Stocks to Focus: Tata Steel, Cummins, Lemon Tree Hotels, Heritage Foods, SJVN, RR Kabel

Stocks to watch on Thursday, May 30, 2024: Indian markets are expected to open lower, following the global trend. The GIFT Nifty futures indicate a subdued opening, trading 74 points lower than Nifty50 futures at 22,669. In the Asia-Pacific region, Japan's Nikkei 225 fell by 1.73 percent, and the broader Topix index dropped by 1.13 percent. South Korea's Kospi decreased by 0.73 percent, and the small-cap Kosdaq declined by 0.42 percent. Australia's S&P/ASX 200 dipped by 0.55 percent. On the other hand, futures for Hong Kong's Hang Seng index were trading 0.27 percent higher at 18,526 levels.

Tata Steel: The steelmaker's Q4 profit fell by 64 percent year over year to Rs 611.48 crore due to lower steel prices and underperformance in international operations. The company's consolidated revenue dropped by 6.7 percent to Rs 58,687.3 crore. The board approved the issuance of additional debt securities up to Rs 3,000 crore and an infusion of up to $2.11 billion into a wholly-owned subsidiary to repay debt and support restructuring costs at Tata Steel UK.

Cummins India: The company reported a 50 percent year-over-year increase in consolidated net income, reaching Rs 530.5 for the March quarter, driven by strong demand in both domestic and international markets. Revenue totaled Rs 2,319 crore, up 19.9 percent.

Lemon Tree Hotels: In the March quarter of FY24, the company recorded a profit after tax (PAT) of Rs 83.9 crore, an increase from Rs 59 crore in the same period last year. The company's total income for the fourth quarter was Rs 331 crore, up from Rs 254.73 crore in the corresponding period in FY23.

Heritage Foods: The company's profit surged by 126 percent to Rs 40.5 crore, up from Rs 17.9 crore, while revenue increased by 16.3 percent to Rs 950.6 crore, up from Rs 817.6 crore.

SJVN: The company's profit surged by 255 percent to Rs 61.1 crore, up from Rs 17.2 crore. However, its revenue decreased by 4.1 percent to Rs 482.9 crore, down from Rs 503.8 crore. The company also recorded an exceptional gain of Rs 103.84 crore. In addition, SJVN has obtained board approval to sign a Joint Venture Agreement with Indian Oil Corporation to establish a joint venture company for the development of green RTC/renewable projects and other new technology-based projects.

RR Kabel: TPG Asia VII SF Pte Ltd plans to sell its entire 5 percent stake in wire and cable manufacturer RR Kabel through block deals. The company aims to sell 56.33 lakh shares valued at Rs 1,000 crore.

Alkem Laboratories: The company recorded a threefold increase in its consolidated net profit for Q4FY24 to Rs 293.56 crore, driven by the derecognition of deferred tax. The company also achieved a modest year-over-year revenue increase of 1.1 percent for the quarter, totaling Rs 2,935.8 crore.

Jubilant Pharmova: The company's consolidated profit after tax more than doubled to Rs 61 crore in Q4FY24. Total income from operations was Rs 1,773 crore in the fourth quarter, up from Rs 1,683 crore in the year-ago period.

SBI, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, and Indian Bank: S&P Global Ratings has revised its outlook on six Indian banks (State Bank of India, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, and Indian Bank) to Positive from Stable.

MR Airports Infrastructure: The company reduced its net loss to Rs 167.6 crore, a significant improvement from a loss of Rs 638.9 crore the previous year. Revenue increased by 29.5 percent to Rs 2,446.8 crore, up from Rs 1,889.7 crore.

G R Infraprojects: The company recorded a 42 percent increase in profit to Rs 553.1 crore, up from Rs 389.7 crore. Revenue rose by 1 percent to Rs 2,485.1 crore, compared to Rs 2,461.1 crore last year. Additionally, the company reported an exceptional gain of Rs 306.3 crore.

HeidelbergCement India: The company recorded a 37.72 percent increase in net profit, reaching Rs 48.16 crore for the March quarter, supported by a decrease in operating costs. Its total revenue from operations slightly decreased to Rs 596.55 crore during the quarter under review.

Bata India: The company recorded a consolidated net profit of Rs 63.64 crore for the March quarter, marking a 2.98 percent decline from the previous financial year. The shoemaker’s revenue totaled Rs 797.8 crore, reflecting a 2.47 percent increase.

Edelweiss Financial Services: The Reserve Bank of India has imposed business restrictions on two entities of the Edelweiss group, ECL Finance Ltd and Edelweiss Asset Reconstruction Co. Ltd, due to several malpractices discovered during supervisory examinations. The firms have been ordered to cease and desist from undertaking fresh activity with immediate effect.

Capacite Infraprojects: The company announced that its consolidated profit after tax more than doubled to Rs 52 crore for the March 2024 quarter, due to higher income. The company’s total income increased to Rs 608.81 crore in the January-March period from Rs 448.55 crore in the same period a year ago. The board of Capacite Infraprojects will convene on June 3 to discuss raising funds of up to Rs 100 crore through non-convertible debentures on a private placement basis.

Aditya Birla Capital: The company has invested Rs 300 crore in equity shares of Aditya Birla Housing Finance on a rights basis.

360 One WAM: Asset manager 360 One WAM is in discussions with investors to raise a Rs 4,000-crore secondaries fund. The firm is also in discussions to raise a healthcare-focused private equity fund.

RVNL: Rail Vikas Nigam has received a Letter of Acceptance from South East Central Railway for a project worth Rs 38.10 crore.

Great Eastern Shipping Company: Foreign portfolio investor Nalanda India Fund sold 2 million equity shares in Great Eastern Shipping Company at an average price of Rs 1,045.14 per share.

Dredging Corporation of India: The company reported a loss of Rs 23.5 crore, compared to a profit of Rs 27.2 crore last year. However, revenue increased by 4.7 percent to Rs 277.9 crore, up from Rs 265.4 crore.

KFin Technologies: General Atlantic Singapore Fund is likely to sell 4.1 percent stake in KFin Technologies and could get upsized to 6.8 percent. Base issue size is likely to be Rs 500 crore and could get upsized to Rs 833.3 crore. The total deal size, including green size option, is likely to be 1.17 crore shares.

Mishra Dhatu Nigam: The company recorded a 30 percent decrease in profit to Rs 46.3 crore, down from Rs 66.3 crore. However, revenue surged by 17.7 percent to Rs 405.5 crore, up from Rs 344.6 crore.

NOCIL: The company's profit increased by 46.7 percent YoY to Rs 41.5 crore, up from Rs 28.3 crore last year, while revenue decreased by 9.2 percent to Rs 356.5 crore, down from Rs 392.7 crore.

MTNL: The company's loss expanded to Rs 783.7 crore from Rs 748.6 crore last year, while revenue decreased by 4.6 percent to Rs 209 crore, down from Rs 219.2 crore.

Hindustan Oil Exploration Company: The company experienced a 33.8 percent decrease in profit, amounting to Rs 70.6 crore, down from Rs 106.6 crore. However, revenue surged by 71 percent to Rs 330.6 crore, up from Rs 193.4 crore.

RHI Magnesita: The company reduced its loss to Rs 257.9 crore, a significant improvement from a loss of Rs 678.9 crore last year. Revenue increased by 7.8 percent to Rs 943.3 crore, up from Rs 874.8 crore.

MM Forgings: The company announced an 18.2 percent increase in profit to Rs 36.2 crore, up from Rs 30.6 crore. Revenue rose by 2.4 percent to Rs 396.8 crore, compared to Rs 387.4 crore last year.

AGS Transact Technologies: The company reduced its loss to Rs 4.4 crore, a marked improvement from a loss of Rs 15.4 crore last year. However, revenue decreased by 17.8 percent to Rs 349.2 crore, down from Rs 424.7 crore. The board has re-appointed Ravi B Goyal as the Managing Director of the company.

Ion Exchange (India): The company's profit fell by 10.8 percent to Rs 72.5 crore from Rs 81.2 crore, while revenue increased by 20.7 percent to Rs 781.8 crore from Rs 647.5 crore.

Banco Products: The company reported a 33.6 percent jump in profit to Rs 68.2 crore, up from Rs 51 crore. Revenue rose by 19.3 percent to Rs 730.3 crore, up from Rs 612.3 crore.

ISGEC Heavy Engineering: The company's profit fell by 22.6 percent to Rs 72.1 crore from Rs 93.2 crore, while revenue declined by 8.6 percent to Rs 1,868 crore from Rs 2,042.7 crore.

SpiceJet: Engine Lease Finance BV, an engine lessor for troubled airline SpiceJet, has filed a fresh insolvency plea against the carrier. The lessor claims unpaid rental dues totaling more than $16.72 million for eight leased engines.

PNB Housing Finance: Societe Generale purchased 1,308,680 shares of PNB Housing Finance at an average price of Rs 724.55 per share. Additionally, General Atlantic Singapore Fund FII Pte and Asia Opportunities V (Mauritius) each sold 5.8 million shares at Rs 727.47 and Rs 727.26 per share, respectively.