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    Q4 stars: Nearly 200 cos more than doubled their profit; should you buy?

    Q4 stars: Nearly 200 cos more than doubled their profit; should you buy?

    Q4 stars: Nearly 200 cos more than doubled their profit; should you buy?
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    By Kshitij Anand   IST (Published)

    March quarter results from India Inc. were fairly mixed but largely on the positive side. Airlines, NBFC and pharma companies saw the highest earnings growth YoY while metals, auto, and auto ancillaries reported the biggest fall in growth.
    Utilities, telecom, airlines, and financials witnessed margin expansion while metals, auto, and pharma saw compression in their margins.
    The beats-to-misses (BTM) ratio at 0.91x was lower sequentially (1.40x in Q3FY19). Among the major sectors, consumer and auto had the lowest BTM this quarter while industrials, IT, NBFC and private banks faring better with more beats than misses, JM Financial said in a report.
    At end of FY19, the Nifty PAT has grown 9 percent YoY for the full year. The estimated PAT growth over FY19-21 is 20 percent led by the financials. The ex-financials PAT growth stands at 13.7 percent.
    But, there are 199 BSE companies that more than doubled their March quarter profit YoY. Companies like UltraTech CementCiplaBharti AirtelInterGlobe AviationFederal BankBharat Forge, and L&T Finance Holdings reported more than 100 percent growth in their consolidated PAT.
    “If the profit has doubled due to strong revenue growth and improved operational performance one can consider the stock for investing,” Jayant Manglik, President, Retail Distribution, Religare Broking Ltd told Moneycontrol.
    “Some of the quality names that can be considered for investing would be stocks like UltraTech cement, Godrej Agrovet, Federal Bank, Godrej PropertiesP&G Healthcare, L&T Finance holdings and Varun Beverages,” he said.
    But, there are 199 BSE companies that more than doubled their March quarter profit YoY. Companies like UltraTech CementCiplaBharti AirtelInterGlobe AviationFederal BankBharat Forge, and L&T Finance Holdings reported more than 100 percent growth in their consolidated PAT.
    “If the profit has doubled due to strong revenue growth and improved operational performance one can consider the stock for investing,” Jayant Manglik, President, Retail Distribution, Religare Broking Ltd told Moneycontrol.
    “Some of the quality names that can be considered for investing would be stocks like UltraTech cement, Godrej Agrovet, Federal Bank, Godrej PropertiesP&G Healthcare, L&T Finance holdings and Varun Beverages,” he said.
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