On the strength of falling commodity prices, sliding crude oil prices, and FPI inflows, the Indian equity markets, both the Sensex and the Nifty, has increased by over 7% in the previous month. FPIs started to become net buyers for the first time in July, after nine straight months of massive outflows, and they kept doing so in August.
According to depositories' data, FPIs invested a net amount of ₹44,481 crore in Indian equities between August 01 and 19. This is the highest investment made by them so far in the current year, PTI reported.
According to the data from Trendlyne, 32 stocks out of 50 stocks in Nifty50, have reported positive net profit growth in Q1FY23, 16 ended with negative growth, and the remaining two posted neutral profit growth. Out of 32 stocks 09 stocks in the Nifty50 that have seen their net profit increase between 100-3900%.
Titan
Titan stock is up by a considerable 8% over the past month. Given the company's impressive performance. Titan, a Tata group firm, posted its second-best quarterly revenues in Q1 FY23 on the back of strong festive demand, which came after a gap of two COVID-disrupted periods of Q1FY21 and Q1FY22. The company also recorded one of the highest net profits.
It reported a 3,825 percent increase in its consolidated net profit of ₹785 crore for the first quarter ended June 30, compared to a profit of ₹20 crore in the same period last year.
Total income for the quarter increased by 169.59% year on year to ₹9,487 crore, compared to ₹3,519 crore in the same quarter last year. The company's revenue from its jewelry business increased by 208 percent to ₹7,600 crore, up from ₹2,467 crore in the same quarter last year.
The stock has an ROE of 24% in the March 2022 quarter, which is way ahead when compared to the industry average of 11%.
Brokerages were also extremely impressed by Titan's results and retained their bullish stance on the stock. Domestic brokerage firm Prabhudas Lilladher raised the target price for the stock to ₹2,607 from ₹2,520 earlier, post Q1 results.
ICICI Securities also maintained its 'buy' call on the stock with a target price of ₹2,800, indicating an upside of 15 percent from the latest closing price.
However, at its current level, the stock is trading at a discount of 14% from its 52-week high of ₹2,768, which it previously touched on March 21, 2022.
| Scrip Name | % Net Profit QTR Growth YOY |
| Titan | 3,825 |
| Bharti Airtel | 467.4 |
| M&M | 418 |
| Dr. Reddy's Labs | 212.8 |
| Coal India | 178.7 |
| Bajaj Finance | 159 |
| Eicher Motors | 157.5 |
| Hero MotoCorp | 130.5 |
| Maruti Suzuki | 118 |
| Source: Trendlyne |
Bharti Airtel
The net profit of Bharti Airtel zoomed 467.49% YoY in Q1 to ₹1,606.9 crore compared to a profit of ₹283.5 crore in the same period last year.
Airtel's consolidated revenue came in at ₹32,996.8 crore, jumping 21 percent YoY over ₹27,063.4 crore in the April-June quarter last year. EBIDTA was at Rs. 16,529.4 crores, a growth of 17.81% over the same quarter of the previous year.
The tariff hikes resulted in an increase in ARPU from ₹146 in Q1FY22 to ₹183 in the June quarter. The ARPU of rivals Reliance Jio and Vodafone Idea for the same period was ₹175.7 and ₹128, respectively.
Airtel began raising tariff charges in November 2021. It says the higher tariffs are required for a reasonable return on capital, which allows for a financially healthy business model.
Airtel plans to reach its target of Rs. 300 ARPU in 5 years. It expects the next tariff hike, which is pending this year, to drive the company's APRU to the ₹200 mark.
Mahindra and Mahindra
Shares of M&M have rallied 40% in the last three month. The stock began to rise after the company reported a 109 percent increase in its consolidated profit after tax to ₹2,237 crore for the quarter ended March 31, 2022.
On May 31, 2022, it crossed the ₹1,000 mark for the first time and reached a price of ₹1,048.8. For the quarter ending June, the company reported a consolidated profit after tax of ₹2,195.05 crore, up 418 percent driven by the strong performance of its automotive and farm sector.
Revenue from operations increased to ₹28,628.38 crore in the first quarter of this fiscal, as compared to ₹19,368.02 crore in the corresponding period a year ago.
Dr Reddy's Laboratories
Dr Reddy's Laboratories reported a 212.89 percent YoY increase in consolidated net profit at ₹1,189 crore in the first quarter of the fiscal year 2022-23 (Q1FY23), compared to ₹380.4 crore in the same quarter last year. The Q1 PAT skyrocketed 1,225.77% from ₹97 crore in the preceding quarter.
Total revenue increased by nearly 20.44% to ₹6,086.8 crore in the June-end quarter of FY23, compared to ₹5,053 crore in the same period last year.
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