Stocks to Watch: Asian Paints, Divi’s Labs, Aurobindo Pharma, Tata Motors, and more

Here’s a quick look at stocks likely to be in focus in today’s trade.

Divi’s Laboratories reported a 46.6 percent year-on-year (YoY) rise in profit after tax (PAT) to ₹510 crore for the quarter ended September 30. This growth was driven by increased demand in its custom synthesis business from both existing and new clients. In comparison, the company had posted a PAT of ₹348 crore in the same quarter the previous year.

Aurobindo Pharma posted an 8.6 percent YoY increase in net profit to ₹817 crore for the second quarter ended September 2023, supported by strong sales in Europe and growth markets. This was an improvement from the ₹752 crore net profit recorded in the corresponding quarter last year. However, on a quarter-on-quarter (QoQ) basis, net profit saw an 11 percent decline. Revenue from operations rose 8 percent YoY to ₹7,796 crore in Q2 FY25.

Asian Paints experienced a 42.4 percent YoY decline in Q2 net profit, attributed to a “subdued demand environment.” Net profit after minority interest fell to ₹694.60 crore for the July-September period, down from ₹1,205.40 crore in the same quarter last year. Consolidated net sales dropped 5.3 percent to ₹8,003.0 crore from ₹8,451.9 crore.

State Bank of India (SBI), India’s largest public sector bank, reported a 28 percent YoY increase in standalone net profit, reaching ₹18,331.4 crore for the July-September quarter of FY25. This figure surpassed market expectations, which had projected a net profit rise of 10-17 percent. For comparison, the lender reported a net profit of ₹14,433.03 crore in Q2 FY24. Sequentially, SBI’s Q2 profit increased by 7.6 percent from ₹17,035.16 crore.

Tata Motors reported an 11.2 percent decline in net profit to ₹3,343 crore, attributed to muted domestic demand and production challenges at Jaguar Land Rover (JLR). The company’s revenue fell by 3.8 percent to ₹1.01 lakh crore. EBITDA dropped by 12 percent to ₹12,159 crore. JLR’s profitability was affected by a temporary aluminium supply issue and a hold on 6,029 vehicles for additional quality control checks.

Ola Electric narrowed its net loss to ₹495 crore in Q2 FY25, benefiting from increased sales and reduced raw material costs. This was an improvement over the ₹524 crore net loss reported in the same period last year. The company’s consolidated revenue grew 39 percent year-on-year to ₹1,214 crore, up from ₹873 crore in the prior-year period.

Wipro saw a significant stake acquisition as Premji Invest, the private equity arm of billionaire Azim Premji, purchased a 1.6 percent stake for ₹4,757 crore through an open market transaction. The shares were acquired via Prazim Trading and Investment Company in a block deal on the National Stock Exchange (NSE) on November 8.

Life Insurance Corporation (LIC) reported a 4 percent decline in standalone net profit to ₹7,621 crore for the quarter ended September 2024, down from ₹7,925 crore in the corresponding period last year. The insurer’s net premium income rose 11 percent year-on-year to ₹1.19 lakh crore, compared to ₹1.07 lakh crore in the previous fiscal quarter.

Aarti Industries reported a 43 percent year-on-year decline in net profit to ₹52 crore for Q2 FY25, down from ₹91 crore in Q2 FY24. The decrease in profit was due to higher expenses and operational challenges. However, revenue increased by 12 percent to ₹1,628 crore, up from ₹1,454 crore in the previous year, as the company continued its efforts to expand market reach and diversify its product portfolio.

Q2 results: Blue-chip companies including Britannia, BEML, Blue Dart, Hindalco, and MTPL are set to announce their Q2 results today.