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Maruti Suzuki, TechM, ICICI Bank, HCL Tech: Which Nifty stock to buy post Q4 results?

Maruti Suzuki, TechM, ICICI Bank, HCL Tech: Which Nifty stock to buy post Q4 results?

The auto major posted a 19.10% rise in gross sales at Rs 36,694.20 crore during the quarter under review. Net profit of Bajaj Auto also increased 17.99% YoY to Rs 2,011.43 crore.

Rahul Oberoi
Rahul Oberoi
  • Updated Apr 29, 2024 3:44 PM IST
Maruti Suzuki, TechM, ICICI Bank, HCL Tech: Which Nifty stock to buy post Q4 results?Maruti Suzuki, TechM, ICICI Bank, HCL Tech: Which Nifty stock to buy post Q4 results?

The majority of Nifty companies, which have announced their results till date, have reported growth in their net profit and gross sales numbers for the quarter ended March 2023. Analysts on Dalal Street are also bullish on a couple of Nifty firms after their Jan-March quarter results. Starting from the auto sector, Maruti Suzuki posted a 47.05% year-on-year (YoY) rise in net profit at Rs 3,952.20 crore in Q4FY24. The auto major posted a 19.10% rise in gross sales at Rs 36,694.20 crore during the quarter under review.  Net profit of Bajaj Auto also increased 17.99% YoY to Rs 2,011.43 crore.

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Brokerage Sharekhan is positive on Maruti Suzuki (MSIL) with a price target of Rs 14,434, indicating an upside of 13% from the current market price. “MSIL reported slightly better-than-expected adjusted EBITDA margin on account of favourable operating leverage and fall in average discount per vehicle, which was partly offset by the rise in steel prices (2% QoQ). We maintain our ‘Buy’ rating on the stock with a revised price target in expectation of the improvement in operating performance and structural upward shift in its product mix,” Sharekhan said in a report.

In the banking and NBFC space, Axis Bank posted a consolidated profit of Rs 7,599 crore in Q4FY24 against a consolidated loss of Rs 5,361.85 crore in the same quarter last year. YES Securities is positive on Axis Bank with a price target of Rs 1,440.

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Private banking majors HDFC Bank and ICICI Bank also reported a 39.92% and 18.46% YoY rise in net profit at Rs 17,622.38 crore and Rs 11,671.52 crore during the quarter under review. Motilal Oswal has set a target price of Rs 1,950 for HDFC Bank. “Over FY24-26, we estimate HDFC Bank to deliver 13.5% and 18% CAGR in loans and deposits and 16% CAGR in earnings, translating into RoA and RoE of 1.9% and 15.5%, respectively, by FY26. On the other hand, Sharekhan is bullish on ICICI Bank with a price target of Rs 1,300. “ICICI Bank relatively well positioned among large private peers. NIM pressure in the near term and a gradual normalisation of credit costs in the near to medium term would be offset by moderation in operating expenses growth thus, we see the bank sustaining RoA over 2% in the near to medium term. The bank is on the path of delivering a sustainable and predictable earnings growth trajectory,” Sharekhan said.

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Among the other major Nifty companies, IndusInd Bank, Bajaj Finance, Bajaj Finserv, HDFC Life Insurance, SBI Life Insurance and Shriram Finance have posted a growth of 14.96%, 21.11%, 19.76%, 13.72%, 4.37% and 56.30%, respectively, in their bottom line figures in Q4FY24. Sharekhan has set a price target of Rs 2,040 for Bajaj Finserv, while Emkay Global Financial is positive on Shriram Finance with a price target of Rs 2,850.

In the information technology space, the consolidated net profit of Tech Mahindra and Wipro declined 40.86% YoY and 7.80% YoY, respectively for the quarter ended March 2024. Gross sales of these IT majors also declined up to 6% YoY. On the other hand, IT major Tata Consultancy Services posted a 9.15% rise in net profit on a 3.51% increase in gross sales in Q4FY24. The bottom line of Infosys also grew 30.04% YoY to Rs 7969 crore in Q4FY24. Net profit of HCL Technologies stood almost flat at Rs 3,986 crore (up 0.08% YoY). On the other hand, net profit of LTIMindtree inched lower by 1.24% to Rs 1,099.90 crore during the quarter under review. As many as 21 Nifty companies have reported their Q4FY24 results till April 28.

Sharekhan is positive on HCL Technologies and Tech Mahindra with a price target of Rs 1,670 and 1405, respectively. Sharing its view on Tech Mahindra, Sharekhan said, “The company aims to achieve top-line growth above peers in FY27 with EBIT margin exceeding 15% from 6.1% in FY24. It expects to achieve $250 million savings each year for the next three years. The organisational restructuring and the strategy initiatives under the three-year program undertaken by the new CEO would aid in gradual turnaround in the initial phase followed by steady incremental gains in the later phase.”

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Energy-to-telecom behemoth Reliance Industries (RIL) witnessed a drop of 1.80% in its consolidated net profit at Rs 18951 crore for the quarter ended March 2024. On the other hand, gross sales increased by 10.83% YoY to Rs 2,64,834 crore.

Global brokerage Jefferies is positive on RIL with a revised target price of Rs 3,380 (Rs 3,140 earlier). “Retail growth was soft though balance sheet improved and net debt declined aided by capital raise and asset divestiture. Jio was ahead on higher ARPUs due to an improved subscriber mix. O2C profitability rose on robust refining while petchem was subdued. Peak capex appears behind, FCF improved and net debt fell 6% YoY,” Jefferies said.

FMCG firm Nestle reported 26.81% YoY growth in net profit at Rs 934.17 crore in Q4FY24. On the other hand, Tata Consumer Products and Hindustan Unilever witnessed a decline of 19.35% and 1.62% YoY in their respective consolidated net profit at Rs 216.63 crore and Rs 2,558 crore.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Apr 29, 2024 3:44 PM IST
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