Coal India, ZEE, Eicher Motors, Hindalco, SAIL, Paytm, and Other Stocks to Monitor

Stocks To Monitor On February 13: Benchmark indexes finished lower on Monday, leading equity markets to give in to profit-booking. Due to corporate results and a number of other happenings, shares of Hindalco, ZEE, Eicher Motors, Coal India, and JSW Energy, among others, will be in focus in today’s session. This is an exhaustive list of stocks to monitor.

Today’s Results

ZEE, Eicher Motors, and Hindalco shares will be closely watched today as the businesses report their third-quarter earnings.

Coal India: The business reported a 17% rise in its consolidated net profit for the quarter that ended on December 31, 2023, to Rs 9,069 crore, up from Rs 7,755 crore during the same period the previous year. In Q3FY24, revenue from operations increased by a meagre 3% year over year to Rs 36,154 crore, compared to Rs 35,169 crore recorded in the same period the previous year. Additionally, a second interim dividend of Rs 5.25 per share for FY24 has been declared by the board.

Eicher Motors: When the company reports its third-quarter results on Tuesday, February 13, it is expected to show strong double-digit net profit growth and high single-digit revenue growth, helped by strong sales volumes in its commercial vehicle portfolio and Royal Enfield bikes. Analyst projections state that Eicher Motors would report consolidated net profit of Rs 959.28 crore, up 29.49% YoY. It is expected that revenue increased by 8.24% to Rs 4,027.74 crore. Additionally, a 319 bps increase to 26.19 percent in EBITDA margin is anticipated.

Steel Authority of India: Compared to the Rs 542.18 crore reported in the same quarter the previous year, the PSU’s consolidated net profit decreased by 22% to Rs 422.92 crore for the December quarter. According to SAIL’s February 12 exchange statement, revenue from operations for the quarter dropped by 6% to Rs 23,348.64 crore from Rs 25,042.10 crore a year earlier. During the quarter, 4.75 million tonnes of crude steel were produced, as opposed to 4.71 million tonnes during the same period the previous year. Additionally, the public sector company announced an interim dividend of Rs 1 for each equity share valued at Rs 10.

Mazagon Dock Shipbuilders: In Q3FY24, the company’s net profit increased 76% year over year to Rs 592 crore. EBITDA rose 71% to Rs 808 crore during the December quarter, while sales jumped 30% YoY to Rs 2,363 crore. From Rs 1.48 crore in the prior year to Rs 1.29 crore in the current quarter, finance expenses decreased. Subcontract costs decreased from Rs 224.69 crore in the same quarter of the prior year to Rs 143.81 crore. The amount spent on other project-related costs decreased from Rs 41.47 crore to Rs 40.58 crore in the preceding year. The business has Rs 38,389 crore in its order book as of December 2023.

Hindalco Industries: During the quarter ended December FY24, the company’s subsidiary Novelis reported net income attributable to common shareholders of $121 million, a 10-fold increase over the $12 million recorded in the same period the previous year. For the third quarter of the fiscal year 2024, net sales dropped 6% YoY to $3.9 billion, mostly due to lower average aluminum prices even though shipments were in line with previous years.

Aurobindo Pharma: As a result of several red flags raised by the US drug regulatory agency FDA in the recently concluded inspections, the company expects a $20 million hit in the January–March 2024 quarter. This is due to a temporary pause of manufacturing and distribution activities at its vital Eugia Unit–III formulation facility in Telangana. According to the corporation, it intends to gradually recommence production, beginning with non-aseptic lines. At the end of the inspection on February 2, the FDA issued Form 483 with nine observations against the facility. The business stopped producing at several lines out of “abundant caution.” During its Monday results call, the business said that the findings are connected to specific deficiencies in the “aseptic process and documentation.”

Dilip Buildcon: Despite strong topline and operational performance, the construction and infrastructure development business reported a 3.3% year-over-year fall in consolidated profit at Rs 107.4 crore. Operating revenue for the quarter was Rs 2,876.8 crore, up 23.87% from the same time last year.

Paytm: Governor of the Reserve Bank of India (RBI) Shaktikanta Das said on Monday that the central bank’s action against Paytm Payments Bank would not be reviewed and that the decision was made after careful thought and a thorough examination of the lender’s operations. Citing widespread regulatory non-compliance and supervisory concerns, the RBI on January 31 had ordered PPBL to cease taking deposits or top-ups in user accounts, wallets, FASTTags, and other instruments after February 29. Following a meeting of the RBI’s central board of directors, Das said at a news conference, “At the moment let me say very clearly, there is no review of this decision.” Nirmala Sitharaman, the finance minister, also spoke to the group.

Bandhan Bank: Two persons with knowledge of the issue stated that EY, one of the Big Four accounting firms, is doing a forensic audit of a component of Bandhan Bank’s loan book that is backed by government guarantees. The National Credit Guarantee Trustee Co. (NCGTC), a state-run organization that oversees and administers a number of government credit guarantee trust funds, requested the audit. It will pay off almost Rs 23,000 crore in debts from Bandhan Bank. The NCGTC has requested EY to investigate if the bank utilized two separate government guarantees for the same set of loans, detect window-dressing or evergreening of loans, determine whether the loans were not eligible for government programs, and locate any phony borrowers.

Jindal Steel & Power: The business recently had its environmental proposal to build a $2 billion iron ore mine in South Africa denied. When contacted by Bloomberg, Parshant Kumar Goyal, general manager of mining and business development at Jindal Africa, said that the firm will appeal the ruling. An environmental legal group called All Rise stated in a statement on Monday that the application was turned down because of “extensive gaps in the environmental impact assessment in the context of constitutional rights.”