Astral Q1 results & More On Today’s Market

Muthoot Finance plunges 6%

Muthoot Finance shares dropped 6 percent in the morning trade on August 14 after broking house Morgan Stanley downgraded the stock citing risks to growth and yields as competition heats up.

At 1.24 pm, the stock was trading at Rs 1,279.75 on the National Stock Exchange, down 5.19 percent from the previous close.

The gold loan financing company reported standalone profit of Rs 975 crore for the first quarter of the current year, growing 22 percent over the year-ago period, the company said in an August 11 filing.

Total income grew 21 percent year on year (YoY) to Rs 3,026 crore during the same period. The company also got the board’s approval for an infusion of Rs 400 crore in subsidiary Muthoot Money.

JK Cement slumps 5% on 30% drop in Q1 net profit

JK Cement shares were down 5 percent in the morning trade on August 14 after the company reported a 29.5 percent year-on-year (YoY) decline in the consolidated net profit for the June quarter at Rs 114.7 crore.

At 12.45 pm, JK Cement stock was quoting at Rs 3,136.30, down 3.56 percent or Rs 115.80.

In year-to-date terms, the stock has grown 6.11 percent and has been witnessing consolidation since May 31. The stock has a trailing PE of 63.45x, the highest among its cement-making peers.

In its results for Q1FY24 announced on August 12, the company reported a 21.6 percent YoY increase in its revenue from operations at Rs 2,762.6 crore. Earnings before interest taxes depreciation and ammortisation (EBITDA) for the quarter were up merely 0.3 percent at Rs 407.8 crore. Meanwhile, the EBITDA margins for the quarter under review contracted by 310 basis points to 14.8 percent.

Astral Q1 results

Astral’s shares were down 0.77 percent, trading at Rs 1959 at 11:55 am on August 14.

Incred Equities downgraded the stock to ‘Hold’ from ‘Buy’ while raising the target price to Rs 2002 from Rs 1978. The analyst noted that there is a “need to enter the stock at a lower price” and explained the target price raise to strong demand complemented by capacity expansion. Astral plans to add 185 kt plumbing product’s capacity expansion over FY24-26. In management guidance, it keeps expectations at 15 percent CAGR for revenue for the next 3 years.

The consolidated EBITDA missed the estimates by 5-7.5 percent as the company registered lower margins in its business segments. “The plumbing division’s inventory loss, lower fixed-cost absorption for bathware and sub-par adhesive margin in the global business (UK/US) led to a lower consolidated margin vs. our estimate” said the brokerage.

Antique Stock Broking maintained their ‘Hold’ rating and revised the target price to Rs 1930 from Rs 1550 as the company registered good volume growth in agriculture and drainage segments. The brokerage attributed the lower margins to mixed deterioration.

Jindal Steel and Power shares fall 5%

Shares of Jindal Steel and Power Ltd slipped 5 percent to Rs 662.75 at 11:07 am on August 14, after the company’s June quarter net profit declined year-on-year (YoY).

The company’s quarterly net profit came in at Rs 1,686.94 crore in June 2023 down 14.4 percent. The company had reported a profit of Rs 1,970.13 crore in the year-ago period.

The company's consolidated revenue from operations dropped 3.5 percent on year to Rs 12,588.34 crore during the quarter ended June from Rs 13,045.41 crore in Q1FY23. Total income dropped to Rs 12,643.63 crore in the first quarter. It stood at Rs 13,069.17 crore in the year-ago period.

On the operating front, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 2,704 crore in June 2023 down 17 percent year on year. Its margin nosedived 550 basis points to 20.9 per cent as compared to 26.4 per cent in the same quarter last year.

Conclusion

In today's market update, the Indian stock market closed lower, with the Sensex and Nifty declining by 0.49% and 0.08% respectively, while the Bank Nifty fell by 0.31%. Several market news headlines captured attention, including Supreme Industries' inclusion in the MSCI Global Standard Index and a significant collaboration between HCL Technologies and Verizon Business. Adani Group stocks faced pressure after Deloitte's exit, and Surya Roshni shares dropped despite a substantial order win. Notably, Muthoot Finance shares plunged 6% due to a downgrade by Morgan Stanley citing growth and yield risks, while JK Cement's shares slumped 5% due to a 30% drop in Q1 net profit. Astral reported its Q1 results with shares down 0.77%, impacted by lower margins, and Jindal Steel and Power shares fell 5% after the company's Q1 net profit decline. Amidst these market developments, the overall sentiment reflects a mixed landscape with companies grappling with various challenges affecting their performance and stock values.

Source - Moneycontrol