Day: January 18, 2025

Dividend, Bonus, stock-split: Shares of Angel One, Havells India, Waaree Renewable Technologies, Blue Cloud Softech Solutions, BN Rathi Securities, and 7 other companies are set to be in focus next week between January 20, 2025, and January 24, 2025, for corporate actions such as dividends, stock splits, and bonus issues.  

According to data from the BSE, Angel One, Bhansali Engineering Polymers, Havells India, DCM Shriram, Mastek, Vidhi Specialty Food Ingredients, and Waaree Renewable Technologies will trade ex-date for dividend distributions.  

Meanwhile, Blue Cloud Softech Solutions, Nava, and Insolation Energy will trade ex-date for stock splits. BN Rathi Securities is scheduled to trade ex-date for both a stock split and the issuance of bonus shares.

Stocks to trade ex-date next week for dividend announcements: 

Angel One

Shares of stockbroking and allied services provider Angel One will trade ex-date on Tuesday, January 21, 2025, following the announcement of a dividend of Rs 11 per share for its shareholders. The company has also fixed January 21, 2025, as the record date for determining shareholder eligibility for the said corporate action. 

Bhansali Engineering Polymers, Havells India

Bhansali Engineering Polymers, and Havells India shares will trade ex-date on Wednesday, January 22, 2025, following dividend announcements of Re 1, and Rs 4 per share, respectively. The record date for both announcements has also been fixed as January 22, 2025.

Mastek, Waaree Renewable Technologies

Mastek, and Waaree Renewable Technologies will trade ex-date on January 24, 2025, following dividend announcements of Rs 7, and Re 1 per share, respectively. Both companies have fixed January 24, 2025, as the record date for determining shareholder eligibility for the said corporate actions. 

DCM Shriram, Vidhi Specialty Food 

DCM Shriram shares will trade ex-date on January 24, 2025. In an exchange filing, the company stated that its board meeting scheduled for January 18, 2025, will “consider the payment of the second interim dividend, if any, for the financial year 2024-25, and issuance of non-convertible debentures on a private placement basis.”

Similarly, Vidhi Specialty Food Ingredients’ board will meet on Monday, January 20, 2025, to consider and declare a third interim dividend for the financial year 2024-25, if any. As per the exchange filing, Friday, January 24, 2025, has been fixed as the record date for this purpose. 

Stocks to trade ex-date next week for subdivision (stock split) announcements: 

Blue Cloud Softech Solutions

Software products company Blue Cloud Softech Solutions has announced the subdivision/split of each fully paid-up equity share having a face value of Rs 2 each into 2 equity shares having a face value of Re 1 each. The company’s shares will trade ex-date on Monday, January 20, 2025, which is also the record date for determining shareholder eligibility for the subdivision/split.

Nava

Ferro-alloy producer Nava has announced the subdivision (stock split) of 1 equity share of face value Rs 2 each fully paid-up into 2 equity shares of face value Re 1 each fully paid-up. The company’s shares will trade ex-date on Monday, January 20, 2025, which is also the record date for determining shareholder eligibility for the subdivision. 

Insolation Energy

Power generation company Insolation Energy will trade ex-date on January 24, 2025, following the announcement of a subdivision (stock split) of its equity shares from 1 equity share having a face value of Rs 10 each fully paid-up into 10 equity shares having a face value of Re 1 each fully paid-up.

BN Rathi Securities

BN Rathi Securities will remain in focus due to announcements of a stock split and the issuance of bonus equity shares. The company, in an exchange filing, has announced that its board has approved the subdivision of 1 equity share of face value Rs 10 each fully paid-up into 2 equity shares of face value Rs 5 each fully paid-up. 

Additionally, BN Rathi Securities has announced the issuance of bonus shares in the ratio of 1:1, i.e., 1 new fully paid-up equity share of Rs 5 each for every 1 existing fully paid-up equity share of Rs 5 each held by shareholders. The company has fixed January 24, 2025, as the record date for determining shareholder eligibility for both corporate actions, which also marks the ex-date.

The ex-date is when a stock begins trading without the entitlement to dividends, subdivision (stock-split), or bonus shares. This means that on or after this date, the dividends, subdivision (stock-split), or bonus shares are not available to a new buyer of the stock. To qualify for these corporate actions, investors must own the stock before the ex-date. The beneficiaries of dividends, subdivision (stock-split), or bonus shares are determined based on the list of investors recorded by the end of the record date.

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Axis Bank Q3 results: A near wash-out quarter, with more misses than beats, has forced analysts to cut Axis Bank share price target for the next one year. They, however, see limited downside in the stock, falling back on valuation comfort. 

Nuvama Institutional Equities, for instance, has cut its one-year share target price on Axis Bank to Rs 1,220 from Rs 1,335 as the brokerage gave a thumbs down to Axis Bank’s muted deposit growth, net interest margin (NIM) contraction, lower fees, and a sharp rise in slippage and credit costs. 

“Gross slippages shot up 22 per cent quarter-on-quarter (Q-o-Q) in the December quarter (Q3FY25), higher than consensus estimate, to 2.2 per cent; and more than 1.8 per cent in Q2FY25 and 2 per cent in Q1FY25. Net slippages also surged 48 per cent Q-o-Q, with net retail slippages as a percentage of loans at 2.1 per cent versus 1.7 per cent Q-o-Q. Specific credit cost went up sharply from 58bp Q-o-Q to 86bp Q-o-Q, highest among large banks and highest since Covid,” the brokerage pointed out. On the bourses, Axis Bank share price tumbled 6.3 per cent intraday to hit a fresh 52-week low of Rs 974.45 per share. The stock ended 4.6 per cent weak in the BSE at Rs 992.45 per share as against a 0.55 per cent fall in the benchmark BSE Sensex index.

On Thursday, Axis Bank reported fresh slippages of Rs 5,432 crore for Q3FY25, up 46 per cent year-on-year (Y-o-Y) and 22.25 per cent Q-o-Q. This included Rs 4,923 crore from the retail portfolio; Rs 215 crore from SME (small and medium enterprise) business; and Rs 294 crore from wholesale business.

The bank’s loan-loss provisions shot up to Rs 2,185 crore in Q3 as against Rs 1,441 crore in Q2FY25 and Rs 691 crore in Q3FY24. 

It also saw worsening of asset quality during the recently concluded quarter with gross non-performing asset (GNPA) ratio at 1.46 per cent as against 1.44 per cent at the end of the September quarter. Net NPA ratio, too, rose to 0.35 per cent from 0.34 per cent in Q2FY25.

On the business front, Axis’ loan book grew 9 per cent Y-o-Y and 1.5 per cent sequentially to Rs 10.14 trillion, driven by 11 per cent Y-o-Y growth in retail loans. Deposits, too, increased 9 per cent Y-o-Y and 0.8 per cent Q-o-Q. The growth is below peers and industry average. 

Moreover, the bank’s loan-to-deposit ratio (LDR) rose from 92 per cent in Q2FY25 to 92.6 per cent this quarter. 

The management believes FY25 credit growth will be anchored by deposit growth/LDR, which, analysts think, is still a challenge.

NIM, too, contracted by 6bps Q-o-Q to 3.93 per cent, including 3bps Q-o-Q contribution from interest reversal on NPAs and 3bps due to higher liquidity coverage ratio (LCR; up by 400bps Q-o-Q to 119 per cent). 

“Credit growth moderation was mainly driven by slowdown in the bank’s retail book (including unsecured loans and corporate book), which is likely to stay soft amid liquidity and asset quality challenges. The management believes unsecured loan stress will remain elevated near-term, but seasonal stress in the agri portfolio should ease Q-o-Q. Building in the slower credit growth and higher loan provisions, partly offset by moderating opex, we cut earnings by 3-9 per cent over FY25-27E,” noted those at Emkay Global Financial Services.

The brokerage, too, has cut its share price target to Rs 1,300 from Rs 1,400, but retained its ‘Buy’ rating as it believes the stock has seen sharp correction recently (down 10 per cent in 3 months) and trades at relatively lower valuations of 1.3-times December, 2026, adjusted book value (ABV) for a bank still delivering healthy 1.7-per cent return on asset (RoA) and 14-16 per cent return on equity (RoE). 

Given the strong growth in Q4FY24 and slower accretion in 9MFY25, the base effect gets adverse in Q4FY25 on deposits and loan growth. So, even with higher Q-o-Q deposit growth, the YoY growth in deposits could fall further to 6 per cent Y-o-Y, cautioned analysts at Nuvama with a ‘Buy’ rating. 

“We keenly monitor near-term growth as the LDR is still high, which will constrain credit growth, while continued re-pricing of deposits may keep margins in check. We cut our FY26E/FY27E earnings by 4-5 per cent and estimate FY26E RoA/RoE of 1.6 per cent/14.6 per cent. While the near-term growth and asset quality performance will likely remain suppressed, reflecting the stress in the macro environment, we see limited downside risk from the current levels,” said analysts at Motilal Oswal Financial Services as it retained a ‘Neutral’ rating with a lower share price target of Rs 1,175. 

Axis Bank’s Q3FY25 net profit stood at Rs 6,034 crore, rising a meagre 4 per cent Y-o-Y. Its net interest income (NII) grew 9 per cent Y-o-Y/0.9 per cent Q-o-Q to Rs 13,606 crore.

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LTIMindtree shares slipped 3.4 per cent in Friday’s trade on BSE, logging an intraday low at Rs 1,832 per share. The selling in stock came after the company reported its Q3 numbers and brokerages were mixed.  

Around 9:36 AM, LTIMindtree share price was down 3.3 per cent at Rs 5,781.8 per share on BSE. In comparison, the BSE Sensex was down 0.42 per cent at 76,721.33. The market capitalisation of the company stood at Rs 1,71,306.37 crore. The 52-week high of the stock was at Rs 6,764.80 per share and the 52-week low was at Rs 4,518.35 per share. 

What brokerage recommend on LTIMindtree post Q3?

Nomura retained ‘Reduce’ on LTIMindtree and cut the target price to Rs 5,070 per share from Rs 5,090 

In the report, the brokerage also lowered its FY25-27F earnings per share (EPS) by over 1 per cent.  

“Our FY25-27F EPS are lower than consensus by 6-12 per cent mainly on account of lower margin expectations,” Nomura said.

Kotak Institutional Equities has retained its ‘Buy’ call on LTIMindtree for a target price of  Rs 6,750 per share.  

As per the analysts at Kotak LTIMindtree reported an interesting quarter with healthy revenue growth of 3.4 per cent in US dollar terms, ex-technology vertical, and record-high total contract value (TCV) of US$1.68 bn. 

They view the decline in the technology vertical due to the sharing of productivity gains with the top client as largely client-specific and expect reasonable growth after the stabilization in 4QFY25.  

However, they believe LTIMindtree is well-positioned to grow double digits in FY2026 and beyond, with steady market share gains. Further, cuts in growth and margin estimates lead to a 3-6 per cent FY2025-27E EPS cut. 

Centrum Broking also maintained ‘Buy’ on the stock but made a downward revision in its target price to Rs 7,188 per share from Rs 7,250 per share. 

The brokerage expects a sustained revenue growth momentum in Q4FY25, supported by a ramp-up of recently signed deals, AI project deployments, and a revival of discretionary spending in tech.  

The deal pipeline remains strong, driven by cost optimisation and vendor consolidation deals, providing medium-term visibility,” the reports read.  

According to reports, Citi maintained ‘Sell’ on LTIMindtree and cut the target to Rs 5,375, from Rs 5,460. Also, Macquarie maintained ‘Outperform’ with a target of Rs 7,100 and Morgan Stanley continued with an ‘Overweight’ rating with a target of Rs 6,800.

LTIMindtree Q3 results

The company reported its Q3FY25 results on Thursday after market hours. In the third quarter ended December 31, 2024, LTIMindtree’s net profit declined 13.2 per cent quarter-on-quarter (Q-o-Q) basis to Rs 1086.7 crore as compared to Rs 1,252 crore in Q2. On a year-on-year (Y-o-Y basis, the profit after tax (PAT) declined 7 per cent. 

The company’s revenue for the quarter under review stood at Rs 9,661 crore, up 2 per cent, as compared to Rs 9432.9 crore in Q2. On a yearly basis, the revenue rose 4.6 per cent.  

Besides, the company’s earnings before interest and tax (Ebit) stood at Rs 1,329 crore as compared to Rs 1,458 crore in Q2. Its Ebit margins stood at 13.8 per cent as compared to 15.5 per cent year-on-year (Y-o-Y).  

In the past one year, LTIMindtree shares have lost 5 per cent against Sensex’s rise of 7.7 per cent. 

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