In the preceding week, the Indian benchmark indices Nifty 50 and Sensex experienced a marginal gain of around 0.2 per cent. Sectoral indices such as BSE Power (3.3 per cent), BSE PSU (3.1 per cent) and BSE Auto (2.4 per cent) gained the most while BSE Teck (-2.1 per cent), and BSE IT (-1.5 per cent) were tepid during the week.
While many stocks moved up without being backed by any significant news flows or fundamentals, here are three stocks that were the top gainers driven by fundamental news within the BSE 500 index last week.
REC Ltd
The stock of REC Ltd, a state-run power sector Non-Banking Financial Company (NBFC), surged by 22 per cent over the past week, largely attributed to its robust Q4 performance.
The company specializes in financing projects within the power infrastructure sector, encompassing various facets such as generation, transmission, distribution, renewable energy, and emerging technologies like Electric Vehicles, Battery Storage, and Green Hydrogen across India.
During Q4FY24, the company’s revenue saw a y-o-y growth of around 24 per cent while the net profit increased by 33 per cent during the period on a y-o-y basis.
The stock trades at a trailing price to book of 2.53 times.
Supreme Industries
Supreme Industries’s share price jumped by 13 per cent, propelled by robust sales volume during the fourth quarter and its near-term expansion initiatives.
The company primarily operates in the design and manufacturing of plastic products, with 28 manufacturing facilities distributed across various segments including Plastics Piping Products, Industrial Products, Packaging Products, and Consumer Products.
During the March quarter, the company registered a growth of 33 per cent in sales volume of plastic goods, reaching 195,369 metric tons (MT), in comparison to 147,414 MT during the corresponding period in the previous year. The company reported a 16 YoY revenue growth while the net profit demonstrated a marginal increase of 2 per cent YoY. Considering FY24, the company achieved a 10 per cent YoY revenue growth, while the PAT grew by 29 per cent YoY. The company has outlined investment plans, earmarking a capital expenditure of ₹1,500 crore.
The stock trades at a trailing P/E of 59 times.
Cholamandalam Investment and Finance Co Ltd
The stock of Cholamandalam Investment and Finance Company Ltd (CIFCL) rose by around 12 per cent, as markets reacted positively to its earnings release.
The company offers a diverse range of products and financial services encompassing vehicle finance, home loans, SME loans, consumer and small enterprise loans, loan against property, insurance agency, home equity loans, secured business and personal loans, wealth management, stock broking, and mutual fund distribution, among others.
In Q4FY24, CIFCL reported a net income/PAT growth of 41/24 per cent YoY to ₹2,913 crore and ₹1,058 crore, respectively. The company’s disbursement marked an 18 per cent increase, primarily fueled by a surge in disbursements for loan against property and consumer and small enterprise loans, which expanded by 55 per cent and 40 per cent, respectively.
The stock trades at a trailing price to book of 2.81 times.