The ongoing corporate earning season has proved to be a tepid show so far. Out of 100 companies in the BSE 100 index, 56 have announced their December quarter results till Feb 4 and have shown 6 per cent year-on-year (yoy) fall in their overall net profit figure.
Among laggards are Tata Steel, whose net profit tanked the most 1,760.12 per cent year-on-year for the quarter ended December 2015. The company registered net loss of Rs 2,180.07 crore against net profit of Rs 131.32 crore in the corresponding quarter a year ago.
Bottomline of other companies such as JSW Steel, Crompton Greaves, Cairn India and Vedanta also tumbled 419.99 per cent yoy, 134.69 per cent yoy, 99.36 per cent yoy and 82.37 per cent yoy, respectively.
On the other hand, Grasim Industries posted net profit of Rs 830.89 crore, up 81.22 per cent, against Rs 458.50 crore in the corresponding quarter a year ago. This was followed by United Breweries (up 80.57 per cent), ABB India (up 53.75), Glenmark Phamaceuticals (up 48.09 per cent), Reliance Industries (up 41.73 per cent) and Reliance Power (up 38.27 per cent).
Kapil Bali, chief executive officer, YES Securities, said, “Government is taking steps to revive growth through spending; however the pace has undershot expectations. As a result, corporate earnings have continued to remain sluggish and have failed to enthuse investors as well. While soft commodity prices have helped corporate India in improving margins and profitability; however the benefit was capped by sluggish top line growth which is a function of demand in the economy.”
Below are the 10 stocks that experts are recommending after their third quarter earnings.