The stock market is expected to witness some action today as several companies are set to announce their quarterly results, corporate actions, and other developments. Among them, Infosys, TCS, Grasim Ind, LTIMindtree, NBCC, and HFCL are some of the stocks that investors should keep an eye on. Here are the details of these stocks and why they are in focus today.
Infosys and TCS: Q3 results and buyback
Infosys and TCS, the two IT giants, are scheduled to declare their third-quarter results for the financial year 2023-24 today. Both the companies are expected to report strong revenue growth and margin expansion, driven by robust demand for digital transformation and cloud services. Analysts also expect the companies to raise their revenue guidance for the full year, given the positive outlook and deal pipeline.
Apart from the results, Infosys and TCS are also likely to announce buyback of shares, as part of their capital allocation policy. Infosys has already obtained approval from the board and shareholders for a buyback of up to Rs. 9,200 crore, at a maximum price of Rs. 1,750 per share. TCS is also expected to announce a buyback of up to Rs. 16,000 crore, at a premium of 10-15% to the current market price. The buyback announcements are expected to boost the sentiment and the share price of the companies.
Grasim Ind: Merger with Aditya Birla Capital
Grasim Ind, the flagship company of the Aditya Birla Group, is expected to announce the merger of its financial services arm, Aditya Birla Capital, with itself today. The merger is aimed at simplifying the group structure and unlocking value for the shareholders. According to reports, the swap ratio for the merger is likely to be 1:1, which means that for every one share of Aditya Birla Capital, the shareholders will get one share of Grasim Ind. The merger will create a diversified conglomerate with interests in cement, textiles, chemicals, telecom, and financial services.
LTIMindtree: Q3 results and dividend
LTIMindtree, the engineering and construction major, is also slated to announce its third-quarter results today. The company is expected to report a healthy growth in revenue and profit, driven by strong execution and order inflow. The company had secured orders worth Rs. 31,814 crore in the second quarter, and has a robust order book of Rs. 3.31 lakh crore as of September 30, 2023. The company is also expected to announce a dividend of Rs. 18 per share, as per its dividend distribution policy.
NBCC: Land monetisation deal
NBCC, the state-owned construction and real estate company, is in focus today as it has signed a memorandum of understanding (MoU) with the Greater Noida Authority for the development and sale of land parcels in Greater Noida. The MoU entails the development of 1,000 acres of land for various purposes, such as residential, commercial, institutional, and industrial. The estimated value of the land is Rs. 25,000 crore, and NBCC will get a fee of 10% of the sale proceeds. The deal is expected to boost the revenue and profitability of NBCC in the coming years.
HFCL: Q3 results and bonus issue
HFCL, the telecom equipment and optical fibre manufacturer, is also set to declare its third-quarter results today. The company is expected to report a strong growth in revenue and profit, driven by the increased demand for its products and services amid the digital transformation and 5G rollout. The company had recently bagged orders worth Rs. 2,467 crore from Bharat Sanchar Nigam Ltd (BSNL) for the BharatNet project.
Apart from the results, HFCL is also likely to announce a bonus issue of shares, as per the media reports. The bonus issue is expected to be in the ratio of 1:1, which means that the shareholders will get one bonus share for every one share held by them. The bonus issue is expected to increase the liquidity and attractiveness of the shares.
