Summary:
Stocks including SBI Funds Management, Paytm, LIC, KEI Industries, IREDA and DLF will be in focus after Q1FY27 earnings and key corporate announcements. Strong results from Great Eastern Shipping, KEI Industries and IREDA, along with stake sales, fundraising and new orders, are likely to drive investor sentiment.
There are many stocks that are likely to be in focus because of their announcement of results for the quarter ended June. Many stocks have made significant corporate announcements like share selling, fund raising, new orders, and so on. Stocks like SBI Funds Management, Great Eastern Shipping, KEI Industries, IREDA, DLF, Paytm, LIC, Meesho, Arvind, VVIP Infratech, and UPL are a few examples.
Strong Q1 Performers Lead the Pack
Some of the best-performing companies were Great Eastern Shipping Company, which showed outstanding performance figures, with the company recording an impressive increase of 159.4% in consolidated profit in FY2021 compared to last year to reach ₹1,308.8 crore, backed up by a 66.9% increase in revenue. Another good performer was KEI Industries with a 40% increase in profit and 23% rise in revenue.
Indian Renewable Energy Development Agency (IREDA) has been maintaining its high pace of growth with a 37.1% profit increase and a 24.1% increase in net interest income.
SBI Funds Management showed steady earnings growth with a 3.7% increase in profit and 15.2% in revenue.
Mixed Earnings Across Sectors
The results from various companies have been inconclusive. DLF recorded a mere 4.1% rise in its profits even as its revenues fell by 52.9%, highlighting the effect of revenue recognition from projects. For Torrent Power, the situation was no different, as it registered a 12.7% drop in profits even as revenues grew marginally.
In the healthcare industry, Krishna Institute of Medical Sciences (KIMS) recorded an astounding 47.2% fall in its profits even as its revenues rose by 35.3%. In the consumer segment, GlaxoSmithKline Pharmaceuticals, Kansai Nerolac Paints, and Gulf Oil Lubricants recorded impressive growth in revenues and profits, but DOMS Industries reported a drop in its profits despite revenues rising by close to 20%.
Corporate Actions to Drive Trading
Other than the earnings, there were certain company developments that were likely to impact sentiment.
Paytm might face more pressure going forward in light of the news that SAIF Partners is set to offload a 2.3% stake at a price of around ₹2,002 crore through block deals. Likewise, Meesho was likely to garner more attention considering that existing investors, Peak XV Partners, and Elevation Capital were set to offload a combined 2.3% stake through block deals.
LIC would continue to be in focus as the Government is set to undertake an Offer for Sale (OFS) of up to 6.5% equity, with a floor price of ₹382 per share.
Fundraising, Orders and Management Changes
Arvind has floated its QIP issue with an offer floor price of ₹518.58 per share to collect funds.
The infrastructure firm, VVIP Infratech, received a Letter of Intent worth ₹198.50 crore for its sewerage project in Delhi, which will ensure good visibility for the next two years.
In another development, the agro-chemicals giant, UPL, said that its subsidiary company, UPL Corporation, would lose its CEO, Mike Frank, on August 31, 2026, due to the latter’s decision to move to the US.
