120 stocks blinking on investor radar after posting big profit growth in Q4

March quarter earnings numbers may not have inspired any revision in EPS targets for the domestic market, but some companies have delivered stellar numbers this season.

As many as 120 companies listed on NSE have reported over 100 per cent year-on-year profit growth for the quarter, while one company, HB Stockholdings, clocked an eye-popping 55,600 per cent jump in bottom line and another, TD Power System, registered a 26,600 per cent rise in quarterly profit.

HB Stockholdings is a smallcap firm, which was originally listed as HB Portfolio Leasing Limited on July 30, 1985.

During the March quarter, the company’s bottom line was driven mainly by an impressive top line growth. HB Stockholdings reported 11-times rise in net sales at Rs 7.41 crore for the quarter from Rs 0.67 crore reported for the same quarter last year.

On a year-to-date basis, share price of HB Stockholdings has surged 59 per cent to Rs 26.05 till May 26 from Rs 16.40 as of January 2.

Net profit of TD Power rose from Rs 0.03 crore in Q4FY16 to Rs 8.01 crore in Q4FY17 mainly due to exceptional gains. Since the beginning of 2017, shares of the company have advanced 29 per cent to Rs 217.15 as of May 26 from Rs 168.10. For March quarter, the company reported an 8.41 per cent rise in net sales to Rs 128.63 crore.

Then, there were other more familiar names such as Hindustan Copper, Oriental Hotels and Keynote Corp, which have registered over 5,000 per cent year-on-year rise in net profit for the quarter.

Shakti Pumps, Capri Global, Strides Shasun, Federal Bank and Jubilant Life have also put up decent performance for the quarter gone by and reported net profit growth of 1,000 to 5,000 per cent.



About 100 companies reported net profit growth of up to 1,000 per cent, with V-Mart Retail clocking a 942 per cent surge, followed by Phillips Carbon (up 931 per cent), Jyothy Labs (up 779 per cent) and Sunteck Realty (up 683 per cent).

Sugar majors Bajaj Hindusthan and Balrampur Chini posted 100 per cent and 105 per cent YoY rise in quarterly net profit at Rs 259.13 crore and Rs 200.39 crore, respectively.

Tata Coffee was the only beverage company that posted over 100 per cent jump in net profit for March quarter. The company’s profit jumped 115 per cent to Rs 59.80 crore from Rs 27.85 crore reported for the same period last year.



In the NBFC space, Dewan Housing Finance (DHFL), Indiabulls Ventures, Vardhman Holdings, PTC India Financial and SREI Infra Finance posted over 100 per cent increase in profit for the quarter ended March 31, 2017.

Dr Reddy’s Labs, Morepan Labs, Caplin Point and Bliss GVS Pharma reported 175 per cent, 161 per cent, 114 per cent and 109 per cent YoY jump in Q4 net for the quarter.

The ongoing earnings season has been in line with expectation, said Harendra Kumar, MD for Institutional Equities, Elara Capital.

“We are coming out of the earnings downgrade cycle seen in last two years. Looking at the numbers, we found earnings estimates are actually being met and there has been no upward or downward revision for the next two years. I think this is very big positive.”

Shibani Sircar Kurian, VP & Head of Equity Research at Kotak Mutual Fund, said, “There has not been any significant disappointment in any pocket. We need to focus on the pace at which earnings upgrades have happened vis-à-vis earnings downgrades. And this trend has been fairly positive so far.”

Among the 120 companies, shares of Indiabulls Ventures have surged the most at 581 per cent since the beginning of this calendar year. The scrip has risen from Rs 20.72 on January 2, 2017 to Rs 141.35. It means an investment of Rs 1,00,000 in the stock in January would have grown to over Rs 7.50 lakh on May 26.

Weizmann Forex is the other big gainer on the list, having jumped 258 per cent to Rs 630 from Rs 176 year to date.

Avanti Feeds, which posted 169 per cent YoY rise in net profit in Q4 of FY17, advanced 190 per cent between January 2 and May 26.



Shares of Shakti Pumps, Venky’s India, LT Foods, National Fertilizer and Geojit Financial Services have gained 189 per cent, 180.46 per cent, 162 per cent, 135 per cent and 122 per cent, respectively, on a year-to-date basis till May 26.

Net profit of investment services firm Geojit Financial Services more than doubled to Rs 15.29 crore during the quarter from Rs 6.51 crore a year ago. Revenues rose 15 per cent to Rs 79.86 crore from Rs 69.55 crore a year ago.