January 16, 2025, marks the critical juncture for the prolonged dispute among members of the Kirloskar family. The Securities and Exchange Board of India (SEBI) directive is at the center of the dispute, which mandates Kirloskar Oil Engines Limited (KOEL) to disclose a 2009 Deed of Family Settlement (DFS). The case highlights the tension between corporate governance requirements and familial agreements within promoter-driven businesses.

Kirloskar Dispute: Key Points For Investors

The Deed of Family Settlement (DFS)

The DFS, signed in 2009, was established to allocate business ownership and responsibilities among the Kirloskar family members. This included the distribution of assets and control within the family business. A key component of the agreement was the sale of shares, including:

• KOEL: In line with the family settlement, KOEL sold Toyota JV shares worth Rs 250 crore to Vikram Kirloskar and his nominees, adhering to the terms outlined in the DFS.
• Kirloskar Brothers Limited (KBL): Sanjay Kirloskar, Chairman of KBL, also sold his stake and transferred funds in accordance with the settlement.

Alleged Violations and Mounting Tensions

• Allegations Imposed by KBL: KBL has accused KOEL of violating the DFS due to its acquisition of La Gajjar Machineries in 2017, which they argue directly competes with KBL’s pump business. KBL escalated the issue to the Supreme Court, where the matter remains unresolved.
• SEBI’s Directive: SEBI has insisted that the DFS has material implications for shareholders under the Listing Obligations and Disclosure Requirements (LODR). The capital market regulator stated that non-disclosure of the DFS creates “information asymmetry” and undermines regulatory certainty.

KOEL’s Appeal to SAT

KOEL stated that the DFS is a private family agreement and is not relevant to the obligations of a listed entity. They have dismissed SEBI’s directive as an “ignorant interpretation” of laws. In addition, KOEL has filed an appeal with the Securities Appellate Tribunal (SAT), which was submitted on January 4, 2025. The hearing is scheduled for January 16, 2025, when the tribunal will assess the case.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

On January 16, 2025, Transrail Lighting shares rose over 6%, reaching the day’s high of ₹662.90 after opening at ₹627.65 at 11:05 AM. The gain in Transrail Lighting shares came after the company released its Q2FY25 earnings. During the period, the company reported a 19.07% year-on-year increase in consolidated profit after taxes (PAT), rising to ₹55.11 crore from ₹46.28 crore in the same quarter of the previous financial year.

Transrail Lighting Q2FY25 Review and Order Book

The company’s revenue from operations grew by 11.6%, reaching ₹1,068.3 crore, compared to ₹957 crore in the corresponding quarter of the previous year. At the operating level, EBITDA increased by 23.3%, totalling ₹120.5 crore in Q2FY25, up from ₹97.7 crore in the same period last year. The EBITDA margin stood at 11.3%, up from 10.2% in Q2FY24.

As of June 30, 2024, the company’s order book stood at ₹10,213 crore, with 64% of the orders being international (high-margin) and 36% domestic. The order book-to-sales ratio for FY24 is 2.5x, ensuring robust revenue visibility in the medium term.

1HFY25 Performance Overview

In its financial report for the six months ended September 30, 2024, Transrail Lighting reported an 8.36% increase in revenue from operations, reaching ₹1,965.23 crore, compared to ₹1,813.53 crore in H1FY24. The PAT for this period rose by 25.88%, totalling ₹106.85 crore, up from ₹84.88 crore in H1FY23.

About Transrail Lighting Ltd

Transrail Lighting is a prominent Indian engineering, procurement, and construction (EPC) company, primarily focused on the power transmission and distribution sector. The company also has integrated manufacturing facilities for lattice structures, conductors, and monopoles, with a presence in over 58 countries.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

On January 16, 2025, the Bank of Maharashtra share price rebounded by approximately 2% following the previous day’s decline, reaching a high of ₹52.75 at 10:15 AM. The recovery in Bank of Maharashtra share price came after the release of Q3FY25 results, which showed strong growth in net profit and stable asset quality.

The bank’s Net Interest Income (NII), a key measure of core income, grew by 19% year-on-year to ₹2,944 crore. Net profit for the quarter also saw a significant rise, increasing by 36% year-on-year to ₹1,406 crore.

Stable Asset Quality

Asset quality remained stable, with the Gross NPA improving to 1.8% from 1.84% in the previous quarter, while the Net NPA held steady at 0.2%. In its business update for the quarter, the bank reported a 13.5% year-on-year increase in deposits, totalling ₹2.79 lakh crore. However, sequentially, deposit growth was modest at 1%. Advances for the quarter grew by 21.2% compared to the previous year, reaching ₹2.28 lakh crore, which was also 5.1% higher than in the September quarter.

Growth in CASA 

CASA deposits increased by 11.5% year-on-year to ₹1.37 lakh crore, while the CASA ratio stood at 49.28%, slightly lower than the 50.19% recorded during the same quarter last year, but nearly unchanged from 49.29% in September. The bank’s credit-deposit ratio improved to 81.95% in December, up from 76.78% last year and 78.72% in June.

As of December, the government held a 79.6% stake in Bank of Maharashtra, which is 4.6% above the minimum shareholding requirement. At Tuesday’s closing price, the government’s excess stake was valued at over ₹1,800 crore.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

On January 16, 2025, CEAT share price slipped over 6% and touched the day low of ₹2840 at 09:55 AM after opening at ₹2949.95 on BSE. The fall in CEAT share price follows the company’s release of Q3FY25 results, wherein it reported consolidated revenue of ₹3,299.9 crore, marking an 11.4% year-on-year growth.

CEAT Q3 FY25 Performance

The EBITDA margin stood at 10.5%, and the net profit was ₹97.0 crore. However, the rise in raw material costs compared to Q2FY25 led to a 59 bps QoQ contraction in gross margin. Higher raw material costs also impacted EBITDA margins, contributing to a YoY margin decline.

At the end of the reporting period, the company’s debt stood at ₹1,835 crore, with a Debt/Equity ratio of 0.43x. The capital expenditure for the quarter was approximately ₹280 crore, funded through internal accruals. Working capital improvements resulted in a sequential debt reduction of about ₹50 crore. Leverage ratios remained stable compared to the previous quarter.

CEAT International Business Performance

The company experienced strong YoY volume growth in its replacement and international business segments, while the OEM segment showed signs of recovery. The international business continued to recover with impressive YoY growth, although the quarter-on-quarter growth remained stable. As expected, the quarter was seasonally weaker compared to Q2, with flat volumes across all segments. Both QoQ and YoY, realizations showed improvement.

Commenting on the results as well as the outlook of the business, Mr Arnab Banerjee, MD & CEO, CEAT Limited, said, “We witnessed a strong year-on-year double-digit growth, driven by the replacement segment. While the rising raw material costs have impacted our margins, we progressively passed on part of the increase through price increases in select categories during the quarter. The demand continues to remain stable, and our order book pipeline is robust across all segments. Raw material prices look flattish in Q4 and we expect growth momentum to continue.”

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

HCL Technologies has finalised January 17, 2025, as the record date for its 4th interim dividend for FY25. On Jan 13, 2025, HCLTech declared the 4th Interim Dividend of ₹18/- per equity share,w which includes a special dividend of ₹6/- per share to celebrate 25 years of the company’s public listing. The company will pay the said interim dividend on January 24, 2025.

HCL Tech Dividend Record Date: Implications for Shareholders

HCLTech has announced the record date for its 4th interim dividend, which means that January 16 is the last day to purchase HCLTech shares in order to qualify for the dividend. Any shares purchased on or after January 17, the record date, will not be eligible for this interim dividend as per the T+ 1 settlement rule.

HCLTech Q3 FY25 Earnings Overview

HCL Technologies reported strong performance in its Q3 results, with revenue of ₹29,890 crores, reflecting a 3.6% QoQ and 5.1% YoY increase. On a constant currency (CC) basis, revenue grew by 3.8% QoQ and 4.1% YoY, while USD revenue reached $3,533 million, up 2.5% QoQ and 3.5% YoY. The company’s Services segment saw CC revenue growth of 2.2% QoQ and 4.9% YoY, with digital revenue rising 6.3% YoY in CC, now contributing 38.5% of Services revenue.

On the profitability front, EBIT was ₹5,821 crores (19.5% of revenue), up 8.6% QoQ and 3.7% YoY, while net income (NI) reached ₹4,591 crores (15.4% of revenue), up 8.4% QoQ and 5.5% YoY. The company’s return on invested capital (ROIC) increased to 36.6%, up 385 bps YoY, and services ROIC improved to 44.7%, up 455 bps YoY. Operating cash flow (OCF) was $2,851 million, with free cash flow (FCF) at $2,716 million.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

India’s IT giant Tata Consultancy Services (TCS) has set Jan 17, 2025, as the record date for its 3rd interim dividend for FY25. On January 9, 2025, TCS declared an interim dividend of ₹10 and a special dividend of ₹66 per Equity Share. The company further stated that the interim dividend and the special dividend will be paid on Monday, February 3, 2025, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as of Friday, January 17, 2025.

TCS Dividend Record Date: What This Means For Shareholders?

As TCS has set the record date for its 3rd interim dividend, which means that Jan 16, marks the last to buy TCS shares to get eligible for the interim dividend. Further, any shares bought on Jan 17 (record date), won’t be eligible for the interim dividend.

TCS Q3FY25 Results

TCS delivered a strong performance in a seasonally challenging Q3FY25, setting the stage for long-term growth. The company reported revenue of ₹63,973 crore, reflecting a 5.6% YoY growth and a 4.5% increase in constant currency. This growth was backed by the Consumer Business Group (+1.1%), Energy, Resources, and Utilities (+3.4%), and Regional Markets (+40.9%).

Growth Markets continued to lead, with significant contributions from India (+70.2%), Middle East & Africa (+15.0%), Latin America (+7.0%), and Asia Pacific (+5.8%). TCS achieved an operating margin of 24.5% and a net margin of 19.4%, with a strong TCV of US$10.2 billion and a book-to-bill ratio of 1.4.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

The Indian stock market extended the gains for the second straight day on January 15, 2025. The BSE Sensex closed 0.29% higher at 76,724.08, while Nifty50 rose 0.16% to 23,213.20. During the session, many stocks, including Shakti Pumps, ITI and Quadrant Future Tek hit circuit limits, indicating significant price movements. Here is the list of stocks hitting lower and upper circuits today.

Stocks That Hit Lower Circuit on January 15, 2025

Stocks That Hit Upper Circuit on January 15, 2025

Overview of Companies Hitting Circuits Today

Shakti Pumps

Shakti Pumps shares hit a lower circuit of 5% and reached the day low of ₹1,104.20 on NSE after opening at ₹1,161.00.

Quadrant Future Tek

The newly listed Quadrant Future Tek shares hit a 20% upper circuit and reached a day high of ₹532.80 after opening at ₹480.05 on NSE.

Mamta Machinery

Mamta Machinery shares hit an upper circuit of 20% and reached the day high of ₹510.50 after opening the trading session at ₹431.00 on NSE on Jan 14, 2024.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.