M&M Financial Services, Fortis Healthcare, Welspun Corp, PAGE Industries, and Hindustan Unilever among others shook the most
Indian benchmark equity indices fell for the second consecutive week ended September 23 on weak global sentiments after the US Federal Reserve hiked interest rates by 75 basis points. Steadily rising dollar, rupee hitting fresh low, FIIs selling, interest rate hiked by Bank of England and rise in the US 10-year bond yield were among the other factors weighing on sentiment. In the week gone by, BSE Sensex slipped 741.87 points or 1.26 percent to close at 58,098.92 while the Nifty50 fell 203.55 points or 1.16 percent to end at 17,327.30.
M&M Financial Services | CMP: Rs 194.40 | The stock price fell over 14 percent after The Reserve Bank of India (RBI) on September 22 said M&M Financial Services cannot undertake loan recovery or repossession activity through outsourcing arrangements until further orders. However, the non-banking finance company may continue to carry out recovery or repossession activities through its own employees, said the central bank in a statement. This action is based on certain material supervisory concerns observed in M&M Financial with regard to the management of its outsourcing activities, the regulator added.
Fortis Healthcare | CMP: Rs 262.25 | The scrip was down over 11 percent after the Supreme Court on September 22 continued with the stay on Malaysia’s IHH’s open offer for Fortis Healthcare as it directed the Delhi High Court to consider the issue. The Supreme Court has directed the high court which is considering execution proceedings of the Fortis-IHH deal to consider the issues involved in the case. The court has asked for the executing court to consider the appointment of forensic auditors to examine the transactions involved in the deal. Malaysian major IHH Healthcare acquired a 31 percent stake in Fortis Healthcare in 2018 for $ 1.1 billion through a bidding process. The acquisition triggered a mandatory open offer for IHH to acquire another 26 percent stake in Fortis.
Welspun Corp | CMP: Rs 280.80 | The scrip added over 13 percent last week. The company and its unit Nauyaan Shipyard Pvt Ltd secured some assets belonging to ABG Shipyard Ltd. The pipes manufacturer in an exchange filing said it has paid Rs 659 crore to secure assets belonging to ABG Shipyard which is undertaking an insolvency resolution plan. “We are now pleased to inform that the liquidator of ABG Shipyard Ltd has declared Welspun as a successful bidder…for the private sale of specified assets…under the provisions of the Insolvency & Bankruptcy Code (IBC),” it said in the filing. The company has received the sale certificate in terms of the IBC for transfer of the specified assets.
PAGE Industries | CMP: Rs 53078.15 | The share price was up eight percent in the week gone by. An uptick in consumer consumption and increase in fashion or brand consciousness is making consumers more aspirational and discerning. Going forward, the company expects that the growing urban women population and women corporate workforce present better growth opportunities. The management said tier two and three centres are also becoming an important marketplace for the company given the increased awareness of healthier lifestyle and availability of quality, functional innerwear and athleisurewear.
Hindustan Unilever | CMP: Rs 2682.05 | The stock added six percent last week. FMCG companies are betting big on the festival season by ramping up supply chains, investing in marketing campaigns, and lining up new packs. Managements are also expecting rural demand to make a robust comeback. A recent report by Bizom says India’s FMCG market increased six percent in value in August compared to July, reversing the past three months of consecutive decline. Global brokerage firm Nomura expects HUL’s volumes to grow by four to five percent in the second quarter of FY23. They have a “buy” rating on the stock with a target price of Rs 2,975. “We expect the company to benefit from demand uncoiling in out-of-home categories. And benefits of softening input cost will drive meaningful margin improvement from the third quarter,” it said. Macquarie has an “outperform” rating with a target of Rs 3,000. “Our channel checks suggest steady demand. The demand strength should sustain volume growth momentum. Downside risks to margins are limited,” its analysts said in a note.
KRBL | CMP: Rs 373.20 | The scrip rose six percent after CARE Ratings reaffirmed the ‘CARE A1+’ rating on the commercial paper limits of the company. The ratings agency has reviewed commercial paper worth Rs 500 crore. The reaffirmation of the rating granted to KRBL’s commercial paper instrument continues to draw strength from the experienced promoters with a lengthy track record of operations in the rice business. In both local and foreign markets, the firm has a well-established brand name and market position in the basmati rice sector.
Schaeffler India | CMP: Rs 3240.50 | The share shed eight percent last week. Kotak Institutional Equities downgraded the stock to ‘sell’ from ‘add’ but maintained its target price of Rs 2,600 apiece— an implied downside of 23.98 percent. The brokerage in a note said the strong medium-term growth opportunities are priced in. The company’s growth potential in export market remained optimistic but achieving 19 percent domestic revenue compound annual growth rate (CAGR) over calendar years 2021-35 will be a challenge. Schaeffler India exports industrial bearings to its parent entities.
Delta Corp | CMP: Rs 209.55 | The stock price slipped seven percent after the company denied reports of receiving a casino licence in Daman. The scrip closed Rs 10 or 4.7 percent lower at Rs 215 on the National Stock Exchange (NSE). In an exchange filing on September 16, the company said: “We have been made aware that there are various online articles and social media posts claiming that Daman and Diu has granted casino licences inter alia to Deltin Hotel, Daman.”
Triveni Engineering | CMP: Rs 262 | The scrip was up over six percent in the week gone by. Triveni Engineering and Industries has launched a block deal to sell 11.85 percent stake in industrial steam turbine manufacturer Triveni Turbine, CNBC Awaaz reported on September 20. The company is aiming to raise Rs 875 crore via the block deal sale. Up to 3.82 crore shares are targeted for offloading by Triveni Engineering at a price range of Rs 226.5-229 apiece.
Sandip Das
`); } if (res.stay_updated) { $ (“.stay-updated-ajax”).html(res.stay_updated); } } catch (error) { console.log(‘Error in video’, error); } } }) }, 8000); })
