Biocon Q4FY21 Performance, Indiamart Buys Stake in Shipway Technology, and Buzzing Stocks Today

Fri, 30 Apr Pre-Open | Monish Vora, TM Team

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Indian share markets ended on a flat note yesterday.

At the closing bell yesterday, the BSE Sensex stood higher by 32 points (up 0.1%).

Meanwhile, the NSE Nifty closed higher by 30 points (up 0.2%).

JSW Steel and Bajaj Finserv were among the top gainers.

Hero Motocorp and Eicher Motors, on the other hand, were among the top losers.

The BSE Mid Cap index ended down by 0.2%, while the BSE Small Cap index ended up by 0.1%.

Sectoral indices ended on a mixed note with stocks in the metal sector witnessing most of the buying interest.

Auto sector stocks, on the other hand, witnessed selling pressure.

Shares of JSW Steel and Bajaj Finserv hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading down by 184 points, or 1.2% lower at 14,745 levels. Indian share markets are headed for a gap-down opening today following the negative trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.4% at Rs 46,884 per 10 grams at the time of closing stock market hours yesterday.

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Top Stocks in Focus Today

Carborundum Universal will be among the top buzzing stocks today.

Carborundum Universal's net profit declined 2% to Rs 905.3 million in the quarter ended March 2021 as against Rs 923.3 million during the previous quarter ended March 2020.

The company's sales rose 28% to Rs 7,502.6 million in the quarter under review as against Rs 5,860.2 million during the previous quarter ended March 2020.

On a standalone basis, net profit declined by 8% to Rs 580 million from Rs 620 million in the year-earlier period.

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Income from operations jumped by more than 41% to Rs 5,030 million, driven by steady performance across business segments, the Murugappa group firm said in a filing.

For the full year, net profit rose 4.4% while sales rose 1.4%.

The company's board recommended a final dividend of Rs 1.50 per share.

Pharmaceutical company Morepen Laboratories share price will also be in focus today as the company's board has approved an investment proposed by Switzerland-based Corinth Group.

"The board of directors of Morepen Laboratories approved the investment proposed by Corinth Group, a global private investment Group to the extent of US$ 32.5 million in the parent company, Morepen Laboratories," the company said in the release.

The investment is part of a US$ 100 million investment in the promoter group, subject to the approval of the shareholders and other regulatory bodies, it added. The remaining US$ 67.5 million would be in the promoter group companies.

Following shareholder and regulatory approval, Corinth would be allotted 58.5 million new equity shares on a preferential basis. This shareholding would equate to a 9.4% equity stake in the company on a fully expanded capital base.

Biocon Reports 105% Growth in March Quarter Net Profit

In news from the pharma sector...

Biocon reported a 105% growth in its net profit to Rs 2.5 billion, while revenue grew 26% to Rs 20.4 billion during the March quarter on the back of higher growth in biosimilar business.

In the year-ago period, the Bengaluru-headquartered biopharma company had reported a net profit of Rs 1.2 billion.

The company reported a gain of Rs 1.6 billion arising on the fair valuation of Bicara Therapeutics Inc. due to loss of control from Subsidiary to Associate and is reported under "Other income" for the quarter.

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While Biocon's biosimilars business saw 53% growth in revenue to Rs 6.6 billion, its research services grew 8% to Rs 6.6 billion. The company's generics business grew 3% to Rs 5.8 billion.

For the fiscal year 2020-21, Biocon reported a 1% decline in net profit to Rs 7.4 billion while revenue grew 14% to Rs 73.6 billion.

Indiamart Intermesh to Buy 26% of Shipway Technology

Indiamart Intermesh, through its wholly-owned subsidiary, Tradezeal Online, has agreed to acquire 26% of the share capital of Shipway Technology on a fully converted and diluted basis. Indiamart will acquire 100 equity shares and 4,088 Convertible Preference Shares (CCPS) of the company.

Shipway Technology is engaged in developing SaaS-based solutions that allow small businesses to automate their shipping operations.

Indiamart Intermesh has also agreed to acquire 3% of the share capital of Truckhall on a fully diluted basis in addition to 22% of the share capital (on a fully diluted basis) already held by the company.

Truckhall is inter-alia engaged in the business of creating an online marketplace and software development for the logistics industry including running and managing a digital platform 'SuperProcure'.

Through its wholly-owned subsidiary, the company will purchase 1,779 equity shares for a total consideration of up to Rs 13.3 million for a price of Rs 7,477 per share from IIM Calcutta Innovation Park. This investment shall be in line with the Indiamart Group's long-term objective of offering various Software as a Service (SaaS) based solutions for businesses.

Indiamart Intermesh is India's largest online B2B marketplace for business products and services. The company makes it easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

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