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Tata Steel beats estimates with 7.5x growth in Q2 profit

by 5paisa Research Team 12/11/2021

Tata Steel Ltd, India’s largest steel company by revenue, posted better-than-expected results for the quarter ended September 30 with profit coming ahead of what analysts had projected while sales matched street estimates.

Consolidated net profit jumped more than seven-fold to Rs 12,548 crore from Rs 1,665 crore a year earlier. Profit was up 28% from the previous quarter. Analysts had expected net profit to rise to around Rs 12,000 crore.

Consolidated turnover rose 55% to Rs 60,283 crore during the three months ended September 30, 2021 from Rs 38,940 crore a year earlier.

Tata Steel’s share price has more than tripled over the last 12 months to hit a peak in August and has corrected since then. It was down 1.1% and was quoting at Rs 1,284.6 apiece on the BSE in a weak Mumbai market on Friday.

The company’s results were declared after trading stopped for the day on Thursday.

Tata Steel Q2: Other Highlights

1) Consolidated adjusted EBITDA increased 12% QoQ to Rs 17,810 crore; it grew over three-fold from Q2 FY21.

2) Gross debt decreased to Rs 78,163 crore with repayments of Rs 11,424 crore in H1 FY22.

3) Net debt declined to Rs 68,860 crore; net debt to EBITDA improved to 1.21.

4) India crude steel production increased 2.2% QoQ and 3.1% YoY to 4.73 million tonnes.

5) Global steel production rose 7% YoY to 7.77 million tonnes.

6) India deliveries declined 9% YoY but increased 11% QoQ to 4.58 million tonnes despite demand contraction amidst seasonal weakness.

7) Sales volume to automotive segment increased 18% QoQ despite semiconductor shortage-driven weakness in the sector.

8) Consolidated deliveries declined 6.8% YoY but rose 3.9% to 7.39 million tonnes.

9) Revenue at Tata Steel Europe increased 11% QoQ and 50% YoY to £2.1 billion in Q2 FY22

10) EBITDA at Tata Steel Europe jumped 2.2 times QoQ to £328 million. This translates to EBITDA per tonne of £153.

Tata Steel management commentary

TV Narendran, CEO and managing director, said Tata Steel delivered strong results across key regions in the seasonally weaker quarter. He said steel deliveries in India expanded 11% despite a contraction in demand.

Performance in key segments such as auto was robust despite the sector being impacted by the chip shortage while European operations also delivered robust performance underpinned by strong improvement in realizations, he said.

“We are watchful of the elevated coal prices and high energy cost as key risks to margins going forward,” he added.

Koushik Chatterjee, executive director and chief financial officer, said the operating cash flows continue to be strong despite working capital pressure due to price effect on coal price increase in recent months.

“We signed and closed the divestment of our 100% holding in NatSteel Holdings in this quarter to realise around Rs 1,200 crore that resulted in a realised gain of Rs 720 crore for the quarter,” he said.

“As part of our enterprise strategy, we continue to deploy the free cash flows for de-leveraging the balance sheet with Rs 11,424 crore of debt repayment in the first half of the current financial year and are targeting additional, aggressive deleveraging in the second half as well,” Chatterjee added.

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These penny stocks are locked in the upper circuit on Friday, November 12!

These penny stocks are locked in the upper circuit on Friday, November 12!
by 5paisa Research Team 12/11/2021

The BSE Sensex is seen trading above the important psychological levels of 60000 on Friday. The IT stocks are seen outperforming the markets in today's trading session with Tech Mahindra leading the list of BSE Sensex gainers.

The broader markets are seen underperforming the frontline indices in the Friday trading session.

The shares of Indian Hume Pipe are seen trending higher. Indian Hume Pipe is the top BSE Smallcap index gainer, up by more than 11% today on an intraday basis. CRISIL is the top BSE Midcap gainer, trading higher by more than 3%.

The shares of BCG are seen locked in the lower circuit after it opened with a gap up to lock in the upper circuit. IT stocks such as KPIT, Infosys, Wipro and Birla Soft are seen outperforming markets on Friday on an intraday basis.

The shares of ADANI Transmission, Adani Green and Torrent Power are seen trading with positive momentum.

Several penny stocks are also seen outperforming markets with a few of them locked in the upper circuit.

Following is the list of penny stocks locked in the upper circuit on Friday: 

Sr No   

Stocks   

LTP   

Price Change (%)   

1  

Unitech   

2.3  

4.55  

2  

Sintex Industries   

8.45  

4.97  

3  

FCS Software   

1.65  

3.13  

4  

Orient Green Power   

5.85  

4.46  

5  

SITI Networks   

2  

2.56  

6  

Llyods Steels  

7.95  

4.61  

7  

Gammon Infra   

1.55  

3.33  

8  

Prakash Steel   

3.35  

4.69  

9  

SREI Infra   

6  

4.35  

10  

Sundaram Multi Pap  

2.3  

4.55  

11  

JIK Industries   

0.7  

7.69  

12  

Ankit Metal and Power   

6.65  

4.72  

13  

CLC Industries   

1.55  

3.33  

14  

Sambhav Media   

3.75  

4.17  

15  

Viji Finance  

2.5  

4.17  

16  

Landmark Properties   

5.4  

4.85  

17  

Melstar Info   

6.15  

4.24  

18  

IL & FS Transport  

4.6  

4.55  

19  

Grand Foundry   

3  

3.45  

20  

Tantia Construction   

8.4  

5  

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Pancake Games token skyrockets over 1600% in just 24-hours!

Pancake Games token skyrockets over 1600% in just 24-hours!
by 5paisa Research Team 12/11/2021

The movement is above 1600% in the last 24-hours and is currently trading at USD 0.0000201.

Let’s move down the memory lane, remember when bottle caps weren’t an environmental scourge? As a kid, we collected them, played with them, and even traded them. The bottle lid was made of corrugated metal with a natural cork insert that sealed the glass bottle.

But, fast-forward the collection of bottle caps might be out of fashion, and the new fashion or trend is for collecting the cryptocurrency. Interestingly, the collection of cryptocurrencies is not restricted to the kids like it used to be for bottle caps, but it’s for all categories of ages and investors. This frenzy of collecting cryptocurrency has reached such a height that some cryptocurrencies are witnessing a movement of 10-20%, and this is just a cakewalk. However, in the last 24-hours we have seen some cryptocurrencies moving not 10, 100 or 200%, but a whopping over 1000%!

Yes, a mindboggling 1000%, you’ve heard it right and this is not even a typo mistake. Pancake Games (GCAKE) has zoomed over 1600% in just the last 24-hours. To be precise, the movement is above 1620.75% in the last 24-hours and is currently trading at USD 0.0000201.

What is Pancake Games?  

Pancake Games will give you the answer and provide information and tools to let users have an exclusive experience with Blockchain games. Pancake Games is an intelligent way to play the Blockchain game. Interestingly, by holding a token called GCAKE, users will increase their chances of winning various rewards. By staking GCAKE, for example, users will be able to receive priority for exclusive NFTs, pre-order new games, etc.

As per the pancake games website, it is mentioned that a total of 10 trillion tokens (GCAKE) are in supply and it has also been mentioned on the website that there will not be any additional issuing of GCAKE, so the total supply will not increase. In addition, with the burn mechanism at an unprecedented rate, GCAKE will be deflated in the short and long term.

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These Low-Priced stocks are locked in the upper circuit on Friday, November 12

These Low-Priced stocks are locked in the upper circuit on Friday, November 12
by 5paisa Research Team 12/11/2021

On Friday, some of the low-price shares were seen outperforming the markets.

The benchmark indices are seen trading in green. BSE Sensex is trading up, more than 200 points or 0.42% at 60,170.77 level.

Within the stocks in Sensex, Tech Mahindra is the top BSE Sensex gainer up by more than 2% catching attention while Bajaj Auto is the top BSE Sensex loser on Friday, plunging beyond 2.2%.

The broader market is seen underperforming in Friday’s trading session with BSE Midcap trading 0.05% lower and BSE Smallcap trading 0.16% down.

Asahi India, Indian Hume Pipe, Ahluwalia Contracts(India), Prozone Intu Properties and Mayur Uniquoters are among the top BSE smallcap index gainers on Friday.

Kansai Nerolac, Crisil, Jubilant Foodworks, Oil India and Astral are the top-performing BSE Midcap index constituents. Endurance Technologies is experiencing the highest drag in the BSE Midcap stocks pack on Friday.

The sectoral indices are also depicting a bullish trend in Friday’s trading session with BSE Telecom Index up by more than 1%.

The price-volume breakout is seen in some of the low-priced stocks on Friday with several stocks locked in the upper circuit.

Following is the list of low-priced stocks that are locked in the upper circuit in Friday’s trading session:

Sr No   

Stocks   

LTP   

Price Change (%)   

1  

3i Infotech   

70.05  

4.94  

2  

Energy Dev Co   

12.95  

4.86  

3  

Indowind Energy   

13  

4.84  

4  

Hilton Metal   

17.05  

4.92  

5  

Prozone Intu Properties   

29.8  

9.96  

6  

Digjam   

47.05  

4.91  

7  

GTL   

16.35  

4.81  

8  

Soma Textile   

11.95  

4.82  

9  

SPML Infra   

12.2  

4.72  

10  

Kotyark Industries   

55.7  

5  

11  

Omkar Speciality   

29.1  

4.86  

12  

Goldstone Technology   

47.7  

4.95  

13  

Vineet laboratories   

88.25  

5  

14  

SE Power   

15.1  

4.86  

15  

Megasoft   

23.95  

4.81  

16  

Archidply Industries   

41.05  

4.99  

17  

Sikko Industries   

75.9  

4.98  

18  

ART Nirman   

70.65  

4.98  

19  

Party Cruisers   

23.65  

4.88  

20  

Innovative Tyres & Tubes   

12.15  

4.74  

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Explained: SEBI’s new rules on silver ETFs for mutual fund investors

by 5paisa Research Team 12/11/2021

The Securities and Exchange Board of India (SEBI) has tweaked the rules for the introduction of silver exchange-traded funds (ETFs), a move the capital markets regulator hopes will channel more investments into the precious metal via mutual funds. 

The development is significant since up until now mutual funds in India have been allowed to launch only gold ETFs. 

What exactly is an ETF?

An ETF is basically a security instrument that tracks an index, commodity, sector or any other asset class. An ETF’s value fluctuates in tandem with the fluctuations in the value of the underlying asset or commodity it is tracking.

ETFs can be traded on exchanges just like stocks and bonds. ETFs can either track a single kind of underlying commodity or asset class or can track several different types of investments at the same time. 

What exactly has SEBI done now?

SEBI has amended the rules to enable the introduction of silver ETFs. The regulator has said that a silver ETF scheme means a mutual fund scheme that invests primarily in silver or silver-related instruments which have the white metal as the underlying product.

“Mutual fund schemes investing in exchange-traded commodity derivatives may hold the underlying goods in case of physical settlement of such contracts,” SEBI has said. 

Where will the underlying assets actually be kept?

SEBI has mandated that in case of silver ETFs, the assets of the scheme being silver or silver-related instruments may be kept in the custody of a custodian registered with the regulator. 

Are there any restrictions on the silver ETF schemes that will now be introduced?

Yes, these schemes will be subject to some restrictions. The funds of any such scheme will be invested only in silver or silver-related instruments in accordance with its investment objective and the mutual fund may invest such funds in short-term deposits of scheduled commercial banks, the market regulator has mandated.

But how will the underlying asset held by such ETF schemes actually be valued?

The regulator has said that silver held by a silver ETF scheme will be valued at the AM fixing price of London Bullion Market Association (LBMA) in US dollars per troy ounce for silver having a fineness of 999.0 parts per thousand.

What do analysts feel about the latest move by SEBI?

Analysts say the new move will allow investors to diversify their portfolios and add silver as an investment option in the mix.

“Additionally, it will help investors to diversify their portfolio as part of their asset allocation, due to low correlation with other asset classes,” Hemen Bhatia, deputy head of ETF at Nippon Life India Asset Management Ltd, told The Economic Times. 

Chintan Haria, product and strategy head at ICICI Prudential Asset Management Company, told The Hindu Business Line that people in India traditionally have been investing in gold and silver physically as they are considered to have a store of value. “Since silver is bulky in nature and hence difficult to store, we believe the ETF form will be one of the preferred ways for investors to take exposure to silver in financial investment form,” he added.

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GAIL Q2- Net profit up 131% despite high LPG prices| Is it worth investing in?

by 5paisa Research Team 12/11/2021

GAIL is India’s largest gas marketing and transport firm and they also own a petrochemical plant. The company is owned by the Government of India.

GAIL’s Q2 displayed an EBITDA of Rs.34.8 billion, a 44% quarter-on-quarter (QoQ) increase. This can be attributed to very a very strong marketing segment as the LNG prices doubled in this quarter, to $18/mmbtu. GAIL has a long position in several long term LNG contracts and it disposes almost 2-2.5mmtpa internationally on a yearly basis, to mitigate the risk.

There was a huge jump in the Q2 profits due to the natural gas marketing returning to black. The segment posted a pretax profit of Rs.1079 core which is in sharp contrast to the Rs.364 crore loss that was reported last year in Q2.

The company’s net profit doubled to Rs.2,863 crore (Rs.6.45 per share) due to this as this segment started making money for the company again. The net profit 131% higher than Q2 FY21. The revenue from operations increased by 57.65% to Rs.21,515.30 crore. The natural gas transmissions segment was more or less flat.

The petrochemical business witnessed a profit of Rs.364 crore. The EBIT was up 163% QoQ to Rs.3.6 billion. The sales volume was up by 2%. The transmission segment saw an EBIT increase of 14% QoQ to Rs.10.4 billion.

The LPG segment was a great disappointment as the growth is 17% below analyst’s estimate. The sales volume is 1% lower than last quarter. The LPG/LHC production has been 20%-50% lower. As the company diverted by-product propane to the petrochemical segment as feed stock and this led to a lower than average realization for LPG. It can be noted that the LPG prices have increased recently and have been firm recently.

According to the Chairman and Managing Director Manoj Jain, the capex for GAIL in the first half of the year was Rs.3180 crore mainly on petrochemicals, equity and pipeline.  Analysts are worried about the FY23 due to a cascading effect. As winter is nearing, the international gas prices have already started increasing and this will negatively impact the feed stock costs for petrochemical and LPG. This will in-turn lead to the petrochemical profitability decreasing significantly.

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