The market will first react to HDFC Bank earnings, while the volatility is expected to continue amid corporate earnings and global cues, experts said
The market lost around half-a-percent in the week ended October 7 amid volatile and rangebound trade, as fears of recession in the West, mixed corporate earnings and weak economic data made the bulls uncomfortable at Dalal Street. The BSE Sensex fell 271 points to 57,920, and the Nifty50 shed 129 points to 17,186, while the broader markets have fallen more than benchmarks as the Nifty Midcap 100 index declined 2.8 percent and Smallcap 100 index was down 1.7 percent.
Federal Bank | CMP: Rs 130.35 | The scrip gained 6 percent after the bank reported a 53 percent year-on-year (YoY) rise in net profit at Rs 704 crore for the quarter ended September 2022. Net profit in the year-ago period stood at Rs 460 crore. Net interest income (NII) grew 19 percent YoY to Rs 1,761.83 crore. The bank’s asset quality improved sequentially with gross NPA (non-performing assets) at 2.46 percent as compared to 2.69 percent in the previous quarter. Net NPA and Net NPA as a percentage to Net Advances stood at Rs 1,262.35 crore and 0.78 percent, respectively, the company said. Total advances increased 19.4 percent to Rs 1.64 lakh crore as of September 30, 2022.
HCL Tech | CMP: Rs 1002.55 | The share price rose 4 percent last week. IT major HCL Tech said its consolidated net profit for the September quarter increased 7.05 percent year on year to Rs 3,489 crore. Revenue from operations stood at Rs 24,686 crore, a 19.5 percent growth. Sequentially, revenue rose 5.2 percent and profit climbed 6.27 percent. Macquarie has kept an ‘outperform’ call on the stock with a target of Rs 1,420. Morgan Stanley has upgraded the stock to ‘overweight’ from ‘underweight’ and raised the target price to Rs 1,100 from Rs 870.
India Cements | CMP: Rs 230.15 | The stock price fell over 16 percent after the company announced that it has entered into in a pact with JSW Cement to divest its entire stake in Springway Mining Pvt Ltd (SMPL) for nearly Rs 477 crore. The company informed stock exchanges that it has “entered into a Share Purchase Agreement on October 10 with JSW Cement Limited (buyer) and divested the entire shareholdings held by it in Springway Mining Private Limited (SMPL), for a total consideration of Rs 476.87 crore.”
Adani Wilmar | CMP: Rs 654.85 | The scrip shed 12 percent after the management said that overall revenue in the September quarter is expected to grow in low single digit and volumes in the first half of the fiscal will clock low double-digit growth. “Rising interest rates, slow uptick in rural demand, and delayed withdrawal of monsoon in major parts of India impacted business in the quarter gone by,” it said. Leveraging the pan-India distribution of edible oil business, food and FMCG basket for the company continued its growth trajectory, expanding over 40 percent.
Wipro | CMP: Rs 377.30 | The stock price shed over 7 percent last week. The IT services major reported a consolidated net profit decline of 9.27 percent for September quarter to Rs 2,659 crore from a year ago. Revenue from operations stood at Rs 22,539.7 crore, a 14.60 percent growth over a year ago. Some of the numbers were way below expectations while revenue came in line with estimates. JPMorgan has an underweight call on the stock with a target price of Rs 360.
Delta Corp | CMP: Rs 210.35 | The share price fell over 7 percent in the week gone by even after the company recorded highest consolidated revenue of Rs 651 crore and net profit of Rs 125 crore for the half year of FY 2022-23. “We have reported highest ever revenue for the quarter. We have surpassed the pre-COVID set of numbers and have registered strong growth,” the company said. Investors believe a 28 percent GST consideration on casino business is a key overhang on the stock, however, Delta Corp’s management have clarified in Q1FY23 earnings call that “The casino business operating out of Goa right from July 1, 2017, has been paying a 28 percent GST. So as far as we are concerned, there will not be any impact from GST perspective.”
Indiabulls Housing Finance | CMP: Rs 124.45 | The scrip was down over 8 percent last week. The Enforcement Directorate (ED) has moved the Supreme Court to challenge the Delhi High Court’s order ruling out a probe against the home finance company, according to media sources. ED will seek continuation of probe against the company by setting aside of Delhi HC order in the Supreme Court.
Biocon | CMP: Rs 261.30 | The stock price was down over 7 percent after the company said that the European Directorate for the Quality of Medicines and Healthcare (EDQM) found one major deficiency at its Bengaluru active pharmaceutical ingredient (API) plant. “The European medical regulator conducted a good manufacturing practices (GMP) inspection of its API plant in Bengaluru from 12 September 2022 to 14 September 2022. Post inspection, a list of deficiencies was issued on 5 October 2022,” Biocon said in an exchange filing on October 6. The US Food and Drug Administration conducted three on-site inspections at Biocon Biologics’ (company’s subsidiary) seven manufacturing facilities spanning two sites in Bengaluru, India and one at Johor, Malaysia. These inspections started with the Bengaluru site on August 11, 2022 and concluded with the Malaysia site on August 30, 2022. Biocon had said that the company does not expect the outcome of these inspections to impact the current supply of its products.
Angel One | CMP: Rs 1649.60 | The stock added over 8 percent in the week gone by. Angel One reported consolidated total income of Rs 745.9 crore for the quarter, recording a 31 percent year-on-year growth. Consolidated profit after tax came in at Rs 213 crore, a growth of 59 percent on a quarterly basis. The broking firm saw a 77.4 percent year on year increase in its client base to 11.6 million at the end of September. The board also recommended a dividend of Rs 9 per share.
Alok Industries | CMP: Rs 16.90 | The share price slipped over 6 percent in the week gone by. The firm reported a widening of its consolidated net loss to Rs 191.50 crore for the second quarter that ended on September 30, 2022. The company had reported a net loss of Rs 84.11 crore in the July-September quarter a year ago. Its revenue from operations was down 10.81 percent to Rs 1,698.58 crore during the quarter under review as against Rs 1,904.57 crore in the corresponding period of the last fiscal, Alok Industries said in a BSE filing.
Sandip Das
`); } if (res.stay_updated) { $ (“.stay-updated-ajax”).html(res.stay_updated); } } catch (error) { console.log(‘Error in video’, error); } } }) }, 8000); })
