MarketBuzz
1244: Marketbuzz Podcast with Hormaz Fatakia: Bajaj Finance, Coforge, Yes Bank in the spotlight
Good morning and welcome to CNBC TV18's Market Bus podcast. I am Harmas Patakya and it's the final trading day of the week and it promises to be one full of earnings reactions and other news flow based action as well. Now there are plenty of stocks to watch out for this morning but the one that should be on your radar is Bajaj Finance and that is because the Reserve Bank of India has lifted the restrictions on its e-com and the online digital Insta EMI card business with immediate effect. As a result, Bajaj Finance can now resume the sanctions and dispersals of loans in these two business segments including the issuance of EMI cards. Now this comes nearly six months after the central bank had imposed restrictions on both of these businesses in November last year. Now we don't see many these days but these guys are starting off again and I am talking about block deals and we saw one in Zaggle yesterday and another one is likely to take place in Yes Bank today where sources tell CNBC TV18 that the Carlyle Group plans to sell shares with nearly 1,500 crores through these block deals. Now post the warrant conversion the Carlyle run entity had an 8.74% stake in Yes Bank. The other major stock to watch out for today will be Go Falls and that reported results last evening but the bigger news is that they have decided to acquire Signiti Technologies which is another listed company. It will first acquire a 54% stake from its promoters and select public shareholders at 1415 rupees a share which is just a 2.7% premium from Signiti's closing price on Thursday. cohort said that the acquisition will not only help it become a $2 billion company by FY27 but also ensure a 150-200 basis points improvement in its margins by the same time frame. The acquisition will create three new scaled up verticals for Cofords that is retail, technology and healthcare. The move has also triggered an open offer where Cofords intends to acquire an additional 26% stake in Signiti at the same price of 1415 rupees a share. More details can be viewed on our website cnbctv18.com. Now both Jeffries and Incred have downgraded Cofords post this deal and the results saying that the company is not giving guidance for FY25 and that is a big negative surprise. So we will keep an eye out for both Cofords and Signiti as well. Colindia's sales fell 2% for the quarter but EBITDA increased by 21% and margins also saw an improvement compared to last year. Realizations though were down year on year with E auction realizations declining by 44%. E auction premium to FSA sales is down to 66% from 192% during the same quarter last year. However this is something that the management had earlier alluded to as well and something that had spooked the street leading to some bit of correction in Colindia shares. The company has also announced a dividend of 5 rupees a share taking the total for the fiscal year to 25 rupees. Ajanta Pharma has also announced its fourth share buyback since 2020 on Thursday. It plans to spend around 285 crores to acquire up to 10.3 lakh shares at a price of 2,770 rupees which is a premium of nearly 25% from Thursday's closing price. It has fixed the 30th of May as the record date for the buyback. Now when it comes to earnings the company has guided for mid teens growth in FY25 with the domestic business likely to grow between 10 to 11%. It also plans on having 6 new launches in the US market along with 8 to 12 A&D filings in FY25. Now stocks like KEA Industries, Woltan Transformers, Seaat, Aztec Lives, CIE Automotive all of them will react to earnings reported after marketers on Thursday. Among the results being reported today, Gritanian, Titan are among the nifty companies while Adani Green Energy, Inox Wind, Goldridge Properties, JSW Infra, Tata Technologies, MRPL are some of the broader market names that will be reporting numbers for the March quarter today. Now besides earnings, Moyle reported a 22% growth in manganese ore production for April while the sale of manganese ore increased by 17% from last year in the month of April. Onto markets then and we've been resting on Mondays gains for this truncated week since the last two days have been pretty choppy for the indices. Heavyweight banks have proved to be a drag and it took one HDFC bank to just partly offset the pressure exerted by Kotak Mahindra Bank, ICICI Bank and AXIS Bank on Thursday. Now despite the nifty bank correcting over 700 points from Tuesday's high, it is still up 2% for the week while the nifty is up by a percent. PSUs are back in flavor too with both REC and PFC hitting record highs on Thursday. You can read more about them on CNBCTV18.com. The handover from Wall Street is a positive one and all eyes will be on the key US jobs report later this evening. Meanwhile a Bloomberg report stated that traders have now pushed back the bets of the first fed rate cut to November. Remember we were talking about the rate cut starting from as early as March then it got pushed to June and now it's gotten pushed to November. Tech shares will be boosted later this evening after Apple's earnings which on an absolute basis declined year on year but were a beat on expectations. It also announced the largest ever buyback in US history which is worth $110 billion. For the India business, Apple CEO Tim Cook said that they grew in strong double digits and that one needs to be manufacturing in India in order to be competitive in this market. Most Asian markets have also opened higher with markets in Japan and China shut due to a holiday. The gift nifty as we speak is indicating a positive gap upstart for our own markets. That's all for today. We wish you a happy trading day and a happier weekend for the sharpest market insights. Stay tuned to CNBCTV18 and CNBCTV18.com. [Music] [BLANK_AUDIO]