Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

Multibagger Alert: This top multibagger from the finance sector gained 208% in one year

Multibagger Alert: This top multibagger from the finance sector gained 208% in one year
by 5paisa Research Team 02/11/2021

Bajaj Finserve is one of the leading players in the NBFC space.

Bajaj Finserve Ltd has been one of the trending companies in the past year. It has more than tripled its shareholder's wealth in the trailing twelve months. Strong financial position and the recovery in the economy post-second wave have boosted the spirits of the shareholders. 

In October 2021, the stock witnessed a great bull rally and peaked on the BSE. With this, the multibagger stock entered into the Rs 3 trillion market cap club. It had then become the 18th Indian company to cross that mark.

The quarter ended September 2021 results witnessed strong growth momentum. The consolidated revenues were Rs 18,008 crore, up by 20% on a YoY basis. The company reported a growth of 12% in consolidated profit after tax which stood at Rs 1,122 crore. Its surplus funds excluding group investments stood at Rs 15 billion as of September 30, 2021.

Bajaj Finserv is a holding company for the businesses engaged in various financial services of the Bajaj Group. And thus, its majority holding is in Bajaj Finance Limited (BFL) in which it holds a 52.65% stake. Bajaj Finance Ltd has also been a multibagger, generating a return of 117%. In the insurance segment, it has holdings in Bajaj Allianz General Insurance Co Ltd (BAGIC) and Bajaj Allianz Life Insurance Co Ltd. (BALIC). For the first half of FY22, BFL contributed 67% to Bajaj Finserv’s profitability, while BAGIC and BALIC contributed 32% and 11% respectively.

On November 2, 2021, the multibagger was trading flat at Rs 17,592 at 12:05 pm on the BSE. It has a 52-week high of Rs 19,319.95 and a 52-week low of Rs 5,563.45.

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Auto Sales in October 2021: Supply chain challenges continue to drag down production.

Auto Sales in October 2021: Supply chain challenges continue to drag down production.
by 5paisa Research Team 02/11/2021

Several automakers witness double-digit declines on account of the global semi-conductor shortage.

Significant challenges on the supply side, including semi-conductor issues and sharp commodity inflation, continue to plague the automobile industry, which is now grappling with plummeting production. This is mainly the case with car sales in India but even two-wheeler sales took a hit ahead of the festive season as witnessed in the October 2021 sales numbers. 

Passenger Vehicles:

The domestic sales for India's largest carmaker, Maruti Suzuki India fell 33.40% on a YoY basis to 1,08,991 units in October. The Gurugram-based automaker said the shortage of electronic components continued to affect production during the month. Mahindra and Mahindra (M&M) reported domestic sales of 20,130 units during the month, registering an increase in total sales of 8.10% on a YoY basis. The company has noted an unprecedented response for its recently launched XUV 700.

On the other hand, Tata Motors was the standout name in the passenger vehicle space once again and reported a YoY domestic sales growth of 43.65 per cent in October 2021 to 33,925 units as compared to 23,617 units last year. For Tata, cars like Altroz, Nexon and Tiago have been registering consistent sales volumes. The newly launched Punch micro SUV is expected to drive sales volumes in the months ahead. These sales figures have led to a significant increase in market share with the company reporting a 13.7% market share last month - its highest in over a decade. This was against the 7.4% share held in October 2020.

Domestic PV Sales   

October 2021   

October 2020   

% change   

 

 

Maruti Suzuki   

                108,991  

                 163,656  

-33.40% 

 

 

Tata Motors   

                   33,925  

                   23,617  

43.65% 

 

 

Mahindra & Mahindra   

                   20,130  

                   18,622  

8.10% 

 

 

Two-wheelers:

The country’s largest two-wheeler maker, Hero Motocorp reported a 33.29% dip in domestic sales to 527,779 units in October 2021 as compared to 791,137 units in the same month last year. The company expects healthy retail over the coming weeks with demand in the festive season building up towards Dhanteras and Diwali.

Other two-wheeler names, notably TVS Motors and Bajaj Auto reported YoY declines in domestic sales of 14.14% and 26.02% respectively. Meanwhile, Royal Enfield a part of Eicher Motors reported a 35.39% drop in domestic sales to 40,611 units in October. While total sales of its motorcycle models with engine capacity up to 350cc fell by 38% to 37,409 units, sales of motorcycle models with engine capacity exceeding 350cc rose by 5% to 6,724 units in October 2021 over October 2020.

Domestic 2-W Sales  

October 2021   

October 2020   

% change 

 

 

Hero MotoCorp  

                527,779  

                 791,137  

-33.29% 

 

 

TVS Motor  

                258,777  

                 301,380  

-14.14% 

 

 

Bajaj Auto  

                198,738  

                 268,631  

-26.02% 

 

 

Royal Enfield 

                   40,611  

                   62,858  

-35.39% 

 

 

Commercial Vehicles (CV):

Companies in the Commercial Vehicle (CV) space saw sales mostly in the green apart from Mahindra & Mahindra which recorded a 21.56% drop in domestic sales to 18,604 units in October 2021 from 23,716 units in October 2020.

Hinduja Group flagship Ashok Leyland’s domestic sales of medium and heavy commercial vehicles were at 5,254 units as against 3,881 units in October 2020, a growth of 35%. However, sales of light commercial vehicles in the domestic market were down 4% at 4,789 units last month as against 5,004 units in October 2020. Total domestic sales were higher by 13.03%.

Domestic CV Sales  

October 2021   

October 2020   

% change  

 

 

Tata Motors  

                   31,226  

                   26,052  

19.86% 

 

 

TVS Motor  

                   13,520  

                   12,603  

7.28% 

 

 

Mahindra & Mahindra  

                   18,604  

                   23,716  

-21.56% 

 

 

Bajaj Auto  

                   19,827  

                   12,529  

58.25% 

 

 

Ashok Leyland  

                   10,043  

                      8,885  

13.03% 

 

 

Tractors:

Mahindra & Mahindra and Escorts both recorded declines in domestic sales of 0.37% and 3.27% respectively in October 2021 on a YoY basis. This was due to heavy rainfall in September and October has resulted in delayed harvesting of Kharif crop, while leading to higher reservoir levels and moisture content for Rabi crop.
 

However, the Escorts management sounded upbeat that the ensuing festive season, strong farmer sentiment, rising enquiry level driven by favourable macroeconomic factors, reasonable water level at reservoirs, and the healthy pace of Kharif sowing, will give a fillip to the segment.

Domestic Tractor Sales  

October 2021   

October 2020   

% change  

 

 

Mahindra & Mahindra  

                   45,420  

                   45,588  

-0.37% 

 

 

Escorts 

                   12,749  

                   13,180  

-3.27% 

 

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Earnings report: Escorts net profit down by 23.5% in September quarter

Earnings report: Escorts net profit down by 23.5% in September quarter
by 5paisa Research Team 02/11/2021

The impact of adverse commodity prices and product mix are the key reasons for the decline in profits.

The Agricultural machinery company Escorts posted a net profit of Rs 176 crore for the three months through September which is a steep decline of 23.5%, compared with Rs 227 crore for the corresponding period a year ago.

However, revenue from operations had a marginal increase of 1.2% to Rs 1,673 crore from Rs 1,654 crore a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 29.5% to Rs 210.3 crore for the July-September period from Rs 298 crore a year earlier.

Do you wonder, despite an increase in revenue, how did the EBITDA margins got affected badly?

Segment analysis Q2-FY22

Escorts Agri Machinery (EAM) contributes 74.7% of the total revenue which is Rs 1,246 crore vs Rs 1320 crore last year same quarter,

Escorts construction equipment (ECE) contributes 15% of the total revenue which is Rs 250 crore vs Rs 158 crore last year same quarter.

Railway equipment division (RED) contributes 10% of the total revenue which is Rs 170 crore vs Rs 160 crore last year same quarter.

Reasons the YOY decline in EBIT

1. Impact of adverse commodity prices

2. Product mix

The first reason is quite inevitable, driven by the inflationary environment in the July-September quarter, which impacted many manufacturing companies profit margins.

But the second reason is company-specific, EAM is the high margin segment (EBIT margin is 15%) where tractor sales are down 18.2% on a YOY basis, which impacted the EBIT. The YoY decline of 29.4% to Rs 186 crore vs Rs 265 crore last year same quarter.

Though the ECE segment saw decent revenue growth, this is a low margin segment (EBIT margin is just 3.6%), EBIT increased to Rs 9 crore from Rs 3.5 crore last year same quarter.

It is clear now how the company struggled to maintain profit margins though they are able to increase the sales.

Owing to this, the stock price had a selling pressure after the results were out. The shares of Escorts went 1.5% down yesterday to Rs 1,491, but today it had a bounce back to Rs 1,557, 0.5% up for the day.
 

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These stocks are likely to be in focus on November 3

These stocks are likely to be in focus on November 3
by 5paisa Research Team 02/11/2021

The equity markets witnessed a volatile day on November 2, 2021.

Benchmark indices ended lower in the volatile session on Tuesday amid mixed global cues.

At close, the Sensex was down 109.40 points or 0.18% at 60,029.06, and the Nifty was down 40.70 points or 0.23% at 17,889.00.

On the sectoral front, the BSE Metal index lost its shine and shed over 1% while the realty and PSU Bank index zoomed 2-3 %. The indices in broader markets, the BSE Smallcap index and BSE Midcap index, outperformed the benchmark indices by rising 0.5 to 1%.

Watch out for these stocks for the Wednesday trading session.

Sun Pharmaceutical Industries - The company reported financials for the second quarter ending September 30, 2021. The company followed its good Q1 performance and sustained the positive momentum in Q2 with a topline growth of 13% YoY, driven by broad-based growth across multiple geographies. Its global speciality business has grown by 43% over Q2 last year. The company’s product Ilumya, a medication is used to treat moderate to severe plaque psoriasis, has grown both YoY and sequentially.

BSE and HDFC Bank – BSE has signed MoU with HDFC Bank to further encourage and promote the listing of Startups and SMEs across India. Through this MoU, HDFC Bank and BSE shall evaluate banking and lending solutions for start-ups undergoing listing process on Start-ups and SME platform. HDFC Bank will identify potential start-ups and SMEs and help them to partner with intermediaries like Merchant Bankers, Chartered Accountants and Lawyers to list on BSE.

Upper Circuit stocks – From the BSE 500 index, the stocks of All Cargo Logistics, PNB Housing Finance and IIFL have been trending on Tuesday. They have locked in the upper circuit with Allcargo Logistics gaining up to 19.99% in Tuesday’s trading session. Keep a watch on these stocks on Wednesday.

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Bharti Airtel smashes street estimates as profit soars, revenue grows in double digits

by 5paisa Research Team 02/11/2021

Telecom major Bharti Airtel Ltd on Tuesday posted strong results beating analyst expectations with respect to both revenue and net profit for the second quarter ended September 30, 2021.

Bharti Airtel posted a consolidated net profit of Rs 1,134 crore as against a net loss of Rs 763.2 crore in the second quarter last year. On a sequential basis, net profit quadrupled.

Analysts at brokerage houses had expected net profit to come around Rs 680-780 crore.

Bharti Airtel’s consolidated revenue shot up 13% to Rs 28,326.4 crore from Rs 25,060.4 crore in the same quarter last year. On a sequential basis, revenue was up 5.4% from Rs 26,853.6 crore in the first quarter. On a comparable basis revenue grew 18.8% year on year.

The street estimate was that the company will post 7-8% rise in revenue on a year-on-year basis.

The company, which competes with Reliance Jio and Vodafone Idea in the Indian market, saw its shares price end at Rs 712.9 apiece, up 0.08% on Tuesday. The company declared results after trading stopped for the day.

Bharti Airtel Q2: Other highlights

1) EBITDA rose 24.5% to Rs 14,018 crore from Rs 11,259 crore in Q2 FY21; Analysts expected EBITDA growth at 12-17%.

2) On a sequential basis, EBITDA rose around 6% from the first quarter.

3) Sales and marketing cost shot up nearly 50% to Rs 1,267 crore.

4) Spectrum charges and licence fees rose about 20%.

5) Airtel benefited from a sharp slide in access charges to Rs 1,670.8 crore from Rs 2,923 crore in Q2 FY21.

6) Revenue from mobile services in South Asia declined year on year while that from India and Africa rose 10% and 20%, respectively.

7) Profit from DTH business remained under pressure but profit from India mobile business as well as from Africa mobile services unit jumped.

8) India revenue for Q2 at Rs 19,890 crore increased by 18.3% YoY on a comparable basis and 10.4% YoY on a reported basis.

9) India mobile revenue grew 20.3% on comparable basis as ARPU rose to Rs 153 from Rs 143 last year.

10) 4G data customers increased by 26.1% YoY to 192.5 million with average data usage per data customer at 18.6 GBs/month.

Bharti Airtel management commentary

Gopal Vittal, MD and CEO for India and South Asia at Bharti Airtel, said the company continues to maintain high degree of financial flexibility and has achieved zero bank debt for its India businesses. “We will continue to evaluate all options to maintain comfortable leverage profile and manage associated costs,” he said.

Vittal also said that, during the quarter gone by, Airtel recorded a healthy 5.5% sequential growth in consolidated revenue and expansion of EBITDA margin to 49.5%.

“Our strategy of focusing on quality customers has been validated by the strong price flow and ARPU increase that we have seen in our wireless business,” he said. “The step up in performance of our enterprise and homes business reflects the resilience and strength of our overall portfolio.”

Vittal added that new businesses including Airtel Payments Bank, data centres and revenue from digital services are shaping up well. “With a future-proofed 5G network, we are well positioned to build a strong Airtel of the future.”

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Closing Bell: Sensex and Nifty close in red, metal stocks drag

Closing Bell: Sensex and Nifty close in red, metal stocks drag
by 5paisa Research Team 02/11/2021

Losses in oil and gas, metal and a few IT stocks pulled the benchmark indices lower, but gains in realty, auto and select financial stocks limited the slide.

Indian equity benchmarks after a day's break resumed the decline and in the volatile session on November 2 amid mixed global cues. During today's trading session the Sensex fell as much as 257 points and the Nifty 50 index touched an intraday low of 17,847.60.

At the closing bell on November 2, the Sensex ended lower by 109.40 points or 0.18% at 60,029.06, and the Nifty was down by 40.70 points or 0.23% at 17,889.00. On the market breadth, around 1851 shares have advanced, 1216 shares declined, and 107 shares are unchanged.

Top gainers on the auspicious occasion of Dhanteras were Maruti Suzuki, NTPC, Titan Company, SBI and L&T. While the top losers of the day were Tata Steel, Reliance Industries, Tech Mahindra and IndusInd Bank.

On sectorial basis, the metal index lost over 1%, while the realty and PSU Bank index were 2-3%. In the broader markets, the BSE midcap and smallcap indices rose 0.5-1%.

The trending stock of the day was Mumbai-based logistics company Allcargo Logistics which was locked in 20% upper circuit at Rs 328.95 after it reported September quarter earnings.

Tata Steel was the top loser, the share price fell 2.71% to close at Rs 1,328.

Sun Pharma stock rose over 2% to close at ₹ 831. The company reported a net profit of Rs 2,047 crore in the second quarter of the current financial year. NTPC soared on commissioning solar power plant in Rajasthan.

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