Stocks To Watch Today: HUL, ITC, Nestle, Paytm, Tata Motors & More

On 20th October 2023, Friday, market watchers may witness price actions on stocks such as Tata Motors, Tata Steel, Tata Coffee, Metro Brands, Paytm and more which are likely to be in focus today.

Tata Motors

On Thursday, Tata Motors signed contracts to invest in equity shares and mandatory convertible preference shares of Freight Commerce Solutions Private Limited in order to acquire a 26.79% stake in the company. In order to acquire a 26.79% share in "Freight Tiger" for an amount of Rs 150 crores, Tata Motors and Freight Commerce Solutions Private Limited (Freight Tiger) have signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA). The SSA also has a provision that allows Tata Motors to make further investments totalling Rs 100 crores over the upcoming two years.

Tata Steel

On Thursday, Tata Steel Limited decided to sign a Share Purchase & Shareholders' Agreement with Tata Power Renewable Energy Ltd. and its wholly-owned subsidiary, TP Vardhaman Surya Ltd., in order to purchase 13,000 equity shares, or a 26% equity stake, in TP Vardhaman Surya Ltd. for a total amount of approximately Rs 1,30,000.

Tata Coffee

The company reported on Thursday that lower coffee sales volumes in plantations and at Eight O'Clock Coffee [EOC] were the key reason why its consolidated total income for the quarter was slightly lower at Rs. 719 crore than Rs. 723 crore for the corresponding quarter of the previous year. When compared to the same quarter last year, the instant coffee industry, which includes both Vietnam and India, had a 12% increase in sales. Profitability in the value-added sector climbed to Rs. 77 crore from Rs. 51 crore in the comparable quarter last year due to higher price realisations and a better product mix in the extractions businesses in India and Vietnam. Consolidated Profit before Exceptional Items for the group for Q2FY24 climbed to Rs. 82 crore from Rs. 50 crore in the comparable quarter of the previous financial year, mostly due to the strong performance of the Instant Coffee business.

Metro Brands

Metro Brands Limited reported a standalone revenue of Rs 532 crore in Q2 FY 2023-2024, representing a 15% increase in sales. The company also produced 15% Profit After Tax (PAT) and 30% Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) margins. The company's H1 2023-2024 performance was consistent, with sales climbing by 13% and a PAT margin of 17%. Notably, compared to the prior fiscal year, the company's e-commerce contribution increased from 8% to 11% in H1 FY 2023-2024. With the opening of 56 fresh stores in H1 FY 2023-2024, Metro Brands Limited has continued to exhibit great development in its physical presence.

Tejas Networks

The company got a purchase order from Tata Consultancy Services Limited (TCS) on Thursday for Rs. 107.73 crore as part of a single contract between TCS and Tejas Networks Limited, dated August 16, 2023, for the supply of equipment for BSNL's Pan-India 4G/5G network.

Paytm

The parent company of Indian mobile payment and financial services company Paytm, One97 Communications Ltd, is scheduled to release its Q2FY24 results today. With a target price of Rs 1300, up 37% from the stock's current price, Jefferies recently commenced coverage on Paytm with a "Buy" rating.

Nestle

On Thursday, Nestle India Limited reported a 37 per cent rise in its consolidated net profit for the third quarter of this year, to Rs 908 crore, compared to Rs 668.3 crore in the year-ago quarter. According to the BSE filing, it reported a total revenue of Rs 5036 crore in Q3FY24, which is a rise of 9.5% from Rs 4,601.8 crore in the same quarter of FY23. The large-cap FMCG company announced a substantial second interim dividend for 2023 of Rs 140 per equity share of Rs 10 apiece with 1st November 2023 fixed as the record date. Also, the FMCG giant has declared its first-ever stock split in a 1:10 ratio.

HUL

Hindustan Unilever Ltd. (HUL) stated on Thursday that its standalone net profit for the September quarter jumped by 3.86% (YoY) to Rs 2,717 crore from the Rs 2,616 crore reported in the same period the previous year. According to the regulatory filing, the company's revenue for the quarter under review climbed 3.53% (YoY) to Rs 15,027 crore from Rs 14,514 crore in Q2FY24. EBITDA, or earnings before interest, taxes, depreciation, and amortisation, jumped by 9% to Rs. 3,694 crores for the quarter. To reach 24.6%, EBITDA margin went up by 130 basis points in Q2FY24. HUL has declared an interim dividend of Rs 18 per share with Thursday, 2nd November 2023 being the record date.

ITC

ITC Ltd announced its net profit on Thursday for the quarter ended September 30, 2023, which stood at Rs 4,927 crore, which is a rise of 10.3% (YoY). The company reported a 2.6 per cent rise in Q2 revenue from operations at Rs 16,550 crore. While its operating margin shrank by 44 basis points YoY to 29.53%, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw an approximate rise of 1% YoY to Rs 4,886.54 crore in Q2FY24.