Bulls managed to keep their hold for the second consecutive week. The benchmark indices gained a percent each for the week and the broader market traded in line. The BSE Sensex managed to get back above the crucial 60,000-mark amid volatility, while the Nifty50 reclaimed the 18,100 mark.
Zomato | The share price added over 16 percent in the week gone by. The company reported a net loss of Rs 430 crore on a consolidated basis compared to a loss of Rs 230 crore in the same period last year, an increase of 87 percent. It had reported a net loss of Rs 356 crore in the previous quarter when it declared its maiden results as a public limited company. On a sequential basis, the loss for the company increased by 21 percent. The online food aggregator recorded consolidated revenues of Rs 1,024 crore for the quarter compared to Rs 426 crore in the same period last year. Goldman Sachs has maintained a buy call and has raised the target price on the stock to Rs 185. The broking firm raised FY22 gross order value (GOV)/revenue estimates by 13%/9%. It feels that the market is likely to reward growth over profitability for foreseeable future.
Thermax | The scrip was up 11 percent after the energy and environment solutions company on November 10 reported a 183 percent YoY spike in profit after tax (PAT) to Rs 88 crore for the quarter ended September 30. It had reported a profit of Rs 31 crore in the corresponding quarter of FY21. The firm had booked orders worth Rs 1,856 crore, a jump of 67 percent YoY, on orders bookings during the COVID-hit Q2 of FY21.
Muthoot Finance | The stock price was up over 10 percent last week. The firm posted a consolidated net profit of Rs 1,001.96 crore for the second quarter ended September 30, 2021. Loan assets of the group at the end of the first half of the current financial year increased 17 percent to Rs 60,919 crore, the company said in a regulatory filing as against Rs 52,286 crore a year ago. Vikas Jain of Reliance Securities believes that after a sharp outperformance over the past few weeks one should wait for some corrective action. RSI is at the higher end and delivery volumes are low over the past two days, indicating some pause, and one should book profit at current levels.
Whirlpool | The stock gained over 7 percent in the week gone by. The consumer durable maker reported over twofold jump in consolidated net profit to Rs 413.19 crore for the second quarter ended September 2021, helped by the acquisition of a majority stake in kitchen appliances maker Elica India. The company had posted a net profit of Rs 134.67 crore during the corresponding quarter of the previous financial year, Whirlpool of India, a subsidiary of Whirlpool Corporation, said in a regulatory filing. However, its revenue from operations during July-September 2021 rose marginally to Rs 1,607.10 crore, compared with Rs 1,598.47 crore in the year-ago period.
Mahindra & Mahindra | The stock price was up over 7 percent after the auto major reported a 214 percent year-on-year growth in profit at Rs 1,929 crore for the quarter ended September 2021 due to a low base but the operating performance was hit by higher input prices. Revenue from operations grew by 14.8 percent YoY to Rs 13,305 crore.
Minda Industries | The stock jumped over 17 percent after the company reported a consolidated profit after tax of Rs 113 crore in the September quarter. The auto parts and equipment company posted PAT of Rs 25 crore in Q1FY22 and of Rs 100 crore in the year-ago quarter (Q2FY21). EBITDA margin also improved 162 basis point QoQ to 10.8 percent for the quarter, compared to 9.2 percent in previous quarter.
IndusInd Bank | The share price was down over 12 percent last week. The stock has been under pressure following whistleblower allegations of loan evergreening. The private lender has denied the accusations. The allegations made by certain anonymous individuals purportedly acting as whistleblowers, as published in the Mumbai edition of The Economic Times on November 5, 2021 titled as “Whistleblowers Raise Loan Evergreening Issue at IndusInd Arm” are grossly inaccurate and baseless, IndusInd Bank said in a release on November 6. According to Motilal Oswal, the stock could witness some pressure due to adverse media articles and asset-quality stress reported by some other MFI lenders. Nevertheless, we expect the impact to be controlled. It has maintained buy, with unchanged target price of Rs 1,400 (1.9x 1HFY24E ABV).
Sun TV Network | The scrip shed over 7 percent in the week gone by. The company reported a consolidated profit after tax (PAT) of Rs 395.55 crore for the second quarter ended September 30. The company had reported a PAT of Rs 335.02 crore in the July-September period a year ago, Sun TV Network said in a BSE filing. Sun TV Networks said due to the outbreak of the COVID-19 pandemic, and the consequent lockdown has impacted the regular business operations of the group. “The results for the quarter and six months ended September 30, 2021, are therefore not comparable with those for the earlier periods presented,” Sun TV said.
Godrej Consumer Products | The stock was down over 5 percent after The FMCG firm reported consolidated Q2FY22 net profit which was up 4.6% at Rs 478.89 crore versus Rs 458.02 crore. Its revenue was up 8.5% at Rs 3,163.65 crore versus Rs 2,915.12 crore, YoY. Earnings before interest, tax, depreciation and amortisations (EBITDA) was down 2% at Rs 659.5 crore versus Rs 673 crore and margin was at 20.8% versus 23.1%, YoY. Morgan Stanley has an underweight rating on the stock with a target price of Rs 829.
BHEL | The share price slipped over 9 percent last week. BHEL in the second quarter ended September 2021 has reported a consolidated net loss of Rs 46.58 crore as against Rs 552.38 crore in the same quarter last fiscal. Its net loss stood at Rs 448.20 crore in the quarter ended in June 2021. The revenue for the September quarter was up 38.3 percent to Rs 5,112.9 crore as against Rs 3,695.96 crore a year ago. Goldman Sachs has kept the ‘sell’ rating on the stock with a target at Rs 24 per share.