Wipro, Tech Mahindra, Coal India and Maruti Suzuki are among the stocks to watch today amid key earnings and corporate developments. While Tech Mahindra posted strong profit growth, Wipro's margin contraction and weak guidance weighed on sentiment. Investors will also track Coal India's renewable energy expansion, PC Jeweller's fundraising plan, and Maruti Suzuki's legal challenge over E20-compatible vehicles.
Information technology stocks are anticipated to attract the most attention from investors following their announcement of their June quarter results. Wipro announced a disappointing quarter with IT Services sales rising 10.7% to ₹24,452.9 crore year-over-year but profits up only 0.6% at ₹3,356.3 crore. In addition, the company saw a shrinking operating margin of 130 basis points to 16%, and its Q2 guidance of $2,574–2,627 million in IT Services revenue is expected to draw considerable scrutiny.
Meanwhile, Tech Mahindra announced a solid quarter of results. For the period, the company posted a 31.7% rise in net income to ₹1,486.3 crore, which was helped by revenue rising 17.7% to ₹15,711.9 crore. Revenue in dollars rose 6.1%, with EBIT margin rising 330 basis points to 14.4%.
Earnings bring mixed outlook across sectors
There were several companies that came up with different results for their respective quarters. The firm CEAT had a massive decline in its profit of 96.4% to ₹4 crore despite 22.4% increase in revenue at ₹4,318 crore. Piramal Finance had a great quarter as the profit increased by 66.8% to ₹461 crore and the revenue also increased by 27.6% to ₹3,368.3 crore. Borosil Renewables made a turnaround as its profit increased to ₹86.8 crore from a loss of ₹166.6 crore during the same period in the previous year owing to 17% growth in revenue. WeWork India Management narrowed down its loss of ₹4.3 crore with a growth in revenue of 27.7%. 5paisa Capital showed steady growth in revenue while the profit was more or less constant.
Corporate developments keep key stocks in focus
Under non-profit triggers, PC Jeweller is one of the stocks that will be observed due to its board approving an issuance of up to ₹1,000 crore via a Qualified Institution Placement to strengthen its financials.
Coal India has stated that 200 MW capacity has been commissioned by it in the 300 MW Khavda solar project located in the state of Gujarat, thus showing the company's interest in renewable energy.
Servotech Renewable Power Systems received a fresh order for 900 kW capacity solar rooftop projects in 12 locations in the state of Uttar Pradesh.
Maruti Suzuki India Limited is another stock which is under focus due to it opting to challenge a decision made by consumer commission concerning the sale of E20 compatible vehicles. The company stated that the said vehicle was already E20 fuel ready and there was a contamination of fuel in the customer’s vehicle.
