Market Capsule 27th April'24 | Earnings Season: What's hot and What's not?
- samarwealth
- Apr 27, 2024
- 6 min read
Companies that impressed us the most this week
The earnings season has commenced, and the market's recent run is attributed to robust earnings reported by various companies across different segments. This week alone, over a hundred companies have disclosed their results, receiving a positive response from the market. Highlighting a few remarkable performances; do keep a close watch on these companies:
1. Motilal Oswal Financial Services Ltd saw a significant revenue increase of 108% year-over- year, and their lending book increased by 38% YoY to ₹11,247Cr.
2. Tejas Networks Ltd reported a stellar 344% growth in revenue compared to last year, and PAT increased 1436% YoY to ₹147 Cr.
3. Shakti Pumps (India) Ltd experienced a 233% surge in revenue year-over-year, and PAT increased 4400% YoY to ₹90 Cr.
4. 360 ONE WAM Ltd achieved a 64.31% growth in revenue year-over-year, and PAT increased by 56% YoY to ₹243 Cr.
Furthermore, LTTS, Bajaj Finance, Atul, Olectra Green Tech, and Bajaj Finserv have reported modest financial performance for the latest quarter.
These strong financial figures have been well-received by the market. Looking ahead, the coming week promises the release of more financial results, with expectations set high for a robust set of figures, including those from several blue-chip companies.
In regulatory news, Kotak Mahindra Bank, India's fourth-largest bank, has come under the scrutiny of the Reserve Bank of India (RBI). The RBI has imposed Supervisory Actions on Kotak Mahindra Bank Limited, which include halting the onboarding of new customers via the bank’s online and mobile banking platforms and issuing new credit cards. This action follows deficiencies noted during the RBI's IT examination of the bank.
⭐Video Recommendation: 4 EV Companies to Watch as Tesla enters India | Special Situation Investing | Auto Ancillaries
Charting the Pulse of Indices: A) Sector Wise Performance
This week, almost all Indian sectoral indices showed Stagnant Movement lead primarily by PSU Banks and PSE. Nifty IT index Underperformed the other indices considerably. Nifty Metal and Pharma index however stood strong and is likely to extend the gains and showing relative strength.
B) Heatmap
Heatmap helps investors quickly understand the performance of multiple stocks or sectors in a single view. Color coding, with varying shades indicating the degree of movement - red for declines, green for gains, and sometimes grey or other colors for little or no change. Heatmaps are effective for spotting market patterns and can be a time-saving resource in investment analysis.
C) Market Breadth
A) Nifty 500
Source: Stockedge
Analyzing market breadth is important as it provides insight into the underlying strength or weakness of the market, beyond just looking at benchmark indices. Breadth measures the percentage of securities in NIFTY 500 surpassing specified moving averages over the specified period. Comparing the market breadth of nifty 500 during the previous week's trading sessions, we can analyze that number of stocks above key moving average support areas are reducing by the end of week. This can be considered as a sign of weakness if change is seen to be significant.
Transformers & Rectifiers INDIA Ltd.
Transformers and Rectifiers (India) Ltd. specializes in the production of power, furnace, and rectifier transformers. It has achieved a significant milestone with the successful design and manufacture of the world's first 420 kV ester fluid-filled shunt reactor. TRIL is renowned as the foremost Indian brand, recognized for its indigenous manufacturing of high-voltage transformers, including those rated at 220 kV, 400 kV, 765 kV, and 1200 kV.
The company boasts an installed capacity of 37,200 MVA distributed across its three units situated in Odhav (1,200 MVA), Changodar (12,000 MVA), and Moraiya (24,000 MVA) in Gujarat. TRIL maintains a comprehensive presence across the spectrum of transformers, encompassing power transformers up to 500 MVA, rated at 1150 KV class, as well as distribution transformers up to 5 MVA, rated at 33 KV class.
As of the fiscal year 2024, the company's order book stands at Rs. 2,582 crores, compared to Rs. 1,499 crores in fiscal year 2023. In fiscal year 2024, the company recorded approximately Rs. 2,050 crores in order inflow, with negotiations ongoing for orders totaling approximately Rs. 17,176 crores.
The company is in the process of establishing a new manufacturing capacity of 12,000 MVA, slated to commence operations by the third quarter of fiscal year 2025. This expansion is specifically targeted towards catering to the Renewables and Green Energy sector.
Product Portfolio:
Financial Highlights:
Concall Updates:
Seven good-looking charts for next week 1. CESC Ltd.
2. BPCL
3. IREDA
4. Oil INDIA Ltd.
5. LIC Housing Finance Ltd.
6. Tata Power Company Ltd.
7. Exicom Tele-Systems Ltd.
Order Wins:
R.P.P Infra Projects Ltd Secures New Contracts Valued at Rs. 412.81 Crores. Link
RVNL Secures Contract Valued at 439 Crores. Link
Madhav Infra secures a 330 crore rupee order for 75 MW solar power projects. (Market Capitalization: 257 crore rupees; Current Market Price: 10 rupees). Link
Dilip Buildcon Ltd has received a Provisional Completion Certificate from the authority for a project worth 1013 crores. Link
Sakuma Exports secures a contract valued at around Rs 150 crores for supplying sugar to the North East, West Bengal, and Bihar regions. Link
Bonus Share Issue & Share Splits:
Appointments & Resignations:
Bajaj Electricals: Mr. Ravindra Singh Negi, Chief Operating Officer - Consumer Products Business and a Senior Management Personnel of the Company, has resigned citing personal and professional factors. Link
Karnataka Bank has named Mr. Padmanaban T. A. as the Head of the Digital Banking Project, effective from April 22, 2024. Link
The United Spirits Board has endorsed the appointment of Mr. Jagbir Singh Sidhu as Chief Commercial Officer for India, effective July 1, 2024. Mr. Sidhu will assume the role succeeding Mr. Prathmesh Mishra, the current Chief Commercial Officer. Link
HCLTech revealed the selection of Lee Fang Chew as an Independent Director within the company. Chew brings a wealth of experience, having served at Intel Corporation from 1986 to 2016, where she occupied various leadership roles. Link
Bharat Heavy Electricals Limited has appointed Shri Koppu Sadashiv Murthy, who serves as CMD with additional responsibilities as Director of Finance, as the new Chief Financial Officer. This appointment replaces Shri Jai Prakash Srivastava, who previously held the position of Director (E, R&D). Link
Agreement:
NHPC has entered into a Supplementary Joint Venture (JV) Agreement with the JV Partners of National High Power Test Laboratory Pvt. Ltd. (NHPTL), including NTPC, POWERGRID, DVC, CPRI, and NHPTL, for the sale of a partial stake in NHPTL. Link
Happiest Minds Technologies has finalized agreements to acquire the entire equity share capital of Pure Software Technologies Pvt Ltd, amounting to a total purchase consideration of USD 94.5 million. Link
Divi's Laboratories Limited is currently in the process of finalizing a long-term supply agreement with a customer. Additionally, the company is planning to expand its manufacturing facility, with an estimated investment ranging between ₹650 crores to ₹700 crores. Link
Dr. Reddy's Laboratories Limited and Nestlé India Limited have forged a Joint Venture Agreement to invest in Dr. Reddy's Nutraceuticals Limited. Link
Other Important News:
Tata Power Solar Systems collaborates with Indian Bank to promote solar rooftop installations in the residential sector. Link
Reliance Industries has become the first Indian company to surpass a profit before tax of ₹1 lakh crore in a financial year. Additionally, its retail segment has achieved the significant milestone of crossing ₹3 lakh crore in revenue for #FY24. Link
M&M Finance has postponed its earnings board meeting following a ₹150 crore fraud at one of its branches in the North East. Link
RBI Directs Kotak Mahindra Bank to Halt New Customer Onboarding Through Mobile and Online Banking. Link
Puravankara: The company announces that Provident Housing, its wholly owned subsidiary, has secured an investment of ₹1,150 crores from HDFC Capital, with a potential Gross Development Value (GDV) of ₹17,100 crores. Link
That's all for now! I hope you enjoyed the content. Do share your comments below! Disclaimer: Any stock or company discussed above should not be considered as a Buy/Sell recommendation. We personally or our clients might or might not have a position in any of the stocks discussed. This newsletter is purely is for educational purposes only.
Comments