Once again, the markets encountered significant volatility, closing the last day of the week with a loss of nearly one percent, despite a positive start fuelled by robust global cues. However, the absence of significant negative surprises in Q4 earnings so far, coupled with a decline in oil prices, may help alleviate some of the downside risks. While the correction was broad-based, the large-cap segment notably underperformed due to the selling by Foreign Institutional Investors (FIIs).
News
Share of Coforge decline more than 14% in a week as the company is set to acquire a controlling stake in Cigniti Technologies at a rate of Rs1,415 per share, with the deal expected to be finalized in Q2FY24-25. Coforge reported a year-on-year revenue growth of 8.6% in Q3FY23-24. The company also announced a fourth interim dividend of Rs19 per share for FY23-24. An open offer has been initiated to acquire an additional 26% stake from public shareholders of Cigniti.
Shares of Apollo Hospitals Enterprises Ltd (AHEL) declined more than 8% during Monday's trading session as it gears up for a Rs3,000 crore investment deal with Advent. This decline marks the largest single-day drop since March 2020, amidst the pandemic-induced sell-off. The deal, involving Apollo Health Company Limited (AHCL) (Apollo 24/7) and Keimed, India's prominent wholesale pharmaceutical distributor, will see Advent International invest Rs2,475 crore ($339 million) in equity capital. This investment, divided between Apollo HealthCo (59.2%), Keimed (25.7%), and Advent (12.1%), values the combined entity at an enterprise value of Rs22,481 Crores ($3 billion). Of the total Rs2,475 crore consideration, Rs860 crore will be used for the expansion of AHCL and Rs890 crore will be paid to the parent company AHEL. Advent will invest in compulsory convertible instruments over two tranches in the next 12 months. The capital infusion will facilitate Apollo 24/7's expansion and reduce cash burn, supporting future growth and integrating pharmacy distribution across over 70,000 stores. While the market responded with a drop in AHEL shares, the deal's strategic potential to unlock synergies and drive revenue growth remains significant, despite some concerns about valuation and perceived aggressive expansion.
BSE witnessed a sharp 18% decline in morning trading on April 29th, following Sebi's directive to calculate regulatory fees based on the notional value of its options contracts rather than the premium value.
AdaniConneX, a 50:50 JV between Adani Enterprises (-0.01%) and EdgeConneX, has established India’s largest sustainability linked financing to raise up to $1.44 billion. The financing has an initial commitment of $875 million, with an accordion feature to extend commitment up to $1.44 billion. The transaction elevates AdaniConneX’s construction financing pool to $1.65 billion, building on the maiden construction facility of $213 million executed in June 2023.
Manappuram Finance surged 5.36% on Tuesday to hit a high of Rs207.30 on BSE after their subsidiary Asirvad Microfinance got approval from Sebi for an upcoming IPO. Asirvad Microfinance, a non-banking finance company specializing in microfinance for low-income women, has received the go-ahead to raise funds through this IPO after filing preliminary papers on October 4, 2023. The IPO, set to raise up to Rs1,500 crore, will not include an offer for sale (OFS) component. The company plans to utilize the funds to bolster its capital base for future business needs, as outlined in the DRHP. Established in 2008 with two branches in Tamil Nadu, Asirvad Micro Finance has since expanded to 22 states and 4 UTs, boasting 1,684 branches and serving 32.5 lakh active borrowers primarily in microfinance, alongside services like Loan against Gold and MSME loans.
Adani Total Gas reported only a 4.7% increase in revenue but 71.6% rise in profit. Atul Auto, a significant player in India's three-wheeler market, saw a 10% surge in its stock price to Rs581.90 each during early trade Thursday due to robust sales in April. The company sold 1692 vehicles, a 136.64% increase from the previous year. In FY23-24, it sold 26,039 vehicles, up 1.92% from FY22-23. This led to a strong opening at Rs549.85 with the stock hitting Rs581.90, its highest in seven weeks. The stock has soared by 65% over the past year, from Rs344 to Rs568. The company will announce its financial results on May 17.
New Ventures/ Capacity Expansion
Tata Motors has signed a Memorandum of Understanding (MoU) with South Indian Bank to offer convenient financing solutions to its commercial vehicle customers and dealerships.
Gland Pharma has received approval from the United States Food and Drug Administration (USFDA) for Cetrorelix Acetate for Injection, 0.25 mg/vial, Single-Dose Vial (Product). The Product is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Cetrotide for Injection, 0.25 mg/vial, of EMD Serono, Inc.
Granules India’s wholly owned foreign subsidiary - Granules Pharmaceuticals, Inc (GPI) has received US Food & Drug Administration (USFDA) approval for its Abbreviated New Drug Application (ANDA) for Colchicine Capsules, 0.6 mg.
HCL Technologies (HCLTech) and Cisco have launched Pervasive Wireless Mobility as-a-Service for secure and seamless enterprise-wide connectivity. The service combines HCLTech’s managed network services expertise with Cisco’s Ultra-Reliable Wireless Backhaul (URWB) technology to create a resilient network infrastructure that provides robust connectivity.
Krsnaa Diagnostics has signed the agreement on April 30, 2024, with the Commissioner, Health Services and Mission Director, National Health Mission, Government of Maharashtra for providing MRI and CT Scan Services in the state of Maharashtra in District Hospitals under the Authority.
Wipro has been selected by Nokia to overhaul its employee service desk and provide seamless, real-time IT support to a global network of employees. The Wipro team will build a bespoke AI-powered, cloud-based solution for Nokia’s workforce comprising of around 86,700 users globally in 130 countries of operations.
Gujarat Toolroom (GTL) has successfully acquired 65 acres of land on long-term lease in Gujarat for the establishment of a Hybrid Power Plant. Approximately 60 acres of the acquired land will be dedicated to the installation of solar panels. Each acre is projected to generate 1 Megawatt of energy per hour.
Tata Chemicals has received an approval to raise funds through issuance of Non-Convertible Debentures (NCDs) on private placement basis, for an amount up to Rs2,000 crore.
Bharat Heavy Electricals (BHEL) has entered into a strategic partnership agreement for the Railway Signalling Business with M/s HIMA Middle East FZE, Dubai (A wholly owned subsidiary of HIMA Paul Hildebrandt GmbH, Germany). HIMA is world’s leading solution provider for safety-related automation in the railways and process industries.
Order Wins
Techno Electric & Engineering Company has bagged new orders worth Rs4063 crore in the normal course of business. Its trailing 12-month revenue was Rs1376 crore. The company has received orders from Power Grid Corporation of India, Aparva Energy, Adani Transmission, Millenium Challenge Account (MCA) Nepal, IndiGrid Trust, NERES XVI, Power Transmission, Damodar Valley orporation (DVC) and REC Power Distribution Company.
AVG Logistics has secured a significant contract from a renowned electrical appliance manufacturer.
GRM Overseas (GRM) has received its first order from the Ministry of Agricultural, Fisheries Wealth & Water Resources, Sultanate of Oman, to supply 4,500 MT of Premium basmati rice. The order is worth Rs46.5 crore.
KEC International has secured new orders of Rs1,036 crore across its various businesses. Its Transmission & Distribution (T&D) business has secured orders for T&D projects in Middle East and Americas for setting up Overhead Transmission lines in the United Arab Emirates (UAE) and to supply of towers, hardware and poles in Americas
PSP Projects has bagged work order worth Rs229.54 crore (excluding taxes) in institutional category for Construction of Mall & Multiplex for Thoth Mall and Commercial Real Estate at Surat, Gujarat.
RITES has received a letter of acceptance (LoA) from Bangladesh Railway in connection with supply of 200 Broad Gauge (BG) Passenger Carriages to Bangladesh Railway including Drawing, Parts Catalogue, Capital & Maintenance Spares, Overseas Training, Study Tour, Service Engineers, De-processing and Commissioning etc. The order is expected to be executed in 36 months. Broad consideration or size of the order is $111 million.
KPI Green Energy has received new orders aggregating to 74.30 MW for executing solar power projects. Within this allocation, the company has undertaken 27 MW capacity, which includes 20 MW capacity for the development of Solar power project forming part of the wind-solar hybrid power project.
Rail Vikas Nigam’s (RVNL) joint venture (JV) -- KRDCL- RVNL JV has received Letter of Acceptance (LoA) from Southern Railway for ‘Redevelopment of Thiruvananthapuram Central Railway Station on Engineering, Procurement and Construction (EPC) mode.’ The project cost is Rs438.95 crore.
Rail Vikas Nigam has emerged as the Lowest Bidder (L1) from Eastern Railway for ‘Construction of Sitarampur bye pass line under Asansol Division of Eastern Railway.’ The project cost is Rs391 crore. The project is to be executed within 24 months.
Investments/ Acquisitions/ Mergers/ Stake sale
Uno Minda has raised Rs100 crore through the allotment of 10,000 unsecured, listed, rated, redeemable, non-convertible, non-cumulative, taxable bonds in the nature of Non-Convertible Debentures (NCDs).
ICICI Bank has received approval for fund raising by way of issuances of debt securities including by way of non-convertible debentures (NCDs) in domestic markets upto an overall limit of Rs25000 crore by way of private placement and issuances of bonds/notes/offshore certificate of deposits in overseas markets upto $1.50 billion for a period of one year, from the date of passing of resolution by the Board. The bank reported an 18% growth in net profit for the March quarter.
Patanjali Foods has received a proposal to acquire non-food business from Patanjali Ayurved.
Samvardhana Motherson International has completed acquisition of 73.05% stake (on a fully diluted basis) in Irillic. Irillic is engaged in design, development, manufacturing and distribution of real time Fluorescence Imaging and 4K Laparoscopy Imaging systems.
GMR Airports Infrastructure has entered into a Share Purchase agreement to acquire 4,60,000 equity shares of WAISL (representing 8.40% of the equity shares of WAISL) from Utthishta Virat Fund, an existing shareholder of WAISL, for a total consideration of Rs56.66 crore. WAISL provides consulting expertise in airports system design, integration, implementation, testing and commissioning.
Tata Chemicals has received an approval to raise funds through issuance of Non-Convertible Debentures (NCDs) on private placement basis, for an amount up to Rs2,000 crore. Indian Hotels Company (IHCL) has signed a Ginger branded hotel in Varanasi, Uttar Pradesh. The hotel is a Greenfield project on a fully fitted operating lease.
Landmark Cars has received a Letter of Intent (LoI) from Honda Cars India to acquire existing dealership operations in Jaipur, Alwar and Bhiwadi. These dealerships are owned by the same group in Rajasthan. This acquisition will be undertaken by Landmark Automobiles, a wholly owned subsidiary of Landmark that runs existing operations of Honda Cars.
Jindal Stainless has unveiled major expansion and acquisition plans to augment its melting and downstream capacities, to become one of the largest stainless steel producers in the world. The company announced a three-pronged investment strategy worth nearly Rs5,400 crore to achieve global leadership in stainless steel.
Other Announcements
Maruti Suzuki India had surpassed annual total sales milestone of 2 million units in FY23-24 for the first time.
Earnings
Fedbank Financial Services: Net Sales was Rs408 crore in Q4FY24 up 21% YoY (Rs338 crore). Net Profit was Rs67.7crore in Q4FY24 up 74% YoY (Rs39crore)
Trent: Net Sales was Rs3,298 crore in Q4FY24 up 51% YoY (Rs2,183 crore). Net Profit was Rs712 crore in Q4FY24 up 459% YoY (Rs45 crore).
Tips Industries: Net Sales was Rs63.3 crore in Q4FY24 up 22% YoY (Rs52 crore). Net Profit was Rs25.8 crore in Q4FY24 up 41% YoY (Rs18.3 crore).
KPIT Technologies: Net Sales was Rs1,318 crore in Q4FY24 up 30% YoY (Rs1,017 crore). Net Profit was Rs166 crore in Q4FY24 up 48% YoY (Rs112 crore).
UltraTech Cement: Net Sales was Rs20,419 crore in Q4FY24 up 9% YoY (Rs18,662 crore). Net Profit was Rs2,259 crore in Q4FY24 up 39% YoY (Rs1,670 crore).
Symphony: Net Sales was Rs332 crore in Q4FY24 up 8% YoY (Rs308 crore). Net Profit was Rs48.0 crore in Q4FY24 up 200% YoY (Rs16 crore)
REC: Net Sales was Rs12,677 crore in Q4FY24 up 24%YoY (Rs10,243 crore). Net Profit was Rs4,079 crore in Q4FY24 up 33% YoY (Rs3,065 crore)
Central Bank of India: Net Sales was Rs8,371 crore in Q4FY24 up 17% YoY (Rs7,171 crore). Net Profit was Rs817 crore in Q4FY24 up 38% YoY (Rs592 crore)
Newgen Software: Net Sales was Rs350 crore in Q4FY24 up 23% YoY (Rs283 crore). Net Profit was Rs101 crore in Q4FY24 up 31% YoY (Rs77.2 crore)
Star Health Insurance: Net Sales was Rs3,689 crore in Q4FY24 up 18% YoY (Rs3,131 crore). Net Profit was Rs142 crore in Q4FY24 up 40% YoY (Rs102 crore)
Lloyds Metals: Net Sales was R1,554 crore in Q4FY24 up 77% YoY (Rs876 crore). Net Profit was Rs277 crore in Q4FY24 up 3% YoY (Rs269 crore). But last year’s March quarter was boosted by non-recurring tax write backs.
Skipper: Net Sales was Rs1,154 crore in Q4FY24 up 75% YoY (Rs657 crore). Net Profit was Rs23.9 crore in Q4FY24 up 15% YoY (Rs20.9 crore).
Ramkrishna Forging: Net Sales was Rs1,023 crore in Q4FY24 up 15% YoY (Rs892 crore). Net Profit was Rs93.8 crore in Q4FY24 up 37% YoY (Rs68.4 crore).
Netweb Technologies: Net Sales was Rs266 crore in Q4FY24 up 115% YoY (Rs123 crore). Net Profit was Rs29.7 crore in Q4FY24 up 182% YoY (Rs10.5 crore).
Ambuja Cements: Net Sales was Rs8,894 crore in Q4FY24 up 12% YoY (Rs7,966 crore). Net Profit was Rs1,526 crore in Q4FY24 up 24% YoY (Rs763 crore).
Rane Brake Lining: Net Sales was Rs186 crore in Q4FY24 up 13% YoY (Rs165 crore). Net Profit was Rs15.4 crore in Q4FY24 up 35% YoY (Rs12.0 crore).
Top Gainers and Losers of the major indices for the week are given in the table below:
