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These 25 BSE 500 firms turned around in Q3, should you invest now?

These 25 BSE 500 firms turned around in Q3, should you invest now?

Some 25 companies in the BSE 500 index reported a turnaround performance in Q3FY22 on a year-on-year basis.

These 25 BSE 500 firms turned around in Q3, should you invest now? These 25 BSE 500 firms turned around in Q3, should you invest now?

Financial results for the December quarter came in line with market expectations. However, some 25 companies in the BSE 500 index reported a turnaround performance in Q3FY22 on a year-on-year basis. These stocks mostly come from across the sectors including airlines, power, hotels, finance, consumer goods, cement, chemicals and real estate, among others.

Gujarat Fluorochemicals, whose share price has jumped 398 per cent in the past one year, reported a profit of Rs 204.65 crore during the quarter under review against a net loss of Rs 480.43 crore in the same quarter last year.

Edelweiss Securities is bullish on Gujarat Fluorochemicals (GFL) with a target price of Rs 3,447. “We have recently initiated coverage on GFL as we believe that the company offers strong growth opportunity in fluoropolymers and is a likely beneficiary of strong positioning in fluorine chemistry."

Adani Power is next on the list. It posted a profit of Rs 218.49 crore in Q3FY22 against a loss of Rs 288.74 crore in Q3FY21. Shares of Adani Power have surged 142 per cent to Rs 131.85 in the past one year.

Sectorwise, Mahindra Lifespace Developers and Brigade Enterprises also managed to report profits during the quarter against losses in the same period last year. Where the former posted a net profit of Rs 25.02 crore against a loss of Rs 11.19 crore YOY, the latter reported a net profit of Rs 78.36 crore against a loss of Rs 16.12 crore during the same period.

In terms of stock performance, Mahindra Lifespace Developers has gained 93 per cent since February 17 last year, while Brigade Enterprises gained 77 per cent.

Sharing its view on Brigade Enterprises, Nirmal Bang Securities said, “The Q3FY22 results of Brigade support our optimistic view on the stock. The results showed a continuation of volume momentum in residential sales, optimism in office rentals with the leasing of 0.4mn sq ft amid strong growth in enquiries, revival in retail malls with 85 per cent of the tenants showing sales more than 85 per cent of pre-covid levels and strong revival in the hospitality business.” The brokerage has ‘Buy’ on Brigade Enterprises with a price target of Rs 591.

Coming to aviation space, InterGlobe Aviation reported a profit of Rs 129.79 crore for the third quarter ended December 31. The airline major had posted a loss of Rs 620.14 crore in the corresponding quarter last year. SpiceJet also posted a profit of Rs 42.27 crore against a loss of Rs 66.78 crore during the same period.

Edelweiss Securities retained ‘Buy’ on InterGobe Aviation post Q3 results. “Indigo is a proxy for a re-opening trade led by better yields and pent-up PAX demand. In the long run, XLRR fleet addition and strong cargo business shall enhance competitiveness,” Edelweiss said.

Spandana Sphoorty Financial, Mahindra & Mahindra Financial Services, Punjab & Sind Bank, Edelweiss Financial Services and CreditAccess Grameen stood among players in the financial space whose net profit came into the green on YoY basis.

Commenting on December-quarter earnings, Motilal Oswal Financial Services said, “Corporate earnings for Q3FY22 came in line with our expectations. However, sectors reported a wide divergence as auto, cement, consumer staples and durables, specialty chemicals, healthcare and metals were impacted by sharp raw material inflation. BFSI was the standout sector in this quarter aided by improvements in loan growth and disbursements, while asset quality improved sequentially propelled by moderation in slippages as well as healthy recovery and upgrades.”

In the hotel space, The Indian Hotels Company and EIH posted a net profit of Rs 76.01 crore and Rs 38.03 crore in the December quarter against losses of Rs 118.88 crore and Rs 55.73 crore, respectively, in the same period last year.

Shares of Indian Hotels and EIH gained 71 per cent and 43 per cent, respectively, during the past one year.

Suzlon Energy, VIP Industries, Dishman Carbogen Amcis, Varun Beverages, Bharat Heavy Electricals, IDFC, India Tourism Development Corporation, Mangalore Refinery and Petrochemicals, Bharat Forge, Star Cement, HEG and Bayer CropScience stood among other players which posted a profit in Q3 against losses in the same quarter a year ago.

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Published on: Feb 18, 2022, 12:08 PM IST
Posted by: Tarab Zaidi, Feb 18, 2022, 12:03 PM IST