Stocks

Companies and stocks to track today: Oct 1, 2020

K.S. Badri Narayanan Chennai | Updated on October 01, 2020 Published on October 01, 2020

Scrips likely to see action: Automobile, fertiliser and multiplex stocks, Jindal Polyfilms, Shree Renuka Sugars and Infibeam Avenues

CAMS, Chemcon Speciality listing today

Shares of Computer Age Management Services and Chemcon Speciality Chemicals will make their debut on the bourses on Thursday. The initial public offering of CAMS was subscribed almost 47 times. The Rs 2,244-crore IPO was priced between Rs 1,229 and Rs 1,230 a share. The IPO is a pure offer-for-sale (OFS), and the company will not receive any proceeds. The Chemcon IPO saw a strong response from all categories of investors as the issue was subscribed by 149 times. While the retail category was subscribed 41 times, the QIBs’ portion got subscribed 114 times and HNIs’ window was subscribed 449 times. The issue came out with a price band of Rs 338 to Rs 340 a share.

 

 

Hopes of healthy automobile sales

Analysts expect sales volumes of automobile companies to show an upward trajectory, primarily aided by improving retail and inventory build-up with dealers ahead of the festival period. The expectation on the street is that the tractor, passenger vehicle and two-wheeler segments will show strong sales sequentially.

Though sales of most two-wheelers, passenger cars and tractors are likely to show a positive trend, marketmen expect commercial vehicles to remain under pressure.

Focus on Maruti Suzuki, Tata Motors, Ashok Leyland, Escorts, Eicher Motors, TVS Motor Company, Hero Moto Corp and Bajaj Auto.

Natural gas price cut: Fertiliser stocks may boom

The government has revised the domestic natural gas price under the New Domestic Gas Policy, 2014. The revised price will prevail from October 1 till March 31, 2021.

The major beneficiary could be fertiliser companies as natural gas is used a feedstock for the manufacture of urea. Shares such as Coromandel International, Chambal Fertilizers, GNFC, GSFC, RCF, Deepak Fertilisers and FACT may see some buying interest.

The price of urea is controlled by the government and is fixed at Rs 5,360/tonne. The government reimburses fertiliser manufacture by way of subsidies.

According to CARE Ratings estimates, a 25.1 per cent fall in natural gas prices could potentially lead to a 12 per cent decrease in cost of urea production, thus decreasing the working capital intensity of fertiliser manufacturers.

PVR, INOX Leisure may hog the limelight on reopening

Multiplex operators’ stocks such as PVR and Inox Leisure are likely to see buying interest, as the Ministry of Home Affairs has, under the new guidelines, permitted the opening of cinemas, theatres, and multiplexes with 50 per cent seating from October 15.

A standard operating procedure (SOP) for the sector will be issued by the Ministry of Information and Broadcast separately.

Theatre owners have long been waiting for the reopening. With the festival season ahead, the reopening will bring cheer to them, as they can prepare well for Diwali releases.

Will expansion plan add strength to Jindal Polyfilms?

The board of Jindal Polyfilms Ltd on Wednesday considered and approved its future expansion plan for the company by way of investment of Rs 450 crore approximately in Biaxially-Oriented Poly Propylene (BOPP) Film Line and BOPP Capacitor Line.

The company will invest in the 'best' technology and maximum output capacity equipment from globally renowned suppliers, it said in a statement to the stock exchanges.

Investors and market participants will focus on further announcements from the company on this front.

Shree Renuka Sugars to commence Haldia operations

Shree Renuka Sugars Ltd will commence operations at its port-based refinery at Haldia (West Bengal) in the first half of October, subject to its receiving all the regulatory approvals. The Haldia refinery can refine up to 2,000 tonnes of raw sugar per day, it said in a notice to the stock exchanges.

Shareholders will closely monitor further developments on this front.

Stake sale in arm may lift Infibeam

Infibeam Avenues has divested 51 per cent ownership with control in its wholly-owned subsidiary, Infibeam Logistics Pvt Ltd, to Osia Hypermart Retail Ltd. The consideration received from the sale is Rs 19 crore.

Osia is an emerging supermarket chain with a focus on value retailing.

Infibeam Avenues had posted a profit of Rs 3.18 crore in Q1 of FY21 on revenues of Rs 86.34 crore.

The stock may react positively to the development.

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Published on October 01, 2020
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