In the absence of any major event, market participants will be closely eyeing the performance of global stocks, the Russia-Ukraine war updates and China’s COVID situation for cues. Further, the listing of country’s largest insurer, LIC, would also be on the radar. On the data front, WPI Inflation numbers scheduled for May 17 would also be looked at, experts say.
During the last week, BSE Sensex declined 2,041.96 points (3.72 percent) to close at 52,793.62, while the Nifty50 shed 629.05 points (3.83 percent) to end at 15,782.20 levels. However, in the month of May Sensex and Nifty have lost more than 7 percent each. During the week gone by, all the sectoral indices were in the red with BSE Metal and Power indices falling 13 percent each. BSE Telecom index shed 6.7 percent and Realty index declined 5.8 percent. In broader market, the BSE Mid-cap index lost 5.6 percent, Small-cap index shed 6.5 percent and Large-cap Index declined 4.4 percent.
Gujarat Gas | The stock price added 10 percent last week. The company clocked a 27.6 percent year-on-year growth in consolidated profit at Rs 444.4 crore in quarter ended March 2022 despite higher input cost, led by strong topline and operating income. Revenue surged 36.5 percent to Rs 4,773.4 crore during the same period. Vidnyan Sawant, AVP – Technical Research, at GEPL Capital recommends buying the stock with target of Rs 626 per share. On the indicator front, the RSI plotted on the daily time frame has sustained above the 60 mark with a higher top higher bottom pattern, indicating increasing bullish momentum in the prices. Going ahead, we expect the prices to move at higher levels towards Rs 594 post which we might see a move towards Rs 626 levels. We recommend a stop-loss of Rs 522 on daily closing basis, he said.
Siemens | The share price rose 3 percent after the company posted a 2.5 percent rise in its consolidated net profit at Rs 340 crore in the quarter ended March 2022. In the year-ago quarter, the consolidated net profit of the company was Rs 331.5 crore, Siemens said in a BSE filing. Total income in the quarter under review rose to Rs 4,021.5 crore from Rs 3,540 crore in the same period a year.
GNFC | The scrip was down 22 percent in the week gone by. Quarterly net profit came in at Rs 643.18 crore in March 2022 up 107.12% from Rs. 310.53 crore in March 2021. EBITDA was reported at Rs 946.52 crore in March 2022 up 82.17% from Rs. 519.59 crore in March 2021. Ruchit Jain of 5paisa.com feels that traders with exiting long positions can continue to hold with a stop-loss placed below the swing low of Rs 750, but fresh buying is not recommended here as the risk reward ratio is not favourable. The immediate supports for the stock are placed around Rs 777 and Rs 752 while resistances are seen around Rs 870 and Rs 900, he said.
Vedanta | The stock shed 18 percent last week. Vedanta reported about 5 percent decline in its consolidated profit after tax (PAT) at Rs 7,261 crore in the March 2022 quarter on account of higher expenses. Its PAT was Rs 7,629 crore in the same quarter of 2020-21, Vedanta Ltd said in a press statement. However, during the January-March period, the company’s “PAT before exceptional item and one-time tax credit” increased 48 per cent to Rs 7,570 crore against Rs 5,105 crore in the year-ago period, as per the statement. The Board has approved first interim dividend of Rs 31.5 per equity share for the financial year 2022-23.
Hatsun Agro | The share slipped 18 percent in the week gone by. The company’s net profit declined 55.92% to Rs 25.19 crore on 4.04% increase in net sales to Rs 1626.26 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) fell 56% year-on-year to Rs 39.99 crore in Q4 March 2022. Revenues from milk & milk products segment grew 3.8% to Rs 1,507.73 crore in Q4 FY22 as against Rs 1,452.5 crore in Q4 FY21.
Punjab National Bank | The stock price was down 13 percent after the state-run lender reported a 66 percent decline in standalone net profit at Rs 202 crore for the fourth quarter of the financial year 2021-22 on higher amounts parked towards provisioning, even as its NPA levels dipped. It reported a net profit of Rs 586 crore in the corresponding quarter a year ago. The total standalone income during the January-March quarter stood at Rs 21,095 crore, down from Rs 21,386 crore in the corresponding period last year. Global research firm Morgan Stanley has retained its equal-weight call on the stock with a target of Rs 41 per share.
Voltas | The share price declined 12 percent after the company reported a weak set of numbers for the March quarter with 24 percent year on year (YoY) decline in consolidated net profit at Rs 183 crore due to losses from joint ventures (JVs). Voltas reported revenue growth of one percent to Rs 2,667 crore as unitary cooling products were up 13 percent and electro-mechanical projects and services recorded a sharp fall. EBITDA margin dipped 268 basis points to 9.8 percent on account of higher raw material cost and delay in price hikes. Global research firm Credit Suisse has downgraded the stock to underperform from neutral and has cut target to Rs 975 from Rs 1,255. It has also cut 2023/24E by 10/13% to Rs 21.7/26.6 respectively, according to a CNBC-TV18 report. CLSA has maintained a sell call on the stock and has cut target to Rs 1,000. It is of the view that summer demand was strong but margin outlook was muted. It has cut EBITDA estimates by 2-6% on lower-than-expected results.
Avenue Supermarts | The scrip fell over 11 percent after the company reported a 22 percent decline in its sequentially consolidated net profit to Rs 427 crore for the fourth quarter ended March 2022. However, the company posted a 3 percent rise in net profit on year. Revenue fell 5 percent quarter-on-quarter to Rs 8,787 crore from Rs 9,218 crore. Year on year, revenue rose 19 percent. For FY22, its total debt stood at Rs 416 crore against Rs 296 crore a year ago.
Aurobindo Pharma | The scrip declined over 8 percent after the United States Food and Drug Administration (US FDA) issued six observations for the company’s Hyderabad plant. “The US FDA inspected Aurobindo Pharma’s Unit VII, an oral manufacturing facility at Jedcherla, Hyderabad from May 2 to 10,” the company said in its press release.
Canara Bank | The stock was down 11 percent last week. The bank reported a 64.90 percent jump in its March quarter net at Rs 1,666 crore on the back of a rise in core interest income and a decrease in money set aside for bad debts. The Bengaluru-headquartered bank closed FY22 with a net profit of Rs 5,678 crore, which was more than double of the year-ago period. For the reporting quarter, its core net interest income rose by nearly 25 percent to Rs 7,005 crore, on the back of a 9.77 percent growth in credit and a 0.42 percent widening in the net interest margin to 2.93 percent. Emkay Global Financial Services expects a gradual improvement in RoA/RoE to 0.6-0.7%/12-15% over FY23-25E from 0.5%/11% in FY22, led by better growth and lower LLP. It has retained buy with a revised target of Rs 282 agains Rs 290 based on (0.8x FY24E ABV) and subs investment of Rs 23.t growth in consolidated net profit at Rs 354 crore for the quarter ended March 31, 2022, compared to Rs 88 crore in the same period last year on account of recognition of MAT Credit Entitlement amounting to Rs 288 crore, the company said. Consolidated revenue from operations grew by around 5 percent to Rs 770 crore against Rs 731 crore.
Sandip Das
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