All the sectoral indices closed the week in green. BSE IT (3.69 per cent), BSE Healthcare (3.28 per cent) and BSE FMCG (3.10 per cent) were best performing sectoral indices last week.
Among BSE 500 stocks, Adani Enterprises, Dixon Technologies and Suzlon Energy were the best performers during the week.
The stock of Adani Enterprises gained the most at around 30 per cent due to two reasons.
One, the shares of the company jumped around 19 per cent on Monday as the Supreme Court appointed expert committee has concluded that it would be difficult to point to a regulatory failure on the part of SEBI, providing some relief to investors. The committee was appointed by the apex court following the Hinderberg Research allegations against the Adani Group.
Two, the stock further moved around 13 per cent on Tuesday after the US-based global investment firm GQG Partners increased its stake in the Adani Group to 10 per cent. According to Rajiv Jain, CIO, GQG Partners, the asset management firm made the move on account of comfortable valuations, healthy growth potential and faith in the company’s management.
The stock is currently trading at a trailing EV/EBITDA of 37.38 times.
The stock of Dixon Technologies rallied close to 21 per cent on account of its robust quarterly results.
Dixon Technologies is a contract manufacturer of consumer durables, lighting products, and mobile phones.
Dixon Technologies announced its Q4 FY23 results on May 23, 2023. The results have beaten the Bloomberg consensus estimates on all fronts. The company’s Q4 FY23 revenue grew 4 per cent, while the EBITDA margin expanded to 5.1 per cent from 4 per cent y-o-y. Management has mentioned that price hikes, cost optimisation and easing of commodity prices aided growth in margins.
The stock of Dixon Technlogies is currently trading at an EV/EBITDA of 42.91 times.
Suzlon group on May 24, 2023 announced that it bagged a significantly large order for its new 3 MW series of wind turbine. Suzlon will install 100 wind turbine generators with a hybrid lattice tubular tower and a rated capacity of 3 MW each.
The project is located in Karnataka and is expected to be commissioned in 2025.
The stock of Suzlon is currently trading at an EV/EBITDA of 17.63 times.