Axis Bank, SBI, Infosys & Hindalco among Nifty stocks gaining most since Q2 results. Should you buy?
Axis Bank, Britannia Industries, Hindalco Industries, Infosys and SBI are among Nifty constituents that have gained the most since their September quarter results. Three of these stocks — Axis Bank, SBI and Hindalco тАУ may deliver double-digit returns; Infosys may see single-digit return while Britannia may offer flattish return going ahead, average price targets suggest.
Shares of Axis Bank have jumped ┬а9 per cent since its results on October 20. The private lender reported a 70 per cent year-on-year (YoY) rise in net profit at Rs 5,329.77 crore, thanks to a sharp fall in provisions. Net interest income (NII) for the lender rose 31 per cent YoY to Rs 10,360 crore while net interest margin came in at 3.96 per cent, up 57 basis points (bps) YoY.
An average target price on the counter at Rs 995.24, as per publicly available data with Trendlyne, suggests a potential 16 per cent upside on the counter.
Britannia Industries has climbed 8.8 per cent since its quarterly results on November 4. This bakery stock, however, has an average target of Rs 4,038.56, which hints at flattish returns going ahead. The FMCG firm has reported a 28.47 per cent rise in consolidated net profit at Rs 490.58 crore for September quarter helped by volume growth. Revenue for Britannia jumped 21.40 per cent to Rs 4,379.61 crore during the quarter.
Hindalco Industries’ average target price of Rs 515.83, as per Trendlyne, suggests a 15 per cent potential upside. The scrip is up 6 per cent since its quarterly results on November 11. The Aditya Birla Group firm reported 35.4 per cent decline in consolidated profit after tax at Rs 2,205 crore for the quarter ended September mainly due to elevated input costs.
Infosys and SBI have gained 3-4 per cent since their quarterly results. The returns are till November 15, as calculated by Elara Securities in its latest note. ┬аInfosys reported its quarterly results on October 13 while SBI reported its September quarter results on November 5. SBI’s average target price suggests of Rs 696.85 per cent suggests a 16 per cent potential upside. Infosys target of Rs 1,716 suggests a limited 7 per cent potential upside.┬а
Infosys reported an 11.10 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,021 crore in September quarter on a 23.4 per cent YoY jump in net sales to Rs 36,538 crore. ┬аOperating margin for the quarter came in at 21.5 per cent against 20.1 per cent in June quarter and 23.6 per cent per cent in the year-ago quarter.
It increased its lower ends of the FY23 revenue and margin forecasts and okayed a Rs 9,300 crore in share buyback.
In case of SBI, the public sector bank posted its highest ever quarterly net profit at Rs 13,265 crore, up from Rs 7,627 crore in the same quarter of the previous financial year. Its consolidated profit at Rs 14,752 crore in fact beat Reliance Industries’ Q2 profit of Rs 13,656 crore.
A handful of brokerages have upped their FY23/FY24 EPS estimates for the PSU bank by 10-15 per cent. Their price targets for SBI are in the Rs 700-760 range, suggesting more steam left for the largest PSU lender. This is even as the scrip has climbed over 300 per cent since 2020 low of sub Rs 150-odd levels.
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