Indian equity markets are likely to see a stock-specific trading session today as a fresh set of Q4 earnings, dividend announcements and corporate updates are likely to guide sentiment. Apart from several mid-cap and financial stocks that witnessed mixed performance patterns, the focus is likely to remain on the heavyweights like Larsen & Toubro (L&T), Hero MotoCorp, Mahindra & Mahindra (M&M) and Coforge.
Stocks to watch on earnings
1. Coforge
Coforge posted a stellar performance in Q4, with revenue up 5.2% QoQ to ₹4,450 crore and net profit jumping to ₹612 crore from ₹250 crore. EBIT margin also increased significantly to 15.6%, clearly reflecting operational efficiencies. The board did not declare a dividend and could keep the stock on investors’ radar until its next meeting.
2. Larsen & Toubro (L&T)
L&T’s revenue is up 11.3% at ₹82,762 crore; net profit dips 3.1% YoY at ₹5,326 crore. It declared a final dividend of ₹38 a share. P Ramakrishnan will be the CFO of the new company from 1st July. Strong order execution and demand from the infrastructure sector will continue to drive the stock.
3. Hero Moto Corp
Hero MotoCorp had a good quarter with revenue growing 28.8% to ₹12,797 crore and net profit rising nearly 30% to ₹1,401 crore. The company also announced a big dividend of ₹75 per share and reappointed Pawan Munjal as executive chairman, which should help bring leadership stability.
4. Mahindra and Mahindra (M&M)
Strong demand in the auto sector and sustained momentum in its SUV and tractor businesses are expected to keep M&M active in trading after its Q4 update. Investors will be watching the company’s guidance on margins and volumes closely.
Other important Q4 earnings stocks to watch
Here are some of the companies set to respond to their quarterly earnings reports:
- Shree Cement, Polycab India, PB Fintech, One 97 Communications (Paytm)
- Bajaj Auto, Blue Star, Godrej Consumer Products
- KPIT Technologies, Birlasoft, Hexaware Technologies
- Radico Khaitan, Sula Vineyards, Kansai Nerolac Paint
- Aavas Financiers Aptus Value Housing Home First Finance
- Shoppers Stop, Raymond Realty, SRF, Ajanta Pharma
This group of stocks is performing in different ways; some financials and manufacturers are growing strongly, but some consumer-facing companies are reporting margin pressure.
Stocks responding to corporate news
Tata Motors
Tata Motors has signed an agreement with the Nagaland government for the supply of 43 buses. The buses are expected to be delivered in the next three months and will strengthen the presence of Tata Motors in the public transport segment.
Grasim Inds
Good news for Grasim. The National Company Law Appellate Tribunal (NCLAT) has stayed the penalty of ₹301.6 crore levied by the Competition Commission of India (CCI) in the viscose staple fibre case. The case has now been returned for retrial.
Mahindra Holidays & Resorts Ltd.
The company also announced a leadership transition, naming Rajiv Vimal as its new chief financial officer, effective July 1, 2024. Vimal Agarwal will replace Vimal.
KEC International Ltd
KEC has secured fresh orders worth ₹1,002 crore from transmission, renewable energy and transport segments, which is likely to further improve its healthy order book visibility.
Indian Energy Exchange (IEX)
In April, the company recorded a 12,341 million unit, or 16.6% YoY, jump in electricity trading volume. This indicates healthy trends in power demand.
Vi (Vodafone Idea)
The company has witnessed a shuffle at the top with Kumar Mangalam Birla assuming charge as non-executive chairman and Ravinder Takkar as vice-chairman.
Other notable stock-specific news
- United Breweries: The company saw a modest profit growth but a slight dip in revenue.
- Emcure Pharmaceuticals: The company had a steady 24% growth in profit.
- ICICI Bank: The bank receives a warning letter from SEBI regarding its DP operations.
- UCO Bank: Mumbai tax authority cuts bank’s GST demand to ₹5 crore from ₹1,473 crore
- Spandana Sphoorty Financial: The company has made a strong recovery and returned to profit.
- Lloyds Metals: The firm reported substantial profit growth and got a nod for NCDs up to ₹2,500 crore.
Market takeaway
Today’s trading session is expected to be highly stock-specific, with earnings reactions driving intraday volatility. We expect midcap IT, financial and consumer stocks to see higher price volatility, given margin trends and forward guidance. Large-cap stocks such as L&T and Hero MotoCorp offer stability with strong earnings and dividend payouts.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The experts give their recommendations, suggestions, views, and opinions. Please consult a financial advisor before making any investment decisions.)
