Analysis on Indian companies which are impacted by covid 19, Industries chosen are :Pharmaceutical, Aviation, Automobiles

1. IMPACT OF COVID-19
ON THE INDIAN STOCK
MARKET SECTORS
MANINI BINDORIA 3C
AMITY BUSINESS SCHOOL, MUMBAI

2. The Impact of Covid-19
The COVID-19 outbreak has ravaged the economy like never before, and the impact is
being felt by individuals, businesses, and investors who depend on a thriving and
bullish market for gains and growth. In the absence of stability in the Indian stock
market, which has decreased almost one-fifths in valuation since the beginning of the
year, Indian investors are increasingly looking westwards.Especially when India hit the
lowest GDP contracts 23.9% in June quarter.

3. SECTORS CHOSEN TO ANALYSE
● Pharmaceutical
● Aviation
● Automobile

4. PHARMACEUTICAL

5. CIPLA LIMITED
52 Week High 829.0500
52 Week Low 355.3000
Current price as on 28
October: 765.25

6. CIPLA LIMITED
● Cipla will be commercialising remdesivir through its own facilities and partnered sites. The drug
will be supplied through the government and open market channels to ensure equitable
distribution.
● Remdesivir is the only USFDA approved Emergency Use Authorization (EUA) treatment for
adult and pediatric patients hospitalized with suspected or laboratory confirmed COVID-19
infection
● Cipla announced a INR 25 crore fund to support the Indian Government's efforts to effectively
combat the COVID-19 pandemic. This includes a voluntary donation of approximately INR 3
crore from Cipla employees who have stepped forward in this hour of national need.

7. AUROBINDO PHARMA LTD
52 Week High 967.5000
52 Week Low 288.8500
Stock price as on 28
October: 776.30

8. AUROBINDO PHARMA LTD
● Aurobindo is already developing a vaccine for SARS COV-2 through its wholly owned
US subsidiary Auro Vaccines.
● In Q1 of current fiscal, Aurobindo Pharma reported a 22.81 per cent rise in its
consolidated net profit to Rs 780.68 crore for the quarter ended on June 30, 2020,
mainly on account of robust sales in the US market. The company had posted a net
profit of Rs 635.68 crore for the corresponding period of the previous fiscal.
● Consolidated revenue from operations of the company stood at Rs 5,924.78 crore for
the quarter under consideration. It was Rs 5,444.60 crore for last year.

9. OVERVIEW
● General analysis shows that the pharmaceutical stocks maintain a general
momentum with the Benchmarking index Nifty.
● There is a general perception that during an outbreak of some diseases, the
demand for pharmaceutical stocks should increase.

10. AVIATION

11. INDIGO
52 Week High
1541.7500
52 Week Low 771.3000
Stock price as on 28
October: 1293.70

12. INDIGO
● InterGlobe Aviation share price has lost 33.69 per cent in last one year and 26.59 per cent
since the beginning of this year.
● Struck by the coronavirus pandemic, IndiGo reported a bad set of numbers in the last quarter
of FY20. For instance, the consolidated loss in the fourth quarter stood at Rs 871 crore and Rs
234 crore for the full FY21.
● Over the past two months, the airline has taken a series of steps that will minimise the impact
of the current pandemic-related issues. As revenues have pummelled, airlines like IndiGo
rushed to bring down their costs. Nearly 40 per cent of the airline's costs are fixed, and out of
which, employees' costs and supplementary rentals are the biggest items.

13. SPICEJET
● 52 Week High121.5000
● 52 Week Low 30.6500
● Stock price as on 28 October: 50.65
● SpiceJet reported a net loss of well over
Rs 800 crore for fiscal fourth quarter
January-March, as coronavirus took toll
on passenger traffic.
● The company's share has lost 66.09 per
cent in one year and 61.89 per cent
since the beginning of this year.

14. OVERVIEW
● This sector was one of the worst-hit sectors by the COVID-19 pandemic wave,
however, now it is gradually limping back to normalcy.
● According to CAPA India, an aviation consulate firm, the global aviation activity has
seen a decline of 66.8% in the last one month
● Post the lockdown, the Indian aviation industry is losing almost ₹75 – ₹90crore on a
daily basis. This assessment was presented by ICRA, a banking and credit rating
agency.
● A report suggests that domestic traffic may reach pre-COVID level by the end of 2020.
The government will allow 75% of flight operations soon.

15. AUTOMOBILE

16. TATA MOTORS
52-wk high: 201.70
52-wk low:63.50
Stock price as on
28 October: 134.80

17. TATA MOTORS
● Tata Motors Ltd. reported a quarterly loss as the Covid-19 pandemic caused a slump in
sales in India and overseas. Net loss stood at Rs 8,438 crore in the quarter ended
June compared with a loss of Rs 3,698 crore a year ago.
● Revenue fell 48% year-on-year to Rs 31,983 crore—higher than the Rs 28,247 crore
estimate. Operating profit fell 79% to Rs 653.3 crore. Margin narrowed to 2%
compared with 4.87% earlier.

18. MAHINDRA AND MAHINDRA LTD
52 Week High 666.60
52 Week Low 245.80
Stock price as on 28
October:

19. MAHINDRA AND MAHINDRA LTD
● Mahindra & Mahindra (M&M) is estimates production loss of 87,000 vehicles and
30,000 tractors in first quarter of current fiscal on account of suspension of
manufacturing operations due to coronavirus-led lockdown.
● The company, which had suspended its entire operations on March 25, estimates loss
of 23,400 vehicles and 14,700 tractors in March itself. The company reported a pre-tax
loss of Rs 1,761 crore on a consolidated basis in Q4FY20, the first such instance since
2001.

20. OVERVIEW
● According to projected losses in March “Indian auto industry may suffer a revenue loss
of about Rs 1,300 crore to Rs 1,500 crore per day (estimated figure) due to complete
halt in manufacturing by automakers”
● Apart from the revenue loss, the Indian auto sector was also likely to suffer major job
losses due to the virus, wherein the industry has witnessed a prolonged slowdown. The
major job risk lies for the contractual workers who constitute over 55 percent of the
overall workforce

21. CONCLUSION
● Since March, stock prices were falling steeply due to covid and the lockdown,
leading to complete shutdown, which affected every sector and industry directly
or indirectly.
● Financial markets in India are showing sharp volatility as a result of the fallout in
global markets.
● Even though companies are trying their best to revive their losses, it will take
much more time than expected.
● The stock market is slowly coming back to pre-covid levels after the gradual
unlock of the country.