Companies and stocks to watch out for today: July 21

KS Badri Narayanan | Updated on July 21, 2020

Results action: Eyes on life insurers, HZL, Axis Bank, Bajaj Finance

Around 40 companies will declare their quarterly numbers today. Among them are Axis Bank, Bajaj Finance, Bajaj Finserv, Hindustan Copper, Hindustan Zinc, Indiamart, Mahindra CIE, Polycab, Shanthi Gears and Tata Elxsi.

It's a big day for insurance majors too: HDFC Life Insurance, ICICI Prudential Life Insurance and SBI Life Insurance will declare their financial performance.

Marketmen's focus will be on Hindustan Zinc. Apart from the result, the focus would be on any dividend or fund-raising announcements. There have been reports that the company may seek approval to raise loan for funding the Vedanta delisting offer. And that HZL may announce a dividend to grease the tracks for the delisting.

Expectations are also high in respect of Axis Bank, which had posted a loss in the March quarter. The Bank is widely seen to get back in black, but some expect to see see a sharp fall in the year-on-year profit figures. As the March quarter losses were mainly on account of heavy provisioning, analysts will closely monitor that figure.

Besides, Bajaj Finance and Bajaj Finserv, whose shares have risen to new highs, will attract market attention.

Majesco gets $420.66-million booster from US subsidiary sale.

Shares of Majesco are likely to remain in focus on Tuesday, due to the divestment of its US subsdiary. Promoters will distribute the entire proceeds (post taxes etc) to the shareholders in the form of buyback/dividend, expect marketmen.

The US arm of Majesco Ltd on Monday signed a definitive agreement to be acquired by Thoma Bravo, L.P, a PE firm, in a transaction valuing the company at $594 million. Following thIs, Majesco will operate as a privately held company.

As on date, Majesco holds 3.21 crore common stock of the US subsidiary. According to it, the US subsidiary trades at a significant premium to the company's market capitalisation.

As on July 17, 2020, the value of the company’s entire stake in the US subsidiary was $245.33 million, compared to the total market capitalisation of the company in India of $141 million. This implies a premium of 74 per cent over the market capitalisation of the company in India. The gross value to be received by the company for its stake in US subsidiary in the merger is $420.66 million, compared to the total investments made by Majesco in US subsidiary of $68.67 million, to date.

Published on July 21, 2020

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