Business News at 05:30 pm on 31st January, 2024

Let’s begin…Jubilant Foodworks, which operates Domino’s restaurants in India, on Wednesday reported its third quarter profit for the financial year 2023-24 at Rs 65.71 crore, down 18.2 per cent in comparison to Rs 80.36 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 1378.12 crore, up 3.5 per cent as against Rs 1331.82 crore during the third quarter of FY23. The company EBITDA stood at Rs 280 crore, down 2.2 per cent on-year. On a standalone basis, Jubilant Foodworks reported revenue from operations at Rs 1355.10 crore, up 2.9 per cent on-year. The growth, it said, was driven by Domino’s delivery channel sales which increased by 6.2 per cent.

Additionally…Dabur Ltd on Wednesday recorded its third quarter profit for the financial year 2023-24 at Rs 514.22 crore, up 8 per cent in comparison to Rs 475.94 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 3,255.06 crore, up 7 per cent as against Rs 3,043.17 crore during the third quarter of FY23, driven by steady performance of both the Home & Personal care and Food & Beverages businesses. The company EBITDA stood at Rs 667.6 crore, up 9.4 per cent on-year. Dabur’s International Business, meanwhile, reported a growth of 11.7 per cent in Constant Currency terms. The Nigeria business grew by 52 per cent, while the Turkey business was up 44 per cent.

Let’s talk market…In a recent report, Jefferies maintains its Buy rating on Larsen & Toubro (L&T), presenting a revised price target of Rs 4,135 per share, compared to the earlier Rs 4,200. The valuation is based on core Engineering & Construction (E&C) at 18x FY26E EV/EBITDA, considering consolidated PB of 5.4x and PE FY26E at 27.9x. Anticipating substantial growth, Jefferies foresees a 26% CAGR in core E&C EBITDA for FY23-26E, a notable increase from the 16% observed in FY15-19 when the company traded at 12x EV/EBITDA. The 3QFY24 results exceeded expectations, with EBITDA surpassing estimates by 2%, and order flow exhibiting an impressive 25% YoY growth. L&T’s management raised the FY24E order flow guidance to over 20% YoY growth.

Next up…The National Capital Region Transport Corporation (NCRTC) has installed 10 launching gantries for the construction of the 82-kilometre-long Delhi-Ghaziabad-Meerut RRTS corridor in order to up the pace of the viaduct construction, officials have revealed. Apart from the 10 gantries installed by the NCRTC, 2 more gantries are going to be installed, marking an crucial step towards pushing the regional connectivity in Meerut, the NCRTC said. The Meerut section, which is the length of the RRTS corridor from Meerut South RRTS station to Modipuram depot, is 23 kilometres. Out of these 23 kilometres, 18 kilometres is elevated and the rest will run underground. For the elevated section, 11 viaduct construction for over 11 kilometres of the length has been completed.

Moreover…With the Finance Minister Nirmala Sitharaman all set to present the interim Budget for the fiscal year 2024-25 on February 1, 2024, economists said that despite it being a vote on account, the government will continue with thrust on a fiscal consolidation, easements of business and taxation laws, infrastructure, MSMEs, and financial inclusion. Suman Chowdhury, Chief Economist and Head-Research, Acuité Ratings & Research, said, quote, Given the priority that is likely to be given for fiscal consolidation in the upcoming budget, we don’t expect any significant fiscal stimulus in it. However, the government may continue to earmark a significant quantum for capital expenditure with a growth of 15 per cent in its budgetary allocation, unquote.

In other news…The shares of Nova Agritech debuted with a 34% premium on the bourses at Rs 55. On the listing day itself, the stock hit its upper price band of 5% to halt trading at Rs 57.75. The company’s IPO opened for subscription on January 23 and closed on January. During the subscription period, the issue was reserved for investors: 50% for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and a minimum of 35% for retail investors. Nova Agritech’s IPO was set at a price band of Rs 39 to 41 per equity share of a face value of Rs 2. The company raised Rs 43.14 crore from anchor investors.

Lastly…Let’s take a look how the stocks performed today. The benchmark equity indices closed in positive territory. The NSE Nifty 50 closed 203.60 points or 0.95% higher to settle at 21,725.70, while the BSE Sensex gained 612.21 points or 0.86% to settle at 71,752.11. The broader indices closed in the green, with smallcap stocks gaining the most. Bank Nifty index gained 629.05 points or 1.39% to settle at 45,996.80. Dr Reddy’s Laboratories, Eicvher Motors, Divi’s Laboratory, Sun Pharmaceuticals, and Tata Motors were the top gainers in the Nifty 50. While L&T, Titan, Tata Consumer, and BPCL were the major losers in the Nifty 50. Bank Nifty witnessed a sharp surge during the day and marched towards 46000.