Stocks To Watch: RIL, HCLTech, Bandhan Bank, SpiceJet, Airtel, Tata Capital, And Others

Stocks To Watch On October 15: The market kicked off the week on a positive note, gaining over half a percent, buoyed by strong global cues. In today’s trade, shares of RIL, HCL Tech, HDFC Life, PVR Inox, JSW Infra among others will be in focus due to various news developments and second quarter results.

Reliance Industries: RIL reported a 4.8 per cent year-on-year decline in consolidated profit for Q2 FY25, totaling Rs 16,563 crore, and missing analyst expectations. This marks the third consecutive quarter of declining profits, primarily due to weakness in its oil-to-chemicals (O2C) business. Despite this, RIL’s digital services and upstream businesses showed growth. Revenue was slightly lower than the previous year at Rs 2.31 trillion. Jio Platforms, a subsidiary, posted strong revenue growth of 18 per cent, driven by recent telecom tariff hikes, although it lost subscribers for the first time in seven quarters. The company’s retail business saw a 5.2 per cent increase in net profit, though revenue dipped due to challenges in fashion and lifestyle sectors.

Jio Platforms: The Reliance Industries subsidiary company experienced a significant 23.4 per cent year-on-year increase in net profit, reaching Rs 6,539 crore for Q2 FY25, thanks to higher telecom tariffs. Its average revenue per user (ARPU) rose to Rs 191.5. Despite losing 10.9 million subscribers during the quarter, engagement remained robust with strong data and voice traffic growth.

Reliance Retail Ventures: The retail division of Reliance Industries reported a net profit of Rs 2,935 crore, up 5.2 per cent year-on-year, despite a revenue decline of 3.5 per cent. The company emphasised its expansion strategy, opening 464 new stores and increasing its digital commerce contribution to 17 per cent of revenue. Notably, partnerships and growth in the grocery and consumer electronics sectors were highlighted.

HCLTech: The company raised its FY25 revenue growth guidance, expecting to grow between 3.5 per cent and 5 per cent. The company posted a net profit of Rs 4,235 crore for Q2 FY25, up 10.5 per cent year-on-year. Strong performance in telecommunications and media, supported this growth. HCLTech continues to invest in digital capabilities and AI initiatives, which are expected to enhance future performance.

Larsen & Toubro: Positive investor sentiment surrounds L&T following an ‘Overweight’ rating by JPMorgan, suggesting a potential upside of nearly 25 per cent. The company anticipates strong order growth despite global challenges, with an optimistic order intake forecast for FY25. It aims for a revenue growth of 15 per cent and is well-positioned to benefit from India’s extensive infrastructure investments.

Bandhan Bank: Partha Pratim Sengupta will assume the role of MD and CEO in November, focusing on transforming the bank’s business model. With micro loans still comprising 50 per cent of its loan book, Bandhan aims to shift towards secured loans while maintaining healthy margins. The bank’s net interest margin stands at 7.6 per cent, and its capital adequacy ratio is 15 per cent. Stakeholder confidence, particularly with regulators, will be crucial as the bank seeks to balance growth with stability.

Adani Power: The Supreme Court has reinstated Adani Power’s Rs 27,000 crore insolvency resolution for the KSK Mahanadi project, allowing recovery for lenders. This project, with a total claim of Rs 29,330 crore, is pivotal for Adani Power. Adani Power was the highest bidder for the stressed thermal project with an offer of Rs 27,000 crore, which ensured 92 per cent recovery for the lenders.

Tata Capital: Following the RBI’s approval for its merger with Tata Motors Finance, Tata Capital is set to become India’s 12th largest non-banking finance company. This merger aims to enhance customer offerings in the commercial vehicle financing segment and streamline operations under the Tata umbrella.

Atul Auto: Atul Greentech, subsidiary of Atul Auto, has partnered with Jio Platforms to provide electric vehicle solutions globally. This collaboration leverages IoT technology for enhanced telematics and vehicle monitoring, positioning Atul Auto favorably in the growing electric vehicle market.

SpiceJet: The airline faces a new insolvency case over unpaid dues of around Rs 58 crore related to a Boeing 737 lease. This adds to ongoing legal challenges, as SpiceJet has previously dealt with several insolvency petitions without leading to formal proceedings.

TAC InfoSec: As an authorised lab for Google’s Mobile Apps Security Assessment, TAC InfoSec will assist developers in meeting stringent security standards. This partnership positions the company to capitalise on a significant market of over 10,000 developers on the Play Store, furthering its growth strategy.

Bharti Airtel: Ericsson has secured a significant multi-billion dollar contract to supply 5G equipment to Bharti Airtel, following a $3.6 billion deal with Vodafone Idea. The increased demand in the Indian 5G market, driven by Airtel and Jio, may help offset revenue declines in the US market for the company.

Easy Trip Planners: The board of Easy Trip Planners has approved a bonus share issuance, offering one bonus share for every fully paid-up equity share. This reflects the company’s commitment to rewarding shareholders and follows two successful bonus distributions in 2022. The issuance will increase total share capital to Rs 354.408 crore and will be funded by Rs 177.2 crore from available reserves.

Reliance Home Finance: Anil Ambani, chairman of the Reliance Group, has appealed against a Sebi order that imposed a total penalty of Rs 625 crore on several individuals, including a Rs 25 crore penalty on Ambani himself. The case involves allegations of financial irregularities and the disbursement of loans linked to promoters. The Securities Appellate Tribunal is set to hear the matter on October 18.

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