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SGX Nifty Signals Strong Opening | Why PI Industries Share Price is Rising | Balrampur Chini Buyback | Top Buzzing Stocks Today
Fri, 11 Nov Pre-Open

Why PI Industries Share Price is Rising | Balrampur Chini Buyback | Top Buzzing Stocks Today

On Thursday, Indian share markets witnessed negative trading activity throughout the day and ended lower.

Benchmark indices fell tracking negative cues from the global markets, ahead of US inflation data.

Index heavyweight Reliance Industries, automobile and IT stocks remained under pressure.

At the closing bell on Thursday, the BSE Sensex stood lower by 420 points (down 0.7%).

Meanwhile, the NSE Nifty closed down by 129 points (down 0.7%).

HDFC Bank, Bharti Airtel, and Kotak Bank were among the top gainers.

Axis Bank, Tata Motors, and Titan on the other hand, were among the top losers.

Broader markets ended on a negative note with BSE Mid Cap index falling 1.1% while the BSE Small Cap index ended 1% lower.

All sectoral indices ended on a negative note with stocks in the auto sector, metal sector, and consumer durables sector witnessing selling pressure.

Shares of Federal Bank, Bank of Baroda, and Union Bank hit their 52-week high.

Note that chartist Brijesh had highlighted in his Wednesday's note that there's a good chance HDFC Bank might underperform the Bank Nifty index. While PSU Bank index is coming out of the woods with stupendous gains.

No wonder shares of PSU banks are hitting 52-week highs.

The rupee was trading at 81.78 against the US$.

Gold prices for the latest contract on MCX were trading up by 0.1% at Rs 51,556 per 10 grams at the time of Indian market closing hours on Thursday.

At 7:45 AM today, the SGX Nifty was trading up by 284 points or 1.6% higher at 18,380 levels.

Indian share markets are headed for a gap-up opening today following the trend on SGX Nifty.

Speaking of stock markets, Richa Agarwal talks about 3 smallcaps stocks that could potentially benefit from diversification into non core businesses.

Top Buzzing Stocks Today

Neuland Labs will be among the top buzzing stocks today.

The company reported record earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 23.6% in the July-September quarter.

For the quarter ended 30 September 2022 margins too improved by 690 bps year-on-year (YoY), due to shift in business mix towards higher margin products as well as various cost optimization initiatives.

Market participants will also track the share price of Axis Bank.

According to the lender's exchange filing, the government, via Specified Undertaking of the Unit Trust of India (SUUTI), will offload 46.5 million shares, representing 1.6% stake, in the company on 10 and 11 November.

On 10 November 2022, for non-retail investors only and on 11 November 2022 for retail investors and for non-retail investors, including who choose to carry forward their un-allocated bids.

With the sale, the government would completely exit the private sector lender. The government, at the current market price, is expected to realise Rs 400 bn (Rs 4,000 crore) from the share sale.

Why PI Industries Share Price is Rising

Shares of PI Industries have been trading around record high level after the company reported a healthy set of earnings for the second quarter ended September 2022 of the current financial year.

The company reported revenue growth of over 30% from the year ago quarter to Rs 17.7 bn. The revenue from domestic formulation was up 36% year-on-year (YoY) to Rs 4.9 bn.

Its gross margin stayed constant at 45.2% while EBITDA margin expanded 284 bps YoY to 24.4%. Meanwhile, its net profit rose 46% YoY to Rs 3.3 bn, driven by strong operational efficiency. Trend of rising input costs and pass through continued both in exports and domestic during Q2.

Incorporated in 1947, PI Industries focuses on complex chemistry solutions in agri and pharma sciences. The company maintains a strong research presence through its R&D facility in Udaipur, where it has a dedicated team of over 300 scientists.

The revenue of the company can be subdivided into custom synthesis manufacturing (CSM) and domestic agrochem formulation business with the former contributing around 74% to overall revenue in the financial year 2022-23 and the rest coming from the domestic formulations business.

PI Industries is one of the high growth companies with huge capex plans.

Balrampur Chini announces share buyback

While announcing its second quarter earnings for the current financial year, Balrampur Chini said that its board also approved the buyback of equity shares of the company worth Rs 1.5 bn at Rs 360 per share, which is at a premium over the current market price, through the open market route.

The maximum buyback size represents 5.4% and 5.42% of the aggregate of the total paid-up equity capital and free reserves based on the audited standalone and consolidated financial statements, respectively, for last financial year ended on 31 March 2022.

A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price.

It can be an alternative tax-efficient way to return money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS).

The company reported a net loss of Rs 290 m in the quarter ended September 2022 as against net profit of Rs 830 m during the previous quarter ended September 2021.

Meanwhile, its revenue declined over 8% to Rs 11.1 bn during the quarter under review as against Rs 12.1 bn in the year ago quarter.

Founded in 1975, Balrampur Chini Mills is one of the largest sugar manufacturing companies in India. It is also one of the top ethanol stocks in India.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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