Up to 1,170% return! Q2 sales of these 35 firms rise up to 3,100%
September quarter of this financial year came as a welcome relief for India Inc.
Edelweiss Research in a report said most companies met expectations in top line as well as bottom line performance in Q2 of FY18.
The market breadth was better. Barring banks, most sectors surprised on the positive side, the brokerage said.
Data available with corporate database Capitaline showed 35 companies listed on the National Stock Exchange (NSE) have posted over 50 per cent year-on-year growth in net sales so far, which further boosted bottom line numbers of these companies up to 1,558 per cent during the quarter gone by.
Stocks of all these companies have delivered positive returns to investors in 2017 with Indiabulls Ventures surging the most at 1,168 per cent on a year-to-date basis to trade at Rs 263 as of November 20.
Indiabulls Ventures posted 17.19 per cent year-on-year (YoY) rise in net profit for the quarter on a 57.50 per cent YoY rise in sales at Rs 155.61 crore.
Dhunseri Petrochem posted impressive 3,139 per cent YoY top line growth at Rs 320.71 crore over Rs 9.90 crore in Q2FY17. The stock is up over 70 per cent so far in 2017. The company reported a 280 per cent year-on-year jump in bottom line number to Rs 16.40 crore from Rs 4.33 crore in the same quarter a year ago.
Crest Ventures, SIL Investments, Hind Copper, Maharashtra Scooter, Tinplate and CCL Products reported over 100 per cent year-on-year jump in sales.
Bottom line numbers of these companies grew between 11 per cent and 520 per cent for the quarter ended September 30, 2017. Among these stocks, Crest Ventures, SIL Investments and Tinplate have already more than doubled investor wealth this calendar.
Shares of Hind Copper, MMTC, Maharashtra Scooter and CCL Products are up 54 per cent, 31 per cent, 71 per cent and 19 per cent year to date.
HB Stockholdings, Srikalahasti Pipes, Birla Cable, Goa Carbon, Uniply Industries, Coral India and Sanwaria Consum posted 80-100 per cent increase in sales during the quarter. Net profit surged between 40-820 per cent.
Share prices of Goa Carbon, Sanwaria Consumer and Coral India climbed 736 per cent, 749 per cent and 140 per cent, respectively. HB Stockholdings, Srikalahasti Pipes, Birla Cable and Uniply have advanced 85 per cent, 48 per cent, 53 per cent and 68 per cent, respectively, since January 2, 2017.
Sectorwise, pharma, banking, telecom and information technology failed to get a place in the top 35. Telecom and bank stocks (both PSUs and private) were the ones that witnessed more than 5 per cent cut in FY18 consensus earnings estimates, while Reliance Industries and airline stocks saw more than 5 per cent upgrade in FY18 earnings estimates.
Edelweiss Research said volume growth of rural-oriented companies (agrochemical, FMCG, two-wheelers) improved in Q2 of FY18. However, the improvement was mainly due to GST-led re-stocking or remonetisation rather than a pickup in end demand.
Saregama India, Infibeam Incorporation, Dilip Buildon, Kolte Patil, Aksh Optifibre, Triveni Engg, Panama Petrochem, Vakrangee, Nav Bharat Ventures, Uttam Sugar Mills, Mastek, Capri Global, Maithon Alloys, Automotive Axles, Sterlite Tech, Jinal Stainless Hisar, Bhansali Engg, Hindustan Zinc and Som Distillariers are the other companies on the list that posted over 50 per cent year-on-year rise in sales for the quarter ended September 30, 2017.
Bottom line numbers of these companies jumped up to 905 per cent year-on-year during the quarter.
Shares of Saregama India have soared 315 per cent on a year-to-date basis till November 20, whereas Dilip Buildcon, Kolte Patil, Panama Petrochem, Vakrangee, Uttam Sugar, Mastek, Capri Global, Maithan Alloys, Sterlite Technologies, Jindal Stainless, Bhansali Engg have gained between 100 per cent and 520 per cent this year.
Emkay Global Financial Services has a ‘buy’ rating on Sterlite with a target price of Rs 318, whereas IIFL has a ‘buy’ recommendation on Dilip Buildcon with a target price of Rs 985.
Brokerage Anand Rathi has a ‘buy’ rating on Saregama with a target price of Rs 1,202. “Focus on the B2C segment and acquisition of IPRs for movies and serials would drive Saregama’s earnings and margin growth. The company plans to monetise its huge music library through its operations in the B2C segment along with equal focus on the B2B segment. Acquisition of IPRs and focus on movie production and Tamil serials would ensure future growth. With strategic changes and structural drivers at play, we believe it is ready to enhance its ‘music’,” Anand Rathi said in a research report.