Business News at 05:30 pm on 24th May, 2024

Let’s begin with the major update, Shares of Vodafone Idea surged over 10% on Friday to hit intraday high of Rs 15.70 on NSE, following a notable upgrade by brokerage firm UBS, elevating the telecom service provider’s rating from “neutral” to “buy” — the first such recommendation in almost a year. UBS projects Vodafone Idea’s shares to reach Rs 18 within the next 12 months, suggesting a potential upside of nearly 30% from Thursday’s closing levels. Additionally, in the event of governmental relief on pending dues, UBS envisions a substantial 70% to 80% upside potential for the stock. The brokerage notes that the market is factoring in a tariff hike of 15% to 20% over the next 12-24 months, post the closure of Vodafone Idea FPO.

Moving on, Organised gold jewellery retailers are expected to clock revenue growth of 17-19 per cent on-year in fiscal 2025, driven by higher realisations stemming from elevated gold prices, while volume will remain steady, stated a report by CRISIL Ratings. In order to combat the moderation in demand amid rising gold prices, the report added, retailers are likely to step up marketing and promotional campaigns this fiscal. Hence, operating profitability may marginally moderate 20-40 basis points on-year to 7.7- 7.9 per cent. Further, working capital requirements may rise, too, resulting from increased inventory due to a substantial rise in gold prices and new store additions. That said, per CRISIL, credit profiles should remain stable.

In other news, Salaried individuals receiving a house rent allowance as part of their salary can claim HRA exemption if they pay rent for their accommodation. This exemption lowers their taxable salary, either wholly or partially. But one question that usually arises is how one should claim full HRA exemption. Are both rent receipts and a rent agreement required as proof to make the claim? The HRA amount is shown in the salary slip of an employee and also the tax projection statement given by the employer at the start of the financial year. As it is part of the salary, the HRA amount deduction features in Part B of Form 16 provided by the employer.

Meanwhile, Awfis Space Solutions wants to raise Rs 598.93 crore from investors via a combination of fresh issues as well as an offer for sale. The company opened its IPO for subscription on May 22 and will close on May 27. It set the price band between Rs 363 to Rs 383 per equity share. The allotment is expected to be finalised on May 28, while the listing is tentatively scheduled on May 30. The company’s shares were attracting a premium of over 27% in the grey market. It is an unofficial place where stocks of companies exchange hands illegally ahead of listing. The grey market is tracked by investors to keep a check on IPOs.

Up next, Fortis Healthcare recorded a profit of Rs 203.14 crore during the fourth quarter of FY24, up 46.9 per cent in comparison to Rs 138.30 crore during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 1785.88 crore, up 8.7 per cent on-year as against Rs 1642.70 crore during the same period last year. While the company reported total income during the quarter at Rs 1795.68 crore, total expenses incurred during the quarter in review stood at Rs 1531.76 crore. The company board also recommended a final dividend of Re 1 per equity share (10 per cent of face value of Rs 10 each), for the financial year 2023-24, subject to approval of the members of the company.

Moving ahead, Interglobe Aviation’s share price surged almost 3% in the early trading session on Friday, as the company reported more than double the net profit, reaching Rs 1,895 crore in the Q4 results year-on-year. The shares soared as much as 2.83%, reaching an intraday high of Rs 4,529 per share on the NSE. India’s leading airline IndiGo, parented by InterGlobe Aviation, reported a 106% year-on-year (YoY) growth in its consolidated net profit, reaching Rs 1,895 crore for the fourth quarter, compared to Rs 919 crore in the same quarter last year. Revenue from operations increased 26% YoY to Rs 17,825 crore in the reporting quarter. EBITDAR for the reporting quarter rose 49% YoY to Rs 4,412 crore.

Lastly, let’s take a look how the stocks performed today. The benchmark equity indices ended Friday’s trading session in the negative territory. The NSE Nifty 50 dropped just 10.53 points or 0.05% to settle at 22,957.10, while the BSE Sensex ends marginally lower by 7.65 points or 0.01% to 75,410.39. The broader indices ended in mixed territory, with gain led by Largrcap and Midcap stocks. Bank Nifty index ended higher by 203.05 points or 0.42% to settle at 48,971.65. Media and Financial Services stocks outperformed among the other sectoral indices while Realty and FMCG stocks shed. HDFC Bank, L&T, Bharti Airtel, BPCL and Axis Bank were among the top gainers on the Nifty, while losers were Adani Ports, Tata Consumer, Tech Mahindra, Titan and M&M.