AstraZeneca Pharma, Dr Lal Pathlabs, Torrent Pharma, and InterGlobe Aviation among those who moved the most
A volatile week that started with domestic indices struggling to build any momentum after the sharp rally on May 20 ended with both the Nifty 50 and BSE Sensex rising more than one percent each. The benchmark indices managed to rise for the second successive week aided by short covering rallies in banking and information technology stocks as the May derivative series expired on May 26. However, the recovery in the benchmark indices after starting the week with three successive days of losses did not trickle down to the broader market as the Nifty Midcap 100 index ended the week over one percent lower.
AstraZeneca Pharma | The share gained 15 percent after the company reported net profit at Rs 27.98 crore for March quarter, up 2.58 percent from a year ago. EBITDA stood at Rs 41.65 crore, down 3.05 percent. The board at its meeting on May 26 recommended a final dividend of Rs 8 per share for the previous financial year 2021-22.
Dr Lal Pathlabs | The stock was up over 12 percent in the week gone by. The company posted a 27 percent year on year decline in consolidated net profit to Rs 62.1 crore for March quarter. Operating revenue increased 12.7 percent to Rs 485.5 crore.
Torrent Pharma | The scrip added over 10 percent after the board recommended an issue of bonus shares in the ratio of 1:1 or one share for each fully paid up share held. The company has also declared a final dividend of Rs 23 per share of Rs 5 each including special dividend of Rs 15 per share. Torrent swung to a net loss of Rs 118 crore for the quarter ended March 31 as headwinds buffeted its EU business and the liquids business discontinued in the US. The company had registered a profit after tax of Rs 324 crore in the corresponding quarter last year.
InterGlobe Aviation | The stock rose over nine percent despite the company reporting a consolidated net loss of Rs 1,681.80 crore for the quarter ended March due to a surge in aircraft fuel expenses. The company had posted a net loss of Rs 1,141.98 crore in the corresponding quarter of the previous fiscal. Revenue jumped 29 percent to Rs 8,020.75 crore. Passenger ticket revenues came in at Rs 6,884.70 crore, up 38.4 percent, while ancillary revenues stood at Rs 1,058.30 crore, up 18.8 percent. Research firm Credit Suisse has maintained an outperform call on the stock and cut the target price to Rs 2,200 from Rs 2,500 per share. JPMorgan has upgraded the stock to overweight and raised the target to Rs 2,000 from Rs 1,825 per share.
Godrej Industries | The stock gained over seven percent last week. The firm reported a consolidated net profit of Rs 422.82 crore for fourth quarter ended March versus a loss of Rs 92.17 crore for the same quarter of previous fiscal. Revenue from operations stood at Rs 4,444.87 crore versus Rs 2,610.69 crore in the year-ago period. Total expenses were Rs 4,202.23 crore, up from Rs 2,813.8 crore in the corresponding period a year ago. The company said its board has approved the reappointment of Nadir Godrej as chairman and managing director for a further period of three years starting April 2023.
Ashok Leyland | The share added over seven percent in the week gone by. The company reported better than expected March quarter (Q4FY22) results. Revenue grew 25 percent year on year to Rs 8,744 crore driven by an increase in net realisation, favourable mix and volume growth of 11 percent. Ashok Leyland recorded a truck market share of 30.6 percent, the highest in the last 11 quarters. Net standalone profit stood at Rs 901.37 crore, up 273.74 percent.
Mahindra & Mahindra | The share was up five percent in the week gone by. Mahindra & Mahindra on May 28 reported a 4.5 percent sequential decline in standalone net profit at Rs 1,292 crore for the March quarter. Standalone revenues for the Mumbai based automaker rose 12 percent quarter on quarter to Rs 17,124 crore. On a yearly basis, they went higher by 28.4 percent. For the full year from April-March 2022, standalone PAT after exceptional item grew 401.5 percent to Rs 4,935 crore from profit after exceptional item of Rs 984 crore in the previous year. The company recommended a dividend of Rs 11.55 per ordinary (equity) share which is 231 percent of Rs 5 face value for the financial year ended March 2022.
Divi’s Labs | The stock price shed over 18 percent last week despite a robust performance after analysts warned that the abnormal growth looks unsustainable as the pandemic eases globally. Divi’s net profit increased 78 percent to Rs 895 crore in the March quarter from Rs 502 crore a year ago. Revenue from operations rose 40 percent to Rs 2,518 crore. “Given the current high base, 85 percent capacity utilisation, delays at new plants, as well as reduced margins and the absence of abnormal growth, we cut our FY23-FY24 EBITDA estimates by 9-15 percent and lower our target enterprise value/EBITDA multiple from 27x to 26x (implied P/E multiple of 37x) – in line with five-year average multiple,” a BoB Capital report said. The brokerage has downgraded the stock to ‘hold’ from ‘buy’ and revised the target price to Rs 4,250 from Rs 5,250 a share.
Suzlon Energy | The scrip was down over 15 percent after the company reported a poor performance in the March quarter. The utility player reported a consolidated net loss of Rs 205.52 crore versus Rs 54.25 crore a year ago. Total income rose 117.2 percent to Rs 2,478.73 crore. The company also reported a consolidated net loss of Rs 176.55 crore for 2021-22.
JSW Steel | The share price shed over 13 percent in the week gone by. The company reported a 23 percent year on year fall in consolidated net profit at Rs 3,234 crore for the March quarter. On a sequential basis, the profit came in 25.6 percent lower. Surge in cost of raw materials, power & fuel, other expenses and inventory costs led to the fall in profits despite a substantial improvement in revenues fuelled by better volumes and higher realisations. The company has recommended a dividend of Rs 17.35 per share of Re 1 each for the year ended March 2022. The total outflow on account of equity dividend will be Rs 4,194 crore compared to Rs 1,571 crore for FY21.
Sandip Das
