Nifty 50 and BSE 500 maintained the gaining streak and rose 1.4 per cent and 1.3 per cent, respectively, last week.
BSE Healthcare and PSU closed flat for the week, whereas BSE Metals and BSE Capital Goods fell 2.6 per cent and 1.7 per cent, respectively. All other sectors closed in the green for the week. BSE Auto and Bankex were the top gainers with a gain of 4.3 per cent and 2.7 per cent. respectively.
Among BSE 500 stocks, the top 5 gainers were Brightcom Group Ltd (27.56 per cent), Intellect Design Arena Ltd (17.93 per cent), Sanofi India (16.06 per cent), Firstsource Solutions Ltd (15.4 per cent), and Greaves Cotton Ltd (13.75 per cent).
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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.
Intellect Arena Design
The company registered a single-day growth of 14 per cent on May 12, 2023 (the last trading session of the week), which has led to the overall growth of 17.9 per cent in the stock price over the past week.
The key reason for the jump in the stock price seems to be the Q4 FY23 results. The company reported a 24 per cent YoY rise in revenue for Q4 FY23. The gross margin of the company remained flat at 56 per cent. The company saw a 5 per cent contraction in the net profit for Q4FY23 YoY. However, the EBITDA of the company grew 28.3 per cent in Q4FY23 YoY.
The trailing PE of the company is 27x, whereas the trailing price to book ratio is 3.51.
The share price of Sanofi India rose 16 per cent in the past week with the highest gain of 9 per cent on May 11, 2023. The company has been in the news after it proposed a demerger of its consumer business into Sanofi Consumer Healthcare India. The investor response has been positive. The demerger can unlock value from the consumer portfolio separate from the pharmaceutical business, which can come under price control overhang.
Also read: Sanofi India De-merger: Recent gains capture the value unlocking upside
The consumer division or SCHI generated 28 per cent of CY22 revenues at ₹ 733 crore. The division has a strong branded portfolio, including Allegra and Avil for allergies/respiratory (accounting for around 27/12 per cent of the division’s revenues) and Combiflam in pain (around 25 per cent).
The trailing PE of the company is 23.88x whereas the trailing P/BV of the stock is 11.62x.
Firstsource Solutions Private
The share price of the company rose 15.4 per cent in the past week ending on May 12,2023. The company had recently reported Q4 FY23 results, the company has performed well on sequential basis in Q4 FY23. The revenue growth of the company in Q4 FY23 was 2.5 per cent QoQ basis and the operating margin was 2.2 per cent higher in Q4 FY23 over Q3FY23. The operating EBITDA of the company was ₹ 2441 crore in Q4FY23 which is 16 per cent higher on QoQ basis.
The trailing PE of the company is 17.63x and the trailing P/BV of the company is 2.7x.