Stocks To Watch Today: HCLTech, Tata Elxsi, Tech Mahindra, Trent, SBI Life, Aurobindo Pharma In Focus

Earnings In Focus

Investors will pay close attention to quarterly performance reports from various organizations such as HCLTech, Tata Elxsi, Tech Mahindra, Trent, SBI Life Insurance, etc. Profit reports continue to be the main reason behind stock prices changes during the Q4 result season.

Key Earnings Announcements

HCL Technologies showed a relatively poor performance in operations during the quarter. Revenue remained almost unchanged from the previous period at ₹33,981 crore. However, EBIT fell by 10.6% quarter-on-quarter, which resulted in a marginal decline in operating margin to 16.5%. Nevertheless, net profit recorded a substantial increase of 10.1%, amounting to ₹4,488 crore. The firm also approved an interim dividend of ₹24 per share.

Tata Elxsi showed a positive trend during the reporting quarter. Its revenue jumped by 4.2% to ₹994 crore, while EBIT recorded a gain of 11% to ₹221 crore. The margin showed an improvement by 140 basis points to 22.3%. Net profit witnessed a massive surge by 287.4% to ₹220 crore. Furthermore, it declared dividends at ₹75 per share, making it more appealing to income-seeking shareholders.

Persistent Systems witnessed healthy revenue and profit growth. Revenue climbed by 7.4% quarter-on-quarter to ₹4,056 crore, while net profit surged by 20.4% to ₹529 crore. Nevertheless, there was a marginal decline in margin percentage. The company also decided to pay out a final dividend of ₹18 per share.

ONE WAM 360 reported a disappointing quarter as revenues were down by 5.6% QoQ to ₹1,115 crore, and profits declined 11.8% QoQ to ₹289 crore. The company did declare an interim dividend of ₹6 per share.

DLM Cyient showed negative growth in all its metrics on a year-on-year basis. Its revenues dropped by 13.8% YoY to ₹369 crore, and profits were down by 27.7% YoY to ₹22.4 crore.

The revenue of Rajratan Global Wire grew by 25% YoY to ₹314 crore; however, its EBITDA margin was down by 14.2%, indicating poor profit-making ability.

Tata Investment Corporation showed a poor quarterly performance as revenues were down by 30.9% YoY, and EBITDA and margins were down significantly. The company declared a dividend of ₹3.4 per share.

Sunteck Realty was among the companies which showed excellent growth. Its revenues increased by 64.5% YoY to ₹3,390 crore, while its net profits grew by 26.5%. Yet, there was some margin erosion.

Key Corporate Developments

Aurobindo Pharma may remain in the limelight due to its announcement of a share buyback program worth ₹800 crore at a price of ₹1,475 per share, indicating a 6% premium to the current market price. A buyback plan usually indicates the confidence of the management in its business operations and boosts the stock price.

BEML bagged a contract worth ₹590 crore from the Ministry of Defence for the supply of Trawl Assemblies. The contract award is expected to add to the top line.

PNC Infratech was adjudged as the lowest bidder for an infrastructural contract worth ₹3,483 crore by NHAI. This contract award will help improve the company’s pipeline.

The stock of JSW Energy could come under pressure following the receipt of a demand of ₹1,447 crore for water charges by the Chhattisgarh government from its subsidiary.

L&T Finance made a fund-raising move by issuing ₹500 crore non-convertible debentures (NCDs) in the form of private placement, reflecting a strategy focused on financing.

The boards of SBFC Finance and Jayaswal Neco Industries are expected to convene for deliberation on fund-raising strategies, including debt issues and qualified institutional placements (QIP).

Hindustan Zinc is expected to deliberate upon the declaration of an interim dividend, which would be considered a must-watch stock for income-generating traders.

The acquisition of a 26% stake in TP Adarsh (subsidiary of Tata Power Renewable Energy) at ₹6 crore marks a strategic initiative taken by Tata Steel.

Investors will continue to keep an eye out on Aditya Birla Capital following the announcement that its board will meet on May 4 to make a fund-raising decision by issuing debt securities.

Conclusion

Stocks will likely be seen making moves based on how their earnings season ends up. IT stocks like HCL Technologies and Tata Elxsi should see some moves based on how well they have done, while Aurobindo Pharma and PNC Infratech might see some upside based on buybacks and orders. However, stocks will continue to see volatility based on fund raising and dividends.