The market recovered sharply and snapped a five-week losing streak in the highly volatile week ended May 20 with benchmark indices gaining three percent each amid worries over rising interest rate, inflation, volatile global markets and mixed earnings. Last week, BSE Sensex added 1,532.77 points (2.90 percent) to close at 54,326.39 while the Nifty50 rose 484.05 points (3.06 percent) to 16,266.2.
Welspun Corp | The stock price jumped over 37 percent after the company announced that it has bagged a work order worth over Rs 5,000 crore from a customer in the United States. ”The order is the single largest in its history, for the supply of pipes, at Rs 5,000 plus crore to the US,” Welspun Corp said in a statement. The order is for supplying 3.25 lakh tonnes of large diameter coated pipes for transporting natural gas from the Permian Basin to Houston. The pipes for this order will be produced from the company’s Little Rock plant in the US, it said.
Ruchi Soya Industries | The share added 24 percent as Patanjali Ayurved decided to sell its food retail business to the firm. Ramdev-led Patanjali Ayurved will sell its food retail business to group firm Ruchi Soya Industries for Rs 690 crore as part of its strategy to focus on non-food, traditional medicine and wellness business. Patanjali Ayurved had acquired Ruchi Soya through an insolvency process. In a filing, Ruchi Soya said it has entered into a “business transfer agreement” with Patanjali Ayurved to acquire the food retail business of the latter as a going concern on a slump sale basis.
Hindustan Aeronautics | The scrip was up over 16 percent in the week gone by. The company reported 90 percent year on year jump in consolidated net profit at Rs 3,105 crore for the March quarter (Q4FY22). Revenue from operations grew six percent to Rs 11,561 crore. The company said sales include Rs 1,276 crore of differential sales on finalisation of fixed price quotation for FY2016-17 approved by the ministry of defence. The firm further said that ‘Type Certification’ of first indigenous light transport civil passenger aircraft Hindustan 228-201 was handed over by Directorate General of Civil Aviation to the firm’s transport aircraft R&D centre, Kanpur.
Indigo Paints | The share rose over 12 percent after net profit surged 39.1 percent to Rs 34.58 crore on a 13.41 percent rise in net sales to Rs 288.38 crore in Q4FY22 over the same period last year. Profit before tax increased 27.79 percent to Rs 47.41 crore. EBITDA (excluding other income) was Rs 53.77 crore, a growth of 25.22 percent. On a full year basis, the company recorded a 18.63 percent jump in net profit to Rs 84.04 crore on a 25.2 percent rise in net sales to Rs 905.97 crore in FY22. The board declared a dividend of Rs 3 per share for the financial year ended March 2022.
Yes Bank | The scrip added 12 percent in the week gone by. According to media reports, Yes Bank has picked JC Flowers Asset Reconstruction Company (ARC) as its joint venture partner to offload nearly Rs 51,000 crore of distressed loans – a move that the private sector bank believes could improve its valuation and help attract equity investors it badly needs. Yes Bank invited bids for its distressed loans portfolio amounting to Rs 51,000 crore soon after the Reserve Bank of India in March 2021 rejected its plan to set up an ARC as its subsidiary. The transaction, once completed, will be India’s largest sale of distressed assets that will result in Yes Bank becoming nearly a zero non-performing asset (NPA) bank, making it easier for the lender to raise capital.
LIC Housing Finance | The stock price gained over 11 percent after the financier reported a nearly threefold year on year jump in profit after tax to Rs 1,118.64 crore on lower provisions and improvement in collection efficiencies. Net interest margin (NIM) for the quarter stood at 2.65 percent as against 2.66 percent a year ago. The lender expects NIM to be 2.44 percent in FY23. Individual home loan portfolio was up 13 percent year on year at Rs 204,230 crore as of the end of the quarter under review. The financier expects growth of 15 percent in the portfolio. Global research firm CLSA has maintained a buy call on the stock with a target of Rs 525.
Eicher Motors | The share price added 11 percent last week. Eicher Motors on May 13 declared a consolidated profit after tax (PAT) of Rs 610 crore for the quarter ended March 2022, up 16 percent from a year ago. On a sequential basis, growth in profit was 34 percent. The maker of the iconic Royal Enfield reported a year on year growth of 8.6 percent in consolidated revenue at Rs 3,193 crore. Sequentially, revenues rose 11 percent. For the year from April 2021–March 2022, PAT jumped 25 percent to Rs 1,677 crore. Consolidated revenues rose 18 percent to Rs 10,298 crore. Global research firm UBS has a buy rating on Eicher Motors with target of Rs 3,100 per share.
Coal India | The stock rose 10 percent in the week gone by. The state-owned firm said coal supply to the power sector rose 15.6 percent to 49.7 million tonnes (mt) last month in the wake of high demand of the dry fuel from electricity generating plants and stressed that it is planning to augment its dispatches further, especially to power plants in the coming months. Coal India, which accounts for over 80 percent of domestic coal output, is one of the major suppliers of fossil fuel to the power sector. “Coal output of April 2022 was the highest ever for the month so far eclipsing the previous peak of 45.3 mt achieved in April 2019,” the firm said. The company’s total offtake rose sharply to 57.5 mt in April, registering six percent growth over the same month last year.
Dr Lal Pathlabs | The stock shed over 14 percent in the week gone by after the firm reported lower than expected March quarter earnings. Net profit fell 26 percent year on year to Rs 61.30 crore against Bloomberg estimates of Rs 82.31 crore. Revenue rose 13 percent to Rs 486 crore. Total cost rose 24 percent to Rs 414 crore. EBITDA margin declined 340 basis points to 24.9 percent due to consolidation of low margin suburban business. “Result was below our estimates due to sequential decline in ex-Covid business,” said ICICI Securities in a note to investors. The brokerage firm has maintained buy rating on the stock but cut its target price to Rs 2981 from Rs 3525 a share.
Lupin | The share price was down over 8 percent last week after the company posted a loss of Rs 518 crore in the quarter ended March. Investors were disappointed by a margin decline of 1180 basis points (bps) to 6.9 percent on a year on year basis. The company’s US sales also came in below expectations at $ 181 million, a dip of 10.2 percent quarter on quarter.