The ongoing result season has crossed halfway with 36 Nifty firms have announced their quarterly earnings till November 1. As many as 28 companies in the index have posted growth in their bottom line. Data showed that JSW Steel in the 50-share index posted the maximum 324 per cent growth in net profit at Rs 6,576 crore for the quarter ended September 30. Net sales of the company have grown 71 per cent to Rs 31,909 crore.
Jewellery-to-watch maker Titan Company also reported 268 per cent growth in net profit on 76 per cent rise in net sales in Q2. Shares of JSW Steel have advanced 78 per cent on a year-to-date basis till November 1, while Titan Company has gained 53 per cent during the same period.
ICICI Securities retained an ‘Add’ rating on Titan Company with a target price of Rs 2,600. “Titan continues to benefit from an increased share of jewellery in overall wedding expense, consumer spending on discretionary, given savings in travel and accelerated industry formalisation. We increase our FY22-23 earnings estimates by around 6-11 per cent, modelling revenue, EBITDA and PAT CAGR of 27, 61 and 78 per cent, respectively,” ICICI Securities said.
Coming to the broader BSE 500 index, at least 51 firms posted more than 100 per cent growth in net profit so far during the quarter under review, while seven companies reported profit against losses in the same quarter last year.
With a rise of 7,004 per cent in net profit in Q2, Maharashtra Scooters emerged as the top grosser in the list. Net profit of the company zoomed to Rs 135.70 crore, boosted by Rs 163.65 crore of other income. The company reported a net profit of Rs 1.91 crore for the corresponding quarter last year. Net sales of the company increased by 44.83 crore in Q2FY22 over Rs 2.03 crore in Q1FY21.
Zensar Technologies stood as the next player on the list. The net profit of the company increased 4,065 per cent to Rs 95.80. Bottomline of United Breweries, Steel Authority of India (SAIL), Gateway Distriparks, Vardhman Textiles, Triveni Turbine, Adani Green Energy, ABB Power, Cadila Healthcare, UCO Bank and Lakshmi Machine Works grew between 500 per cent and 2,200 per cent year-on-year in Q2.
Phillip Capital is positive on SAIL with a target price of Rs 170. “Increasing volumes would continue to drive the operational efficiency. Though the second half looks weak at this point on increasing coking coal prices, we expect steel realisations to increase absorbing some impact. Higher working capital may not allow SAIL to achieve the debt-free target, however, it is expected to exceed our previous expectations,” the brokerage said in a report.
Indian Railway Catering and Tourism Corporation (IRCTC), Jindal Stainless, Allcargo Logistics, Sanofi India, JK Paper, IRB Infra, Indus Tower, Vedanta, Gujarat Mineral Development, Whirlpool of India, GAIL (India), Mahindra & Mahindra Financial Services, Infibeam Avenues, Amber Enterprises and Mahindra CIE Automotive stood among other firms which posted over 100 per cent growth in net profit in Q2.
KR Choksey Shares and Securities has set a target price of Rs 86 for Infibeam Avenues, indicating an upside of around 90 per cent from the current market price of Rs 45.10.
“Increased transaction processed value (TPV), expected recovery in the hospitality, aviation and entertainment sectors, over the short-medium term, Bill Avenue platform, and newly signed Jio platform deal are expected to drive net revenue growth from transaction-based revenue segment. Also, the rising adoption of new businesses such as secured lending, AI-based credit platform, Buy New Pay Later (BNPL), Go Payments and Fable Fintech services will drive the growth for non-transaction-based revenue segment,” KR Choksey Shares and Securities said.
GSK Pharma, Jindal Stainless (Hisar), Indian Bank, Canara Bank, Motilal Oswal Financial Services, Rain Industries, Trident, Punjab National Bank, The Ramco Cements, Blue Dart Express, Avenue Supermarts, PCBL, Blue Star, Bank of Maharashtra, Vakrangee and Symphony stood among other companies that posted over 100 per cent growth in net profit during the quarter gone by.
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