The Indian stock market experienced a volatile day of trading on Monday, with the Nifty50 and Sensex both experiencing significant ups and downs, tracking weak global cues and a sharp decline in the Indian Rupee against the US dollar.
The benchmark Sensex fell 334 points, or 0.55 percent, to end at 60,506.90, while the broader Nifty dropped 89.45 points, or 0.50 percent, to close at 17,764.60, as 34 of its 50 stocks finished lower.
Six Nifty 500 stocks, however, achieved new 52-week highs on Monday, driven by their strong Q3FY23 earnings.
Shares of Supreme Industries, the country's leading plastic processing firm, scaled to a new one-year high of ₹2,708 apiece on February 6 on the back of good Q3 numbers. The company reported a 156% QoQ jump in its consolidated net profit of ₹210 crore in Q3 FY23. It reported revenue growth of 19% YoY to ₹2,311 crore in October-December quarter, led by 51% volume growth.
The stock gained steam after reaching a 52-week low of ₹1,666 in June last year, and it has since gained nearly 60%. Following the December quarter's earnings, ICICI Direct Research retained its "buy" call on the stock with a target price of ₹2,880 apiece.
The government’s flagship ‘Nal Se Jal’ scheme (with an outlay of ₹3 lakh crore over the next five years) is a big booster for the domestic plastic piping industry over the long term, said ICICI Direct.
The other stock on the list was ITC. On Monday, the stock soared 2% to mark a fresh all-time high of Rs. 388.20, fueled by December quarter (Q3FY23) earnings.
On February 03, ITC reported a 23.09% YoY rise in its consolidated net profit of ₹5,070.09 crore in Q3FY23 as compared to a net profit of ₹4,118.80 crore in the same quarter last year.
The company's revenue from operations rose 3.56 percent YoY to ₹19,020.65 crore in Q3 FY23, compared with ₹18,365.80 crore in the year-ago quarter.
In CY22, the stock gained 61.46%, moving from ₹218 apiece to ₹352, and it extended the same magnitude into 2023 and has so far rallied 12.08%.
Despite such strong gains, brokerage firm Phillip Capital has maintained its "buy" call on the stock with a target price of Rs. 475 per share. Similarly, Motilal Oswal Financial Services also maintained a "buy" call on the stock with a target price of Rs. 450.
Likewise, brokerage firm Nirmal Bang Institutional Equities has upgraded the stock of ITC to a "buy" and raised the target price to Rs. 465 from Rs. 385 earlier.
M&M Financial Services was another stock that surged after reporting December quarter earnings. On Monday, the stock jumped 10.34% to set a new 52-week high of ₹268.80 apiece. In the current year so far, the stock has yielded a return of 14%.
The company on February 03, posted a 36% QoQ jump in its consolidated net profit of ₹664 crore. It had posted a net profit of ₹992 crore in the corresponding quarter of last year. The revenue from operations during the quarter came in at ₹3,324 crore, a growth of 11.76% YoY.
On February 06, shares of KPIT Tech climbed 5.3% to a 52-week high of ₹819 apiece. The company is a small-cap IT stock with a market cap of ₹21,454 crore. It is a global technology firm specialising in providing product engineering solutions and services to the automobile and mobility sectors.
In the last six months, the stock delivered a return of 46%, outperforming the Nifty Index, which produced a return of 1.33% during the same period.
For the December-ending quarter, the company posted a net profit of ₹104 crore, an increase of 48.57% from ₹70 crore in Q3 FY22. Total income rose to ₹917 crore in Q3FY23 as against ₹622 crore in a similar quarter last year.
Meanwhile, maintaining their bull run, shares of Zydus Lifesciences have reached a fresh 52-week high of ₹479.2 apiece in today's trade after gaining 8.17% in the last trading day.
The strong rally in the stock was ascribed to the company's December quarter earnings. In Q3 FY23, the company reported a 24.5 percent rise in net profit to Rs. 622.90 crore, driven by strong sales in its key domestic and U.S. markets.
The company had posted a consolidated net profit of Rs. 500.4 crore in the same period last fiscal. The consolidated total revenue from operations during the quarter under review stood at Rs. 4,362.3 crore, as against Rs. 3,639.8 crore in the year-ago period.
Similarly, shares of Carborundum Universal rose 2.84% to record a new one-year high of ₹1,019 apiece on the previous day following the December quarter earnings.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
