Stocks To Track: Tata Chemicals, Poonawalla Fin Crop, Trent, IOCL, BSE Among Top Stocks To Watch Today- Check Global Cues And GIFT Nifty (image source: iStock)
Stocks To Watch: Tata Chemicals, Poonawalla Fin Crop, Trent, IOCL, BSE stocks to remain in focus on Tuesday.
Stock Market Today: GIFT Nity on Tuesday at 9:05 am was by 37 points or 0.16 per cent at 22,802. The index hinted at a flat start for D-Street.
Global Cues: US stocks closed higher, buoyed by Tesla and Apple shares, as investors awaited insights into the Federal Reserve’s interest rate stance following its upcoming policy meeting. The Dow Jones Industrial Average climbed 146.43 points, or 0.38 per cent, reaching 38,386.09. The S&P 500 index advanced 16.21 points, or 0.32 per cent, closing at 5,116.17, while the Nasdaq Composite rose 55.18 points, or 0.35 per cent, ending the day at 15,983.08.
Stocks To Watch
Tata Chemicals
Tata Chemicals, a subsidiary of the Tata Group, faced a challenging quarter with a reported net loss of Rs 850 crore for the January–March FY24 period. This represents a significant downturn compared to the profit of Rs 709 crore recorded in the corresponding period of the previous fiscal year. The company attributed the loss primarily to a non-cash write-down of assets amounting to Rs 963 crore related to its UK operations, specifically the Lostock Plant. This exceptional loss significantly impacted the company’s financial performance. Additionally, revenue from operations witnessed a decline of 21.1 per cent year-over-year, falling to Rs 3,475 crore for the quarter.
Poonawalla Fincorp
Poonawalla Fincorp, a non-banking finance company, reported a standalone net profit of Rs 331.7 crore for the March FY24 quarter, marking an impressive growth of 83.6 per cent compared to the same period last fiscal year. The company’s net interest income also demonstrated robust growth, increasing by 57 per cent year-over-year to Rs 641 crore for the quarter. Notably, asset quality improved during the quarter, with gross Non-Performing Assets (NPAs) decreasing by 17 basis points quarter-on-quarter to 1.16 per cent and net NPAs declining by 11 basis points sequentially to 0.59 per cent.
Trent
Trent, a retail company, witnessed a substantial thirteenfold increase in its consolidated net profit for the March quarter, totalling Rs 704.2 crore. This remarkable surge in profitability was attributed to an exceptional gain of Rs 576 crore resulting from a reassessment of lease liabilities and right-of-use assets. The company’s revenue for the quarter surged by 51 per cent to Rs 3297.7 crore, driven by the addition of 104 new stores. Trent expanded its presence by adding 12 Westside and 86 Zudio stores across 65 cities, including 25 new cities. Additionally, the company reported a significant improvement in operating EBIT margin, reaching 8.2 per cent in Q4 compared to 2.8 per cent in the same period last year.
Indian Oil Corporation
Indian Oil Corporation (IOC) is set to announce its financial results for the quarter ending March 31, 2024. Analysts estimate a 5 per cent sequential increase in revenues, reaching Rs 2.09 lakh crore. However, there is an expected 5 per cent drop in EBITDA to Rs 14,700 crore, with the margin projected to decline by 70 basis points to 7.1 per cent. Analysts also forecast a 6 per cent decrease in the quarter’s profit after tax to Rs 7,571 crore, down from Rs 8,064 crore in Q3FY24.
BSE
Investec has highlighted the impact of a directive from market regulator SEBI on BSE, requiring the exchange to pay regulatory fees based on notional turnover rather than premium. This could result in a cash outflow of Rs 120 crore for past dues on the exchange. Due to the uncertainty surrounding the earnings impact and the high valuation of the stock post-surge, Investec has placed their ‘buy’ rating and target price under review. BSE may need to make a one-time provision of Rs 96.3 crore for the FY24 payment, while the cumulative impact of past volumes from FY07-24 could be around Rs 120 crore, assuming past derivative volumes are options for BSE.
