The coming truncated Diwali week is going to see a lot of events including earnings, US Federal Reserve meeting, monthly auto sales and PMI numbers. The nervousness seen on Dalal Street in the week gone by is expected to continue in the coming days, experts say
The BSE Sensex slipped below the psychologically important 60,000-mark, tanking 1,514.69 points to 59,306.93, and the Nifty50 broke 18,000 levels, down 443.25 points to 17,671.65, continuing the downtrend for the second consecutive week. Selling pressure was seen across sectors, with private banks, IT, metal and realty indices clocking the highest losses. The broader market was a tad better, as the Nifty midcap 100 and smallcap 100 indices shed nearly 2 percent each.
TTK Prestige | The stock jumped over 15 percent after the company approved the sub-division/split (stock split) of equity shares of the company. The record date for the proposed split will be intimated in due course, subject to compliance of necessary laws, the company told exchanges. “The board has approved sub-division/split of equity shares of the company from face value of Rs 10 each into Re 1 each subject to the approval of members through Postal Ballot,” TTK Prestige said. TTK Prestige’s consolidated net profit for the second quarter surged 58% to Rs 103.5 crore as compared to Rs 65.4 crore in the same quarter last year. Its revenue from operations increased to Rs 858.6 crore from Rs 636.6 crore year-on-year.
United Spirits | The stock added over 13 percent last week. Standalone net profit of the company more than doubled year-on-year (up 113 percent) to Rs 273 crore, helped by a significant expansion in operating margins. The EBITDA (earnings before interest, tax, depreciation and amortisation) margin rose 480 basis points to 17.4 percent in Q2. One basis point is one-hundredth of a percentage point. Shrikant Chouhan of Kotak Securities is of the view that on the weekly charts, the stock has formed a strong bar reversal bullish candle along with strong modest volume. On daily charts, it formed a higher bottom series pattern, which also supported further uptrend from current levels. For the positional traders, Rs 850-830 would be the key level to watch. If it manages to trade above the same, the uptrend is expected to continue to Rs 1,000, he said.
ABB India | The scrip was up 11 percent after the firm reported a net profit of Rs 85 crore in the quarter ended September 30, 2020. Profit after tax was at Rs 120 crore, a growth of 40 percent over Q3 2020 (July-September 2020) driven by solid execution, the firm said in a filing. Total income stood at Rs 1,803.20 crore against Rs 1,632.27 crore in the same period last fiscal. Brokerage firm Prabhudas Lilladher said ABB will continue to focus on order wins and execution across projects. It has assigned a “hold” rating on the stock with a revised target of Rs 1,832.
Ramco Cements | The stock price gained over 10 percent after the company reported an over two-fold jump in consolidated net profit at Rs 519.12 crore for the quarter ended September, helped by write-back of excess deferred tax and growth in sales. The company had posted a net profit of Rs 238.92 crore during the July-September period of the previous fiscal, according to a regulatory filing. Total revenue rose 18.6 percent to Rs 1,510.33 crore in the second quarter of the current fiscal. In the year-ago period, it was at Rs 1,273.47 crore. Mazhar Mohammad of chartviewindia.in is of the view that fresh buying should be considered only on dips but stop loss will remain below Rs 928.
Canara Bank | The share added 8 percent in the week gone by. The bank posted a 200 percent rise in net profit at Rs 1,333 crore on robust growth in non-interest income including revenue from trading and recoveries. It posted a net profit of Rs 444 crore in the year-ago quarter. Its non-interest income was up 37.54 percent YoY to Rs 4,268 crore in Q2FY22 from Rs 3,103 crore a year ago. Its asset quality profile was broadly stable though. Gross non-performing assets (NPAs) rose to 8.42 percent this September from 8.23 percent a year ago. Net NPAs reduced to 3.21 percent in September 2021 from 3.42 percent a year ago. Its provision coverage ratio improved to 82.44 percent at end of Q2FY22 from 81.48 percent at end of Q2FY21.
Interglobe Aviation | The stock gained over 7 percent as the aviation major reported its September quarter earnings. Interglobe Aviation, the owner of IndiGo, posted a net loss of Rs 1,435.7 crore in Q2FY22 against a loss of Rs 1,194.8 crore in the year-ago period. The company’s revenue was at Rs 5,608 crore against Rs 2,741 crore, YoY. Credit Suisse has an outperform rating on the stock on the back of fortress positioning and structural cash flows. It kept the target price at Rs 2,700 a share.
Ambuja Cements | The stock price was up over 7 percent in the previous week. The cemen- maker posted a 10.85 percent jump in its consolidated net profit at Rs 890.67 crore for the third quarter ended September 2021. It had reported a net profit of Rs 803.50 crore in the same quarter a year ago. Its revenue from operations was up 7.74 percent at Rs 6,647.13 crore during the quarter against Rs 6,169.47 crore in the corresponding quarter of the previous financial year. CLSA has an outperform call on the stock with a target at Rs 435 after Q3 EBITDA was largely in-line with estimates. Credit Suisse has upgraded the stock to outperform on cheaper valuation and strong pricing power. It has raised the target to Rs 450 after reasonably strong results given cost pressures.
Adani Power | The scrip shed over 14 percent after the company reported a consolidated net loss of Rs 230.60 crore for the September 2021 quarter, mainly due to lower revenues. Its consolidated net profit stood at Rs 2,228.05 crore in the quarter ended September 30, 2020, according to a BSE filing.
IRCTC | The stock price was down over 8 percent in the week gone by. IRCTC informed the stock exchanges on October 28 about the railway ministry’s decision to restore revenue sharing of “convenience fee”. However, the ministry decided to withdraw the decision. Experts say the fundamentals of the stock are still intact, and the correction came on the back of its overvaluation. Hence, they called it a technical correction. They advise long-term investors to not panic and hold the stock. The company had fixed October 29 as the record date to ascertain the name of shareholders entitled to sub-division of equity shares of Rs 10 each into five equity shares of Rs 2 each. The board of directors will meet on November 1 to consider and approve the unaudited financial results for the second quarter and the half-year ended September 30, 2021.
RBL Bank | The share price fell 10 percent after the bank posted a 78 percent fall in its net profit at Rs 31 crore for the second quarter of FY22 as against Rs 144 crore in the year-ago period. Its net interest income fell to Rs 915 crore from Rs 932 crore a year back. The gross NPA ratio was at 5.40 percent versus 4.99 percent and the net NPA ratio stood at 2.14 percent versus 2.01 percent over the year-ago period.
Sandip Das
