BEL Q1 Preview & more on today’s market

Shree Cement shares climb on 84% surge

On July 26, the shares of Shree Cement Ltd experienced a 3 percent increase following the company's announcement of a remarkable 84 percent surge in net profit for the June quarter. During this period, the company achieved a standalone net profit of Rs 581.1 crore, a significant rise compared to Rs 316 crore recorded the previous year. Additionally, the revenue from operations witnessed a notable increase of 19 percent, reaching Rs 4,999.1 crore. Despite the positive financial results, the operating margin for the quarter contracted slightly to 18.6 percent from 19.5 percent in the corresponding period last year. The market sentiment for the stock was further bolstered by the company's capacity addition plans.

BEL Q1 Preview

In the quarter ended June 2023, Bharat Electronics Ltd (BEL), a state-owned aerospace and defence electronics manufacturer, is anticipated to achieve favorable revenue growth, primarily attributed to order wins and efficient execution. Based on an average of three brokerage firms' estimates, BEL's standalone revenue is projected to experience a year-on-year growth of 13 percent, reaching Rs 3,506.3 crore. However, the growth in net profit is expected to remain relatively subdued, with a modest increase of only three percent compared to the previous year, amounting to Rs 442.4 crore.

Ceat shares trade 5% higher

On July 26, around 9:20 am, Ceat Limited witnessed a significant increase in its shares, rising by 5 percent and reaching a trading value of Rs 2,598 on the NSE. This surge in stock price occurred alongside a notable trading volume of 5 lakh shares. The impressive performance was backed by Ceat's outstanding financial results for the first quarter, wherein the company reported a remarkable 15-fold surge in consolidated net profit, amounting to Rs 144 crore, compared to Rs 9 crore recorded in the same period last year. Additionally, Ceat's consolidated revenue from operations for the first quarter also displayed growth, reaching Rs 2,935.17 crore, up from Rs 2,818.38 crore reported during the corresponding period the previous year.

Cyient 46% rise in Q1 net profit

Cyient released its fiscal 2023-24 (Q1FY24) results, revealing a significant 45 percent increase in consolidated net profit, which reached ₹168.10 crore compared to ₹116.10 crore in the same period the previous year. However, the engineering and IT services company narrowly missed analysts' expectations as the surge in expenses offset the positive impact of a robust order pipeline and the recovery of demand in certain sectors. Despite the strong performance, the company's financial results were affected by higher costs during the quarter.

Conclusion

In conclusion, the Indian stock market closed on a positive note with all major indices showing gains. Positive global cues, along with a surge in banking and financial stocks, contributed to the market's upward movement. Shree Cement Ltd and Ceat Limited were among the companies that stood out with impressive financial results for the June quarter. Shree Cement reported an 84 percent increase in net profit and significant revenue growth, while Ceat saw a 15-fold surge in consolidated net profit and strong revenue growth. On the other hand, Bharat Electronics Ltd (BEL) is expected to achieve decent revenue growth in the same quarter, driven by order wins and efficient execution, although the net profit growth is predicted to be more subdued. As for Cyient, the company performed well with a 46 percent rise in Q1 net profit, despite falling slightly short of analyst expectations due to increased expenses. Overall, the market displayed positive momentum and investors remained optimistic about the performance of various sectors and companies.

Source - Moneycontrol