Rallis India loses 5% in Q1 & more on market news

Maruti’ SUV drive trigger renewed optimism in the stock

Maruti Suzuki Ltd. has recently launched three new SUV models: Jimny, Fronx, and Invicto, which have received encouraging initial responses. Analysts predict that Maruti Suzuki will become the volume market share leader in the SUV space by the end of the fiscal year. They even suggest that Maruti Suzuki might become better known as an SUV player rather than a leader in the compact car segment, which has been its historical strength.

Maruti Suzuki's new SUV models have generated substantial demand, with an outstanding order book of 55,000 units for Fronx and Jimny. Invicto, an adaptation of Toyota's Hycross, is also expected to sell 2,000-2,500 units per month. Analysts anticipate significant incremental sales from these new models, projecting a 14 percent increase in volume growth in FY24 and an 11 percent growth in FY25.

Rallis India net profit falls 5% in Q1

Rallis India, a subsidiary of Tata Chemicals and a provider of agri-inputs, reported a 5 percent year-on-year decline in net profit to Rs 63 crore in the April-to-June quarter. The company attributed this decrease to factors such as delayed monsoon and declining fertilizer costs. Its revenue from operations also dropped by 9 percent to Rs 782 crore compared to the same period last year when it stood at Rs 863 crore.

In the seeds business, Rallis India experienced a 2 percent decline in revenue, amounting to Rs 262 crore in Q1FY23. To mitigate the impact, the company reduced its expenses by 13 percent to Rs 700 crore during the April-to-June quarter.

Sheela Foam shares zoom 11%

On July 17, at 12:43 pm, Sheela Foam Limited witnessed a significant surge in its stock price, rising by 11 percent to reach Rs 1,241. During this time, 30,000 shares were traded on the National Stock Exchange (NSE). The boost in stock price followed a report by Moneycontrol, which stated that Sheela Foam Limited intends to acquire its rival, Kurlon Enterprise, for a total amount of Rs 2,150 crore. This acquisition will be completed in one go, deviating from the original plan of paying Rs 3,250 crore in two tranches.

The market response to this news was highly positive, resulting in a notable increase in Sheela Foam Limited's stock price. The acquisition of Kurlon Enterprise is expected to have a significant impact on the company's business and growth prospects. Sheela Foam Limited, a leading manufacturer of mattresses and foam-based products, is taking strategic steps to strengthen its position in the market and capitalize on potential synergies that the acquisition can bring.

Bandhan Bank declines 3% in Q1

Bandhan Bank witnessed a decline of over 3 percent in its share price during early trade on July 17, following the release of its disappointing earnings report for the April-June quarter. The bank's net profit for the quarter dropped by 19 percent to Rs 721 crore compared to Rs 886 crore in the same period last year, missing the estimated figure of Rs 761.4 crore. Additionally, its net interest income decreased by approximately 1 percent to Rs 2,490.8 crore, falling short of the estimated amount of Rs 2,572.9 crore. The bank's asset quality also deteriorated, with gross non-performing assets (NPAs) increasing to 6.76 percent and net NPAs rising to 2.18 percent, both higher than the previous quarter. The disappointing earnings and worsened asset quality contributed to the decline in Bandhan Bank's share price during early trading.

Conclusion

In today's market update, the Nifty 50 and Sensex showed positive gains, with the Nifty 50 trading up 0.78% and the Sensex up 0.77%. Maruti Suzuki's foray into the SUV segment has sparked optimism, with the company launching three new SUV models and garnering strong initial responses. Rallis India reported a 5% decline in net profit for the April-June quarter, citing delayed monsoon and falling fertilizer costs as contributing factors. Sheela Foam shares surged by 11% after announcing plans to acquire rival Kurlon Enterprise. However, Bandhan Bank experienced a 3% decline in its share price due to disappointing Q1 earnings and a deterioration in asset quality.

Source - Moneycontrol