Companies and stocks to track today: August 20

KS Badri Narayanan Chennai | Updated on August 20, 2020

Some of the scrips that will likely see some action

Aarti Drugs: Bonus meet eyed

The board of directors of Aarti Drugs will meet on Thursday to consider a proposal for issue of bonus shares. In 2015, the company had rewarded its shareholders with a 1:1 bonus shares.

For the quarter ended June 2020, Aarti Drugs had posted a net profit of Rs 73.03 crore on revenues of Rs 475.55 crore.

Shareholders would be keen to find out the bonus ratio and record date.

Cabinet not may energise power companies

Shares of power generators and distributors such as NTPC, Power Grid Corportation, SJVN, Tata Power, NLC India, Adani Power, CESC, Orient Green Power, Indo Wind Energy, and others may remain in focus following the Cabinet decision easing borrowing norms for States to help them repay dues to power generators and spur cashflows in an industry struck by the pandemic.

Power Finance Corp and REC Ltd will extend loans to electricity retailers beyond the threshold limit for working capital needs, Prakash Javadekar, Information and Broadcasting Minister, said at a media briefing after the Cabinet met.

The borrowing limit for working capital by state distribution companies was capped at 25 per cent of their prior year’s revenue, according to rules set by a 2015 debt recast plan. The threshold has come in the way of some states benefiting from a Rs 90,000 crore loan programme for power retailers.

Market participants’ focus will also be on PFC and REC.

Price hike may not hit sugar stocks

The Cabinet on Wednesday approved raising the price that sugar mills must pay for cane in the next season beginning October 1, to Rs 285/100 kg, up from Rs 275 a year earlier.

The government raises the floor price for cane every year.. However, as Street expectation were much higher, the 'token' increase may not hit sugar companies much, say analysts.

Sugar stocks such as Balrampur Chini, Bajaj Hindusthan, EID Parry, Dhampur Sugars, Bannari Amman Sugars, Ravalgaon, Mawana Sugar and Dwarikesh Sugar will remain in focus.

Key Results: IOB, MOIL

Over two dozen companies will declare results on Thursday for the quarter ended June 2020. Among them are Accelya Solutions, Bliss GVS, Electrotherm, Healthcare Global Enterprises, IMPAL, J Kumar Infraprojects, Lincoln Pharma, MOIL, McDowell Holdings, Madhucon Projects, Sheela Foam, Shree Ganesh Forgings, Swelect Energy Systems, Sirca Paints and Valecha Engineering.

Focus on RBL Bank fund raising plans

The board of directors of RBL Bank will meet on Thursday to consider and if thought fit, to approve raising of funds by way of issue of equity shares of the bank on a preferential basis.

Shareholders will closely monitor the size and price of the issue. Besides, they would be keen to know the details of investors who will be allotted shares.

Published on August 20, 2020

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