Stocks in Focus on August 28: The domestic stock markets ended a tad above the flat line on Thursday, August 27, 2020, with banks leading the gains. Trading was volatile due to monthly F&O expiry. The S&P BSE Sensex, advanced 39.55 points or 0.10% at 39,113.47. The Nifty 50 index gained 9.65 points or 0.08% at 11,559.25. It hit the day’s high of 11,617.35 in early afternoon trade. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday, August 28, 2020. List of such five stocks:
Triggers: There are certain events, like Results Today, Max India Listing, Xchanging Solutions, Healthcare Global, AGM and Ex-dividend, which can create positive/negative reactions in the markets. Find them in detail:
Cash: Career Point, SJVN, Khadim, Rana Sugars, Filatex Ind, Ind Inv Trust, Rico Auto, Kohinoor Foods (Q4FY20), Apex Frozen Foods, Archidply, Inox Wind, Investment Trust of India.
Max India: Max Group will relist its arm Max India on bourses for shares trading today.
Xchanging Solutions: The Board of Directors of the Company is scheduled to meet today to decide on the voluntary delisting proposal.
Healthcare Global Enterprises Ltd: The open offer brought by Acesco Company Ltd to buy 26% stakes in Healthcare Global at Rs 430 crore will close today. The company has plans to buy 3.26 crore shares of Healthcare Global at Rs 130 per share. The Competition Commission has earlier in July given its nod to Aceso Company Pte Ltd’s acquisition of 58.92% stakes in HealthCare Global Enterprises Ltd.
AGM Today: Annual General Meeting of companies, like JK Lakshmi, Manappuram Finance, Crisil, Tata communication, Marico, RITES, is scheduled to be held today.
Ex-Dividend today: Abbot India and South India Paper Mills will turn ex-dividend today. The ex-dividend date for stocks is usually set one business day before the record date. Ex-Dividend
ABBOTINDIA Final Dividend – Rs. – 107.0000
ABBOTINDIA Special Dividend – Rs. – 143.0000
South India Paper Mills Final Dividend – Rs. – 1.5000
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Post Market Results: These companies, NMDC, GMR Infra, Edelweiss, Waterbase, PNC Infratech, Himatsingk and Indag Rubber, have reported their financial results of the first quarter of the financial year 2020-21 (Q1FY21) after the market was closed on Thursday. Find in details:
National Mineral Development Corporation (NMDC): The state-owned iron ore company on Thursday reported a 54.9% year-on-year drop in consolidated profit at Rs 531 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 1,178 crore in the corresponding quarter last year. Revenue from operations dropped 40.6% to Rs 1,937.5 crore as against Rs 3,263.7 crore. The EBITDA stood at Rs 753.7 crore, down 59.6% from Rs 1,865.4 crore posted last year. The margin contracted to 38.9% in Q1FY21 from 57.2% posted in Q1FY20. Besides, the board has given in-principle approval for the proposal to demerge its iron and steel plant in Chhattisgarh.
GMR Infrastructure: The Infrastructure company GMR Infrastructure on Thursday reported a consolidated loss of Rs 834 crore for the quarter ended June 30, 2020, as against a net loss of Rs 335 crore it posted in the corresponding quarter last year. Consolidated revenue from operations dropped 43.1% to Rs 1,134 crore against Rs 1,992 crore posted last year. The company has posted a negative EBITDA stood at Rs 19 crore against a positive EBITDA of Rs 599 crore posted last year. Besides, the Board of Directors of the company has approved proposal to raise funds up to Rs 5,000 crore in one of more tranche(s) through an issue of securities. Besides, the board of the company has also approved the strategic restructuring of its business verticals. It said that the board has approved the demerger of energy and urban transport businesses from the listed GMR Infrastructure Ltd and has plans to list the other entity on the bourses. GMR Infrastructure will be left solely with the airport business. GMR Power Infra Limited and GMR Power and Urban Infra Limited will form part of a new company to be named GPUIL. It will have businesses related to energy, EPC and urban infrastructure under it. Under the scheme, the shareholders will get one share of GOUIL for every 10 shares in GIL as on the record date.
Edelweiss Financial Services: Edelweiss Financial Services on Thursday reported a consolidated loss of Rs 245 crore for the quarter ended June 30, 2020, as against a net profit of Rs 132 crore that he company posted in the corresponding quarter last year. Consolidated revenue dropped 25.5% to Rs 1,898 crore as against Rs 2,549 crore last year. EBITDA stood at Rs 795 crore, down 25.5% from Rs 1,407 crore posted last year. The margin contracted to 41.9% in Q1FY21 from 55.2% posted in Q1FY20. Besides, PAG, among the largest Asia-focussed alternative asset management firm, has agreed to buy a controlling stake in the wealth management and capital markets business of Edelweiss Financial Services. It also includes investment banking. PAG has said that it is paying Rs 2,244 crore to buy 51% stake in these businesses that will be carved out of Edelweiss subsidiary, called Edelweiss Global Investment Advisors.
Waterbase: The manufacturer of shrimp feed Waterbase on Thursday reported a 57% year-on-year decline in standalone profit to Rs 4.9 crore for the quarter ended on June 30, 2020. The company has posted a net profit of Rs 11.4 crore in the corresponding quarter last year. Revenue from operations dropped 47.4% to Rs 62.8 crore as against Rs 119.5 crore posted last year. EBITDA stood at Rs 8.8 crore, down 55.3% from Rs 19.7 crore posted last year. The margin has contracted to 14% in Q1FY21 against the margin of 16.5% posted in Q1FY20.
PNC Infratech: The construction engineering company PNC Infratech on Thursday reported a 48.6% year-on-year decline in consolidated profit at Rs 91.7 crore for the quarter ended June 30, 2020. It had posted a consolidated profit of Rs 178.5 crore in the corresponding quarter last year. Consolidated revenue dropped 28.3% to Rs 1,092.8 crore against Rs 1,524.5 crore posted last year. EBITDA stood at Rs 287 crore, down 18.2% from Rs 351 crore. The margin grew to 26.3% in Q1FY21 against 23% posted last year.
Himatsingka Seide: The home textile company has reported a consolidated loss of Rs 140 crore for the quarter ended June 30, 2020, as against a net profit of Rs 45 crore the company has posted in the same quarter last year. Revenue from the operations dropped 71.9% to Rs 179.4 crore in Q1FY21 against Rs 639.5 crore the company posted in Q1FY20. The company has reported a negative EBITDA of Rs 85 crore against positive EBITDA of Rs 138.3 crore posted last year.
Indag Rubber: Indag Rubber on Thursday reported a consolidated loss of Rs 0.3 crore for the quarter ended June 30, 2020, as against a net profit of Rs 3 crore it posted in the corresponding quarter last fiscal. Consolidated revenue from operations dropped 46.8% to Rs 26.7 crore as against Rs 50.2 crore posted in a year-ago period. EBITDA stood at Rs 0.2 crore, down 95.5% from Rs 4.4 crore posted last year. The margin contracted to 0.7% in Q1FY21 from 8.8%.
Hindustan Aeronautics Limited (HAL): Offer for Sale (OFS) will open for retail investors today. The non-retail portion of Hindustan Aeronautics’ Offer for sale (OFS) that opened for subscription on Thursday was subscribed 1.3 times. Government has decided to sell up to 15% stakes in Hindustan Aeronautics through an offer for sale (OFS). The floor price has been fixed at Rs 1,001 per equity share of the company.
Rating Upgrade: YES Bank + Wockhardt
Yes bank: CRISIL has upgraded Yes Bank’s Commercial Deposit and raised the ratings from A2 to A2+. The rating has been improved due to improved liquidity and deposits. Besides, India Ratings has increased the bank’s long-term issuer rating from BB- to BBB.
Wockhardt: CARE Ratings has raised long term banking facility rating from BB + / credit watch to BBB- / Stable. Short term bank facility rating increased from A4 + / credit watch to A3.
Allcargo Logistics: The board has considered the delisting proposal and has appointed Inga Ventures as the merchant banker. After receipt of the due diligence report from the merchant banker, the board will meet again to discuss the delisting proposal in detail.