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Sensex and Nifty 50 were mostly flat last week with a move of 0.07 per cent and 0.19 per cent respectively.
BSE consumer durables, healthcare, and auto were the major gainers with 3.1 per cent,2.2 per cent, and 1.9 per cent respectively. BSE oil and aas was the biggest loser with a decline of 3.1 per cent and following it was BSE power, metals and bankex with a decline of 0.4 per cent, 0.2 per cent, and 0.3 per cent respectively.
Among BSE 500, the top five gainers of the week were Eureka Forbes (22.4 per cent), Brightcom group (21.4 per cent), Graphite (15.3 per cent), HEG Ltd. (14.5 per cent), and Birla Corporation Ltd. (13.4 per cent).
Out of these, there was fundamental news flow during the week that were catalysts for the upside for three of them mentioned here. There appears to be no significant news flow during the last week for the other two stocks.
Eureka Forbes
The stock saw a 13 per cent upside on May 30, 2023 which led to a growth of 22.4 per cent in the week. The key reason for the jump in the stock price seems to be the Q4 FY23 results.
The company reported Q4 FY23 revenue at ₹508.1 crore which is 8 per cent higher y-o-y whereas the EBITDA margin of the company for the March 2023 quarter was reported at 9.3 per cent which is 300 basis points higher y-o-y.
The profit after tax for the same period was reported at ₹16.3 crore which is 98 per cent higher y-o-y. The trailing P/E of the stock is 359.5x whereas the price to book ratio of the stock is 2.3x.
Brightcom group
The stock saw an overall growth of 21 per cent in the share price for the week ending June 2, 2023. The single highest rally in the stock was on June 2, 2023 when the stock saw a rise of 7.3 per cent.
While the stock had a good week, investors need to note that the company has been in the news for more negative reasons in recent times. SEBI recently passed an interim order against the company on issues relating to financial manipulation and barred directors of the company from selling their shares in the company.
While up for the week, the stock is down more than 60 per cent in the last one year and even more from its peak levels. The company reported its Q4 results last week.
The revenue for March 2023 quarter was ₹112.4 crore which is 21.4 per cent higher y-o-y. The net profit of the company also rose to ₹4.24 crore in Q4 FY23 from ₹14 lakh in March 2022 quarter.
Given the issues surrounding the company, the results must be viewed with caution although the stock reacted to it positively. The trailing P/E of the stock is 3.02x whereas the price to book ratio of the company is 0.59 x.
Graphite India
The stock of Graphite India rose close to 15.25 per cent during the week ending June 2, 2023. The stock saw a single day growth of 12 per cent on June 2, 2023.
The stock price of the company rose despite reporting a poor set of Q4 FY23, which is lower than the figures of the same quarter the previous year.
The company reported a 3 per cent drop in the net sales figure for Q4 FY23 y-o-y whereas operating profit was lower 8 per cent. The rally in the shares seems to have been led by bright outlook for the graphite electrode industry.
The trailing P/E of the stock is 37x whereas the price to book ratio of the stock is 1.47x.
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