On the sectoral front, BSE Information Technology index lost 6.5 percent, BSE Telecom index fell 5.8 percent and Nifty Pharma index shed 5.2 percent. However, the BSE Power index added 2.6 percent.
BSE Sensex last week shed 2,185.85 points (3.57 percent) to end at 59,037.18, while the Nifty50 fell 638.55 points (3.49 percent) to close at 17,617.2 levels. Among broader indices, the BSE Midcap index declined 4.3 percent, while Smallcap indices lost 3 percent, after hitting fresh high during the week.
Adani Green | The stock jumped 14 percent last week. The company hit Rs 3 trillion market cap on January 18. It is the first firm in Adani Group to achieve this milestone. According to company’s provisional operational update for the December quarter, sale of energy surged 97 percent to 2.50 billion units versus 1.27 billion units in the same quarter of the previous fiscal year, led by robust performance in both solar and wind portfolios. The company’s total operational capacity increased 84 percent to 5410 mega watt. Solar portfolio capacity utilisation factor (CUF) improved 110 basis points year-on-year to 21.9 percent while wind portfolio CUF improved 10 basis points to 18.6 percent.
TV18 Broadcast | The share price rose 10 percent after the company reported a sharp 35 percent increase in net profit on a sequential basis to Rs 312 crore for the quarter-ended December 2021, powered by a 21 percent YoY rise in ad spend at Rs 263.35 crore. On a yearly basis, the net profit is down 17 percent from Rs 377 crore as there was a tax reversal of Rs 102 crore in the last year quarter, excluding which the profit has increased by 13 percent on-year. Operating revenue was up 20 percent quarter-on-quarter to Rs 1,567 crore and on yearly basis, there was a growth of 15 percent in a stellar period of growth for the television news business. Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
JBM Auto | The scrip was up over 7 percent in the week gone by. JBM Auto announced the acquisition of 51 percent stake in JBM Green Energy Systems Private Limited and JBM EV Industries Private Limited through its subsidiary JBM Electric Vehicles Private Limited. The company’s board also approved a proposal for sub-division of equity shares with face value of Rs 5 into a face value of Rs 2 each as per the record date.
Hero MotoCorp | The stock price added 7 percent last week. The auto maker announced an investment of up to Rs 420 crore in Ather Energy. The two-wheeler major’s board had approved the investment in one or more tranches. Post the investment, Hero’s shareholding is likely to increase by 1-3%, sources have told CNBC TV 18. Although the final stake will only be known after Ather’s Series E Funding round where it’s looking to raise approximately Rs 1,000 crore. The funds will be utilized to expand Ather’s pan India sales footprint. It reported a standalone profit after tax (PAT) of Rs 794 crore, down 17 percent from a PAT of Rs 953 crore in the corresponding quarter last year. On a sequential basis, however, its standalone PAT jumped 117 percent from Rs 365 crore in the last quarter.
Biocon | The share price gained over 5 percent after the biotechnology major reported a 17.68 percent increase in consolidated net profit at Rs 219.6 crore for the third quarter ended December 31, 2021. The company had posted a consolidated net profit of Rs 186.6 crore in the same quarter of the previous fiscal, Biocon Ltd said in a regulatory filing. Consolidated total income in the third quarter this fiscal stood at Rs 2,222.5 crore as compared to Rs 1,885.3 crore in the corresponding period a year ago. Biosimilars vertical clocked revenue of Rs 981.4 crore as compared to Rs 768.9 crore in the same quarter last fiscal, while the generics segment had a revenue of Rs 607.4 crore as against Rs 567.1 crore earlier, the filing said. Brokerage firm Morgan Stanley India upgraded the stock to “outperform” from an “equal-weight” rating. It also raised its price target on the stock by 25 percent to Rs 465, saying the pharma company’s earnings may have reached a point of inflection after three years of single-digit profit growth.
Sterlite Technologies | The stock shed over 23 percent in the week gone by. The broadband technology firm posted a consolidated loss of Rs 137 crore on account of one-time provisioning for dues from a client. The company had posted a profit of Rs 86.64 crore in the same period a year ago. Sterlite Technologies managing director Ankit Agarwal said that the company’s underlying business continues to maintain healthy momentum. Consolidated revenue of Sterlite Technologies grew by 3.69 percent to Rs 1,370.96 crore during the reported quarter from Rs 1,322.09 crore in the corresponding quarter of 2020-21.
Zomato | The share was down 15 percent last week. Recent reports suggest Fed rolling back liquidity amid higher inflation and indicating multiple interest rate hikes this year, have weakened the case for investment in richly priced technology stocks with no near-term visibility on profitability. “Superior growth potential aside, we sniff potential regulations considering the market power and control exercised by online delivery apps at large on gig workers. The shape and form of such regulations are not yet clear, but look quite probable over a medium-to-long-term”, said Edelweiss Research in its November report. “To be sure, markets love Zomato’s delivery story, but in the first few months since listing, its quality of disclosures has been sub-par. If this continues, valuations could take a knock. And also with food delivery apps demonstrating monopolistic nature, Zomato must decisively outdo Swiggy, a well-funded large player chasing it fast in its playfield”, the brokerage added.
HCL Tech | The stock price slipped over 12 percent after the company reported lower-than-expected earnings before interest and taxes and reduced lower-end margins guidance by its management. The management reiterated its double-digit dollar revenue growth guidance (including P&P growth of 0-1 percent YoY), but reduced its margin guidance to the lower end of 19-21 percent band (with a 10-20bp downside buffer). Its attrition rate for the quarter increased to 19.8 percent from 15.7 percent a quarter ago.
Bajaj Finserv | The scrip was down over 10 percent after the firm’s consolidated net profits for the quarter ended December slipped 2.63 percent to Rs 1,256 crore from Rs 1,290 crore in the corresponding quarter last year. Its total revenue from operations rose 10.21 percent YoY to Rs 17,589 crore from Rs 15,959 crore in the same quarter a year ago.
L&T Infotech | The share price shed over 9 percent last week. The firm reported a consolidated profit after tax (PAT) of Rs 612 crore for the quarter ended December 2021, up 18 percent from Rs 519 crore in the corresponding quarter of the last financial year. The company had reported a profit of Rs 552 crore in the September 2021 quarter. Global research firm Morgan Stanley has maintained its underweight call on the stock with target at Rs 6,600 per share.
Sandip Das
