Stocks To Watch: ITC, IndusInd Bank, Mahanagar Gas, Godrej Consumer, NTPC, Axis Bank, Coal India, Patanjali Foods, JSW Energy
GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Friday. Here’s a look at the key stocks to watch in trade.
GIFT Nifty ended down by just 3 points or 0.01% up at 24,456 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended down by 36.10 points or 0.15% to settle at 24,399.40 while the BSE Sensex fell 16.82 points or 0.02% to 80,065.16.
“Markets remained subdued on the weekly expiry day, ending largely flat amid mixed signals. After a brief early gain, the Nifty hovered within a narrow range, closing virtually unchanged at 24,399.40 levels. Sector-wise, the trend was mixed, with gains in banking and pharma, while FMCG, realty, and auto sectors declined. Broader indices also mirrored the benchmark and finished the session flat,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that the past two days of stagnation in the Nifty index reflect indecision following a recent downturn, though the overall sentiment remains negative. Some oversold heavyweight stocks may prompt a short-term bounce, but the upside appears limited. Investors are advised to maintain a “sell on rise” strategy for the index while being selective with individual stocks.
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Stocks to Watch on October 25, 2024
ITC
ITC reported a net profit of Rs 5,078.3 crore for the second quarter of the financial year 2024-25, marking a 3.1% year-on-year (YoY) growth compared to Rs 4,927 crore in the corresponding period last year. The company’s revenue saw a robust surge of 16.8%, reaching Rs 19,327.8 crore, up from Rs 16,550 crore in Q2 FY24.
IndusInd Bank
The private sector lender reported a 39.2% year-on-year (YoY) drop in standalone profit for the second quarter, with net profit falling to Rs 1,325.5 crore from Rs 2,181.5 crore in the same period last year. The bank’s net interest income (NII) grew by 5.3%, reaching Rs 5,347.3 crore compared to Rs 5,076.7 crore YoY.
However, provisions and contingencies surged 87% to Rs 1,820.1 crore from Rs 973.8 crore last year. The bank’s gross non-performing assets (NPA) ratio rose to 2.11% from 2.02% QoQ, while net NPA increased to 0.64% from 0.60% in the previous quarter.
Godrej Consumer Products
The FMCG major reported a 13.5% year-on-year growth in its consolidated net profit for Q2 FY24, reaching Rs 491.3 crore compared to Rs 432.8 crore in the same period last year. The company’s revenue saw a modest increase of 1.8%, rising to Rs 3,666.3 crore from Rs 3,602 crore. EBITDA grew by 7.9% to Rs 759.6 crore, up from Rs 704.2 crore, with margins expanding by 120 basis points to 20.7% from 19.5% in the previous year.
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Mahanagar Gas
An Indian city gas distributor reported a 16.5% year-on-year decline in its net profit for Q2 FY25, with profit after tax falling to Rs 283 crore compared to Rs 339 crore in the same period last year. Despite the drop in profit, the company’s revenue from operations rose by 8.6% to Rs 1,877 crore, up from Rs 1,728 crore, driven by higher sales volumes.
Indian Energy Exchange (IEX)
The company reported a strong 28% year-on-year growth in its standalone net profit for Q2 FY24, reaching Rs 106.1 crore compared to Rs 82.9 crore in the same period last year. Revenue also saw a significant increase of 28.3%, rising to Rs 139.2 crore from Rs 108.5 crore. EBITDA surged by 30.5% to Rs 120.3 crore, up from Rs 92.2 crore, with the EBITDA margin expanding by 140 basis points to 86.4% from 85%.
Cyient
The technology services firm announced its financial results for the second quarter ending September 30, 2024, reporting a 2% year-on-year increase in net profit. The group’s revenue for the quarter rose to Rs 1,826.1 crore, reflecting a 2.6% growth in constant currency terms. Cyient’s Digital, Engineering, and Technology (DET) segment reported revenues of Rs 1,450 crore for Q2 FY25, showing a 2.5% growth quarter-on-quarter, though it recorded a 1.8% year-on-year decline.
NTPC
The state-owned Maharatna power giant reported a 19.6% year-on-year rise in net profit for the September quarter, reaching Rs 4,648 crore, compared to Rs 3,885 crore in the same period last year, according to its exchange filing.
Despite the strong profit growth, the company saw a slight decline in revenue, which dropped 1.3% year-on-year to Rs 40,327.6 crore from Rs 40,875 crore.
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Patanjali Foods
The company reported a 21.4% year-on-year increase in net profit for the second quarter ending September 30, 2024, reaching Rs 309 crore, up from Rs 254.5 crore in the same period last year, according to its regulatory filing. The company’s revenue from operations rose by 4.2%, climbing to Rs 8,154.2 crore compared to Rs 7,821.9 crore in the corresponding quarter of the previous fiscal.
JSW Energy
The Company reported a 2.3% year-on-year increase in net profit for the second quarter ending September 30, 2024, rising to Rs 876.8 crore from Rs 856.8 crore in the same period last year, as per its regulatory filing.
However, the company’s revenue from operations dipped by 0.7% to Rs 3,237.7 crore, down from Rs 3,259.4 crore in Q2 FY24. At the operating level, EBITDA saw a sharper decline of 10.4%, falling to Rs 1,684.9 crore compared to Rs 1,880.4 crore in the year-ago quarter.
Kansai Nerolac Paints
The company has signed definitive agreements with Aethon Developers, a subsidiary of Runwal Developers, for the sale of its land parcel in Lower Parel, Mumbai, along with the building situated on it, for Rs 726 crore.
Axis Bank
The Reserve Bank of India has approved the re-appointment of Amitabh Chaudhry as the Managing Director and CEO of Axis Bank for another three years, effective January 1, 2025.
Jubilant Pharmova
Jubilant Pharma’s subsidiary, Jubilant Pharma Holdings Inc. in the USA, has voluntarily prepaid a term loan of $25 million, approximately Rs 210 crore, using its internal accruals as of October 23. This strategic move underscores Jubilant Pharma’s financial strength and effective management of its debt obligations. Jubilant Pharma is a wholly owned subsidiary of Jubilant Pharmova.
Shriram Properties
Enforcement Directorate officials recently conducted search operations at the company’s office premises in Bengaluru and Chennai. The searches concluded without any significant developments. The company has stated that it provided all necessary clarifications and details requested by the officials, demonstrating full cooperation throughout the process.
Key Earnings To Watch Today
Coal India, JSW Steel, Bharat Petroleum Corporation, Bank of Baroda, Bandhan Bank, Bharat Electronics, InterGlobe Aviation, Aegis Logistics, Balkrishna Industries, Cholamandalam Investment, DLF, Hindustan Petroleum Corporation, IDBI Bank, Inox Wind, Jammu & Kashmir Bank, Krsnaa Diagnostics, Macrotech Developers, NLC India, Nuvama Wealth Management, Poonawalla Fincorp, Praj Industries, Shriram Finance, Texmaco Rail & Engineering, Torrent Pharmaceuticals, and UTI Asset Management
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