Birlasoft hits 52-week high & Today’s Market Summary

Key Drivers

• The sell-off in the Indian stock market was led by weakness in the banking sector.
• Investors were concerned about the rising interest rates and the impact it would have on the profitability of banks.
• There was also some profit-taking after the recent rally in the markets.

Birlasoft hits 52-week high

On July 27, Birlasoft's shares surged by 9 percent and reached a 52-week high at Rs 411.70 following the release of impressive quarterly financial results. The company's net profit exhibited significant growth of nearly 23 percent quarter-on-quarter, amounting to Rs 137.5 crore in comparison to Rs 112.2 crore from the previous quarter. Moreover, the revenue experienced a 3 percent rise, reaching Rs 1,262.7 crore, and in constant currency terms, revenue showed a sequential increase of 2.7 percent. Additionally, the company's operating margin expanded by 168 basis points to 15.3 percent compared to the previous quarter. As of 2:02 pm, the company's shares were trading 7.9 percent higher at Rs 408.95 on the BSE.

Zydus Lifesciences gains 5%

On July 27, Zydus Lifesciences witnessed a 5 percent increase in its shares, reaching a 52-week high of Rs 654, following the announcement of receiving final approval from the United States Food and Drug Administration (USFDA) for their plerixafor injection. The approved plerixafor injection, available in a 24 mg/1.2 mL (20 mg/mL) single-dose vial, is intended for patients with specific types of cancer, namely non-Hodgkin's lymphoma and multiple myeloma, to aid in the preparation for a stem-cell transplant. This regulatory approval marks a significant milestone for the pharma company in advancing its treatment options for these medical conditions in the US market.

Tech Mahindra drops over 4% after Q1

On July 27, Tech Mahindra's shares experienced a decline of over 4 percent during early trade on the BSE, following the company's Q1FY24 earnings report. The stock reached a low of Rs 1097.25 per share and recorded a continuous downward trend for five consecutive sessions, resulting in a total decrease of 12.4 percent. Several brokerages downgraded Tech Mahindra Ltd and revised its target price downward in response to the weak financial performance in the June quarter. Kotak Institutional Equities downgraded the stock from add to reduce and reduced the target price to Rs 1,100 per share from Rs 1,143, while Nuvama Research also downgraded the stock to reduce and lowered the target price to Rs 1,000 per share from Rs 1,140.

Bajaj Finserv Q1 net profit up 48%

On July 27, Bajaj Finserv announced an impressive 48.4 percent year-on-year growth in net profit, amounting to Rs 1,942.6 crore for the quarter ending June 2023, compared to Rs 1,309 crore in the corresponding period the previous year. The company's total income also experienced significant growth, rising by 46.5 percent year-on-year to Rs 23,280 crore, as opposed to Rs 15,888.3 crore in the same period last year. This remarkable performance was attributed to Bajaj Finance, a subsidiary of Bajaj Finserv, which achieved its highest-ever quarterly increase in customer franchise, adding 3.84 million customers, and its highest-ever new loans booked, totaling 9.94 million in Q1 FY24. Additionally, Bajaj Finance's consolidated profit after tax for the June quarter reached Rs 3,437 crore, a notable 32 percent YoY increase, which also contributed to Bajaj Finserv's positive financial results.

Conclusion

The Indian stock market experienced a mixed trading session, with the Nifty 50 and the Sensex closing in negative territory due to weakness in the banking sector and concerns about rising interest rates impacting banks' profitability. However, amidst this market performance, there were notable individual successes, with Birlasoft and Zydus Lifesciences both hitting 52-week highs on the back of positive developments in their respective businesses. Birlasoft reported strong quarterly numbers, showcasing significant growth in net profit and revenue, while Zydus Lifesciences received approval from the USFDA for its plerixafor injection, paving the way for improved medical treatments. On the other hand, Tech Mahindra faced a decline in its shares after releasing its Q1FY24 earnings report, prompting downgrades from several brokerages. Meanwhile, Bajaj Finserv displayed impressive results with a substantial increase in net profit and total income, driven by the outstanding performance of its subsidiary, Bajaj Finance. As the market continues to navigate various factors, investors and analysts will closely monitor the companies' future developments and earnings reports to make informed decisions.

Source - Moneycontrol