DRL: Analysts believe upside is capped for the stock as positives are largely factored in the price, at least in the near term. They have price targets for the stock in a wide range of Rs 4,200-5,200 level. 
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DRL: Analysts believe upside is capped for the stock as positives are largely factored in the price, at least in the near term. They have price targets for the stock in a wide range of Rs 4,200-5,200 level. At least 29 companies from the BSE500 pack have reported over 100 per cent jump in net profit for the March quarter. Profits for six of the companies in fact jumped a whopping 5-11 times, data compiled from corporate database Ace Equity suggests
A total of 280-odd index constituents are out with quarterly earnings so far and Dr Reddy's Laboratories (DRL), Sterlite Technologies, CEAT and Nuvoco Vistas Corporation have led the growth chart.
For Dr Reddy's Laboratories, profit jumped 11 times to Rs 952.50 crore from Rs 86.50 crore YoY. Revenue for the quarter rose 16 per cent to Rs 6,296.80 crore compared with Rs 5,436.80 crore YoY. Analysts believe upside is capped for the stock as positives are largely factored in the price, at least in the near term. They have price targets for the stock in a wide range of Rs 4,200-5,200 level.
Sterlite Technologies reported a profit of Rs 79 crore for the stock, up 7.9 times over Rs 10 crore in the year-ago quarter. But for Nuvama Institutional Equities, Sterlite Technologies results were lower-than-expected.
"Sterlite Technologies is witnessing demand-side pressures in North America as inventory has accumulated with carriers and are facing execution challenges. Uptick in UK services revenue and reduction of losses QoQ with breakeven in March is a big positive," it said while suggesting a price target of Rs 211. YES Securities has maintained its 'Buy' rating on the stock with target price of Rs 210 per share based on EV/Ebitda of 7.5 times on FY25E.
CEAT reported a 7.02 times jump in Q4 profit at Rs 124.73 crore. LKP Securities finds Q4 performance robust. CEAT, it said, is expected to improve performance in both OEM and replacement demand aided by increase in the capacity. The brokerage has a target of Rs 2,091 on the stock.
Prabhudas Lilladher said impact on export volumes, moderation in growth and higher interest costs may put pressure on profitability in the near-term. "Yet correction in commodity cost coupled with cost control would aid margin expansion, in our view. Maintain ‘Accumulate’ with revised target of Rs 1,800 (from Rs 1,635 earlier)," it said.
Nuvoco Vistas Corporation (6.9 times), Sapphire Foods India (5.11 times) and Kansai Nerolac Paints (5.02 times) are some companies that logged 5-7 times YoY jump in March quarter profit.
Nuvoco's numbers in fact failed to meet analyst expectations. Nuvoco Vistas’s Ebitda was lower than consensus due to lower realisation. Volume de-grew 5 per cent YoY, which was broadly in-line with Antique Stock Broking's estimate.
"We believe Nuvoco is likely to straddle between growth and leverage over the next few years, given relatively high net debt to Ebitda of 3.6 times. Factoring lower profitability, we reduce our FY24-25E Ebitda by 8-11 per cent, lower our target multiple to 8.5x (9x earlier) and reduce our target price to Rs 375 (earlier Rs 435)," it said.
In the case of Alembic Pharmaceuticals (profit up 4.75 per cent, B&K Securities called Q4 earnings muted, due to a decline in the US sales led by higher base of Azithromycin sales. The company has also took impairment due to challenging US business as the price erosion pressure persists.
"The company has received approvals from USFDA on the majority of the products as the plants have received EIR. Aleor’s turnaround is crucial for future earnings visibility besides clearing Karkhadi site which is to come back to full compliance. Though, the company is expected to receive approvals, the US market remains competitive led by ongoing price erosion," B&K Securities said.
Just Dial, The Indian Hotels Company, Apollo Tyres, Mahindra Holidays & Resorts India, Adani Green Energy, The Great Eastern Shipping Company and ABB India saw 3-4 times (220-306 per cent) jump in Q4 profits.
Just Dial's average price target suggests 19 per cent potential upside, India Hotel's target suggests 7 per cent upside, Apollo Tyres 6 per cent. ABB India's traget suggests 6 per cent potential downside.
Bank of Baroda, Carborundum Universal, Welspun India, CG Power and Industrial Solutions, Bank Of Maharashtra, IDFC First Bank, Bank Of India, MRF and Mahanagar Gas were among companies reporting doubling of profits.
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