This consumer electronics company has risen by 19.3% over the past month, reaching its all-time high of Rs 7,048 on Monday. The company has also recovered by 13% since the Directorate of Revenue Intelligence’s inspection concerning raw material imports on January 19.
The past month has been eventful for Dixon. The company’s arm, Padget Electronics, inked a manufacturing agreement with Compal Smart Device India for mobile phone production. Padget has also finalised deals with Lenovo for manufacturing notebooks and tablets, and is in talks with ASUS. Another Dixon subsidiary, Dixon Electro, began refrigerator production.
In Q3FY24, Dixon Technologies reported an 85.8% YoY growth in net profit to Rs 96.4 crore, while revenue increased 2x YoY. This growth was driven by a 251% YoY rise in its mobile and electronic manufacturing division, which accounts for 67% of total revenue. But the EBITDA margin contracted 80 basis points YoY. The company missed Trendlyne Forecaster’s net profit estimate by 18.6% due to a 116.3% YoY rise in material costs to Rs 4,345.3 crore.
Dixon’s management is positive about its mobile business and expects to capture a market share of 35-40% in Indian smartphone manufacturing. Managing Director Atul Lall says, “We're ramping up investments to meet the increasing order book from Motorola, and demand for some large new brands in the pipeline.” The company has also partnered with Samsung for their Taizun operating system, which is expected to commence operations by the end of FY24.
Jefferies downgrades Dixon Technologies to ‘Underperform’ and warrants caution over valuations and softer discretionary demand. It suggests that the risk-reward appears to be stretched. The company appears in a screener for stocks with PE higher than their respective industry.
This logistics startup rose 2.7% on Monday, following the extension of its partnership with wellness brand Plix for cross-border freight shipping services. Delhivery has an existing collaboration with the brand for domestic express parcel shipping.
Over the past month, Delhivery has risen by 8.8%, placing it in a screener of companies with prices above their short, medium, and long-term moving averages. In Q3FY24, the company reported a net profit of Rs 11.7 crore, marking its first ever profit, against a net loss of Rs 195.7 crore in Q3FY23. This beat Trendlyne’s Forecaster expectations of a Rs 67.8 crore net loss for the quarter. Nuvama Research noted, “The shift to profitability is a milestone we had foreseen only in H1FY25E.”
Sahil Barua, the MD and CEO, said, “We've achieved profitability for the first time in Q3, from enhanced utilization across our key business segments and trucking networks.”
Meanwhile, revenue was up 20.3% YoY to Rs 2,194.5 crore, fuelled by strong demand during the festive season. The Express Parcel business (which constitutes 66% of total revenue) saw a 21% YoY revenue increase, while the Part Truckload business (17% of revenue) rose by 37% YoY. Delhivery features in a screener of stocks with increasing revenue for the past four quarters.
Elara Securities upgrades Delhivery to ‘Buy‘ and raises the target price to Rs 570. The brokerage believes that the festive season push may normalize in the near term and the focus will be on market share gain.
The Ambani family is in the news for another partnership, but that's not the one stock markets are interested in. This refineries/petro products company has risen by 3% over the past month due to merger talks with Disney. These talks concluded successfully on Thursday as Reliance Industries entered into a joint venture (JV) agreement with Viacom18 Media and Walt Disney, merging Viacom18 into Star India through a court-approved arrangement.
This landmark JV will be valued at Rs 70,352 crore, and marks the rise of a major new player in the entertainment industry. Post-merger, Reliance will own 16.3%, Viacom18 will have 46.8%, and Disney will hold a 36.8% stake in the JV. Additionally, Reliance will invest Rs 11,500 crore in the venture.
According to analysts at Jefferies, the JV is set to dominate India's cricket broadcasting rights with a substantial 40% share of the advertising market. The brokerage also added that Disney's business valuation is substantially lower than perceived, potentially adding around Rs 40 per share to Reliance's value.
The company released its Q3FY24 results on January 19, with a 9.3% YoY growth in its net profit to Rs 19,641 crore, while its revenue increased by 3.9% YoY to Rs 2.3 lakh crore. The revenue growth was on the back of improvement in oil to chemicals (O2C), oil & gas, JioBharat, Reliance Jio Infocomm (led by Akash Ambani) and Reliance Retail (headed by Isha Ambani) segments.
JioBharat and Reliance Jio Infocomm’s revenue increased by 11% YoY to Rs 32,500 crore, thanks to a sharp rise in net subscriber additions. Similarly, Reliance Retail’s revenue grew by 23.8% YoY to Rs 74,370 crore, owing to increased footfall in stores and improvement in the groceries, fashion and consumer electronics segments. The company appears in a screener of stocks with increasing return on equity (RoE) over the past two years.
Post-results, BOB Capital Markets maintains its ‘Buy’ rating on the company with an improved target price of Rs 3,175. This indicates a potential upside of 6.4%. The brokerage believes that the company’s market share expansion and media business growth will contribute to its revenue. It expects the company’s revenue to grow at a CAGR of 7.5% over FY23-26.
This heavy electrical equipment manufacturer has risen by 7.9% over the past week, touching a 52-week high of Rs 504.9 today on the back of a strong order book and good quarterly results. Its Q3FY24 net profit grew by 29.7% YoY to Rs 68.2 crore and revenue increased by 32.9% YoY, thanks to a favourable demand-supply scenario. The firm beat Trendlyne Forecaster’s estimates for net profit and revenue by 3.3% and 4% respectively. The company appears in a screener of stocks with strong momentum.
In Q3FY24, the company’s order book grew by 28% YoY to Rs 1,575 crore, with export orders climbing 41% YoY to Rs 762 crore. Major order bookings were noted from the Middle East and North Africa, Turkey and the Americas. Its geographical expansion and product & aftermarket offerings have fueled order growth across various segments, including biomass industries, oil & gas, and both sub & beyond 30 MW. A new subsidiary was established in Texas, USA, to invest in local manufacturing, aligning with its strategy of being closer to customers and gaining from US energy incentives. The domestic order book saw a modest 18% YoY increase to Rs 814 crore, impacted by order delays and the festive season.
Dhruv Sawhney, Chairman & Managing Director of the firm, says, “We've set new records in revenue, profitability, and order booking. By the nine-month mark, product orders reached Rs 9.9 billion, a 19% YoY increase driven by exports, especially in the API segment, alongside robust domestic demand. With a 14% improvement in the overall enquiry book, we remain constructive on future orders for this segment in the medium term.”
Sharekhan recommends a ‘Buy’ rating for Triveni Turbine, with a target price of Rs 550. They say, “ The stock trades at ~29x its FY2026E EPS, which we believe offers room for an upside, considering a strong growth prospectus and robust ROE/ROCE ratios.”
This consumer durables company has risen by 5.8% in the past week, hitting its 52-week high of Rs 1,550 on Wednesday. This uptick came after Goldman Sachs upgraded Havells India to ‘Buy’, expecting the company to resume double-digit growth starting Q1FY25.
The company has struggled recently, posting single-digit returns in the past two quarters, mainly because of reduced demand in semi-urban and rural markets, driven by inflation.
In Q3FY24, Havells India posted a slight net profit increase of 1.5% YoY to Rs 287.9 crore, missing Trendlyne’s Forecaster estimates by 10.1%. At the same time, its revenue rose by 7.3% YoY to Rs 4,469.8 crore, also missing estimates by 2.8%. The firm appears in a screener of stocks where mutual funds have increased their shareholdings in the past quarter. Based on Trendlyne’s Results dashboard, the company’s growth in revenue and net profit during Q3FY24 lagged behind its industry peers.
Havells India’s wholly owned subsidiary, Havells International, announced a joint venture with Salesmark Ventures, USA on February 14, 2024. This partnership will allow Salesmark to market and sell various portable air conditioning units and related accessories from Havells’ brand portfolio in the US market.
CEO Anil Rai Gupta says, “We expect the premiumisation trend to recover as inflation shows signs of abating.” He expects better margins as the company’s investments in brand building normalize over the next quarter.
BOB Capital Markets maintains a ‘Buy’ call on Havells India, given its strong presence in the consumer durables sector and improving consumer demand. The brokerage estimates the firm’s sales to grow at a 9% CAGR, with net profit improving at a 17.6% CAGR over FY24-26.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
