: The airline aims to expand its fleet to 100 aircraft by 2026, according to Chairman Ajay Singh. This announcement follows the airline's successful fundraising of Rs 3,000 crore through qualified institutional placement (QIP). Singh cited challenges like the Boeing 737 Max grounding and the COVID-19 pandemic as significant hurdles but expressed confidence in the airline's fundamentals.

Coromandel International: The company announced it will increase its stake in Senegal-based BMCC to 53.8 per cent by acquiring an additional 8.82 per cent for $3.84 million, alongside a loan infusion of $6.5 million for expansion. The investment is crucial as India relies heavily on imported rock phosphate for fertiliser production. Coromandel’s CEO noted that this move will enhance supply security for its operations, supporting its production at the Kakinada Unit.

Shriram Finance: The company has successfully raised $500 million via fixed-rate senior secured social USD notes with a 6.15 per cent coupon. This marks the company’s first USD bond issuance in FY25 and reflects strong demand from investors, achieving a 2.4x subscription. Proceeds from the fundraise will be used towards sustainable income-generating segments, particularly in vehicle finance and MSME financing.

Reliance Power: Rosa Power, a Reliance Power subsidiary, has prepaid Rs 850 crore to Varde Partners, moving closer to achieving zero-debt status. This initiative supports Reliance Power's broader strategy to strengthen its balance sheet while transitioning towards renewable energy. The company plans to eliminate its remaining obligations by the end of the financial year.

Bank of India: The bank has raised Rs 2,500 crore through tier-II bonds at a 7.49 per cent coupon rate, amid a robust demand that saw bids exceeding Rs 6,000 crore. This issuance is part of the bank’s strategy to bolster its capital adequacy ratio, which is expected to rise to 16 per cent. The bank plans further capital raising through additional tier-I bonds and infrastructure bonds in the coming months.

Infosys: The company has partnered with Polestar to create a technology hub in Bengaluru aimed at developing software for electric vehicles, including infotainment and advanced driver assistance systems. 

Biocon: Biocon Biologics, a part of Biocon, reported positive Phase-III clinical study outcomes for its biosimilars of adalimumab and ustekinumab at the EADV Congress 2024. The studies suggest that patients can switch between the biosimilar and reference drugs safely, indicating significant potential for interchangeability and improved patient access to treatments, which could lower healthcare costs.

KPR Mill: SBI Mutual Fund raised its stake in KPR Mill to 7.74 per cent by purchasing an additional 2.85 per cent stake for over Rs 900 crore. This transaction reflects a strategic investment as KPR Mill's promoters reduced their stake, resulting in a decline in the overall promoter holding.