Multifold jump in Q4 profit: How 10 stocks fared - Should you buy?

Star Health and Allied Insurance Company Ltd, Eternal Ltd, Chennai Petroleum Corporation Ltd, RBL Bank Ltd and Sterling and Wilson Renewable Energy Ltd were among 10 companies in the BSE500 index,till Wednesday, which reported more than doubling of Q4 profit after tax (PAT) in the March quarter. Others included Ceat Ltd, IIFL Finance Ltd, The India Cements Ltd, Navin Fluorine International Ltd and Mahindra & Mahindra Financial Services Ltd (MMFSL), data compiled by Business Today from corporate database AceEquity suggested. These 10 stocks delivered up to 42 per cent returns in April. A couple of these stocks received 'Buy' ratings, following their quarterly results.

Star Health, Eternal top BSE500 table

In the case of Star Health, the company reported a profit of Rs 111.34 crore for the March quarter compared with a profit of mere Rs 51 lakh in the year-ago quarter, up 218 times. "Premium growth was healthy, with the company choosing to sacrifice even higher growth in favour of profitability," YES Securities said.

This brokerage retained 'Buy' rating on Star Health with a revised price target of Rs 650. The stock was up 13 per cent in April (till Wednesday).

Eternal Ltd saw its bottom line surging 346.15 per cent YoY to Rs 174 crore from Rs 39 crore in the year-ago quarter. The Eternal management is expecting above 60 per cent net order value (NOV) growth compounded annually ahead, implying over 4 times growth in 3 years with gradual move towards steady-state margins of 5 per cent. MOFSL said Eternal’s FD business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery, and e-commerce. It suggested 'Buy' and a target of Rs 340 on the stock that was up 7 per cent in April. 

CPCL Q4 profit growth over 200%

Chennai Petroleum Corporation Ltd saw its net profit after climbing 211 per cent YoY to Rs 1,399.72 crore from Rs 449.97 crore in the year-ago quarter. Analysts said CPCL reported strong yet in-line performance, driven by robust GRMs. CPCL's reported GRM improved to $13.75 per barrel, with core GRM at $10.3 per barrel, aided by inventory gains. Throughput remained strong at 2.93mmt, while opex stayed stable. 

"Despite forex loss, strong refining supported earnings. We maintain BUY with target of Rs 1,246," YES Securities said. The stock was up 11 per cent in April. 

RBL Bank stock factoring in strong Q4?

RBL Bank report 181 per cent YoY rise in net profit at Rs 244.42 crore. ICICI Securities noted that the lender clocked strong growth but net interest margin (NIM) contracted sharply. Credit card stress may remain elevated in H1FY27, it warned. It suggested a revised target of Rs 390 on the stock. Elara Securities said while strategic repair is underway, the current valuation of 1 times FY28E P/BV, following a 12 per cent outperformance in the past three months, largely captures the recent progress as well as residual risks.

Sterling and Wilson sees rating upgrade

Sterling and Wilson Renewable Energy Ltd reported Q4 profit at Rs 141.59 crore, up 157.38 per cent YoY. This stock is up 42 per cent in April. The company guided for 15 per cent growth in revenue and order book for FY27. Q4 Ebitda and PAT beat estimates on better margins and high other income. That said, revenue missed estimates on deferred supplies owing to price volatility.

"Following a strong FY26 performance, we reckon acceleration to a hockey-stick curve given strong outlook. With timelines for Nigeria order unclear, we are factoring in nil probability. Adjusted for RIL value of Rs 48 per share, PE is compelling at 11 timrs FY28E EPS. We are cutting FY27/28E EPS by 4 per cent/8 per cent to align with guidance; ‘BUY’," Nuvama said. This stock gained 30 per cent in April

CEAT shares see rating cut

CEAT Ltd and IIFL Finance Ltd, which gained 3-7 per cent in April, logged 156 per cent and 148 per cent, respectively, rise in Q4 profit. CEAT numbers were above estimates on lower outsourcing expenses and cost savings. But Nuvama sees limited upside potential, as it downgraded the stock to ‘HOLD’ from ‘Buy' with a target of Rs 3,900.  

The India Cements Ltd, Navin Fluorine International Ltd and MMFSL reported 110-142 per cent YoY jump in bottom lines.

India Cements receives 'Sell' , MMFSL gets 'Buy' rating

Elara has 'Sell' on India Cements. "With recent stock performance already reflecting optimism, return ratios may remain structurally below peers, given higher capital employed and the capex required to improve cost  structure. Accordingly, we reiterate Sell," it said while suggesting a target of Rs 383.

In the case of MMFSL, JM Financial believes recovery in asset growth will be gradual in nature. It 
expects an AUM CAGR of 13 per cent over FY26–28 against the management guidance of mid-to-high 
teens’ growth. 

"We like management’s consistent efforts to improve operating leverage and asset  quality and lift fee income, which are expected to support earnings growth. In all, we are  upgrading MMFS to BUY with a revised target of Rs 350," it said post the company's Q4 results.