Three stocks including two PSU banks -- Union Bank of India and Bank of India, and Syrma SGS Technology Ltd, fell up to 12 per cent in Monday's trade amid disappointment over March quarter results.
Bank of India plunged 12.35 per cent to hit a low of Rs 121.70 on BSE. Union Bank shares tanked 8.2 per cent to hit a low of Rs 130.40. Syrma SGS Technology Ltd tumbled 11.93 per cent to Rs 415.35 level.
In the case of Union Bank, the PSU bank reported a 19 per cent YoY earnings growth, despite a 4 per cent drop in operating profit decline, as provisions declined 57 per cent YoY. Return ratios held up with RoA at 1 per cent and RoE at 14 per cent.
"Asset quality continued to improve—gross and net NPLs declined 5 bps QoQ; slippages stood at 1.5 per cent and credit cost at 0.6 per cent. NIM was flat QoQ. Retain ADD with FV of Rs 155 (unchanged)," said Kotak Institutional Equities.
In the case of Syrma SGS Technology, while Q4 Ebitda margin improved 101 bps sequentially, it declined 222 bps YoY. ICICI Securities said the margin declined due to focus on high volume-based automotive and consumer business with relatively lesser margins and higher input prices. It believes a revival in healthcare segment and operating leverage benefits may revive margins in FY25 and FY26. This brokerage has cut its target on the stock to Rs 600 from Rs 675 earlier.
In the case of Bank of India, Morgan Stanley has reportedly suggeted an 'underweight call on Bank Of India, satin the March quarter Q4 core pre-provision operating profit growth at 30 per cent was above estimate owing to higher revenue and lower costs. Higher slippages sequentially and higher credit costs were negatives. This brokerage has a target of Rs 124 on the stock. Business Today could not independently verify the media report.