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Best Stocks to Invest for Long Term

Investing your hard-earned income in stocks can be quite challenging. There are thousands of companies across diverse segments to choose from. However, it’s vital that we invest in those enterprises that have a solid business model, strong financial growth, and follow good corporate governance practices. Historical records have proven that investing in such reputed firms over the long term can help us beat inflation and secure our financial goals. In this article, we analyse some of the best stocks to invest in for the long term in India.

Factors to Consider While Looking for Stocks to Invest for Long Term:

  • Company Fundamentals: Evaluate the financial health of all companies, their profitability, competitive advantage, and growth prospects to ensure they have a solid foundation for long-term success.
  • Industry Analysis: Assess the growth potential of the industry a company operates in, market dynamics, and competitive landscape. Investing in sectors with favourable long-term prospects can increase the chances of sustained stock performance.
  • Management Quality: Examine the experience and track record of the company’s management team. Strong leadership and effective execution are crucial for long-term value creation.
  • Valuation: Consider a stock’s valuation relative to its earnings, cash flows, and industry peers. Buying stocks at reasonable prices or at a discount to their intrinsic value improves the potential for long-term returns.
  • Dividends and Shareholder Returns: Look for companies with a history of consistent dividend payments or share buybacks. These factors indicate a commitment to returning value to shareholders and can contribute to long-term total returns.

Stocks to Invest for the Long Term:

Stock5-Year Return
Reliance Industries Ltd. 122.3%
Tata Power Company Ltd. 202.5%
Tata Consultancy Services Ltd. 74.5%
Asian Paints147%
HDFC Bank52.5%
(Returns as of July 24, 2023)

Note: These are not stock recommendations. Please do your own research before investing.

Reliance Industries Ltd. 

Reliance Industries Ltd (RIL) is the largest private-sector corporation in India. The Mukesh Ambani-led conglomerate is primarily involved in the energy, petrochemicals, retail, textiles, telecom, entertainment, and digital services sectors. RIL owns the world’s largest refining hub in Jamnagar (Gujarat), which has a crude processing capacity of 1.24 million barrels per day. 

The company’s subsidiary, Reliance Retail Ventures, is our country’s largest retailer in terms of revenue and profitability. Meanwhile, Reliance Jio is the biggest player in the telecom sector, with a 37% market share and nearly 43 crore subscribers. RIL is currently focusing on dominating the gradually evolving green energy sector. Thus, Reliance’s products and services portfolio touches almost all Indians every day.

Over the past five years (FY19-FY23), RIL’s revenue and net profit have shown an impressive Compounded Annual Growth Rate (CAGR) of 17.25% and 13%, respectively. [In simple terms, CAGR is a measure of the average year-on-year growth rate of a metric over several years.] They have been able to significantly reduce debt during this period. Reliance has cemented its position as a market leader in almost all sectors it operates in.

Tata Power Company Ltd. 

Tata Power Company Ltd is engaged in the generation, transmission, and distribution of electricity across India. It has a total generation capacity of 14,110 megawatts (MW) from thermal, hydro, and renewable power (solar, wind) projects. Since its inception in 1915, Tata Power has developed expertise in executing critical projects and driving green initiatives. The company holds a dominant position in the growing electric vehicle (EV) charging station market in our country.

Going forward, the integrated power company plans to expand its clean & green energy capacity to 80% by 2030. It aims to become carbon neutral by phasing out thermal projects by 2050. Additionally, it plans to construct 1 lakh EV charging stations by 2025. 

Tata Power currently holds a ~41.83% market share in India’s power transmission & distribution sector. Its revenue has grown at a CAGR of 14.76% over the past five years, while net profit has grown at 6.74%. The company has also been maintaining a healthy dividend payout of 31.7%. Based on its recent order wins and top-class project execution capabilities, Tata Power is expected to post good results in the upcoming quarters.

Tata Consultancy Services Ltd. 

Tata Consultancy Services (TCS) is the flagship company of the Tata Group. It is a management and technology consultant, which means that they provide services to other enterprises and government agencies and help them transform the way technology is used. The company’s services include application development, business processing outsourcing (BPO), payment processing, and much more. TCS essentially helps organizations simplify their digital systems and reduce costs.

TCS is almost debt-free. Over the last 5 years, its revenue has grown at a yearly rate of 12.5%. The company’s Return on Capital Employed (ROCE) is the highest amongst its competitors in the IT sector at 59.1%. [It means that for every ₹100 worth of capital employed, TCS earns ₹59.1 on it.] The company has been maintaining a healthy dividend payout of 61.4%. As the flagship company of Tata Group, Tata Consultancy Services has time and again exceeded its targets and is continuing its path as a global leader in the IT industry.

HDFC Bank

Housing Development Finance Corporation (HDFC) was one of the pioneering institutions to receive preliminary approval from the Reserve Bank of India (RBI) to establish a private sector bank. In August 1994, HDFC Bank was incorporated with its headquarters in Mumbai, India. It offers a comprehensive range of banking and financial services, including retail banking, wholesale banking, and treasury operations. Today, it stands as the largest private-sector bank in India. It is a market leader in the credit card business in India. As of 31 March 2023, the bank’s distribution network was at 7,821 branches across 3,203 cities.

The bank’s revenue has grown at a CAGR of 15.09% over the past five years, while net profit has grown at 19.97%. It has been maintaining a healthy dividend payout of 19%. 

HDFC Bank aims to launch more products and services under its ‘Digital 2.0’ drive in the upcoming years.

Hindustan Unilever Ltd. 

Hindustan Unilever Ltd is a consumer goods company headquartered in Mumbai. It is a subsidiary of the UK-based Unilever plc. Foods, drinks, cleaning supplies, toiletries, water purifiers, and other fast-moving goods are among its offerings. The company’s Beauty & Personal Care segment forms a majority of its revenue (42%). This is followed by the Home Care segment (29%) and Food and Refreshment Segment (29%). 

HUL’s revenue has grown at a yearly rate of 11.2% over the past five years, while its net profit has grown at 14.18%. The company is almost debt free. It has also been maintaining a healthy dividend payout of 99.9%.

Now you know some of the best stocks to invest for long term. In conclusion, invest in well-established companies for the long term, and you will understand the magic of the eighth wonder of the world— compounding! You will be safe from short-term market volatility and risks. Develop patience and let your money grow multifold.

Disclaimer: The stocks mentioned in the article are solely for educational purposes. Please do your own research before investing.

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Market News Top 10 News

India Achieves 166GW of Renewable Energy Capacity Till Oct – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

India achieves 166GW of renewable energy capacity till October

India has achieved 165.94 gigawatts (GW) of renewable energy capacity till October, compared to the target of 175GW by the end of 2022. A capacity of 76.13 GW (of renewables) is under various stages of implementation. A 36.44 GW capacity is under various stages of bidding. The Ministry of New & Renewable Energy is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030.

Read more here.

USFDA lists Sun Pharma’s Halol unit under ‘import alert’

The US Food & Drug Administration (USFDA) has placed Sun Pharmaceuticals Ltd’s Halol unit under ‘import alert’. All future shipments of products manufactured at this facility are subject to refusal of admission to the US market until it becomes compliant with Current Good Manufacturing Practice (CGMP) standards. The USFDA has excluded 14 products from this import alert subject to certain conditions.

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JSPL acquires debt-ridden Monnet Power for ₹410 crore

Jindal Steel & Power Ltd (JSPL) has acquired debt-ridden Monnet Power for ₹410 crore through the insolvency route. The transaction for the Odisha-based 1,050-megawatt power asset was completed on Wednesday. The new asset will provide power to JSP’s steel plant in Angul (Odisha).

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HUL to acquire stake in Oziva and Wellbeing Nutrition

Hindustan Unilever Ltd (HUL) will invest in Zywie Ventures and Nutritionalab to enter the ₹30,000 crore health & wellness market. Zywie Ventures sells plant-based supplements under the Oziva brand, while Nutritionalab sells nutritional products under “Wellbeing Nutrition”. HUL will acquire a 51% equity stake in Oziva for ₹264 crore in the first round. The company will also buy a 19.8% equity stake in Wellbeing Nutrition for about ₹70 crore.

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IndusInd Bank signs co-lending pact with SV Credit Line

IndusInd Bank has partnered with SV Credit Line for a co-lending agreement for a ₹500 crore loan exclusively to women borrowers. The agreement will help rural women access affordable loans that can be used for a wide range of economic activities like agriculture, animal husbandry, trading, and local manufacturing. SV Credit Line lends only to women customers. It has a customer base of 3.5 lakh across 10 states and 130 districts.

Read more here.

Power deficit declines from 2% in April to 0.1% in October

The power deficit (or the gap between electricity required and supplied) has fallen from 2% in April to 0.1% in October 2022. The data showed that the deficit was 2,752 million units (units) in April this year, which came down to 124 MU in October. The Compound Annual Growth Rate (CAGR) for electrical energy requirements from 2021-22 to 2026-27 is 6.67% and for peak electricity demand is 6.42%.

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Reliance, Ashok Leyland in talks for engines running on hydrogen

According to an Economic Times (ET) report, Reliance Industries Ltd (RIL) is in advanced talks with Hinduja Group’s Ashok Leyland Ltd (ALL) for the development and supply chain of hydrogen-powered engines. ALL will retrofit an existing fleet of 45,000 trucks with fuel-cell engines so that these vehicles can use green hydrogen instead of diesel. RIL has contracted these trucks to ferry refined products and other marketing goods.

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Protests against Adani port called off, construction resumes at Vizhinjam

Protesters have called off a 130-day-long agitation against the Vizhjinjam seaport for now. The Adani Group resumed construction of the seaport on Thursday, with trucks full of material rolling into the project site. APSEZ will prioritize completing the construction of the 2,960-meter-long breakwater, of which around 1,400 metres have already been completed.

Several fishermen have demanded an end to the construction work and have asked authorities to conduct a coastal impact study in connection with the multi-crore project.

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TCS partners with Barclays to help specially-abled children

Tata Consultancy Services (TCS) and Barclays in India have expanded their partnership to help children with neuro-muscular disabilities become self-reliant. TCS will bring its Virtual Habilitation (VHAB) solution to Bal Kalyan Sanstha in Pune. VHAB is a digital assistive solution that improves the physiotherapy regimen for children with locomotor disabilities due to cerebral palsy or autism. Barclays will provide hardware and equipment support for the project.

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Kalyan Jewellers plans to add 52 showrooms in 2023

Kalyan Jewellers plans to expand its retail footprint by over 30% in the next calendar year by adding 52 showrooms. The expansion will mainly focus on the non-South region, which currently contributes 35% to its Indian business. This project will be fuelled by franchisees. The company operates on Franchise Owned Company Operated (FOCO) model.

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Editorial

Why are FMCG Distributors on Strike?

FMCG distributors in Maharashtra have called for a boycott of Hindustan Unilever Ltd’s products. They have also warned Colgate Palmolive India Ltd of taking strict action after the company failed to respond to their concerns. If the demands proposed by traditional FMCG distributors are not addressed, it could get difficult to buy essential products at our neighborhood stores. In this article, we discuss why distributors have clashed with fast-moving consumer goods (FMCG) firms. 

Why are FMCG Distributors Revolting Against Manufacturers?

For decades, distributors have been the link between manufacturers and retailers. They deliver the milk, bread, eggs, biscuits, snacks, and other essential items to your neighborhood store. These traditional distributors get the products of FMCG companies featured on the shelves of general stores across India, and consumers have a wide variety to choose from. As per reports, they service nearly 90% of the overall retail market in our country.

The Rise of New-Age Wholesale Distributors:

Unfortunately, the Covid-19 pandemic caused a severe blow to their operations. Tens of thousands of distributors were unable to operate due to lockdown restrictions. At the same time, major FMCG companies such as Hindustan Unilever, ITC, Nestle India, Colgate Palmolive India, and others turned to tech-driven organised wholesale distributors. The businesses of JioMart, Udaan, Booker, Metro Cash & Carry, ElasticRun, and Jumbotail have flourished over the past year. 

These firms are backed by global venture capital and private equity firms and thus, have a lot of cash at their disposal. While traditional distributors pay for the goods within 10-15 days (on a credit basis), companies like JioMart pay the manufacturers right away. As a result, FMCG companies prefer new networks and offer huge discounts on their products to wholesale distributors that operate online. 

This ultimately means that new-age distributors can now offer significantly large margins to shop owners in the range of 15-20%. They are able to sell goods at much lower rates. The apps offered by Jiomart and Udaan allow shop owners to get products efficiently. Their margins have improved after buying at lower prices from these firms. Meanwhile, traditional distributors can only provide margins of 7-12%.

What Next?

The All India Consumer Products Distributors Federation (AICPDF), which represents over 4 lakh distributors, is holding talks with FMCG firms on the price disparity of products between traditional and new-age distributors. They feel that the networks established by Jiomart and other such companies are destroying their businesses. The AICPDF had written to firms that new-age business-to-business (B2B) firms are offering products at lower rates to local shops than what they offer, and are now severely affecting their reputation and goodwill.

From January 1, traditional distributors have boycotted or stopped supplying popular FMCG products to Kirana stores. They have warned companies of holding strikes until they promise to give them similar prices and margins as that of the new-age distributors. As per reports, it is unlikely that traditional distributors would completely go out of business. However, the entire industry dynamics would change. 

Let us look forward to seeing how the situation unfolds in the days to come. 

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Market News Top 10 News

Tech Mahindra to Acquire 100% Stake in Allyis Group – Top Indian Market News

Tech Mahindra to acquire 100% stake in Allyis India, Green Investments

Tech Mahindra Ltd has approved a proposal for the acquisition of a 100% stake in Allyis India and Green Investments. The total consideration for the acquisition is $125 million (~Rs 929 crore). Allyis offers technology consulting and managed services that help organizations reduce costs and improve performance. The target entity is headquartered in Seattle, USA, and has more than 660 employees. 

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GST Council defers hike on textiles from 5% to 12%

The Goods and Services Tax (GST) Council has decided to defer the rate hike on textiles from 5% to 12%. The issue will be reviewed at the next meeting in February 2022. Various states had opposed the increase in the tax, citing higher compliance costs for the unorganised sector and micro, small, & medium enterprises (MSMEs). They have also claimed that it will make the ‘poor man’s clothing expensive’.

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SBI to acquire 10% stake in India International Clearing Corporation

State Bank of India (SBI) will acquire a nearly 10% stake in India International Clearing Corporation (IICC). IICC is the first international clearing corporation set up at GIFT-IFSC that acts as a central counterparty providing clearing and settlement and risk management services. It clears and settles index and single stock derivatives, currency derivatives, and debt securities. SBI is expected to acquire a 9.95% stake, subject to a maximum investment of Rs 34.03 crore.

Read more here. 

Cadila Healthcare’s US arm gets USFDA approval to market Pimavanserin capsule

Zydus Pharmaceuticals (USA) Inc. has received tentative approval from the US Food & Drug Administration (USFDA) to market generic Pimavanserin capsules. The drug is used to treat hallucinations and delusions associated with Parkinson’s disease psychosis. It will be manufactured at Cadila Healthcare’s formulation manufacturing facility at Special Economic Zone (SEZ), Ahmedabad.

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FMCG distributors in Maharashtra to boycott HUL products from Jan 1

The Maharashtra Consumer Products Distributors Federation has decided to stop supplying Hindustan Unilever Ltd’s (HUL) kissan range of products from January 1 due to the company’s “refusal to engage with them on their concerns”. A section of bulk dealers and stockists warned of halting the supply of the HUL’s products over better terms offered to large and online peers. HUL said it remains committed to ensuring that distributors earn a fair return on investments. 

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CBI conducts raids at official and residential premises of Dilip Buildcon

A Central Investigation Bureau (CBI) team on Friday conducted raids at officials and residential premises of Dilip Buildcon Ltd (DBL) in Bhopal. The action came after CBI caught an executive director of the company three days ago while trying to give a bribe of Rs 20 lakh to an official of the National Highway Authority of India (NHAI). A senior CBI officer confirmed that five persons, including the Regional Officer of NHAI Bangalore and three officials of DBL, have been arrested.

IDFC First Bank board approves merger with promoter entities

The Board of Directors of IDFC First Bank has favoured the merger of IDFC and IDFC Financial Holding (promoter group) with the bank. The bank’s board has constituted and authorised a Capital Raise and Corporate Restructuring Committee to work on the terms of the proposed merger, including finalising the scheme, valuation, and hiring advisors. IDFC Financial Holding Company Ltd (IDFC FHCL) holds a 36.52% stake in the bank as of September 2021, while IDFC Holds a 100% stake in IDFC FHCL.

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PB Fintech to invest up to Rs 1,000 crore in two subsidiaries

PB Fintech Ltd has approved an investment of up to Rs 700 crore in subsidiary Policybazaar Insurance Brokers Private Ltd during FY22 and FY23. It has also approved an investment of up to Rs 299.99 crore in subsidiary Paisabazaar Marketing and Consulting Private Ltd. The investments will allow both the companies to strengthen their financial health and meet general operating expenses.

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Government sets up multiple task forces for 6G development

The Department of Telecommunications (DoT) has formed as many as six academia-driven task forces under the Technology Innovation Group (TIG) on sixth-generation or 6G technology. DoT mandated immediate deliverables by March 31, 2022, including mapping of 6G activities and capabilities worldwide and a white paper on India’s competencies, including research and pre-standardisation activities.

Read more here.

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Market News Top 10 News

HUL Posts 9% YoY Rise in Net Profit in Q2 – Top Indian Market News

HUL Q2 Results: Net profit rises 9% YoY to Rs 2,187 crore

Hindustan Unilever Ltd (HUL) reported a 9% year-on-year (YoY) increase in net profit to Rs 2,187 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 11.2% YoY to Rs 12,724 crore during the same period. The company’s domestic consumer growth in Q2 was at 11% YoY. Operating margins fell 50 basis points to 24.6%. HUL’s board has approved an interim dividend of Rs 15 per share.

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Bharti Airtel launches Video Platform as a Service offering for OTT firms

Bharti Airtel has announced the launch of a Video Platform as a Service (CPaaS) solution— Airtel IQ Video. The product has been developed by Airtel’s in-house engineering teams. By leveraging Bharti Airtel’s resilient cloud and video technologies, Airtel IQ Video allows businesses to build world-class video streaming products for large and small screens with minimal investment in infrastructure and technology. Raj TV, Eros Now, and CG Telecom of Nepal have already deployed Bharti Airtel’s new solution.

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Nestle India Q3 Results: Net profit rises 5% YoY to Rs 617 crore

Nestle India reported a 5.16% YoY increase in net profit to Rs 617.37 crore for the quarter ended September (Q3 CY21). The company follows the January-December financial year cycle. Net profit increased by 14.63% compared to the previous quarter. Its revenue from operations rose 9.6% YoY to Rs 3,865 crore during the same period. Domestic sales growth stood at 10.1% in Q2. Nestle India’s board has declared a second interim dividend of Rs 110 per share.

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TV18 Broadcast Q2 Results: Net profit rises 86% YoY to Rs 140 crore

TV18 Broadcast Ltd reported an 86.67% YoY increase in consolidated net profit to Rs 140 crore for the quarter ended September (Q2 FY22). Net profit increased by 41.3% compared to the previous quarter. Its revenue from operations rose 29% YoY to Rs 1,309 crore during the same period. TV18 Broadcast (a subsidiary of Network18) runs the largest news network in India, spanning business, general, and regional news channels.

Meanwhile, Network18 Media & Investments reported a 307.7% QoQ jump in consolidated net profit to Rs 39.02 crore in Q2 FY22. The company had posted a net loss of Rs 9.47 crore in the corresponding quarter last year (Q2 FY21). Total income rose 13.12% QoQ (or 29.73% YoY) to Rs 1,392.35 crore in the July-Sept quarter of FY22.

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Aurionpro signs agreement to increase stake in SC Soft to 80%

Aurionpro Solutions Ltd has announced the signing of an agreement for the acquisition of a further stake in its subsidiary, SC Soft Pte Ltd. The transaction involves the acquisition of a 29% stake in SC Soft from existing shareholders in various tranches. In 2018, Aurionpro Solutions had acquired a 51% stake in SC Soft, a technology company that specialises in automated fare collection and payment solutions for mass transportation. 

DCM Shriram Q2 Results: Net profit rises 33.2% YoY to Rs 159 crore

DCM Shriram Ltd reported a 33.2% YoY increase in consolidated net profit to Rs 159 crore for the quarter ended September (Q2 FY22). Net profit rose 0.23% compared to the previous quarter. The chemical manufacturer’s total income rose 6.49% YoY (or 8.57% QoQ) to Rs 2,198.61 crore during the same period. DCM Shriram’s expenses increased by 3.11% YoY to Rs 1,970 crore in Q2. The company’s board has declared an interim dividend of Rs 4.60 per share.

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Dr Reddy’s Labs gets USFDA approval for Lenalidomide capsules

Dr Reddy’s Laboratories has received final approval for Lenalidomide capsules from the US Food and Drug Administration (USFDA). The drug is used to treat various types of cancers. With this approval, the pharma company is eligible for 180 days of generic drug exclusivity for Lenalidomide capsules, 2.5 mg and 20 mg. 

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ACC Q3 Results: Net profit rises 23.7% YoY to Rs 450 crore

ACC Limited reported a 23.7% YoY increase in consolidated net profit to Rs 450.19 crore for the quarter ended September (Q3 CY21). The company follows the January-December financial year cycle. Net profit fell 20.9% compared to the previous quarter. Its revenue from operations rose 5% YoY to Rs 3,653 crore during the same period. The cement manufacturer’s earnings before interest, tax, depreciation, and amortization (EBITDA) was higher by 6% YoY at Rs 712 crore in Q2.

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L&T Technology Services Q2 Results: Net profit rises 39% YoY to Rs 230 crore

L&T Technology Services (LTTS) Ltd reported a 38.97% YoY increase in consolidated net profit to Rs 230 crore for the quarter ended September (Q2 FY22). Net profit rose 6.38% compared to the previous quarter. Its total income rose 19.45% YoY (or 4.76% QoQ) to Rs 1,637 crore during the same period. LTTS secured a total of five deals with a total contract value of more than $10 million in Q2. EBIT margins grew by 470 basis points (bps) at 18.4%.

ICICI Securities Q2 Results: Net profit rises 26% YoY to Rs 351 crore

ICICI Securities Ltd reported a 26.28% YoY increase in consolidated net profit to Rs 351.24 crore for the quarter ended September (Q2 FY22). Net profit rose 13% compared to the previous quarter. Its total income rose 26% YoY to Rs 857 crore during the same period. The board of ICICI Securities has declared an interim dividend of Rs 11.25 per share.

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Reliance Retail acquires majority stake in designer Ritu Kumar’s firm

Reliance Retail Ventures Ltd (RRVL) has acquired a majority stake (~52%) in iconic Indian fashion designer Ritu Kumar’s company Ritika Pvt Ltd. The Ritu Kumar business includes four fashion brand portfolios that cumulatively retail out of 151 point of sales globally. The partnership between the pioneering designer and RRVL aims to highlight India’s re-emerging role in the international couture industry. 

Read more here.

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Tata Steel Commissions First Steel Recycling Unit in Rohtak – Top Indian Market News

Tata Steel commissions first steel recycling unit in Rohtak

Tata Steel Ltd has commissioned a 0.5 million tonnes per annum (MTPA) steel recycling plant at Rohtak, Haryana. The plant has been set up in collaboration with Aarti Green Tec as a Build, Own, and Operate (BOO) partner. The first-of-a-kind facility is equipped with modern and mechanised equipment such as shredder, baler, and material handler. The scrap will be procured from sources such as end-of-life vehicles, obsolete households, construction & demolition, industries, through an app called FerroHaat.

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Pizza Hut partners with HUL to add Kwality Wall’s ice cream, desserts to menu

Pizza Hut has partnered with Hindustan Unilever Ltd to add the FMCG firm’s Kwality Wall’s ice cream and desserts to its dine-in, delivery, and takeaway menu. With this partnership, Pizza Hut expects to increase its average order value by 10% for orders that have Kwality Wall’s ice cream and desserts. Pizza Hut has become the first-ever quick service restaurant (QSR) chain to offer ice creams and desserts across its owned and aggregator platforms.

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Subex secures five-year contract from Dhiraagu

Subex Ltd has secured a five-year contract from Dhiraagu to implement an integrated revenue assurance and fraud management (iRAFM) solution. Dhiraagu is a leading telecom operator in the Maldives. Through the deployment, Dhiraagu will upgrade its systems and consolidate its standalone assurance functions to better equip itself for the 5G era. Subex is expected to help replace the operator’s existing systems with new and advanced software to improve their processes and enhance customer experience.

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Bharat Forge to enter EV space with 2-wheelers and 3-wheelers

Bharat Forge Limited is set to enter the electric vehicle (EV) space with two-wheelers and three-wheelers in the current financial year (FY22). The launch will further highlight how companies are rushing to tap the upcoming and thriving EV market. Tork Motors, an associate company of Bharat Forge, has met the subsidy requirements specified for Phase 2 of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II). Bharat Forge is a leading manufacturer of forged and machined components in India.

Cabinet approves Rs 11,040 crore scheme to reduce edible oil import dependency

The Union Cabinet has approved the launch of a new mission to boost palm oil production, the National Mission on Edible Oils— Oil Palm (NMEO-OP), with an outlay of Rs 11,040 crore. The scheme aims to reduce India’s dependence on imported edible oil. The central scheme will have a special focus on the north-eastern region and the Andaman and Nicobar Islands. The new scheme aims to have an additional area of 6.5 lakh hectares under oil palm by FY26.

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Telecos, vendors, chipmakers term 5Gi as risky technology

Bharti Airtel, Vodafone Idea, and top smartphone makers and chipset vendors have termed the Indian 5G standard, 5Gi, as a risky technology. Their consistent persuasion to conduct an objective and holistic assessment of the standard within the Telecommunications Standards Development Society India (TSDSI) was met with outright rejection. In their joint submission to the Department of Telecommunications (DoT), leading telecom companies and chipset makers have urged the Telecommunication Engineering Center (TEC) to conduct theoretical verification and field-level validation of performance gains of the 5Gi standard.

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Tejas Networks clarifies on reports of its business exposure in Afghanistan

Tejas Networks Ltd has issued a statement in which the company clarified on reports of having business exposure in crisis-hit Afghanistan, where the Taliban has taken control of the country’s capital Kabul. The company stated that there are no customer orders from Afganistan that are pending execution. There are also no outstanding receivables from customers in the country. Further, Tejas Networks said it has no employees located in the region.

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Tega Industries files DRHP for IPO

Mining company Tega Industries has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI to raise funds via an initial public offering (IPO). The company is expected to raise around Rs 700-750 crore through the IPO. The issue will entirely consist of an offer for sale (OFS) of up to 13.66 lakh equity shares (of the face value of Rs 10 each) by promoters and existing shareholders. Kolkata-based Tega Industries is part of MM Group of Companies. It provides customised solutions to the mining, bulk mineral handling, and slurry transportation industries.

Read more here.

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Market News Top 10 News

Cabinet Approves Rs 6,322 crore PLI Scheme for Specialty Steel – Top Indian Market News

Cabinet approves Rs 6,322 crore PLI scheme for specialty steel

The Union Cabinet has approved a Production Linked Incentive (PLI) scheme for specialty steel. Incentives worth Rs 6,322 crore will be provided to eligible manufacturers over five years. The scheme is expected to bring in investments of approximately Rs 40,000 crore and capacity addition of 25 million tonnes (MT). It will cover coated/plated steel products, high strength/wear-resistant steel, specialty rails, alloy steel products, electrical steel, etc. The PLI scheme for the steel sector will enhance exports and minimize dependence on imports of high-end steel in India.

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Hindustan Unilever Q1 Results: Net profit rises 9.6% to Rs 2,061 crore

Hindustan Unilever Ltd (HUL) reported a 9.6% YoY jump in standalone net profit to Rs 2,061 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 13% YoY to Rs 11,915 crore during the same period. EBITDA grew 7.7% YoY to Rs 2,847 crore in Q1. HUL registered a 12% YoY rise in domestic consumer growth during the quarter. The company’s revenue growth in Q1 was mainly led by double-digit growth of its foods & refreshments and personal care segments.

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UltraTech Cement Q1 Results: Net profit jumps two-fold to Rs 1,703 crore

UltraTech Cement Ltd reported a 114.4% YoY jump in consolidated net profit to Rs 1,703 crore for the quarter ended June (Q1 FY22). Net profit has declined by 4.09% when compared to the previous quarter. Its revenue from operations rose 54% YoY to Rs 11,829 crore during the same period. The company’s sales volume stood at 21.53 million metric tonnes (MMT), a growth of 47% YoY. 

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Adani Ports to raise $500 million through dollar bonds

Adani Ports & Special Economic Zone (APSEZ) aims to raise at least $500 million (~Rs 3,720 crore) on offshore debt through dollar bonds. The proceeds will be used to repay existing debt, meet capital expenditure requirements, and for general corporate purposes of the company’s subsidiaries in India and Sri Lanka. Axis Bank, Barclays, Bank of America, and Citi are advising the company on the fundraisal.

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Bajaj Auto Q1 Results: Net profit more than doubles to Rs 1,061 crore 

Bajaj Auto Ltd reported a 101.2% YoY jump in standalone net profit to Rs 1,061.2 crore for the quarter ended June (Q1 FY22). Net profit has declined by 20.3% when compared to the previous quarter. Its revenue from operations rose 139.88% YoY to Rs 7,386 crore during the same period. Bajaj Auto sold nearly 3.42 lakh units of motorcycles and commanded a market share of 19.7% in Q1. The company announced the formation of a wholly-owned subsidiary to venture into the electric mobility segment.

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Tata Power to transfer 100% stake held in Trust Energy Resources to Tata Power International

Tata Power Company Ltd has signed a share purchase agreement (SPA) with Tata Power International Pte. Ltd (TPIPL) for the sale of 100% equity shares held in Trust Energy Resources (TERPL) for $285.64 million (~Rs 2,125 crore). Both TPIPL and TERPL are wholly-owned subsidiaries of Tata Power. The transaction is likely to be completed in the next two to three weeks.

IEX Q1 Results: Net profit rises 49% YoY to Rs 62.8 crore

Indian Energy Exchange (IEX) reported a 49.23% YoY increase in consolidated net profit to Rs 62.81 crore for the quarter ended June (Q1 FY22). Net profit has increased by 2.1% when compared to the previous quarter. Its total income rose 26.86% YoY (or 2.5% QoQ) to Rs 102.87 crore during the same period. IEX’s board has declared a final dividend of Rs 1.5 per share for the financial year 2020-21 (FY21). You can learn more about IEX’s operations here.

TCS partners with Dutch Open Golf Tournament

Tata Consultancy Services (TCS) has announced a new partnership with the Dutch Open Golf Tournament, one of Europe’s most innovative and sustainable golf events. The IT company will leverage its expertise in digital technologies to help the Dutch Open enrich the participant and spectator experience. The Dutch Open 2021 will take place from September 16 to 19 at the Bernardus Golf court in Cromvoirt.

In other news, Kerala’s Industries Minister P. Rajeev confirmed that Kerala Industrial Infrastructure Development Corp (KINFRA) will sign a Memorandum of Understanding (MoU) with TCS for Rs 1,350 crore in two phases.

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IndiaMART InterMESH Q1 Results: Net profit rises 18% YoY to Rs 88 crore

IndiaMART InterMESH Ltd reported an 18.62% YoY increase in consolidated net profit to Rs 87.9 crore for the quarter ended June (Q1 FY22). Net profit increased by 57.81% when compared to the previous quarter. Its total income rose 12.9% YoY (or 11% QoQ) to Rs 211 crore during the same period. The e-commerce company’s board has announced a final dividend of Rs 15 per share for the financial year ended March 31, 2021 (FY21). 

Wipro partners with ServiceNow to offer FieldX for enhanced after-sales services

Wipro has launched FieldX, a cloud-based end-to-end digital service lifecycle automation solution build on ServiceNow’s Now Platform. Manufacturing firms can use the solution to enhance their after-sales customer service operations and reduce costs. FieldX integrates the customer service and field-service management capabilities of the Now Platform with Wipro’s Internet of Things (IoT) and Augmented Reality (AR) platforms.

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CSB Bank Q1 Results: Net profit rises 14% YoY to Rs 61 crore

CSB Bank reported a 13.89% YoY increase in consolidated net profit to Rs 61 crore for the quarter ended June (Q1 FY22). Net profit has increased by 42.2% when compared to the previous quarter. Its total income rose 15% YoY to Rs 571.53 crore during the same period. Its gross non-performing assets (GNPA) ratio rose to 4.88% in Q1 FY22, compared to 3.51% in Q1 FY21.

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HUL Reports 41% YoY Rise in Net Profit in Q4 – Top Indian Market News

Hindustan Unilever Q4 Results: Net profit rises 41% YoY to Rs 2,143 crore

Hindustan Unilever Ltd (HUL) reported a 41% year-on-year (YoY) increase in net profit to Rs 2,143 crore for the quarter ended March (Q4). Its revenue rose 35% YoY to Rs 11,947 crore during the same period. The FMCG firm saw strong demand for its food and refreshments portfolio (up 36% YoY) and recovery in categories such as fabric wash. HUL’s volume growth stood at 16% in Q4. The company’s board has proposed a final dividend of Rs 17 per share.

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Tata gets CCI approval to acquire 64.3% stake in BigBasket

The Competition Commission of India (CCI) has approved Tata Digital’s proposal of acquiring up to 64.3% stake in Supermarket Grocery Supplies Pvt Ltd (SGS), the business-to-business (B2B) arm of BigBasket. The transaction will include a mix of primary and secondary share purchases. Through a separate transaction, SGS may acquire sole control over Innovative Retail Concepts, which operates BigBasket’s online retail business. This would give Tata control over both wholesale and retail business units. [Tata Digital is a wholly-owned subsidiary of Tata Sons]

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Bajaj Auto Q4 Results: Net profit rises 2% YoY to Rs 1,332 crore

Bajaj Auto Limited reported a 2% YoY increase in standalone net profit to Rs 1,332 crore for the quarter ended March (Q4). Its revenue rose 26% YoY to Rs 8,596 crore during the same period. The company’s total vehicle sales increased 18% YoY to 11.69 lakh units in Q4. Bajaj Auto’s overall share for motorcycles sold in domestic and international markets (amongst Indian manufacturers) stood at 27.6% in FY21. The auto major’s board has announced a final dividend of Rs 140 per share.

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Inox Leisure Q4 Results: Net loss at Rs 94 crore

Inox Leisure Limited reported a consolidated net loss of Rs 93.69 crore for the quarter ended March (Q4). The multiplex chain operator had posted a net loss of Rs 82.15 crore in the corresponding period last year (Q4 FY20). Revenue from operations declined 75.66% YoY to Rs 90.44 crore in Q4 FY21. The resurgence of Covid-19 cases has emerged as a major cause of concern for the company. Inox Leisure currently operates 648 screens across 153 multiplexes in 69 cities.

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IndiaMART Q4 Results: Net profit rises 26% YoY to Rs 55.7 crore

IndiaMART InterMESH Ltd reported a 26% YoY increase in consolidated net profit to Rs 55.7 crore for the quarter ended March (Q4). Its revenue rose 5.64% YoY to Rs 179.70 crore during the same period. The B2B firm’s consolidated net profit has increased by 89.82% YoY to Rs 279.80 crore for the financial year ended March 31, 2021 (FY21). The company’s board has proposed a final dividend of Rs 15 per share.

In other news, IndiaMART InterMESH (through its subsidiary Tradezeal Online) will acquire a 26% stake in Gurugram-based Shipway Technology for Rs 18.2 crore. The company will also acquire a 3.02% stake in Kolkata-based Truckhall for Rs 1.33 crore.

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Route Mobile to acquire AI firm Phonon Communications for Rs 29 crore

Route Mobile Limited has signed definitive agreements to acquire Artificial Intelligence (AI) platform provider Phonon Communications Pvt Ltd for Rs 29 crore. This acquisition will help Route Mobile to offer automation and contact center solutions at scale to enterprises globally. Phonon offers a complete suite of conversational AI-driven contact center solutions with integration on cloud platforms such as AWS, Azure, and Google Cloud.

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Laurus Labs Q4 Results: Net profit rises 170% YoY to Rs 297 crore

Laurus Labs Limited reported a 170% YoY jump in consolidated net profit to Rs 297 crore for the quarter ended March (Q4). Its revenue from operations rose 68% YoY to Rs 1,412 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has increased by 286% YoY to Rs 984 crore. Laurus Labs’ formulations and API businesses have delivered robust growth throughout the year. The pharma company’s board has announced an interim dividend of Rs 0.80 per share.

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Wipro partners with Citrix, Hewlett Packard to accelerate remote working solutions

Wipro Limited has strengthened its alliance with Citrix and Hewlett Packard Enterprise (HPE) to launch a robust solution that will accelerate remote working and bring modernisation into workspaces. The solution offers a seamless framework to enable a unified experience for enterprises. It will be delivered through a pay-per-use model that is subscription-based, agile, elastic, and offer a consistent cloud experience.

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Ambuja Cements Q1 Results: Net profit rises 66% YoY to Rs 665 crore

Ambuja Cements reported a 66.6% YoY increase in standalone net profit to Rs 665 crore for the quarter ended March (Q1 CY21). The company follows the January-December financial year cycle. Net sales rose 30% YoY to Rs 3,579 crore during the same period. The cement maker’s sales volume grew 24.48% YoY to 7.17 million tonnes in Q1. To compensate for the impact of rising fuel and raw material costs, Ambuja Cements had launched operational efficiency programs, along with logistics efficiencies such as direct dispatches.

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Exide Industries Q4 Results: Net profit rises 30% YoY to Rs 321 crore

Exide Industries Limited reported a 29.54% YoY increase in consolidated net profit to Rs 321.87 crore for the quarter ended March (Q4). Its revenue rose 31.32% YoY to Rs 4,562.86 crore during the same period. The company has posted strong growth in both automotive and industrial segments. For the financial year ended March 31, 2021 (FY21), the battery manufacturer’s net profit has increased by 4.27% YoY to Rs 809.90 crore.

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Titan Q4 Results: Net profit rises 48% YoY to Rs 529 crore

Titan Company Ltd reported a 48% YoY increase in net profit to Rs 529 crore for the quarter ended March (Q4). Revenue from operations rose 61% YoY to Rs 4,429 crore during the same period. The jewellery segment posted a revenue of Rs 6,397 crores (excluding gold bullion sales), compared to Rs 3,754 crores in Q4 FY20. Its eyewear business registered an 18% YoY growth in revenues to Rs 127 crores. Titan’s board has announced a dividend of Rs 4 per share.

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PM Modi addresses the Nation – Top Indian Market News

PM Modi addresses the nation, reminds citizens that fight against virus must not stop

Prime Minister Narendra Modi, in his address, stated that India has come a long way from the first lockdown restrictions in March. He announced that economic activities are increasing rapidly, and several Covid-19 vaccines are approaching final testing stages in India. The government is also making efforts to ensure that the vaccine reaches every Indian when it is launched. However, PM Modi also reminded citizens to follow rules, and to keep fighting against the virus until a vaccine is approved.

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Indian Railways approves Jindal Steel and Power rails for high-speed corridor

Jindal Steel and Power Ltd. (JSPL) announced on Tuesday that the Indian Railways has approved the rails developed by the company, for high-speed and high-axle load applications. The new track system can be used to carry heavy loads at a speed of up to 200 km/hour. The company also plans to double its supply of rails to the Indian Railways and metro lines.

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Mrs Bectors Food files papers for Rs 550 crore IPO

Biscuit and bread maker Mrs Bectors Food Specialities has filed documents with market regulator SEBI, in order to raise Rs 550 crore, through an initial public offering (IPO). The IPO would include a fresh issue of equity shares worth Rs 50 crore, and an offer for sale (OFS) by existing shareholders worth Rs 550 crore. Mrs Bectors is a supplier of fast-food chains Burger King and McDonald’s in India.

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Hindustan Zinc reports 6.7% YoY drop in profits 

Hindustan Zinc Ltd. on Tuesday reported a 6.7% year-on-year decline in net profit to Rs 1,940 crore, for the quarter ended September (Q2). The total income of the company stood at Rs 6,050 crore during the July-September period. The company has also announced an interim dividend of Rs 21.3 per share.

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Hindustan Unilever Q2 Results: Net profit rises 8.7% to Rs 2,009 crore

Hindustan Unilever Limited reported an 8.7% year-on-year (YoY) increase in net profit to Rs 2,009 crore, for the quarter ended September (Q2). The total income of the company saw a rise of 16% YoY to Rs 11,593 crore. The company’s Board of Directors has also declared an interim dividend of Rs 14 per share.

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Granules India reports 71% YoY increase in profits 

Drug firm Granules India reported a 70.82% year-on-year increase in its consolidated net profit to Rs 163.63 crore, for the quarter ended September (Q2). The company’s consolidated revenue from operations stood at Rs 858.12 crore during the same period. The company’s Board of Directors has announced an interim dividend of Rs 25 paise per equity share of Rs 1 each.

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Shares of Hexaware to be delisted from NSE on 2nd November 

IT firm Hexaware Technologies has announced that trading of its shares on the National Stock Exchange will be suspended from November 2nd. The voluntary delisting process of the company’s shares from NSE and BSE was undertaken last month. The final delisting price was set at Rs 475 per share.

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Sunteck Realty acquires 50-acre land in Mumbai to develop residential project

Sunteck Realty, a real estate development company, on Tuesday, announced the acquisition of a 50-acre land in Vasind (Thane). The company has plans to develop a  2.6 million square feet residential project, that will have a revenue potential of Rs 1,250 crore. Mumbai-based Sunteck Realty has conducted over 26 real estate development projects in India.

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Future Group approaches lenders for one-time debt recast

Kishore Biyani’s Future Group has approached banks such as State Bank of India and Bank of India, to restructure its outstanding debt under the RBI’s one-time restructuring scheme. This scheme is permitted by market regulator SEBI, and will be used to provide support to companies affected by the Covid-19 crisis. Future group is planning to defer (postpone) repayments on Rs 7,500 crore in debt over the next few months.

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Wipro secures five-year contract with energy company Fortum

IT company Wipro has won a five-year application management (AMS) and services integration & management (SIAM) contract with Finland-based clean energy company Fortum. Wipro will manage Fortum’s applications, which has more than 11,500 users across 18 countries. Wipro had acquired cloud-services firm 4C in July, and has plans to further strengthen its presence in the Nordic and Baltic region.

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