Stocks To Watch Today, Tuesday, July 21: Paytm, L&T, IndiGo, Sobha, Redington

Mumbai, July 21: Investors in India on Tuesday will be tracking Paytm shares after the company reported its Q1 results on Monday. IndiGo shares will also be under spotlight while Sobha and Redington are among the stocks to watch closely in today’s trading session.

Paytm: Parent One97 Communications (PAYTM) Q1 net profit jumps 79 per cent to Rs 220 crore 

One97 Communications said its consolidated net profit rose 79 per cent year-on-year to Rs 220 crore for the quarter ended June compared to Rs 123 crore in the year-ago period. Operating revenue during the reported quarter increased by 28 per cent year-on-year to Rs 2,448 crore. EBITDA more than tripled to Rs 203 crore, a record for any quarter, from Rs 72 crore reported in the year-ago period, while margin expanded by 303 basis points (bps) to 8 per cent. During the quarter, the board reviewed a proposal for issuance of bonus shares to eligible shareholders on a pro-rata basis, subject to necessary approvals from regulators and exchange, in accordance with the Companies Act and other applicable laws, a move analysts said indicated paytm parent’s confidence in its balance sheet. The fintech firm attributed higher profitability during the quarter to AI-led operating leverage as well as growth in both its merchant and consumer businesses. Investors will look out for commentary around timing of the bonus issue and any further margin expansion during its earnings call on July 21. 

Larsen & Toubro (LT) Q1 biz update: L&T’s Metals & Minerals business nets multiple mega orders 

Larsen & Toubro on Monday said its Metals & Minerals (M&M) business has won multiple mega orders from major public and private sector metals and mining companies for providing engineering, procurement and construction (EPC) solutions across the metals and minerals value chain. The total value of the orders bagged by L&T’s M&M business is in the Rs 10,000 crore to Rs 15,000 crore range and therefore qualifies as mega orders as per L&T’s classification. The first order is from India’s largest public sector iron ore producer towards setting up of an 18 MTPA Iron Ore Handling Plant (IHLP) at Bailadila mines in Chhattisgarh as part of its expansion programme towards achieving 100 MTPA capacity by 20 30. The second mega order was won by L&T M&M from another public sector Navratna company towards expansion of a steel plant in West Bengal. “These awards reaffirm our leadership position in this sector and are a testimony to our customers’ trust in our ability to deliver,” said L&T Chairman and Managing Director S N Subrahmanyan. Investors will look out for disclosure of value of individual contracts and any update on L&T’s order inflow guidance for the rest of the year. 

IndiGo (INDIGO) orders over 1,000 LEAP-1A engines from CFM International for its Airbus fleet expansion 

IndiGo and CFM International have signed a Memorandum of Understanding (MoU) for an order of over 1,000 LEAP-1A engines to power 510 Airbus A320neo Family aircraft. The MoU is the largest single order ever placed for LEAP engines and a record-breaker for CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines. Signed at the Farnborough International Airshow, it will also see CFM provide extensive support to IndiGo towards setting up its upcoming engine maintenance, repair and overhaul (MRO) facility and include a long-term material services agreement to support spare parts requirements and technical backup. India continues to be CFM’s third-largest market, with five domestic carriers operating more than 400 LEAP-powered aircraft and over 2,000 engines already on order. IndiGo, which expects to grow its fleet beyond 550 aircraft and fly 200 million passengers every year by fiscal 20 30, plans to place the order within this decade. Investors will look out for delivery timelines and updates on its MRO facility set-up plans for cues on any potential cost savings from pushing up in-house engine maintenance. 

Sobha (SOBHA) records best-ever quarterly sales of Rs 3,656 crore, posts 263 per cent jump in Q1 net profit at Rs 51 crore 

Bengaluru-based Sobha Ltd on Friday reported a consolidated net profit of Rs 51 crore for the quarter ended June compared to Rs 14 crore in the year-ago period, a jump of 263 per cent. Revenue from operations during the quarter grew 50 per cent year-on-year to Rs 1,278 crore. EBITDA during the reported quarter nearly tripled to Rs 77 crore from Rs 24 crore in Q1FY21, while margin improved to 6.03 per cent from 2.82 per cent. The developer posted record quarterly sales bookings of Rs 3,656 crore driven by robust demand following new launches in its two core cities of Bengaluru and Gurugram. The company said it remained net cash positive at the end of the quarter with negative net debt- equity ratio of 0.14. Sobha Managing Director Jagadish Nangineni said the highest-ever quarterly sales is reflective of the trust customers continue to repose in the brand and its operating model. Investors will look for commentary around collections during the quarter and updates on the company’s new launch pipeline for visibility on whether it can sustain the current level of bookings. 

Redington (REDINGTON) partners with Resulticks to drive adoption of real-time customer engagement tech across MEA and SESA 

Redington on Monday said it has entered into a strategic distribution partnership with Resulticks, a global real-time audience engagement solutions provider. Designed to span five years, the partnership aims to drive rapid adoption of intelligent, real-time customer engagement technologies across the Middle East, India and South East and South Asia (SESA). The two companies have set their sights on tapping a combined market opportunity exceeding $150 million over the term of the partnership and plan to support this growth with investments in partner enablement and demand generation. The collaboration will marry Redington’s channel reach across over 70,000 partners with Resulticks’ AI-powered audience engagement platform. Investors will look out for early contribution from the partnership towards revenue and any further updates on Redington’s growing technology distribution portfolio that has also recently seen tie-ups with Microsoft and GNG Electronics.

Sources

•  bseindia.com
• nseindia.com
• PTI