Stocks to Watch Today: L&T, M&M, Hero MotoCorp, BHEL, Delhivery in Focus Amid Earnings & Key Developments

The Indian equity market is set to witness company-specific trading activity today, with many companies scheduled to report their quarterly results, while some other companies will be responding to the results announced recently.

Earnings in Focus

With an eventful earnings week lined up, traders will remain busy with earnings announcements from Larsen & Toubro, Mahindra & Mahindra, and Hero MotoCorp, among others, of their fourth-quarter earnings. Traders will focus on the order flow and margins at Larsen & Toubro, whereas demand prospects and volumes would matter to investors in automakers Mahindra & Mahindra and Hero MotoCorp.

Along with the above-mentioned stocks, Coforge, United Breweries, Ajanta Pharma, Aavas Financiers, Dalmia Bharat Sugar, Voltamp Transformers, and Poonawalla Fincorp will also release their results today.

Strong Q4 Performances Drive Momentum

There are several companies which have reported earnings recently and may be in focus given their strong financial results.

Bharat Heavy Electricals Ltd has shown a stellar quarter performance, with a profit up 156% YoY and revenues increasing 37%. The company was boosted by its increased EBITDA margins.

Aditya Birla Capital has reported solid quarterly earnings, with profits growing 30% YoY and revenue growth as well.

IIFL Finance has reported very good Q1 results, with profits growing 148% YoY, and total income up 51%. It is mainly due to robust lending activities performed by IIFL.

Godrej Properties and Sobha are two property development companies showing very positive performance for this quarter. Godrej Properties has posted profits up 134% YoY and revenue doubling. Sobha has reported outstanding 481% profit growth and 60% revenue growth in Q1.

Tata Technologies showed steady revenues with an increase of 22% YoY. Ambuja Cements has reported an increase in revenues by 10%.

Key Corporate Developments

Aside from earnings, there will be other stocks that would receive attention because of company developments.

The stock KPR Mill will be among those under scrutiny after promoter disclosure clarified that no encumbrance exists with regards to a substantial block of shares, which is considered positive for governance reasons.

There will be another development for Inox Green Energy Services after the company announced that its scheme of arrangement with Inox Renewable Solutions became effective. This strategic move might help improve synergy within the firm.

Delhivery, on the other hand, would likely see some activity after announcing employee stock option plan grants as an effort to retain talent. However, this strategy might create a small dilution effect.

Lastly, Standard Surfactants revealed a fire accident involving its Mandideep facility. There were no injuries but the affected factory might not operate in full capacity for 2-3 months since assets were insured.

Market Outlook

Given the high volume of reporting on earnings and several events that will affect individual stocks, today’s trading may be more influenced by individual stocks’ performance than by the overall market trend. Market players will pay attention to company executives’ statements, margins, and projections regarding future earnings growth.