The market extended a strong rally for the second consecutive session with the benchmark indices closing at a nearly three-month high on July 28, the monthly expiry day for July F&O contracts. The rally was backed by buying across sectors after Federal Reserve hiked interest rates by 75 bps, which was on expected lines. The BSE Sensex jumped 1,041.5 points or 1.87 percent to 56,858, while the Nifty50 rose 288 points.
HDFC, NTPC, Sun Pharma, Cipla, Indian Oil Corporation, Ashok Leyland, DLF, Emami, Exide Industries, Nazara Technologies, Piramal Enterprises, CARE Ratings, CarTrade Tech, Cholamandalam Investment, CreditAccess Grameen, Deepak Fertilisers, Easy Trip Planners, 3i Infotech, Great Eastern Shipping, GMR Infrastructure, Godrej Agrovet, Heritage Foods, JK Paper, Mahindra Logistics, Metro Brands, Rain Industries, Route Mobile, Strides Pharma Science, Star Health and Allied Insurance Company, Torrent Pharmaceuticals, VST Industries, and Zydus Wellness will be in focus ahead of June quarter earnings on July 29.
Stocks in Focus
Dr Reddy’s Laboratories
The pharma company recorded a 108 per cent year-on-year growth in consolidated profit at Rs 1,187.60 crore for the quarter ended June 2022, backed by healthy operating performance and higher other income. Revenue grew by 6 percent YoY to Rs 5,215.40 crore in Q1FY23 due to tepid growth in North America and Europe but India growth was strong at 26 per cent YoY.
The company acquired 40 percent stake in Roadcast Tech Solutions Private Limited that offers a logistics platform for the management of last-mile delivery operations. The acquisition cost is Rs 14.98 crore.
Bimal Dayal has resigned as Managing Director and CEO of the company. He has decided to pursue opportunities outside Indus Towers.
TVS Motor Company
The two-and-three-wheeler maker reported a consolidated profit of Rs 296.75 crore for the quarter ended June 2022, against a loss of Rs 14.72 crore in the same period last year, supported by top line and operating performance. Q1FY22 performance was affected by the second COVID wave. Revenue grew by 56 percent YoY to Rs 7,315.70 crore in Q1FY23. The board has approved the issue of non–convertible debentures (NCDs) aggregating up to Rs 125 crore on a private placement basis.
The company has received a contract from Delhi International Airport Limited (DIAL) to develop a hotel at the T3 Terminal of Indira Gandhi International Airport (IGIA). With this, Chalet will enter the north Indian market. The upcoming terminal hotel will be the company’s 9th hospitality property in the country and first in northern India. The hotel will have 350-400 rooms positioned in the 5-star deluxe space. The hotel is expected to be commissioned in FY26 or earlier. Chalet posted a consolidated profit of Rs 28.5 crore for the quarter ended June 2022, against a loss of Rs 41.66 crore in the year-ago period due to the second COVID wave. Revenue from operations grew by 275.2 per cent to Rs 253 crore during the same period.
SBI Life Insurance Company
The life insurance company recorded a 17.78 per cent year-on-year growth in profit at Rs 262.85 crore for the quarter ended June 2022. Net premium income grew significantly by 32.76 per cent YoY to Rs 11,036 crore compared to the corresponding period of last fiscal, but the income from investments came in at negative Rs 6,405.66 crore for the June FY23 quarter against income of Rs 7,409.91 crore YoY.
The company recorded a six per cent year-on-year increase in consolidated profit at Rs 5,593 crore for the quarter ended June 2022, impacted by higher input cost and power and fuel cost. Revenue grew by 35 per cent YoY to Rs 39,355 crore during the same period.
The transport infrastructure consultancy and engineering firm recorded an 85.8 per cent YoY increase in profit at Rs 145 crore for the quarter ended June 2022 and revenue grew by 68.8 per cent to Rs 637 crore during the same period. RITES declared an interim dividend of Rs 4 per share.
Sapphire Foods India
Nippon Life India Trustee bought 21.23 lakh equity shares or a 3.34 per cent stake in the company via open market transactions during January 7-July 26. With this, its shareholding in Sapphire increased to 5.03 per cent, up from 1.69 per cent earlier.
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