This week is expected to be a bit volatile given the expiry of May derivative contracts. The market will closely watch the COVID-19 infections graph and global cues, which if remain favourable, then the indices may attempt to march towards record high levels, experts feel.
The market had a stellar rally in the week ended May 21 as bulls turned stronger to help the benchmark indices see the biggest weekly gains since budget week. The falling COVID-19 cases along with favourable global cues and in line corporate earnings for March quarter lifted sentiment. The broader markets also joined the bulls’ party, as the BSE Midcap index gained 4.77 percent and Smallcap index was up 4.19 percent during the week.
HFCL | The stock price jumped 32 percent in the week gone by. The company reported quarterly net profit at Rs 82.50 crore in March 2021 up 4025 percent from Rs. 2 crore in March 2020. Net sales came in at Rs 1,276.94 crore in March 2021 up 109.07 percent from Rs. 610.77 crore in March 2020. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities feels that on the daily and weekly charts, the stock has formed a strong promising price volume uptrend continuation formation.
JK Lakshmi Cement | The share gained 21 percent after the company reported a 61.34 percent increase in consolidated net profit to Rs 159.13 crore for the fourth quarter ended March 2021, helped by higher volumes and improved cost efficiencies. The company had posted a profit of Rs 98.63 crore in the January-March period a year ago, JK Lakshmi said in a regulatory filing. Revenue from operations rose 25.22 percent to Rs 1,424.32 crore from Rs 1,137.47 crore in the year-ago quarter.
Adani Green | The scrip was up 19 percent after the company said it will acquire 5 GW of renewable power portfolio from SB Energy India for a fully-completed enterprise evaluation (EV) of $ 3.5 billion (approx Rs 26,000 crore), the company announced in an official statement. The share purchase agreement was signed on May 19 for acquisition of 100 percent interest in SB Energy from SoftBank Group and Bharti Group, who held 80 percent and 20 percent stake, respectively.
Indiabulls Housing Finance | The share rose 17 percent after the mortgage financier reported a two-fold jump in its profit after tax to Rs 276 crore in the quarter ended March 2021 helped by stable asset quality. The lender’s net non-performing assets (NPAs) were stable at 1.59 percent. Provisions to loan book stood at 3.7 percent.
State Bank of India | The share of the PSU banking major was up 11 percent after the country’s largest lender reported standalone profit of Rs 6,450.7 crore for the quarter ended March 2021 against a profit of Rs 3,580.81 crore in Q4FY20. The jump in profit was supported by net interest income and other income, while the low base in the year-ago quarter added to the jump. Net interest income grew by 18.9 percent year-on-year to Rs 27,067 crore in Q4FY21. The loan growth stood at 5 percent YoY.
Relaxo Footwears | The stock price gained 11 percent after the shoe maker reported a 97.2 percent jump in profit at Rs 102.17 crore in the fourth quarter ended March 31, 2021, helped by higher revenue from operations. The company had posted a profit of Rs 51.80 crore in the January-March quarter of the last financial year. Its revenue from operations went up by 38.3 percent at Rs 747.68 crore during the period under review as against Rs 540.58 crore in the same quarter of the previous financial year. Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking suggests holding the stock. “The immediate support for the stock is placed in the range of Rs 970-960 while we could see a continuation of this rally towards Rs 1060 in the near term,” he added.
Firstsource Solutions | The stock added 10 percent in the week gone by. The company reported 35.39 percent YoY increase in consolidated revenues for the March 2021 quarter at Rs 1,462.85 crore. Net profit in the March 2021 quarter was down 49 percent YoY at Rs 46.68 crore.
Gland Pharma | The share price gained 10 percent last week. The company reported a 34 percent rise in its consolidated net profit to Rs 260.4 crore for the fourth quarter ended March 2021, on account of robust sales. The company posted a net profit of Rs 194.8 crore for the corresponding period of the previous fiscal, Gland Pharma said in a BSE filing. Motilal Oswal Financial Services has a buy call on the stock with a target price of Rs 3,280. “Gland Pharma has purchased the assets of Vitane Biologics for Rs 90 crore. Further scale-up of this facility, integrating it with its drug production facility, and technology transfer would enable the manufacture of 252m doses of Sputnik V vaccine over a one-year period,” said Motilal Oswal.
HPCL | The stock price added 8 percent last week after the state-run oil retailer reported a 28.2 percent sequential growth in standalone profit at Rs 3,018 crore in the quarter ended March 2021. Profit in the December 2020 quarter stood at Rs 2,345.6 crore. The standalone revenue from operations increased by 10.1 percent sequentially to Rs 85,203.55 crore in Q4FY21. Citi has a buy rating with target at Rs 295 while JP Morgan has an overweight rating with target raised to Rs 330 from Rs 285 per share.
Bharti Airtel | The scrip was down 8 percent in the week gone by. The telecom major reported a net profit of Rs 759.2 crore for the quarter ended March 31, 2021 (Q4FY21). The firm had posted a loss of Rs 5,237 crore in the year-ago period. In the December quarter, profit stood at Rs 853.6 crore. The company’s fourth quarter total revenue came in Rs 25,747 crore, up 17.6 percent year-on-year (YoY) on a comparable basis and 11.9 percent YoY on a reported basis. Basic earnings per share came in at Rs 1.39 for the quarter against Rs (-)9.69 in Q4FY20.
Sandip Das
