TVS zooms 42% in Q1 & more on today’s market

TVS zooms 42% in Q1

TVS Motor Limited has received positive outlook from various brokerage firms following a remarkable 42 percent increase in net profit during the first quarter of FY24. Jefferies, one such firm, anticipates the company to benefit significantly from the revival in demand both in the domestic and export markets. They also predict a promising potential for margin expansion, given the company's improving franchise. Their analysts foresee a robust 39 percent compound annual growth rate (CAGR) in earnings per share (EPS) for FY23-25. Meanwhile, Nuvama Institutional Equities highlights the company's market share growth from 14 percent in FY18 to 16 percent in FY23, thanks to the success of several product launches such as Jupiter, Zest, Ntorq, iQube, Radeon, and Raider. With a focus on scooters and premium motorcycles, they expect the market share to reach 17 percent by FY25, and anticipate an impressive performance in overseas markets, driven by new products and improved penetration.

L&T wins orders but stock trades lower ahead of Q1 earnings

On July 25, just before its scheduled earnings announcement for the first quarter of FY24, Larsen & Toubro (L&T) experienced a slight dip in early trade, despite its power transmission and distribution business securing orders both in India and overseas. As of 10:13 am, L&T's stock was trading at Rs 2,580.50 on the BSE, marking a marginal decrease of Rs 24.85 or 0.95 percent. In the domestic market, the T&D business received an order to execute SCADA/DMS and related IT infrastructure for urban area power distribution systems in central Gujarat. The project's scope includes various components such as information storage and retrieval, front-end processing, outage management, network management, dispatcher training simulation, local data monitoring, and security systems as required.

Chennai Petroleum tanks 10%

On July 25, the share price of Chennai Petroleum Corporation plummeted by 10 percent following a disappointing earnings performance. The company's consolidated revenue experienced a substantial decline of 34 percent, amounting to Rs 17,985.67 crore in the June quarter, compared to Rs 27,449.52 crore reported in the same period last year. Furthermore, the net profit of the company saw a drastic on-year plunge of 76 percent, reaching Rs 556.5 crore, and its EBITDA (earnings before interest tax depreciation and amortisation) also dropped by 72 percent to Rs 949.87 crore. Consequently, the operating margin contracted significantly to 5.3 percent from 12.4 percent recorded a year ago.

Mahindra Logistics declines 5%

On July 25, Mahindra Logistics Ltd witnessed a decline of over 5 percent in its shares, falling to Rs 378 at 12:29 pm, primarily due to the company's disappointing financial performance in the first quarter of FY24. The company's earnings were adversely affected by higher expenses and subdued demand. In the quarter ended June 30, 2023, Mahindra Logistics reported a net loss of Rs 8.30 crore, a significant contrast to the net profit of Rs 13.64 crore recorded in the same period a year ago. While the revenue from operations showed a modest increase of 7.78 percent on-year, reaching Rs 1,293.22 crore in Q1FY24 from Rs 1,199.90 crore, the total expenses surged by 9.69 percent YoY, amounting to Rs 1,298.83 crore.

Conclusion

In today's market update, Indian stock markets closed mixed, with the Nifty 50 index ending slightly higher, while the Sensex closed in the red. TVS Motor Limited stood out with an impressive 42 percent increase in net profit during the first quarter of FY24, gaining positive outlook from various brokerage firms. On the other hand, Larsen & Toubro (L&T) secured orders in its power transmission and distribution business, but its stock experienced a marginal dip ahead of Q1 earnings announcement. Chennai Petroleum Corporation faced a significant setback as its share price tanked 10 percent due to a disappointing earnings performance with declining revenue and net profit. Mahindra Logistics Ltd also saw a decline of over 5 percent in its shares following a loss in the first quarter of FY24, impacted by higher expenses and sluggish demand. These contrasting performances reflect the dynamic and ever-changing nature of the stock market, with companies experiencing both gains and setbacks in response to various economic factors and market conditions.

Source - Moneycontrol