As long as global uncertainty do not disappear, market is likely to have challenging environment where the volatility remains on the higher side, experts said.
Market extended the profit booking to the second week ended January 28 and lost another 3 percent amid high volatility as investors remain cautious on the recent hawkish policy by Federal Reserve, rising crude oil price, geo-political tensions and persistent FIIs selling. BSE Sensex last week declined 1,836.95 points (3.11 percent) to end at 57,200.23, while the Nifty50 lost 515.2 points (2.92 percent) to close at 17,101.95 levels.
TV18 Broadcast | The stock advanced 7 percent last week. The company reported a sharp 35 percent increase in net profit on a sequential basis to Rs 312 crore for the quarter-ended 31 December 2021, powered by a 21 percent YoY rise in ad spend at Rs 263.35 crore. On a yearly basis, the net profit is down 17 percent from Rs 377 crore as there was a tax reversal of Rs 102 crore, excluding which the profit has increased by 13 percent on YoY basis. Operating revenue rose 20 percent sequentially to Rs 1,567 crore and on yearly basis, the growth stood at 15 percent – a stellar period for the television news business. The revenues from the News vertical witnessed a growth of 13 percent YoY to Rs 347 crore compared to Rs 306 crore in the same period last year. Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Maruti Suzuki | The share price gained over 6 percent despite the auto major reporting a 48 percent fall in its standalone profit for the quarter-ended 31 December 2021. The country’s largest car maker Maruti Suzuki India on January 25 reported a standalone net profit of Rs 1,011 crore for the third quarter ended December 31, 2021 against Rs 1,941 crore a year ago. The company’s net profit stood at Rs 475 crore in the previous quarter. Standalone revenues for the Gurgaon-based carmaker stood at Rs 23,246 crore, down 1 percent, compared to Rs 23,458 crore reported a year ago. The preceding quarter saw the topline at Rs 20,538 crore. Research house Credit Suisse has kept an outperform call on the stock on the back of healthy demand, strong new model cycle and margin normalization. It raised the target price to Rs 10,389 from Rs 8,759.
Bajaj Auto | The scrip added over 5 percent last week. The auto firm’s standalone net profit for the quarter ended December 2021 fell 22 percent to Rs 1,214 crore from Rs 1,556 crore in the corresponding quarter last year. Its revenue from operations rose 1.25 percent YoY to Rs 9,022 crore from Rs 8,910 crore in the same quarter a year ago. Brokerage firm Prabhudas Lilladher has maintained buy on the stock with target of Rs 3,911 per share but has trimmed its estimates by 2/4% for FY23/24.
Zomato | The share tumbled over over 28 percent in the week gone by. Recent reports suggested the Federal Reserve rolling back liquidity amid higher inflation and indicating multiple interest rate hikes this year have weakened the case for investment in richly priced technology stocks with no near-term visibility on profitability. Execution is the only thing under our control, said Deepinder Goyal, founder and chief executive of online delivery firm Zomato on a day when the company’s stock has tumbled even as rival Swiggy raised a massive funding round. The selling in shares of Zomato along with other internet companies has been triggered by the surge in global and domestic bond yields that has made their valuations richer than what their fundamentals dictate.
Lux Industries | The stock crashed over 25 percent after its executive director was banned for insider trading, raising concerns over corporate governance at the company. The market regulator Securities Exchange Board of India barred 14 entities for insider trading and ordered impounding of “ill-gotten gains” worth Rs 2.94 crore in the matter of Lux Industries.
Torrent Pharma | The scrip declined 17 percent after the company reported a 16 percent drop in profit for the December quarter. Torrent Pharmaceuticals on Tuesday said its consolidated net profit declined to Rs 249 crore for the third quarter ended December 2021 on account of muted performance in the US market. The drug maker had posted a net profit of Rs 297 crore in the October-December period of 2020-21 fiscal. The company’s revenue from operations in the third quarter stood at Rs 2,108 crore as against Rs 1,995 crore a year back, Torrent Pharmaceuticals said in a statement. Global research and broking firm CLSA has downgraded the stock to outperform from ‘buy’ and has cut the target to Rs 3,350 from Rs 3,850 per share.
Tech Mahindra | The scrip was down 15 percent last week. The company announced acquisition of 100 percent stake in Europe-based Com Tec Co IT (CTC) and 25 percent stake in two insurtech platforms for a total of EUR 330 million. Also, the IT firm said it has strengthened its partnership with Mahindra Racing to provide EV engineering capabilities and drive digital transformation to enhance performance management.
Coforge | The stock slipped over 11 percent in the week gone by despite the company reporting over 50 percent rise in consolidated net profit at Rs 183.7 crore for December quarter 2021-22 and has revised its annual revenue growth outlook to around 37 per cent. The company had posted a net profit of Rs 122 crore in the year-ago period, Coforge said in a regulatory filing. Revenue from operations rose to Rs 1,658.1 crore in the quarter under review from Rs 1,190.6 crore in the year-ago period, it added. Brokerage firm ICICI Securities has a reduce call on the stock with a target price of Rs 4030.
L&T Technology | The stock price was down over 10 percent last week. The company reported mixed Q3 results although its revenue grew 4.2 percent in constant currency terms which was below the analysts’ estimates. The company reported a 33.7 per cent year-on-year (YoY) growth in consolidated net profit for the October-December 2021 period at Rs 248.8 crore. The company’s profit was up over 8 per cent quarter on quarter (QoQ).
Nazara Technologies | The stock price was down over 17 percent in the week gone by. The diversified gaming and sports media platform to acquire a 55 percent stake in programmatic advertising and monetisation company Datawrkz for a total consideration of up to Rs 124 crore, with the company valued up to Rs 225 crore.
Sandip Das
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