The earnings for the quarter that ended on December 2019 were largely in line with expectations, considering the economic growth slowdown.
Sensex ended 152.88 points lower at 41,170.12, while the Nifty fell 45 points at 12,080.90. The BSE Midcap and Smallcap outperformed the benchmark indices with a gain of 0.40 percent and 0.51 percent, respectively.
On the sectoral front, the Nifty PSU Bank Index outperformed the other indices, with a gain of 1 percent led by J&K Bank, Bank of Baroda and SBI.
The earnings for the quarter that ended on December 2019 were largely in line with expectations, considering the economic growth slowdown. Several companies have taken the advantage of corporate tax rate cut which supported the bottomline.
The topline performance of companies was, in fact, weak. But, operating growth with margin expansion was better given the fall in commodity prices.
Here's a look at the top 10 stocks which moved the most this week:
Mishra Dhatu Nigam, up 25%
Mishra Dhatu Nigam share price jumped over 25 percent for the week after the company reported 257.8 percent jump in consolidated net profit to Rs 60.50 crore in Q3 December 2019 as against Rs 16.91 crore in Q3 December 2018. Net sales in the December quarter stood at Rs 206.02 crore, up by 36% from Rs 151.48 crore reported in the same period last year.
Profit before tax (PBT) during the Q3FY 20 stood at Rs 58.45 crore, up by 155.4% from Rs 22.89 crore recorded in the corresponding period of the previous year. The order book position of the company as on 1 January 2020 stood at Rs 1776 crore.
"Increase in Indian space expenditure budget has been one of the key tailwinds for Mishra Dhatu Nigam. Significant expenditure budget CAGR towards space, joint product development with Indian Space Research Organisation (ISRO) for strategically important materials, relatively small scale of operations, all tilt the risk reward in favour of Midhani", said ICICI Securities in a note.
Hathway Cable, up 25%
A day after Reliance Industries (RIL) announced the consolidation of its media and distribution properties under a single entity, which will see Network 18 Media & Investments, TV18 Broadcast, Hathway Cable & Datacom and Den Networks coalescing into a single unit, shares of these firms surged to hit their upper circuits on BSE on February 18.
Reliance Industries is consolidating its media and distribution properties under a single entity, making Network 18 the vanguard of the conglomerate’s advance in the media and entertainment business.
India’s largest private sector company by market value said that, as a result, Network 18, one of India’s largest listed media companies, will become an entity with about Rs 8,000 crore in annual revenue and benefit from substantial economies of scale.
Muthoot Finance, up 23%
Share price of Muthoot Finance zoomed 23 percent this week after the company posted healthy earnings in the December quarter that prompted Narnolia Research to upgrade the stock to “buy”. Muthoot reported a healthy 66.05 percent year-on-year increase in Q3FY20 profit at Rs 803.4 crore despite an increase in provisions and 45 percent increase in net interest income at Rs 1,586.9 crore YoY, beating expectations.
Profit was estimated at Rs 648.1 crore and net interest income at Rs 1,297.4 crore, according to a CNBC-TV18 analyst poll.
Net interest margin at 17.1 percent for Q3FY20 was also the highest in 12 quarters, against 16.05 percent in previous quarter and 13.51 percent in the year-ago period.
Muthoot Finance said it has raised USD 550 million (around Rs 3,900 crore) through dollar bond, offering a coupon of 4.4 percent. The proceeds of the issue will be used for towards lending, the company said in a release. "The response from international bond investors in our second issue is quite overwhelming. This fund raise will enable us in further diversifying and strengthening our sources of funding," its chairman M G George Muthoot said.
IRCTC, up 22%
State-owned Indian Railway Catering & Tourism Corporation (IRCTC) gained 22 percent after the company registered a healthy 179.66 percent (or 2.8-fold) year-on-year growth in Q3FY20 profit, driven by all segments. Profit during the quarter stood at Rs 205.8 crore, up from Rs 73.59 crore in the same period last year. The sequential growth was 106.17 percent. Revenue from operations grew by 64.59 percent year-on-year to Rs 715.98 crore in the quarter ended December 2019 and the same increased 39.5 percent sequentially, the company said in its BSE filing.
"IRCTC provides a one-stop solution to its customers, which gives IRCTC an upper hand over rivals, especially in the travel and tourism segment. Further, it has decent financials, zero debt on books and a strong balance sheet," said Ajit Mishra, VP – Research, Religare Broking.
Indiabulls Ventures, up 22%
Indiabulls Ventures share price gained over 22 percent for the week after a government investigation hasn’t found any significant financial irregularities in the operations of the Indiabulls group, according to people familiar with the matter.
India’s ministry of corporate affairs had been investigating the Indiabulls group for more than a year after initial inquiries found crossholdings between the firms and common address for several of their subsidiaries, raising the possibility of the existence of shell companies. The Delhi High Court on February 28 will hear a petition to probe Indiabulls on similar allegations.
Max Financial, up 15%
Share price of Max Financial Services jumped 15 percent this week after a media report indicating that Axis Bank could be buying 20 percent stake in the company. "Axis Bank is set to acquire more than 20 percent stake in Max Life Insurance through fresh issue of equity," The Economic Times quoted multiple sources said. The proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which contributes more than 54 cent to Max Life's revenue, the report said.
In addition, CNBC-TV18 reported that Max Financial Services and Max Life Insurance have called a joint board meeting on February 20 to discuss stake sale of chairman Analjit Singh in a group company.
The company reported a 56 percent decline in standalone net profit at Rs 61.60 crore for the third quarter ended December 31, 2019. Its total income during the latest quarter also slipped to Rs 80.19 crore as against Rs 176.57 crore in the year-ago quarter, the company said in a regulatory filing.
Firstsource Solutions, up 14%
Share price of Firstsource Solutions gained 14 percent for the week with the stock gaining almost 35 percent in the last one year. The Board of Directors of Firstsource Solutions declared an Interim Dividend for the financial year ending March 31, 2020 at Rs 2.50 per share (25 percent) on the paid up capital of the Company. The record date for the purpose of determining the members eligible to receive the said interim dividend has been fixed as Friday, February 28, 2020.
Aurobindo Pharma, up 13%
Share price of pharma company gained over 13 percent this week. Citi has a buy rating with target at Rs 820 per share. According to Citi, the establishment inspection report (EIR) for unit IV is positive. The EIR & voluntary action initiated (VAI) implies that it would be business as usual at the plant w.r.t product approvals as unit IV is a key injectable plant for the company and has 46 ANDAs pending approval.
It reported a 6 percent increase in profit before tax at Rs 942.8 crore for the quarter ended December, 2019, as compared to Rs 889 crore in the corresponding period of 2018, driven by a healthy revenue growth in the US market. The company's revenues grew 11.9 percent at Rs 5,895 crore in the quarter under review as compared to Rs 5,269.7 crore in the year ago period.
Balkrishna Industries, up 10%
Share price of Balkrishna Industries was up 10 percent for the week after the company said its business may see better growth in financial year 2020-21 (FY21) compared to the current financial year 2019-20 (FY20). “The markets continue to remain challenging. However, with improving global macro-economic situation and expectation of better weather conditions and therefore the company’s business may see better growth in FY21 compared to the current year,” the management said while announcing December quarter (Q3FY20) results on Friday after market hours.
The board has declared third interim dividend of Rs 16 per equity share (800%) on the equity shares of Rs 2 each for FY20. The company has fixed February 25, 2020 as record date for the same.
Hindustan Copper, down 11%
Share price of Hindustan Copper shed over 11 percent for the week, after the company reported consolidated net loss of Rs 95.55 crore against a profit of Rs 34.59 crore YoY. Consolidated revenue fell 80.3 percent to Rs 93.3 crore against Rs 474.2 crore YoY. The company reported EBITDA loss at Rs 41 crore against EBITDA of Rs 119.6 crore YoY.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.