Select renowned companies including Hindustan Aeronautics, Power Finance Corporation, Bharat Forge, Muthoot Finance, Ashok Leyland, Rail Vikas Nigam and Siemens are set to announce their results for the period ended on December 31, 2024 later today. Interestingly, these stocks plunged up to 7 per cent in early trade on Wednesday, before making a partial recovery.
Shares of Hindustan Aeronautics Ltd tumbled nearly 5 per cent to Rs 3,471.25 on Wednesday, with its total market capitalization slipping below Rs 2.4 lakh crore mark. The stock had settled at Rs 3,648 on Tuesday. It has crumbled nearly 40 per cent from its 52-week high at Rs 5,675.
Equirus Securities is expecting Hindustan Aeronautics to report net sale of Rs 7,205 crore, up 19 per cent YoY and 21 per cent QoQ. Ebitda is seen at Rs 1,780.2 crore, increasing 24 per cent YoY and 8 per cent QoQ. PAT is seen at Rs 1,340.5 crore, up 6 per cent YoY but down 11 per cent sequentially.
"We estimate a 19 per cent YoY growth in 3QFY25 off a soft base. 2HFY25 revenues could come under pressure because of a slower than expected ramp up in LCA Mk1A execution due to delayed engine deliveries by GE. We expect FY25 margins to come down to 26.5 per cent; they would gradually come down further given increasing share of manufacturing in the mix," Equirus said with a 'reduce' rating.
Shares of Power Finance Corporation Ltd (PFC) had dropped 3.5 per cent to Rs 362.10 in the early trading session on Tuesday, but turned flat at Rs 378.45 as the session progressed. The total mcap of the state-run shadow lender, which is down 37 per cent from its 52-week high, stood slightly above Rs 1.25 lakh crore.
Motilal Oswal Financial Services expects PFC's net internet income to come in at Rs 4,554.6 crore, up 9.5 per cent YoY in December 2024 quarter. Operating profit is seen at Rs 5,101.1 crore, up 8.9 per cent YoY and net profit is pegged at Rs 3,962.3 crore, rising 17.3 per cent on a yearly basis.
Motilal Oswal expects AUM/disbursement growth of 13 per cent/110 per cent YoY, with margins to contract 5 bps to 3.5 per cent for the quarter. The brokerage also expects credit costs to remain benign, aided by stressed asset resolutions. "Commentaries on growth in loan book, margins, and asset quality/credit costs are the key monitorables," it said, with a buy rating on the stock.
Shares of Bharat Forge Ltd also turned flat to Rs 1,104.85 on Wednesday with a total valuation close to Rs 53,000 crore. However, the stock cracked nearly 4 per cent to Rs 1,071 in the early trade. It has corrected more than 40 per cent from its 52-week high at Rs 1,826.20.
YES Securities pegs Bharat Forge's revenue at Rs 2,168.7 crore in Q3FY25, down 4.2 per cent YoY and 3.5 per cent QoQ. Ebitda is seen at Rs 619.1 crore, up 3 per cent YoY but down 28 per cent QoQ. Net profit is penciled at Rs 348.5 crore, down 7.7 per cent YoY and flat sequentially.
"We expect standalone revenues to decline driven by 7 per cent YoY decline in shipment tonnage (Rs 62,800 per ton) partially offset by 3 per cent increase in realizations at Rs 34,520 per ton (-1.5 per cent YoY). Ebitda margins are expected to be flat YoY (-30 bps QoQ) at 28.5 per cent led by benign RM benefits," YES Securities said.
Muthoot Finance Ltd also fell nearly 3 per cent to Rs 2,130 on Wednesday, but managed to trade marginally higher at Rs 2,197.90 with its total valuation above Rs 88,000 crore mark. The stock has not declined much from its 52-week high at Rs 2,308.75, thanks to the rise in the gold prices.
Nuvama Institutional Equities expects Muthoot Finance to report an NII at Rs 2,656.5 crore, up 39 per cent YoY and 5 per cent QoQ. Pre-provisioning operating profit (PPOP) is seen at Rs 1,966 crore, up 41 per cent YoY and 3 per cent QoQ. Core PAT is seen at Rs 1,287.2 crore, up 25 per cent YoY and 3 per cent QoQ. "Margin is likely to decline by 4 bps and gold AUM could rise 5.5 per cent QoQ," said Nuvama with a reduce tag.
Shares of Rail Vikas Nigam (RVNL) felt jolts of more than a 7 per cent fall before the Q3 results today. The stock dropped to Rs 342.10 on Monday, but managed to cut losses to Rs 361.10 with a total mcap of more than Rs 75,000 crore. The stock is down 47 per cent from its 52-week highs.
Antique Stock Broking is penciling RVNL's sale at Rs 4,923.8 crore, up 5 per cent YoY and 1.8 per cent QoQ. Ebitda is seen at Rs 246.2 crore, down 1.2 per cent YoY and 9.3 per cent QoQ. Net profit may come in at Rs 321.9 crore, down 102. per cent YoY but up 12.2 per cent QoQ.
"1HFY25 order book is at Rs 79,500 crore and the order book consists mainly of 60 per cent nomination and 40 per cent work secured from bidding. PAT decline could be led by lower tax rate in the base quarter and also lower other income as seen in 1HFY25. In 3QFY25, order inflow is Rs 2,500 crore and YTDFY25 is at Rs 7,100 crore," Antique added.
Interestingly, shares of Ashok Leyland Ltd remained rangebound between Rs 199.75 and Rs 205.85 on Wednesday, against its previous close at Rs 203.60 on Tuesday. The company commanded a total marketcap more than Rs 60,000 crore, but the stock is down 23 per cent from its 52-week high.
Siemens Ltd was seen sliding about 4 per cent for the day to 5,005.80 on Wednesday, with its total mcap slipping below Rs 1.85 lakh crore mark. However, the stock turned flat Rs 5,162.05. The capital goods major is down over 38 per cent from its 52-week peak to Rs 8,129.95.
Anand Rathi Shares & Stock Brokers pegs Ashok Leyland's revenue at Rs 9,287.2 crore in the third quarter of the ongoing fiscal, flat on a yearly basis but up 5.9 per cent QoQ. Ebitda margins may expand marginally to 12.1 per cent for quarter, while adjusted net profit may come at Rs 702.,2 crore, up 20.9 per cent YoY and 7.6 per cent QoQ. Anand Rathi has a 'buy' rating on the stock.
Elara Capital expects Siemens to clock a revenue of Rs 5,519.4 crore in the Q3FY25, up 14.4 per cent YoY but down 14.6 per cent QoQ. Ebitda is seen to come in at Rs 734.9 crore, up 23.3 per cent YoY but down 21.7 per cent QoQ. Adjusted net profit is seen at Rs 655.8 crore, up 29.7 per cent YoY but down 21.1 per cent QoQ. Elara currently has an 'accumulate' rating on Siemens.