Stock Market LIVE Updates: GIFT Nifty indicates a gap-up start; US, Asian markets gain

Pharma majors Bayer Pharmaceuticals Private Limited and Zydus Lifesciences Limited (formerly Cadila Healthcare) on May 2 announced the conclusion of their joint venture (JV) – Bayer Zydus Pharma Private Limited (BZPPL). The announcement came after Bayer acquired the remaining 25 percent stake in Bayer Zydus Pharma to secure full ownership.

The 50:50 joint venture was established on January 28, 2011, for the sales and marketing of pharmaceutical products in India. Bayer is now securing full ownership of the entity, as per pre-agreed JV terms.

The JV successfully leveraged the strengths of both companies to better serve the fast-growing Indian market, said the company in a release. Read More

Kotak Mahindra Bank, Mahindra & Mahindra Financial Services, Avenue Supermarts, IDBI Bank, Birla Corporation, Jammu & Kashmir Bank, Kansai Nerolac Paints, Nagarjuna Fertilizers and Chemicals, and Zen Technologies will announce January-March quarter earnings on May 4.

Titan Company, Britannia Industries, Tata Technologies, Aarti Drugs, Adani Green Energy, Aptus Value Housing Finance India, Godrej Properties, Inox Green Energy Services, Inox Wind, JSW Infrastructure, MRF, and Raymond will release March FY24 quarter earnings on May 3.

Adani Enterprises Ltd on Thursday said that the company received two show cause notices from markets regulator Securities and Exchange Board of India (Sebi) as part of its ongoing investigation in Hindenburg’s report against the conglomerate.

In its Q4 earnings release, Adani Enterprises said that during the quarter ended March 31, 2024, the company received notices from Sebi alleging non-compliance with provisions of the Listing Agreement and LODR (Listing Obligations and Disclosure Requirements) Regulations pertaining to related-party transactions with respect of certain transactions with third parties as well as the validity of peer review certificates of statutory auditors with respect to earlier years. Read More

Coal India Ltd (CIL) on May 2 reported a 26-percent rise in consolidated net profit at Rs 8,640.5 crore for the quarter ended March 31, 2024. The government-owned company had reported a net profit of Rs 6,869.5 crore in the year-ago period.

There was rise in CIL’s bottom line despite its revenue from operations falling nearly 2 percent to Rs 37,410.4 crore in the quarter under review, from Rs 38,152.3 crore in the same quarter last year.

Moreover, CIL’s consolidated sales also fell to Rs 39,654.4 crore in the January-March period from Rs 40,371.5 in the corresponding period of the previous fiscal year, a decrease of 1.8 percent.

The state-owned company also said that the board has declared its third interim dividend for the financial year 2023-24 at Rs 5 per share. Read More

#1 Cigniti acquisition drives 6 percent cut in FY24-26 EPS CAGR

#2 Although acquisition adds capabilities, geography & vertical diversification

#3 Associated dilution outweighs gains from integration

Coforge is set to acquire a 54-percent stake in Cigniti Technologies at Rs 1,415 per share, the company informed the exchanges on May 2.

The share price of Rs 1,415 represents a premium of 3 percent over Cigniti’s May 2 closing price of Rs 1,372.65 on the BSE.

The firm, which has signed a definite agreement with the IT services management company, believes the acquisition will improve company’s operating margins by 150-200 bps by FY27 and help it grow to a $2-billion company. Read More

#1 Q4 missed estimate on lower than expected margin

#2 Company did not offer growth guidance for FY25, implying higher uncertainty

#3 Large acquisition adds another layer of execution risk, warranting a de-rating

#4 Imminent QIP should be an overhang as well

#5 Cut estimate by 11-16 percent

#1 The PSU Banks sector is trading at a P/B of 1.4x, 64 percent premium to its historical average of 0.8x

#2 The Healthcare sector is trading at a P/E of 30.9x, 15 percent premium to 10-year average

#3 The Capital Goods sector is trading at 45.6x one-year forward P/E, above its 10-year average of 31x, which is 47 percent premium