Select renowned companies including Hindalco Industries, United Breweries, Ipca Laboratories, SJVN, Mahindra & Mahindra Financial Services and Deepak Nitrite are set to announce their results for the period ended on December 31, 2024 later today. Interestingly, the majority of these stocks were trading higher, up to 4 per cent in early trade on Thursday, ahead of their earnings.
Shares of Hindalco Industries rebounded more than 2.345 per cent to Rs 604.25 from day's low at Rs 590.30 on Thursday, with its total market capitalization at Rs 1.35 lakh crore mark. The stock had settled at Rs 599.05 on Wednesday, correcting about 23 per cent from its 52-week high at Rs 772.
Elara Capital expects Hindalco to report a revenue of Rs 56,667.2 crore, up 7.3 per cent YoY but down 2.6 per cent QoQ. Ebidta is seen at Rs 7,629.7 crore, up 30.1 per cent YoY but down 3.2 per cent QoQ. Adjusted net profit may come in at Rs 3,675.5 crore, up 57.7 per cent YoY but down 13.9 per cent QoQ. Elara has an 'accumulate' rating on Hindalco.
"Firm aluminum price to mitigate impact of softer margin at Novelis. While aluminum prices softened QoQ in Q2FY25, it has scripted a strong recovery in Q3FY25, up by 17 per cent YoY and 8 per cent QoQ. Despite the expected rise in operating costs and muted performance of its subsidiary, Novelis. Hindalco is expected to benefit from higher aluminium prices," said Elara.
Shares of United Breweries Ltd (UBL) recovered nearly 3 per cent to Rs 2,079.90 on Wednesday, from day's low at Rs 2,020. The total marketcap of the alcohol player stood slightly below Rs 55,000 crore mark. The stock is down 12 per cent from its 52-week high at Rs 2,299.40.
Anand Rathi Shares & Stock Brokers pegs UBL's revenue at Rs 2,078.5 crore for the December 2024 quarter, up 13.9 per cent YoY but down 1.8 per cent QoQ. Ebitda margin may contract nearly 170 bps sequentially to 9 per cent, while net profit is seen at Rs 108 crore, up 26.6 per cent YoY but down 18.4 per cent QoQ. Anand Rathi has a 'buy' rating on it owing to dual tailwinds of volume growth and margin recovery.
Shares of Ipca Laboratories Ltd soared 3.95 per cent to Rs 1,476.40 during the session against its previous close at Rs 1,420.40 in the previous session. The total mcap of the company stood close to Rs 38,000 crore mark. The pharma player has tumbled about 20 per cent from its 52-week high at Rs 1,757.65.
YES Securities pencilled in IPCA Labs' revenue at Rs 2,293.6 crore, up 11.7 per cent YoY but down 2.6 per cent QoQ. Ebitda is seen at Rs 386.6 crore, up 72 per cent YoY but a sharp contraction on a sequential basis. Net profit is pegged at Rs 201.2 crore, up 11.9 per cent YoY but down 12.3 per cent QoQ.
"Weaker domestic business QoQ would lead to gross margin decline on sequential basis. Branded and generic exports would perform in divergent manner as the former is likely to be weak in the current year. No traction or pick up likely in API while institutional business to remain elevated though presumed lower QoQ," YES Securities said.
Shares of SJVN Ltd gained nearly 2.5 per cent to Rs 92.52 on Thursday with a total valuation more than Rs 36,000 crore. The stock has corrected 44 per cent from its 52-week high at Rs 159.60.
Antique Stock Broking pegs SJVN to report a revenue of Rs 603.1 crore in December 2024 quarter, up 11 per cent YoY but crashing 42.3 per cent sequentially. Ebitda is seen at Rs 404.1 crore, up 9.7 per cent YoY but nearly halving on QoQ basis. Net profit may come in at Rs 111.8 crore, down 31.4 per cent YoY and flat sequentially.
"In Q3 generation is 11 per cent YoY but PAT decline is due to interest costs on debt taken to fund equity for under construction plants. SJVN has been aggressively adding renewable energy projects to the current installed capacity of 2,465 MW. The company plans to add 2,638 MW in FY25E and thus it will close the year with a capacity of 5,103 MW," said Antique.
Mahindra & Mahindra Financial Services Ltd (M&M Finance) rallied 4 per cent to Rs 287 on Thursday, with a shadow lender valued above Rs 35,000 crore. The stock had settled at Rs 275.95 on Wednesday. The NBFC counter has crumbled about 20 per cent from its 52-week high at Rs 342.90.
B&K Securities expects M&M Finance to clock in at revenue of Rs 4,082.8 crore, up 17 per cent YoY and 4 per cent QoQ. Ebitda margin may remain flat at 30.4 per cent, while Adjusted net profit may come in at Rs 586.8 crore, up 6.1 per cent YoY and 58.8 per cent QoQ. B&K has a 'hold' rating on the stock.
Shares of Deepak Nitrite Ltd gained more than 2 per cent to Rs 2,255.05, with its total mcap topping Rs 30,000 crore mark. The stock had settled at Rs 2,202.90 on Wednesday, after dropping nearly 31 per cent from its 52-week high at Rs 3,168.65.
Nuvama Institutional Equities is expecting Deepak Nitrite's revenue to come in at Rs 2,004.4 crore, flat on both yearly and sequential basis. EBitda is seen degrowing 11 per cent YoY and 9 per cent QoQ to Rs 272.2 crore, while Core PAT may come at Rs 178 crore, down 12 per cent YoY and 8 per cent QoQ.
Deepak Nitrites' 3QFY25 performance is expected to deteriorate even further sequentially owing to weak phenol/acetone spreads. The Advanced intermediates portfolio too looks challenged owing to global inventory rationalization, especially in the agrochemical intermediates segment. We expect a minor improvement in the Phenolics business, whereas advanced intermediates are set to de-grow, said Nuvama.