Key Q4 Results Updates: With the likes of Maruti Suzuki, Wipro, Bajaj Finserv Infosys, TCS, HCL Technologies, HDFC Bank, Shriram Finance, Jio Financial, Reliance Industries, Tata Consumer Products, HUL, Axis Bank, ‘Vedanta, Tech Mahindra, Bajaj Finance having already released their earnings for the quarter ended March 31, 2024, the Q4 earnings season is now full swing. Market Participants are today keen on the performance of players like Life Insurance Corporation of India, NMDC, AstraZeneca Pharma, Parle Industries, Flair Writing Industries, DCM Shriram Industries, Kirloskar Industries, DCM Shriram Industries, Dish TV India, Goodyear India, Essar (India), ABans Enterprises among others. Meanwhile, the street is also keeping a watch on how stocks are performing for the companies that have already released their earnings for the period.
The week will witness announcements from the likes of Aditya Birla Fashion & Retail, Aster DM Healthcare, Apeejay Surrendra Park Hotels, General Insurance Corporation of India among others.
The board of directors recommended a dividend of Rs 13 (130 per cent) per equity share of Rs 10 each for the financial year 2023-2024. The final dividend on equity shares will be paid within 30 days from the date of declaration by the members at the Annual General Meeting, the company said.
Kirloskar Industries Ltd recorded its fiscal fourth quarter earnings on Monday with profit at Rs 62.46 crore, up 42.4 per cent in comparison to Rs 43.87 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 1728.60 crore, up 9.8 per cent as against Rs 1574.21 crore reported during the quarter ended March 31, 2023. The company EBITDA was up 36 per cent on-year at Rs 240.4 crore
DCM Shriram Industries Ltd recorded a profit of Rs 38.64 crore during the quarter ended March 31, 2024, up 22.5 per cent in comparison to Rs 31.53 crore during the same period last year. It posted revenue from operations at Rs 511.69 crore, down 4.3 per cent as against Rs 534.72 crore recorded during the fourth quarter of FY23. The company EBITDA stood at Rs 68.7 crore, up 4.7 per cent on-year.
West Coast Paper Mills Limited recorded its fiscal fourth quarter profit at Rs 119.79 crore, down 56.9 per cent in comparison to Rs 278.23 crore during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 1070.10 crore, down 21.2 per cent as against Rs 1357.48 crore during the quarter ended March 31, 2023.
The company board also recommended a dividend of Rs 8 (400 per cent) per equity share on 6,60,48,908 equity shares of Rs 2 each for the financial year ended on 31st March, 2024.
“With more than a 23% north-east market share, Star Cement’s greater focus further strengthens its position with more capacity. While Q1 would be hit by elections/festivals and the Meghalaya unit’s stabilising cost, FY25 volume growth was guided to be 18-20% with more profitability aided by savings from the low-cost coal-supply contract, rising RE capacity, incentives from expanded capacity, etc.”
- Analysts at Anand Rathi Research
"Divi's Lab has been making great strides in both the CS and API segments through a strong chemistry skill set. It is not only getting ready to supply APIs once they are off-patent, but also working on backward integration to gain market share/maintain profitability in the existing API portfolio. The company continues to improve services under the CDMO segment during product development and manufacturing stages. We expect a 27% earnings CAGR over FY24-26. The valuations, however, adequately capture the earnings upside (51x FY25E EPS of Rs 80 and 43X FY26E EPS of Rs 97)," said Motilal Oswal on Divi's Laboratories after it released its Q4 FY24 earnings. The brokeing firm maintained its "Neutral" rating on the stock of Divi's Lab.
"NTPC is a play on energy transition as well as energy security. We believe its regulated equity base will increase on 25GW addition of thermal capacity. Expanding RE pipeline and foray into new business verticals of green hydrogen & pumped hydro storage would drive growth. The stock is trading at 2.0x FY26E P/B, which seems attractive. We retain "Accumulate" and raise our target price to Rs 400 from Rs 390 on better visibility on regulated returns and traction in RE initiatives, said Elara Securities on NTPC post Q4 results.
"We increased our EBITDA estimates to 7% for FY25 and 6% for FY26 to account for the uptick in aluminium prices. Additionally, we raised our target multiple for other businesses from 5.0x to 5.5x, considering better pricing dynamics due to tight demand-supply conditions and the recent sanctions imposed on Russia’s non-ferrous metals. For Novelis, given the recent IPO, we have hiked its target multiple from 6.0x to 6.3x, at a 10% discount to peers Kaiser Aluminium and Constellium average as it is likely to attract holding company discount. We roll over to March 2026E from December 2025E and increase our target price to Rs 715 from Rs 515 on 6.3x (from 6.0x) March 2026E EV/EBITDA to Novelis, and 5.5x (from 5.0x) March 2026E EV/EBITDA to other business," said Elara Securities on Hindalco after it released its last quarterly result of FY24. The brokerage firm changed the rating on the stock to "Accumulate" from "Reduce".
Going forward, the cost of production in the aluminium business is expected to be under control, which would keep margins strong. Novelis would continue to see margin improvement across FY25 and FY26. The ongoing capex in Novelis would establish Hindalco as the global leader in beverage cans and automotive FRP segments. The capex is likely to be completed within the revised timeline, and there will be no further changes in cost estimates. "With a robust outlook and improving profitability, especially at Novelis, we raise our EBITDA estimates by 4%/6% for FY25/26. We reiterate our "Buy" rating on Hindalco with a revised target price of Rs 790 (based on SOTP valuation)," said Motilal Oswal on Hindalco after it reported its January-March period results.
NTPC's "plant load factor for coal-fired plants stood at 77.25% v/s national average of 69.49%. Given the sustained growth in regulated equity driven by a revival in margin-accretive thermal capex and gradual improvement in the execution of renewables, we maintain our "Buy" rating on the stock with a revised target price of Rs 414 valuing the thermal business at 2.7x FY26E," said JM Financial on NTPC after it declared its Q4 FY24 results.
"We expect Novelis to deliver strong operating performance with improving demand across segments & regions; while India ops to benefit from higher LME prices in FY25. At the current market price, the stock is trading at EV of 5.9x/5.1x FY25E/FY26E EBITDA respectively. Retain a "Buy" rating with a revised target price of Rs 779 (earlier Rs658)," said Prabhudas Lilladher on Hindalco Industries after Q4 results.
"Historically Torrent Pharma has successfully managed to integrate Unichem and Elder acquisition, which gives us comfort. We expect 16% EBITDA CAGR and 30% PAT CAGR over FY24-26E. Maintain a "Buy" rating with a revised target price of Rs 2,900 valuing at 22x EV/EBITDA on FY26E," said Param Desai, Senior Research Analyst at Prabhudas Lilladher.
"The weak Q4 operating performance stemmed from Karnataka Bank’s lower NIM and higher opex, as also seen in Q3. However, lower provisions and taxes aided profitability, with the return on assets at 0.96% (down 25 basis points). Asset quality remained under pressure. Ahead, with credit growth likely in the mid-teens and modest credit costs, earnings would be good, with the RoA likely sustaining above 1%. We maintain a "Buy," with a lower target price of Rs 298, 0.9x P/BV on its FY26e book," said the brokerage firm, Anand Rathi, on Karnataka Bank in a research report.