Q4 Preview: These companies are likely to post 50-300% rise in net profit in March quarter

Axis Bank: According to the brokerage, the private sector lender is likely to report 51.2 percent growth in its net profit at ₹4,050 crore. It has a buy call on the stock with a target price of ₹930 per share, indicating an upside of 19 percent. Credit costs are likely to remain steady, it said, adding that slippages are a key monitorable. Margins to remain stable at 3.5 percent, noted MOSL, adding that business growth to see a healthy traction.

IndusInd Bank: The brokerage forecasts IndusInd Bank's net profit rising 51.5 percent to ₹1,400 crore. It has a buy call on the stock with a target price at ₹1,300, indicating a 32 percent upside. Asset quality to remain under watch, led by higher stress on microfinance business, noted the brokerage, adding that restructuring book to be the key. Margin to remain stable at 4.1 percent, said MOSL. Credit costs to stay elevated as the focus remains on maintaining higher provision coverage ratio, stated the brokerage.

State Bank of India: MOSL estimates SBI's net profit rising 66 percent to ₹10,700 crore in the March quarter. It has a 'buy' call on the stock with a target at ₹675 per share, indicating an upside of 32 percent. Credit costs to remain modest as well as asset quality will remain steady, said MOSL. It added that the loan growth will see a healthy traction on a QoQ basis.

Bajaj Finance: The brokerage expects the NBFC's net profit to rose 81.3 percent to ₹2442 crore in the March quarter. It has abuy call on the stock with a target at ₹9,080, indicting a 21 percent upside. MOSL noted that AUM growth was strong at 29 percent YoY and expects 27 percent QoQ decline in credit costs in Q4FY22. Reduction in liquidity to ₹10,000 crore and no significant interest income reversals should aid margin, it added.

Tata Consumer: The brokerage expects the firm to post 91.9 percent growth in its net profit at ₹217.5 crore in the March quarter. It has a 'buy call on the stock with a target price of ₹905 per share, indicating an upside of ₹15 percent. It expects revenue for the India Foods business to grow by 18 percent YoY and 2 percent volume growth in the India branded Tea business. The impact of lower tea prices is a key monitorable, it added.

Cipla: The brokerage expects the pharma major to report a 57.6 percent rise in its net profit at ₹651.5 crore in Q4FY22. It has a neutral call on the stock and a target of ₹980 per share, indicating a downside of 5 percent. It ecpects the US sales to grow 17 percent YoY to $162 million driven by new launches and market share gains in gAlbuterol. Watch out for an outlook on limited-competition inhaler pipeline in the US over the medium term, it added.

Dr Reddy's: MOSL sees profit of this firm rising 63 percent to ₹767 crore in the March quarter. The brokerage has a 'buy' call on the stock with a target price of ₹5,170 per share, indicating an upside of 20 percent. It expects the US sales to grow 15 percent YoY to $270 million, driven by ramp-up in key complex products. India revenue is likely grow 35 percent YoY on better traction in the Chronic segment post-COVID and low base of past year, it added.

Hindalco: The brokerage expects Hindalco to post a 100.3 percent rise in its net profit at ₹2,131 crore in the March quarter. It has a 'buy' call on the stock with a target at ₹745, indicating an upside of 27 percent. MOSL expects India Aluminum to report EBITDA/tonne of $1,580/t while Copper business should report $423/t. Details on the capex plans and execution will be the key to watch out for, it added.

ONGC: The brokerage expects ONGC to post a 157.5 percent rise in its net profit at ₹12,260 crore in Q4FY22. It has a 'buy' call on the stock with a target price of ₹240, indicating an upside of 43 percent. MOSL expects net realizations to grow by 76 percent YoY led by an increase in crude oil prices. Gas production from the KG Basin remains crucial and any further delays could dampen near-term sentiment, it added. Outlook for various field developments remain key for volume growth going forward, noted the brokerage.

Bharti Airtel: The brokerage expects this telecom major to post a 304.3 percent rise in its net profit at ₹1,300 crore. The brokerage has a buy call on the stock with a target at ₹910 per share, indicating a 19 percent upside. MOSL expects 9 percent QoQ ARPU growth in the March quarter aided by the tariff hike. It sees India mobile subscribers to remain flattish sequentially.