Stocks in News 20/01/2023

Stocks in news

Stocks in News:Govt vehicles older than 15 years to be scrapped

According to Business Standard, from April 1, all vehicles owned by central and state governments, including buses owned by transport corporations and public sector undertakings, that are older than 15 years will be de-registered and scrapped, according to a notification by the Road Transport and Highways Ministry. The rule shall not apply to the special purpose vehicles (armoured and other specialised vehicles) used for operational purposes for the defence of the country and for the maintenance of law and order and internal security, the notification said. Auto stocks would be in focus

Telecom equipment players in focus

According to Business Standard, shares of related companies, including ITI, Avantel, and Valiant Communications, may react to Union Railway Minister Ashwini Vaishnaw’s comments at the World Economic Forum (WEF) that three years from now, India will be a large telecom equipment exporter.

Sun Pharma acquires Concert Pharma Inc.

According to Business Standard, Sun Pharmaceutical Industries and Concert Pharmaceuticals Inc have executed a definitive agreement under which Sun Pharma will acquire all outstanding shares of Concert through a tender offer for an upfront payment of $8.00 per share or $576 million in equity value. The upfront payment of $8.00 per share of common stock in cash represents a premium of approximately 33 per cent to Concert’s 30-day volume weighted average price.

Vedanta to sell foreign zinc assets to Hindustan Zinc

According to Business Standard, Metals and mining major Vedanta on Thursday said that its board had approved the sale of its international zinc assets in South Africa and Namibia to subsidiary Hindustan Zinc (HZL) for $2.98 billion. In a disclosure to the stock exchanges, Vedanta said the transaction would be an all-cash deal, which would be completed in a phased manner over 18 months.

Jubilant Foodworks shares outlook & capex

According to Business Standard, the quick service restaurant (QSR) company informed the exchanges on Thursday that it plans to open 3,000 Domino’s stores – 250 stores for Domino’s India in the next 12-18 months. It also plans to start 40-50 stores for Popeyes India over the same period. This is planned at a capex of Rs 900 crore.

Adani Ent to list all its businesses over 2026-29

According to Mint, billionaire Gautam Adani’s flagship Adani Enterprises Ltd, which is set to raise Rs 20,000 crore through a follow-on public offer, expects all its business verticals across roads, airports and industries, to achieve the scale for independent listing between 2026 and 2029. Adani Enterprises is the incubation platform of the group, having spun off businesses across ports, transmission, renewables and city gas distribution into separate listed entities. Adani Enterprises’ six core business verticals including primary industry, Adani Wilmar, the fast-moving consumer goods arm, airports, roads, data centres and Adani new industries are exactly where they should be in their journey, said Jugeshinder Singh, chief financial officer, Adani Group.

Surya Roshni secures orders

According to Business Standard, the company has obtained total order amounted to Rs 147.30 crore (including GST) for supply of API- SL coated pipes and bare pipes from Indian Oil Corporation Limited, and Powder Coated GI pipes from GAIL (India) Limited.

Stock in Action

ICICI Lombard General Insurance: ICICI Lombard General Insurance has reported strong earnings for the 9MFY23 on the back of a better-than-industry growth driven by the health insurance segment and the retail agency channel. Its net profit increased by 35% YoY on a lower loss/claims ratio, partially offset by an elevated expenses ratio. Net profit growth in 9M FY23 was healthy at 21.4% YoY even after excluding the one-off item of the reversal of tax provisions. Health insurance was the fastest growing segment for ICICI Lombard led by its retail health agency channel. In Q3 FY23, ICICI Lombard’s health business grew at 47.9%, which was significantly higher than the industry growth of 24.9% in the same period. ICICI Lombard’s Gross Direct Premium Income increased by 20.6% YoY in 9M FY23 compared to the industry growth of 16.2% in the same period, improving its overall market share as of December. The insurer could outgrow the industry and standalone health insurance players because of its continued investments in the retail health distribution network. The management expects the growth to sustain over the next few quarters as the sales force starts getting productive. Positive on ICICI Lombard General Insurance given strong premium growth, lower combined ratio, shift in product mix, better profitability, growing distribution network, and positive guidance on future profits.

IndusInd Bank: IndusInd Bank reported strong 3QFY23 numbers and it came ahead of consensus estimates. NII during the quarter grew by 18.5% YoY at Rs 4500 crore driven by 19.3% yoy growth in loan. NIM at 4.27% up by 17bps YoY. Pre provisioning operating profit during the quarter increased by 11% YoY at Rs 3690 crore. Higher NII resulted in robust PAT growth of 58% YoY and QoQ at Rs 1960 crore. GNPA/NNPA moved by -5bps/+1bps qoq to 2.06%/0.62% due to low slippage from restructured book. Bank’s PCR remained flat at 71% qoq. Its total advances grew by 19% YoY at Rs 2.72 lakh crore and the bulk of the growth came from the vehicle finance portfolio which expanded by 18% while the corporate loan book which grew by 20%. Deposit also grew at healthy rate of 14% YoY to Rs 3.25 lakh crore of which CASA deposits increased by Rs 1.36 lakh crore. After period of re-adjustments, bank is back on growth trajectory. The domain segment of the bank like vehicle and micro finance is expected to witness accelerated growth in seasonally strong Q4. Positive on IndusInd Bank given the strong growth momentum and strong tailwind in Indian banking space.

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