The third quarter of the last fiscal was much similar to as expected by the domestic Brokerage, Motilal Oswal with corporate Bank, IT Sector and Consumer sector delivering the robust performance while Automobile and Cement disappointed in the third quarter with their sluggish growth.
Here is the list of ten stocks under the radar of Motilal Oswal.
Axis Bank-The private lender under a new CEO reported highest profit in the last 11 quarters at ₹1681 Crore, led by steady NII growth, controlled operational expenditure and healthy recoveries/treasury gains.
ICICI Bank, the net interest income (NII) grew 20.5% on a YoY basis to ₹6870 crore for the third quarter. Margin improved by 7bps (QoQ) to 3.4 percent, mainly due to healthy recovery in one of the large NPL accounts.
SBI– State owned lender, SBI reported a net profit of ₹3,950 crore due to lower other income. Also, the NII growth was robust at 21% on a YoY basis, along with this provision declined by 68% on YoY basis.
Life Housing Corporation(LIC)- Despite the tight liquidity environment, the loan book grew 3% QoQ basis while in terms of YoY basis it grew about 16%.
Titan Company- Titan has been reporting healthy trends in its jewelry segment with 37% increase in the Jewelry sales and a 280 basis point expansion in margins.
Maruti Suzuki India- The automobile sector witnessed the sluggish growth and Maruti’s EBTIDA margin stood at 9.8%.
Mahindra and Mahindra-The EBITDA remained under pressure for M&M, with auto segment PBIT margin falling by about 260bps on a YoY basis to 5.8 percent.
Tech Mahindra-EBITDA margin for Tech Mahindra expanded with 50bps on a QoQ basis and stood at 19.3 percent.
Coal India- The state owned entity reported a strong quarter due to benefits of price hike and low cost. The revenue surged by 16% on YoY basis. The company has managed to strictly control the production cost (cash CoP down ~5% YoY in in the first 9 months of the current fiscal), adding on the benefit of higher realization.
Bharti Airtel-The quarter was characterized by a deceleration in the sequential decline in India wireless EBITDA and continued healthy growth in Africa EBITDA. The new policy of minimum recharge by Airtel has worked in the companies favor and has led to a marginal increase in Average Revenue Per User.