After a day of consolidation, the market resumed northward journey and started off the April series and financial year 2023 on a healthy note by reporting more than a percent of gain on April 1. The broader markets also joined the rally and outperformed frontliners. The Nifty Midcap and Smallcap indices gained 1.5 and 1.7 percent respectively.
Adani Power | The stock price gained over 42 percent in the week gone by. Adani group stocks have been in focus after the company approved an amalgamation scheme for the merger of its six wholly-owned subsidiaries with itself. The board of Adani Power approved the plan for the merger of Adani Power Maharashtra, Adani Power Rajasthan, Adani Power (Mundra), Udupi Power Corp, Raipur Energen, and Raigarh Energy Generation with itself. Adani Power posted consolidated net profit of Rs 218.49 crore in the October-December quarter. The company had incurred a loss of Rs 288.74 crore in the year-ago period. Total income stood at Rs 5,593.58 crore in the quarter versus Rs 7,099.20 crore in the same period a year ago.
Gujarat Alkalies | The share price rose over 16 percent last week hitting a record high. The company announced partial commencement of caustic evaporation unit (CEU) by its joint venture GACL-NALCO Alkalies & Chemicals. GNAL has successfully completed the start-up of the 200 TPD (ton per day) CEU along with boiler and required utilities in the cogeneration captive power plant and has produced 100 MT caustic soda lye (rayon grade 47 percent). The product has been filled in tankers and dispatched. With the above, the CEU has been partially commissioned, the company said in an exchange filing.
INOX Leisure | The scrip added over 10 percent after two of India’s biggest cinema exhibition brands PVR and INOX Leisure announced they would merge their might to deliver an “unparalleled” consumer experience with a network of more than 1,500 screens. Their joint statement indicates that the onslaught of over-the-top (OTT) or streaming platforms had a role to play in the consolidation. After the merger, PVR promoters will own a 10.62 percent stake while INOX promoters will hold a 16.66 percent stake in the combined entity. INOX shareholders will receive three shares in PVR for 10 shares of INOX.
GAIL India | The stock was up nine percent after the board approved a proposal for the buyback of 5,69,85,463 fully paid-up shares representing 1.28 percent of the paid-up share capital from shareholders at a price of Rs 190 per share.
BEML | The stock jumped over 15 percent after CARE assigned CARE A+ rating on the long term bank facilities with a stable outlook. The mining company earlier announced interim dividend of Rs 5 per share for the financial year 2022. The firm also fixed the record date as March 30 for payment of the interim dividend to eligible shareholders.
Hindustan Aeronautics | The share price was up over nine percent last week. The company said it has recorded highest ever revenue of over Rs 24,000 crore (provisional and unaudited) for the financial year ended March, a six per cent growth over the previous fiscal. The figure for the previous year stood at Rs 22,755 crore. Recently, the firm bagged a contract for production of 15 light combat helicopters — 10 for air force and five for army — at a cost of Rs 3,887 crore along with infrastructure sanctions worth Rs 377 crore.
Allcargo Logistics | The stock added nine percent in the week gone by. Allcargo Logistics informed exchanges that it has executed a business transfer agreement with J M Baxi Heavy for sale of project logistics business division as a going concern on a slump sale basis. Further, the consideration mentioned in the agreement is Rs 98.64 crore, said the company in a filing.
Hindalco Industries | The share price was down over eight percent. Hindalco unveiled an $ 8 billion capex plan for the next five years with an investment of $ 4.5-4.8 billion in Novelis, its US subsidiary, and $ 3.4 billion in Indian operations ($ 850 million in 1 mt greenfield alumina, $ 685 million in 180 kt brownfield aluminium). Brokerage firm CLSA downgraded the stock to “outperform” and has cut its target price to Rs 695 from Rs 710 per share. “Unveiled a $ 8 billion capex plan over the next five years. With at least a mid-teen IRR (internal rate of return) expected, execution will be the key. It highlighted headwinds for Novelis which could impact fourth quarter earnings,” said CLSA.
Hero MotoCorp | The scrip slipped five percent last week after the income tax department found alleged illegal business expenses of over Rs 800 crore, Rs 60 crore “unaccounted” cash used to purchase land in Delhi and alleged role of some shell companies after it raided Hero MotoCorp and two other groups, officials said. The raids were launched on March 23, and the country’s largest two-wheeler maker had then said it was extending full cooperation to the tax authorities, who visited its offices in Delhi and nearby Gurugram, apart from the residence of its chairman and CEO Pawan Munjal.
ONGC | The stock price shed over four percent in the week gone by. The government’s 1.5 percent stake sale in ONGC at a floor price of Rs 159 per share got fully subscribed, ensuring Rs 3,000 crore to the exchequer that is to be accounted for in the next fiscal. The offer for sale, which opened for retail investors on Thursday, received bids for over 1.33 crore shares.