StockAxis Weekly Newsletter May 14, 2022

India’s stock benchmarks extended for the sixth day as well as the fifth week.

Indian Markets

Equity Benchmark Indices log longest weekly losing streak since 2020 dragged by Nifty Metal and PSU Banks. S&P BSE Sensex degrew (-3.72%) to 52,793.62 in the week ending May 14th, while the NSE Nifty50 declined (-3.83%) to 15,782.15.

On the sectoral front, NiftyAuto (-1.01%), NiftyFMCG (-1.05%), NiftyPharma (-1.49%), NiftyIT (-3.56%), outperformed the NSE Nifty50 index and NiftyMedia (-3.73%), NiftyBank (-4.25%), NiftyRealty (-5.81%), NiftyPSUBank (-8.78%), NiftyMetal (-12.41%), underperformed the index.

The India VIX was +10.5% to 23.49.

FIIs/DIIs Daily Cash Market Activity (INR. in Crores)

News Update

Tata Steel: Company has acquired 1,20,00,000, 11.25% Optionally Convertible Redeemable Preference Shares (OCRPS) of face value Rs 10 each of TRF, aggregating to Rs 12 crore, on May 07, 2022. The OCRPS are being acquired to assist TRF in repayment/prepayment of the whole or a part of the existing indebtedness of TRF, payment against long outstanding vendor dues, to seek their support towards material supplies for completing legacy projects and delivering other committed orders and/or for other general corporate purposes. With this acquisition, Tata Steel will hold 1,20,00,000, 11.25% OCRPS representing 100% of the preference share capital of TRF.

Tata Power Company: The company has reported net profit of Rs 1,820.47 crore for the quarter under review as compared to net loss of Rs 117.36 crore for the same quarter in the previous year. Total income of the company increased by 45.53% at Rs 5,016.24 crore for Q4FY22 as compared Rs 3,446.90 crore for the corresponding quarter previous year.On the consolidated basis, the company has reported a rise of 31.41% in its net profit at Rs 632.37 crore for the quarter under review as compared to Rs 481.21 crore for the same quarter in the previous year. Total income of the company increased by 16.85% at Rs 12,219.36 crore for Q4FY22 as compared Rs 10,457.69 crore for the corresponding quarter previous year.

Bajaj Consumer Care: The company has reported a fall of 28.81% in its net profit at Rs 38.37 crore for the quarter under review as compared to Rs 53.90 crore for the same quarter in the previous year. Total income of the company decreased by 8.88% at Rs 229.92 crore for Q4FY22 as compared Rs 252.32 crore for the corresponding quarter previous year.On the consolidated basis, the company has reported a fall of 34.49% in its net profit at Rs 35.82 crore for the quarter under review as compared to Rs 54.68 crore for the same quarter in the previous year. Total income of the company decreased by 10.32% at Rs 228.90 crore for Q4FY22 as compared Rs 255.24 crore for the corresponding quarter previous year.

UPL: The company has reported net profit of Rs 703 crore for the quarter under review as compared to net loss of Rs 132 crore for the same quarter in the previous year. Total income of the company increased by 86.58% at Rs 4,907 crore for Q4FY22 as compared Rs 2,630 crore for the corresponding quarter previous year.On the consolidated basis, the company has reported a rise of 27.48% in its net profit at Rs 1,735 crore for the quarter under review as compared to Rs 1,361 crore for the same quarter in the previous year. Total income of the company increased by 24.38% at Rs 15,977 crore for Q4FY22 as compared Rs 12,845 crore for the corresponding quarter previous year.

SRF: The company has reported a rise of 60.91% in its net profit at Rs 500.49 crore for the quarter under review as compared to Rs 311.04 crore for the same quarter in the previous year. Total income of the company increased by 31.26% at Rs 2808.23 crore for Q4FY22 as compared Rs 2139.37 crore for the corresponding quarter previous year.

Borosil Renewables: Company is planning to invest Rs 1,500 over the next two years to expand its capacity by nearly 2.5 times and supply 15 GW of solar modules by FY25. The company will also invest in its German plant to increase its capacity to 500 TPD (Tonnes Per Day) from 300 TDP now by 2023.With these capacity augmentation, by FY25 the company will be able to supply 2,600 TDP of solar panel glasses that can generate 15 GW of power and make it the largest non-Chinese-owned company in the world. Adding all the domestic expansion will be in and around the company's Baruch facility in Gujarat.

Sun Pharmaceutical Industries: The United States Food and Drug Administration (USFDA) has conducted a Good Manufacturing Practices (GMP) inspection of Sun Pharmaceutical Industries’ Halol facility (Gujarat, India) from April 26 to May 9, 2022.At the conclusion of the inspection, the USFDA issued a Form-483, with 10 observations. The company is preparing the response to the observations, which will be submitted to the USFDA within 15 business days. The company is committed to addressing these observations promptly and also remains committed to working closely with the USFDA and continues to enhance its GMP compliance on an ongoing basis.

Cera Sanitaryware: The board has approved the Project Capex for the expansion of Greenfiled Sanitaryware plant and Brownfield faucetware plant. The present capacity of the Sanitaryware is 25 Lacs pieces p.a. and of Faucetware is 30 Lacs pieces p.a., which will vary from different products produced from time to time.The company will undertake capacity addition in phased manner. After completion of phase 1, the board will review the expansion for phase 2 for both, Sanitaryware and Faucetware. The Board of Directors of the company at their meeting held on May 10, 2022 has approved the same.

Aurobindo Pharma: The United States Food and Drug Administration (US FDA) has inspected Aurobindo Pharma’s Unit VII, an oral manufacturing facility situated at Jedcherla, Hyderabad, from May 2, 2022 to May 10, 2022. At the end of the inspection, the company has been issued a 'Form 483' with six observations. The company will respond to the USFDA within the stipulated timeline and work closely with USFDA to close the observations.

Cipla: The company has reported a rise of 13.50% in its net profit at Rs 476.30 crore for the quarter under review as compared to Rs 419.66 crore for the same quarter in the previous year. Total income of the company increased by 21.14% at Rs 3,262.92 crore for Q4FY22 as compared Rs 2,693.53 crore for the corresponding quarter previous year.

Indian Bank: The bank has reported a fall of 42.40% in its net profit at Rs 984.25 crore for the quarter under review as compared to Rs 1,708.85 crore for the same quarter in the previous year. However, total income of the bank increased by 8.78% at Rs 11,405.17 crore for Q4FY22 as compared Rs 10,485.10 crore for the corresponding quarter previous year.

Coal India: Coal India’s subsidiary Northern Coalfields (NCL) has planned a capital expenditure of Rs 1,900 crore in the current financial year (FY23). To give a boost to infrastructure, most of the capex in the current financial year would be spent on the procurement of heavy earth moving machines (HEMMs), setting up coal handling plants and land acquisition. The company had scaled up its capex to Rs 1,750 crore in FY22, up 7 per cent from the set target of Rs 1,640 crore.

Vodafone Idea: Company has lost 28,18,319 customers in March 2022. Following this, the company’s total customer base has decreased to 26.07 crore with market share of 22.83% in terms of wireless subscribers as on March 31, 2022.

Larsen & Toubro (L&T): The company has reported a rise of 19.97% in its net profit from continuing operations & discontinued operations at Rs 2,901.15 crore for the quarter under review as compared to Rs 2,418.15 crore for the same quarter in the previous year. Total income of the company increased by 9% at Rs 38,142.02 crore for Q4FY22 as compared Rs 34,993.94 crore for the corresponding quarter previous year.

State Bank of India: On the consolidated basis, the bank has reported a rise of 37.46% in its net profit at Rs 9,993.76 crore for the quarter under review as compared to Rs 7,270.25 crore for the same quarter in the previous year. Total income of the bank increased by 4.45% at Rs 108,034.68 crore for Q4FY22 as compared Rs 103,430.64 crore for the corresponding quarter previous year.

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