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In the past week, the Benchmark indices, Sensex and Nifty 50 declined 2.5 per cent each respectively. All the sectoral indices also gave negative returns in the week. BSE Consumer Durables and BSE Realty declined the most by 3.2 per cent each. BSE Capital Goods and BSE Teck declined 3.1 per cent each. BSE Oil and Gas declined 2.9 per cent.
Among BSE 500, many stocks moved up without any significant news-inflow. Swan Energy, Welspun India, and Indian Overseas Bank were top performing stocks driven by some news during the week pertaining to the stocks.
Swan Energy
The stock of Swan Energy returned 22 per cent in the week ending October 27, the highest single day gain of the stock was on October 27,2023 when it went up by 12 per cent. The main reason for the rally of the stock is the news regarding its acquisition of Reliance Naval & Infra. Swan Energy, through its special purpose vehicle Hazel Infra, paid ₹231 crore on October 27 to acquire Reliance Naval and Engineering before the deadline of November 15. Swan energy with this acquisition has firmed up plans to emerge as a large private player in the commercial and naval defence vessel manufacturing and ship repairing segments. Apart from targeting major contracts from the naval defence sector, the company is also focussing on driving business for commercial vessel manufacturing and for the oil and gas sector.
The trailing price to book ratio of the company is 4.27 times and the trailing PE is 58.8.
Welspun India
The stock of Welspun India returned 14 per cent in the week ending October 27, the highest single day gain of the stock was on October 25,2023. The main reason for the rally in the stock was due to the Q2FY24 results of the company. The revenue of the company grew 19 per cent YoY to ₹2,542 crore. The EBITDA of the company grew 158 per cent YoY in September 2023 quarter to ₹391 crore and the EBITDA margin grew 829 basis points to 15.4 per cent. The PAT of the company also grew 217 per cent to ₹196.7 crore.
The trailing PE of the company is 72 times whereas the price to book ratio is 3.49 times.
Indian Overseas Bank
The stock of Indian Overseas Bank returned nearly 11 per cent for the week ending October 27, the highest single day gain of the company was on October 27 when it gained 7.2 per cent. The stock rallied on account of positive September 2023 quarter results. The Net Interest Income of the company grew 20.1 per cent YoY in September 2023 quarter to ₹2,346 crore and the Net Interest margin was 3.12 per cent (33 per cent higher YoY). The asset quality of the bank also improved in Q2FY24, the gross NPA (Non-performing asset) in September 2023 quarter was ₹9893 crore which is 33 per cent lower YoY whereas the Net NPA was ₹1364 crore which is 67 per cent lower YoY.
The trailing PE of the bank is 33 times whereas the price to book ratio is 2.95 times.
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