Stocks to watch: HUL, Bata, PVR, Sun Pharma, BHEL and more

Stocks to Watch: Find out which businesses are creating news before the market opens.

Earning results on January 20 will be focused on Reliance Industries, HDFC Life Insurance Company, JSW Steel, LTIMindtree, Union Bank of India, Bandhan Bank, RBL Bank, Aether Industries, Atul, Coforge, DCM Shriram, Heritage Foods, Indian Energy Exchange, JSW Energy, NELCO, Petronet LNG, Ramkrishna Forgings, Shakti Pumps, and Tanla Platforms. Moneycontrol is a subsidiary of the Network18 company. Reliance Industries is the sole benefactor of Independent Media Trust, which owns Network18.

ICICI Bank, Kotak Mahindra Bank, SBI Life Insurance Company, UltraTech Cement, Yes Bank, IDFC First Bank, Dodla Dairy, Meghmani Organics, and Punjab & Sind Bank will report earnings on January 21.

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Hindustan Unilever: The FMCG giant increased standalone profit by 11.7% year on year to Rs 2,505 crore for the quarter ended December FY23, underpinned by revenue from operations that increased by 16.3% to Rs 15,228 crore for the quarter, with domestic volume growth of 5% and higher other income. Profitability was hampered by an unusual loss of Rs 102 crore for the quarter, compared to Rs 66 crore in the previous year. Operating EBITDA climbed 7.9% to Rs 3,537 crore, while margin declined 180 basis points year on year to 23.2 percent in Q3FY23, owing to higher raw material costs. Royalty payments paid by the firm to Unilever Plc have been raised to 3.45% of revenue from 2.65%.

Bata India: Anil Somani has been chosen as the company’s new Chief Financial Officer. He has worked in finance, strategy, compliance, information management, and company development for over 25 years.

PVR: The multiplex chain operator recorded a consolidated profit of Rs 16.1 crore for the quarter ended December FY23, compared to a loss of Rs 10.2 crore in the same time the previous year. Consolidated revenue for the quarter climbed by 53% to Rs 941 crore, with the movie exhibition sector expanding 37% and others (including movie production and distribution) gaining 23.5% year on year. In Q3FY23, EBITDA increased by 75% to Rs 288.8 crore, while margin increased by approximately 4 percentage points to 30.7 percent year on year.

Sun Pharmaceutical Industries will pay $576 million, or $8 per share, to purchase Concert Pharmaceuticals. Concert investors will additionally get a non-tradeable contingent value right (CVR) entitling them to an extra $3.50 per share if deuruxolitinib meets specific net sales goals within certain time frames. Concert is a late-stage biotechnology business that is developing deuruxolitinib, an oral Janus kinase inhibitor of JAK1 and JAK2 for the treatment of alopecia areata, an inflammatory dermatological disorder.

Can Fin Homes: The firm recorded a 31% year-on-year increase in profit of Rs 151.5 crore for the fiscal year ended December FY23, aided by fewer provisions. Net interest income for the quarter increased by 22.23% year on year to Rs 251.71 crore. Asset quality improved in Q3FY23, with gross non-performing assets (NPA) declining by 2 basis points (bps) QoQ to 0.60% and net NPA falling by 5 bps to 0.30%.

Hindustan Zinc: The company’s consolidated profit fell 20.2% year on year to Rs 2,156 crore in the fiscal year ended December FY23, owing to reduced sales, operational income, and increased power and fuel costs. For the quarter, revenue dipped 1.6% year on year to Rs 7,866 crore. In comparison to the previous year, EBITDA plummeted 15.2% to Rs 3,707 crore, while margin fell 760 basis points to 47.1%. For FY23, the business would issue an interim dividend of Rs 13 per share and will acquire worldwide zinc assets from Vedanta by subscribing to THL Zinc shares for $2,981 million.

L&T Technology Services reported a 7.5% sequential increase in profit at Rs 303.6 crore for the December FY23 quarter, with sales up 2.7% to Rs 2,048.6 crore and revenue in dollar terms increasing 0.4% to $248 million. Operating EBIT increased 6.3% sequentially to Rs 382.9 crore, while margin increased 60 basis points to 18.7% for the quarter. Airbus also awarded the business a multi-year contract to provide advanced engineering skills and digital manufacturing services.

Tata Consultancy Services: Bombardier, a Canadian business jet manufacturer, has chosen TCS as its strategic IT partner to help speed its digital transformation and drive innovation.

Bharat Heavy Electricals (BHEL) has received a Rs 300 crore order for the rehabilitation and modernisation (R&M) of steam turbines at Gujarat’s Ukai thermal power facility.

AU Small Finance Bank: The small finance bank’s profit increased by 30% year on year to Rs 392.8 crore for the quarter ended December FY23, owing to higher net interest income and lesser provisions. Net interest income increased by 41% to Rs 1,153 crore for the quarter, but net interest margin fell by 10 basis points year on year to 6.2%. Asset quality improved throughout the quarter, with gross non-performing assets (NPA) as a percentage of gross loans decreasing 9 basis points (bps) QoQ to 1.81% and net NPA falling 5 basis points (bps) QoQ to 0.51%.

IIFL Wealth Management: 360 ONE WAM, formerly IIFL Wealth Management, has reported a 16% year-on-year increase in profit at Rs 180 crore for the quarter ended December FY23, owing to improved operating and top-line performance. Revenue for the quarter increased by 10% year on year to Rs 415 crore. The business declared an interim dividend of Rs 17 per share for FY23, divided each existing equity share with a face value of Rs 2 into two shares with a face value of Rs 1 each, and issued one bonus equity share for every one share retained.

KPI Green Energy: Under its CPP business vertical, the company has announced the commissioning of a 25 MWDC solar power plant for Greenlab Diamonds LLP, Surat. The company also named Salim Yahoo as Chief Financial Officer and announced the distribution of bonus equity shares to members in the ratio of one bonus equity share for every existing equity share.

IndiaMART InterMESH: The company’s profit increased by 61% year on year to Rs 113 crore for the quarter ended December FY23, underpinned by other income that increased by 367% to Rs 102 crore. Revenue from operations increased by 34% year on year to Rs 251 crore, owing to a 24% increase in the number of paying subscription providers and a Rs 10 crore increase in revenue from accounting software services. However, EBITDA fell 11% to Rs 70 crore and margin fell 14 percentage points to 28% in the quarter compared to the previous year.

Jubilant FoodWorks: The master franchise Domino’s Pizza operator aims to build 3,000 Domino’s locations in the next 12-18 months, as well as 40-50 Popeyes India outlets. The capex plan calls for Rs 900 crore to be funded solely through internal accruals over a 12- to 18-month timeframe.