Experts expect the stock-specific action to continue given the quarterly earnings season, and feel the market will closely watch COVID-19-related updates, progress of the vaccine drive, global cues and movement in commodities.
The BSE Sensex corrected 473.92 points to close at 48,732.55, and the Nifty50 declined 145.35 points to 14,677.80 after rising around 3 percent in previous two consecutive weeks, dragged by banking & financials, IT and metals stocks. The broader markets slightly outpaced frontliners as the BSE Midcap index declined 0.49 percent and BSE Smallcap index was down 0.08 percent.
Godrej Consumer | The stock gained 20 percent last week after the FMCG major reported a 59.13 percent increase in consolidated net profit at Rs 365.84 crore for the fourth quarter. The company had posted a net profit of Rs 229.90 crore in the year0ago period, GCPL said in a BSE filing. Credit Suisse has an outperform rating with target at Rs 875 while Jefferies has a buy rating and has raised target to Rs 1,000 from Rs 840 per share.
UPL | The scrip added 17 percent after UPL share price jumped over 9 percent intraday on May 14 after the agrichemicals company reported an all-round beat on March 2021 quarter earnings, with consolidated profit rising 74 percent year-on-year to Rs 1,361 crore. The profit was also higher due to lower exceptional cost at Rs 80 crore in Q4FY21 against Rs 171 crore in the corresponding period of the previous fiscal, the company said on May 12. Global research firm JP Morgan has an “overweight” call on the stock, with the target at Rs 760 a share.
Asian Paints | The share was up over 8 percent after the company reported an 81.1 percent year-on-year growth in net profit at Rs 870 in March 2021 quarter, driven by strong growth in volume and operating income and a low base in Q4FY20. Its revenue from operations in Q4FY21 was at Rs 6,651.4 crore, up 43.5 percent from the year-ago quarter, with the volume growth at 48 percent, the company said on May 12. HSBC has a buy rating with target at Rs 3,150.
Siemens | The stock gained 7 percent in the week gone by after the company posted a 90 percent jump in its Q2 consolidated net profit at Rs 334 crore from Rs 175.7 crore in the same quarter last year. Revenue was up 31.9 percent at Rs 3,483.7 crore versus Rs 2,640.2 crore in the year-ago period. Dolat Capital raised FY21E EPS estimates by 8.1 percent to factor in the robust Q2 performance, while retaining FY22e/FY23e estimates. It has retained “buy” with the target price of Rs 2,300 based on 55x Mar’23E EPS.
Angel Broking | The share price jumped over 28 percent in the week gone by. The brokerage firm said it achieved the highest-ever monthly client acquisition in March. “The digital stockbroker has on-boarded 3,79,233 customers during March 2021 while continuing its stellar run in the broking industry. The total client base of Angel Broking has now increased to 41 lakh as of March 2021,” Angel Broking said in a media release. Jatin Gohil, Technical and Derivative Research Analyst, Reliance Securities suggests holding the stock with target at Rs 700.
Granules India | The share price was down over 8 percent last week. The company reported a 38.15 percent rise in its consolidated net profit to Rs 127.56 crore for the quarter ended March 31, 2021, on account of robust sales. The company had posted a net profit of Rs 92.33 crore for the corresponding period of the previous fiscal, Granules India said in a regulator filing. The board of directors recommended a final dividend of 75 paise per equity share of Re 1 each in addition to an interim dividend of 75 paise per equity share of Re 1 each paid during the year, the filing said.
Bandhan Bank | The stock shed over 4 percent in the week gone by. The private lender reported a steep 80.1 percent year-on-year decline in profit at Rs 103 crore in March 2021 quarter. Profit in the year-ago quarter was at Rs 517.3 crore. The bank’s net interest income (NII), the difference between interest earned and interest expended, grew by 4.6 percent year on year to Rs 1,757 crore, with loan portfolio (on book + off book+ TLTRO) growth at 21.2 percent and deposits growth at 36.6 percent YoY, the lender said on May 8 while sharing Q4 numbers. JPMorgan has an overweight rating with target at Rs 400.
Kotak Mahindra Bank | The scrip was down over 4 percent last week. The bank clocked a 32.8 percent year-on-year (YoY) growth in standalone profit at Rs 1,682.4 crore in the quarter ended March 2021, impacted by higher provisions. The profitability was supported by higher net interest income (NII), other income and pre-provision operating profit. Numbers missed analysts’ expectations. Profit was estimated at Rs 1,800 crore and NII at Rs 4,060 crore for the quarter, according to the average estimates of analysts polled by CNBC-TV18.
Firstsource Solutions | The stock fell 4 percent last week after net profit declined 49.03 percent to Rs 46.68 crore in the quarter ended March 2021 as against Rs 91.58 crore during the previous quarter ended March 2020. Sales rose 35.83% to Rs 1449.63 crore in the quarter ended March 2021 as against Rs 1067.26 crore during the previous quarter ended March 2020. For the full year,net profit rose 6.48 percent to Rs 361.69 crore in the year ended March 2021 as against Rs 339.69 crore during the previous year ended March 2020.
Coal India | The stock price rose 9 percent last week. Coal India arm Central Coalfields said it has recorded 112 percent increase in production at 4.84 million tonne (mt) in April. It had recorded 2.28 mt coal output in April 2020, it said in a statement. As far as coal offtake was concerned, the arm said it recorded a 122 percent increase in April 2021 to 6.56 mt against 2.96 mt in the corresponding month of the previous fiscal.
Sandip Das
