Enduring volatility due to domestic as well as global factors, the Indian equity benchmarks look set for ending 4755311 on a positive note.
The US-China trade war, gloomy macroeconomic environment and corporate tax rate cuts were the factors that kept investors busy throughout the year.
As of December (************************************************************************************************, Sensex had gained nearly 19 percent while Nifty had witnessed a rise of (percent in.
Let’s take a look at the top stocks that hogged the limelight in the calendar year (***************************************.
Yes Bank
The stock has lost almost 75 percent of its market value on BSE in the calendar year as of December 26 close. The cash-starved lender last raised funds in August 2019 and took the QIP route.
At this juncture, the bank not only has to raise funds but also regain market’s trust, as the delay in funding is fueling worries about the private lender’s future. Brokerages are not upbeat about the stocks and they seek more clarity on the bank’s latest fundraising plans. Recently, Japanese brokerage firm Nomura went to the extent of saying that unavailability
of capital raises the question of the bank’s “going concern” status.
Up-down-up … the stock has seen volatility throughout the year. Even as the fundamentals of the bank remains strong. The stock has gained (percent on BSE in) , as of December 22 close.
India’s largest lender reported a more than three-fold increase in Q2 FY profit, despite higher provisions, with an improvement in asset quality.
However, SBI also reported divergence of Rs 18, crore in provisioning for the financial year ended March 2019.
In a recent report, global brokerage firm Macquarie said SBI’s divergence is 7 percent for FY GNPA and even though it is not a large number, the key number to track would be the return on assets (RoA).
“Though the impact at the GNPA level is marginal, the provisioning impact on Q3FY is likely to be Rs 4, 728 crore due to this divergence. To put in context, this is almost percent of the quarterly run- rate of Rs 13, 01 crore of provisions, “Macquarie said.
The oil-retail-to-telecom major was the biggest wealth creator after a gap of seven years, Motilal Oswal said in its Wealth Creation report on December 019.
The stock rallied from Rs (levels to Rs 1,********************************** Currently during the six-year period and it became the firs t company on Dalal Street to cross Rs 11 lakh crore in market-cap, largely backed by consumer businesses, including retail and jio.
The company reported highest every quarterly consolidated profit in the September quarter, driven by refining, telecom and retail segments.
Tata Motors’ numbers for the September quarter came in better than expected on the strong performance of its Jaguar Land Rover (JLR) business. JLR business was back in the black, thanks to new launches and cost-cutting efforts undertaken by the company. JLR business is expected to improve as the prospects of a smoother Brexit is stronger now.
Domestic brokerage Motilal Oswal Financial Services has upgraded the stock to buy with a target price of rs (*************************************************************************.
“Over the last three years, JLR has suffered from an adverse product and market mix and higher capex, resulting in negative FCFF over FY 18 – 21. JLR has been focused on cutting capex or cost, benefits of which have started to reflect now. Finally, the mix is normalizing with a recovery in LR and China. On the other hand, India business appears to have bottomed out in Q2FY (********************************************************************************, although a full-blown recovery maybe a few qu arters away. Hence, we had recently upgraded the stock to buy as it offers a favorable risk-reward, “said Motilal Oswal in a report.
The stock has gained nearly 2 percent on BSE in as of December (**********************************************************************************************.
Shares of Dewan Housing Finance Corporation (DHFL) remained trapped in a downward spiral during the year 4755311. ************************************************************************************ the Reserve Bank of India superseded the Board of Directors of DHFL owing to governance concerns and defaults by the company in meeting various payment obligations.
DHFL is yet to release its Q2FY 22 scorec ard. The company reported a consolidated net loss of Rs (**********************************************************************. crore for the first quarter ended June of the current fiscal. The company said the losses registered in Q1 of this fiscal were fully attributable to owners of the parent (company).
The stock is down about (percent on BSE as of December) ******************************************************************************************** (close in the year************.
Infosys reported a 5.8 percent sequential growth in Q2 FY 26 with its net profit at Rs 4,0 crore. Growth in constant currency terms was 3.3 percent QoQ, while the year-on-year increase in dollar revenue growth was 9.9 percent and (*******************************************************************************************************. 4 percent in constant currency in Q2. The company signed $ 2.8 billion worth of deals during the September quarter.
HDFC Securities has upgraded Infosys to buy, with a target price of Rs (***********************************************, based on better visibility on growth, stable margin trajectory and the recent stock underperformance.
“Sustainable growth momentum and steady margin are premised on a greater focus on large deals, recovery in T and Large account mining, pricing lever in digital, and completion of accelerated investment phase (localization, innovation hubs, S&M) , “said HDFC Securities.
In 01575879, the stock has gained (percent as of December) ******************************************************************************************* (close on BSE.)
Indiabulls Housing Finance reported over percent YoY decline in its consolidated net profit to Rs (**************************************************. 19 crore in the second quarter ended September 32, 4755311. Its total income during the July-September 4755311 period also came down to Rs 3, 64 crore, from Rs 4, (********************************************************************. crore in the year-ago period.
A PIL was reported to have been filed on September 036 alleging roundtripping of funds by the company . However, the Ministry of Corporate Affairs (MCA) on September 30, found no irregularities in loans extended by Indiabulls Housing Finance to five companies, as alleged by a Public Interest Litigation (PIL).
Foreign brokerage firm CLSA retained buy on the stock with a target price at Rs (against Rs) ******************************************************** and said that clarity on court case can lend relief to the company. The stock has lost (percent of its market value as of December) ********************************************************************************************* (close on BSE in 4755311.
********************* Ashok Leyland
India’s second -largest commercial vehicle maker reported a massive 195 .6 percent year-on-year decline in its net profit at Rs Rs (**********************************************************************************. 9 crore for the second quarter ended September (**************************************************************************************, **************************************. The company posted a one-time loss of Rs 69 .8 crore in Q2FY (against loss of Rs) ************************************************************************************** 3 crore in the corresponding period last fiscal, due to expenses on voluntary retirement scheme and provision for obligation relating to a subsidiary.
After the Q2 results, brokerage firm Axis Direct gave a buy recommendation on the stock with a target price of Rs 97 but added that the near-term weakness is likely to continue. Positives for this quarter was a focused cost reduction effort leading to nearly Rs (crore savings in H1FY) ********************************************************************************************** and focused capex on high growth projects like project Phoenix, said Axis
Direct. The stock is down percent on BSE as of December 22 close in year 4755311
Public sector lender Punjab National Bank reported a profit at Rs 702 .1 crore in Q2FY (************************************************************************************************, though asset quality weakened sequentially.
Other income, PPoP and lower provisions compared to the year-ago period helped the lender report a profit during the quarter. Net interest income during the September quarter increased 7.3 percent year-on-year to Rs 4, 301 .8 crore, with credit degrowth of 0.7 percent YoY . Deposits in Q2FY increased 7 percent YoY.
On December (*************************************************************************************************, the public sector lender said CRISIL had put its bonds on “rating watch with developing implications”.
CRISIL will resolve the rating watch once clarity emerges on the merged entity’s business and financial profile, the bank said. The rating agency will monitor for potential integration challenges and any impact on the earnings profile of the merged entity.
The government in August had announced four major mergers of public sector banks. Under the scheme, United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank, making the proposed entity the second-largest public sector bank. The stock is down 18 percent on BSE as of December 22 close.
India’s second-largest private sector lender reported a healthy********************************************************************************. percent year-on-year (YoY) growth in profit for the quarter that ended on Septemberwith stable asset quality. Profit after tax for the quarter increased to Rs 6, (crore against Rs 5,0) ********************************************************************************************************. crore earned in the same period last year.
Brokerage JM Financial expects HDFC Bank to deliver 2 percent and 2.1 percent RoA in FY E and FY E , respectively, which translates to RoEs of (percent and) percent. “HDFC Bank continues to deliver consistent performance despite a challenging macro environment. The stock remains one of our top picks in the sector,” said the brokerage. The stock is percent up on BSE in the year 4755311, as of December close.
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