8 firms buck the trend, manage stellar third-quarter earnings

Third-quarter earnings have been dismal for most of the companies. But eight firms managed to buck the trend and forge ahead due to strong management and solid execution. ET profiles the firms in industries from financial services, realty and pharma.

OBEROI REALTY

Analysts said Oberoi Realty’s December quarter results were a “blockbuster” due to the launch of its Sky City project in Mumbai and recognition of the Esquire project drove growth in the quarter. However, this performance may not continue.

SKS MICROFINANCE

Analysts feel the company’s AUM has the potential to grow and earnings growth is likely to remain strong. But stock valuations are high. “We like the business but valuation wise it is expensive,” said Clyton Fernandes, senior equity analyst at Emkay Global Financial Services.

BAJAJ FINANCE

Though the stock is richly valued, the premium will sustain, said analysts. “A strong performance in a weak economic scenario with healthy return ratios led to higher investor interest in Bajaj Finance stock,” said Kajal Gandhi, analyst, ICICI Securities.

ALEMBIC PHARMA

Analysts expect a complete change in growth trajectory in 2-3 years. The stock is currently trading at rich valuations with limited upside. “Growth and profi tability profi le has improved post restructuring. Stock is currently fully valued,” said Sarabjit Kour Nangra, analyst, Angel Broking.

ECLERX

eClerx’s CLX acquisition helped the company to post strong results. “eClerx’s performance crossed expectations. This was probably also because some of the projects in the second quarter got rolled over,” said Abhiroop Varma, analyst at Karvy Stock Broking.

TORRENT PHARMA

One of the most scalable midcap pharma models, according to analysts. “We remain positive on the company’s rerating potential due to niche portfolio in US, improvement in margins, healthy return ratios and substantial reduction in debt,” said Kumar Saurabh, analyst, Motilal Oswal.

ALEMBIC PHARMA

Analysts expect a complete change in growth trajectory in 2-3 years. The stock is currently trading at rich valuations with limited upside. “Growth and profi tability profi le has improved post restructuring. Stock is currently fully valued,” said Sarabjit Kour Nangra, analyst, Angel Broking.

DALMIA BHARAT

Analysts said Dalmia Bharat is possibly among the few cos whose earnings could surpass expectations for FY 2016. The stock has been the top midcap pick for many broekrages. “We maintain Dalmia Bharat as top mid-cap cement pick,” said Vaibhav Agarwal, analyst, Phillip Capital.

GODREJ PROPERTIES

“Godrej Properties continues to generate a strong response to its new launches across major cities. This coupled with a steady launch pipeline ensures high volume/cash fl ow visibility,” said Arun Aggarwal, analyst at Religare Securities.