As Indian markets open on Thursday, October 17, 2024, the GIFT Nifty index indicated a likely muted start, with a 20-point dip in comparison to Nifty futures’ last close. However, several stocks are expected to be in the spotlight today due to notable developments and earnings reports. Here are the key stocks to watch:
Bajaj Auto
Bajaj Auto reported a significant 31.4% decline in consolidated net profit for Q2 FY25, amounting to Rs 1,385.44 crore. The decline is attributed to a one-time deferred tax payment, which impacted the bottom line. Despite this, the company posted a 22.2% growth in revenue from operations, reaching Rs 13,247.28 crore, driven by strong vehicle sales and a recovery in exports. Bajaj Auto also recorded its highest-ever Ebitda at Rs 2,653 crore, reflecting a 24% year-on-year growth. However, the company missed consensus estimates for profit and revenue in this quarter.
L&T Technology Services (LTTS)
L&T Technology Services reported a modest 1.3% increase in net profit for Q2 FY25, which stood at Rs 319.6 crore. Revenue also grew by 7.8%, reaching Rs 2,572.9 crore. The growth was largely driven by strong demand from the European automobile sector. LTTS has set a revenue growth target of 8-10% for FY25 and aims to improve its profit margins, which currently stand at 15.1%. With continued strong performance in key sectors, LTTS remains a stock to watch.
CRISIL
CRISIL reported a solid 12.86% year-on-year rise in net profit for Q3 2024, which came in at Rs 171.55 crore. Total income increased by 7.9%, reaching Rs 833.2 crore. The company’s board also declared an interim dividend of Rs 15 per share, up from Rs 11 in the corresponding quarter last year. This indicates a strong financial performance for the ratings agency, which continues to benefit from higher demand for credit rating services amid increasing corporate and government borrowing.
Bikaji Foods International
Bikaji Foods has made a strategic investment of Rs 131.01 crore for a 53.02% stake in Hazelnut Factory Food Products, a Lucknow-based café and artisanal sweets brand. This acquisition is aimed at diversifying Bikaji’s product portfolio and establishing a “House of Brands” to strengthen its position in the quick service restaurant (QSR) segment. This move marks Bikaji’s first major investment into the café and sweets business, positioning it as a strong player in the fast-growing QSR market.
Power Finance Corporation (PFC)
Power Finance Corporation’s subsidiary, PFC Infra Finance IFSC, has received approval to operate as a finance company in Gujarat’s GIFT City. This approval allows the subsidiary to focus on lending to the power and infrastructure sectors, expanding PFC’s global reach and supporting India’s ambitions to develop GIFT City into a leading international financial hub. This development is expected to boost PFC’s future growth prospects in the infrastructure financing space.
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Other Noteworthy Stocks
- Reliance Industries (RIL): The company has set October 28, 2024, as the record date for determining shareholder eligibility for its 1:1 bonus share issue. In addition, RIL has been actively filing patents in AI, 5G, and 6G technologies, positioning itself as a leader in tech innovations.
- Infosys, Wipro, Axis Bank, and others: These companies are set to release their Q2 results today. Infosys and Wipro will be closely monitored as the IT sector faces global headwinds.
- Bombay Stock Exchange (BSE): BSE shares dropped over 5% after Jefferies downgraded its rating to ‘underperform.’ The downgrade is due to concerns over new regulatory norms impacting futures and options trading, with Jefferies setting a lower price target of Rs 3,500 per share.
- Vodafone Idea (Vi): Vodafone Idea has initiated plans to deploy 5G equipment with Samsung in six to seven telecom circles. At the same time, it is working to enhance its 4G network, aiming to increase population coverage from 77% to 90% within the next year.
- Titagarh Rail Systems: Morgan Stanley acquired shares worth over Rs 85 crore, gaining a 0.57% stake in the company. On the flip side, Capital Group sold over 7.90 lakh shares, making Titagarh another stock to keep an eye on.
- Jet Airways: The Supreme Court is set to announce a crucial verdict regarding the potential liquidation of Jet Airways. Lenders, led by SBI, are pushing for liquidation, while the Jalan Kalrock Consortium, the successful bidder, is seeking to implement its resolution plan.
- BSNL: Viasat, in collaboration with BSNL, demonstrated direct-to-device satellite connectivity in India, with the potential to enhance messaging services and connectivity in rural areas.
With several high-profile companies reporting earnings and undergoing strategic changes, the Indian stock market remains dynamic. Investors will be closely watching these key stocks, particularly Bajaj Auto, LTTS, CRISIL, and Bikaji Foods, as well as developments in PFC and the telecommunications sector. These stocks are expected to set the tone for trading on Thursday.
