Stocks To Watch: RITES, HUL, REC, Indian Bank, Metro Brands, SBI & More

Sizzling stocks including SBI, Lupin, Hindustan Unilever, Shalby, and Metro Brands are among the top 10 stocks that market observers are likely to be focusing on Friday, January 19.

SBI

The largest bank in the nation, State Bank of India (SBI), raised Rs. 5,000 crores on Thursday by issuing its second Additional Tier 1 bond for the current fiscal year at an 8.34% coupon rate, in compliance with Basel III. The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter. With 108 bids totalling Rs. 5,294 crores, the offer garnered an enormous response from a diverse spectrum of investors and was about 2.65 times oversubscribed compared to the initial issue size of Rs 2,000 crores.

Investors included banks, insurance firms, mutual funds, provident and pension funds, and more. Shri Dinesh Khara, Chairman SBI, stated that the tight pricing and the diverse investor base for an instrument which has its own challenges shows the trust investors place in the bank. The bank has chosen to accept bids of Rs. 5,000 crores at an annual coupon rate of 8.34% based on the response. CRISIL and ICRA rated the Bonds AA+ with a stable outlook. The bank was able to diversify and raise long-term non-equity regulatory capital, which makes the offering noteworthy.

Lupin

The United States Food and Drug Administration (U.S. FDA) has approved Lupin Limited's (Lupin) abbreviated new drug application for Febuxostat tablets, 40 mg and 80 mg, allowing Lupin to market a generic version of Takeda Pharmaceuticals U.S.A., Inc.'s Uloric® Tablets, 40 mg and 80 mg. The product will be produced at Lupin's Indian plant in Pithampur.

Metro Brands

One of the largest specialty shoe retailers in India, Metro Brands Limited (MBL), released its standalone and consolidated financial results for the quarter and nine months that ended on December 31, 2023. In the fiscal year 2023-2024, MBL had a revenue of Rs. 616 crores for the third quarter. This is a 7% rise over the same time the previous year. MBL announced an enormous rise in its physical presence, having launched 31 new locations in Q3 of FY 2023-2024, bringing the total number of new locations to 87 for this fiscal year.

With this growth, the company is moving steadily forward to reach its goal of 100 outlets by the end of the 2023-2024 fiscal year. The company is presently in the process of shutting the majority of the Exclusive Brand Outlets (EBOs) and liquidating the FILA inventory. MBL is expected to accomplish these objectives by the end of FY 2023-2024. The firm intends to proactively reinvent the FILA brand in FY 2024-2025. In FY 2025-2026, expansion and prominence within the athleisure market will be the main priorities.

Shoppers Stop

Shoppers Stop reported a 41.26 per cent drop in consolidated net profit at Rs 36.85 crore in its October-December quarter results for fiscal 2023-24 (Q3FY24), which were released on Thursday. In October-December of last year, the firm reported a net profit of Rs 62.74 crore, according to a regulatory filing from Shoppers Stop. During the quarter under review, the company's revenue from operations climbed by 8.83 per cent to Rs 1,237.52 crore. In Q3FY23, it was worth Rs 1,137.07 crore. At Rs 1,189.96 crore, its total expenses for the December quarter climbed by 10.62 per cent.

Indian Bank

The bank has received approval from RBI for setting up a new wholly-owned operations support subsidiary by the bank.

REC

As the Ministry's primary agency for implementing the Rooftop Solar (RTS) programme, REC Limited has been given the task of carrying out the plan that the Ministry of New & Renewable Energy (MNRE) generated and of communicating with all relevant parties nationwide to ensure that RTS reaches its target of 40,000 MW of cumulative capacity by 2026.

Hindustan Unilever

On 1st December, 2023, the Board of Directors proposed to enter into an agreement for the purpose of acquisition of renewable power by acquiring up to 27.73% stake in the equity share capital of Transition Sustainable Energy Services One Private Limited (SPV). The firm has entered into Transaction Documents for its acquisition of a 27.73% stake in the SPV's equity share capital as of January 18.

RITES

The Ministry of Railways' Navratna Public Sector Enterprise, RITES Limited, has won two SCOPE Eminence Awards and the EEPC India Regional Award for institutional, corporate, and export excellence, marking a "triple" victory. The Standing Conference of Public Enterprises (SCOPE) awarded RITES with the SCOPE Eminence Award in the categories of "Corporate Governance" and "Institutional Excellence (Miniratna-I & II)" for the 2019-20 fiscal year in recognition of RITES' outstanding contributions to the public sector. In addition, RITES won the "Top Exporter for the Year 2018-19-Gold Trophy" category of the EEPC INDIA Regional Award (Northern) for Export Excellence for 2018-19, adding yet another notch to its crown. RITES has demonstrated its dedication to pursuing excellence while maintaining its core principles as the cornerstone of its identity by achieving this triple milestone.

IndusInd Bank

According to the bank's announcement on Thursday, its net profit for the quarter that ended on December 31, 2023, was Rs 2,301 crores, up 17% YoY from Rs 1,964 crores in the same period the previous year. At Rs 5,296 crores at the end of the quarter on December 31, 2023, Net Interest Income climbed by 18% YoY and 4% QoQ. In comparison to 4.29% in Q2 of FY24 and 4.27% in Q3 of FY23, the net interest margin for Q3 of FY24 was 4.29%.

The bank's strong operating performance and enough capital are demonstrated by its NIM of 4.29%, Net NPA of 0.57%, Provision Coverage Ratio of 71%, Capital Adequacy Ratio (CRAR) of 17.86%, CASA of 38%, and Liquidity Coverage Ratio of 122%. The gross NPA was at 1.92% of gross advances as of December 31, 2023 compared to 1.93% as on September 30, 2023. Net Non-Performing Assets were 0.57% of net advances as of December 31, 2023 as compared to 0.57% as of September 30, 2023.

Shalby

The top multispecialty hospital in India, Shalby Limited, has announced a strategic investment in PK Healthcare Pvt Ltd., offering an 87.26% equity stake for a consideration of Rs. 102 Cr (approx). The equity stake will be acquired through primary infusion and secondary buyouts, with a one-month timeframe for completion. The investment is in keeping with Shalby's plan to expand its footprint in the Delhi/NCR area in order to boost its overseas business and fortify its position in the northern region of India.

Through this deal, Sanar International Hospitals will be able to benefit from Shalby's leadership and global footprint in orthopaedics. Shalby will be able to serve patients from the northern region of India and the international market, which will assist in accelerating the group's revenue.