Hot Stocks of the day: Bandhan Bank, D-mart, JSW Energy, Nestle, Lupin

D’mart 

The company behind D-Mart stores, reported a 2.3% increase in standalone profit for the quarter ending June FY24. They earned Rs 695.4 crore during this period, but their operating margin was lower, impacting their overall profit. The company's revenue showed significant growth, reaching Rs 11,584.4 crore, an 18.1% increase compared to the same period last year. In terms of operations, EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 2.8% year-on-year, amounting to Rs 1,036.5 crore. However, the operating margin dropped by 133 basis points to 8.94% compared to the corresponding quarter of the previous fiscal year.

JSW Energy 

A utilities company, reported a consolidated profit of Rs 290 crore for the quarter ending June FY24. However, this represents a 48.3% decline compared to the same period last year. The decrease was primarily due to higher finance costs and a significant exceptional gain of Rs 120 crore in Q1FY23, which created a high base for comparison.
During the quarter, revenue from operations fell by 3.25% year-on-year to Rs 2,928 crore. Although there was incremental revenue from Mytrah and renewable capacity additions, lower realization in thermal assets, caused by a decline in coal prices, offset the gains.
On the positive side, EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 19.4% YoY to Rs 1,224 crore. This growth was driven by robust EBITDA contribution from renewable assets. Additionally, the margin expanded by 792 basis points YoY to 41.8% in Q1FY24, mainly due to lower fuel costs.

Bandhan Bank 

A private sector lender based in Kolkata, reported a profit of Rs 721 crore for the quarter ending June FY24. However, this represents a decline of 18.7% compared to the same period last year. The decrease was mainly due to lower net interest income and pre-provision operating profit.
During the quarter, the bank's net interest income dropped by 0.9% year-on-year to Rs 2,491 crore. The net interest margin also declined by 70 basis points to 7.3% in the same period.
The bank's asset quality weakened, with the gross non-performing assets (NPA) rising by 189 basis points sequentially to 6.76%. Additionally, the net NPA increased by 101 basis points quarter-on-quarter to 2.18% in Q1FY24.
On a positive note, provisions and contingencies decreased by 6.3% year-on-year.

Lupin 

A pharmaceutical company based in the US, has received approval from the United States Food and Drug Administration (US FDA) for its generic version of Chlorpromazine hydrochloride tablets. These tablets are used to treat symptoms associated with specific mental illnesses. The approval allows Lupin to market their product as a generic equivalent to the reference listed drug produced by Upsher-Smith Laboratories, LLC. The reference listed drug, Chlorpromazine hydrochloride tablets, had an estimated annual sale of $45 million in the US as of March 2023.

Nestle India 

A popular FMCG company, has received initial approval from The Industrial Promotion & Investment Corporation of Odisha Limited to establish a food processing unit in Khordha, Odisha. The company plans to invest Rs 894.10 crore in this project.