Bharti Airtel, ITC, TVS Motor Company, DLF, IndiGo, BPCL, Tata Consumer Products stocks in focus

Indian equity markets are likely to open gap down on Wednesday, a day before weekly F&O expiry, amid mixed global cues. Nifty futures were trading 53 points or 0.33% down at 16,216 on Singaporean Exchange signalling that Dalal Street is headed for a negative start. In the previous session, both benchmark indices ended in green with BSE Sensex closing 1344.63 points or 2.5% up at 54,318, and NSE Nifty 50 settling at 16,259. Domestic equity markets, in line with the global equity markets, seem to be in the midst of a perfect storm, displaying an extremely high level of volatility, said analysts. “The markets will continue to remain influenced by incremental news flows related to central bank actions, especially the US Fed, and inflationary trends. In the short-term, there could be some technical pull-backs in the markets, considering the excess pessimism that seems to be floating around and the oversold conditions that we are into.” said Milind Muchhala, Executive Director, Julius Baer India.

Stocks in focus on 18 May, Wednesday

Bharti Airtel: Bharti Airtel on Tuesday reported a 165% growth in consolidated net profit of Rs 2,008 crore in the fourth quarter of FY2021-22 as against Rs 759 crore recorded a year ago partially aided by a higher exceptional item of Rs 906 crore. Consolidated revenues for the second largest telecom company by subscriber base in India rose 22% on-year to Rs 31,500 crore. Gopal Vittal, MD and CEO, India and South Asia, said, the mobile business revenues were up 9.5% as the company saw the full flow-through of tariff increase.

BPCL: India is considering selling up to a quarter of state-run refiner Bharat Petroleum Corp Ltd after failing to attract suitors for the whole firm, two officials said, as the government’s divestment programme moves slower than expected, reported Reuters. New Delhi is considering inviting bids for a 20%-25% stake in BPCL, instead of an outright sale of its entire 52.98% holding, the two government officials, who declined to be named, told Reuters. Initially, the government had aimed to raise $8-$10 billion from selling its full stake in BPCL, but Rosneft and Saudi Aramco did not bid, as low oil prices at that time and weak demand curbed their investment plans. The government officials said even a part sale of BPCL was unlikely to be completed this fiscal year as the process would take over 12 months, said the Reuters report.

TVS Motor Company: TVS Motor Company has announced selling of Intellicar Telematics Pvt Ltd, bought in December 2020, to Fabric IOT Pvt Ltd for Rs 45 crore. The leading two and three-wheeler maker had signed the pact on Tuesday with the Intellicar’s founders Karan Makhija, Shunmuga Krishnan, Sidharth Middela and Fabric IOT Pvt Ltd to divest its entire shareholding as per the terms of the agreement, according to a statement. The seven-year old Intellicar Telematics, provides an integrated IoT (Internet of Things) solution with fleet tracking and predictive maintenance solutions to a range of vehicle types, clocked Rs 17.06 crore revenue for the quarter ended March 31, 2022.

DLF: Realty major DLF on Tuesday reported a 16% decline in its consolidated net profit to Rs 405.33 crore for the quarter ended in March due to lower income. Its net profit stood at Rs 480.94 crore in the year-ago period, the company said in a regulatory filing. Total income declined to Rs 1,652.13 crore during the fourth quarter of the last fiscal from Rs 1,906.59 crore in the corresponding period of the previous year. DLF said that its sales bookings more than doubled to Rs 7,273 crore. Net debt at the end of fiscal stood at Rs 2,680 crore, a 46% on-year reduction.

Tata Consumer Products: Tata Consumer Products, the food and beverage arm of the $103 billion Indian conglomerate, wants to go on an acquisition spree to bolster its position in the country’s competitive consumer goods sector, and is in discussions to buy up to five brands, reported Bloomberg. A “significant amount” of the Mumbai-based firm’s future growth will come from inorganic expansion, Tata Consumer Products’ Chief Executive Officer Sunil D’Souza said in an interview. The firm, which sells Tetley tea and Eight O’Clock coffee, is “engaging seriously” with a number of companies where it sees decent valuations, he said, declining to identify potential targets.

Motilal Oswal: Motilal Oswal Financial Services on Tuesday announced buyback of its 14.55 lakh equity shares at a price of Rs 1,100 per unit for an aggregate amount not exceeding Rs 160 crore. The buyback represents 0.98% of the total paid-up equity share capital of the company as on March 31, 2022, Motilal Oswal Financial Services said in a statement. The company has decided to use tender offer route for acquisition of shares, it said after the board approval. Members of the promoter and promoter group of the company have indicated their intention to participate in the proposed buyback, it said.

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