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During last week, bellweather indices Sensex and Nifty gained nearly 2.37 per cent and 2.32 per cent respectively. This was driven by FII inflows and dovish Fed monetary policy outcome.. Nearly all sectoral indices ended green during the week while the best performing were BSE IT (7 per cent), BSE Teck (6 per cent), BSE PSU (5 per cent) and BSE Metals (5 per cent).
During the week, many stocks moved up without being backed by any significant news-flows or fundamentals. However, Chalet Hotels (16 per cent) , Mastek (15 per cent) and JM Financial (15 per cent) were the top gainers within the BSE 500 index last week backed by fundamental news.
Chalet Hotels
The stock of Chalet Hotels surged 16 per cent during the last week driven by credit rating upgrade and target price increase by brokerage house.
The company is engaged in the business of developing and managing hotels across Mumbai, Hyderabad, Bengaluru, Lonavala and Pune.
Last week, India Ratings upgraded the credit rating of the company from BBB+ to A- driven by improvement in profitability and credit metrics. Further, the brokerage house ICICI Securities too revised its price target from ₹652 to ₹715 driven by growth triggers.
The company reported around 25 per cent growth in its revenue during Q2FY24 backed by higher occupancy in its hotels. Further, as per the brokerage house, while industry peers are focusing on the asset light expansion route, Chalet has chosen to grow its hotel room and office rental portfolio over FY23-27E through the ownership route (mix of existing project expansion and long-term leases).
The stock is currently trading at a trailing P/E of 52 times.
Mastek
The shares of Mastek jumped by 15 per cent last week, mirroring the upward trend seen in other IT stocks, and this increase was primarily attributed to expectations of favorable macroeconomic landscape in the US.
Mastek specializes in delivering enterprise technology solutions and platforms to a global clientele spanning government, retail, health, and financial service sectors.
The surge in share value was influenced by recent signals from the U.S. Federal Reserve indicating a potential pivot in policy rates in the next year, following their suggestion of reaching a terminal rate. This dovish stance, along with the prospect of rate cuts, has fostered a positive outlook for the IT industry, contributing to the price appreciation in IT stocks.
In Q2FY24, Mastek reported a 22.4 per cent growth in revenue, underpinned by robust expansion across various sectors and a strong order book momentum.
The stock is currently trading at a trailing P/E of 28 times.
JM Financial
The shares of JM Financial witnessed a notable 15 per cent rise during the previous week, attributable to the company’s strategic expansion initiatives.
As an integrated financial services group, JM Financial offers a diverse range of solutions encompassing investment banking, mortgage lending, alternative and distressed credit, asset management, wealth management, and securities business.
Recently, the company unveiled plans to expand its investment banking and wealth management segments, foreseeing sustained vibrancy in dealmaking activities and capital market investments within India in the coming years.
The stock is currently trading at a trailing P/B of 1.2 times.
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