Five Nifty50 stocks outperformed the benchmark by 10% in a month

The Indian equity markets closed higher for a sixth straight session. The Nifty50 ended with a gain of 109 points, or 0.70%, at 16,714.30, while the Sensex closed at 56,072.23, up 390 points, or 0.70%.

The Sensex and Nifty50 were up 4.97% and 4.90%, respectively, for the week. At the same time, BSE midcap and small-cap indices finished the week with a 4.40% gain each.

In the last six days of gains, the market capitalisation of BSE-listed firms has shot up to ₹261.09 crore from ₹250.66 lakh crore on July 14, making investors richer by ₹10.43 lakh crore.

Five Nifty50 stocks outperformed Nifty returns in the last month by almost 10%.

IndusInd Bank

IndusInd Bank, India's 5th largest private sector bank, posted an impressive 61 per cent year-on-year surge in net profit at ₹1,631 crore for the first quarter of the financial year as against ₹1,016 crore in the corresponding quarter of the preceding fiscal.

The net interest margin for the June ending quarter was 4.21 per cent, compared to 4.06 per cent in the previous year's corresponding quarter. The bank's gross non-performing assets fell by 4 per cent from a year ago to ₹5,932.90 crore.

Deposits grew by 13% YoY to ₹3,02,719 crore, from ₹2,67,233 crore. CASA grew by 16% YoY while savings deposits grew by 19% YoY to ₹95,243 crore from ₹79,928 crore.

In the last one week, IndusInd bank shares surged from ₹815 to ₹942.45, generating a return of over 15.63 per cent. The stock returned 21.19 per cent in the last month, which is 14.28 per cent higher than the Nifty50, which returned 6.91 per cent in the same period.

After a solid Q1 result, several brokerages turned bullish on the company. Brokerage firm Motilal Oswal Financial Services has maintained a 'buy' call on the stock with a target price of ₹1,300.

On the other hand, IIFL Securities maintained a 'buy' call on the stock with a target price of ₹1120, citing strong quarterly earnings, with acceleration in loan growth, strong fee income, treasury performance, and improving asset quality from the standard book being the key positives.

Further, Prabhudas Lilladher has also maintained a 'buy' call on the stock with a target price of ₹1,300. It said it expects a loan CAGR of about 16% over FY22-24E with declining provision costs while deposit accretion remains the key monitorable.

Meanwhile, due to high sell-off pressure from foreign portfolio investors, the stock slipped 31.98% from its 52-week high of Rs. 1242.

Mahindra and Mahindra

M&M emerged as the second top gainer in the Nifty50 in the last month with 20.05% returns on hopes of a strong demand outlook. M&M has outperformed the market in the last month, gaining 13.14% more than the Nifty50, which gained 6.91 per cent. The stock of the passenger car and utility vehicle maker crossed the ₹1000 mark for the first time on May 31, 2022.

The stock has increased by 75.98% since its 52-week low of ₹671.2 on March 8, 2022. The company's Return on Equity (ROE) in FY22 jumped to 12.66 per cent, as against 0.77% in FY21. The Net profit margin stands at 8.59% in Mar-22 compared to 0.59% in Mar-21.

According to media reports, M&M and British International Investment have recently inked a pact to invest ₹1,925 crore each in a wholly-owned subsidiary of the homegrown auto major.

The company delivered strong numbers in the March 2022 quarter. It reported a 427 per cent increase in its standalone profit after tax to ₹1,292 crore for the quarter ended March 31, 2022. It had posted a profit of ₹245 crore for the year-ago period.

The revenue for the quarter stood at ₹17,124 crore, a 28.21 per cent jump over the corresponding quarter last year. The company reported revenue of ₹13,356 crore in Q4FY21.

The company has announced a ₹15,300 crore capital expenditure in the auto, farm equipment, and electric vehicle (EV) businesses between 2022 and 2024. which it has already pumped in ₹3,200 crore in FY22, while the remaining ₹12,100 crore will be done during FY23 and FY24. This is significantly higher than the Capex done by the company in the recent past.

Hindustan Unilever

With a rally of over 19.89 per cent, HUL emerged as the third top gainer in the Nifty50.

In the last one month, the stock has risen from ₹2,202 to ₹2,640, representing a return of 19.89 per cent, while the Nifty50 has risen 6.91 per cent. Given that HUL outperformed the index by 12.98 per cent.

Since its Q1 result announcement on July 19, the stock has gone from ₹2,567 to ₹2,640 levels, delivering a return of over 2.84%. At current levels, the stock is trading 38.87% above its 52-week low of ₹1,901.6 and 8.29% below its 52-week high of ₹2,859.3.

The market capitalization of HUL stands at ₹6,20,433 crore. It has a P/E of 66.86 and an EPS of Rs. 39.30.

Despite margin pressure, HUL beats street estimates with a 13.9 per cent YoY jump in its consolidated net profit at ₹2,391 for the June ending quarter as against ₹2,100 crore in the same period last year.

The revenue from operations rose 20.26 per cent to ₹14,757 crore, as against ₹12,260 crore in the corresponding quarter of the preceding fiscal.

However, growing costs impacted its margins. During the quarter, its raw material costs increased 32.3 per cent year on year to ₹4,868 crore, up from ₹3,680 crore.

HUL's total expenses increased to ₹11,222 crore, or 21.01 higher as against ₹9,273 over last year's same quarter.

Brokerages raised target prices on HUL post Q1. Domestic brokerage firm Edelweiss Securities has maintained a ‘buy’ call on Hindustan Unilever and raised the target price to ₹3,050/share from ₹2,785/share, implying an upside potential of 15.53% from the previous closing price.

Larsen and toubro Ltd

Shares of Larsen and Toubro Ltd. closed at Rs. 1,767.75 (up 0.15%) on the BSE in Friday's trade. During the day, the stock moved between Rs. 1,779.50 and Rs. 1,752.55. In the last month, the stock has risen from ₹1,478.85 to ₹1,767.75, representing a return of 19.55 per cent, which is 12.64% greater than the Nifty50, which returned 6.91%.

L&T's consolidated net profit increased by 9.96 per cent year on year (YoY) to ₹3,620.7 crore in the fourth quarter ended March 31, 2022. In the corresponding quarter last year, the company posted a net profit of ₹3,292.8. Revenue from operations increased by 8.65% year on year to ₹53,366.3 crore, from ₹49,116.2 crore in the previous quarter.

ICICI Direct has a "buy" call on Larsen & Toubro with a target price of ₹1,930, in its research report dated 13 May 2022.

Eicher motors

Shares of Eicher Motors hit a fresh 52-week high at ₹3,179 on the BSE in Friday's trade. The scrip hit a high of ₹3,179 and a low of ₹3,077 during the session. At present, the stock is trading 45.75% above its 52-week low, recorded on March 08, 2022.

In the last one month, the stock surpassed the Nifty50 returns by gaining 11.30%. The stock gained 16.08% in the last six months to ₹3,147, up from ₹2,711. In the last one year, the stock has returned 22.95 per cent to shareholders.

Total sales of Eicher motors soared 43.43% to 61,407 units in June 2022 as against 43,048 units sold in the same period last year, Business Standard reported. Motorcycle sales in the international business jumped 54% to 11,142 units in June 2022 from 7,233 units sold in June 2021.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.