Nervousness in the global market after the US Federal Reserve hinted at an aggressive rate hike, rising bond yields and crude prices, the worsening Russia-Ukraine war, mixed quarterly earnings from India Inc and relentless FII selling have kept investors worried.
During the week ended April 29, the Sensex was down 136.28 points, o 0.23 percent, at 57,060.87, while the Nifty ended 69.45 points, or 0.40 percent, lower at 17,102.5. Among sectors, Nifty media fell 6 percent, oil & gas 2.6 percent and the IT index ended 2.5 percent lower. Nifty FMCG index rose 1 percent. Foreign institutional investors (FIIs) sold equities worth of Rs 11,446.52 crore, while domestic institutional investors (DIIs) bought equities worth of Rs 9,703.04 crore during the week.
Mahindra CIE | The stock jumped over 18 percent after the auto component maker posted a consolidated net profit of Rs 161.42 crore for the first quarter ended March, up from Rs 10.09 crore in the year-ago period. The company, which follows January-December financial year, said revenue from operations rose to Rs 2,588.36 crore, up from Rs 2,189.4 crore in the January-March period of the previous year. The board of the Pune-based company recommended a final dividend of Rs 2.5 a share of Rs 10 each for the financial year ended December 31, 2021. The company’s standalone sales grew 15 percent YoY to Rs 1,202 crore from Rs 1,049 crore in the year-ago quarter.
Hero MotoCorp | The company shares added over 9 percent in the week gone by. Two-wheeler stocks gained from improved demand in April 2022 due to the festive and ongoing marriage season, according to a Motilal Oswal report. “Demand improved in April 2022 amid the festive (Navratri) and ongoing marriage season, which started around 20th April 20 22). Besides, improvement in cash flows in the rural economy due to the Rabi corp harvesting is supporting the demand revival,” the brokerage firm said. Vinay Rajani of HDFC Securities is of the view that the stock has recently surpassed crucial resistance of 50 days EMA (exponential moving average). Auto sector has started outperforming. “Price breakout is accompanied by rising volumes. Traders and investors should continue to hold on the stock. Short term resistance is seen at Rs 2,800, support at Rs 2,240,” he said.
Coromandel International | The scrip was up 7 percent last week. The company’s consolidated net profit surged 85.94 percent to Rs 289.79 crore on a 49.63 percent rise in revenue from operations to Rs 4,226.81 crore in Q4 FY22 over Q4 FY21. Consolidated profit before tax (PBT) surged 82.33 percent to Rs 388.96 crore in Q4 March 2022 as against Rs 213.32 crore in Q4 March 2021. On a yearly basis, consolidated net profit rose 14.99 percent to Rs 1,528.46 crore. The board recommended a final dividend of Rs 6 per equity share of face value Re 1 each for the FY 2021-22.
Persistent System | The stock rose 7 percent last week. Quarterly net profit of the firm came in at Rs. 200.99 crore in March 2022 up 45.9 percent from Rs. 137.76 crore in March 2021. EBITDA stands at Rs 323.25 crore in March 2022 up 41.55 percent from Rs. 228.37 crore in March 2021. Its EPS increased to Rs. 26.30 in March 2022 from Rs. 18.03 in March 2021. Net sales came in at Rs 1,637.85 crore in March 2022 up 47.11 percent from Rs 1,113.36 crore in March 2021. Shrikant Chouhan of Kotak Securities is of the view that after a sharp correction from the level of Rs 4,950, the stock took support near 200-day SMA and bounced back sharply. In the last two days, it recovered over 7 percent. On last Thursday, after a volatile trading session the stock has formed long leg Doji candlestick formation suggesting indecisiveness between bulls and bears. Currently the stock is witnessing non-directional activity perhaps, and traders are waiting for either side breakout. For the bulls, Rs 4,400 would be the important breakout level to watch. And if the stock manages to close above the same, we could expect quick uptrend rally towards Rs 4,600. On the flip side, trading below Rs 4,150 may increase further weakness up to Rs 4,000-3,950.
Indian Hotels | The share price was up 6 percent after the company reported a consolidated net profit of Rs 71.57 crore in the fourth quarter ended on March 31, 2022. The company had posted a consolidated net loss of Rs 97.72 crore in the same period of the previous fiscal, IHCL said in a regulatory filing. Consolidated revenue from operations during the quarter under review stood at Rs 872.08 crore as against Rs 615.02 crore in the year-ago period. Total expenses during the fourth quarter stood at Rs 894.16 crore as compared to Rs 754.15 crore in the same period a year ago, the company said. The firm is aiming to be “debt-free” by April 2023, its managing director, Puneet Chhatwal, said, according to a media report.
Varroc Engineering | The scrip added 5 percent after the company decided to divest its four-wheeler lighting business in Americas and Europe for 600 million euros. “Varroc, along with its wholly-owned subsidiary VarrocCorp Holding BV Netherlands, have entered into an agreement with Compagnie Plastic Omnium Se, France for the divestment,” the company said in its release. Varroc will also continue to operate its China joint venture and other international two-wheeler businesses in countries like Italy and Vietnam and global electronics businesses in Poland and Romania. The company is also retaining its four-wheeler lighting operations in Asia. The board also gave its in-principle approval for the formation of a wholly owned subsidiary in India for pursuing R&D.
Tata Teleservices | The stock was down over 16 percent as the company declared its March quarter earnings. Net Loss of Tata Teleservices (Maharashtra) was reported to Rs 280.62 crore in the quarter ended March 2022 as against net loss of Rs 288.29 crore during the previous quarter ended March 2021. Sales rose 2.82 percent to Rs 272.78 crore in the quarter ended March 2022 as against Rs 265.29 crore during the previous quarter ended March 2021.
JBM Auto | The stock price slipped 13 percent in the week gone by. JBM Auto Limited has executed an agreement to acquire the balance 20.10% stake consisting of 30,15,343 equity shares of JBM Solaris Electric Vehicles Private Limited which is a subsidiary of the company. The said acquisition is from the Joint Venture Partner Solaris Bus & Coach SP. Z O.O. The Company already holds 70.90% of the paid-up equity share Capital of JBM Solaris Electric Vehicles Private Limited. Post this acquisition, JBM Solaris EV will become a wholly-owned subsidiary of the Company. It has fixed cash consideration of Rs84.50 lakh for this acquisition.
Schaeffler India | The share price jumped over 17 percent after the company reported a strong operational performance in the March quarter. In Q1CY22, the company’s profit after tax jumped 48 percent YoY to Rs 207 crore from Rs 140 crore in Q1CY21. Revenue grew 19 percent YoY at Rs 1,568 crore. Earnings before interest, taxes, depreciation, and amortization margin improved to 19.8 percent from 16.6 percent on consistently improving business mix coupled with sustained counter measures.
HDFC Life Insurance | The scrip added over 5 percent after the firm reported a net profit of Rs 357.52 crore in March quarter, up 12.4 percent from a year ago. The net profit came on the back of 11 percent growth in net premium income, which stood at Rs 14,289.6 crore. Expenses of management rose 15 percent even as net commissions fell by 3.88 percent to Rs 620.7 crore for the quarter. Operating expenses as a percentage of total premium rose marginally to 12.3 percent from 12 percent a year ago. Research house Morgan Stanley has maintained overweight call on the stock with a target price Rs 675.
Sandip Das
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