Category: Stocks

Tata Technologies declares dividend of ₹10.05, net profit slides 27% to ₹157 crore in Q4

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Technologies Ltd, which provides engineering and product development digital services, on Friday (May 3) reported a 27.4% year-on-year (YoY) decline in net profit at ₹157.2 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter last fiscal, Tata Technologies posted a net profit of ₹216.6 crore, the company said in a regulatory filing. The company’s revenue from operations dipped 7.2% to ₹1,301 crore as against ₹1,402.4 crore in the corresponding period of the preceding fiscal.

Also Read: South Indian Bank Q4 net profit dips 14% to ₹287 crore, NII rises to ₹875 crore

At the operating level, EBITDA declined 1.1% to ₹240 crore, over ₹242.6 crore. EBITDA margin stood at 18.5% in the reporting quarter as compared to 17.3%. EBITDA is earnings before interest, tax, depreciation, and amortisation. In USD terms, total operating revenues were up 1.2% quarter-on-quarter to $156.6 million. Services segment revenues came in at $120.2 million.

The board has recommended a final dividend of ₹8.40 and a special dividend of ₹1.65 per equity share of ₹2 each of the company for the financial year ended March 31, 2024. The dividend, if approved at the Annual General Meeting (AGM), shall be paid or dispatched on or after the third day from the conclusion of the 30th AGM.

Tata Technologies closed a total of 12 large deals in FY24, which included one $50 million plus deal and five deals in the $15 to $25 million range. The company’s customer pyramid has continued to improve, with 2 customers added in the $10-50 million category, 2 in the $5-10 million category, and 3 in the $1-5 million category.

Also, the board has re-appointed Warren Kevin Harris as CEO and Managing Director of the company for a term of three years and six months with effect from September 9, 2024, subject to the approval of the shareholders.

Also Read: Havells beats estimates to post 24% rise in Q4 net profit, declares dividend of ₹6

Warren Harris, Chief Executive Officer and Managing Director said, “I am delighted with the way our business performed in FY24 with revenue growth of 15.9% and a 15% growth in operating EBITDA. In the last 3 years, our revenue from operations has grown at 29% CAGR while operating EBITDA grew at a 35% CAGR.”

The results came after the close of the market hours. Shares of Tata Technologies Ltd ended at ₹1,085.90, down by ₹4.05, or 0.37%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Max Estates shares zoom 7% extending two-day gains to 28%; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Max Estates Ltd rallied 7% to hit a fresh 52-week high of ₹375 apiece on the BSE on Friday after the company announced signing a deal to expand its luxury residential portfolio in Delhi-NCR.

In a filing to the stock exchanges, the leading real estate firm said that it has signed a strategic joint development agreement (JDA) for development of a ₹9,000-crore residential development project in Gurugram, Haryana.

The company has announced that it will execute binding agreements for a potential group housing residential development project.

The residential project will be built on 18.23 acres of land with Gross Development Value (GDV) estimated at over ₹9,000 Crore in Gurugram at the back of 4 million square feet of development area, the company informed the stock exchanges.

The company also stated in the filing that the parcel is contiguous to its existing 11.80 acres of land which is located on the Dwarka Expressway in sector 36 A. The real estate company had previously signed a Joint Development Agreement (JDA) last year at the same location.

The company is also set to launch Delhi NCR’s first Intergenerational residential community in the third quarter of the current annual year (CY24), the project’s GDV Potential has been re-rated to ₹4,000 crore.

The projects have a combined GDV of ₹13,000 crore and comprise an area of 30 in sector 36A on Dwarka Expressway which consolidates the group’s presence in the region as per the release.

The company is likely to sell over 6.4 million square feet of real estate in the area.

“This helps Max Estates consolidate its position (~30 acres) in sector 36A on Dwarka Expressway, which with massive infrastructure upgrade has emerged as a prime luxury residential destination in Gurugram. Both opportunities imply a combined GDV potential over time of INR 13,000+ crore in Gurugram by developing and selling an area over 6.4 million square feet,” Max Estates said in a release.

Rishi Raj, COO, Max Estates mentioned in the release that after the closure of the transaction the portfolio of Max Estates will grow by 50% from 8 million square feet to 12 million square feet of development potential.

“Post closure of this transaction, the portfolio of Max Estates will grow by 50 percent from 8 to 12 million square feet of development potential, which is very well diversified in terms of asset classes (commercial office and residential), geographic footprint (Noida, Delhi and Gurugram) and risk spectrum (delivered and under construction),” Raj said.

Shares of Max Estates were trading 4.85% higher at ₹367.6 apiece on the BSE at 11:50 AM.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coal India shares rise 5%, may hit ₹550 — what’s next for this PSU stock?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of state-run Coal India Ltd., are trading with gains of up to 5% on Friday (May 3), making an intraday high of ₹472.80 apiece on the NSE, even as the company’s March quarter (Q4FY24) earnings missed Street estimates.

Despite the disappointing Q4 numbers, analysts at several brokerage firms have maintained a ‘Buy’ recommendation on the counter. However, CIL’s target prices were slashed on concerns around declining premiums.

Nuvama in its latest note said that coal remains the dominant fuel in the foreseeable future as the world is not yet ready to switch to renewable energy.

Besides, amid disruption in supply of natural gas from Russia; demand has shifted to coal, as an alternative, the brokerage stated.

Nuvama expects Coal India to post a 5% volume CAGR (compound annual growth rate) on improving power demand during FY24–26 estimates to 831 MT. The brokerage has cut its FY25 EBITDA estimates by 2%, factoring in higher employee cost.

“CIL is on its way to increasing its production and evacuation facilities to 1 billion tonnes by FY28. On account of sustained high coal demand, E-auction prices are likely to normalise in FY25,” Nuvama said with a ‘Buy’ rating on the stock. However, it has trimmed its target price to ₹537 per share from ₹561 earlier.

With the premiums sustaining at 65% levels, domestic brokerage house Emkay Global expects concerns around declining premiums alleviating to some extent, and see potential for upgrades to consensus earnings.

“We maintain our estimates for now, as we sense that the market would seek more clarity on accounting treatment from the management,” the brokerage said while suggesting a ‘Buy’ rating and target price of ₹550 per share.

Global brokerage firm Jefferies also has a ‘Buy’ recommendation on the Coal India stock with a target price of ₹520 per share. The brokerage said that a rise in EBITDA and profit after tax includes effect of accounting policy changes for stripping activity costs.

Shares of Coal India are trading 2.41% higher at ₹464.85 at around 12 pm today. The stock has almost doubled over the last 12 months and has gained 20% on a year-to-date basis.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hindalco, Vedanta shares rise as CLSA says demand recovery will support metal prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global brokerage firm CLSA believes that outlook for aluminium is resilient, and that demand recovery will support metal prices. The Indian smelters they believe are well placed. The brokerage is positive on metals space and has issued ‘Buy’ calls on Hindalco Industries and Vedanta.

For Hindalco Industries, CLSA has recommended a ‘Buy’ call and raised its target price to ₹770 from ₹635 per share earlier, suggesting an upside potential of 20% from the stock’s current market levels.

The foreign brokerage has raised Hindalco’s FY24 and FY26 EBITDA estimates by 4% and 13%, respectively, on the back of higher aluminium price assumptions. CLSA also has raised profitability estimate for Novelis slightly.

So both on the domestic business and the Novelis business, the brokerage is fairly positive.

For Anil Agarwal-led mining giant Vedanta, the brokerage said the company is well placed to benefit from commodity upcycle given its diversified exposure.

Vedanta’s efforts to raise capacity and profitability augur well, the brokerage said in a note.

CLSA has a ‘Buy’ rating on the Vedanta stock, with a target price of Rs 430 per share. The stock price target indicates a further upside of 5% from the current market prices.

In an interaction with CNBC-TV18, Mitessh Thakkar of earningwaves.com said, “I like both of them, but in the short term, there could be some pullback happening in Hindalco though Vedanta still looks strong to me. Hindalco, I would be a buyer on this decline in case I can get fresh entry closer to about ₹620-610 zone. That is the buying area. If you get it over, extremely positive to go in here for medium to long term.”

Vedanta shares advanced 1% to trade at ₹415, while the Hindalco Industries stock was at ₹648.70, up 1.13% during Friday’s morning trade.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coforge shares drop 10% after analysts cite concerns on guidance and acquisition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Coforge’s muted results for the January to March 2024 period have led several brokerages to downgrade the stock of the IT solutions firm and cut the target price, expecting a downside of up to 14%.

Coforge shares opened almost 10% lower on May 3, a day after Q4 results were announced. At 9:20 am, the stock traded 7% lower at ₹4,637.95 on BSE.

Once an outperformer, the IT stock has erased 20% of investors’ wealth in 2024 (year-to-date) compared to the benchmark Sensex which has risen 3% during the period. In the one-year period, Coforge shares have given a return of 22%, similar to the gains Sensex has witnessed.

While Coforge’s revenue for the fourth quarter of the fiscal came in line with expectations, margins missed. Following the quarterly results, the company said, “Q4 set us up strongly to deliver robust growth in FY25 with expanded margins.”

It also announced the acquisition of 54% of Cigniti which it believes will help boost its presence in Retail, hi-tech and healthcare. It will not only help it grow to $2 billion by FY27 but also help improve operating margins by 150-200 basis by FY27 itself.

However, brokerages do not seem convinced.

Global brokerage Jefferies has downgraded its rating on the Coforge stock to ‘underperform’ and cut the target price to ₹4,290, implying a potential downside of 14% from the closing price of May 2.

Also Read: Coforge declares dividend of ₹19 per share 

While it noted that the margin was below expectation, it specifically highlighted that the company did not offer growth guidance for FY25 which implies a high level of uncertainty.

In fact, about the Cigniti acquisition, it said, the large acquisition adds another layer of execution risk which warrants a de-rating. It added that imminent qualified institutional placement (QIP) should be an overhang as well. Jefferies has cut its growth estimate by 11-16%.

InCred, too, has downgraded the stock to ‘reduce’ and cut the target price to ₹4,431. It is of the view that Cigniti acquisition drives a 6% cut in FY24-26 earnings per share (EPS) compound annual growth rate (CAGR).

Although acquisition adds capabilities, geography and vertical diversification, the associated dilution outweighs gains from integration, Incred said in its brokerage note.
Citi, meanwhile, has a sell rating on the stock and has cut the target price to ₹4,550 on the back of below its estimated revenue and margin.

The brokerage pointed to focus areas as highlighted by Coforge. It noted that the executable order book has gone up 17.3% in 4QFY24 compared to 20.7% in 4QFY23, even as the revenue is up 13% YoY in constant currency in FY24. It has a decent correlation with revenue growth, the brokerage said. The company’s headcount has gone up 6.5% YoY and a $250 million QIP is likely, it said.

Citi has lowered its FY25 and FY26 estimates by 5%, which is already 15% below FY25 cons EPS, the brokerage said, noting that the acquisition is not factored in.

The brokerage commentary comes on the back of muted Q4 financial results. In dollar terms, the IT company’s revenue rose 1.7% quarter-on-quarter to $286.8 million and was up 1.5% in constant currency terms at ₹2,358.5 crore. The profit after tax (PAT) slipped 6% sequentially to ₹301.1 crore from ₹314 crore in the preceding quarter.

EBITDA, or earnings before interest, taxes, depreciation, and amortization for the quarter under review stood at ₹385.9 crore against ₹395.1 crore in the previous quarter. EBITDA % slipped to 16.4% from 17% in the December 2023 ended quarter.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports Share Price: 90% analysts remain bullish; See target of up to ₹1,782

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Adani Ports & Special Economic Zone Ltd. will be in focus on Friday as a couple of top brokerages raised their price targets and some even retained their bullish outlook after the company reported a healthy performance in the fourth quarter of financial year 2024.

Global brokerage firm Citi has raised its target price on the stock from ₹1,758 per share to around ₹1,782 apiece, implying an upside of nearly 33%. The foreign brokerage said that Adani Ports not only reported a strong fourth quarter numbers but also gave a healthy a FY25 guidance.

Referring to Adani Ports as its top pick, Citi said the company has high quality and dominant underlying business and attractive valuations.

The brokerage in a note said that Adani Ports’ strong capex planned in FY25 not only underlines strong cash flows and balance sheet but also is an indication of intent to accelerate growth.

Another top broking firm Jefferies has maintained a ‘Buy’ recommendation on Adani Ports with an increased share price target of ₹1,640. HSBC finds the stock worth ₹1,560.

Jefferies said that Adani Ports will continue to gain market share; however, its March quarter operating profit or EBITDA was 5% lower than expectations as realisations were a tad lower.

The brokerage said that FY25 volume guidance at 460-480 MT, about 10-14% rise year-on-year, is in line with estimates. It also said that the management commentary was confident on a double digit growth.

HSBC said that Adani Ports’ FY25 guidance implies 10-14% growth, which it believes is achievable. The brokerage forecasts 15% EBITDA CAGR in FY24 to FY27.

Its FY25 EBITDA estimate is 4% above the higher-end of the company’s guidance range.

HSBC said that Adani Ports, India’s largest port operator, has the strongest ports and logistics ecosystem in the Asia transport coverage.

Adani Ports Q4 Update

The company’s Mundra Port handled 180 MMT cargo volume in FY24 and the firm said that it is well placed to cost 200 MMT in FY25.

Adani Ports reported a net profit growth of 76% compared to the year-ago period to ₹2,039 crore in the March quarter. The growth in the company’s bottom-line came despite a one-time loss of ₹373 crore during the quarter.

The firm incurred an expense of ₹215.9 crore with regards to a one-time settlement opted by employees of one of its foreign subsidiaries. It also saw a reclassification adjustment pertaining to transfer of foreign currency translation reserve worth ₹157.8 crore from other comprehensive income to the profit and loss account.

Its topline stood at ₹6,896.5 crore, up 19% for the January-March quarter. For the full financial year 2024, the company reported revenue of ₹26,711 crore.

For FY25, Adani Ports has guided for revenue to be in the range of ₹29,000 crore to ₹31,000 crore.

EBITDA increased by 20.3% year-on-year to ₹4,102 crore. While EBITDA margin expanded by 220 basis points to 58.6% from 58.4% last year.

Adani Ports expects EBITDA for financial year 2025 to be between ₹17,000 to ₹18,000 crore. At the higher end, this will be 13% higher than the ₹15,864 crore the company reported in the previous financial year.

The firm intends to spend between ₹10,500 crore to ₹11,500 crore in FY25 as capital expenditure. Out of the total capex, ₹7,300 crore is earmarked for the Ports business, ₹400 crore for Marine Services, ₹2,300 crore for Logistics and ₹1,500 crore for Decarbonisation.

Shares of Adani Ports ended 1.25% higher at ₹1,341.50 on Thursday. The stock has gained 100% over the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CEAT’s Q4 net profit slides 23% to ₹102 crore, declares dividend of ₹30

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tyre maker CEAT Ltd on Thursday (May 2) reported a 22.7% year-on-year (YoY) dip in net profit at ₹102.3 crore for the fourth quarter that ended March 31, 2024. In the corresponding quarter, CEAT posted a net profit of ₹132.4 crore, the company said in a regulatory filing.

The company’s revenue from operations increased 4.1% to ₹2,991.9 crore as against ₹2,874.8 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA increased 6.5% to ₹391.7 crore in the fourth quarter of this fiscal over ₹367.8 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 13.1% in the reporting quarter as compared to 12.8% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Also Read: Coforge declares dividend of ₹19 per share as Q4 net profit zooms 94%

Arnab Banerjee, MD and CEO of CEAT said, The company ended the year on a positive note, we saw a recovery in volumes in the second half of the quarter in replacement and international markets with stable margins for the quarter and significant improvement in the margins on a full-year basis and expect the positive momentum in Q1 FY25.”

“We have achieved commendable growth, largely attributable to share gain in passenger categories both in 2W and 4W and substantial expansion within the export segment. Overall, our profits & margins grew significantly during the year,” he added.

The board has recommended a final dividend of ₹30, i.e. 300% per equity share of the face value of ₹10 each fully paid up, for the financial year ending March 31, 2024, subject to the approval of the members at the ensuing annual general meeting.

Also Read: Coal India Q4 net profit rises 26% — PSU declares dividend of ₹5 per share

The results came after the close of the market hours. Shares of CEAT Ltd ended at ₹2,620.70, up by ₹57.10, or 2.23% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Block Deal Alert | Carlyle Group likely to sell stake worth ₹1,500 crore in YES Bank tomorrow

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private equity giant Carlyle Group is likely to offload a significant chunk of its stake worth ₹1,500 crore in private lender YES Bank through a block deal scheduled for tomorrow (May 3), sources privy to the developments told CNBC-TV18.

Carlyle, holding an 8.74% stake in YES Bank post-warrant conversion, is reportedly planning the stake sale through an entity named CA BASQUE INVESTMENTS, sources told CNBC-TV18. According to multiple people familiar with the development, Goldman Sachs is likely to be the broker of this deal.

YES Bank reported its earnings for the March quarter. Its net profit came in at ₹454 crore, 124.3% more than the ₹202.4 crore reported in the corresponding period in the previous fiscal. The lender’s net interest income was up 2.3% at ₹2,153.1 crore compared to the fourth quarter of FY23’s ₹2,105.2 crore.

The bank’s gross non-performing assets (NPA) were down 11% at ₹3,982 crore in the March quarter compared to the previous quarter’s ₹4,457.4 crore. The gross NPA% for the fourth quarter was pegged at 1.7% compared to the December quarter’s 2%.

It also reported a 31.4% decline in net NPA at ₹1,329.7 crore in the fourth quarter compared to the ₹1,934.4 crore in the third quarter of the 2023-24 fiscal year. Its net NPA% was at 0.60% compared to the previous quarter’s 0.9%, reflecting improved asset quality metrics.

Shares of Yes Bank Ltd ended at ₹25.44, down by ₹0.73, or 2.79% on the BSE.

Also Read: From reward points to new lounge access rules: Credit card changes to take place from May 1

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow