The momentum may remain positive with continuity in record highs in the coming week amid falling COVID cases, expected state-wise unlocking, and a likely stimulus package by the government, experts feel.
The market had a historic week that ended on May 28, as bulls staged stellar performance, taking the Nifty 50 to fresh record high levels after spending more than three months into a consolidation. The broader markets also gained momentum but underperformed front lines, as the Nifty Midcap 100 index was up 1.1 percent and Smallcap 100 index up 1.83 percent.
Birlasoft | The share price jumped over 20 percent last week. The company reported a 43.3 percent rise in consolidated net profit at Rs 98.9 crore for the March 2021 quarter. Revenue from operations, however, declined marginally to Rs 902.8 crore in the quarter under review from Rs 907 crore in the January-March 2020 period, it added. Anand Rathi in its report said that the company expects double-digit growth in FY22 and is looking to keep its EBITDA margins at 15 percent+. The payout in the next few years is likely to rise gradually. Looking for M&A opportunities with revenue size of $ 150-200 million (33 percent of FY22 AR revenue estimate).
Zee Entertainment | The stock price added 11 percent. The company reported a consolidated profit of Rs 275.8 crore for the March 2021 quarter, driven by strong operating performance. The company had reported a loss of Rs 766.7 crore in the same quarter last year. CLSA has a buy rating with target at Rs 306 while UBS also has a buy rating with target at Rs 250 per share.
Mindtree | The scrip gained 11 percent last week. The company reported a 2.8 percent sequential decline in consolidated profit to Rs 317.3 crore for the quarter ended March 2021. Shrikant Chouhan of Kotak Securities feels that on the weekly charts, it has formed a Higher Bottom series formation which is broadly positive but on the daily chart, the stock is consistently facing resistance near Rs 2300 mark. “We are of the view that traders may prefer to book profits if the stock succeeds to close below Rs 2245. On the flip side, above Rs 2245, the short-term uptrend is likely continue up to Rs 2450-2375,” he added.
Happiest Minds | The share price gained 15 percent in the week gone by. The Bengaluru-based IT firm reported Rs 36.05 crore net profit for the quarter ending March 2021, a significant rise on a year-on-year (YoY) basis. For the year ended March 2021, the company’s revenue stood at Rs 773 crore, up 10.8 percent from FY20. Its net profit was Rs 162.46 crore, up 126.6 percent from last year.
JK Lakshmi Cement | The stock price was up 9 percent in the week gone by. 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 Cement (JKLC) said in a regulatory filing. Brokerage firm ICICI Direct has buy call on the stock with target price of Rs 575.
CONCOR | The share price was up over 13 percent eding May 29. Brokerages raised the target price on the stock after clarity on LLF (land licensing fee) and positive guidance of management. The company on May 21 posted a consolidated net profit of Rs 24.97 crore in the fourth quarter ended March 2021 against Rs 316.56 crore in the year-ago period. Nomura has a buy rating and has raised target to Rs 750.
Relaxo Footware | The stock added over 8 percent. The company 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. The board of directors of the company recommended a final dividend at the rate of Rs 2.50 per equity share for the year ended March 31, 2021.
Sonata Software | The scrip added 15 percent as the company proposes to expand its 30-year-old relationship with Microsoft across geographies, technologies, and industries, making further investments ‘to derive maximum advantage from a huge and growing market opportunity’, media reports said. The mid-size IT services provider reported a profit after tax of Rs 83.1 crore for the quarter ended March 31, up 34% over the corresponding quarter last year. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities suggests holding the stock. Further uptrend may also continue that could lift the stock up to Rs 790. On the flip side, traders may prefer to exit out from trading long positions at a close below Rs 665.
India Cements | The share price was dow over 10 percent in theweek gone by. The company reported quarterly net profit at Rs. 71.63 crore in March 2021 up 164.49 percent from Rs. 111.07 crore in March 2020. Net sales came in at Rs 1,449.62 crore in March 2021 up 25.85 percent from Rs. 1,151.90 crore in March 2020. ICICI Securities has sell call on the stock with a target price of Rs 150.
Ipca Labs | The stock shed over 8 percent. The pharma company on a consolidated basis recorded a 94 percent jump in net profit to Rs 161.20 crore in Q4 FY21 as against Rs 83.05 crore in Q4 FY20. Revenue from operations rose 3.81 percent YoY to Rs 1,114.66 crore during the quarter.
Sandip Das
