Adani Enterprises, Coal India, SBI Life among Nifty cos logging over 50% growth in Q2 profits
Maruti Suzuki, Adani Enterprises and Coal India were among Nifty companies that saw up to four-fold jump in September quarter profits. Bharti Airtel, Bajaj Finance, Eicher Motors, SBI, Axis Bank, IndusInd Bank, SBI Life Insurance and ONGC were other Nifty constituents reporting at least 50 per cent jump in Q2 profit.
Data showed Nifty as a pack reported 9 per cent rise in profit against an expectation of flat profit, led by banking, financials and insurance companies. Excluding BFSI, profit for the Nifty pack fell 3 per cent YoY against an estimated fall of 11 per cent. Sales for the index rose 29 per cent YoY against an estimated rise of 20 per cent. Ebitda rose 9 per cent YoY against an estimated rise of 4 per cent, Motilal Oswal Securities said in a note.
Among the 11 stocks reporting over 50 per cent jump in Q2 profits, Motilal is positive on SBI, Bharti Airtel, Maruti Suzuki, Coal India and IndusInd Bank.
Maruti Suzuki reported a four-fold jump in net profit at Rs 2,061.50 crore for the September quarter compared with a profit of Rs 475.30 crore in the same quarter last year. Sales for the quarter jumped 47.91 per cent year-on-year (YoY) to Rs 28,543.50 crore from Rs 19,297.80 crore in the corresponding quarter last year, it said. The average target price on this stock stands at Rs 8,846, as per Trendlyne, which suggests a 2 per cent potential downside.
Adani Enterprises’ Q2 profit jumped 117 per cent year-on-year (YoY) to Rs 461 crore from Rs 202 crore in the corresponding quarter last year. Its total income surged 183 per cent YoY to Rs 38,441 crore from Rs 13,597 crore YoY. Not many brokerages track this stock.
Coal India reported more than doubling of net profit at Rs 6,043.99 crore for the September quarter from Rs 2,932.73 crore in the corresponding quarter last year. Sales for the coal miner was rose to Rs 27,538.59 crore from Rs 21,292.50 crore YoY. Analysts said Coal shares are inexpensively valued and trade at a steep discount to historical averages. The stock has a price target of Rs 271, which suggests a 17 per cent potential upside.
Bharti Airtel reported an 89.1 per cent year-on-year (YoY) rise in consolidated net profit at Rs 2,145.20 crore compared with Rs 1,134 crore in the corresponding quarter last year. The average price target of this stock stands at Rs 937, which suggests 11 per cent potential upside ahead.
Bajaj Finance reported an 88 per cent jump in its consolidated net profit at Rs 2,781 crore for the quarter ended September quarter. The scrip has an average target price of Rs 8,536.80, which suggests 23.30 per cent potential upside.
Eicher Motors (profit up 76 per cent YoY), SBI (profit up 74 per cent), Axis Bank (70 per cent) and IndusInd Bank (57 per cent) are some of the Nifty companies reporting solid Q2 profit results, Motilal Oswal said in a report.
Eicher’s average target price, as per Trendlyne, suggests 15 per cent potential upside; SBI’s suggest 16 per cent upside, Axis Bank’s 16 per cent while IndusInd Bank’s average target suggests 13 per cent potential upside.
SBI Life Insurance and ONGC, two other companies with over 50 per cent YoY jump in Q2 profit, have price targets that suggest potential returns of 25 per cent and 22 per cent, respectively.
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