Jindal Stainless (Hisar): This steel company jumped to an all-time high in share price, capping an already strong three month period for the stock's shares. The stock rose by double digits in one trading session on Thursday after it announced that it had signed an MOU with Tata Steel to jointly explore chrome ore near Orissa. The company has a strong momentum score, but is overbought on the MFI, suggesting a potential pullback soon.
Firstsource Solutions: Speaking of momentum, one of the strongest momentum stocks in the midcap IT sector is FSL, which has seen both FIIs and MFs increase their shareholding in the June quarter. The company has made recent strong gains in the export markets of US and UK, leading to a robust growth guidance of 15-18% in CC terms. It is seeing traction in healthcare (especially in the provider business) and growth in its banking vertical, led by growth in collections, fintech and UK banking.
Bajaj Finance: A star of 2019 for investors delivered a muted performance in Q1FY22, hard hit by a spike in provisioning and NPAs. Bajaj Finance reported a spike in GNPA as well as NNPA of 2.96% and 1.46%, up from 1.79% and 0.75% QoQ. The worst-hit sector for the company was the auto financing business, where the GNPA jumping to an astonishing 19.15% from 9.31% in the Q4FY21, led by the 3W segment which accounts for 30% of auto loans.
Wipro: A consistently strong performance for this IT major, typically a laggard among the giants, has boosted its standing among analysts who have given the company multiple buy calls since its June quarter results. The company has developed a healthy deal pipeline that should help it drive growth over the next two financial years, giving it long-term visibility. Its technicals put it in the moderately strong momentum range. Its current PE is high compared to historical level, putting it in the sell zone.
Jyothy Labs: This FMCG company is trading lower in its TTM PE compared to its 3 year, 5 year and ten year PEs (screener), but is gaining ahead of its June quarter results due on July 29. The company's focus on cleaning and maintenance home products gives it an opportunity in this space as focus on hygiene increases, but its short-term results may have been hit by the state lockdowns linked to the second Covid19 wave.